FIRSTENERGY CORP

Previous wording

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence and is principally involved in the transmission, distribution and generation of electricity through its reportable segments: Distribution, Integrated and Stand-Alone Transmission. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving over six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy’s transmission subsidiaries operate more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions and two regional transmission operation centers. AGC and MP control 3,604 MWs of net maximum generation capacity.

Current wording

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence and is principally involved in the transmission, distribution and generation of electricity through its reportable segments: Distribution, Integrated and Stand-Alone Transmission. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving over six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy’s transmission subsidiaries operate more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions and two regional transmission operation centers. As of March 31, 2025, AGC and MP control 3,604 MWs of net maximum generation capacity.

Previous wording

Earnings attributable to FE from continuing operations was $419 million or $0.73 per share (basic and diluted) in the third quarter of 2024 compared to $421 million or $0.74 per basic share ($0.73 diluted) in the third quarter of 2023, representing a decrease of $2 million that was primarily due to the following:

Current wording

Earnings attributable to FE was $360 million or $0.62 per share (basic and diluted) in the first quarter of 2025 compared to $253 million or $0.44 per share (basic and diluted) in the first quarter of 2024, representing an increase of $107 million that was primarily due to the following:

Previous wording

•Lower interest expense primarily due to the redemption of certain FE long-term debt and lower short-term borrowings; and

Current wording

•Lower interest expense as a result of long-term debt redemptions since the first quarter of 2024 and lower short-term borrowings; and

Previous wording

Residential and commercial distribution deliveries were impacted by higher customer usage as a result of the weather. Cooling degree days in the third quarter of 2024 were 15% above the same period of 2023 and 7% above normal.

Current wording

Residential and commercial distribution deliveries were impacted by higher customer usage as a result of the weather. Heating degree days in the first quarter of 2025 were 15% above the same period of 2024 and flat to normal.

Previous wording

On May 8, 2024, the EPA finalized changes to the CCR regulations addressing inactive surface impoundments at inactive electric utilities, known as legacy CCR surface impoundments. The rule extends 2015 CCR rule requirements for groundwater monitoring and protection procedures, operational and reporting procedures as well as closure requirements for impoundments and landfills that were not originally included for coverage by the 2015 CCR rule. In anticipation of such expenditures, FirstEnergy performed a preliminary assessment of former CCR disposal sites and calculated an initial estimate applying historical experience in remediating comparable sites. As a result, FirstEnergy recorded a $125 million increase to its ARO during the second quarter of 2024, of which $120 million is included in “Other operating expenses” on the Consolidated Statements of Income and was not capitalized as an asset retirement cost since the associated plants do not have future cash flows. During the third quarter of 2024, FirstEnergy determined that an additional site became applicable under the CCR rules, which resulted in a $25 million increase to the ARO, with a corresponding increase to the asset retirement cost.

Current wording

On May 8, 2024, the EPA finalized changes to the CCR regulations addressing inactive surface impoundments at inactive electric utilities, known as legacy CCR surface impoundments, and in November 2024 and January 2025, the EPA made several technical corrections to the rule. The rule extends 2015 CCR rule requirements for groundwater monitoring and protection procedures, operational and reporting procedures, as well as closure requirements for impoundments and landfills that were not originally included for coverage by the 2015 CCR rule. As a result, during 2024, FirstEnergy performed a preliminary assessment of former CCR disposal sites and calculated an initial estimate applying historical experience in remediating comparable sites and recorded a $139 million increase to its ARO in 2024. JCP&L did not have any legacy CCR disposal sites that were applicable to the new CCR rule.

Previous wording

• On July 26, 2024, FE, Virginia Electric and Power Company, a subsidiary of Dominion Energy, Inc. and Transource Energy, LLC, a subsidiary of American Electric Power, Inc. entered into a joint proposal agreement in connection with PJM’s Regional Transmission Expansion Plan Open Window 1 process in September 2024. Pursuant to such joint proposal agreement, FE (through the subsidiaries of FET), Virginia Electric and Power Company and Transource Energy, LLC jointly proposed certain regional electric transmission projects for PJM's consideration during the Open Window process. PJM is expected to approve selected projects in the first quarter of 2025.

