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FirstEnergy settles with U.S. Ohio attorney, will pay $230 million

Christian Fernsby |
FirstEnergy announced that it has entered into an agreement with the U.S. Attorney's Office for the Southern District of Ohio to resolve the previously disclosed investigation.

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The deferred prosecution agreement has been filed in federal court.

Under the three-year deferred prosecution agreement, FirstEnergy has agreed to pay a penalty of $230 million, and has agreed to the government's filing of a single charge of conspiracy to commit honest services wire fraud.

The charge will be dismissed, provided FirstEnergy abides by all terms of the agreement. The payment of the $230 million fine will be split equally between the U.S. Treasury and the Ohio Development Service Agency for the benefit of Ohio utility customers.

The company expects to record a charge in this amount for the second quarter this year. This fine will not be recovered in rates or charged to customers.

From the onset of the investigation, as noted in the agreement reached with the U.S. Attorney's Office, FirstEnergy provided substantial cooperation with the investigation, including conducting a thorough internal investigation; proactively identifying issues and facts that would likely be of interest to the government; sharing information that would not have been otherwise available to the government; and making such material available to the government on an expedited basis.

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