Energy / FirstEnergy

FirstEnergy Solutions failure appears inevitable says FE CEO

CLEVELAND — “FirstEnergy’s top executive Charles ‘Chuck’ Jones confirmed today what analysts have been whispering for months, that time is running out for the company’s power plant subsidiary, FirstEnergy Solutions.

Jones told analysts during a public teleconference that FirstEnergy Solutions has been operating independently since early last year and that FES will no longer have access to FirstEnergy’s internal bank by the end of March, cutting the last ties with the parent company.

But before March 31, Jones said he expected FirstEnergy Solutions to borrow up to $100 million from the internal bank. Those borrowed funds would make FirstEnergy a creditor if the subsidiary files for Chapter 11 bankruptcy protection.

…At that point of a Chapter 11 filing, the fate of the company’s power plants, including Perry nuclear plant in Lake County east of Cleveland and Davis-Besse in Ottawa County near Toledo will most likely be up to a federal bankruptcy judge.”

— John Funk, Cleveland Plain Dealer

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