Seven Union Locals Extend Contracts With FirstEnergy
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Nearly Forty Percent of Union-Represented Employees Agree to Extensions
AKRON, Ohio, June 26 /PRNewswire-FirstCall/ -- FirstEnergy Corp. (NYSE: FE)
today announced that seven of its union locals - representing about 2,600
employees - have ratified contract extensions. These unions include employees
from Pennsylvania Electric Company (Penelec), Pennsylvania Power Company (Penn
Power), Cleveland Electric Illuminating Company (CEI), Ohio Edison, and Toledo
Edison, along with some power plant employees.
"I appreciate the commitment that our union leaders and represented employees
have made to the company during these tough economic times," said Anthony J.
Alexander, president and chief executive officer of FirstEnergy. "When
combined with the changes already made by our salaried employees, these
contract extensions will help ensure that we emerge a stronger company, better
positioned for growth when the economy begins to rebound."
The contract extensions - one to three years in length - could include wage
and health care changes along with a Voluntary Enhanced Retirement Option
(VERO) for employees 58 years and older with at least 10 years of service.
The extent of contract changes was dependent upon the length of the extension.
The company recently announced that it would take steps to reduce costs,
enhance efficiencies and minimize financial risk in response to the continued
economic recession. These steps include temporary salary changes, revisions
to retiree health care coverage, and offering the VERO program to its
non-represented workforce. The contract extensions are an effort to bring the
same kind of changes to represented employees.
Overall, FirstEnergy has 6,700 employees represented by 17 union locals. The
following ratified contract extensions:
-- Utility Workers Union of America (UWUA) Local 270, representing power
plant and CEI employees in the Cleveland area
-- UWUA Locals 118 and 126, representing Ohio Edison employees in Akron
and
Youngstown
-- UWUA Local 140, representing Penn Power employees in western Pa.
-- UWUA Local 457, representing employees at the W.H. Sammis Plant, in
Stratton, Ohio
-- UWUA Local 180, representing Penelec employees in Altoona, Pa.
-- UWUA Locals 350 and 351, representing power plant employees in Ohio
-- Office and Professional Employees International Union Local 19,
representing power plant and Toledo Edison employees in Toledo, Ohio.
Company representatives plan to continue discussions with leadership of some
of the remaining unions that represent FirstEnergy employees to provide the
same time-sensitive extension options.
FirstEnergy is a diversified energy company headquartered in Akron, Ohio. Its
subsidiaries and affiliates are involved in the generation, transmission and
distribution of electricity, as well as energy management and other
energy-related services. Its seven electric utility operating companies
comprise the nation's fifth largest investor-owned electric system, based on
4.5 million customers served within a 36,100-square-mile area of Ohio,
Pennsylvania and New Jersey; and its generation subsidiaries control more than
14,000 megawatts of capacity.
Forward-Looking Statements: This news release includes forward-looking
statements based on information currently available to management. Such
statements are subject to certain risks and uncertainties. These statements
include declarations regarding our management's intents, beliefs and current
expectations. These statements typically contain, but are not limited to, the
terms "anticipate," "potential," "expect," "believe," "estimate" 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. Actual results may differ materially due to the
speed and nature of increased competition in the electric utility industry and
legislative and regulatory changes affecting how generation rates will be
determined following the expiration of existing rate plans in Pennsylvania,
the impact of the PUCO's regulatory process on the Ohio Companies associated
with the distribution rate case, the impact of the competitive generation
procurement process in Ohio, economic or weather conditions affecting future
sales and margins, changes in markets for energy services, changing energy and
commodity market prices and availability, replacement power costs being higher
than anticipated or inadequately hedged, the continued ability of
FirstEnergy's regulated utilities to collect transition and other charges or
to recover increased transmission costs, maintenance costs being higher than
anticipated, other legislative and regulatory changes, revised environmental
requirements, including possible greenhouse gas emission regulations, the
potential impacts of the U.S. Court of Appeals' July 11, 2008 decision
requiring revisions to the CAIR rules and the scope of any laws, rules or
regulations that may ultimately take their place, the uncertainty of the
timing and amounts of the capital expenditures needed to, among other things,
implement the AQC Plan (including that such amounts could be higher than
anticipated or that certain generating units may need to be shut down) or
levels of emission reductions related to the Consent Decree resolving the NSR
litigation or other potential regulatory initiatives, adverse regulatory or
legal decisions and outcomes (including, but not limited to, the revocation of
necessary licenses or operating permits and oversight) by the NRC (including,
but not limited to, the Demand for Information issued to FENOC on May 14,
2007), Met-Ed's and Penelec's transmission service charge filings with the
PPUC, the continuing availability of generating units and their ability to
operate at or near full capacity, the ability to comply with applicable state
and federal reliability standards, the ability to accomplish or realize
anticipated benefits from strategic goals (including employee workforce
initiatives), the ability to improve electric commodity margins and to
experience growth in the distribution business, the changing market conditions
that could affect the value of assets held in FirstEnergy's nuclear
decommissioning trusts, pension trusts and other trust funds, and cause it to
make additional contributions sooner, or in an amount that is larger than
currently anticipated, the ability to access the public securities and other
capital and credit markets in accordance with FirstEnergy's financing plan and
the cost of such capital, changes in general economic conditions affecting the
company, the state of the capital and credit markets affecting the company,
interest rates and any actions taken by credit rating agencies that could
negatively affect FirstEnergy's access to financing or its costs and increase
its requirements to post additional collateral to support outstanding
commodity positions, letters of credit and other financial guarantees, the
continuing decline of the national and regional economy and its impact on
FirstEnergy's major industrial and commercial customers, issues concerning the
soundness of financial institutions and counterparties with which FirstEnergy
does business, and the risks and other factors discussed from time to time in
its SEC filings, and other similar factors. The foregoing review of factors
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 its 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 expressly
disclaims any current intention to update any forward-looking statements
contained herein as a result of new information, future events, or otherwise.
www.firstenergycorp.com
SOURCE FirstEnergy Corp.
Media, Ellen Raines, +1-330-384-5808, or Investor Relations, Ronald Seeholzer,
+1-330-384-5415, both of FirstEnergy Corp.
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