Update:   On March 26, 2013, the OMAEG participated in the collaborative meeting with FirstEnergy and other interested stakeholders, which is a quarterly meeting to evaluate FirstEnergy’s energy efficiency and peak demand reduction portfolio plan (“EE/PDR”).  The major issue for the collaborative is bidding energy efficiency resources into the PJM base residual auction (“BRA”).  According to the PUCO entry issued on March 20, 2013, the PUCO directed FirstEnergy to bid 75% of its approved energy efficiency resources into the PJM BRA, similar to AEP-Ohio.  FirstEnergy must submit a plan to bid into the PJM auction by April 13, 2013.  However, FirstEnergy claims that the PUCO’s entry is unclear. Many parties believe that FirstEnergy will attempt to undermine this requirement in some manner because bidding energy efficiency resources into the PJM BRA creates an obligation for FirstEnergy to continue energy efficiency programs through 2015, or be subject to a penalty by PJM. FirstEnergy, however, is currently lobbying the General Assembly to eliminate the energy efficiency benchmarks.  It is speculated that FirstEnergy may refuse to bid in its efficiency resources into the PJM BRA and appeal the PUCO entry, using that appeal as justification for not following the PUCO order to bid its energy efficiency resources into the PJM BRA.

OMAEG Counsel and the OMAEG Board discussed this dilemma at the OMAEG Board meeting on April 3, 2013.  There are no legal procedures to force FirstEnergy’s hand because of the timing of its appeal rights vis-à-vis the PJM bid deadline.  Depending upon FirstEnergy’s actions, this issue/dilemma will probably be debated as part of Sen. Seitz’s bill (S.B. 58).