FIRSTENERGY CORP

Previous 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.

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 nine months ended September 30, 2026, and year-over-year comparisons between the three and nine months ended September 30, 2026, and 2025, and should be read in conjunction with FirstEnergy’s interim financial statements and notes included in this Form 10-Q, and FirstEnergy’s audited financial statements, notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of 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 28% in the Distribution segment, 35% in the Integrated segment, and 35% in the Stand-Alone Transmission segment, focused on the following:

Current wording

FirstEnergy’s customer-focused Energize365 investment plan for 2026 to 2030 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 opened.

Current wording

•Transmission projects awarded through the PJM RTEP Open Window to address regional expansion projects, including incremental opportunities submitted by FET through its subsidiaries.

Previous wording

FirstEnergy aims to execute its Energize365 investment plan through a strengthened financial position. Energize365 capital investments included in the current five-year plan are expected to be funded with a combination of organic cash flows and the issuance of debt, including hybrid securities. Additionally, FirstEnergy may issue its common equity to fund capital expenditures in its 2026 through 2030 planning period averaging approximately 1% of its now current market capitalization in each year of the planning period, subject to market conditions and other factors. FirstEnergy believes it has optimized its financing plan to retain flexibility in an uncertain interest rate environment.

Current wording

FirstEnergy aims to execute its Energize365 investment plan through a strengthened financial position. Energize365 capital investments included in the current five-year plan are expected to be funded with a combination of organic cash flows and the issuance of debt, including hybrid securities. The financing plan for the current $36 billion 2026 to 2030 investment program includes up to $2 billion of equity or equity-like securities through 2030. Additionally, FirstEnergy may issue its common equity to fund capital expenditures in its 2026 through 2030 planning period averaging approximately 1% of its now current market capitalization in each year of the planning period, subject to market conditions and other factors. FirstEnergy believes it has optimized its financing plan to retain flexibility in an uncertain interest rate environment.

Previous wording

On October 27, 2025, FE, the Electric Companies, Transmission Companies, and FET, each entered into an amended credit facility to, among other things: (i) remove the 10 basis point credit spread adjustment from the interest rate calculation; (ii) permit a one-week interest period for any Term Benchmark Advance (as defined under each of the Amended Credit Facilities) based upon daily simple SOFR; and (iii) extend the maturity date of each credit facility for an additional one-year period (a) from October 20, 2028 to October 20, 2029 for the KATCo credit facility, (b) from October 20, 2029 to October 20, 2030 for the FET credit facility and (c) from October 18, 2028 to October 18, 2029 for the remaining Amended Credit Facilities.

Current wording

On October 23, 2026, FE, the Electric Companies, Transmission Companies, and FET, each entered into an amended credit facility to, among other things: (i) extend the maturity date of each credit facility for an additional one-year period (a) from October 20, 2029 to October 18, 2030 for the KATCo credit facility, (b) from October 20, 2030 to October 20, 2031 for the FET credit facility and (c) from October 18, 2029 to October 18, 2030 for the remaining Amended Credit Facilities; (ii) allow for the option to extend the Credit Agreement by up to two additional one-year periods; and (iii) increase the letters of credit commitment amount from $100 million to $400 million for the MP and PE credit facility.

Previous wording

FirstEnergy continues to return value to shareholders. In February 2026, the FE Board declared a $0.02 per share increase to the quarterly cash common stock dividend to $0.465 per share payable June 1, 2026, which represents a 4.5% increase compared to dividends declared in 2025. 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, cash flows, credit metrics and general economic and other business conditions.

Current wording

FirstEnergy continues to return value to shareholders. In February 2026, the FE Board declared a $0.02 per share increase in the quarterly cash common stock dividend to $0.465 per share, payable June 1, 2026, representing a 4.5% increase compared to dividends declared in 2025. In September 2026, the FE Board declared a quarterly cash common stock dividend of $0.465 per share payable December 1, 2026. 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, cash flows, credit metrics and general economic and other business conditions.

