FirstEnergy's $60 Million Bribery Trial Begins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy FE?
Source: seekingalpha
- Bribery Payment Uncovered: FirstEnergy, based in Ohio, made a $4.3 million payment to lawyer and lobbyist Sam Randazzo in 2019, just before he became the state's top utility regulator, revealing potential conflicts of interest and misconduct.
- Investigation Context: This case is central to a $60 million bribery investigation, with prosecutors alleging that then-FirstEnergy CEO Chuck Jones and Senior VP Michael Dowling orchestrated the hefty payout to secure several lucrative regulatory favors from Randazzo.
- Trial Progress: According to the Associated Press, opening statements in the trial are expected to begin Tuesday in Akron, marking a critical phase in the legal scrutiny of FirstEnergy and its executives, which could impact the company's reputation and future operations.
- Corporate Image Rebuilding: Despite the bribery scandal, FirstEnergy recently received an upgraded rating from Wolfe Securities, indicating some progress in rebuilding its credibility; however, the trial's developments may still exert pressure on its stock price and market confidence.
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Analyst Views on FE
Wall Street analysts forecast FE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FE is 49.25 USD with a low forecast of 46.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 47.340
Low
46.00
Averages
49.25
High
54.00
Current: 47.340
Low
46.00
Averages
49.25
High
54.00
About FE
FirstEnergy Corp. and its subsidiaries are involved in the transmission, distribution, and generation of electricity through its segments: Distribution, Integrated and Stand-Alone Transmission. The Distribution Segment, which consists of the Ohio Companies and FirstEnergy Pennsylvania Electric Company (FE PA), distributes electricity in Ohio and Pennsylvania. The Integrated segment includes the distribution and transmission operations under Jersey Central Power & Light Company (JCP&L), Monongahela Power Company (MP) and The Potomac Edison Company (PE), as well as MP's regulated generation operations. The segment distributes electricity in New Jersey, West Virginia and Maryland, provides transmission infrastructure, and operates 3,604 MWs of regulated net maximum generation capacity. The Stand-Alone Transmission segment consists of its ownership in FET and KATCo, which includes transmission infrastructure owned and operated by the Transmission Companies and used to transmit electricity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FirstEnergy's $60 Million Bribery Trial Begins
- Bribery Payment Uncovered: FirstEnergy, based in Ohio, made a $4.3 million payment to lawyer and lobbyist Sam Randazzo in 2019, just before he became the state's top utility regulator, revealing potential conflicts of interest and misconduct.
- Investigation Context: This case is central to a $60 million bribery investigation, with prosecutors alleging that then-FirstEnergy CEO Chuck Jones and Senior VP Michael Dowling orchestrated the hefty payout to secure several lucrative regulatory favors from Randazzo.
- Trial Progress: According to the Associated Press, opening statements in the trial are expected to begin Tuesday in Akron, marking a critical phase in the legal scrutiny of FirstEnergy and its executives, which could impact the company's reputation and future operations.
- Corporate Image Rebuilding: Despite the bribery scandal, FirstEnergy recently received an upgraded rating from Wolfe Securities, indicating some progress in rebuilding its credibility; however, the trial's developments may still exert pressure on its stock price and market confidence.
See More
FirstEnergy Invests $538 Million to Enhance Electric Service for Penelec Customers
- Service Upgrade: FirstEnergy has completed an upgrade in McKean County for over 1,000 Bradford customers, with new underground cables that can carry more power, enhancing system reliability and flexibility.
- Outage Risk Reduction: The installation of redundant power lines allows for quick switching to alternative lines during issues, significantly reducing outage risks and bolstering support for local economic growth.
- Long-term Investment Plan: This upgrade is part of FirstEnergy's $538 million Long Term Infrastructure Improvement Plan aimed at modernizing the electric grid to enhance reliability and meet future customer needs.
- Future Development Strategy: FirstEnergy plans to invest $28 billion through the Energize365 program from 2025 to 2029 to build a smarter, more secure grid that meets the demands of today's and tomorrow's customers.
See More
FirstEnergy's $538 Million Investment Enhances Electric Service for Penelec Customers
- Service Upgrade: FirstEnergy has completed an upgrade in McKean County for Penelec customers, with new underground cables providing more reliable electric service to over 1,000 customers in Bradford and Bradford Township, expected to significantly reduce outages and speed restoration.
- Long-Term Investment: This upgrade is part of FirstEnergy's Long Term Infrastructure Improvement Plan (LTIIP III), which allocates $538 million for enhancing electric system reliability in Penelec's service area, supporting local economic growth.
