FIRSTENERGY CORP
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
View on SEC.govAbout this filing
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.
Jun 30, 2026 · Filed Jul 28, 2026
FE$46.43-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-28.
0001031296-26-000085
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsJersey Central Power & Light CompanyCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0001031296-26-000123
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsJersey Central Power & Light CompanyThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 369 previous paragraphs and 480 current paragraphs.
176 unchanged; 134 reworded; 141 added; 56 removed; 3 previous and 29 current paragraphs rearranged.
Tables are not compared: 26 previous and 37 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (141)
Current report
PJM RTEP Open Window Projects
Current report
On April 22, 2026, the Ohio Companies filed with the PUCO a notice of their intent to file a three-year rate plan, requesting approval of three consecutive, annual test periods that begin July 1, 2027 and end June 30, 2030. The Ohio Companies filed their applications for an increase in their distribution rates on May 22, 2026. The application proposes net increases in the Ohio Companies’ base distribution revenues of approximately $254 million in the first year, approximately $59 million in the second year, and approximately $80 million in the third year, with a return on equity of 10.2% and a capital structure of approximately 47% debt and approximately 53% equity for all three Ohio Companies. On June 12, 2026, PUCO staff issued a deficiency letter requesting additional supplementation in certain areas, which the Ohio Companies provided on June 22, 2026. On July 1, 2026, an administrative law judge deemed the application complete and set a procedural schedule. Evidentiary hearings are set to begin March 1, 2027.
Current report
On May 15, 2026, MP and PE filed a base rate proceeding proposing an increase in electric rates of $188.4 million, an approximate 10.6% increase in total revenues. The filing includes a base rate increase of $174.6 million and a proposed reliability program and surcharge of $13.8 million. As an alternative, MP and PE requested a phased approach of two increases of $37.9 million effective August 1, 2026, and $37.6 million effective June 1, 2027, with a commitment to abstain from filing another base rate case until April 1, 2028. The WVPSC issued a procedural order on May 21, 2026, on the alternative two-phase approach setting it for hearing on July 9, 2026. On June 11, 2026, the WVPSC staff filed a motion to dismiss, which the WVPSC denied on July 2, 2026. An order is expected from the WVPSC by the end of July 2026. If approved as proposed, new rates associated with the first phase would become effective in August 2026.
Current report
On May 12, 2026, the governor of Maryland signed the Utility RELIEF Act into law. Among other things, the legislation temporarily limits the use of forecasted costs in certain rate proceedings, modifies the standards by which the MDPSC may approve multi-year rate plans, mandates RTO participation, requires additional review of utility spending and cost recovery, eliminates certain utility earnings incentives, imposes restrictions on recovery of certain administrative compensation costs and includes provisions designed to allocate certain transmission and distribution upgrade costs associated with large-load customers, including data centers, to those customers rather than to the broader customer base. FirstEnergy is currently assessing the full extent of the legislation’s impacts, but the Utility RELIEF Act may affect PE’s timing and amount of cost recovery, authorized returns, customer rate structures, infrastructure investment planning, and future earnings opportunities. See “Outlook - State Regulation - Maryland” and “Outlook – FERC Regulatory Matters – RTO Participation ROE Incentive,” in Item 2., "Management's Discussion and Analysis of Financial Condition and Results of Operations" for a more fulsome discussion of the current Utility RELIEF Act impacts to PE.
Current report
Regulatory Matters – New Jersey
Current report
JCP&L expects to file a base rate case in August 2026.
Current report
Second Quarter of 2026 Compared with Second Quarter of 2025
Current report
•The absence in 2026 of customer credits associated with the PUCO-approved Ohio Stipulation recognized in 2025;
Current report
•The absence in 2026 of debt redemption costs recognized in 2025;
Current report
•A reduction in ARO liabilities associated with CCR rules based on the completion of engineering studies and field analysis of certain sites; and
Current report
•Higher capitalized financing costs.
Current report
•Higher other operating expenses from planned maintenance expenses;
Current report
•Lower customer usage and demand;
Current report
•Higher interest expenses from new long-term debt and convertible note issuances, net of redemptions and repayments; and
Current report
Distribution deliveries in the second quarter of 2026 for the residential and commercial customer classes were lower than the same period of 2025 due to the impact of the milder weather temperatures. Cooling degree days in the second quarter of 2026 were consistent with the same period of 2025 and 6% above normal. Heating degree days in the second quarter of 2026 were 5% below the same period of 2025 and 8% below normal. Industrial deliveries in the second quarter of 2026 compared to the same period of 2025 increased primarily due to growth in the manufacturing sector.
Current report
FIRSTENERGY’S CONSOLIDATED RESULTS OF OPERATIONS
Current report
First Six Months of 2026 Compared with First Six Months of 2025
Current report
•Higher transmission revenues from regulated capital investments that increased rate base and true-up adjustments from the annual forward-looking transmission rate filing;
Current report
•The absence in 2026 of customer credits associated with the PUCO-approved Ohio Stipulation recognized in 2025;
Current report
•The absence in 2026 of severance and related costs that were recognized in the first quarter of 2025;
Current report
•Higher capitalized financing costs;
Current report
•A reduction in ARO liabilities associated with CCR rules based on the completion of engineering studies and field analysis of certain sites; and
Current report
•The absence in 2026 of debt redemption costs recognized in 2025.
