FirstEnergy reports $6.2 billion loss in 2016

Staff report

YOUNGSTOWN

FirstEnergy Corp. on Wednesday reported a full-year 2016 loss of $6.2 billion on revenue of $14.6 billion.

The Akron-based utility company said the loss reflects asset impairment and plant exit costs, including charges related to the company’s decision to exit competitive operations by mid-2018.

In 2015, the company reported earnings of $578 million on revenue of $15 billion.

“In 2016, we achieved our financial targets, made significant progress on our regulated growth plans, and began an important strategic review that is designed to support our transition into a fully regulated company,” said Charles E. Jones, FirstEnergy president and chief executive officer, in a statement. “We continue to focus on this transformation, which will allow us to best serve our customers while providing predictable growth to investors.”

For the fourth quarter of 2016, the asset impairment and plant exit costs resulted in a loss of $5.8 billion on revenue of $3.4 billion. These results compare with a fourth quarter 2015 loss of $226 million on revenue of $3.5 billion.

Jones said in Ohio the company has had “meaningful dialogue” with other utilities in the state and legislators “on solutions that can help ensure Ohio’s future energy security.”

Jones said the company’s top priority is to preserve the two FirstEnergy nuclear plants in the state. Legislation for a zero-emission nuclear program expected to be introduced soon, Jones said during a conference call with investors Wednesday.

“The ZEN program is intended to give state law makers greater control and flexibility to preserve valuable nuclear generation,” Jones said. “We are advocating for the two nuclear plants.”