- Grid Modernization Goals: FirstEnergy plans to invest $28 billion through its Energize365 program between 2025 and 2029, aiming to create a smarter, more secure grid that meets the needs of today's customers and supports sustainable growth.
- Extensive Customer Base: Penelec serves approximately 597,000 customers across 17,600 square miles in northern and central Pennsylvania and western New York, underscoring its significant role and impact in the regional electric market.
See More
FirstEnergy Upgraded to Outperform with $50 Target Amid Growth Prospects
- Rating Upgrade: Wolfe Research upgraded FirstEnergy from Peer Perform to Outperform with a $50 price target, citing the stock's discount to regulated peers and an anticipated rebound heading into 2026.
- Capex Opportunities: Analyst Steve Fleishman highlighted that opportunities in FERC transmission and West Virginia generation could drive rate base growth above 10%, with earnings growth projected at the upper end of the 6%-8% CAGR, requiring only 30% of incremental capex.
- Credit Metrics Improvement: FirstEnergy's credit metrics and ratings are now aligned with peers, indicating a successful rebuilding of credibility after last year's disappointing earnings, which positions the company for above-average growth.
- Regulatory Risk Mitigation: With the conclusion of last year's HB6 fine, the regulatory overhang in Ohio is expected to be lifted, and the successful legislative session earlier this year has averted potential risks, creating a favorable environment for future growth.
See More
FirstEnergy Corp. Prepares for Winter Storm Response and Power Restoration
- Winter Storm Preparedness: FirstEnergy Corp. is ready for the impending winter storm, with forecasts indicating that the entire service area will experience cold weather and snowfall, ensuring rapid power restoration in case of outages.
- Around-the-Clock Command Structure: The company has activated its around-the-clock incident command structure to coordinate restoration efforts and equipment needs as weather conditions change, ensuring efficient resource allocation.
- Collaboration with Utilities: FirstEnergy is in close contact with other utilities and outside contractors to quickly mobilize additional crews in the event of widespread damage from the storm, ensuring timely response capabilities.
- Customer Safety Tips: The company advises customers to adopt energy-saving measures during extreme cold to lower bills and reduce strain on the electric system, providing 12 quick tips to help customers safely navigate the cold snap.
See More
FirstEnergy Corp. Prepares for Winter Storm Response and Power Restoration
- Winter Storm Preparedness: FirstEnergy Corp. is ready for the upcoming winter storm, with forecasts indicating significant temperature drops and increased snowfall across its service area, potentially leading to power outages; the company has activated its around-the-clock incident command structure to coordinate restoration efforts and equipment needs.
- Equipment Upgrade Investment: Through its $28 billion Energize365 program, FirstEnergy has strengthened the reliability of its electric system, ensuring a rapid response to extreme weather conditions and minimizing the risk of outages due to equipment failures.
- Customer Safety Tips: The company has provided 12 energy-saving and safety measures to help customers manage energy use during extreme cold, reducing bills and alleviating strain on the electric system to ensure stable power supply during peak demand periods.
- Restoration Capability: FirstEnergy maintains close communication with other utilities to quickly mobilize additional restoration personnel and resources in the event of widespread damage from the storm, ensuring timely responses and power restoration when outages occur.
See More
FirstEnergy's $60 Million Bribery Trial Begins
- Bribery Payment Uncovered: FirstEnergy, based in Ohio, made a $4.3 million payment to lawyer and lobbyist Sam Randazzo in 2019, just before he became the state's top utility regulator, revealing potential conflicts of interest and misconduct.
- Investigation Context: This case is central to a $60 million bribery investigation, with prosecutors alleging that then-FirstEnergy CEO Chuck Jones and Senior VP Michael Dowling orchestrated the hefty payout to secure several lucrative regulatory favors from Randazzo.
- Trial Progress: According to the Associated Press, opening statements in the trial are expected to begin Tuesday in Akron, marking a critical phase in the legal scrutiny of FirstEnergy and its executives, which could impact the company's reputation and future operations.
- Corporate Image Rebuilding: Despite the bribery scandal, FirstEnergy recently received an upgraded rating from Wolfe Securities, indicating some progress in rebuilding its credibility; however, the trial's developments may still exert pressure on its stock price and market confidence.
