PUC Rules It Has Authority To Address Complaint Over FirstEnergy Solutions Polar Vortex Surcharge

In a procedural ruling, the Public Utilities Commission of Ohio ruled that it has authority to review a complaint concerning FirstEnergy Solutions' polar vortex surcharge filed by Power4Schools, denying a motion to dismiss from FES which had argued PUCO lacked jurisdiction over what it deems a contractual dispute

PUCO held that the complaint meets the precedential test for Commission jurisdiction, noting that the issue is not one of regulating the rates of competitive providers, but ensuring compliance with PUCO's disclosure and marketing rules

"Based on statutory authority, state policy, and precedent set by the Supreme Court of Ohio, the Commission finds that the issues raised in the complaint are within the Commission's jurisdiction, and the motion to dismiss should be denied. It is the state's policy to safeguard consumers against unreasonable sales practices from CRES providers, and it is the Commission's responsibility to ensure those protections are in place. R.C. 4928.02(1) and R.C. 4928.06. This is not a matter of the Commission setting CRES prices; rather, at issue is how the CRES provider is administering its contract and the CRES provider's practices related to contract disclosures. Further, the Commission has both extensive regulations regarding CRES contracts and the expertise necessary to interpret the law at issue in this case. See, e.g., Ohio Adm. Code 4901:1-21-02; 4901:1-21-03; 4901:1-21-11; and 4901:1-21-12," PUCO said

"[T]he Commission's expertise is necessary to resolve the issues alleged in the complaint. Power4Schools alleges that FES is administering unfair and unforeseen charges to its customers. To ultimately answer these allegations, the expertise of the Commission is necessary to interpret the regulations and statutes governing the retail electric market in Ohio. Chapter 4928 of the Revised Code, and the regulations promulgated by the Commission under that Chapter, govern the acts at issue in this case ... Resolving the issues in this complaint requires interpretation of the statutes and regulations administered and enforced by the Commission, and thus the Commission's expertise is necessary," PUCO said

PUCO ruled that the complaint should be set for hearing

Case No. 14-1182-EL-CSS