Pleasants Plant Transferred to FES
February 1, 2019
The Pleasants Power Station, owned by FirstEnergy subsidiary Allegheny Energy Supply (AES), will be transferred to FirstEnergy Solutions’ (FES) subsidiary FirstEnergy Generation (FG) as part of a bankruptcy settlement agreement.
A final detailed agreement to transfer the plant, located in Willow Island, W.Va., was filed Friday, Feb.1, with the court overseeing the Chapter 11 bankruptcy of FES.
The filing with the court satisfies requirements in the settlement agreement with key groups of creditors in the bankruptcy proceedings that was approved by the bankruptcy court in September 2018, in which AES and parent company FirstEnergy agreed to transfer all rights, title and interest in the 1,300-megawatt Pleasants plant. In exchange, the debtors in the bankruptcy case and their creditors agreed to release FirstEnergy from claims.
The transfer will become complete when FG emerges from Chapter 11, currently anticipated before the end of this year.
The agreement contains some employment protections and benefits considerations for employees currently working at Pleasants. Actual terms are detailed in the agreement; however, in general, most Pleasants employees must be offered positions substantially the same, and at the same or higher hourly rates or salaries, as they hold immediately before the transfer. Benefits and terms of employment must be similar to those provided to other similarly-situated employees within FG after it has emerged from bankruptcy. FG must continue providing these or better terms of employment, for at least 18 months after the transfer.
The agreement does not include the McElroy Run disposal area. A separate agreement will cover the operation and oversight of McElroy Run.