U.S. Supreme Court decision may undercut PUCO's recent PPAs for Ohio utilities

On April 19, 2016, the United States Supreme Court, in Hughes v. Talen Energy Marketing, LLC, unanimously (8-0) struck down an order from Maryland’s Public Service Commission which “impermissibly intrudes upon the wholesale electric market, a domain Congress reserved to [the Federal Energy Regulatory Commission] FERC alone.” The ripples from the Court’s decision may well affect two cases recently decided by the Public Utilities Commission of Ohio (PUCO), also involving subsidized power purchase agreements between regulated utilities (American Electric Power-Ohio (AEP) and FirstEnergy Corp. (FE)) and their unregulated generation affiliates. For more information, read Bricker’s article, “U.S. Supreme Court decision may undercut recent PUCO decisions approving ratepayer-subsidized power purchase agreements for Ohio utilities.”

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