Current report
•Higher other operating expenses from planned maintenance expenses; and
Current report
•Higher interest expenses from new long-term debt and convertible note issuances, net of redemptions and repayments.
Current report
Distribution deliveries in the first six months of 2026 for the commercial customer class were higher than the same period of 2025, while deliveries to residential customers decreased slightly. Cooling degree days in the first six months of 2026 were 1% above the same period of 2025 and 7% above normal. Heating degree days in the first six months of 2026 were 1% above the same period of 2025 and 1% above normal. Industrial deliveries in the second quarter of 2026 compared to the same period of 2025 increased primarily due to growth in the oil and gas extraction and manufacturing sectors.
Current report
Summary of Results of Operations — Second Quarter 2026 Compared with Second Quarter 2025
Current report
Distribution Segment — Second Quarter of 2026 Compared with Second Quarter of 2025
Current report
Distribution segment’s earnings attributable to FE decreased $18 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to lower customer usage as a result of the milder weather temperatures, higher planned other operating expenses, and higher net financing costs, partially offset by the absence in 2026 of customer credits associated with the PUCO-approved Ohio Stipulation recognized in 2025 and higher pension and OPEB non-service credits.
Current report
Distribution segment’s total revenues increased $39 million as a result of the following sources:
Current report
Total operating expenses increased $63 million, primarily due to:
Current report
•Purchased power costs, which have no material impact to earnings, increased $91 million during the second quarter of 2026, as compared to the same period of 2025, primarily due to higher unit costs as described above.
Current report
•Higher other operating expenses of $28 million, primarily due to planned maintenance expenses.
Current report
•A $10 million reduction in ARO liabilities associated with CCR rules based on the completion of engineering studies and field analysis of certain sites.
Current report
•Deferral of regulatory assets increased $65 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to higher deferred storm restoration expenses of $5 million, a $99 million increase in the amortization of a regulatory liability as a result of providing restitution and refunds to Ohio customers, as further discussed below, partially offset by a $7 million net decrease in generation and transmission deferrals, a $7 million decrease from lower deferral of costs associated with customer assistance programs, an $11 million increase in amortization associated with recovery of previously incurred storm costs and a $14 million net decrease in other deferrals.
Current report
Other expense increased $4 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to higher interest expense as a result of new debt issuances since the second quarter of 2025 and lower capitalized interest, partially offset by higher pension and OPEB non-service credits.
Current report
Distribution segment’s effective tax rate was 18.8% and 21.1% for the three months ended June 30, 2026, and 2025, respectively. The decrease in the effective tax rate was primarily due to increases in tax benefits associated with state flow-through and a remeasurement of the reserve for an uncertain tax position in the second quarter of 2026.
Current report
Integrated Segment — Second Quarter of 2026 Compared with Second Quarter of 2025
Current report
Integrated segment’s earnings attributable to FE increased $7 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to higher transmission revenues from regulated capital investments that increased rate base, true-up adjustments from the annual forward-looking transmission rate filing and increased customer usage and demand.
Current report
Integrated segment’s total revenues increased $173 million as a result of the following sources:
Showing the first 40 of 141 passages. Open the source sections for the rest.
Removed paragraphs (56)
Previous report
PJM RTEP Long-Term Proposal Window Projects
Previous report
On April 22, 2026, the Ohio Companies submitted the required pre-filing notice to the PUCO of their intent to file a Three-Year Rate Plan with the PUCO in May 2026 that includes plans to invest on average $800 million annually to focus on improving reliability for customers. New rates are expected to become effective in mid-2027.
Previous report
First Three Months of 2026 Compared with First Three Months of 2025
Previous report
•Higher customer usage and demand due to the colder weather temperatures;
Previous report
•The absence of customer credits associated with the PUCO-approved Ohio Stipulation in 2025;
Previous report
•The absence of severance and related costs associated with FirstEnergy’s organizational changes announced in the first quarter of 2025;
Previous report
•Lower other operating expenses, including vegetation management work that was accelerated in 2025; and
Previous report
•Higher net periodic pension and OPEB credits.
Previous report
•Higher non-deferred storm restoration costs; and
Previous report
•Higher interest expenses from long-term debt issuances since the first quarter of 2025.
Previous report
Distribution services by customer class are summarized in the following table:
Previous report
(1) Includes street lighting.
Previous report
Summary of Results of Operations — First Three Months of 2026 Compared with First Three Months of 2025
Previous report
Distribution Segment — First Three Months of 2026 Compared with First Three Months of 2025
Previous report
Distribution segment’s total revenues increased $54 million as a result of the following sources:
Previous report
Total operating expenses increased $22 million, primarily due to:
Previous report
•Other operating expenses increased $89 million in the first three months of 2026, as compared to the same period of 2025, primarily due to:
Previous report
•Higher energy efficiency and other state mandated program costs of $22 million, which were deferred for future recovery, resulting in no material impact to earnings; and
Previous report
•Higher storm restoration expenses of $72 million, which were mostly deferred for future recovery.
Previous report
•The absence of $13 million of severance and related costs associated with FirstEnergy’s organizational changes announced in the first quarter of 2025; and
Previous report
•Lower other operating expense of $5 million, primarily due to lower other employee benefit costs and increased construction support and lower maintenance work, partially offset by higher contractor expenses.