Current wording

On July 26, 2024, FE, VEPCO and Transource Energy, LLC, a subsidiary of AEP, entered into a joint proposal agreement in connection with PJM’s 2024 Regional Transmission Expansion Plan Open Window 1 process. Pursuant to such joint proposal agreement, FET, VEPCO and Transource Energy, LLC jointly proposed certain regional electric transmission projects for PJM's consideration during the Open Window process. On November 25, 2024, FET, Dominion High Voltage MidAtlantic, Inc., an affiliate of VEPCO, and Transource Energy, LLC, formed Valley Link, which is the holding company responsible for managing and executing any projects awarded by PJM, and entered into a limited liability agreement. On February 26, 2025, PJM selected certain of the joint proposed projects, which included approximately $3 billion in investments for Valley Link to both build new and upgrade existing transmission infrastructure.

Previous wording

FirstEnergy also expects to continue returning value to shareholders. In March 2024, the FE Board declared a $0.015 per share increase to the quarterly common stock dividend payable June 1, 2024, to $0.425 per share, which represents an approximate 6% increase compared to dividends declared in 2023. Modest dividend growth is expected to enable enhanced shareholder returns, while still allowing for continued substantial regulated investments. Dividend payments are subject to declaration by the FE Board, and future dividend decisions determined by the FE Board may be impacted by earnings growth, credit metrics and other business conditions.

Current wording

FirstEnergy continues to return value to shareholders. In March 2025, the FE Board declared a $0.02 per share increase to the quarterly common stock dividend payable June 1, 2025, to $0.445 per share, which represents an increase of more than 11% in annual dividend declarations since 2023. Modest dividend growth is expected to enable enhanced shareholder returns, while still allowing for continued substantial regulated investments. Dividend payments are subject to declaration by the FE Board, and future dividend decisions determined by the FE Board may be impacted by earnings growth, credit metrics and other business conditions.

Previous wording

•On November 9, 2023, JCP&L filed a petition for approval of its EnergizeNJ with the NJBPU that would, among other things, support grid modernization, system resiliency and substation modernization in technologies designed to provide enhanced customer benefits. On February 14, 2024, the NJBPU approved the stipulated settlement between JCP&L and various parties, resolving JCP&L’s request for a distribution base rate increase. On February 27, 2024, as part of the stipulated settlement, JCP&L amended its pending EnergizeNJ petition following receipt of NJBPU approval of the base rate case settlement, to remove the high-priority circuits that are to be addressed in the first phase of its reliability improvement plan and to include the second phase of its reliability improvement plan that is expected to further address certain high-priority circuits that require additional upgrades. EnergizeNJ, if approved as amended, will result in the investment of approximately $930.5 million of total estimated costs over five years. JCP&L and various parties are engaged in settlement discussions with respect to the pending EnergizeNJ petition.

Current wording

On November 9, 2023, JCP&L filed a petition for approval of its EnergizeNJ with the NJBPU that would, among other things, support grid modernization, system resiliency and substation modernization in technologies designed to provide enhanced customer benefits. On February 14, 2024, the NJBPU approved the stipulated settlement between JCP&L and various parties, resolving JCP&L’s request for a distribution base rate increase. On February 27, 2024, as part of the stipulated settlement, JCP&L amended its pending EnergizeNJ petition following receipt of NJBPU approval of the base rate case settlement, to remove the high-priority circuits that are to be addressed in the first phase of its reliability improvement plan and to include the second phase of its reliability improvement plan that is expected to further address certain high-priority circuits that require additional upgrades. On April 10, 2025, JCP&L, joined by various parties, filed a stipulated settlement with the NJBPU resolving JCP&L’s amended EnergizeNJ petition. The settlement provides for total program costs of $339 million, including capital investments in JCP&L’s electric distribution system of approximately $203 million, $132 million of matching capital investments and approximately $4 million of O&M expense. Pursuant to the settlement, the program would begin on July 1, 2025, and continue through December 31, 2028, and JCP&L has agreed to file a base rate case no later than January 1, 2030.

