FirstEnergy Sells WV Transmission Assets for $1.2B

TL;DR

FE selling WV transmission assets to AEP for $1.2B, closing Q1 2025. Focus on regulated biz.

AI Summary

FirstEnergy Corp. announced on August 12, 2024, that it has entered into a definitive agreement to sell its West Virginia transmission assets to American Electric Power (AEP) for approximately $1.2 billion. This sale is part of FirstEnergy's strategy to exit its competitive generation business and focus on its regulated utility operations. The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals.

Why It Matters

This significant divestiture allows FirstEnergy to streamline its operations and focus on its core regulated utility business, potentially improving financial stability and strategic direction.

Risk Assessment

Risk Level: medium — The sale is subject to regulatory approvals, which introduces uncertainty regarding the completion and terms of the transaction.

Key Numbers

• $1.2B — Sale Price (Proceeds from the sale of West Virginia transmission assets to AEP.)
• Q1 2025 — Expected Closing (Anticipated timeframe for the completion of the asset sale.)

Key Players & Entities

• FirstEnergy Corp. (company) — Seller of assets
• American Electric Power (AEP) (company) — Buyer of assets
• $1.2 billion (dollar_amount) — Sale price of West Virginia transmission assets
• August 12, 2024 (date) — Date of definitive agreement
• first quarter of 2025 (date) — Expected closing date of the transaction

FAQ

Key Financial Figures

• $0.10 — ange on which registered Common Stock, $0.10 par value per share FE New York Stock E
• $19.5 million — Company will pay a settlement amount of $19.5 million to the OAG, to be used for purposes the

Filing Documents

• fe-20240812.htm (8-K) — 40KB
• ex991-oocicnpapressrelease.htm (EX-99.1) — 17KB
• ex992-oocicnpa.htm (EX-99.2) — 41KB
• fe-20240812_g1.jpg (GRAPHIC) — 3KB
• 0001031296-24-000046.txt ( ) — 247KB
• fe-20240812.xsd (EX-101.SCH) — 2KB
• fe-20240812_lab.xml (EX-101.LAB) — 21KB
• fe-20240812_pre.xml (EX-101.PRE) — 12KB
• fe-20240812_htm.xml (XML) — 3KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure On August 13, 2024, FirstEnergy Corp. (the "Company") issued a press release with respect to an agreement (the "Agreement") entered into between the Company and the Office of the Ohio Attorney General ("OAG") and the Office of the Summit County Prosecutor (the "Summit County Prosecutor"), which is more fully described below. A copy of this press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. The information set forth in and incorporated by reference into this Item 7.01 of this Current Report on Form 8-K is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing. The furnishing of this Item 7.01 of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information herein that is required to be disclosed solely by reason of Regulation FD.

01 Other Events

Item 8.01 Other Events As previously disclosed, the Company has been cooperating with the Ohio Organized Crime Investigations Commission (the "OOCIC") regarding the OOCIC's ongoing investigation surrounding Ohio House Bill 6 as passed by Ohio's 133rd General Assembly ("HB 6"). In February 2024, in connection with such investigation, an indictment by a grand jury of Summit County, Ohio was unsealed against the now-deceased, former chairman of the PUCO and two former senior officers of the Company, Charles E. Jones and Michael J. Dowling, charging each of them with several felony counts, including bribery, telecommunications fraud, money laundering and aggravated theft. Also, as previously disclosed, in September and October of 2020, the OAG and certain other parties filed complaints against several parties, including the Company, in State of Ohio ex rel. Dave Yost, Ohio Attorney General v. FirstEnergy Corp., et al. and City of Cincinnati and City of Columbus v. FirstEnergy Corp. (the "OAG Civil Matter") alleging, among other things, civil violations of the Ohio Corrupt Activity Act and related claims in connection with the passage of HB 6. On August 12, 2024 (the "Effective Date"), the Company entered into the Agreement with the OAG and the Summit County Prosecutor, which fully resolves, in each case with respect to the Company, both the OOCIC investigation and the OAG Civil Matter. The Agreement is furnished as Exhibit 99.2 hereto and incorporated herein by reference. Within five business days of the Effective Date, the Company will pay a settlement amount of $19.5 million to the OAG, to be used for purposes the OAG deems appropriate. In anticipation of finalizing the Agreement, and as previously disclosed in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the Securities and Exchange Commission on July 30, 2024, the Company previously recorded a loss contingency equal to $19.5 million in the second quarter of 2024.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits ( d) Exhibits Exhibit No. Description 99.1 FirstEnergy Corp. Press Release, dated August 13, 2024 99.2 Agreement between the Office of the Ohio Attorney General, the Office of the Summit County Prosecutor and FirstEnergy Corp. dated August 12, 2024 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) Forward-Looking Statements: This Form 8-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "forecast," "target," "will," "intend," "believe," "project," "estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following: the potential liabilities, increased costs and unanticipated developments resulting from government investigations and agreements, including those associated with compliance with or failure to comply with the Deferred Prosecution Agreement entered into July 21, 2021 with the U.S. Attorney's Office for the Southern District of Ohio; the risks and uncertainties associated with government investigations and audits regarding HB 6 and related matters, including potential adverse impacts on federal or state regulatory matters, including, but not limited to, matters re

View Full Filing

View this 8-K filing on SEC EDGAR