FirstEnergy

FirstEnergy Corp.
Company type	Public
Industry	Electric utility
Predecessor	Ohio Edison, Centerior Energy
Founded	November 7, 1997; 29 years ago in Akron, Ohio, United States
Headquarters	Akron, United States
Area served	Ohio, Pennsylvania, West Virginia, Virginia, Maryland, New Jersey, New York
Products	Electricity generation, transmission, distribution, energy management
Website	www.firstenergycorp.com

FirstEnergy Corp. is an electric utility company based in Akron, Ohio, established in 1997 through the merger of Ohio Edison and Centerior Energy. Its subsidiaries specialize in electricity generation, transmission, distribution, energy management, and related services. Comprising ten electric utility operating firms, it ranks among the largest investor-owned utilities in the United States, serving approximately 6 million customers throughout Ohio, Pennsylvania, West Virginia, Virginia, Maryland, New Jersey, and New York. The company’s generation arms manage over 16,000 megawatts of power capacity, while its distribution network extends beyond 194,000 miles. In 2018, FirstEnergy was positioned at number 219 on the Fortune 500 list based on revenue.

In November 2016, FirstEnergy transitioned to a fully regulated business model by withdrawing from the competitive power market.

On July 21, 2020, prominent officials including Ohio House Speaker Larry Householder and former GOP Chairman Matt Borges faced allegations of accepting $60 million in bribes from FirstEnergy. This was linked to securing $1.3 billion in advantages through Ohio House Bill 6, a central element of the Ohio nuclear bribery scandal. Following these events, FirstEnergy’s stock value experienced a significant decline. Subsequently, on July 22, 2021, the company was penalized with a $230 million fine—the largest criminal penalty ever imposed by the U.S. Attorney for the Southern District of Ohio—for its involvement in the scandal.

Electric companies

Ohio Edison (Northeastern Ohio)
Illuminating Company (Northeastern Ohio)
Toledo Edison (Northwestern Ohio)
Met-Ed (Eastern Pennsylvania)
Penelec (Central and Northern Pennsylvania)
Penn Power (Western Pennsylvania)
West Penn Power (Western and Central Pennsylvania)
Jersey Central Power & Light (Eastern and Northwestern New Jersey)
Mon Power (Northern West Virginia)
Potomac Edison (Western Maryland and West Virginia panhandle)

Ohio Edison

Originating in 1930 as a publicly traded holding company known as Ohio Edison Company (formerly OEC on the NYSE), it was created through the amalgamation of around 200 electric firms. By mid-century, it operated two utilities: Pennsylvania Power and Ohio Edison. The company continued until its 1997 merger with Centerior to form FirstEnergy.

Subsidiaries

Pennsylvania Power Company became part of Ohio Edison in 1944 and is currently one of FirstEnergy’s ten operating utilities.
In 1950, Ohio Edison merged with Ohio Public Service Company, retaining the Ohio Edison name. It continues to be a leading electricity provider in northeastern Ohio outside Cleveland.

Centerior

Centerior Energy Corporation (formerly CX on the NYSE), headquartered in Independence, Ohio, was established in 1986 by joining two public utilities. It operated as a publicly traded holding entity until its merger with Ohio Edison in 1997 to create FirstEnergy:

The Cleveland Electric Illuminating Company (CEI), which was publicly traded until 1986 before affiliating with Toledo Edison under Centerior. Founded in 1929, CEI was a key subsidiary of North American Company—an original member of the Dow Jones Industrial Average. CEI remains one of three power suppliers serving Greater Cleveland alongside Cleveland Public Power and Painesville Municipal Electric.
Toledo Edison Company (formerly TED on the NYSE) was publicly traded until it joined with CEI to form Centerior. It continues as the principal electricity provider for northwestern Ohio.

This corporate arrangement and strategic consolidation strengthened market presence and operational effectiveness across critical areas in Ohio and Pennsylvania, positioning FirstEnergy as a dominant utility provider within the sector.

