FirstEnergy Solutions Will Pay $12M in the ‘Polar Vortex Settlement’
CLEVELAND–(BUSINESS WIRE)–Large commercial and industrial energy users in Ohio that were part of a successful class-action lawsuit against FirstEnergy Solutions (“FES”) will soon be receiving their share of the $12 million settlement.
Brakey Energy, Ohio’s leading independent energy management firm serving large, energy-intensive enterprises, was deeply involved with the lawsuit. Carolyn Brakey, General Counsel of Brakey Energy and now principal of Brakey Law LLC originated the suit and developed the case theory. Matt Brakey, President of Brakey Energy, served as the expert witness.
Now commonly known as the “Polar Vortex Settlement,” the case concerned an FES surcharge, billed as the RTO Expense Surcharge, that originated from increased electricity costs during the 2014 polar vortex. The class alleged that FES breached its fixed-rate contracts with business customers by passing through charges that FES paid in connection with efforts to ensure a reliable supply of electricity during unusually cold weather. The surcharge amounted to approximately one percent (1%) of the customer’s annual electric generation expenditure.
