The parent company of Penelec has announced that it has reached a settlement agreement with the federal Securities and Exchange Commission.
The $100 million settlement is connected to antifraud violations where the company misrepresented its role in a political corruption scheme in Ohio where they failed to disclose related payments to the SEC. The bribery scheme centered on the company’s efforts to convince lawmakers in Ohio to pass a $1 billion bailout of its two affiliated nuclear plants and to defend the bill from a repeal effort.
The company said in a news release that it anticipated the penalty as it indicated it took a reserve $100 million in the second quarter of this year. FirstEnergy President and CEO Brian X. Tenney said they are pleased they were able to reach an agreement with the SEC and will continue to focus on investing in their companies to improve the customer experience and support the energy transition.
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