Previous wording

•On April 5, 2023, the Ohio Companies sought approval from the PUCO for its ESP V. The proposed plan would maintain an eight-year term beginning June 1, 2024, and seeks to continue riders recovering costs associated with distribution infrastructure investments and approved grid modernization investments. ESP V additionally proposes new riders that would support reliability, and includes provisions supporting affordability and enhancing the customer experience. On May 15, 2024, the PUCO issued an order approving ESP V with modifications, which are described below in “Outlook - State Regulation - Ohio”. On June 14, 2024, the Ohio Companies filed an Application for Rehearing, which was denied by operation of law as the PUCO did not rule on the applications for rehearing within 30 days of filing. Due to the risks and uncertainty resulting from the Ohio Companies’ application for rehearing being denied by operation of law, on October 29, 2024, the Ohio Companies filed a notice of their intent to withdraw ESP V and proposed the terms under which they would resume operating under ESP IV. The Ohio Companies’ application is subject to PUCO review and approval. The Ohio Companies expect to file an application with the PUCO for ESP VI by early next year in an effort to align with the ongoing base distribution rate case proceedings.

Current wording

On April 5, 2023, the Ohio Companies sought approval from the PUCO for their ESP V. The proposed plan would maintain an eight-year term beginning June 1, 2024, and continue riders recovering costs associated with distribution infrastructure investments and approved grid modernization investments. ESP V additionally proposed new riders that would support reliability, and included provisions supporting affordability and enhancing the customer experience. On May 15, 2024, the PUCO issued an order approving ESP V with modifications, which are described below in “Outlook - State Regulation - Ohio”. On June 14, 2024, the Ohio Companies filed an Application for Rehearing, which was denied by operation of law as the PUCO did not rule on the applications for rehearing within 30 days of filing. Due to the risks and uncertainty resulting from the Ohio Companies’ application for rehearing being denied by operation of law, on October 29, 2024, the Ohio Companies filed a notice of their intent to withdraw ESP V and proposed the terms under which they would resume operating under ESP IV, which was approved by the PUCO on December 18, 2024. On January 22, 2025, the PUCO approved the Ohio Companies’ ESP IV compliance tariffs with an effective date of February 1, 2025, at which point the Ohio Companies resumed operating under ESP IV with modifications, as described below in “Outlook - State Regulation - Ohio”. On April 7, 2025, certain intervenors filed an appeal to the Supreme Court of Ohio challenging the Ohio Companies’ return to ESP IV.

Previous wording

•On May 31, 2024, the Ohio Companies filed their application for an increase in base distribution rates, based on a 2024 calendar year test period ending May 31, 2024. The Ohio Companies requested a net increase in base distribution revenues of approximately $94 million with a return on equity of 10.8% and capital structures of 44% debt and 56% equity for CEI, 46% debt and 54% equity for OE, and 45% debt and 55% equity for TE, and reflects a roll-in of current riders such as DCR and AMI. The net increase represents a 1.5% average residential monthly bill increase. Key components of the base rate case filing include a proposal to change pension and OPEB recovery to the delayed recognition method and to implement a mechanism to establish a regulatory asset (or liability) to recover (or refund) net differences between the amount of pension and OPEB expense requested in the proceeding and the actual annual amount each year using this method. Additionally, the Ohio Companies request recovery of certain incurred costs, including the impact of major storms, a program to convert streetlights to LEDs, and others. On June 14, 2024, the Ohio Companies filed supporting testimony and expect by the end of October 2024 to file an update with an adjusted net increase of base distribution revenues and incorporating matters in the rate case as directed by the PUCO’s ESP V order. The Ohio Companies would expect to update their application for an increase in base distribution rates after the PUCO issues its order with respect to the Ohio Companies’ withdrawal of ESP V.

