FE · 10-Q · 2026Q1 · Full report

Deferred Prosecution Agreement

FIRSTENERGY CORP · 2026-04-28 · Importance 27 · Surprise 6

On July 21, 2021 FirstEnergy entered into a three-year Deferred Prosecution Agreement (DPA) with the U.S. Attorney’s Office resolving the matter as to FirstEnergy, which included a criminal monetary penalty totaling $230 million payable within sixty days ($115 million to the U.S. Treasury and $115 million to the ODSA to fund assistance programs for low-income Ohio customers). FirstEnergy recognized the entire $230 million as an expense in Q2 2021 and paid the amount in Q3 2021; the payment will not be recovered in rates nor will FirstEnergy seek a tax deduction related to it. FirstEnergy completed the three‑year term obligations as of July 22, 2024 but remains subject to ongoing DPA obligations to cooperate, publish certain payment disclosures, and comply with related restrictions until conclusion of related investigations, prosecutions, and civil proceedings. The U.S. Attorney’s Office filed a status report on February 26, 2025 confirming these commitments.

Key facts

• On July 21, 2021 FirstEnergy entered into a three-year Deferred Prosecution Agreement (DPA) with the U.S. Attorney’s Office that required FirstEnergy to pay a criminal monetary penalty totaling $230 million within sixty days consisting of $115 million paid to the U.S. Treasury and $115 million paid to the ODSA, and the entire amount was recognized as an expense in the second quarter of 2021 and paid in the third quarter of 2021.
• As of July 22, 2024 FirstEnergy had successfully completed the obligations required within the three-year term of the DPA.
• Under the DPA, FirstEnergy remains obligated to publish quarterly lists of payments to 501(c)(4) entities and entities operating for the benefit of a public official, refrain from making statements that contradict the DPA, notify the U.S. Attorney’s Office of any changes in corporate form, and cooperate with the U.S. Attorney’s Office until conclusion of related matters, after which the U.S. Attorney’s Office will dismiss the criminal information within 30 days of FirstEnergy’s successful completion of remaining obligations.
• Under the DPA, FirstEnergy agreed to publish a list of all payments made in 2021 to either 501(c)(4) entities or to entities known by FirstEnergy to be operating for the benefit of a public official and to update the list on a quarterly basis during the term of the DPA.

Impact estimates