Update: The PUCO began hearing evidence this week on FirstEnergy’s modified Rider RRS proposal. Opponents cross examined FirstEnergy’s lead witness who is sponsoring the proposal for a day-and-a-half. Staff also presented three witnesses who are supporting its counterproposal to create a credit support rider in place of modified Rider RRS. OMA Energy Group and others attempted to explore whether Staff’s proposal was reached with FirstEnergy behind closed doors. However, the PUCO largely prohibited any questioning on this topic on the theory that communications between Staff and FirstEnergy regarding the new credit support rider are protected from disclosure as confidential settlement discussions.

Numerous opponents to the modified Rider RRS proposal also presented their witness testimony. OMA Energy Group witness Thomas Lause of member company Cooper Tire & Rubber Co. testified today about FirstEnergy’s modified Rider RRS proposal. Mr. Lause explained how modified Rider RRS amounts to a corporate bailout and identified the ways in which modified Rider RRS undermines the benefits that manufacturers’ derive from securing their generation services from competitive suppliers.

The PUCO directed parties to file their rebuttal testimony to Staff’s counterproposal on Friday. Mr. Lause will be filing rebuttal testimony to Staff’s counterproposal. His rebuttal testimony will explain, among other things, how substituting the credit support rider in place of modified Rider RRS still amounts to a corporate bailout.