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Exelon sues FirstEnergy Solutions over delays on $140M sale of electric contracts

November 27, 2018

Exelon sues FirstEnergy Solutions over delays on $140M sale of electric contracts

CLEVELAND, Ohio -- Exelon Corp. has sued FirstEnergy Solutions Corp., the Akron-based energy supplier working its way through bankruptcy, over the future of more than one million customer accounts.

In a complaint filed late Monday in federal court, where FES has been seeking protection from creditors since late March, a Pennsylvania-based Exelon subsidiary charged that FES has stalled on closing a $140 million deal. The Exelon Generation Company entered an agreement in July to buy the accounts, contracts under which consumers and businesses have long-term arrangements to buy electricity.

The agreement between Exelon and FES allows either side to back out if, through nobody’s fault, the sale doesn’t occur by Dec. 31. Now Exelon, pointing to five scuttled hearings on the deal, is asking Judge Alan Koschik to intervene and prevent FES from declaring the contract void after the end of the year.

The complaint, and a related request from Exelon for a preliminary injunction, follows months of delay by FES. Since last summer, FES has petitioned the court five times to postpone a final hearing on the sale. According to court filings, FES’s change of heart came as a surprise to Exelon.

In the spring, FES lawyers declared in open court that FES was eager to sell off the accounts. Exelon was the only successful bidder in a subsequent court-approved auction.

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