GPU

General Public Utilities, once listed on the NYSE under the ticker GPU and based in Parsippany, New Jersey, operated as a publicly held utility holding company. In 1996, the company restructured into GPU, Inc., establishing GPU Energy to manage its trio of utility subsidiaries:

Jersey Central Power and Light (JCP&L), serving central and northwestern regions of New Jersey
Pennsylvania Electric Company (Penelec), covering northern and central Pennsylvania
Metropolitan Edison (Met-Ed), providing service in eastern and south-central Pennsylvania

The year 2001 saw FirstEnergy acquire GPU, thereby incorporating GPU’s utility operations into its own. This deal also included GPU's subsidiary MYR Group, a publicly traded firm specializing in the installation and maintenance of power lines and cellular towers.

GPU is historically noted for owning the Three Mile Island nuclear facility. In 1989, CEO Standley H. Hoch, previously associated with General Dynamics Corporation, emphasized cost-cutting measures and actively supported repealing the restrictive Public Utility Holding Company Act of 1935 to facilitate interstate utility operations.

Allegheny Energy

Allegheny Energy provided electric services across Pennsylvania, West Virginia, Virginia, and Maryland through its regulated subsidiaries: West Penn Power (serving southwestern and central Pennsylvania), Monongahela Power (“Mon Power,” covering northern and southern West Virginia), and The Potomac Edison Company (operating in western/central Maryland, parts of eastern West Virginia, and northern Virginia). Its power plants were managed by Allegheny Energy Supply Company alongside Monongahela Power.

Initially known as Allegheny Power System, the company rebranded to Allegheny Power in 1996. A planned 1997 merger with Pittsburgh-based Duquesne Light Company was ultimately abandoned. In 1999, Allegheny expanded its footprint by acquiring West Virginia Power from UtiliCorp United.

In February 2010, Allegheny Energy announced a merger agreement with FirstEnergy that received approval from shareholders and regulators across several states. The transaction was completed on February 25, 2011; however, Allegheny’s service territory in Virginia was divested to local electric cooperatives.

Following this merger, FirstEnergy briefly held the position as the largest investor-owned electric utility by customer count before further consolidations occurred within the industry involving Exelon/Constellation and Duke Energy/Progress Energy.

FirstEnergy Formation

FirstEnergy was founded on November 7, 1997, through Ohio Edison’s acquisition of Centerior Energy and its subsidiaries for $1.6 billion in stock. The acquisition intended to streamline operations and reduce costs via workforce reductions. Concurrently, the Public Utilities Commission of Ohio (PUCO) initiated an inquiry into FirstEnergy’s transmission reliability amid potential plant closures and previous challenges inherited from Centerior.

Subsequent mergers

In 2001, FirstEnergy combined with GPU, Inc., which owned Jersey Central Power & Light, Pennsylvania Electric Company (Penelec), and Metropolitan Edison Company (Met-Ed). A decade later, in 2011, FirstEnergy merged with Allegheny Energy, significantly broadening its market presence and operational scope within Pennsylvania.

Bankruptcy of FirstEnergy Services Corp. and Establishment of Energy Harbor Corp.

FirstEnergy Services Corp., founded in 1997 to manage internal corporate functions such as subsidiary operations and financial dealings, experienced multiple mergers and rebrandings, ultimately becoming FirstEnergy Solutions Corp. in 2001.

On March 31, 2018, FirstEnergy Solutions Corp. filed for bankruptcy protection, while FirstEnergy Corp. remained financially stable. This bankruptcy drew significant attention due to its consequences for the U.S. electricity industry and its legal significance concerning FERC-regulated power purchase agreements.

Following the submission of its eighth amended bankruptcy plan in October 2019, FirstEnergy Solutions emerged from bankruptcy in 2020 under the new name Energy Harbor Corp., incorporated in Delaware and registered as a foreign corporation operating in Ohio. Meanwhile, FirstEnergy Solutions Corp. continues to exist legally but is no longer conducting business activities.

In May 2023, FirstEnergy streamlined its operations by vacating its longtime offices in Downtown Akron and Brecksville, consolidating corporate functions at its West Akron campus to enhance efficiency and reduce expenses.