Current wording

On May 31, 2024, the Ohio Companies filed their application for an increase in base distribution rates, based on a 2024 calendar year test period. The Ohio Companies requested a net increase in base distribution revenues of approximately $94 million with a return on equity of 10.8% and capital structures of 44% debt and 56% equity for CEI, 46% debt and 54% equity for OE, and 45% debt and 55% equity for TE, which reflects a roll-in of current riders such as DCR and AMI. The net increase represented a 1.5% average residential monthly bill increase. Key components of the base rate case filing include a proposal to change pension and OPEB recovery to the delayed recognition method and to implement a mechanism to establish a regulatory asset (or liability) to recover (or refund) net differences between the amount of pension and OPEB expense requested in the proceeding and the actual amount each year using this method. Additionally, the Ohio Companies requested recovery of certain incurred costs, including the impact of major storms, a program to convert streetlights to LEDs, and others. On June 14, 2024, the Ohio Companies filed supporting testimony and on July 31, 2024, filed an update with an adjusted net increase of base distribution revenues of approximately $190 million and to incorporate matters in the rate case as directed by the PUCO’s ESP V order. On December 18, 2024, the PUCO issued an order approving the Ohio Companies’ withdrawal of ESP V. On January 22, 2025, the PUCO approved the Ohio Companies’ revised ESP IV tariffs, effective February 1, 2025, at which time the Ohio Companies resumed operating under ESP IV. On January 27, 2025, the Ohio Companies notified the PUCO of their intention to update their application for an increase in base distribution rates to remove ESP V related provisions from the base rate case. The PUCO staff hired a third-party auditor to assist in the review of the Ohio Companies’ base rate case filing and on February 21, 2025, PUCO staff and the third party auditor each filed their reports. The auditor’s report recommended adjustments which would result in a net increase of the Ohio Companies’ base distribution revenues of approximately $8 million with a return on equity of 9.63% and capital structures of 48.8% debt and 51.2% equity for each of the Ohio Companies. PUCO staff’s report takes limited positions on the auditor’s finding and recommendations and makes additional findings. On March 24, 2025, the Ohio Companies, OCC, and other parties filed objections to the PUCO’s staff report and the auditor’s report. In addition, the Ohio Companies filed certain pieces of supplemental testimony and intervenors filed direct testimony. The Ohio Companies and various parties are engaged in settlement discussions with respect to the pending base rate case. Evidentiary hearings are scheduled to begin on May 5, 2025.

Previous wording

On July 21, 2021, FE entered into a three-year DPA with the U.S. Attorney’s Office that, subject to court proceedings, resolves the U.S. Attorney’s Office investigation into FirstEnergy relating to FirstEnergy’s lobbying and governmental affairs activities concerning HB 6 related to the federal criminal allegations made in July 2020, against former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder. Among other things under the DPA, FE paid a $230 million monetary penalty in 2021 and agreed to the filing of a criminal information charging FE with one count of conspiracy to commit honest services wire fraud. The $230 million payment will neither be recovered in rates or charged to FirstEnergy customers, nor will FirstEnergy seek any tax deduction related to such payment. As of July 21, 2024, FirstEnergy has successfully completed the obligations required within the three-year term of the DPA. Under the DPA, FirstEnergy has an obligation to continue (i) publishing quarterly a list of all payments to 501(c)(4) entities and all payments to entities known by FirstEnergy operating for the benefit of a public official, either directly or indirectly; (ii) not making any statements that contradict the DPA; (iii) notifying the U.S. Attorney’s Office of any changes in FirstEnergy’s corporate form; and (iv) cooperating with the U.S. Attorney’s Office until the conclusion of any related investigation, criminal prosecution, and civil proceeding brought by the U.S. Attorney’s Office. Within 30 days of those matters concluding, and FirstEnergy’s successful completion of its remaining obligations, the U.S. Attorney’s Office will dismiss the criminal information.

