First Energy just hit the jackpot at FERC last Friday. The PA Public Utilities Commission cancelled the northern end of the TrAIL project, and First Energy applied to FERC to abandon the project for cost recovery treatment under the provisions of the 2005 Energy Policy Act. FERC issued an order on Friday in the case throwing out the request, but granting FE the right to collect rate payer money, with a 12% extra return on equity for the asset life of the TrAIL project.
In short, First Energy gets a big payday for proposing a project that was so dumb, it was cancelled outright by the state PUC. Hence the headline on this post.
For further discussion of the implications of this giveaway, I’ll turn you over to the expert.