Ohio Oks Toledo Edison Merger

The Ohio Public Utilities Commission (PUC) has approved a merger agreement between Cleveland Electric Illuminating Co. and Toledo Edison Co. The utilities, wholly-owned subsidiaries of the same holding company (Centerior Energy Corp.), argued that the PUC had no statutory authority to review the details of the merger and should either dismiss or approve the application. In asserting jurisdiction and approving the merger without a hearing, the PUC found that the agreement would give the new company's management the flexibility needed to make cost-saving administrative and organizational changes unattainable under existing affiliation agreements.