The bankruptcy of a fleet of FirstEnergy Corp. power-generation businesses is pressuring an indebted Ohio electric corporation founded during the Cold War, WSJ Pro Bankruptcy reported. The chapter 11 cases filed on Saturday set up a showdown between several FirstEnergy subsidiaries and Ohio Valley Electric Corp. (OVEC) over a power purchasing deal that runs until 2040. FirstEnergy Solutions Corp., one of the bankrupt affiliates, was obligated to buy power under the agreement from two OVEC fossil fuel plants, providing nearly 5 percent of OVEC’s revenue, according to court documents. Now, FES is seeking bankruptcy-court orders to stop those payments, which it said would amount to $12 million a year, or $268 million through 2040. Read more.
Join experts at the "Power Industry: What's Next?" panel at the ABI Annual Spring Meeting to discuss future power-industry issues that you should know about. FTI Consulting's Carlyn Taylor provides a preview. To register, please click here.
