Exhibit D-15
COMMONWEALTH OF PENNSYLVANIA
PENNSYLVANIA PUBLIC UTILITY COMMISSION
P.O. BOX 3265, HARRISBURG, PA 17105-3265
FEBRUARY 4, 2003
XXXX XXXXXXX XXXXX & XXXXXXX LLP
SUITE 000
0000 XXXXXXXXX XXXX
XXXXXXX XX 00000-1221
ATTN: MR W XXXXX XXXXX
Re: G-00020987 - Affiliated Interest Agreement between
FirstEnergy Corp and FirstEnergy Service Company
Dear Xx. Xxxxx:
On October 31, 2002, FirstEnergy Corp ("FirstEnergy") filed an Affiliated
Interest Agreement with FirstEnergy Service Company. ("ServeCo"). This Agreement
was filed in accordance with the requirements of Section 2102(b) of the Public
Utility Code, 66 Pa. C.S.ss.2102(b).
This Affiliated Interest Agreement concerns a Service Agreement between
ServeCo and FirstEnergy; whereas ServeCo will provide various services to
FirstEnergy's utility subsidiaries in Pennsylvania.
As a result of the FirstEnergy/GPU merger, FirstEnergy became a
registered holding company under the Public Utility Holding Company Act of 1935
("PUHCA"). The Securities and Exchange Commission ("SEC") has directed
FirstEnergy to file an application seeking authorization for ServeCo (as a
wholly-owned FirstEnergy subsidiary) to provide all common corporate services to
FirstEnergy and its utility and non-utility subsidiaries. Basically, ServeCo
will replace the former GPU Service, Inc. as the primary provider of various
corporate, managerial and administrative support services to Metropolitan Edison
Company ("Met Ed"), Pennsylvania Electric Company ("Penelec") and Pennsylvania
Power Company ("Penn Power"). ServeCo will not perform the "operations" services
for FirstEnergy's Pennsylvania utility subsidiaries, which are organized and
conduct their operations on a regional basis as separate business units.
ServeCo will be a mutual service company in accordance with Rules 87, 88
and 93 under PUHCA. As such, cost accounting procedures will be implemented
consistent with the "at-cost" provisions of Rules 90 and 91 under PUHCA.
FirstEnergy is planning implementation of this Service Agreement on April
1, 2003.
Upon review of the Company's filing, it does not appear that this filing
is unreasonable or contrary to the public interest. Therefore, this filing is
hereby approved. However, approval of this filing does not constitute a
determination that such filing is consistent with the public interest, and that
the associated costs or expenses are reasonable or prudent for the purposes of
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determining just and reasonable rates. Furthermore, the Commission's approval is
contingent upon the possibility that subsequent audits, reviews, and inquiry, in
any Commission proceeding, maybe conducted, pursuant to 66 Pa. C. S.ss.ss.2102,
et seq.
In addition, this approval will apply only to the agreement(s),
service(s), matters, and parties specifically and clearly defined under this
instant filing as well as under any associated and previously filed filings.
Sincerely,
/s/ Xxxxx X. XxXxxxx
_______________________
Xxxxx X. XxXxxxx
Secretary
Cc: Xxxxx Xxxxxxxxxxx, FUS
Xxxxx Xxxxxxx, Secretary's Bureau
