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. As of March 31, 2025, 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 EDCs 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 June 30, 2025, AGC and MP control 3,610 MWs of net maximum generation capacity.

Previous 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:

Current wording

Earnings attributable to FE was $268 million or $0.46 per share (basic and diluted) in the second quarter of 2025 compared to $45 million or $0.08 per share (basic and diluted) in the second quarter of 2024, representing an increase of $223 million that was primarily due to the following:

Previous wording

•Lower weather-adjusted customer usage and demand;

Current wording

•Lower customer usage as a result of the milder weather temperatures and lower weather-adjusted customer usage and demand;

Previous wording

•The expected elimination of ATSI’s 50 basis point adder associated with RTO membership as a result of the Sixth Circuit ruling in January 2025;

Current wording

•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

•Lower investment earnings related to FEV’s equity method investment in Global Holding;

Current wording

•Lower investment earnings related to FEV’s equity method investment in Global Holding, which as discussed above, was sold on July 16, 2025; and

Previous wording

•The absence of a $53 million charge at JCP&L in connection with the base rate case settlement agreement in the first quarter of 2024, as further discussed below;

Current wording

•The absence of a $53 million (pre-tax) charge at JCP&L in connection with the base rate case settlement agreement in the first quarter of 2024, as further discussed below;

Previous wording

•Higher revenues associated with the implementation of base rate cases in New Jersey, West Virginia and Pennsylvania;

Current wording

•Higher earnings associated with the implementation of base rate cases in New Jersey, West Virginia and Pennsylvania;

Previous wording

•Higher customer usage as a result of the colder weather temperatures;

Current wording

•Higher customer usage and demand;

Previous 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.

Current wording

Residential and commercial distribution deliveries were impacted by higher customer usage as a result of the weather. Cooling degree days in the first six months of 2025 were 20% below the same period of 2024 and 7% above normal. Heating degree days in the first six months of 2025 were 17% above the same period of 2024 and flat to normal.

Previous wording

During 2024, as a result of the evaluation of closure options for McElroy’s Run and the adjacent landfill, AE Supply reviewed its ARO and future expected costs to remediate, resulting in an increase to the ARO liability of $87 million. AE Supply transferred the McElroy’s Run CCR impoundment facility and adjacent dry landfill and related remediation obligations on March 4, 2025, pursuant to the environmental liability transfer agreement dated February 3, 2025, with a subsidiary of IDA Power, LLC. Pursuant to the agreement, AE Supply established a $160 million escrow account that AE Supply will fund over five years and is secured by a surety bond, which is guaranteed by FE. In connection with the transfer, AE Supply made a $15 million cash payment to the escrow account, recognized a $130 million liability, based on a 4.8% weighted average discount rate over the contract term, associated with its remaining obligation to fund the escrow account over the next five years, and derecognized the ARO, resulting in an immaterial impact to earnings.

Current wording

During 2024, as a result of the evaluation of closure options for McElroy’s Run and the adjacent landfill, AE Supply reviewed its ARO and future expected costs to remediate, resulting in an increase to the ARO liability of $87 million. AE Supply transferred the McElroy’s Run CCR impoundment facility and adjacent dry landfill and related remediation obligations on March 4, 2025, pursuant to the environmental liability transfer agreement dated February 3, 2025, with a subsidiary of IDA Power, LLC. Pursuant to the agreement, AE Supply established a $160 million escrow account that AE Supply will fund over five years and is secured by a surety bond, which is guaranteed by FE. In connection with the transfer, AE Supply made a $15 million cash payment to the escrow account, recognized a $130 million liability, based on a 4.8% weighted average discount rate over the contract term, associated with its remaining obligation to fund the escrow account over the next five years, and derecognized the ARO, resulting in an immaterial impact to earnings. During the second quarter of 2025, AE Supply made a $31 million cash payment to the escrow account.

Previous 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.

