FirstEnergy Profits Up, Announces Settlement with Bankrupt Affiliate

Free of the drag of its unprofitable generation business, FirstEnergy Solutions (FES), FirstEnergy reported a healthy profit of $1.2 billion for the first quarter.

John Funk of the Cleveland Plain Dealer reported that much of the profitability stems from an accounting gain related to the decision for subsidiary FirstEnergy Solutions file bankruptcy protection on March 31, the last day of the quarter.

Also, during the investor call, FirstEnergy’s CEO announced that a settlement between FES and its creditors had been reached which will release FirstEnergy from all claims. Here’s an analysis of the bankruptcy settlement prepared by Carpenter Lipps & Leland.

Meanwhile, FirstEnergy, FES, some coal interests, and community leaders in the footprint of the power plants continue to press federal and state officials about the need for a bailout. FES took steps late this week to certify its plans to close its Ohio nuclear power plants. In a letter to the Nuclear Regulatory Commission, FES Generation informed the agency that the Davis-Besse plant near Toledo will close on May 31, 2020 and the Perry plant in Lake County will close on May 31, 2021. 4/26/2018