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Regulators Disappoint Watchdog in First Energy Case

9/14/2000

LCG, Sept. 14, 2000The Public utilities Commission of Ohio has reaffirmed its approval of the "transition plan" proffered by First Energy Corp., and in doing so has upset a local watchdog group which says it will go to court.

Among the things that Citizen Power doesn't like is a provision in First Energy's plan that allows the company to count its affiliate First Energy Services as a competitive supplier, which makes it easier for the company to achieve a 20 percent threshold for customers switching electricity providers.

The reason Citizen Power doesn't like that provision is its beneficial (to the company) effect on stranded cost recovery. The regulators dismissed the watchdog's complaint on that issue saying if the legislature had intended to preclude switches to an affiliate of a utility it would have said so.

The order also rejected Citizen Power's arguments that First Energy should not be allowed toexclude nearby suppliers' access to 1,120 megawatts of generation capacity, and that First Energy must give up control of the transmission lines to an independent operator before competition starts.

David Hughes, executive director of Citizen Power, complained "PUCO failed to respond (positively) to a single argument we made on these important issues."

Harvey Reiter, the watchdog's lawyer, said "Citizen Power does not believe PUCO's orders are logically supportable and it intends to go to court."