FirstEnergy Executives Address Shareholders
FirstEnergy Corp. (NYSE: FE) CEO Steven E. Strah outlined the company's transformation initiatives at the 2021 Annual Meeting, emphasizing strong financial performance and a commitment to enhancing energy infrastructure. The FE Forward initiative aims to automate processes and modernize experiences, targeting over 300 opportunities for improvement. FirstEnergy also aspires to increase employee diversity by 30% by 2025 and achieve carbon neutrality by 2050. Shareholders re-elected 13 directors and approved the appointment of PricewaterhouseCoopers LLP as the public accounting firm.
- Strong operational and financial performance reported for 2020.
- The FE Forward initiative aims to enhance efficiencies and modernize processes with over 300 opportunities identified.
- Commitment to a 30% increase in diverse employees by 2025.
- Aspiration to achieve carbon neutrality by 2050.
- Ongoing government investigations regarding Ohio House Bill 6 could pose regulatory risks.
- Potential adverse impacts on compliance with debt covenants due to government inquiries.
AKRON, Ohio, May 18, 2021 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) President and Chief Executive Officer Steven E. Strah told shareholders today that the company is embarking on a transformation designed to deliver exceptional value to customers and shareholders, while it continues to implement its successful long-term growth strategies.
Speaking at the company's 2021 Annual Meeting of Shareholders, Strah noted FirstEnergy's strong operational and financial performance in 2020, and its continuing commitment to enhance and upgrade its energy infrastructure for the benefit of customers. He also explained that the leadership team is intently focused on the future of the company as it works to restore trust with stakeholders, achieve bold companywide goals that support its vision for the future, and drive its new FE Forward initiative to re-evaluate business practices, processes and the way decisions are made.
"We are eager to make progress on our transformational journey and achieve the goals that we've set to become a more resilient, innovative, diverse and sustainable company," he said.
Through FE Forward, Strah said the company has identified more than 300 opportunities to automate processes, take a more strategic approach to operating expenditures, and modernize experiences for customers and employees.
"At its core, FE Forward is designed to support near-term financial resiliency and flexibility while opening new opportunities for long-term growth," Strah added.
He noted that the efficiencies in capital and O&M expenditures realized through the program can be strategically reinvested into building a smarter and cleaner electric grid that benefits FirstEnergy's customers and communities.
"Becoming a more diverse and sustainable company is also important to our company's transformation," Strah said.
Strah cited the company's aspiration to achieve a
"It's my privilege to continue leading the company as we navigate our current challenges and position our business for long-term stability and success," he said.
During the meeting, Vice Chair and Executive Director John Somerhalder spoke to shareholders about the efforts of the Board and leadership team to build a best-in-class compliance program. He explained that the company is focused on embedding compliance, ethics, accountability and integrity into its culture, beginning with the Board of Directors and senior leadership.
"Together, we're working to create an environment where not only our words, but our actions, align with our core values and behaviors. Success in this area is vital to our path forward as a company," he said.
A transcript of the prepared remarks used by Strah and Somerhalder can be found here.
Preliminary Voting Results
FirstEnergy also announced preliminary voting results from its 2021 Annual Meeting. Shareholders reelected 13 directors to new one-year terms on the company's Board and elected new director Melvin Williams. Shareholders also ratified the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm and approved, on an advisory basis, named executive officer compensation.
All preliminary voting results are subject to final certification.
The following directors were elected to one-year terms:
- Michael J. Anderson, chairman of the board of The Andersons, Inc.
- Steven J. Demetriou, chairman, chief executive officer and director of Jacobs Engineering Group Inc.
- Julia L. Johnson, president of NetCommunications, LLC
- Jesse A. Lynn, general counsel of Icahn Enterprises, L.P.
- Donald T. Misheff, non-executive chair of the FirstEnergy Corp. Board of Directors, retired managing partner of the Northeast Ohio offices of Ernst & Young LLP
- Thomas N. Mitchell, chairman of the World Association of Nuclear Operators
- James F. O'Neil III, chief executive officer and vice chairman of Orbital Energy Group
- Christopher D. Pappas, retired president and chief executive officer of Trinseo S.A.
