FirstEnergy Needs a Bailout — Badly

The WV PSC now has another out of state corporation coming to it with a bailout plan.  As Century Aluminum tried to do, FirstEnergy is using the Harrison Power Station deal to get WV rate payers to bail it out of a financial mess of its own creation.

Keryn has been following FirstEnergy’s financial problems over at StopPATH WV.  Here is her latest:

Despite FirstEnergy’s desperate pleas for the WV Public Service Commission to approve the company’s transfer of coal plant assets from their unregulated (company financed) Ohio subsidiaries to West Virginia’s regulated (ratepayer financed) subsidiaries before early May, the PSC issued an order on Feb. 11 setting a procedural schedule that won’t hold hearings until the end of May.  A decision won’t come until several months later.  FirstEnergy needs to transfer these plants between their subsidiaries to raise over a billion dollars cash that the company desperately needs to pay down its debt.

It’s not “to help ensure reliable power for our Mon Power and Potomac Edison customers in West Virginia for many years to come,” it’s to raise desperately-needed corporate cash that West Virginia’s captive ratepayers will be stuck repaying for years to come.  Let’s at least be honest about it, shall we, FirstEnergy?

Not much has changed in the WV PSC case recently, but Keryn has links to information about how FirstEnergy’s financial situation continues to deteriorate, and how desperately FirstEnergy needs to force a 6% rate increase on Mon Power and Potomac Edison customers to pay for a scheme we don’t need.

As I have pointed out earlier, there is simply no reason to put the costs of 80% of the Harrison plant on WV rate payers when there are lots of other less expensive and less risky alternatives available.

The WV PSC stood firm with Century.  Now it needs to do the same with Ohio-based FirstEnergy.

One thought on “FirstEnergy Needs a Bailout — Badly

  1. This illustrates another example of the corporate attitude that profits are private and risks/losses are social. This situation cries out for selection of at least a part of the PSC in a publicly funded election with no outside monies allowed from individuals corporations PAC’s or social/political organizations with secret money.

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