8-KOther EventsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Corporate Update (Jan 20, 2006)

Filed January 20, 2006For Securities:FE

Summary

This Form 8-K filing from FirstEnergy Corp. (FE) on January 20, 2006, details a significant Deferred Prosecution Agreement (DPA) entered into by its wholly owned subsidiary, FirstEnergy Nuclear Operating Company (FENOC), with the U.S. Attorney's Office for the Northern District of Ohio and the Department of Justice. The DPA addresses certain statements made by FENOC employees to the Nuclear Regulatory Commission (NRC) concerning the Davis-Besse Nuclear Power Station between September 2001 and November 2001. Under the agreement, FENOC will pay a $28 million monetary penalty, a portion of which will fund community service projects, and has pledged continued cooperation with ongoing investigations. In return, the Department of Justice has agreed to refrain from initiating criminal prosecution against FENOC for the conduct described in the Statement of Facts.

Key Highlights

  • 1FirstEnergy Corp. subsidiary FENOC entered into a Deferred Prosecution Agreement (DPA) with the U.S. Department of Justice.
  • 2The DPA relates to statements made by FENOC employees to the NRC regarding the Davis-Besse Nuclear Power Station.
  • 3FENOC will pay a $28 million monetary penalty.
  • 4$4.35 million of the penalty is designated for community service projects.
  • 5The agreement requires FENOC's continued cooperation with criminal and administrative investigations.
  • 6The Department of Justice will not pursue criminal prosecution against FENOC for the specific conduct covered by the DPA.
  • 7The DPA has a term running through December 31, 2006.

Frequently Asked Questions

This filing reports that FirstEnergy Corp.'s subsidiary, FirstEnergy Nuclear Operating Company (FENOC), has entered into a Deferred Prosecution Agreement with the U.S. Department of Justice concerning statements made by employees to the Nuclear Regulatory Commission about the Davis-Besse Nuclear Power Station.

FENOC will pay a $28 million monetary penalty. This penalty is expected to reduce FirstEnergy's earnings per share by $0.09 in the fourth quarter of 2005. The penalty is not deductible for income tax purposes.

FENOC must cooperate with the U.S. Attorney's Office and the Department of Justice in all criminal and administrative investigations related to the conduct described in the Statement of Facts attached to the agreement. The agreement runs through December 31, 2006.

In exchange for FENOC's payment, cooperation, and acknowledgement of responsibility, the Department of Justice has agreed to refrain from initiating criminal prosecution against FENOC for the conduct described in the Statement of Facts.