Coal / FirstEnergy

Justice Department, Ohio AG warn FirstEnergy Solutions and FirstEnergy on environmental obligations

CLEVELAND — “The U.S. Department of Justice fired a warning shot this week across the bow of FirstEnergy Solutions and its path toward restructuring itself free of past debt and other obligations.

The warning did not leave out parent company FirstEnergy, which negotiated a deal with FES and creditors last summer and has since insisted it has no financial responsibility for FES and its many problems.

The federal and state authorities don’t agree with that and filed an objection in bankruptcy court making sure the companies, its creditors, and the court understand that.

In an eight-page court brief, lawyers for the Justice Department and Ohio and Pennsylvania attorneys general noted that they believe FirstEnergy has “significant independent liability.” They added that FES itself is also on the hook to pay for clean up left behind by coal power plants and the long-term decommissioning cost of its nuclear plants.”

— John Funk, Cleveland Plain Dealer

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