- Luis A. Reyes, retired regional administrator of the U.S. Nuclear Regulatory Commission
- John W. Somerhalder, II, vice chair and executive director of the FirstEnergy Board of Directors and member of management
- Steven E. Strah, president and CEO of FirstEnergy
- Andrew Teno, portfolio manager of Icahn Capital LP
- Leslie M. Turner, retired senior vice president, general counsel and corporate secretary of The Hershey Company
- Melvin Williams, retired president of Nicor Gas and senior vice president of Southern Company Gas
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its 10 electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy on Twitter @FirstEnergyCorp or online at www.firstenergycorp.com.
Forward-Looking Statements: This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "forecast," "target," "will," "intend," "believe," "project," "estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following: the effectiveness of our ongoing discussions with the U.S. Attorney's Office of the S.D. Ohio to resolve its investigation with respect to us; the results of the internal investigation and evaluation of our controls framework and remediation of our material weakness in internal control over financial reporting; the risks and uncertainties associated with government investigations regarding Ohio House Bill 6 and related matters including potential adverse impacts on federal or state regulatory matters including, but not limited to, matters relating to rates; the potential of non-compliance with debt covenants in our credit facilities due to matters associated with the government investigations regarding Ohio House Bill 6 and related matters; the risks and uncertainties associated with litigation, arbitration, mediation and similar proceedings; legislative and regulatory developments, including, but not limited to, matters related to rates, compliance and enforcement activity; the ability to accomplish or realize anticipated benefits from strategic and financial goals, including, but not limited to, maintaining financial flexibility, overcoming current uncertainties and challenges associated with the ongoing government investigations, executing our transmission and distribution investment plans, greenhouse gas reduction goals, controlling costs, improving our credit metrics, strengthening our balance sheet and growing earnings; economic and weather conditions affecting future operating results, such as a recession, significant weather events and other natural disasters, and associated regulatory events or actions in response to such conditions; mitigating exposure for remedial activities associated with retired and formerly owned electric generation assets; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us, including the increasing number of financial institutions evaluating the impact of climate change on their investment decisions; the extent and duration of COVID-19 and the impacts to our business, operations and financial condition resulting from the outbreak of COVID-19 including, but not limited to, disruption of businesses in our territories, volatile capital and credit markets, legislative and regulatory actions, including the vaccine's efficacy and the effectiveness of its distribution; the effectiveness of our pandemic and business continuity plans, the precautionary measures we are taking on behalf of our customers, contractors and employees, our customers' ability to make their utility payment and the potential for supply-chain disruptions; actions that may be taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; changes in assumptions regarding economic conditions within our territories, the reliability of our transmission and distribution system, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; changes in customers' demand for power, including, but not limited to, the impact of climate change or energy efficiency and peak demand reduction mandates; changes in national and regional economic conditions affecting us and/or our major industrial and commercial customers or others with which we do business; the risks associated with cyber-attacks and other disruptions to our information technology system, which may compromise our operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to comply with applicable reliability standards and energy efficiency and peak demand reduction mandates; changes to environmental laws and regulations, including, but not limited to, those related to climate change; changing market conditions affecting the measurement of certain liabilities and the value of assets held in our pension trusts and other trust funds, or causing us to make contributions sooner, or in amounts that are larger, than currently anticipated; labor disruptions by our unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, or adverse tax audit results or rulings; and the risks and other factors discussed from time to time in our SEC filings. Dividends declared from time to time on FirstEnergy Corp.'s common stock during any period may in the aggregate vary from prior periods due to circumstances considered by FirstEnergy Corp.'s Board of Directors at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. These forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy Corp.'s filings with the SEC, including but not limited to the most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy Corp.'s business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy Corp. expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein or in the information incorporated by reference as a result of new information, future events or otherwise.
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SOURCE FirstEnergy Corp.
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