Previous report
Distribution segment’s effective tax rate was 20.6% and 21.6% for the three months ended March 31, 2026 and 2025, respectively.
Previous report
Integrated Segment — First Three Months of 2026 Compared with First Three Months of 2025
Previous report
Integrated segment’s total revenues increased $354 million as a result of the following sources:
Previous report
Generation sales revenues increased $177 million in the first three months of 2026, as compared to the same period of 2025.
Previous report
Transmission revenues increased $19 million in the first three months of 2026, as compared to the same period of 2025, primarily due to higher recovery of transmission operating expenses and higher rate base from regulated investment programs.
Previous report
Total operating expenses increased $329 million, primarily due to:
Previous report
•Other operating expenses increased $335 million in the first three months of 2026, as compared to the same period of 2025, primarily due to:
Previous report
•Higher network transmission expenses of $25 million, which were deferred for future recovery, resulting in no material impact to earnings;
Previous report
•Higher storm restoration expenses of $77 million, of which $71 million were deferred for future recovery;
Previous report
•The absence of $10 million of severance and related costs associated with FirstEnergy’s organizational changes announced in the first quarter of 2025.
Previous report
•General taxes increased $3 million in the first three months of 2026, as compared to the same period of 2025, primarily due to higher property taxes.
Previous report
Other expense increased $2 million in the first three months of 2026, as compared to the same period of 2025, primarily due to higher interest expense as a result of new debt issuances since the first quarter 2025, partially offset by higher capitalized interest and higher pension and OPEB non-service credits.
Previous report
Integrated segment’s effective tax rate was 23.1% and 22.7% for the three months ended March 31, 2026 and 2025, respectively.
Previous report
Stand-Alone Transmission Segment — First Three Months of 2026 Compared with First Three Months of 2025
Previous report
Corporate / Other — First Three Months of 2026 Compared with First Three Months of 2025
Previous report
•$4 million (after-tax)of higher interest expense as a result of the issuance of the 2029 Convertible Notes and 2031 Convertible Notes, partially offset by the redemption of a portion of the 2026 Convertible Notes.
Previous report
•Decreased cash collateral received from suppliers due to changes in power prices.
Previous report
On March 11, 2026, MAIT agreed to sell $250 million of new 5.02% Senior Unsecured Notes due May 1, 2036. The sale is expected to close on April 30, 2026. Proceeds are expected to be used to repay short-term borrowings, to finance capital expenditures, for working capital and for other general corporate purposes.
Previous report
On April 21, 2026, ATSI issued $175 million of new 5.19% Senior Unsecured Notes due May 15, 2033. Proceeds are expected to be used to repay short-term borrowings, including short-term borrowings incurred to repay at maturity $75 million aggregate principal amount of ATSI’s 4.00% Senior Unsecured Notes due 2026, to finance capital expenditures, for working capital and for other general corporate purposes.
Showing the first 40 of 56 passages. Open the source sections for the rest.
Reworded paragraphs (134)
Previous wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q discusses the three months ended March 31, 2026 and year-over-year comparisons between the three months ended March 31, 2026 and 2025 and should be read in conjunction with the Registrants’ interim financial statements and notes included in this Form 10-Q, and the Registrants’ audited financial statements and notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7. in its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 18, 2026.
Current wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q discusses the three and six months ended June 30, 2026, and year-over-year comparisons between the three and six months ended June 30, 2026, and 2025, and should be read in conjunction with the Registrants’ interim financial statements and notes included in this Form 10-Q, and the Registrants’ audited financial statements, notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7. in its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 18, 2026.
Previous wording
FirstEnergy’s customer-focused Energize365 investment plan for the 2026 to 2030 time period is $36 billion, approximately 25% higher than the previous 2025 to 2029 five-year plan, and aims to strengthen the grid, improve reliability and support growing customer demand. Through the Energize365 program, system-wide capital investments from 2026 to 2030 are expected to include the Distribution segment 28%, the Integrated segment 35%, and the Stand-Alone Transmission segment 35%, focused on the following:
Current wording
FirstEnergy’s customer-focused Energize365 investment plan for the 2026 to 2030 time period is $36 billion, approximately 25% higher than the previous 2025 to 2029 five-year plan, and aims to strengthen the grid, improve reliability and support growing customer demand. Through the Energize365 program, system-wide capital investments from 2026 to 2030 are expected to include 28% in the Distribution segment, 35% in the Integrated segment, and 35% in the Stand-Alone Transmission segment, focused on the following:
Previous wording
•Transmission projects awarded through the PJM Open Window to address regional expansion projects, including incremental opportunities in the 2026 Open Window, for which the planning period was recently opened.
Current wording
•Transmission projects awarded through the PJM Open Window to address regional expansion projects, including incremental opportunities in the 2026 Open Window, for which the planning period was opened.
Previous wording
On February 21, 2025, FET, DominionHV and Transource entered into the Valley Link Operating Agreement, which established the general framework for Valley Link and the Valley Link Subsidiaries to accept, design, develop, construct, own, operate and finance those transmission projects awarded by PJM to Valley Link. This general framework includes parameters regarding the relationship among the three members, confers governance rights to its members so long as certain ownership percentages are maintained, as described below, and defines the list of projects that Valley Link will have the right to develop. Valley Link is the owner of the Valley Link Subsidiaries, which are organized in various states. On February 26, 2025, in response to the PJM 2024 RTEP Long-Term Proposal Window #1, PJM awarded two electric transmission projects to Valley Link estimated to be approximately $3 billion, with FET’s share estimated to be approximately $1 billion.