Previous wording

PJM RTEP Open Window Projects

Current wording

Significant PJM RTEP Open Window Projects

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 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.

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 2024 PJM RTEP Open Window, 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 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.

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 2025 PJM RTEP Open Window, 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 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 wording

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 continues to monitor 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 – Utility RELIEF Act and Related FERC Complaint,” 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.

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. 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. On November 19, 2025, the PUCO issued an order in the rate case. On November 26, 2025, the Ohio Companies filed proposed compliance tariffs. On December 19, 2025, the Ohio Companies and other parties filed applications for rehearing and on December 29, 2025, the Ohio Companies filed a memorandum against intervenors’ applications for rehearing. On January 7, 2026, the PUCO issued an entry granting rehearing in order to determine whether its November 19, 2025, base rate case opinion and order should be affirmed, abrogated, or modified on rehearing. On January 9, 2026, the Ohio Companies filed an expedited motion for ruling on the proposed compliance tariffs and on February 4, 2026, PUCO staff issued a letter recommending that most of the Ohio Companies’ proposed compliance tariffs be approved. The Ohio Companies cannot predict the outcome of the rehearing, but do not expect material changes to the November 2025 order. See “Outlook - State Regulation - Ohio,” in Item 2., "Management's Discussion and Analysis of Financial Condition and Results of Operations".

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 PUCO issued an order in the base rate case on November 19, 2025. A number of applications for rehearing were subsequently filed and on June 10, 2026, the PUCO issued its last entry on rehearing. On August 10, 2026, the Ohio Companies appealed the matter to the Supreme Court of Ohio where it remains pending. The Ohio Companies cannot predict the outcome of the matter. See “Outlook - State Regulation - Ohio,” in Item 2., "Management's Discussion and Analysis of Financial Condition and Results of Operations.”

Previous wording

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 wording

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 an ROE 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.

Previous 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.

Current wording

On October 1, 2025, MP and PE filed their integrated resource plan with the WVPSC. To allow MP and PE to 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 fourth quarter of 2026.

Previous wording

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 wording

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. The WVPSC held a hearing on the alternative two-phase approach on July 9, 2026. On July 31, 2026, the WVPSC issued an order approving the alternative two-phase approach without modification. New rates associated with the first phase became effective on August 1, 2026. The matter was appealed to the Supreme Court of Appeals of West Virginia on August 31, 2026 and remains pending before the court. MP and PE cannot predict the outcome of this appeal.

Previous wording

•Higher transmission revenues from regulated capital investments that increased rate base and true-up adjustments from the annual forward-looking transmission rate filings;

Current wording

•Higher transmission revenues from regulated capital investments that increased rate base;

Previous wording

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 wording

Cooling degree days in the third quarter of 2026 were 5% above the same period of 2025 and 4% above normal. Heating degree days in the third quarter of 2026 were 20% above the same period of 2025 and 16% below normal. Industrial deliveries in the third quarter of 2026 compared to the same period of 2025 increased primarily due to growth in the manufacturing, oil and gas extraction, and advanced technologies sectors.

Previous wording

•A reduction in ARO liabilities associated with CCR rules based on the completion of engineering studies and field analysis of certain sites; and

Current wording

•A reduction in ARO liabilities associated with CCR rules based on the completion of engineering studies and field analysis of certain sites during 2026;

Previous wording

•Higher interest expenses from new long-term debt and convertible note issuances, net of redemptions and repayments.

Current wording

•Higher interest expenses from new long-term debt and convertible note issuances, net of redemptions and repayments, and higher capitalized financing costs; and

Previous wording

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 wording

Cooling degree days in the first nine months of 2026 were 4% above the same period of 2025 and 5% above normal. Heating degree days in the first nine months of 2026 were 1% above the same period of 2025 and near normal. Industrial deliveries in the first nine months of 2026 compared to the same period of 2025 increased primarily due to growth in the manufacturing, oil and gas extraction and advanced technologies sectors.

