Dive Brief:

• Changing market conditions, including slack demand growth, have forced FirstEnergy to retreat from unregulated businesses, close power plants and cut its dividend, company officials say.
• Akron, Ohio-based FirstEnergy plans to focus on its regulated utilities instead of its unregulated FirstEnergy Solutions.
• FirstEnergy is being hurt by “unfair” supply auctions held by the PJM Interconnection, according to FirstEnergy CEO Anthony Alexander. "PJM's capacity auctions -- which are intended to provide support for competitive generators -- do not, and instead have delivered unpredictable and inadequate results," Alexander said.

Dive Insight:

In the past, utility companies have been stung by their unregulated operations. Xcel Energy, for example, took a hit on its NRG Energy subsidiary, which filed for bankruptcy protection in 2003. Not that FirstEnergy is facing anything that dire, but the company is clearly shifting focus towards its regulated utilities, which provide a steady revenue stream.