Announced Power Plant Shutdowns and Financial Support Measures

In March 2018, FirstEnergy revealed intentions to shut down the Perry Nuclear Generating Station and Davis–Besse Nuclear Power Station in Ohio, along with the Beaver Valley Nuclear Power Station located in Pennsylvania. Later, in August 2018, the company announced plans to close two coal-fired power plants: Ohio’s W.H. Sammis Power Plant and Pennsylvania’s Bruce Mansfield Power Plant by June 2022.

These shutdown plans were reversed in July 2019 after Ohio enacted legislation providing subsidies to sustain the Perry and Davis–Besse nuclear facilities.

Corruption Investigation

On July 21, 2020, Ohio House Speaker Larry Householder, former Ohio Republican Party Chairman Matt Borges, among others, were charged with accepting $60 million in bribes from FirstEnergy in exchange for securing $1.3 billion in benefits through Ohio House Bill 6. This legislation increased electricity rates to finance a $150 million annual bailout supporting the Perry and Davis–Besse nuclear plants, owned by Energy Harbor (formerly FirstEnergy Solutions). The announcement of these arrests caused a sharp decline in FirstEnergy’s stock value. The company denied any wrongdoing. In response, lawmakers moved swiftly to repeal H.B. 6.

Multiple organizations called for revocation of FirstEnergy’s corporate charter. On October 29, 2020, the company’s Independent Review Committee announced executive leadership changes, including the immediate dismissal of CEO Charles E. Jones and two other senior officials due to policy breaches. Steven E. Strah, then serving as President, was appointed Acting CEO.

On July 22, 2021, regulatory authorities imposed a $230 million fine on FirstEnergy for its involvement in the scandal.

The controversy also affected FirstEnergy’s prominent naming rights agreement with the Cleveland Browns for FirstEnergy Stadium. Initially secured through 2029, Cleveland City Council passed a resolution in June 2022 urging FirstEnergy to relinquish these rights. While no immediate changes occurred then, on April 13, 2023, both parties mutually agreed to terminate the contract, restoring the stadium’s original name.

COVID-19 pandemic

Amid the COVID-19 pandemic in March 2020, FirstEnergy suspended power disconnections and reconnected customers who had previously lost service due to unpaid bills. The company urged those experiencing financial difficulties to reach out for alternative payment arrangements or energy assistance programs available through its ten utility operations across six states.

Intent to exit non-regulated business

In November 2016, FirstEnergy revealed its intention to withdraw from competitive power markets and transition into a fully regulated utility within a year and a half. Its competitive arm, FirstEnergy Solutions Corp., operated 13,000 MW of generating capacity and served residential, commercial, and industrial clients throughout the Northeast, Midwest, and Mid-Atlantic regions. The plan included divesting or retiring certain generation assets.

By August 2017, concerns regarding the financial stability of FirstEnergy Solutions emerged when Murray Energy’s CEO cautioned about potential bankruptcy without federal subsidies for coal-fired plants. The Federal Energy Regulatory Commission (FERC) dismissed a Department of Energy proposal in January 2018 aimed at supporting coal and nuclear facilities. Following this, FirstEnergy Solutions filed for Chapter 11 bankruptcy protection on March 31, 2018, requesting federal assistance under Section 202(c) of the Federal Power Act to continue plant operations.

At the start of 2018, FirstEnergy disclosed intentions to sell or shut down several power stations: Pleasants Power Station in West Virginia (February), along with the Beaver Valley, Davis-Besse, and Perry nuclear plants located in Ohio and Pennsylvania’s deregulated markets (March).

The company’s electricity generation portfolio is predominantly composed of coal and nuclear plants, supplemented by natural gas, oil-fired units, and hydroelectric resources.

Environmental record

A 2017 study conducted by the University of Massachusetts Amherst placed FirstEnergy ninth among the largest greenhouse gas emitters in the United States.

In 2008, FirstEnergy agreed to pay $1.5 billion by 2011 to resolve a lawsuit filed by the U.S. Environmental Protection Agency for failing to install required pollution control technology during upgrades at coal-fired plants. This settlement compelled the installation of significant emissions controls at Sammis generation station and other facilities to address New Source Review violations.