Current wording

On July 21, 2021, FE entered into a three-year DPA with the U.S. Attorney’s Office that, subject to court proceedings, resolves the U.S. Attorney’s Office investigation into FirstEnergy relating to FirstEnergy’s lobbying and governmental affairs activities concerning HB 6 related to the federal criminal allegations made in July 2020, against former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder. Among other things under the DPA, FE paid a $230 million monetary penalty in 2021 and agreed to the filing of a criminal information charging FE with one count of conspiracy to commit honest services wire fraud. The $230 million payment will neither be recovered in rates or charged to FirstEnergy customers, nor will FirstEnergy seek any tax deduction related to such payment. As of July 22, 2024, FirstEnergy had successfully completed the obligations required within the three-year term of the DPA. Under the DPA, FirstEnergy has an obligation to continue (i) publishing quarterly a list of all payments to 501(c)(4) entities and all payments to entities known by FirstEnergy operating for the benefit of a public official, either directly or indirectly; (ii) not making any statements that contradict the DPA; (iii) notifying the U.S. Attorney’s Office of any changes in FirstEnergy’s corporate form; and (iv) cooperating with the U.S. Attorney’s Office until the conclusion of any related investigation, criminal prosecution, and civil proceeding brought by the U.S. Attorney’s Office, including the January 17, 2025, indictment against two former FirstEnergy senior officers, as described below in “Outlook -- Other Legal Proceedings -U.S. v. Larry Householder, et al.”. Within 30 days of those matters concluding, and FirstEnergy’s successful completion of its remaining obligations, the U.S. Attorney’s Office will dismiss the criminal information.

Previous wording

Despite the many disruptions FirstEnergy has faced, and continues to currently face, the leadership team remains committed and focused on executing its strategy and running the business. See “Outlook - Other Legal Proceedings” below for additional details on the government investigations, the DPA, and ongoing litigation surrounding the investigation of HB 6. See also “Outlook - State Regulation - Ohio” below for details on the PUCO proceeding reviewing political and charitable spending and legislative activity in response to the investigation of HB 6. The outcome of the government investigations, PUCO proceedings, legislative activity, and any of these lawsuits is uncertain and could have a material adverse effect on FirstEnergy’s financial condition, results of operations and cash flows.

Current wording

Despite these events, FirstEnergy has faced, the leadership team remains committed and focused on executing its strategy and running the business. See “Outlook - Other Legal Proceedings” below for additional details on the government investigations, the DPA, and ongoing litigation surrounding the investigation of HB 6. See also “Outlook - State Regulation - Ohio” below for details on the PUCO proceeding reviewing political and charitable spending and legislative activity in response to the investigation of HB 6. The outcome of the PUCO proceedings, legislative activity, and any of these lawsuits is uncertain and could have a material adverse effect on FirstEnergy’s financial condition, results of operations and cash flows.

Previous wording

Summary of Results of Operations — First Nine Months of 2024 Compared with First Nine Months of 2023

Current wording

Summary of Results of Operations — First Quarter 2025 Compared with First Quarter 2024

Previous wording

Financial results for FirstEnergy’s business segments for the third quarter of 2024 and 2023 were as follows:

Current wording

Financial results for FirstEnergy’s business segments for the first quarter of 2025 and 2024 were as follows:

Previous wording

Distribution segment’s earnings attributable to FE from continuing operations increased $18 million in the third quarter of 2024, as compared to the same period of 2023, primarily resulting from higher customer usage as a result of the weather, partially offset by lower weather-adjusted customer usage and demand and lower revenues due to changes in the Ohio DCR that became effective June 1, 2024.

Current wording

Distribution segment’s earnings attributable to FE increased $53 million in the first quarter of 2025, as compared to the same period of 2024, primarily resulting from higher customer usage as a result of the colder weather temperatures and higher revenues associated with the implementation of the Pennsylvania base rate case, partially offset by lower weather-adjusted customer usage and demand, and higher operating expenses.