Current wording
On February 21, 2025, FET, DominionHV and Transource entered into the Valley Link Operating Agreement, which established the general framework for Valley Link and the Valley Link Subsidiaries to accept, design, develop, construct, own, operate and finance those transmission projects awarded by PJM to Valley Link. This general framework includes parameters regarding the relationship among the three members, confers governance rights to its members so long as certain ownership percentages are maintained, as described below, and defines the list of projects that Valley Link will have the right to develop. Valley Link is the owner of the Valley Link Subsidiaries, which are organized in various states. On February 26, 2025, in response to the PJM 2024 RTEP Open Window #1, PJM awarded two electric transmission projects to Valley Link estimated to be approximately $3 billion, with FET’s share estimated to be approximately $1 billion.
Previous wording
On February 13, 2026, FET and Transource entered into the Grid Growth Operating Agreement, which established the general framework for Grid Growth to accept, design, develop, construct, own, operate and finance certain transmission projects awarded by PJM to certain of the subsidiaries of Grid Growth. This general framework includes parameters regarding the relationship among the two members, confers governance rights to its members so long as certain ownership percentages are maintained and defines the list of projects that Grid Growth will have the right to develop. The relative ownership interests of the members under the Grid Growth Operating Agreement are 50% for each of FET and Transource. Grid Growth is the sole owner of Grid Growth Ohio and owns an 80% interest in Grid Growth EHV, with Transource owning the remaining interest. On February 12, 2026, in response to the PJM 2025 RTEP Long-Term Proposal Window #1, PJM awarded a project to Grid Growth estimated to be approximately $1 billion, with FET’s share estimated to be approximately $448 million.
Current wording
On February 13, 2026, FET and Transource entered into the Grid Growth Operating Agreement, which established the general framework for Grid Growth to accept, design, develop, construct, own, operate and finance certain transmission projects awarded by PJM to certain of the subsidiaries of Grid Growth. This general framework includes parameters regarding the relationship between the two members, confers governance rights to its members so long as certain ownership percentages are maintained and defines the list of projects that Grid Growth will have the right to develop. The relative ownership interests of the members under the Grid Growth Operating Agreement are 50% for each of FET and Transource. Grid Growth is the sole owner of Grid Growth Ohio and owns an 80% interest in Grid Growth EHV, with Transource owning the remaining interest. On February 12, 2026, in response to the PJM 2025 RTEP Open Window #1, PJM awarded a project to Grid Growth estimated to be approximately $1 billion, with FET’s share estimated to be approximately $448 million.
Previous wording
On February 13, 2026, MP and PE filed a CPCN to construct and operate a 1,200 MW combined cycle gas turbine plant and 70 MWs of solar generation capacity for an estimated capital investment totaling approximately $2.7 billion as of the date of the filing. The request also includes a surcharge designed to recover financing costs during development and construction of the projects, as well as to transition to recovery in base rates once the projects are placed in-service and approved through a base rate case. Hearings have been scheduled for July 16 and 17, 2026. A final order is expected from the WVPSC in the second half of 2026. See Note 9., “Commitments, Guarantees and Contingencies - Environmental Matters - Clean Water Act" of the Combined Notes to Financial Statements of the Registrants for additional details on the EPA's ELG.
Current wording
On October 1, 2025, MP and PE filed their integrated resource plan with the WVPSC. To ensure that MP and PE can meet their PJM adequacy requirements, the plan proposes, among other things, near-term market capacity purchases and the addition of 70 MWs of solar generation by 2028 and 1,200 MWs of natural gas combined cycle generation by 2031. On February 13, 2026, MP and PE filed a CPCN to construct and operate the proposed generation resources, including a 1,200 MW combined cycle gas turbine plant, that will be known as the Maidsville Energy Center, and 70 MWs of solar generation capacity, for an estimated capital investment of approximately $2.7 billion as of the filing date. The request also includes a surcharge designed to recover financing costs during development and construction of the projects, as well as a transition to recovery in base rates once the projects are placed in service and approved through a base rate case. An evidentiary hearing on the integrated resource plan was held on May 6, 2026, and evidentiary hearings on the CPCN application were held on July 16 and 17, 2026. A final order is expected from the WVPSC in the second half of 2026.
Previous wording
PE anticipates filing a base rate distribution case with the MDPSC in the second half of 2026, with new rates expected to become effective in the first quarter of 2027.
Current wording
PE anticipates filing a base rate distribution case with the MDPSC in the third quarter of 2026, with new rates expected to become effective in the first quarter of 2027.
Previous wording
•Higher transmission revenues from regulated capital investments that increased rate base;
Current wording
•Higher transmission revenues from regulated capital investments that increased rate base and true-up adjustments from the annual forward-looking transmission rate filings;
Previous wording
Other expense was flat in the first three months of 2026, as compared to the same period of 2025, primarily due to higher interest expense as a result of new debt issuances since the first quarter of 2025, partially offset by higher capitalized interest and higher pension and OPEB non-service credits.
