8-KRegulation FD

FIRSTENERGY CORP 8-K Report, Regulation FD Disclosure (Jul 22, 2024)

Filed July 22, 2024For Securities:FE

Summary

FirstEnergy Corp. (FE) has filed a Current Report on Form 8-K to disclose a status report filed by the U.S. Attorney's Office for the Southern District of Ohio (USAO) regarding the company's Deferred Prosecution Agreement (DPA). The USAO acknowledged that FirstEnergy has successfully completed its primary obligations under the three-year DPA, which stemmed from an investigation into Ohio House Bill 6. This marks a significant milestone as the company moves towards the conclusion of this chapter. While most reporting and specific compliance obligations under the DPA will cease by August 21, 2024, FirstEnergy will continue to be bound by certain remaining provisions. These include ongoing cooperation with the USAO in related investigations, quarterly publication of payments to specific entities, adherence to statements accepting responsibility, and notification of corporate form changes. The DPA is expected to be dismissed once all related investigations and proceedings are concluded and FirstEnergy fulfills its remaining obligations.

Key Highlights

  • 1FirstEnergy has successfully completed its core obligations under the three-year Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office (USAO).
  • 2The USAO's status report acknowledges FirstEnergy's remedial measures and compliance program implementation.
  • 3Most DPA reporting and specific compliance obligations will conclude by August 21, 2024.
  • 4FirstEnergy will continue to cooperate with the USAO on ongoing investigations related to the HB 6 conduct.
  • 5The company must still publish quarterly lists of payments to 501(c)(4) entities or those benefiting public officials.
  • 6FirstEnergy must refrain from making statements that contradict its acceptance of responsibility.
  • 7The criminal information is expected to be dismissed upon the conclusion of all related investigations and proceedings and fulfillment of remaining DPA obligations.

Frequently Asked Questions

This 8-K filing is to report on a status update provided by the U.S. Attorney's Office (USAO) regarding FirstEnergy's Deferred Prosecution Agreement (DPA). The USAO has acknowledged that FirstEnergy has largely fulfilled its obligations under the DPA.

No, while most reporting and specific compliance obligations under the DPA will end by August 21, 2024, FirstEnergy will remain subject to certain remaining provisions. These include continued cooperation with the USAO, quarterly publication of payments, adherence to statements of responsibility, and notification of corporate form changes, which will continue until related investigations and proceedings are concluded.

The DPA is related to the U.S. Attorney's Office's investigation surrounding Ohio House Bill 6 (HB 6), which involved alleged misconduct by former Ohio House Speaker Larry Householder and associated individuals and entities.

The initial $230 million penalty was paid in 2021 and was not to be recovered in rates or charged to customers, nor was a tax deduction sought. While ongoing cooperation and certain reporting are required, the filing indicates that the major obligations have been met, suggesting that significant new financial penalties directly stemming from the completion of these DPA obligations are not explicitly detailed, though continued cooperation could involve future indirect costs.