FIRSTENERGY CORP
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
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Segment Information
- SEGMENT INFORMATION
FirstEnergy
FE and its subsidiaries are principally involved in the transmission, distribution and generation of electricity through its reportable segments: Distribution, Integrated and Stand-Alone Transmission. FirstEnergy’s CODM evaluates segment performance based on earnings attributable to FE. The external segment reporting is consistent with the internal financial reports used by FirstEnergy's Chief Executive Officer, its CODM, to regularly assess performance of the business, make operating decisions and allocate resources.
The Distribution segment, which consists of the Ohio Companies and FE PA, distributes electricity through FirstEnergy’s electric operating companies in Ohio and Pennsylvania. The Distribution segment serves approximately 4.3 million customers in Ohio and Pennsylvania across its distribution footprint and purchases power for its provider of last resort, SOS, standard service offer and default service requirements. The segment’s results reflect the costs of securing and delivering electric generation to customers, including the deferral and amortization of certain costs.
The Integrated segment includes the distribution and transmission operations under JCP&L, MP and PE, as well as MP’s regulated generation operations. The Integrated segment distributes electricity to approximately 2 million customers in New Jersey, West Virginia and Maryland across its distribution footprint; provides transmission infrastructure in New Jersey, West Virginia, Maryland and Virginia to transmit electricity and operates 3,604 MWs of regulated net maximum generation capacity located primarily in West Virginia and Virginia. The segment will also include MP and PE’s 50 MWs of solar generation at five sites in West Virginia once complete. The first two solar generation sites were completed and placed in service in 2024, representing 24 MWs of net maximum generation capacity. The remaining three sites are expected to provide 26 MWs of net maximum generation capacity.
The Stand-Alone Transmission segment, which consists of FE's ownership in FET and KATCo, includes transmission infrastructure owned and operated by the Transmission Companies and used to transmit electricity. The segment’s revenues are primarily derived from forward-looking formula rates, pursuant to which the revenue requirement is updated annually based on a projected rate base and projected costs, which is subject to an annual true-up based on actual rate base and costs. The segment’s results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy’s transmission facilities.
Corporate/Other reflects corporate support and other costs not charged or attributable to the Electric Companies or Transmission Companies, including FE’s retained pension and OPEB assets and liabilities of former subsidiaries, interest expense on FE’s holding company debt and other investments or businesses that do not constitute an operating segment, including FEV’s investment of 33-1/3% equity ownership in Global Holding. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the following table of Segment Financial Information. Also included in Corporate/Other for segment reporting is 67 MWs of net maximum generation capacity, representing AE Supply’s OVEC capacity entitlement. As of March 31, 2025, Corporate/Other had approximately $6.5 billion of external FE holding company debt.
Financial information for FirstEnergy’s reportable segments and reconciliations to consolidated amounts is presented below:
| For the Three Months Ended | Distribution | Integrated | Stand-Alone Transmission | Total ReportableSegments | Corporate/ Other | Reconciling Adjustments | FirstEnergy Consolidated |