See More
FirstEnergy Invests $538 Million to Enhance Electric Service for Penelec Customers
- Service Upgrade: FirstEnergy has completed an upgrade in McKean County for over 1,000 Bradford customers, with new underground cables that can carry more power, enhancing system reliability and flexibility.
- Outage Risk Reduction: The installation of redundant power lines allows for quick switching to alternative lines during issues, significantly reducing outage risks and bolstering support for local economic growth.
- Long-term Investment Plan: This upgrade is part of FirstEnergy's $538 million Long Term Infrastructure Improvement Plan aimed at modernizing the electric grid to enhance reliability and meet future customer needs.
- Future Development Strategy: FirstEnergy plans to invest $28 billion through the Energize365 program from 2025 to 2029 to build a smarter, more secure grid that meets the demands of today's and tomorrow's customers.
See More
FirstEnergy's $538 Million Investment Enhances Electric Service for Penelec Customers
- Service Upgrade: FirstEnergy has completed an upgrade in McKean County for Penelec customers, with new underground cables providing more reliable electric service to over 1,000 customers in Bradford and Bradford Township, expected to significantly reduce outages and speed restoration.
- Long-Term Investment: This upgrade is part of FirstEnergy's Long Term Infrastructure Improvement Plan (LTIIP III), which allocates $538 million for enhancing electric system reliability in Penelec's service area, supporting local economic growth.
- Grid Modernization Goals: FirstEnergy plans to invest $28 billion through its Energize365 program between 2025 and 2029, aiming to create a smarter, more secure grid that meets the needs of today's customers and supports sustainable growth.
- Extensive Customer Base: Penelec serves approximately 597,000 customers across 17,600 square miles in northern and central Pennsylvania and western New York, underscoring its significant role and impact in the regional electric market.
See More
FirstEnergy Upgraded to Outperform with $50 Target Amid Growth Prospects
- Rating Upgrade: Wolfe Research upgraded FirstEnergy from Peer Perform to Outperform with a $50 price target, citing the stock's discount to regulated peers and an anticipated rebound heading into 2026.
- Capex Opportunities: Analyst Steve Fleishman highlighted that opportunities in FERC transmission and West Virginia generation could drive rate base growth above 10%, with earnings growth projected at the upper end of the 6%-8% CAGR, requiring only 30% of incremental capex.
- Credit Metrics Improvement: FirstEnergy's credit metrics and ratings are now aligned with peers, indicating a successful rebuilding of credibility after last year's disappointing earnings, which positions the company for above-average growth.
- Regulatory Risk Mitigation: With the conclusion of last year's HB6 fine, the regulatory overhang in Ohio is expected to be lifted, and the successful legislative session earlier this year has averted potential risks, creating a favorable environment for future growth.
See More
FirstEnergy Corp. Prepares for Winter Storm Response and Power Restoration
- Winter Storm Preparedness: FirstEnergy Corp. is ready for the impending winter storm, with forecasts indicating that the entire service area will experience cold weather and snowfall, ensuring rapid power restoration in case of outages.
- Around-the-Clock Command Structure: The company has activated its around-the-clock incident command structure to coordinate restoration efforts and equipment needs as weather conditions change, ensuring efficient resource allocation.
- Collaboration with Utilities: FirstEnergy is in close contact with other utilities and outside contractors to quickly mobilize additional crews in the event of widespread damage from the storm, ensuring timely response capabilities.
- Customer Safety Tips: The company advises customers to adopt energy-saving measures during extreme cold to lower bills and reduce strain on the electric system, providing 12 quick tips to help customers safely navigate the cold snap.
See More
FirstEnergy Corp. Prepares for Winter Storm Response and Power Restoration
- Winter Storm Preparedness: FirstEnergy Corp. is ready for the upcoming winter storm, with forecasts indicating significant temperature drops and increased snowfall across its service area, potentially leading to power outages; the company has activated its around-the-clock incident command structure to coordinate restoration efforts and equipment needs.
- Equipment Upgrade Investment: Through its $28 billion Energize365 program, FirstEnergy has strengthened the reliability of its electric system, ensuring a rapid response to extreme weather conditions and minimizing the risk of outages due to equipment failures.
- Customer Safety Tips: The company has provided 12 energy-saving and safety measures to help customers manage energy use during extreme cold, reducing bills and alleviating strain on the electric system to ensure stable power supply during peak demand periods.
- Restoration Capability: FirstEnergy maintains close communication with other utilities to quickly mobilize additional restoration personnel and resources in the event of widespread damage from the storm, ensuring timely responses and power restoration when outages occur.
See More
