OVEC Seeks To Prevent FirstEnergy Solutions From Terminating Contract Via Bankruptcy
Ohio Valley Electric Corporation filed a complaint at FERC against FirstEnergy Solutions Corp. seeking to prevent FES from rejecting a current power contract with OVEC as part of FES's anticipated bankruptcy.
OVEC said that FirstEnergy is a counterparty to the Inter-Company Power Agreement (“ICPA”), a long-term power supply and cost-recovery agreement under which OVEC alleged that FES is obligated to pay for its contractual share of the costs incurred by OVEC to meet its obligations under the ICPA.
The complaint asks the Commission to find that FES's "anticipated breach" of the ICPA would amount to a termination of FES's purchase obligation in violation of the filed rate doctrine and the ICPA.
"[FES] has announced its intention to declare bankruptcy in the next few weeks and is expected to seek rejection of the ICPA in the bankruptcy court," OVEC alleged