AEP, FirstEnergy Face U.S. Review of Ohio Power Plant Contracts
- U.S. regulators say utilities' customers would be `captive'
- Power contracts now subject to federal review and approval
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American Electric Power Co. and FirstEnergy Corp. face a federal review of controversial contracts they secured from state regulators for power from money-losing plants they run in Ohio.
AEP and FirstEnergy won guaranteed rates for uneconomic coal-fired and nuclear plants last month, over the objections of competing generators who argued they amounted to a consumer-funded bailout. The contracts warrant a U.S. review as the utilities’ customers will be “captive in that they have no choice as to payment” of the charges, the Federal Energy Regulatory Commission said Wednesday, ordering the companies to submit their so-called power purchase agreements for approval.