FirstEnergy SEC Filing Suggests Improper Transactions Started 10 Years Ago
FirstEnergy has filed a report with the Securities and Exchange Commission saying it has identified improper transactions that date back as far as 10 years ago. The large electric company says these transactions include amounts collected from customers.
FirstEnergy's latest report with the SEC says an internal investigation identified certain transactions that were either "improperly classified, misallocated to certain of the [sic] Utilities and Transmission Companies, or lacked proper supporting documentation."
The report does not provide any more specifics but says the transaction resulted in "amounts collected from customers that were immaterial to FirstEnergy."
The SEC filing also revisits a $4 million payment to end a consulting agreement with a company associated with an individual who went on to become a state regulatory official. Public Utilities of Ohio chair Sam Randazzo resigned after speculation that he was the official in question.
FirstEnergy's report now says payments under the consulting agreement may have been for purposes "other than those reported."
A federal bribery investigation says a utility, believed to be FirstEnergy, funneled millions of dollars to a dark money group that was controlled by former House Speaker Larry Householder (R-Glenford). Investigators say that money was used to help Householder become speaker, and in return, he would pass HB6, a nuclear power plant bailout bill.
Two defendants and the dark money group Generation Now have pleaded guilty to federal racketeering charges. Householder has pleaded not guilty and remains in the Ohio legislature after winning reelection this fall.
Billionaire investor Carl Icahn has signaled an interest in making a large purchase of shares in First Energy.
During the earnings call, the company received a Tuesday letter citing Icahn Capital LP's interest in purchasing as many as $920 million voting shares, depending on market conditions.
A message seeking comment was left with Icahn.