Energy Harbor will pay almost $66 million to cancel a solar power purchase agreement signed by its predecessor, FirstEnergy Solutions (FES), clearing away another legal battle as it continues to emerge from bankruptcy.

On Saturday, Judge Alan M. Koschik, of the Bankruptcy Court for the Northern District of Ohio, approved a stipulation outlining the settlement between Energy Harbor and Maryland Solar Holdings.

The judge’s order came three days after FERC granted Energy Harbor’s request to hold in abeyance for 90 days a docket the commission had opened to consider whether FES could abrogate its contracts with Maryland Solar and the Ohio Valley Electric Corp. (OVEC) (EL20-35).

The commission said it agreed with Energy Harbor that the proceeding would be moot if the bankruptcy court accepted its settlements with Maryland Solar and one announced in May with OVEC.

Energy Harbor agreed to pay Maryland Solar $65.9 million less $1 million in cash collateral held by the solar company for the PPA signed by FES in 2011 for the purchase of renewable energy and related credits. Maryland Solar, which owns a 20-MW solar farm in Washington County, Md., had sought $79.8 million in the dispute.

FES changed its name to Energy Harbor upon emerging from bankruptcy in February, with former bondholders owning 50% of the equity.

Energy Harbor also assumed FES’ obligations with OVEC and agreed to pay the company $32.5 million in a settlement approved by the bankruptcy court on June 15. (See Energy Harbor to Pay OVEC $32.5M in Settlement.)

In March, FERC ordered a paper hearing to consider FES’ attempt to void the OVEC contract and PPA with Maryland Solar as part of its bankruptcy proceeding. The commission acted after the 6th U.S. Circuit Court of Appeals issued a mandate overruling the bankruptcy court’s May 2018 injunction preventing FERC from issuing any order requiring FES to continue complying with the contracts. The appellate court also reversed the bankruptcy court’s ruling allowing FES to reject the contracts.

In holding the proceeding in abeyance, FERC ordered Energy Harbor to file a report by Sept. 29 updating the commission on the status of the court proceedings.

FERC’s order opening the docket said the “jurisdictional contracts” included several wind PPAs signed by FES in addition to the OVEC and Maryland Solar contracts. But Energy Harbor’s June 15 motion to hold the FERC docket in abeyance said Maryland Solar and OVEC were “the sole counterparties to the jurisdictional contracts at issue in this proceeding.”

A company spokesman clarified that FES had entered into stipulations with all of the other counterparties during the Chapter 11 restructuring proceedings.