METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...
METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...
METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...
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In addition, subsidiary or related transactions may be valid without approval if theCommission has approved generally a class or category of transactions under 66 Pa.C.S. §2102(d):Where the commission has given its approval generally as to aclass or category of transactions, the commission may apply suchapproval to all subsidiary or related transactions. Such transactionsshall be valid or effective without commission approval under thissection.Moreover, in accordance with 66 Pa. C.S. §2107, the affiliate interest provisionsare not applicable to the “rates and related terms and conditions for the interstatetransmission of electricity…which have been submitted to and approved by a Federalregulatory agency having jurisdiction thereof…”Ultimately, based on 66 C.S. §2102(c), the Commission has the authority todisallow the amount of the FE-PA Companies’ affiliate charges or series of transactionsthat are not subject to the exceptions set forth above and that the Commissiondetermines are in excess of reasonable prices or charges that are not reasonablynecessary and proper.Follow-up Finding and Conclusion No. III-1 – The Amended & Restated MutualAssistance Agreement submitted to the Commission in January 2009 does notcover all affiliates with whom Met-Ed, Penelec and Penn Power conduct business.FirstEnergy filed a revised affiliated interest agreement (AIA) with theCommission on January 26, 2009; however this agreement does not specify certainaffiliates with whom the three FE-PA Companies transact business. AmericanTransmission Systems, Incorporated (ATSI), FirstEnergy Nuclear Operating Company(FENOC), FirstEnergy Properties, Inc. (FirstEnergy Properties), and FirstEnergyGeneration Corp. (GenCo) all conducted business with one or more of the FE-PACompanies during 2009, but are not specified in the revised AIA. However, thesubstance of the transactions between ATSI, GenCo, FENOC (formerly GPU Nuclear),and the FE-PA Companies may have been assigned through merger or acquisition fromagreements previously filed and approved for their predecessor affiliate entities.Nonetheless, it appears that the transactions occurring between the FE-PA Companiesand FirstEnergy Properties have never been included in an AIA submitted to the PUCfor approval. In particular, Met-Ed, Penelec, and Penn Power received services in theamount of $58,000, $56,000, and $11,000, respectively, from FirstEnergy Properties in2009.As previously stated, the Commission’s authority to approve contracts betweenpublic utilities and their affiliates is specifically provided for in 66 C.S. §2102(a).Therefore, FirstEnergy should submit an AIA(s) to the Commission that details thetransactions occurring between all affiliates and the FE-PA Companies. FirstEnergyindicated that transactions between the FE-PA Companies and affiliates are consistent- 20 -