Energy / FirstEnergy / Nuclear Energy

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

 FirstEnergy has not been able to persuade state lawmakers or federal authorities to create special fees to subsidize its nuclear power plants and has made it clear in recent months that it wants to become a fully regulated company again. A bankruptcy case could be filed within a week. 

CLEVELAND — “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.”

— John Funk, Cleveland Plain Dealer

read more

Tags: