FERC has accepted a revised market-based rate tariff for FirstEnergy Solutions (FES) that FERC had directed in response to a FERC order which had rescinded certain MBR affiliate waivers previously granted to FES, to make competitively bid sales at market-based rates to utility affiliates in a retail choice environment, in light of the no-bid PPA between FirstEnergy Solutions and its Ohio affiliated utilities approved by PUCO (and rejected by FERC).

FES's revised MBR tariff clarified that the affiliate sales restrictions codified at 18 C.F.R. § 35.39(b) will apply to the specific affiliate PPA in question.

At the time of the filing, the FirstEnergy Ohio utilities were pursuing a modified PPA proposal, which functioned solely as a financial transaction with no power sale between FES and the EDCs. PUCO ultimately rejected this proposal, granting the FirstEnergy Ohio utilities certain monetary support through new grid modernization charges.

Several parties had protested FES's MBR revisions as inadequate in light of the then-pending modified PPA proposal. FERC dismissed such protests as moot given the subsequent rejection of the modified PPA by PUCO.

FERC found that FES's tariff revisions comply with the Commission’s specific directive in FERC's April 27 order to modify its market-based rate tariff to clarify that the affiliate sales restrictions codified at 18 C.F.R. § 35.39(b) will apply to the specific affiliate PPA.

See FERC's order here (ER16-1807)