January 21, 2017 7:40 PM ET

Electric Utilities

Company Overview of FirstEnergy Solutions Corp.

Company Overview

FirstEnergy Solutions Corp., together with its subsidiaries, provides energy-related products and services to retail and wholesale customers. The company owns, leases, operates, and maintains fossil and hydroelectric generation facilities, as well as owns nuclear generation facilities. It offers its products and services primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey, and Maryland. The company was founded in 1997 and is based in Akron, Ohio. FirstEnergy Solutions Corp. operates as a subsidiary of FirstEnergy Corp.

76 South Main Street

Akron, OH 44308

United States

Founded in 1997

125 Employees

Phone:

800-736-3402

Key Executives for FirstEnergy Solutions Corp.

Principal Executive Officer, President and Director
Age: 54
Chief Financial Officer and Executive Vice President
Age: 62
Chief Legal Officer and Executive Vice President of Markets
Age: 57
Controller and Treasurer
Age: 35
Vice President of Fuel and Unit Dispatch
Compensation as of Fiscal Year 2016.

FirstEnergy Solutions Corp. Key Developments

NOPEC Settles its Legal Claim for $5.4 Million Electric Contract with FirstEnergy Solutions

FirstEnergy Solutions paid the Northeast Ohio Public Energy Council $5.4 million to get out of its contract supplying power at discounted rates to about 500,000 customers represented by NOPEC. NOPEC had demanded $86.6 million from First-Energy Solutions when contract talks broke down in October and the company canceled the contract, effective Dec. 31. The enormous sum was money it had a right to under the terms of its contract with the company, NOPEC’s lawyers argued in filings before a Summit County Common Pleas Court. The company on Oct. 28 had gone to court seeking an emergency restraining order two days after NOPEC tried to draw on the $86.6 million 'irrevocable non-transferable standby letter of credit' which the company had established with the Bank of Nova Scotia and given NOPEC the year before.

FirstEnergy Solutions To Sell Ohio Power Plants

FirstEnergy Solutions Corp. is planning to close or sell power generation units at the two coal-fired power plants located in Ohio. FirstEnergy Solutions may sell or close 136MW unit 1 at the Bay Shore power plant in Oregon, Ohio by October 2020 and units 1-4, each with 180MW of capacity, at the W.H. Sammis Plant in Stratton, Ohio in May 2020.

FirstEnergy Solutions Corp. Enters into Unit Power Agreement

On April 1, 2016, FirstEnergy Solutions Corp. (FES), and its affiliates Ohio Edison Company (OE), The Cleveland Electric Illuminating Company (CEI), and The Toledo Edison Company (TE and together with OE and CEI, the Ohio Companies) entered into a Unit Power Agreement (PPA). Each of FES, OE, CEI and TE are direct, wholly owned subsidiaries of FirstEnergy Corp. (Company). Under the terms of the PPA, the Ohio Companies will purchase 100% of FES' rights to the output of the 2,220 Megawatt (MW) W. H. Sammis Plant (Sammis), rights to the output of the 908 MW Davis-Besse Nuclear Power Station (Davis-Besse) and 4.85% entitlement under the Ohio Valley Electric Corporation Amended and Restated Inter-Company Power Agreement (OVEC ICPA and together with Sammis and Davis-Besse, the Facilities), together with the associated energy, capacity, ancillary services and environmental attributes, as such terms are defined in the PPA, of the Facilities. The rights and obligations of the Ohio Companies under the PPA, including payment and indemnification obligations, are several and not joint. Each Ohio Companies' several pro rata obligations under the PPA will be updated annually based on each Ohio Companies' average of the coincident MW peaks, including distribution losses, on the American Transmission Systems, Incorporated system from the months of June through September of the prior year. The PPA has a term of eight years over a delivery period commencing June 1, 2016, and ending May 31, 2024. During such delivery period, the Ohio Companies will offer capacity from the Facilities into the capacity markets of PJM Interconnection, L.L.C. (PJM). The Ohio Companies will also schedule and dispatch energy and ancillary services from the Facilities. As the entities entering into transactions for the Facilities in the PJM markets, PJM will charge the Ohio Companies any performance charges or penalties assessed by PJM under the PJM Open Access Transmission Tariff (PJM Tariff). In exchange for the rights to the output of the Facilities over the term of the PPA, the Ohio Companies will make monthly payments to FES comprised of the costs, expenses, and capital investment necessary to operate and maintain the Sammis and Davis-Besse plants, specifically, as set forth in the PPA, fuel expenses, operation and maintenance expenses, depreciation expenses, a capacity payment reflecting FES' invested capital and a tax reimbursement payment, and FES' allocation of costs or charges related to its OVEC ICPA entitlement interest. The Ohio Companies will have the right to review and comment on FES' annual capital expenditures plan scheduled to be performed at Sammis and Davis-Besse. The PPA is unit contingent and in the event of an outage at any of the Facilities, FES will be responsible for providing replacement capacity, and all energy and ancillary services associated with such replacement capacity to the Ohio Companies, but only after 180 consecutive days of unavailability in the case of an outage that could not have been prevented through the exercise of good utility practice, as defined in the PPA, or for an outage of any duration if FES could have prevented the outage through the exercise of good utility practice. During such periods of unavailability, FES is also responsible for providing replacement environmental attributes of the same character and amount as it would have provided in relation to the applicable Facility. In the event that capital expenditures would render a Facility to be uneconomic, FES and the Ohio Companies will either replace the Facility's output of energy, capacity, ancillary services and related energy products and environmental attributes or remove the Facility from the PPA and reduce FES' obligations under the PPA to reflect the removal of the Facility.

Similar Private Companies By Industry

Company Name Region
3 Phases Renewables, LLC United States
Abacus Resources Energy, LLC United States
Access Energy, LLC United States
Adams Electric Cooperative, Inc. United States
Adams-Columbia Electric Cooperative United States

Recent Private Companies Transactions

Type
Date
Target
Bankruptcy
October 24, 2016
Empire Schuylkill, L.P.
 

The information and data displayed in this profile are created and managed by S&P Global Market Intelligence, a division of S&P Global. Bloomberg.com does not create or control the content. For inquiries, please contact S&P Global Market Intelligence directly by clicking here.

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
Lawyers Committee for Civil Rights Under Law United States
Bertelsmann AG Europe
Bloomberg L.P. United States
The Advertising Council, Inc. United States
Rush University United States

Sponsored Financial Commentaries

Sponsored Links

Request Profile Update

Only a company representative may request an update for the company profile. Documentation will be required.

To contact FirstEnergy Solutions Corp., please visit www.fes.com. Company data is provided by S&P Global Market Intelligence. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.