A subsidiary that runs FirstEnergy Corp.’s nuclear and also coal-fired nuclear power plant has applied for personal bankruptcy after the energy said earlier that it planned to close its three nuclear plants in Ohio and also Pennsylvania.
The action introduced by FirstEnergy Solutions late Saturday signals the moms and dad business’s plan to obtain from the power generating business and focus on supplying electricity.
The subsidiary, which has been saddled by placing debt, stated in a declaration that it’s looking for bankruptcy security to “help with an orderly financial restructuring” and also believes the filing is in the very best interests of the company as well as creditors.
The declare personal bankruptcy protection consists of FirstEnergy Solutions, in addition to all FES subsidiaries and also FirstEnergy Nuclear Operating Co., inning accordance with the statement.
FirstEnergy Corp., moms and dad of FirstEnergy Solutions as well as the FirstEnergy Nuclear Operating Co., is not part of the filing.
Donald R. Schneider, president of FirstEnergy Solutions, stated the Boards of Supervisors for FirstEnergy Solutions and also FirstEnergy Nuclear Operating Co. determined that the Phase 11 filing stands for “our ideal path ahead as we continue to seek chances for restructuring, property sales and legal and regulatory alleviation.”
FirstEnergy Solutions and its subsidiaries collectively have more than $550 million in cash, which they believe is “sufficient to continue normal procedures and meet post-petition commitments to staff members, distributors, as well as consumers as they come due,” inning accordance with the declaration.
The business’s aging, as well as costly fleet of coal and also nuclear plants, have actually been incapable to contend over the last few years with the growing number of gas power plants in the East as well as Midwest.
FirstEnergy first alerted that maybe forced to shut its power plants in Ohio four years earlier when it looked for to alter how it is spent for electricity.
It additionally has been unable to obtain financial assistance from federal and state leaders to keep its nuclear plants operating.
The utility claimed on March 28 that it planned to shut down its 3 nuclear plants within the following 3 years.
Akron-based FirstEnergy materials power to about 6 million clients in Ohio, Pennsylvania, New Jacket, West Virginia, Maryland and New York City.