Judge: Bankrupt company doesn’t have to pay for coal plants


A federal judge said bankrupt FirstEnergy Solutions should not have to pay $58 million a year to a pact overseeing coal-fired electric generation plants — a pact that includes Dayton Power & Light (DP&L).

DP&L, with other Ohio power companies, make up the Ohio Valley Electric Corporation (OVEC), which operates the older, coal-fired power plants on the Ohio River.

OVEC members are arguing that the bankrupt company cannot withdraw from contributing to the operation of the aging plants, leaving DP&L, American Electric Power of Ohio and Duke Energy — and their customers — to take on the plants’ costs themselves.

RELATEDFirstEnergy bankruptcy could upset DP&L power pact

OVEC filed a complaint to the Federal Energy Regulatory Commission in March — a few days before FirstEnergy Solutions declared bankruptcy — to prevent FirstEnergy Solutions from withdrawing from financial obligations for the joint operation of the plants.

FirstEnergy’s exit from the pact could leave OVEC’s members — and their customers — with “hundreds of millions of dollars over the remaining life of the contract,” OVEC has said.

MORETroubled downtown Dayton building sold 

The preliminary injunction was granted Friday in Cleveland’s federal bankruptcy court.

In a five-page ruling, Judge Alan Koschik said: “A successful suit by FERC, or by OVEC or other counter-parties to the [OVEC] contracts before FERC, would result in a pecuniary advantage to certain private parties vis-a-vis other creditors of the debtors’ estates, contrary to the bankruptcy code’s priorities,” Koschik said. “Seeking that result is the obvious and dominant purpose of the FERC proceeding.”

The ruling can be appealed.

FirstEnergy Solutions Corp. is the plaintiff in the case while the Federal Energy Regulatory Commission is the defendant. OVEC is identified as an “intervenor-defendant.”



Reader Comments ...


Next Up in Business

Large employers reportedly eye county-owned land in Xenia

Large employers are eyeing county-owned land in Xenia that has all the infrastructure needed to become a hub of industrial activity. At least three “large businesses” have inquired in the last six months about the 140 acres that make up Greene Regional Business Park, located on the southern outskirts of the city near U.S. 35, according...
Kroger’s fruit, vegetables will look ugly next year: Here’s why
Kroger’s fruit, vegetables will look ugly next year: Here’s why

Kroger’s produce is about to get a little ugly. The grocer plans to introduce its “ugly produce” brand in stores in early 2019. Pickuliar Picks are “imperfect but perfectly delicious” produce that go unused because of an ugly appearance or size. The produce is perfectly acceptable for human consumption. Kroger officials...
Premier Health opens latest urgent care center
Premier Health opens latest urgent care center

A new urgent care center is now open in Washington Twp. It is the eight urgent care center owned by Dayton-Based Premier Health, which has network of hospitals and other health services. The urgent care opened Saturday in at at 6071 Far Hills Ave. in shopping center at the corner of Whipp Road and Far Hills Avenue, which is also home to Dorothy Lane...
Company connects military inventions to private business
Company connects military inventions to private business

Military innovations are often the perfect launching pad for commercial businesses far outside military base fences. For that reason, Nicholas Ripplinger, founder of Dayton’s Battle Sight Technologies, doesn’t see TechLink as just another program. Neither does Timothy Shaw, president and chief operating officer of Riverside’s GlobalFlyte...
New independent pharmacy opening west of Dayton
New independent pharmacy opening west of Dayton

An independent pharmacy is planning to open a new location in Brookville. The new location for Reed’s Pharmacy will open Oct. 25 at 428 N. Wolf Creek St. in the Brookside Shopping Center. MORE: Dayton doctor elected president of national physician group “I thought it was a good opportunity to bring back an independent pharmacy to the community...
More Stories