Duke Energy is challenging a bankruptcy court decision that would allow FirstEnergy Solutions to withdraw from an agreement that requires participating companies to help keep older Ohio-area coal plants running until 2040, UtilityDive reported.
Consumer advocates warned the ruling could pose a potential blow to electric customers, who could be subject to higher rates if FES withdraws from the Ohio Valley Electric Corporation. Duke Energy and OVEC have both filed or a rehearing of the decision in the U.S. Bankruptcy Court of the Northern District of Ohio, Eastern Division.
FES filed for Chapter 11 bankruptcy in March of this year after its parent company FirstEnergy announced plans to transform itself into a fully-regulated utility company. Exiting the OVEC agreement would allow FES to avoid nearly $60 million in annual payments.