FE · 10-Q · 2026Q1 · Full report
CCR Liability Transfer Escrow
FIRSTENERGY CORP · 2026-04-28 · Importance 52 · Surprise 42
AE Supply transferred the McElroy’s Run CCR impoundment facility and adjacent dry landfill and related remediation obligations on March 4, 2025 to a subsidiary of IDA Power, LLC pursuant to an environmental liability transfer agreement dated February 3, 2025. Under the agreement AE Supply established a $160 million escrow account to be funded over five years, secured by a surety bond that is guaranteed by FirstEnergy. As of March 31, 2026 AE Supply had made cumulative cash payments of $46 million to the escrow account. The arrangement shifts remediation obligations while leaving FirstEnergy exposed via the guaranteed surety bond.
Key facts
- Total environmental liabilities considered probable and accrued through March 31, 2026 are approximately $95 million, of which approximately $70 million are for environmental remediation of former MGP and gas holder facilities in New Jersey that are being recovered by JCP&L through a non-bypassable societal benefits charge.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | — | Total environmental liabilities considered probable and accrued through March 31, 2026 are approximately $95 million, of which… |