FirstEnergy Soltions’ CEO Chuck Jones has said he believes board members for the company’s generation subsidiary will file for bankruptcy within the next month.
Jones said he expects FirstEnergy Solutions, the company’s competitive generation branch, to borrow up to $100 million by the end of next month to pay off a debt owed in April. Another debt of over 500 million is owed later this year.
“I expect that they will be removed from the unregulated money pool between now and the end of March, and that will be the last tie that we have with that business,” Jones said.
Jones also said he expects FirstEnergy Solutions to file bankruptcy by that time. “While I cannot speak for the unregulated business, I would be shocked if they go beyond the end of March without some type of filing,” Jones said.
The CEO said decisions about how to proceed with the many coal and nuclear plants it owns will be up to the leadership at the generation firm as well.
“It’s FES’ decision whether and how to bid in that upcoming [capacity] auction for the FES assets,” he said. “It would be Allegheny Energy Supply’s decision the same for the Pleasants Power Station, and it would be Mon Power’s decision for the assets that are of Mon Power’s.”
Jones was also quoted as saying he was disappointed they couldn’t secure funding for their struggling plants from the state or federal regulators. He said that without changes to wholesale power market regulations, coal and nuclear could disappear from the electricity market.