Funk, J. (2016, November 8). FirstEnergy to sell or close power plants if Ohio, Pennsylvania do
not return to regulated rates. Retrieved November 20, 2016, from,
http://www.cleveland.com/business/index.ssf/2016/11/firstenergy_to_sell_or_close_p.ht
This article bases its central idea about a power plant company being sold in Cleveland, Ohio. The company is called FirstEnergy, and they are seriously considering selling their business due to tough competition, unless the states of Ohio and Pennsylvania support them and regulate them in setting prices or creating a “regulation-like structure for them.” That company just cannot afford to compete with today’s power prices. The prices of gas-fired power plants and wind powered farms have decreased dramatically, and FirstEnergy just cannot keep up. Without the support of Ohio and Pennsylvania, they cannot continue their business.
I think this is just an act of incompetence in the business world. Business leaders are expected to keep up with the immense competition, however FirstEnergy clearly did not demonstrate this. After reading the entire article and based off the reasons for their closure, I think it is almost entirely their fault for running out of business. Since they could not keep up with the competition, they had to call support from someone else so that they can keep up with the competition.
I agree that it was probably their fault that they are running out of business. However, do you think their being sold, and possibly being altered by the new owner, could affect many people who relied on the plant for energy?
While it is most definitely the fault of the business owners and the executives, I cant really blame the company for doing this, it is essentially like asking the government for a bailout or a government contract for a certain service or product, it is a last ditch effort to save the company that, due to poor management or some other factor, is failing.