Pa. Appeals Court Nixes FirstEnergy Rate Hikes

Law360, New York (June 16, 2011, 5:09 PM EDT) -- A Pennsylvania appeals court ruled Tuesday that two FirstEnergy Corp. subsidiaries cannot pass costs for energy lost in transmission on to ratepayers and told regulators to review whether the utilities were entitled to charge interest on past collection shortfalls.

The Commonwealth Court of Pennsylvania upheld the Pennsylvania Public Utility Commission’s determination that hundreds of millions of dollars of so-called line losses incurred by Metropolitan Edison Co. and Pennsylvania Electric Co. between 2007 and 2010 were generation-related rather transmission-related.

“The commission did not err in holding that...
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