FirstEnergy Grid Subsidy Struck by Ohio Supreme Court (1)

FirstEnergy Corp. can’t collect a subsidy from Ohio electrical ratepayers, valued between $168 million to $204 million, that state regulators granted to shore up the struggling energy provider’s finances.

The Ohio Supreme Court ruled June 19 that the state-approved subsidy was an unlawful, improper use of an incentive program intended to help utilities fund grid modernization projects.

“But the commission pointed to nothing in the record that demonstrates how this cash infusion incentivizes FirstEnergy to accomplish that goal,” said Justice Michael Donnelly, writing for himself and justices Judith French and Melody Stewart.

The court decision invalidating FirstEnergy’s “distribution modernization ...