PG&E Leverage Over Power Makers Threatened by Ohio Utility Spat

A spat between between Ohio electric companies is threatening to strip bankrupt utility PG&E Corp. of its right to get out of overpriced power contracts.

The threat to PG&E stems from a case involving FirstEnergy Solutions Corp., the bankrupt unit of FirstEnergy Corp., which is defending its right to cancel a power-buying contract with Ohio Valley Electric Corp. 21 years early. On Wednesday, Ohio Valley asked a federal appeals court in Cincinnati to throw out a bankruptcy court ruling that gave FES the option to dump the valuable contract.

The case is being closely watched because earlier this month in ...