FirstEnergy Solutions Preparing New Filing In Bankruptcy Case
FirstEnergy Solutions, which runs coal and nuclear plants in Ohio, is working on a new bankruptcy proposal after a federal judge denied their initial filing.
FES is filing for bankruptcy, in a restructuring plan that would officially separate the company from its parent company FirstEnergy Corp., the energy distributor.
Dick Munson, senior director for the Environmental Defense Fund, says FirstEnergy Corp. wants off the hook for bad investments in power plants that come with environmental cleanup costs.
“The issue is, not to use that legal process as a means to shift the millions if not billions of dollars’ worth of expenses away from the company to consumers,” Munson says.
FES will submit a new bankruptcy request. The restructuring plan says the company wants to become a fully-functional independent power producer.
“Working with our advisors, we have already initiated action to address the court’s ruling and will submit a new request to have the disclosure statement approved in a timely manner,” said John Judge, CEO and President of FES, in a statement released after the federal bankruptcy judge’s decision. “The company remains focused on a plan that will significantly strengthen its financial position and allow it to exit Chapter 11 in 2019.”
The energy generator has said the nuclear power it produces provides diversity in the market. It plans to shut its plants down unless legislative reforms are made. Ohio lawmakers are considering a possible nuclear plant bailout.