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. On May 14, 2025, FERC issued an initial order that, among other things, accepted the requested abandonment rate incentive, CWIP rate incentive, RTO participation adder incentive, and precommercial regulatory asset rate incentive, and allowed the formula rate to go into effect on May 14, 2025, as requested, subject to refund, pending further settlement and hearing proceedings. An initial settlement conference was held on June 26, 2025, and a procedural schedule for the initial phase of the settlement process was agreed upon. The capital structure incentive and open rate design matters are being addressed in confidential settlement negotiations.

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. 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.

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 began on July 1, 2025, and will 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 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.

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

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. 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.

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 were held between May 5 and 29, 2025, with the ALJ granting the joint motion to take administrative notice in part and denied it in part. Initial and…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

•Higher network transmission expenses of $15 million, which are deferred for future recovery, resulting in no material impact to earnings;

Previous wording

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

Current wording

•Higher planned vegetation management expenses of $3 million, primarily in Pennsylvania as approved and recovering in the base rate case;

Previous 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.

Current wording

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

Previous wording

•General taxes increased $18 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to higher property and gross receipts taxes.

Current wording

•General taxes increased $5 million in the second quarter of 2025, as compared to the same period of 2024, primarily due to higher property and gross receipts taxes.

Previous wording

◦Depreciation expense increased $3 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to a higher asset base.

Current wording

Distribution services revenues increased $3 million in the second quarter of 2025, as compared to the same period of 2024, primarily resulting from higher revenues from the implementation of the base rate case in New Jersey, and higher rider revenues associated with certain regulated investment programs, partially offset by lower customer usage as a result of the milder weather temperatures and 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

•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.

Current wording

•Wholesale generation revenues increased $40 million in the second quarter of 2025, as compared to the same period in 2024, primarily due to higher capacity revenues, sales volumes and 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

•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.

Current wording

•Fuel costs increased $40 million during the second 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

Distribution segment’s effective tax rate was 21.6% and 19.9% for the three months ended March 31, 2025 and 2024, respectively. The increase in the effective tax rate is primarily due to lower tax benefits from state flow-through and an increase in the amortization of excess deferred income taxes.

Current wording

Integrated segment’s effective tax rate was 23.2% and 25.0% for the three months ended June 30, 2025 and 2024, respectively. The decrease in the effective tax rate was primarily due to an increase in tax benefits from AFUDC equity flow-through and amortization of excess deferred income taxes.

Previous 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:

Current wording

Financial results at Corporate/Other resulted in a $128 million decrease in losses attributable to FE in the second quarter of 2025, as compared to the same period of 2024, primarily due to:

Previous wording

•$16 million (after-tax) in lower investment earnings related to FEV’s equity method investment in Global Holding.

Current wording

•$15 million (after-tax) in lower investment earnings related to FEV’s equity method investment in Global Holding, which as discussed above, was sold on July 16, 2025;

Previous 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.

Current wording

Distribution segment’s earnings attributable to FE increased $146 million in the first six months of 2025, as compared to the same period of 2024, primarily resulting from higher customer usage as a result of the colder weather temperatures in the first quarter 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 $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.

Current wording

Distribution services revenues increased $199 million in the first six months of 2025, as compared to the same period of 2024, primarily resulting from higher customer usage as a result of the colder weather temperatures in the first quarter, 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 the milder weather temperatures in the second quarter and 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 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.

Current wording

Generation sales revenues decreased $3 million in the first six months of 2025, as compared to the same period in 2024, primarily due to lower non-shopping generation auction rates and the milder weather temperatures in the second quarter, partially offset by higher retail generation sales as a result of the colder weather temperatures in the first quarter and lower shopping, which increased sales volumes. Total generation provided by alternative suppliers as a percentage of total MWh deliveries for the Ohio Companies and FE PA in the first six months of 2025, as compared to the same period of 2024, decreased to 89% from 90% in Ohio and to 62% from 63% in Pennsylvania. Retail and wholesale generation sales revenue have no material impact to earnings.

Previous 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.

Current wording

•Purchased power costs, which have no material impact to earnings, decreased $25 million during the first six months of 2025, as compared to the same period of 2024, primarily due to lower unit costs, partially offset by increased generation sales volumes as described above.

