FirstEnergy Announces Decisive Actions, Names Steven Strah Acting CEO

(RTTNews) - FirstEnergy Corp. (FE) Tuesday announced it is taking steps to resolve a range of regulatory proceedings affecting its Ohio utilities, including not to seek recovery of lost distribution revenue from residential and commercial customers authorized under its current Electric Security Plan through May 31, 2024.

FirstEnergy said it believes that pursuing an open and comprehensive dialogue with the Public Utilities Commission of Ohio and other key parties will benefit the company as it seeks to resolve a number of PUCO-led proceedings.

"We are taking a number of decisive actions to put our company on the right path forward," said Steven Strah, president and acting chief executive officer. "Our commitment to engaging constructively with our Ohio regulators and the decision to forego lost distribution revenue are important steps toward removing uncertainty about regulatory concerns in Ohio and positioning the company for long-term success."

The Board will form an independent committee and launch a robust and ongoing internal investigation. It will also remove five senior executives.

The Board named Steve Strah as Acting CEO. It also hired a Chief Legal Officer and established an Executive Director role.

Looking forward, FirstEnergy expects to report full-year 2020 adjusted earnings $2.39 per share. The company also expects to recognize a $0.15 per share charge in the fourth quarter of 2020 resulting from a settlement with the Ohio Attorney General and the cities of Cincinnati and Columbus regarding decoupling and the decision to not seek collection of lost distribution revenue.

Absent this charge, operating earnings in 2020 would have otherwise been expected to be $2.54 per share.