Update: Recall that FirstEnergy, the Ohio Consumers’ Counsel (“OCC”), Nucor Steel, IEU-Ohio, and the Environmental Law & Policy Center and Ohio Environmental Council (ELPC/OEC) filed applications for rehearing regarding the PUCO’s March 20, 2013 Opinion and Order approving FirstEnergy’s 2013-2015 EE/PDR portfolio plan. FirstEnergy argued that the PUCO doesn’t have the authority to require FirstEnergy to bid energy efficiency resources into the PJM auction and that it poses a significant risk to customers in light of SB 58. The other intervening parties argued that FirstEnergy should be required to bid at least 75% of its energy efficiency resources into the PJM capacity market.
On July 17, 2013, the PUCO issued an entry on rehearing denying the applications for rehearing filed by OCC and ELPC/OEC, and granting in part and denying in part the applications for rehearing filed by FirstEnergy, lEU-Ohio, and Nucor. Specifically, the PUCO denied rehearing on the basis that its requirement that the Companies bid 75% percent of planned energy efficiency resources into the PJM BRA is unjust and unreasonable. However, the PUCO granted rehearing and directed FirstEnergy to implement a pilot program which would enable FirstEnergy to receive 20% profit from any revenue obtained from bidding energy efficiency and demand response resources into the PJM auctions, while the remaining 80% to be credited to ratepayers to offset the costs of energy efficiency and peak demand reduction programs. The Commission will review this pilot program in the next portfolio proceeding. The PUCO also found that mercantile customers may seek exemption from Rider DSE2 or other rebates in lieu of exemption without being required to transfer ownership of energy attributes to FirstEnergy.
Finally the PUCO granted Nucor’s application for rehearing on the issue regarding the proper methodology to calculate the peak demand reduction benefit for interruptible load under Rider ELR and directed FirstEnergy to use the definition of curtailable load in Rider ELR rather than the amount of Rider ELR interruptible load the Companies choose to register with PJM. Commissioner Lynn Slaby filed a concurring opinion stating that the “Companies should have been provided an additional incentive by allowing the Company to receive a higher percentage of the revenue if they were to bid over the mandated 75 percent.”
We are continuing to monitor this case and will provide updates accordingly.
