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

New England and the East see spot power, gas prices drop

In what could be a sign of spring, New England and the rest of the East Coast finally saw their daily spot power prices drop well below $100/MWh and spot natural gas prices drop well below $10/mmBtu.

Perry nuclear power plant down for scheduled outage, transformer replacement

The 1,268-MW Perry Nuclear Power Plant in Ohio shut down for a scheduled refueling and maintenance outage in which a transformer replacement is also scheduled.

Follow Power Engineering on Twitter
Latest News
Alabama Public Service Commission OKs construction of renewable energy generation projects

Alabama regulators OK construction of renewable energy generation projects

In a 3-0 vote, the Alabama Public Service Commission approved a proposal from Alabama Power t...
NRC to increase oversight of Pilgrim nuclear power plant

NRC to increase oversight of Pilgrim nuclear power plant

The U.S. Nuclear Regulatory Commission (NRC) will increase its oversight of the 670-MW Pilgri...
Kettleman utility-scale solar project providing electricity to Silicon Valley city of Palo Alto

Kettleman utility-scale solar project powering city of Palo Alto

The Kettleman Solar Power Project in Kings County was built on about 264 acres of land on Hig...
Areva delivers reactor vessel head to Belgium nuclear power plant

Areva delivers reactor vessel head to Belgium nuclear power plant

Areva delivered a nuclear reactor vessel head to Electrabel for Unit 4 at the Doel nuclear po...
EPSA files brief with Supreme court on FERC demand response case

EPSA files brief with Supreme Court on FERC demand response case

The Electric Power Supply Association (EPSA) and a number of other parties filed a legal brie...
Southern Power, First Solar co-own California solar PV project

Southern Power, First Solar co-own California solar PV project

Southern Co. (NYSE: SO) unit, Southern Power, acquired a controlling stake in a 300-MW solar ...
EPA to opponents: Wait for the absolutely final Clean Power Plan, then attack

EPA to opponents: Wait for the absolutely final Clean Power Plan, then attack

Responding to an Aug. 13 notice of appeal from several states, including coal-reliant West Vi...
Global nuclear plant life extensions to decrease sixfold by 2025

Global nuclear plant life extensions to decrease sixfold by 2025

The capacity of nuclear power plants starting plant life extension (PLEX) programs will decre...
Power Engineering Current Issue
03/01/2015
Volume 119, Issue 3
1503pe-cover
Products Showcase
Areva delivers reactor vessel head to Belgium nuclear power plant

Areva delivers reactor vessel head to Belgium nuclear power plant

Areva delivered a nuclear reactor vessel head to Electrabel for Unit 4 at the Doel nuclear power plant in Belgium.

GE announces launch of latest aeroderivative gas turbine, LM6000-PF+

GE announces launch of latest aeroderivative gas turbine, LM6000-PF+

GE is launching its latest aeroderivative gas turbine, the LM6000-PF+, which employs technologies from four GE businesses, bringing power online faster and more efficiently than ever before.

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 | 2014 | 2015

Power Industry Wire News

President Obama's GLACIER Initiative Brings New Level of Visibility and Commitment to Sustainability and Reducing Climate Change; Dovetails Ideally With Irving A. Backman's Long-Term Fight to Reduce Global Warming

President Obama's GLACIER Initiative Brings New Level of Visibility and Commitment to S...

Nine Energy Service Acquires G 8 Oil Tool

Nine Energy Service Acquires G 8 Oil Tool

MCW Energy Group Reports on Production Progress of Its Environmentally-Friendly Oil Sands Extraction Plant in Asphalt Ridge, Utah

MCW Energy Group Reports on Production Progress of Its Environmentally-Friendly Oil San...

Global Well Completion Equipment Market to Grow at a CAGR of 11.45% by 2019: Radiant Insights, Inc

Global Well Completion Equipment Market to Grow at a CAGR of 11.45% by 2019: Radiant In...

Chemical Industry Webinar to Discuss $960 Billion in Potential Spending, an Industrial Info Event Announcement

Chemical Industry Webinar to Discuss $960 Billion in Potential Spending, an Industrial ...

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 >>