FirstEnergy Doubles Down on Federal Bailout

According to Bloomberg News this week, Trump administration officials continue to consider a bailout for the unprofitable, nuclear power plants owned by now bankrupt FirstEnergy Services. The source indicates that the administration is now considering using an obscure national defense law from the cold war that was created to help the steel industry to justify the possible action.

OMA members this week discussed possible legal appeals should the bailout be granted. Even though FirstEnergy no longer has an ownership stake in the power plants, the bankruptcy agreement between FirstEnergy and FirstEnergy Services provides a nice bonus to FirstEnergy if it successfully convinces officials in favor of a bailout. 5/17/2018