FE · 10-Q · 2026Q1 · Full report
CCR Impoundment Transfer and Escrow
FIRSTENERGY CORP · 2026-04-28 · Importance 52 · Surprise 42
On March 4, 2025 AE Supply transferred the McElroy’s Run CCR impoundment facility and adjacent dry landfill and related remediation obligations to a subsidiary of IDA Power, LLC under an environmental liability transfer agreement dated February 3, 2025. Pursuant to the agreement AE Supply established a $160 million escrow account that will be funded over five years and is secured by a surety bond guaranteed by FirstEnergy. As of March 31, 2026 AE Supply has made cumulative cash payments of $46 million to the escrow account since the transfer in 2025. The escrow and guarantee create a funded remediation mechanism and a contingent obligation for FE as the guarantor.
Key facts
- On March 4, 2025 AE Supply transferred the McElroy’s Run CCR impoundment facility and adjacent dry landfill and related remediation obligations pursuant to an environmental liability transfer agreement with a subsidiary of IDA Power, LLC and established a $160 million escrow account to be funded over five years secured by a surety bond guaranteed by FE.
- As of March 31, 2026 AE Supply has made cumulative cash payments of $46 million to the $160 million escrow account since the March 4, 2025 transfer.
- On May 8, 2024 the EPA issued the legacy CCR rule extending 2015 CCR Rule requirements to inactive surface impoundments at inactive electric utilities.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -0.1% | As of March 31, 2026 AE Supply has made cumulative cash payments of $46 million to the $160 million escrow account since the March 4, 2025… |
| liability | negative | contingent | -0.0% | On March 4, 2025 AE Supply transferred the McElroy’s Run CCR impoundment facility and adjacent dry landfill and related remediation… |
| liability | negative | contingent | — | On May 8, 2024 the EPA issued the legacy CCR rule extending 2015 CCR Rule requirements to inactive surface impoundments at inactive… |