Utility Acquisition Under Fire

Citizen Power, a consumer watchdog organization, is drawing fire to Ohio utility FirstEnergy’s plans to acquire General Public Utilities. According to Citizen Power, FirstEnergy has not sought prior approval of the acquisition from the Public Utilities Commission of Ohio, which violates Ohio law.

Citizen Power filed a complaint against the FirstEnergy-General Public Utilities merger with the Public Utilities Commission of Ohio in late December.

If approved, the merger would create a utility whose operations span seven states. The Pennsylvania Public Utility Commission and the Federal Energy Regulatory Commission are reviewing the merger, but FirstEnergy has yet to file an application with the Ohio Commission.

Citizen Power claims consolidations of this magnitude can affect service to consumers in Ohio and for that reason Ohio law requires prior regulatory approval.

In papers filed with FERC last month, the Public Utilities Commission of Ohio expressed concern that the proposed merger “may substantially influence the ability of the Public Utilities Commission of Ohio to carry out its statutory obligations, particularly with regard to the restructuring of the electric utility industry in the state of Ohio.”