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ARTICLE · 03 MAY 2016

Not So Fast, Ohio

Day Pitney LLP
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The narrow and specific issue raised and addressed by FERC on Wenesday is whether the Affiliate PPAs were exempt from a requirement of prior FERC approval in light of waivers FERC had previously granted.

United StatesEnergy and Natural Resources
David Doot
David Doot
Joseph Fagan
Joseph Fagan
Patrick Gerity
Patrick Gerity
Evan C. Reese
Evan C. Reese
James B. Blackburn, IV
James B. Blackburn, IV
Sebastian Lombardi
Sebastian Lombardi
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In a pair of orders reminiscent of last week's Supreme Court opinion in Hughes1 concerning federal and state jurisdiction, the Federal Energy Regulatory Commission (FERC) affirmed on Wednesday its exclusive role in ensuring just and reasonable rates for wholesale sales of electric energy and capacity, including those for contracts already approved by Ohio public utility regulators.2 FERC left for another day the decision of whether it would approve the specific power purchase agreements between two Ohio public utilities (Ohio Utilities) and their wholesale power sales affiliates (Affiliate PPAs) that Ohio regulators had blessed. FERC also declined to address the issues of whether or how the mechanism for establishing wholesale power rates in the PJM Interconnection might be changed if FERC was to approve the Affiliate PPAs.

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