August 19, 2016, Volume 5, Issue 121

08/19/2016

Update: OMA Energy Group and several others filed initial briefs in opposition to FirstEnergy’s and Staff’s rehearing proposals. OMA Energy Group’s brief relied extensively on the testimony of OMA Energy Group witness Thomas Lause who explained how the rehearing proposals could harm manufacturers’ competiveness and undermine economic development efforts in the state of Ohio. The brief first dispelled FirstEnergy’s claim that its Modified Rider RRS proposal (which relies on a virtual PPA) would bring rate stability to customers; OMA Energy Group explained that, among other things, the charge would instead thwart the effects of stable pricing derived from CRES contracts. Second, the brief showed the flaws with Staff’s proposed Distribution Modernization Rider (Rider DMR), particularly with respect to the fact that Staff’s proposal does not require FirstEnergy to invest in distribution grid modernization. Third, the brief countered FirstEnergy’s modifications to Staff’s Rider DMR by showing, among other things, that FirstEnergy overstated the economic development benefits associated with maintaining the FirstEnergy corporate headquarters and nexus of operations in Akron, Ohio. Aside from challenging the various rehearing proposals, OMA Energy Group urged the PUCO to reconsider its decision to strike large portions of hearing testimony from several intervenor witnesses so as to ensure that the PUCO has all the relevant and appropriate information to make its decision. Reply briefs are due by the end of August and a PUCO decision is expected in September or October.

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