To promote cleaner energy alternatives, FirstEnergy launched several initiatives in 2009: converting Units 4 and 5 at its R.E. Burger Power Station in Ohio from coal to biomass—the sole base-load renewable resource replacing coal emissions; trialing carbon capture retrofit technology at R.E. Burger; completing construction of the 707 MW Fremont Energy Center natural gas peaking plant by 2010; and securing development rights for a large compressed air energy storage facility in Norton, Ohio. This Norton project received commendation from Ohio’s governor as part of FirstEnergy’s climate strategy and has potential expansion up to 2,700 MW—the largest globally—facilitating integration of intermittent renewables such as wind power.

These efforts have lowered FirstEnergy’s carbon dioxide emissions to approximately one-third below regional averages.

FirstEnergy Solutions Corp. has also provided renewable energy certificates to offset electricity consumption during Earth Day events held at various educational institutions across multiple states, supporting environmental sustainability initiatives.

Following Ohio’s 2008 energy efficiency legislation requiring utilities to reduce electricity consumption by 22% from 2009 levels by 2025, FirstEnergy imposed surcharges on companies that did not invest in efficiency improvements while exempting industries utilizing waste heat for power generation from these charges.

By late 2012, FirstEnergy discontinued lobbying activities aimed at weakening this energy efficiency mandate, indicating adherence to regulatory obligations.

Little Blue Run

FirstEnergy encountered numerous legal challenges due to the disposal of more than 20 billion gallons of coal combustion waste into Little Blue Run Lake, located across West Virginia and Pennsylvania. This practice led to contamination of surrounding water sources with hazardous substances such as arsenic, sulfates, sodium, calcium, magnesium, and chloride. As the largest coal ash containment site in the United States, the lake served as the repository for slurry waste generated by FirstEnergy's Bruce Mansfield Power Plant beginning in 1974.

In 2012, a consent decree issued by the Pennsylvania Department of Environmental Protection required FirstEnergy to halt all waste dumping activities by 2016. The agreement also imposed an $800,000 fine on the company, mandated the provision of clean water supplies to affected communities, and compelled ongoing monitoring for toxic elements including selenium, boron, and arsenic. This environmental controversy had a profound effect on FirstEnergy's regulatory standing and public reputation.

Executives

From 2015 until his dismissal in October 2020, Charles E. Jones held the roles of president and CEO at FirstEnergy. Following his departure, Steven E. Strah assumed the position of acting CEO until his retirement in September 2022. Subsequently, John Somerhalder took over as interim CEO and served until June 2023.

On March 27, 2023, FirstEnergy revealed that Brian X. Tierney—previously an executive at American Electric Power—would become its new president and CEO effective June 1, 2023. This leadership change is intended to bolster FirstEnergy’s strategic direction and enhance its operational effectiveness.

Notable accidents and incidents

The Northeast blackout of 2003 was primarily caused by FirstEnergy’s inadequate vegetation management near high-voltage power lines in Ohio. Tree branches made contact with sagging lines under conditions of heat and heavy electrical load, triggering flashover events.
In 2005, the Nuclear Regulatory Commission identified two separate occurrences at Davis–Besse among the top five incidents most likely to have precipitated a nuclear catastrophe if compounded by subsequent failures.
On January 20, 2006, FirstEnergy acknowledged concealing significant safety breaches at Davis–Besse and entered into a plea agreement with the U.S. Department of Justice, thereby avoiding federal prosecution. The company was fined $23 million and contributed an additional $5 million toward alternative energy research initiatives and Habitat for Humanity projects to offset investigation expenses. Three former employees faced indictments for misleading Nuclear Regulatory Commission inspectors by hiding corrosion damage on the reactor pressure vessel; each individual confronted potential sentences of up to 25 years imprisonment.
In 2011, a veteran employee with two decades of service was fatally electrocuted during an unsafe procedure mandated by a supervisor. Legal actions were brought against FirstEnergy and Ohio Edison alleging intentional tort due to removal of a safety guard.

External links