Current wording
•Higher pension and OPEB non-service credits;
Previous wording
•Higher investigation and other related costs associated with the ongoing government investigations and litigation;
Current wording
•Higher investigation and other related costs associated with the ongoing government investigations and ongoing litigation.
Previous wording
Earnings attributable to FE were $405 million or $0.70 per share (basic and diluted) in the first three months of 2026 compared to $360 million or $0.62 per share (basic and diluted) in the first three months of 2025, representing an increase of $45 million that was primarily due to the following:
Current wording
Earnings attributable to FE were $693 million or $1.20 per share (basic and diluted) in the first six months of 2026 compared to $628 million or $1.09 per share (basic and diluted) in the first six months of 2025, representing an increase of $65 million that was primarily due to the following:
Previous wording
Distribution segment’s earnings attributable to FE increased $28 million in the first three months of 2026, as compared to the same period of 2025, primarily due to the absence of severance and related costs in the first quarter of 2025, lower other operating expenses and the absence of customer credits associated with the PUCO-approved Ohio Stipulation.
Current wording
•Other operating expenses increased $28 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to:
Previous wording
•Higher network transmission expenses of $28 million, which are deferred for future recovery, resulting in no material impact to earnings;
Current wording
•Higher network transmission expenses of $9 million, which are deferred for future recovery, resulting in no material impact to earnings;
Previous wording
•Higher formula rate transmission operating and maintenance expenses of $2 million, which have no material impact to earnings;
Current wording
•Higher energy efficiency and other state mandated program costs of $2 million, which were deferred for future recovery, resulting in no material impact to earnings;
Previous wording
•Higher vegetation management expenses of $5 million, which were mostly deferred for future recovery, resulting in no material impact to earnings; and
Current wording
•Higher storm restoration expenses of $5 million, which were deferred for future recovery; and
Previous wording
Other revenues increased $145 million in the first three months of 2026, as compared to the same period of 2025, primarily due to higher FTR credits, which offset higher transmission congestion charges. Due to the ENEC, FTRs have no material impact to earnings.
Current wording
Other revenues increased $41 million in the second quarter of 2026, as compared to the same period of 2025, due to higher FTR credits, which offset higher transmission congestion charges. Due to the ENEC, FTRs have no material impact to earnings.
Previous wording
•Fuel costs increased $12 million during the first three months of 2026, as compared to the same period of 2025, primarily due to higher unit costs, partially offset by lower consumption volumes. Due to the ENEC, fuel expense has no material impact to earnings.
Current wording
•Fuel costs decreased $12 million during the second quarter of 2026, as compared to the same period of 2025, primarily due to lower consumption volumes, partially offset by higher unit costs. Due to the ENEC, fuel expense has no material impact to earnings.
Previous wording
•Deferral of regulatory assets increased $213 million in the first three months of 2026, as compared to the same period of 2025, primarily due to $71 million in higher deferral of storm related expenses and a $146 million net increase from higher generation and transmission related deferrals, partially offset by $4 million related to net decreases in other deferrals.
Current wording
•Deferral of regulatory assets increased $60 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to $42 million in higher deferral of storm related expenses, a $9 million net increase from higher generation and transmission related deferrals, a $5 million increase related to the amortization of a regulatory liability associated with ZEC refunds, further described below, and $4 million related to net increases in other deferrals.
Previous wording
Stand-Alone Transmission’s total revenues increased $25 million, primarily due to a higher overall rate base, partially offset by lower recovery of transmission operating expenses.
Current wording
Stand-Alone Transmission segment’s total revenues increased $88 million, primarily due to a higher overall rate base, higher recovery of transmission operating expenses, and true-up adjustments from the annual forward-looking transmission rate filings.
Previous wording
Financial results for FirstEnergy’s business segments for the first three months of 2026 and 2025 were as follows:
Current wording
Financial results for FirstEnergy’s business segments for the first six months of 2026 and 2025 were as follows:
Previous wording
Distribution services revenues decreased $88 million in the first three months of 2026, as compared to the same period of 2025, primarily due to customer restitution and refunds resulting from the Ohio Companies’ PUCO-approved settlement. These restitution and refunds were recognized in the fourth quarter of 2025 and are offset by the amortization of a regulatory liability resulting in no impact to earnings in the first quarter of 2026. The revenue decrease was partially offset by higher rider revenues associated with certain regulated investment programs and the absence of 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.
Current wording
Distribution services revenues decreased $131 million in the first six months of 2026, as compared to the same period of 2025, primarily due to lower customer usage as a result of the milder weather temperatures and customer restitution and refunds resulting from the Ohio Companies’ PUCO-approved settlement. These restitution and refunds were recognized in the fourth quarter of 2025 and are offset by the amortization of a regulatory liability resulting in no impact to earnings in 2026. The revenue decrease was partially offset by higher rider revenues associated with certain regulated investment programs and the absence in 2026 of customer credits associated with the PUCO-approved Ohio Stipulation recognized in 2025. Additionally, revenues increased due to the higher recovery of transmission expenses, which have no material impact to earnings.
