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Utility retains ex-U.S. solicitor general to protect its interests in rates re-regulation
By Betty Lin-Fisher Beacon Journal business writer
Published on Friday, Nov 02, 2007
Akron-based FirstEnergy Corp. wants to make sure legislation being drafted to possibly re-regulate the state's electric rates is constitutional and has brought in a big gun.
The utility said it has retained Ted Olson, the former solicitor general of the United States, in its lobbying efforts against Gov. Ted Strickland's push to re-regulate electric rates.
Olson was solicitor general from 2001 to 2004. From 1981 to 1984, he was an assistant attorney general in the U.S. Department of Justice.
As solicitor general, Olson was President Bush's principal advocate in the U.S. Supreme Court and legal adviser to the president and attorney general. Olson is considered a national expert on constitutional and appellate law.
The utility retained Olson in the past few weeks, said FirstEnergy spokesman Ralph DiNicola.
''We certainly wanted to make sure we had a recognized expert on constitutional law, which Mr. Olson is, available to any members of the General Assembly who had questions about the legislation that's being proposed and its constitutionality, especially with respect to our power plants,'' DiNicola said.
FirstEnergy transferred ownership of its power plants to a subsidiary, FirstEnergy Solutions. The subsidiary is regulated by the Federal Energy Regulatory Commission and not by the Public Utilities Commission of Ohio (PUCO).
FirstEnergy Solutions sells electricity on the market, includ
ing to the company's utilities, Ohio Edison, Cleveland Illuminating Co. and Toledo Edison.
''If the final legislation somehow has the (PUCO) with authority over our competitive subsidiary, on its face, that would be unconstitutional,'' DiNicola said.
Olson and another partner at his firm, Matt McGill, both of whom have registered with the state as lobbyists for FirstEnergy, already have met with some legislators in Columbus, DiNicola said.
When asked whether FirstEnergy was bringing Olson on board in preparation for filing a federal lawsuit, DiNicola said, ''No, we're just hoping the legislature doesn't make it a federal case.
''We just need to make sure the members of the General Assembly understand our position on this. We believe that working together, we can still get done what the General Assembly wants to get done,'' DiNicola said.
However, the company ''is prepared to defend our rights in court, if need be. We're certainly hopeful that's not something that needs to be done.''
FirstEnergy officials have been busy talking to legislators and testifying before Senate hearings about concerns about the legislation. An amended version of Strickland's proposal passed the Senate on Wednesday and heads to the House for hearings.
Olson practices law at a Washington, D.C., law firm, Gibson, Dunn & Crutcher LLP. His wife, Barbara, was killed aboard an airplane on Sept. 11, 2001, that was flown into the Pentagon.
Betty Lin-Fisher can be reached at
330-996-3724 or blinfisher@
thebeaconjournal.com.
Akron-based FirstEnergy Corp. wants to make sure legislation being drafted to possibly re-regulate the state's electric rates is constitutional and has brought in a big gun.
Get the full article here.
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