FirstEnergy Shares Jump 1.88% on PUCO Settlement as $290M Volume Spikes to 446th in Market Activity

Market Snapshot

FirstEnergy (FE) surged 1.88% on January 14, 2026, with trading volume spiking 78.16% to $290 million, ranking the stock 446th in market activity. The significant increase in volume and price movement suggests heightened investor interest, potentially driven by developments related to its ongoing legal and regulatory challenges. Despite the positive price action, the company’s shares remain under scrutiny following a series of financial penalties and a high-profile corruption scandal tied to Ohio’s House Bill 6.

Key Drivers

The recent settlement with the Public Utilities Commission of Ohio (PUCO) over the controversial House Bill 6 (HB 6) appears to be the primary catalyst for FirstEnergy’s stock performance. Under the agreement, finalized on January 7, the company will distribute $249 million in refunds to customers through three billing periods starting February 1. The restitution, which includes credits averaging $65.61 for residential customers using 1,000 kilowatt hours monthly, aims to address fallout from HB 6—a 2019 law that funneled $1 billion in customer funds to FirstEnergy’s nuclear plants. The settlement marks a pivotal step in resolving regulatory scrutiny, though it does not absolve the company of prior violations of Ohio law and PUCO orders.

The HB 6 controversy itself has been a major drag on the company’s reputation and financial standing. Federal prosecutors revealed in 2023 that FirstEnergy funneled over $60 million in payments to former Ohio House Speaker Larry Householder, who orchestrated the bill to prop up the utility’s nuclear and coal plants. Householder’s 20-year prison sentence and the subsequent criminal convictions of several corporate executives have cast a long shadow over the company. While the PUCO settlement ends its investigation into HB 6-related conduct, FirstEnergy continues to face broader legal and financial repercussions, including a $3.9 million fine for lobbying transparency violations, a $20 million agreement with the Ohio Attorney General, and a $230 million deferred prosecution deal with federal authorities.

Investor sentiment may also be influenced by the additional support measures outlined in the PUCO settlement. Beyond the customer refunds, FirstEnergy has committed to allocating $20 million to low-income energy programs, $6.6 million (plus interest) for improper billing charges, and $5 million to the Retail Energy Supply Association for corporate governance violations. These concessions reflect efforts to rebuild trust with regulators and customers, though they underscore the company’s ongoing challenges in managing its public image and regulatory compliance. The February 1 implementation date for the refunds, confirmed by PUCO officials, adds a near-term timeline for accountability, which could stabilize or further test market confidence.

The stock’s 1.88% gain contrasts with its recent history of volatility, including declines following the 2023 criminal trials and prior penalty announcements. While the PUCO settlement may be perceived as a step toward resolution, investors remain cautious about the company’s broader legal exposure. The settlement does not preclude future litigation or regulatory actions, particularly as other cases tied to HB 6 remain in court. Additionally, the company’s financial obligations—spanning hundreds of millions in fines and restitution—could weigh on its balance sheet and operational flexibility. The market’s positive reaction may reflect optimism that the most severe penalties have been addressed, but sustained recovery will depend on FirstEnergy’s ability to demonstrate improved governance and compliance.

In summary, FirstEnergy’s stock movement appears linked to the PUCO settlement’s announcement and the impending implementation of customer refunds. While these developments signal progress in resolving one facet of the HB 6 fallout, the company’s path to regaining investor trust remains complicated by its extensive legal history and ongoing litigation. The February 1 restitution timeline offers a concrete milestone, but long-term performance will hinge on how effectively FirstEnergy navigates its regulatory and reputational challenges.