Akron’s FirstEnergy Shows Profits, Facing Ongoing Investigations
FirstEnergy Corp. reported a profitable third quarter, raised its financial outlook for the remainder of the year, and continues to resolve issues related to the ongoing House Bill 6 scandal investigation, including through settlement talks with regulators of States.
Akron’s utility also announced it has hired a new senior executive who will oversee state and federal regulatory matters.
FirstEnergy said it earned $ 463 million, or 85 cents per share, on revenue of $ 3.1 billion for the quarter ending September 30. That compares to net income of $ 454 million, or 84 cents a share, on revenue of $ 3 billion a year ago.
Adjusted earnings were 82 cents per share, which FirstEnergy said was above its previous forecast range. FirstEnergy reported adjusted earnings of 84 cents per share for the third quarter of 2020.
FirstEnergy posts “solid results”
FirstEnergy released its results after the market closed on Thursday. The company has scheduled a conference call with industry analysts for Friday morning.
âOur strong operational performance and the implementation of client-focused strategies continue to deliver strong results,â said Steven E. Strah, President and CEO of FirstEnergy, in a press release. âOver the past 12 months, we’ve made significant strides in resolving legacy issues, transforming our culture, and creating a world-class ethics and compliance program. Our relentless focus in these areas has helped address the significant weakness in internal controls associated with our tone at the top. While this is an important milestone, we will continue to drive these cultural changes and create a positive and lasting momentum while improving our service to customers and supporting a smarter, cleaner electricity grid. “
FirstEnergy said it expects annual net income of $ 1.17 to $ 1.22 billion, or $ 2.14 to $ 2.24 per share. It raised its adjusted earnings forecast from $ 2.55 to $ 2.65 per share, up from the previous forecast from $ 2.40 to $ 2.65 per share.
Investigations on Bill 6 continue
FirstEnergy continues to address issues related to ongoing federal and state investigations into the $ 61 million House Bill 6 / Larry Householder racketeering and corruption scandal.
FirstEnergy executives said in a statement the utility continues to “take a collaborative approach in Ohio” on regulatory issues, is in settlement talks with “a wide range of parties” in cases before the Commission of Ohio Utilities, and “is making progress on various Ohio audits.”
FirstEnergy also said it continues to seek equity capital and is considering selling a minority stake in FirstEnergy Transmission. The utility said it plans to provide 2022 guidance and a detailed investment plan in its current fourth quarter.
For the first nine months of 2021, FirstEnergy reported net income of $ 856 million, or $ 1.57 per share, on revenue of $ 8.5 billion. For the same nine-month period in 2020, FirstEnergy reported net income of $ 837 million, or $ 1.54 per share, on revenue of $ 8.3 billion.
Hiring of a new vice-president
FirstEnergy announced that it has hired Camilo Serna, a veteran electric utility executive, as vice president, tariffs and regulatory affairs, effective November 8.
Cerna succeeds the former vice president, tariffs and regulatory affairs of FirstEnergy, who in May was “separated” from the company “because of this individual’s inaction on a previously alleged consultancy deal. disclosed, “the company said in a regulatory filing with the Securities and Exchange Commission. The file did not specify.
Serna will be responsible for state and federal regulatory affairs, rate design and revenue requirements, as well as electrical load research and forecasting, the utility said, and will report to Jon Taylor, senior vice president. , chief financial officer and strategy.
Serna was most recently vice president of regulatory affairs for DTE Energy. He previously worked for Eversource Energy and other related utilities and consulting firms.
Jim Mackinnon covers breaking news and business. He can be reached at 330-996-3544 or email@example.com. Follow him @JimMackinnonABJ on Twitter or at www.facebook.com/JimMackinnonABJ.