Now the wheels have come off FirstEnergy's poorly executed plan to dump antique coal-fired electricity plants on it's West Virginia customers.
Despite FirstEnergy's desperate pleas for the WV Public Service Commission to approve the company's transfer of coal plant assets from their unregulated (company financed) Ohio subsidiaries to West Virginia's regulated (ratepayer financed) subsidiaries before early May, the PSC issued an order on Feb. 11 setting a procedural schedule that won't hold hearings until the end of May. A decision won't come until several months later. FirstEnergy needs to transfer these plants between their subsidiaries to raise over a billion dollars cash that the company desperately needs to pay down its debt.
It's not "to help ensure reliable power for our Mon Power and Potomac Edison customers in West Virginia for many years to come," it's to raise desperately-needed corporate cash that West Virginia's captive ratepayers will be stuck repaying for years to come. Let's at least be honest about it, shall we, FirstEnergy?
Last week, Fitch cut FirstEnergy's ratings.
On Monday, FirstEnergy reported a loss for the fourth quarter.
Yesterday, FE's stock was downgraded.
Today, FirstEnergy announced a tender offer to buy back some of it's high interest rate debt. The scheme here is to offer a premium to holders of these high interest rate bonds FE issued so that they will sell their bonds back to the company. To finance this buy back, the company will borrow money at a lower interest rate than they would have paid the holders of these bonds.
Kind of reminds you of watching sick water buffalo flounder and drown, doesn't it?