Previous wording
Generation sales revenues increased $142 million in the first three months of 2026, as compared to the same period in 2025, primarily due to higher non-shopping generation auction rates, higher retail generation sales volumes as a result of weather temperatures, 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 decreased to 87% from 88% in Ohio and to 59% from 60% in Pennsylvania in the first three months of 2026, as compared to the same period of 2025. Retail and wholesale generation sales revenue have no material impact to earnings.
Current wording
Generation sales revenues increased $229 million in the first six months of 2026, as compared to the same period in 2025, primarily due to higher non-shopping generation auction rates and higher retail generation sales volumes as a result of lower shopping, which increased sales volumes. Total generation provided by alternative suppliers as a percentage of total MWh deliveries for the Ohio Companies decreased to 88% from 89% in Ohio and was flat in Pennsylvania in the first six months of 2026, as compared to the same period of 2025. Retail and wholesale generation sales revenue have no material impact to earnings.
Previous wording
•Purchased power costs, which have no material impact to earnings, increased $152 million during the first three months of 2026, as compared to the same period of 2025, primarily due to higher unit costs and generation sales volumes as described above.
Current wording
•Purchased power costs, which have no material impact to earnings, increased $243 million during the first six months of 2026, as compared to the same period of 2025, primarily due to higher unit costs and generation sales volumes as described above.
Previous wording
•Lower planned vegetation management expenses of $13 million, primarily due to accelerated work in 2025 in Pennsylvania;
Current wording
•Lower planned vegetation management expenses of $14 million, primarily due to accelerated work in 2025 in Pennsylvania;
Previous wording
•Higher formula rate transmission operating and maintenance expenses of $4 million, which have no material impact to earnings.
Current wording
•Lower uncollectible expenses of $4 million; which were deferred for future recovery, resulting in no material impact to earnings;
Previous wording
•Depreciation expense increased $3 million in the first three months of 2026, as compared to the same period of 2025, primarily due to a higher asset base, partially offset by a change in depreciation rates effective March 1, 2026 as a result of the Ohio Base Rate Case.
Current wording
•Depreciation expense increased $4 million in the first six months of 2026, as compared to the same period of 2025, primarily due to a higher asset base, partially offset by a change in depreciation rates effective March 1, 2026, as a result of the Ohio Base Rate Case.
Previous wording
•Deferral of regulatory assets increased $235 million in the first three months of 2026, as compared to the same period of 2025, primarily due to higher deferred storm restoration expenses of $72 million, a $158 million increase in the amortization of a regulatory liability as a result of providing restitution and refunds to Ohio customers and a $28 million net increase in generation and transmission deferrals, partially offset by a $2 million increase in amortization associated with recovery of previously incurred storm costs in Ohio and a $21 million net decrease in other deferrals.
Current wording
•Deferral of regulatory assets increased $300 million in the first six months of 2026, as compared to the same period of 2025, primarily due to higher deferred storm restoration expenses of $80 million, a $250 million increase in the amortization of a regulatory liability as a result of providing restitution and refunds to Ohio customers and a $22 million net increase in generation and transmission deferrals, partially offset by a $16 million increase in amortization associated with recovery of previously incurred storm costs, an $18 million decrease from lower deferral of costs associated with customer assistance programs and a $18 million net decrease in other deferrals.
Previous wording
•General taxes increased $13 million in the first three months of 2026, as compared to the same period of 2025, primarily due to higher property and gross receipts taxes.
Current wording
•General taxes increased $21 million in the first six months of 2026, as compared to the same period of 2025, primarily due to higher property and gross receipts taxes.
Previous wording
Integrated segment’s earnings attributable to FE increased $17 million in the first three months of 2026, as compared to the same period of 2025, primarily due to the absence of severance and related costs in the first quarter of 2025, higher transmission revenues from regulated capital investments that increased rate base, higher revenues associated with certain investment programs, and increased customer usage and demand, partially offset by higher non-deferred storm restoration costs.
Current wording
Integrated segment’s earnings attributable to FE increased $24 million in the first six months of 2026, as compared to the same period of 2025, primarily due to the absence in 2026 of severance and related costs that were recognized in the first quarter of 2025, higher transmission revenues from regulated capital investments that increased rate base, true-up adjustments from the annual forward-looking transmission rate filing, increased customer usage and demand, and higher pension and OPEB non-service credits, partially offset by higher other operating expenses and higher net financing costs.
Previous wording
Distribution services revenues increased $13 million in the first three months of 2026, as compared to the same period of 2025, primarily resulting from higher customer usage as a result of the colder weather temperatures 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 $3 million in the first six months of 2026, as compared to the same period of 2025, primarily resulting from higher customer usage as a result of the weather temperatures and higher rider revenues associated with certain regulated investment programs, partially offset by the return of certain ZEC refunds in New Jersey as further described below. These refunds were offset by the amortization of a regulatory liability resulting in no impact to earnings. Additionally, revenues increased due to the higher recovery of transmission expenses, which have no material impact to earnings.
Previous wording
•Retail generation sales increased $112 million in the first three months of 2026, as compared to the same period in 2025, primarily due to higher non-shopping generation auction rates and higher volumes 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 $169 million in the first six months of 2026, as compared to the same period in 2025, primarily due to higher non-shopping generation auction rates and higher volumes as a result of the weather temperatures. Retail generation sales, other than those in West Virginia, have no material impact to earnings.