Previous wording

•Higher network transmission expenses of $22 million, which were deferred for future recovery, resulting in no material impact to earnings;

Current wording

•Higher storm restoration expenses of $22 million, which were deferred for future recovery;

Previous wording

•Deferral of regulatory assets decreased $69 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to a $69 million net decrease in generation and transmission related deferrals, and a $30 million decrease from lower deferred storm restoration expenses, partially offset by a $10 million net increase in other deferrals, and $20 million of higher amortization expenses resulting from recovery of previously deferred storm costs and customer assistance programs from the implementation of the Pennsylvania base rate case in 2025.

Current wording

•Deferral of regulatory assets increased $20 million in the first six months of 2025, as compared to the same period of 2024, primarily due to a $22 million increase from higher deferred storm restoration expenses, $22 million of higher amortization expenses resulting from recovery of previously deferred storm costs and customer assistance programs from the implementation of the Pennsylvania base rate case in 2025, and a $14 million net increase in other deferrals, partially offset by a $38 million net decrease in generation and transmission related deferrals.

Previous wording

Other expense increased $1 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to lower interest income on regulated money pool investments being offset by lower interest expense as a result of long-term debt redemptions since the first quarter of 2024, partially offset by higher average short-term borrowings.

Current wording

Other expense increased $5 million in the first six months of 2025, as compared to the same period of 2024, primarily due to lower interest income on regulated money pool investments, partially offset by lower interest expense as a result of long-term debt redemptions since the first quarter of 2024.

Previous wording

Integrated segment’s earnings attributable to FE increased $54 million in the first quarter of 2025, as compared to the same period of 2024, primarily due to the implementation of base rate cases in New Jersey and West Virginia, higher customer usage and demand, higher revenues from regulated investment programs, lower operating expenses, and the absence of a $53 million charge at JCP&L in connection with the base rate case settlement agreement in the first quarter of 2024, as further discussed below, partially offset by costs associated with the announced organizational changes and the absence of a benefit associated with the approval by the WVPSC to recover costs of certain retired generation stations in the first quarter of 2024.

Current wording

Integrated segment’s earnings attributable to FE increased $62 million in the first six months of 2025, as compared to the same period of 2024, primarily due to the implementation of base rate cases in New Jersey and West Virginia, higher customer usage and demand, higher revenues from regulated investment programs, lower operating expenses, and the absence of a $53 million charge at JCP&L in connection with the base rate case settlement agreement in the first quarter of 2024, as further discussed below, partially offset by costs associated with the announced organizational changes and the absence of a benefit associated with the approval by the WVPSC to recover costs of certain retired generation stations in the first quarter of 2024.

Previous 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.

Current wording

Distribution services revenues increased $95 million in the first six months of 2025, as compared to the same period of 2024, primarily resulting from higher customer usage as a result of the colder weather temperatures in the first quarter, higher revenues from the implementation of base rate cases, and higher rider revenues associated with certain regulated investment programs.

Previous 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.

Current wording

•Retail generation sales increased $178 million in the first six months 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 in the first quarter. Retail generation sales, other than those in West Virginia, have no material impact to earnings.

Previous 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.

Current wording

Transmission revenues increased $14 million in the first six months of 2025, as compared to the same period of 2024, primarily due to higher rate base from regulated investment programs, partially offset by recovery of lower transmission operating expenses.

Previous wording

•Higher energy efficiency and other state mandated program costs of $19 million, which were deferred for future recovery, resulting in no material impact to earnings; and

Current wording

•Lower storm restoration expenses of $19 million, which were mostly deferred for future recovery;

Previous wording

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

Current wording

•Lower formula rate transmission operating and maintenance expenses of $7 million; and

Previous wording

•Lower storm restoration expenses of $4 million, which were mostly deferred for future recovery; and

Current wording

•Higher uncollectible expenses of $4 million, which were mostly deferred for future recovery; and

Previous wording

•Lower storm restoration expenses of $30 million, which were deferred for future recovery; and

Current wording

•Higher energy efficiency and other state mandated program costs of $30 million, which were deferred for future recovery, resulting in no material impact to earnings.