FirstEnergy Solutions Seeks Extension Of Existing, Soon Expiring Retail Supplier Certificate In Ohio
October 23, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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FirstEnergy Solutions Corp. (FES) sought from the Public Utilities Commission of Ohio a 120-day extension of its certificate as a Competitive Retail Electric Service Provider, Renewal Certificate Number 00- 11E(9) ('Certificate'), through March 2, 2019.
FES's most recent renewal of its certificate expires on November 2, 2018
On October 1, 2018, FES filed for renewal of the certificate.
In such renewal application, FES noted the previously reported and pending sale of its retail customer book to Exelon. FES said that, subject to final approval, it intends to commence the process of assigning its retail customer contracts to Exelon promptly after the closing of the proposed sale to Exelon. FES currently expects this assignment process to be substantially completed by the end of 2018.
In its motion for the extension filed on October 22, FES said that, "Good cause exists to extend the Certificate for this 120-day period because FES, though financially stable with almost $1 billion in cash on hand, is currently in bankruptcy. Delaying the Commission’s consideration of the FES renewal application and extending the Certificate for an additional 120 days will provide the Commission with the opportunity to evaluate FES’ financial performance while in bankruptcy and FES’ continued service of Ohio customers, and will provide additional clarity on the potential sale of the FES retail book and any potential FES plan of reorganization. Accordingly, FES respectfully requests that the Certificate be extended through March 2, 2019."
FES noted in its motion that since its bankruptcy filing, "FES has continued its various customer programs with approval from the Bankruptcy Court. That has included its cash-back rewards program, block billing program, budget billing program, fee waivers, customer deposits and customer credits, commitments to customer partners (e.g., third-party brokers), renewable energy obligations, grant obligations (including governmental aggregation programs), and customer incidents or other service-related issues (collectively, 'Customer Programs/Services'). FES has also met and continues to meet all of its obligations to provide collateral or other financial guarantees to the electric distribution utilities ('EDUs') in Ohio to ensure that sufficient collateral or other financial guarantees or other assurances are provided where necessary. FES also honored its commitments to RTOs including PJM Interconnection, LLC ('PJM'), to ensure that FES maintains the ability to sell generation into the RTOs’ administered markets."
"While fulfilling all of these responsibilities, FES has been able to maintain its financial integrity. As of the most recent publicly reported financials, FES has been able to increase its cash on hand to over $920 million. Accordingly, there is no reason for concern about FES’ continuing ability to fulfill its responsibilities to serve Ohio customers," FES said in its motion
"On October 1, 2018, FES filed an application to renew its CRES Renewal Certificate Number 00-11E(9) ('Certificate')(the 'Renewal Application'). While FES believes that sufficiently evidences that a Renewal Application could be granted at this point with no risk of harm to Ohio customers, FES acknowledges the Commission’s interest in ensuring that FES is financially able to fulfill its contractual responsibilities during the pendency of the Bankruptcy Proceeding. Accordingly, FES hereby respectfully requests that the Commission indefinitely defer ruling on the Renewal Application, and grant an extension of the Certificate for an additional 120 days, through March 2, 2019 ('Extended Period')," FES said in its motion
"Extending the Certificate will provide the Commission the opportunity to obtain additional information concerning the Bankruptcy Proceeding during this Extended Period. During this period, the potential sale of the FES retail book is expected to be resolved. Additionally, the Extended Period will provide the opportunity for the Commission to obtain additional information about FES’ financial performance, its ability to continue serving customers as an Ohio CRES provider, and the status of any potential plan of reorganization for FES and its debtor affiliates," FES said in its motion
"The Extended Period will allow FES to continue to fulfill its contractual obligations and provide the Customer Programs/Services which customers depend on. The extension will also avoid any potential negative impact on the FES Bankruptcy or conflict with federal law," FES said in its motion