March 26, 2018 Read More →

In a FirstEnergy Bankruptcy, Old Plants Would Close or Go on the Auction Block

Cleveland Plain Dealer:

Brutal competitive financial forces are poised to remake FirstEnergy into a utility without power plants and focused solely on delivering electricity.

The Akron-based power company that a decade ago hired former George W. Bush administration Solicitor General Ted Olson to bully state lawmakers who were considering a return to state-regulated power prices now appears ready to sell or close its remaining coal and nuclear power plants because the state won’t subsidize them and neither will federal authorities.

Those include Perry nuclear plant in Lake County east of Cleveland and Davis-Besse in Ottawa County near Toledo.

The draconian move may come in a corporate “restructuring” plan that could get under way next week in a federal bankruptcy court, either here or any other federal jurisdiction where the company has offices.

FirstEnergy Solutions, the debt-ridden subsidiary that owns the corporation’s power plants, would be seeking Chapter 11 bankruptcy protection. FirstEnergy Nuclear Operating Co., a separate FirstEnergy subsidiary that holds the federal nuclear operating licenses, could also be involved.

That the bankruptcy now appears inevitable stems from several actions and statements FirstEnergy has made.

More: FirstEnergy Solutions bankruptcy restructuring likely, power plants would be closed or sold

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