Seems like these guys are on the chopping block or up for sale.
Power plants weigh down FirstEnergy's earningsJuly 28, 2016 6:12 PM
RTO-getting out of the dog merchant plant side. Is it including the Nukes? Now because of cheap and cheaper natural gas the free market sucks?The company lost $1.1 billion in the second quarter, or $2.56 per share, compared with net income of $187 million or 44 cents per share, during the second quarter of 2015.
FirstEnergy is the parent of several electric utilities in Pennsylvania, including West Penn Power, and owner and operator of the Bruce Mansfield coal plant and the Beaver Valley nuclear plant in Beaver County.
The results for the quarter included $1.5 billion impairment charges. The largest chunk of that was a write-down of $800 million in the value of the company's competitive energy services business. The balance stemmed from company's decision to close several Ohio coal plants and sever a coal contract associated with those plants.
"We have made difficult but necessary decisions to address the continuing impact of challenging market conditions on our competitive business," FirstEnergy's president and CEO Chuck Jones said in a statement.
The company announced last week that it would close four units at its large W. H. Sammis coal plant and shutter or sell the Bay Shore power plant, both in Ohio, because low power prices could not sustain them.
FirstEnergy Posts $1.1B Loss, Eyes Exit from Merchant GenerationBy Ted Caddell
FirstEnergy on Friday posted a $1.1 billion second-quarter loss, much of it related to the pending closure of five coal-fired units, and CEO Chuck Jones said the company will not make any large investments to prop up its merchant generation business credit rating.
“We do not see baseload generation as a good fit for our company,” Jones said during a call with analysts on Friday. The company will not rule out “the possible sale or deactivation” of additional units as wholesale energy prices continue to languish, he said.
The losses make the outcome of the company’s two-year struggle with the Public Utilities Commission of Ohio to garner guaranteed income for its generators that much more critical....