|---|---|---|---|---|---|---|---|
| (In millions) | |||||||
| External revenues | $1,927 | $1,348 | $486 | $3,761 | $4 | $— | $3,765 |
| Internal revenues | 9 | 1 | 5 | 15 | — | (15) | — |
| Total revenues | $1,936 | $1,349 | $491 | $3,776 | $4 | $(15) | $3,765 |
| Other operating expenses(1) | 627 | 337 | 98 | 1,062 | (25) | (3) | 1,034 |
| Depreciation(1) | 162 | 138 | 91 | 391 | 20 | — | 411 |
| Amortization (deferral) of regulatory assets, net | (19) | 8 | 1 | (10) | — | — | (10) |
| Interest expense(1) | 99 | 65 | 73 | 237 | 79 | (28) | 288 |
| Income taxes (benefits)(1) | 60 | 40 | 40 | 140 | (14) | — | 126 |
| Other expense (income) items(2) | 789 | 625 | 107 | 1,521 | 7 | 28 | 1,556 |
| Earnings attributable to FE | 218 | 136 | 81 | 435 | (75) | — | 360 |
| Cash Flows from Investing Activities: | |||||||
| Capital investments | $265 | $395 | $314 | $974 | $31 | $— | $1,005 |
| External revenues | $1,756 | $1,094 | $434 | $3,284 | $3 | $— | $3,287 |
| Internal revenues | 11 | 1 | 4 | 16 | — | (16) | — |
| Total revenues | $1,767 | $1,095 | $438 | $3,300 | $3 | $(16) | $3,287 |
| Other operating expenses(1) | 587 | 354 | 76 | 1,017 | (8) | (3) | 1,006 |
| Depreciation(1) | 161 | 122 | 81 | 364 | 17 | — | 381 |
| Amortization (deferral) of regulatory assets, net | (88) | (78) | 2 | (164) | — | — | (164) |
| Equity method investment earnings, net | — | — | — | — | 21 | — | 21 |
| Interest expense(1) | 116 | 71 | 65 | 252 | 117 | (64) | 305 |
| Income taxes (benefits)(1) | 41 | 35 | 60 | 136 | (1) | — | 135 |
| Other expense (income) items(2) | 785 | 509 | 70 | 1,364 | (36) | 64 | 1,392 |
| Earnings attributable to FE | 165 | 82 | 84 | 331 | (78) | — | 253 |
| Cash Flows from Investing Activities: | |||||||
| Capital investments | $215 | $313 | $258 | $786 | $4 | $— | $790 |
| Total assets | $20,372 | $18,812 | $13,665 | $52,849 | $1,837 | $(1,915) | $52,771 |
| Total goodwill | $3,222 | $1,953 | $443 | $5,618 | $— | $— | $5,618 |
| Total assets | $19,949 | $18,637 | $13,528 | $52,114 | $1,975 | $(2,045) | $52,044 |
| Total goodwill | $3,222 | $1,953 | $443 | $5,618 | $— | $— | $5,618 |
(1) FirstEnergy considers this line to be a significant expense.
(2) Consists of Fuel, Purchased power, General taxes, Miscellaneous income, net, Capitalized financing costs, and Income attributable to noncontrolling interest.
JCP&L
JCP&L is principally involved in the transmission and distribution of electricity through its reportable segments: Distribution and Transmission. JCP&L's CODM evaluates performance based on net income. The external segment reporting is consistent with the internal financial reports used by JCP&L's President, its CODM, to regularly assess performance of the business, make operating decisions and allocate resources.
JCP&L’s Distribution segment distributes electricity to approximately 1.2 million customers in New Jersey across its distribution footprint and procures electric supply to serve its BGS customers through a statewide auction process approved by the NJBPU. The segment’s results reflect the costs of securing and delivering electric generation to customers, including the deferral and amortization of certain costs.
JCP&L’s Transmission segment includes transmission infrastructure owned and operated by JCP&L and used to transmit electricity. The segment’s revenues are primarily derived from forward-looking formula rates, pursuant to which the revenue requirement is updated annually based on a projected rate base and projected costs, which is subject to an annual true-up based on actual rate base and costs. The segment’s results also reflect the net transmission expenses related to the delivery of electricity on JCP&L’s transmission facilities.