Previous wording

Distribution services revenues increased $80 million in the third quarter of 2024, as compared to the same period of 2023, primarily resulting from higher customer usage as a result of the weather, lower customer credits associated with the PUCO-approved Ohio Stipulation, and higher rider revenues associated with a Pennsylvania regulated investment program, partially offset by lower rider revenues associated with changes to the Ohio DCR as a result of the PUCO’s ESP V order that became effective June 1, 2024, and lower weather-adjusted customer usage and demand. Additionally, revenues increased due to the higher recovery of transmission expenses, and other FE PA rider rate adjustments, which have no material impact to earnings.

Current wording

Distribution services revenues increased $159 million in the first quarter of 2025, as compared to the same period of 2024, primarily resulting from higher customer usage as a result of the colder weather temperatures, lower customer credits associated with the PUCO-approved Ohio Stipulation, and higher revenues associated with the implementation of the Pennsylvania base rate case, partially offset by lower weather-adjusted customer usage and demand. Additionally, revenues increased due to the higher recovery of transmission expenses, which have no material impact to earnings.

Previous wording

Generation sales revenues decreased $59 million in the third quarter of 2024, as compared to the same period in 2023, primarily due to lower retail generation sales as a result of higher shopping in Ohio, which lowered sales volumes, partially offset by higher non-shopping generation auction rates. Total generation provided by alternative suppliers as a percentage of total MWh deliveries for the Ohio Companies and FE PA in the third quarter of 2024, as compared to the same period of 2023, increased to 90% from 89% in Ohio and decreased slightly to 61% from 62% in Pennsylvania. Retail and wholesale generation sales revenue have no material impact to earnings.

Current wording

Generation sales revenues increased $12 million in the first quarter of 2025, as compared to the same period in 2024, primarily due to higher retail generation sales as a result of colder weather temperatures and lower shopping, which increased sales volumes, partially offset by lower non-shopping generation auction rates. Total generation provided by alternative suppliers as a percentage of total MWh deliveries for the Ohio Companies and FE PA in the first quarter of 2025, as compared to the same period of 2024, decreased to 88% from 89% in Ohio and to 60% from 61% in Pennsylvania. Retail and wholesale generation sales revenues have no material impact to earnings.

Previous wording

•Purchased power costs, which have no material impact to earnings, decreased $262 million during the first nine months of 2024, as compared to the same period of 2023, primarily due to lower generation sales volumes as described above and decreased capacity expenses, partially offset by higher unit costs.

Current wording

•Purchased power costs, which have no material impact to earnings, decreased $32 million during the first quarter of 2025, as compared to the same period of 2024, primarily due to lower unit costs and decreased capacity expenses, partially offset by increased generation sales volumes as described above.

Previous wording

•Higher network transmission expenses of $40 million, which are deferred for future recovery, resulting in no material impact to earnings;

Current wording

•Higher network transmission expenses of $29 million, which are deferred for future recovery, resulting in no material impact to earnings;

Previous wording

•Higher planned vegetation management expenses of $18 million;

Current wording

•Higher planned vegetation management expenses of $5 million, primarily in Pennsylvania as approved and recovering in the base rate case;

Previous wording

•Higher uncollectible expenses of $7 million, which were deferred for future recovery, primarily due to a reduction to the allowance during the second quarter of 2023;

Current wording

•Higher uncollectible expenses of $7 million, which were mostly deferred for future recovery;

Previous wording

Total other expense increased $1 million in the third quarter of 2024, as compared to the same period of 2023, primarily due to higher interest on short-term borrowings and new debt issuances, partially offset by higher capitalized financing costs.

Current wording

•Depreciation expense increased $1 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to a higher asset base.