Previous wording
•Wholesale generation revenues increased $65 million in the first three months of 2026, as compared to the same period in 2025, primarily due to higher wholesale rates and capacity revenues, partially offset by lower 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 $112 million in the first six months of 2026, as compared to the same period in 2025, primarily due to higher wholesale rates and capacity revenues, partially offset by lower 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.
Previous wording
•Purchased power costs, which have no material impact to earnings, increased $191 million during the first three months of 2026, as compared to the same period of 2025, primarily due to higher volumes, capacity expenses and prices, which were impacted by the Winter Storm Fern weather event.
Current wording
•Purchased power costs, which have no material impact to earnings, increased $303 million during the first six months of 2026, as compared to the same period of 2025, primarily due to higher volumes, capacity expenses and prices, which were impacted by the Winter Storm Fern weather event in the first quarter of 2026.
Previous wording
•Higher transmission congestion charges of $221 million, primarily from the net impacts of the Winter Storm Fern weather event. Due to the ENEC, congestion charges, net of FTR revenue, have no material impact to earnings;
Current wording
•Higher transmission congestion charges of $242 million, primarily in the first quarter of 2026 from the net impacts of the Winter Storm Fern weather event. Due to the ENEC, congestion charges, net of FTR revenue, have no material impact to earnings;
Previous 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.
Current wording
•Higher formula rate transmission operating and maintenance expenses of $16 million, which have no material impact to earnings;
Previous wording
Total other expense increased $5 million in the first three months of 2026, as compared to the same period of 2025, primarily due to higher interest expenses from new long-term debt issuances, partially offset by higher capitalized financing costs.
Current wording
•General taxes increased $5 million in the first six months of 2026, as compared to the same period of 2025, primarily due to higher property taxes.
Previous wording
Stand-Alone Transmission’s effective tax rate was 23.2% and 22.9% for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Integrated segment’s effective tax rate was 23.3% and 22.9% for the six months ended June 30, 2026, and 2025, respectively.
Previous wording
Stand-Alone Transmission segment’s earnings attributable to FE increased $10 million in the first three months of 2026, as compared to the same period of 2025, primarily due to higher revenues from regulated capital investments that increased rate base and higher capitalized financing costs, partially offset by higher interest expenses from new long-term debt issuances.
Current wording
Stand-Alone Transmission segment’s earnings attributable to FE increased $32 million in the first six months of 2026, as compared to the same period of 2025, primarily due to higher revenues from regulated capital investments that increased rate base, true-up adjustments from the annual forward-looking transmission rate filings, and higher capitalized financing costs, partially offset by higher interest expenses from new long-term debt issuances.
Previous wording
Total operating expenses decreased $3 million in the first three months of 2026, as compared to the same period of 2025, primarily due to lower operating and maintenance expenses, partially offset by higher depreciation and property tax expenses from a higher asset base. Nearly all operating expenses are recovered through formula rates.
Current wording
Total operating expenses increased $32 million in the first six months of 2026, as compared to the same period of 2025, primarily due to higher depreciation and property tax expenses from a higher asset base and planned operating and maintenance expenses. Nearly all operating expenses are recovered through formula rates.
Previous wording
Financial results at Corporate/Other resulted in a $10 million increase in losses attributable to FE in the first three months of 2026, as compared to the same period of 2025, primarily due to:
Current wording
Financial results at Corporate/Other resulted in a $1 million increase in losses attributable to FE in the first six months of 2026, as compared to the same period of 2025, primarily due to:
Showing the first 40 of 134 pairs. Open the source sections for the rest.
Rearranged current paragraphs (29)
Current report — wording carried from elsewhere
Earnings attributable to FE were $288 million or $0.50 per share (basic and diluted) in the second quarter of 2026 compared to $268 million or $0.46 per share (basic and diluted) in the second quarter of 2025, representing an increase of $20 million that was primarily due to the following:
Current report — wording carried from elsewhere
•Higher pension and OPEB non-service credits;
Current report — wording carried from elsewhere
These factors were partially offset by the following:
Current report — wording carried from elsewhere
•Higher investigation and other related costs associated with the ongoing government investigations and ongoing litigation;
Current report — wording carried from elsewhere
Detailed segment reporting explanations are included below.
Current report — wording carried from elsewhere
Financial results for FirstEnergy’s business segments for the second quarter of 2026 and 2025 were as follows:
Current report — wording carried from elsewhere
Distribution services revenues decreased $41 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to lower customer usage as a result of the milder weather temperatures and customer restitution and refunds resulting from the Ohio Companies’ PUCO-approved settlement. These restitution and refunds were recognized in the fourth quarter of 2025 and are offset by the amortization of a regulatory liability resulting in no impact to earnings in 2026. The revenue decrease was partially offset by higher rider revenues associated with certain regulated investment programs and the absence in 2026 of customer credits associated with the PUCO-approved Ohio Stipulation recognized in 2025. Additionally, revenues increased due to the higher recovery of transmission expenses, which have no material impact to earnings.
Current report — wording carried from elsewhere
Generation sales revenues increased $85 million in the second quarter of 2026, as compared to the same period in 2025, primarily due to 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 was flat in the second quarter of 2026, as compared to the same period of 2025. Retail and wholesale generation sales revenues have no material impact to earnings.
