FirstEnergy looking for U.S. help to save its power plants

|About: FirstEnergy Corp (FE)|By:, SA News Editor

FirstEnergy (FE -1.9%) is lower, as better than expected Q1 earnings are still down 37.5% Y/Y, hurt by new distribution rates, lower depreciation expense and increased transmission revenues, as well as lower capacity revenue in the competitive business.

FE issued upside guidance for Q2 and FY 2017 earnings, seeing Q2 EPS of $0.55-$0.65 vs. $0.59 analyst consensus estimate and full-year EPS of $2.70-$3.00 vs. $2.77 consensus.

In today's earnings conference call, CEO Chuck Jones said the outcome of a U.S. Department of Energy study into whether the emphasis on the lowest price in regional wholesale power markets is driving old coal and nuclear plants into retirement will be critical to whether FE's power plant subsidiary continues to generate power.

Separately, FE this week agreed to pay $109M to settle a legal dispute with the CSX and BSNF railroads concerning a long-term coal transportation contract.