Government Energy Policy, Business and Technology

FirstEnergy Solutions bankruptcy could shed light on affiliate dealings

Energy News Network: The bankruptcy of FirstEnergy’s coal and nuclear subsidiaries could shed new light on the relationships among the parent corporation, its regulated utilities and the generation affiliates.

The ties between FirstEnergy’s various businesses will likely face scrutiny during the case to decide how its generation subsidiaries will satisfy their debts and what happens to the businesses, according to legal and utility experts.

“This will be one of the major points of contention in front of the bankruptcy court,” said Dick Munson, director of Midwest Clean Energy for the Environmental Defense Fund. “And that is how much of FirstEnergy Solutions’ debts can the creditors go after the parent company for.”

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