Previous wording

Distribution services revenues increased $135 million in the first nine months of 2024, as compared to the same period of 2023, primarily resulting from higher revenues from the implementation of base rate cases, higher customer usage as a result of the weather, higher weather-adjusted customer usage and demand, and higher rider revenues associated with certain regulated investment programs. Additionally, revenues increased due to the higher recovery of transmission expenses, which have no material impact to earnings.

Current wording

Distribution services revenues increased $92 million in the first quarter of 2025, as compared to the same period of 2024, primarily resulting from higher customer usage as a result of the colder weather temperatures, higher revenues from the implementation of base rate cases, and higher rider revenues associated with certain regulated investment programs. Additionally, revenues increased due to the higher recovery of transmission expenses, which have no material impact to earnings.

Previous wording

Generation sales revenues increased $107 million in the third quarter of 2024, as compared to the same period of 2023, primarily due to higher retail revenues and lower wholesale revenues.

Current wording

Generation sales revenues increased $140 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to higher retail revenues and higher wholesale revenues.

Previous wording

•Retail generation sales increased $115 million in the third quarter of 2024, as compared to the same period in 2023 primarily due to higher non-shopping generation auction rates and higher customer usage as a result of the weather. Retail generation sales, other than those in West Virginia, have no material impact to earnings.

Current wording

•Retail generation sales increased $123 million in the first quarter of 2025, as compared to the same period in 2024 primarily due to higher non-shopping generation auction rates and higher customer usage as a result of the colder weather temperatures. Retail generation sales, other than those in West Virginia, have no material impact to earnings.

Previous wording

•Wholesale generation revenues decreased $35 million in the first nine months of 2024, as compared to the same period in 2023, primarily due to lower capacity revenues and lower market prices, partially offset by higher sales volumes. The difference between current wholesale generation revenues and certain energy costs incurred is deferred for future recovery or refund, with no material impact to earnings.

Current wording

•Wholesale generation revenues increased $17 million in the first quarter of 2025, as compared to the same period in 2024, primarily due to higher sales volumes, partially offset by lower wholesale rates. The difference between current wholesale generation revenues and certain energy costs incurred is deferred for future recovery or refund, with no material impact to earnings.

Previous wording

Transmission revenues increased $12 million in the third quarter of 2024, as compared to the same period of 2023, primarily due to higher rate base from regulated investment programs.

Current wording

Transmission revenues increased $19 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to a higher rate base from regulated investment programs.

Previous wording

•Fuel costs decreased $27 million during the third quarter of 2024, as compared to the same period of 2023, primarily due to lower unit costs, partially offset by higher consumption volumes. Due to the ENEC, fuel expense has no material impact to earnings.

Current wording

•Fuel costs increased $44 million during the first quarter of 2025, as compared to the same period of 2024, primarily due to higher unit costs and higher consumption volumes. Due to the ENEC, fuel expense has no material impact to earnings.

Previous wording

•$53 million charge at JCP&L in the first quarter 2024 associated with certain corporate support costs recorded to capital accounts from the FERC Audit that were determined, as a result of the base rate case settlement agreement, to be disallowed from future recovery;

Current wording

•The absence of a $53 million pre-tax charge at JCP&L in the first quarter 2024 associated with certain corporate support costs recorded to capital accounts from the FERC Audit that were determined, as a result of the base rate case settlement agreement, to be disallowed from future recovery;

Previous wording

•Higher regulated generation outage spend of $5 million.

Current wording

•Lower other operating expenses of $12 million, primarily due to lower planned regulated generation outage spend and lower maintenance work.

Previous wording

This decrease was partially offset by:

Current wording

The decrease was partially offset by:

Previous wording

•Higher network transmission expenses of $16 million, which were deferred for future recovery, resulting in no material impact to earnings;

Current wording

•Higher energy efficiency and other state mandated program costs of $16 million, which were deferred for future recovery, resulting in no material impact to earnings.

Previous wording

•Depreciation expense increased $16 million in the third quarter of 2024, as compared to the same period of 2023, primarily due to a higher asset base.

