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FirstEnergy Bankruptcy Judge Ordered to Reconsider Contracts

Dec. 12, 2019, 7:26 PM

A U.S. appeals court ordered the judge overseeing FirstEnergy Solutions’s bankruptcy to reconsider some long-term power contracts, saying he used too limited of a standard in deciding to reject them.

  • U.S. Court of Appeals in Ohio affirmed the bankruptcy court’s authority to reject contracts but said Judge Alan Koschik must consider a higher standard that takes into account “the public interest” before tossing out FES’s power purchase agreements
    • Judge should consider the “consequential impact on consumers” and other issues such as decommissioning, environmental management and future pension obligations
  • Appeals court also reversed an injunction that Koschik imposed on the ...