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FirstEnergy nuclear and coal plant units file for bankruptcy protection
- 6 years ago (2018-04-02)
- David Flin
FirstEnergy Corporation of the USA has announced that its nuclear and coal power plant units filed for bankruptcy court protection on 31 March, 2018. The company is looking to restructure, sell assets, and win government support to cope with competitors using cheaper natural gas.
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The Chapter 11 filing was made by FirstEnergy Solutions and FirstEnergy Nuclear Operating Co. The companies said they have over $550 million in cash and “sufficient liquidity to continue normal operations” while restructuring.
This move follows an attempt by FirstEnergy urging the Federal Government to use emergency powers to help it keep several struggling nuclear and coal-fired power plants operating, a move described by critics as a call for a corporate bailout.
The units in bankruptcy operate three nuclear power plants, two coal-fired plants, and gas-and-oil plant, and one pet-coke plant.
FirstEnergy had earlier said that it would shut several nuclear plants in Ohio and Pennsylvania over the next three years without Federal support. In November 2017, the company said that it would exit the competitive non-regulated power generation business.
Donald Schneider, President of FirstEnergy Solutions, said in announcing the filing: “The Chapter 11 filing represents our best path forward as we continue to pursue opportunities for restructuring, asset sales, and legislative and regulatory relief.”