FirstEnergy tells analysts, investors it's getting its act together

26 March 2004 - FirstEnergy Corp. of Akron said it's getting its act together -- and Thursday it took that message on the road.

"We've made a lot of changes to this organization in the past six to eight months," Chief Executive Officer Anthony J. Alexander told analysts and investors.

After a tumultuous year marked by a major blackout, restated earnings and the death of CEO H. Peter Burg, FirstEnergy is focusing on strengthening its core operations, building "bench strength" in management, paying down debt and restoring its good name and investment grade ratings, Alexander said.

The FirstEnergy presentation was part of a global energy and electricity conference held in New York City and sponsored by Morgan Stanley, a major investment banking firm.

Alexander said FirstEnergy's business plan "essentially remains unchanged," although somewhat "less complex" and more focused on the basics than in the past.

Its short-term priorities include the successful restarting of the troubled Davis-Besse nuclear power plant, which went online briefly two weeks ago only to shut down again because of a valve leak. Alexander said the plant is in the midst of the restarting process and is expected to begin adding power to the electrical grid next week.

Another immediate priority is the passage of a rate stabilization plan FirstEnergy has proposed to state regulators. Under its plan, customers would keep paying the same electricity rates from 2006 through 2008 to avoid price spikes in an open market. The state is set to move to a deregulated electricity market after 2005, but the Akron-based utility says competition won't have developed sufficiently by then.

Opponents say state regulators should make drastic changes to FirstEnergy's plan. The Public Utilities Commission of Ohio is assessing the plan.

Financially, FirstEnergy wants to continue to pay down its debt, and may do that in part by selling non-core assets, Alexander said.

The company is in the midst of seeking a new chief operating officer, the position vacated by Alexander when he became chief executive on Burg's death earlier this year. Alexander said he expects the company to name a new COO this summer.

Alexander confirmed that the National Electric Reliability Council recently completed an audit of FirstEnergy but said he hadn't been briefed on the outcome of the inspection.

Sponsored by FLSmidth

Related Articles

FirstEnergy returns Perry to service after unplanned outage

The FirstEnergy (NYSE: FE) Perry nuclear plant in Ohio was returned to service Oct. 26 after an unplanned outage that occurred Oct. 20.

Perry nuclear power plant shuts down after feedwater loss

The Perry nuclear power plant in Ohio automatically shut down after the loss of feedwater.

Follow Power Engineering on Twitter

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

Rockdale Resources Enhances Operations, Implements Cost Reductions and Changes Board Composition

Rockdale Resources Enhances Operations, Implements Cost Reductions and Changes Board Co...

Cardinal Energy Group, Inc.: Bradford Lease Drilling Report

Cardinal Energy Group, Inc.: Bradford Lease Drilling Report

MDU Places Dakota Natural Gas Pipeline on Hold, an Industrial Info News Alert

MDU Places Dakota Natural Gas Pipeline on Hold, an Industrial Info News Alert

Top Industrial Market News Stories for the Third Week of December 2014, an Industrial Info News Alert

Top Industrial Market News Stories for the Third Week of December 2014, an Industrial I...

American Leisure Holdings, Inc. Reports on Wholly Owned Subsidiary Financials

American Leisure Holdings, Inc. Reports on Wholly Owned Subsidiary Financials

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>