FirstEnergy Considering "Alternatives" For FirstEnergy Solutions Retail Exit, But Don't Expect Announcement Soon, CEO Says

FirstEnergy Corp. will consider "alternatives" for the retail supply business of FirstEnergy Solutions as part of its decision (first reported yesterday) to exit its competitive businesses by mid-2018, but FirstEnergy Corp. CEO Charles Jones told investors not to expect any announcement on the FES retail business in the near future

Initially in announcing the mid-2018 deadline for exiting the competitive businesses, FirstEnergy said that such exit may include:

• Legislative or regulatory solutions for generation assets that recognize their environmental or energy security benefits,

• Additional asset sales and/or plant deactivations,

• Restructuring FirstEnergy Solutions debt with its creditors, and/or

• Seeking protection under U.S. bankruptcy laws for FES and possibly FirstEnergy Nuclear Operating Company.

During an earnings call, Jones more specifically addresses the disposition of the FES retail supplier business, stating, "We continue to assess and evaluate a number of strategic alternatives for our competitive business, including asset sales, legislative or regulatory initiatives for generation that recognizes environmental or energy security benefits, alternatives for our retail business, and financial restructuring."

Asked about more details concerning the stated "alternatives" for the FES retail business under consideration, Jones stressed that any decision would be made by the FES board, but said concerning the competitive business segment generally that, apart from potential asset sales of the West Lorain and Buchanan plants, "I don't think you should expect any announcements in the near future."

FES's retail business currently serves about 1.1 million customers, down from 1.6 million as of December 31, 2015.