|
29 June 2004 - FirstEnergy Corp., the parent of Toledo Edison, has been asked by federal regulators for additional documents and information related to the two-year shutdown of its Davis-Besse nuclear power plant near Oak Harbor.
The request was part of an ongoing informal inquiry by the US Securities and Exchange Commission, begun in September to look into last summer's restatement of earnings by FirstEnergy.
A company spokesman said the utility received a request Thursday and will comply. No details were disclosed on what documents had been requested.
An SEC spokesman said the agency has no comment while the inquiry is under way.
FirstEnergy, of Akron, announced in August it would restate its finances for prior quarters because of accounting changes. The adjustments, which affected profit in 2002 and the first quarter of 2003, resulted from mistakes in the way the utility accounted for depreciated capital expenses and from over-valuation of assets of its Toledo Edison and Cleveland Electric Illuminating subsidiaries.
It was not clear whether Davis-Besse was one of the assets affecting the restatement.
The restatement decreased 2002 net income by $76.5m and had been expected to decrease profits through 2005 but boost them after that.
A month after the restatement, nearly 14 class-action lawsuits were filed against FirstEnergy by law firms representing shareholders accusing the utility of securities fraud and other malfeasance.
The plaintiffs bought the company's stock between April 24, 2000, and Aug. 5, 2003, and contended that FirstEnergy executives, including now-deceased chief executive H. Peter Burg, violated the US Securities Exchange Act by issuing a series of material misrepresentations that inflated the company's assets and income. Those cases are pending.
| 
Articles 
| View all PennWell sites | View all PennWell events
Add RSS Feed
