FirstEnergy Seeks FPA 202(c) Emergency Relief From Secretary Perry

March Counsel

In its ongoing battle over compensation for its coal and nuclear generating assets in PJM, FirstEnergy sent a letter to Secretary Rick Perry today asking him to immediately intervene and issue an emergency order under section 202(c) of the Federal Power Act.  The order would require “(i) the subject baseload nuclear and coal-fired generators to enter into contracts and all necessary arrangements with PJM, on a plant-by-plant basis, to generate, deliver, interchange, and transmit electric energy, capacity, and ancillary services to maintain fuel diversity and grid dependability and resiliency within the PJM region and (ii) PJM to pay such qualifying generating facilities just and reasonable cost-based rates that provide for full cost recovery consistent with ratemaking standards and principles or as otherwise necessary to ensure continued operations. In addition, the order should direct PJM to begin negotiating immediately with such generators on the terms of such supply.”

A copy of the letter can be found here.

Eight (8) emergency orders have been issued under section 202(c) in the last 18 years, including two in 2017 by Secretary Perry.   A full list of these section 202(c) orders can be found here.

This effort falls on the heels of the failed attempt for a rulemaking through the FERC, which was converted to a data collection docket by the Commission in January 2018.  The RTOs and ISOs submitted their initial comments earlier this month (Docket No. AD18-7), and briefs from the industry are due May 9th.

 

 

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