PUC Initiates Proceeding To Protect Customers From FirstEnergy Solutions Bankruptcy

The Public Utilities Commission of Ohio initiated a proceeding to, "protect Ohio consumers from any adverse impacts due to the recent filing by FirstEnergy Solutions Corp. of a petition for reorganization under Chapter 11 of the United States Bankruptcy Code."

"[D]ue to the provisions of the United States Bankruptcy Code and Ohio law, the Commission cannot guarantee that contracts entered into by FirstEnergy Solutions Corp. prior to the bankruptcy filing will be not be impacted by the filing," PUCO said

In a notice of material change filed on April 2 with PUCO, FES had stated, "FES will continue to operate in the ordinary course and serve its Ohio customers. FES intends to continue to perform under its contracts, and does not anticipate any change in service in the near future as a result of this bankruptcy."

FES was directed to file a report to PUCO by May 4,2018 explaining:

(1) whether FES plans, and is able, to continue to serve its existing customers for competitive retail electric service (CRES) in Ohio;

(2) whether FES plans, and is able, to enroll new customers for CRES in Ohio;

(3) whether FES plans, and is able, to serve existing customers aggregated through government aggregations in Ohio;

(4) whether FES plans, and is able, to serve new customers aggregated through government aggregations in Ohio; and

(5) whether FES has met its obligations to provide collateral or other financial guarantees or other assurances to the electric distribution utilities in whose certified territories FES continues to operate.

PUCO also noted FES has been a winning supplier in various electricity default service auctions.

"FES should also explain whether FES plans, and is able, to continue to provide generation for SSO customers in this state and confirm that FES has met its obligations to provide to collateral or other financial guarantees to the electric distribution utilities for which FES provides generation for SSO customers," PUCO directed