Current report — wording carried from elsewhere
•Lower planned vegetation management expenses of $6 million, primarily due to accelerated work in 2025 in Pennsylvania; and
Current report — wording carried from elsewhere
•Depreciation expense increased $1 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to a higher asset base, partially offset by a change in depreciation rates effective March 1, 2026, as a result of the Ohio Base Rate Case.
Current report — wording carried from elsewhere
•General taxes increased $8 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to higher property and gross receipts taxes.
Current report — wording carried from elsewhere
•Retail generation sales increased $55 million in the second quarter of 2026, as compared to the same period in 2025, primarily due to higher non-shopping generation auction rates and higher volumes as a result of the weather temperatures. Retail generation sales, other than those in West Virginia, have no material impact to earnings.
Current report — wording carried from elsewhere
•Wholesale generation revenues increased $47 million in the second quarter of 2026, as compared to the same period in 2025, primarily due to higher wholesale rates and capacity revenues, partially offset by lower 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 report — wording carried from elsewhere
•Purchased power costs, which have no material impact to earnings, increased $112 million during the second quarter of 2026, as compared to the same period of 2025, primarily due to higher volumes, capacity expenses and prices.
Current report — wording carried from elsewhere
•Other operating expenses increased $112 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to:
Current report — wording carried from elsewhere
•Higher transmission congestion charges of $21 million. Due to the ENEC, congestion charges, net of FTR revenue, have no material impact to earnings;
Current report — wording carried from elsewhere
•Higher formula rate transmission operating and maintenance expenses of $13 million, which have no material impact to earnings; and
Current report — wording carried from elsewhere
•Depreciation expense increased $3 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to a higher asset base.
Current report — wording carried from elsewhere
Total operating expenses increased $35 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to higher depreciation and property tax expenses from a higher asset base and planned operating and maintenance expenses. Nearly all operating expenses are recovered through formula rates.
Current report — wording carried from elsewhere
Other revenues increased $186 million in the first six months of 2026, as compared to the same period of 2025, primarily due to higher FTR credits in the first quarter of 2026, which offset higher transmission congestion charges. Due to the ENEC, FTRs have no material impact to earnings.
Current report — wording carried from elsewhere
•Fuel costs were flat during the first six months of 2026, as compared to the same period of 2025, primarily due to higher unit costs, offset by lower consumption volumes. Due to the ENEC, fuel expense has no material impact to earnings.
Current report — wording carried from elsewhere
The following table shows revenues by transmission asset owner:
Current report — wording carried from elsewhere
EGSs that fail to provide the contracted service. All New Jersey EDCs participate in this competitive BGS procurement process and recover BGS costs directly from customers as a charge separate from base rates.
Current report — wording carried from elsewhere
ENEC rate is typically updated annually and MP and PE filed their ENEC filing on August 29, 2025, for rates effective January 1, 2026. During the first quarter of 2026, MP and PE incurred significant PJM charges during the Winter Storm Fern weather event totaling $145 million, which were deferred for future recovery as part of the ENEC.
Current report — wording carried from elsewhere
•In re FirstEnergy Corp. Securities Litigation (S.D. Ohio); on July 28, 2020, and August 21, 2020, purported stockholders of FE filed putative class action lawsuits alleging violations of the federal securities laws. Those actions have been consolidated and a lead plaintiff, the Los Angeles County Employees Retirement Association, has been appointed by the court. A consolidated complaint was filed on February 26, 2021. The consolidated complaint alleges, on behalf of a proposed class of persons who purchased FE securities between February 21, 2017, and July 21, 2020, that FE and certain current or former FE officers violated Sections 10(b) and 20(a) of the Exchange Act by making alleged misrepresentations or omissions concerning FE’s business and results of operations. The consolidated complaint also alleges that FE, certain current or former FE officers and directors, and a group of underwriters violated Sections 11,
Current report — wording carried from elsewhere
•Depreciation expense decreased $2 million in the second quarter of 2026, as compared to the same period of 2025, primarily dueto the accelerated amortization of legacy smart meters in New Jersey, which concluded in December 2025, partially offset bya higher asset base.
Current report — wording carried from elsewhere
Total other expenses increased $7 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to higher interest expense as a result of new debt issued since the second quarter of 2025, partially offset by higher capitalized interest and higher pension and OPEB non-service credits.
Current report — wording carried from elsewhere
(1) Previously issued 2025 JCP&L amounts have been revised due to the correction of immaterial errors as discussed in Note 1., "Organization and Basis of Presentation," of the Combined Notes to Financial Statements of the Registrants.
Current report — wording carried from elsewhere
The $167 million increase in total revenues resulted from the following sources:
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
MP and PE anticipate filing a base rate distribution case with the WVPSC in the second quarter of 2026, with new rates expected to become effective in the first quarter of 2027.
Previous report — wording carried elsewhere
•Lower uncollectible expenses of $2 million;
Previous report — wording carried elsewhere
On October 1, 2025, MP and PE filed their integrated resource plan with the WVPSC. To ensure that MP and PE can meet their PJM adequacy requirements, the plan proposes, among other things, near-term market capacity purchases, and the addition of 70 MWs of solar generation by 2028 and 1,200 MWs of natural gas combined cycle generation by 2031. On November 26, 2025, the WVPSC issued a procedural order setting a hearing in May 2026.