Financial information for JCP&L’s reportable segments and reconciliations are presented below:
| For the Three Months Ended | Distribution | Transmission | Total ReportableSegments | Reconciling Adjustments | JCP&L |
|---|---|---|---|---|---|
| (In millions) | |||||
| External revenues | $505 | $61 | $566 | $— | $566 |
| Internal revenues | 43 | — | 43 | (43) | — |
| Total revenues | $548 | $61 | $609 | $(43) | $566 |
| Other operating expenses(1) | 174 | 14 | 188 | (43) | 145 |
| Depreciation(1) | 53 | 12 | 65 | — | 65 |
| Deferral of regulatory assets, net | (22) | — | (22) | — | (22) |
| Interest expense - other(1) | 22 | 7 | 29 | — | 29 |
| Interest expense - affiliates(1) | 1 | — | 1 | — | 1 |
| Income taxes | 7 | 9 | 16 | — | 16 |
| Other expense (income) items(2) | 289 | (6) | 283 | — | 283 |
| Net Income | 24 | 25 | 49 | — | 49 |
| Cash Flows from Investing Activities: | |||||
| Capital investments | $74 | $132 | $206 | $— | $206 |
| External revenues | $414 | $52 | $466 | $— | $466 |
|---|---|---|---|---|---|
| Internal revenues | 38 | — | 38 | (38) | — |
| Total revenues | $452 | $52 | $504 | $(38) | $466 |
| Other operating expenses(1) | 211 | 14 | 225 | (38) | 187 |
| Depreciation(1) | 50 | 11 | 61 | — | 61 |
| Deferral of regulatory assets, net | (39) | — | (39) | — | (39) |
| Interest expense - other(1) | 23 | 7 | 30 | — | 30 |
| Interest expense - affiliates(1) | 4 | — | 4 | — | 4 |
| Income taxes (benefits) | (11) | 7 | (4) | — | (4) |
| Other expense (income) items(2) | 240 | (5) | 235 | — | 235 |
| Net Income (Loss) | (26) | 18 | (8) | — | (8) |
| Cash Flows from Investing Activities: | |||||
| Capital investments | $71 | $123 | $194 | $— | $194 |
| Total assets | $7,271 | $2,802 | $10,073 | $— | $10,073 |
|---|---|---|---|---|---|
| Total goodwill | $1,213 | $598 | $1,811 | $— | $1,811 |
| Total assets | $7,212 | $2,715 | $9,927 | $— | $9,927 |
| Total goodwill | $1,213 | $598 | $1,811 | $— | $1,811 |
(1) JCP&L considers this line to be a significant expense.
(2) Consists of Purchased power, General taxes, Miscellaneous income, net, Interest income from affiliates, and Capitalized financing costs.
- TRANSACTIONS WITH AFFILIATES
The disclosures in this note apply to JCP&L only.
The affiliated company transactions for JCP&L for the three months ended March 31, 2025 and 2024 are as follows:
| 2025 | 2024 | |
|---|---|---|
| (In millions) | ||
| Revenues | $— | $— |
| Expenses: | ||
| FESC support services (1) | 50 | 43 |
| Other affiliate support services (1) | 4 | 4 |
| Interest income | — | — |
| Interest expense | 1 | 4 |
(1) Includes amounts capitalized.
FE does not bill directly or allocate any of its costs to any subsidiary company. FESC provides corporate support and other services, including executive administration, accounting and finance, risk management, human resources, corporate affairs, communications, information technology, legal services and other similar services at cost, in accordance with its cost allocation manual, to affiliated FirstEnergy companies under FESC agreements. Allocated costs are for services that are provided on behalf of more than one company, or costs that cannot be precisely identified and are allocated using formulas developed by FESC. Intercompany transactions are generally settled under commercial terms within thirty days. JCP&L can also receive charges from and charge affiliates other than FESC at cost.
JCP&L recognizes an allocation of the net periodic pension and OPEB costs/credits from its affiliates, primarily FESC.
Under the FirstEnergy regulated money pool, JCP&L has the ability to borrow from its regulated affiliates and FE to meet its short-term working capital requirements. Affiliated company notes receivables and payables related to the money pool are reported as Notes receivable from affiliated companies or Short-term borrowings - affiliated companies on the Balance Sheets. Affiliate accounts receivable and accounts payable balances relate to intercompany transactions that have not yet settled through the FirstEnergy money pool.
JCP&L is party to an intercompany income tax allocation agreement with FirstEnergy that provides for the allocation of consolidated tax liabilities.
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