Current wording

•Depreciation expense increased $16 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to a higher asset base.

Previous wording

Other expense increased $38 million in the first nine months of 2024, as compared to the same period of 2023, primarily due to the absence of the pension mark-to-market adjustment, higher interest expense on short-term borrowings and long-term debt, and higher non-recoverable charges related to abandoned transmission projects, partially offset by higher capitalized interest.

Current wording

Other expense decreased $16 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to the absence of certain nonrecoverable charges recognized in the first quarter of 2024, lower interest expense as a result of lower average short-term borrowings and long-term debt redemptions since the first quarter of 2024, and higher capitalized interest.

Previous wording

Stand-Alone Transmission Segment’s earnings attributable to FE from continuing operations decreased $64 million in the first nine months of 2024, as compared to the same period of 2023, primarily due to the dilutive effect and discrete tax charge associated with the FET Equity Interest Sale, and higher interest expense, partially offset by higher revenue from regulated investment programs that increased rate base.

Current wording

Stand-Alone Transmission Segment’s earnings attributable to FE decreased $3 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to the dilutive effect of the FET Equity Interest Sale that closed in March 2024, and the expected elimination of the 50 basis point ROE adder associated with ATSI’s RTO membership as a result of the Sixth Circuit ruling in January 2025, partially offset by the absence of a discrete tax charge related to the FET Equity Interest Sale in the first quarter of 2024 and higher revenues from regulated capital investments that increased rate base.

Previous wording

Stand-Alone Transmission’s total revenues increased $36 million, primarily due to a higher rate base and recovery of higher transmission operating expenses.

Current wording

Stand-Alone Transmission’s total revenues increased $53 million, primarily due to a higher rate base and recovery of higher transmission operating expenses, partially offset by the expected elimination of the 50 basis point ROE adder associated with ATSI’s RTO membership as a result of the Sixth Circuit ruling in January 2025.

Previous wording

Total operating expenses increased $29 million in the third quarter of 2024, as compared to the same period of 2023, primarily due to higher depreciation and property tax expenses from a higher asset base and a $11 million impairment charge related to the Akron general office. Other than the impairment charge, nearly all operating expenses are recovered through formula rates, resulting in no material impact to earnings.

Current wording

Total operating expenses increased $36 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to higher depreciation and property tax expenses from a higher asset base as well as higher operating and maintenance expenses. Nearly all operating expenses are recovered through formula rates, resulting in no material impact on current period earnings.

Previous wording

Total other expense increased $16 million in the first nine months of 2024, as compared to the same period of 2023, primarily due to higher interest on short-term borrowings, new debt issuances, and higher non-recoverable charges at TrAIL, partially offset by higher capitalized financing costs.

Current wording

Total other expense was flat in the first quarter of 2025, as compared to the same period of 2024, primarily due to higher interest expenses from new debt issuances since the first quarter of 2024, offset by higher capitalized financing costs and the absence of a prior year non-recoverable charge recorded in the first quarter of 2024.

Previous wording

Stand-Alone Transmission’s effective tax rate was 28.7% and 22.2% for the nine months ended September 30, 2024 and 2023, respectively. The increase in the effective tax rate is primarily due to a discrete tax charge on the FET Equity Interest Sale in the first quarter of 2024.

Current wording

Stand-Alone Transmission’s effective tax rate was 22.9% and 38.0% for the three months ended March 31, 2025 and 2024, respectively. The decrease in the effective tax rate is primarily due to the absence of a discrete tax charge related to the FET Equity Interest Sale in the first quarter of 2024.

Previous wording

Financial results at Corporate/Other resulted in a $44 million increase in losses attributable to FE from continuing operations in the third quarter of 2024, as compared to the same period of 2023, primarily due to:

Current wording

Financial results at Corporate/Other resulted in a $3 million decrease in losses attributable to FE in the first quarter of 2025, as compared to the same period of 2024, primarily due to: