FIRSTENERGY CORP

Previous 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:

Current wording

Earnings attributable to FE were $441 million or $0.76 per share (basic and diluted) in the third quarter of 2025 compared to $419 million or $0.73 per share (basic and diluted) in the third quarter of 2024, representing an increase of $22 million that was primarily due to the following:

Previous wording

•The absence of net proceeds from the shareholder derivative lawsuit settlement received in the second quarter of 2024;

Current wording

•The absence of the $62 million (pre-tax) impairment charge related to the Akron general office in the third quarter of 2024; and

Previous 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

Current wording

•$21 million (pre-tax) of 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

Total other expense increased $5 million in the second quarter of 2025, as compared to the same period of 2024, primarily due to higher interest expenses from debt issuances since the second quarter of 2024, partially offset by higher capitalized financing costs.

Current wording

•Higher interest expenses from debt issuances since the third quarter of 2024.

Previous wording

Residential and commercial distribution deliveries were impacted by lower customer usage as a result of the weather. Cooling degree days in the second quarter of 2025 were 20% below the same period of 2024 and 7% above normal. Heating degree days in the second quarter of 2025 were 30% above the same period of 2024 and 4% below normal.

Current wording

Actual distribution deliveries for each customer class were essentially flat in the third quarter of 2025 compared to the same period of 2024. Cooling degree days in the third quarter of 2025 were 7% below the same period of 2024 and 2% below normal. Heating degree days in the third quarter of 2025 were 66% above the same period of 2024 and 30% below normal.

Previous wording

Earnings attributable to FE was $628 million or $1.09 per share (basic and diluted) in the first six months of 2025 compared to $298 million or $0.52 per share (basic and diluted) in the first six months of 2024, representing an increase of $330 million that was primarily due to the following:

Current wording

Earnings attributable to FE were $1,069 million or $1.85 per share (basic and diluted) in the first nine months of 2025 compared to $717 million or $1.25 per basic share ($1.24 per share diluted) in the first nine months of 2024, representing an increase of $352 million that was primarily due to the following:

Previous wording

•The absence of $207 million (pre-tax) in charges related to changes in ARO liabilities associated with final CCR rules and McElroy’s Run in the second quarter of 2024;

Current wording

•The absence of $207 million (pre-tax) in charges related to changes in ARO liabilities associated with CCR rules and McElroy’s Run in the second quarter of 2024;

Previous wording

•The absence of discrete tax charges related to the FET Equity Interest Sale and PA Consolidation in the first quarter of 2024.

Current wording

•Higher income tax benefits related to a remeasurement of excess deferred income taxes in the third quarter of 2025 and the absence of discrete tax charges related to the FET Equity Interest Sale and PA Consolidation in the first quarter of 2024, partially offset by lower deductions associated with certain equity method investments.

Previous wording

•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

•The absence of a $60 million (pre-tax) benefit associated with the approval by the WVPSC to recover costs of certain retired generation stations in the first quarter of 2024;

Previous wording

•Lower other operating expenses, primarily due to increased construction support and lower maintenance work;

Current wording

•Higher other operating expenses, primarily due to higher employee benefit costs, planned vegetation management expenses, and higher uncollectible expense, partially offset by increased construction support and lower maintenance work;

Previous 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.

Current wording

Actual distribution deliveries for each customer class were slightly impacted by higher customer usage and demand. Cooling degree days in the first nine months of 2025 were 11% below the same period of 2024 and 1% above normal. Heating degree days in the first nine months of 2025 were 18% above the same period of 2024 and 1% below normal.

Previous wording

On July 16, 2025, FEV sold its entire 33-1/3% equity ownership in Global Holding, the holding company for a joint venture in the Signal Peak mining and coal transportation operations, to WMB Marketing Ventures, LLC and Pinesdale LLC for $47.5 million, which approximates the book value of the investment as of June 30, 2025.

Current wording

On July 16, 2025, FEV sold its entire 33-1/3% equity ownership in Global Holding, the holding company for a joint venture in the Signal Peak mining and coal transportation operations, at book value to WMB Marketing Ventures, LLC and Pinesdale LLC for $47.5 million.

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, 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.

Current wording

As further discussed below in “Outlook – Environmental Matters – Regulation of Waste Disposal,” 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 2024 CCR rules.

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. During the second quarter of 2025, AE Supply made a $31 million cash payment to the escrow account.

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 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 nine months ended September 30, 2025, AE Supply made $46 million of cash payments 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. 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.

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 13, 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 the other open rate design matters are being addressed in confidential settlement negotiations.

Previous 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.

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. On September 23, 2025, the FE Board declared a quarterly dividend of $0.445 per share of outstanding common stock payable December 1, 2025, to shareholders of record at the close of business on November 7, 2025.

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

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. On May 22, 2025, the Supreme Court of Ohio granted the Ohio Companies motion to intervene in the appeal as appellees. On July 7, 2025, OCC and NOAC filed their Appellants’ brief. Appellees, including the Ohio Companies, filed their briefs on August 26, 2025, to which the OCC and NOAC replied on September 15, 2025.

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 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.

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

Excerpt shortened here; the source contains the full paragraph.

Previous wording

On May 15, 2025, the Ohio Governor signed legislation known as HB 15 that, among other things, eliminates ESPs, requires triennial base rate cases and allows them to be based on a three-year forecasted test period, expedites PUCO review and disposition of future base rate cases, imposes annual reliability reporting, increases protections for customers shopping with third-party suppliers, requires EDUs to develop and publicly share distribution system hosting capacity maps, and reduces certain transmission and distribution property taxes beginning with property in-serviced in 2026. The legislation becomes effective August 14, 2025.

Current wording

On May 15, 2025, the Ohio Governor signed legislation known as HB 15 that, among other things, eliminates ESPs, requires triennial base rate cases and allows them to be based on a three-year forecasted test period, expedites PUCO review and disposition of future base rate cases, imposes annual reliability reporting, increases protections for customers shopping with third-party suppliers, requires EDUs to develop and publicly share distribution system hosting capacity maps, and reduces certain transmission and distribution property taxes beginning with property in-serviced in 2026. The legislation became effective August 14, 2025.

Previous wording

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

Current wording

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

Previous wording

Additionally, revenues increased due to the higher recovery of transmission expenses, which have no material impact to earnings.

Current wording

Distribution services revenues increased $106 million in the third quarter of 2025, as compared to the same period of 2024, primarily resulting from higher revenues associated with the implementation of the Pennsylvania base rate case, higher customer usage and demand and lower customer credits associated with the PUCO-approved Ohio Stipulation. Additionally, revenues increased due to the higher recovery of transmission expenses, which have no material impact to earnings.

Previous wording

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

Current wording

•Higher network transmission expenses of $13 million, which are deferred for future recovery, resulting in no material impact to earnings;

Previous wording

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

Current wording

•Higher planned vegetation management expenses of $12 million, primarily in Pennsylvania as approved and recovering in the base rate case;

Previous wording

•Depreciation expense increased $2 million in the second quarter of 2025, as compared to the same period of 2024, primarily due to a higher asset base.

Current wording

•Depreciation expense increased $2 million in the third quarter of 2025, as compared to the same period of 2024, primarily due to a higher asset base.

Previous 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.

Current wording

•Deferral of regulatory assets decreased $101 million in the third quarter of 2025, as compared to the same period of 2024, primarily due to a $107 million decrease from lower deferred storm restoration expenses and a $21 million net decrease in other deferrals, partially offset by a $17 million net increase in generation and transmission related deferrals and $10 million of higher net 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.

Previous 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.

Current wording

•General taxes increased $13 million in the third quarter of 2025, as compared to the same period of 2024, primarily due to higher property and gross receipts taxes.

Previous wording

Other expense decreased $6 million in the second quarter of 2025, as compared to the same period of 2024, primarily due to lower interest expense as a result of long-term debt redemptions since the second quarter of 2024 and lower average short-term borrowings, partially offset by lower interest income on regulated money pool investments.

Current wording

Other expense was flat in the third quarter of 2025, as compared to the same period of 2024, primarily due to lower interest expense as a result of long-term debt redemptions since the third quarter of 2024 and lower average short-term borrowings being offset by lower interest income on regulated money pool investments.

Previous wording

•Retail generation sales increased $55 million in the second quarter of 2025, as compared to the same period in 2024 primarily due to higher non-shopping generation auction rates, partially offset by lower customer usage as a result of the milder weather temperatures. Retail generation sales, other than those in West Virginia, have no material impact to earnings.

Current wording

•Retail generation sales increased $112 million in the third quarter of 2025, as compared to the same period in 2024, primarily due to higher non-shopping generation auction rates, partially offset by lower customer usage. Retail generation sales, other than those in West Virginia, have no material impact to earnings.

Previous 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.

Current wording

•Wholesale generation revenues increased $79 million in the third quarter of 2025, as compared to the same period in 2024, primarily due to higher capacity revenues and wholesale rates, partially offset by lower sales volumes. The

Previous 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.

Current wording

•Fuel costs increased $24 million during the third quarter of 2025, as compared to the same period of 2024, primarily due to higher unit costs, partially offset by lower consumption volumes. Due to the ENEC, fuel expense has no material impact to earnings.

Previous wording

•Purchased power costs, which have no material impact to earnings, increased $69 million during the second quarter of 2025, as compared to the same period of 2024, primarily due to higher unit costs and capacity expenses, partially offset by lower sales volumes.

Current wording

•Purchased power costs, which have no material impact to earnings, increased $147 million during the third quarter of 2025, as compared to the same period of 2024, primarily due to higher unit costs and capacity expenses, partially offset by lower sales volumes.

Previous wording

•Higher network transmission expenses of $20 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 $20 million, which were deferred for future recovery, resulting in no material impact to earnings; and

Previous wording

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

Current wording

•Higher other operating expenses of $22 million, primarily due to higher employee benefit costs, higher material and contractor spend and higher regulated generation outage spend, partially offset by increased construction support and lower maintenance work.

Previous wording

Net income increased $9 million in the second quarter of 2025, as compared to the same period of 2024, primarily due to higher revenues from regulated transmission investments that increased rate base, higher capitalized financing costs and the absence of a non-recoverable charge related to an abandoned transmission project in the second quarter 2024.

Current wording

•Depreciation expense increased $9 million in the third quarter of 2025, as compared to the same period of 2024, primarily due to a higher asset base.

Previous wording

Other expense decreased $7 million in the second quarter of 2025, as compared to the same period of 2024, primarily due to lower interest expense as a result of lower average short-term borrowings and higher capitalized interest, partially offset by new debt issuances since the second quarter of 2024.

Current wording

Other expense decreased $2 million in the third quarter of 2025, as compared to the same period of 2024, primarily due to lower interest expense as a result of lower average short-term borrowings and higher capitalized interest, partially offset by higher interest from new debt issuances since the third quarter of 2024.

Previous wording

Stand-Alone Transmission Segment’s earnings attributable to FE decreased $6 million in the second quarter of 2025, as compared to the same period of 2024, primarily due to 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, and true-up adjustments from the annual forward looking transmission rate filings, partially offset by higher revenues from regulated capital investments that increased rate base.

Current wording

Stand-Alone Transmission Segment’s earnings attributable to FE increased $50 million in the third quarter of 2025, as compared to the same period of 2024, primarily due to a discrete tax benefit related to a remeasurement of excess deferred income taxes and higher revenues from regulated capital investments that increased rate base, 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

Stand-Alone Transmission’s total revenues decreased $12 million, primarily due to 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 and true-up adjustments from the annual forward looking transmission rate filings, partially offset by a higher rate base.

Current wording

Stand-Alone Transmission’s total revenues increased $13 million, primarily due to higher rate base, partially offset by the recovery of lower operating expenses 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.

Previous 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:

Current wording

Financial results at Corporate/Other resulted in a $51 million increase in losses attributable to FE in the third quarter of 2025, as compared to the same period of 2024, primarily due to:

Previous 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;

Current wording

•$16 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

•$5 million (after-tax) due to lower pension/OPEB non-service credits; and

Current wording

•$5 million (after-tax) due to lower pension/OPEB non-service credits.