Previous wording

Financial results for FirstEnergy’s business segments for the second quarter of 2026 and 2025 were as follows:

Current wording

Financial results for FirstEnergy’s business segments for the third quarter of 2026 and 2025 were as follows:

Previous wording

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 wording

Distribution services revenues increased $117 million in the third quarter of 2026, as compared to the same period of 2025, primarily due to higher customer usage, 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 $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 wording

Generation sales revenues increased $120 million in the third 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 third quarter of 2026, as compared to the same period of 2025. Retail and wholesale generation sales revenues have no material impact to earnings.

Previous wording

•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 wording

•Purchased power costs, which have no material impact to earnings, increased $102 million during the third quarter of 2026, as compared to the same period of 2025, primarily due to higher unit costs as described above.

Previous wording

•Higher network transmission expenses of $9 million, which are deferred for future recovery, resulting in no material impact to earnings;

Current wording

•Lower network transmission expenses of $17 million, which are deferred for future recovery, resulting in no material impact to earnings.

Previous wording

•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 wording

•Depreciation expense was flat in the third quarter of 2026, as compared to the same period of 2025, primarily due to a higher asset base, 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 $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 wording

•Amortization of regulatory assets, net decreased $4 million in the third quarter of 2026, as compared to the same period of 2025, primarily due to higher deferred storm restoration expenses of $122 million, partially offset by a $79 million net decrease in generation and transmission deferrals, a $12 million decrease from lower deferral of costs associated with customer assistance programs, a $14 million increase in amortization associated with recovery of previously incurred storm costs and a $13 million net decrease in other deferrals.

Previous wording

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 wording

Other expense increased $4 million in the third 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 third quarter of 2025, partially offset by higher pension and OPEB non-service credits.

Previous wording

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 wording

Integrated segment’s earnings attributable to FE increased $22 million in the third 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, lower operating expenses, higher pension and OPEB non-service credits and increased customer usage and demand, partially offset by higher net financing costs.

Previous wording

Distribution services revenues decreased $8 million in the second quarter of 2026, as compared to the same period of 2025, primarily due to lower rider revenues and 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. The decrease in distribution services revenues was partially offset by higher customer demands and higher recovery of transmission expenses, the recovery of which has no material impact to earnings.

Current wording

Distribution services revenues increased $2 million in the third quarter of 2026, as compared to the same period of 2025, primarily due to higher customer usage and higher recovery of transmission expenses, the recovery of which has no material impact to earnings, 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.

Previous wording

•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 wording

•Retail generation sales increased $54 million in the third 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 warmer weather temperatures. Retail generation sales, other than those in West Virginia, have no material impact to earnings.

Previous wording

•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 wording

•Wholesale generation revenues increased $69 million in the third quarter of 2026, as compared to the same period in 2025, primarily due to higher wholesale rates, capacity revenues and higher sales volumes. The difference between current wholesale generation revenues and certain energy costs incurred is deferred for future recovery or refund, with no material impact to earnings.

Previous 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.

Current wording

Other revenues increased $13 million in the third 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 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.

Current wording

•Fuel costs increased $26 million during the third quarter of 2026, as compared to the same period of 2025, primarily due to higher consumption volumes and unit costs. 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 $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 wording

•Purchased power costs, which have no material impact to earnings, increased $29 million during the third quarter of 2026, as compared to the same period of 2025, primarily due to higher capacity expenses and prices.

Previous wording

•Higher transmission congestion charges of $21 million. Due to the ENEC, congestion charges, net of FTR revenue, have no material impact to earnings;

Current wording

•Higher transmission congestion charges of $14 million. Due to the ENEC, congestion charges, net of FTR revenue, have no material impact to earnings;

Previous wording

•Lower other operating expenses of $3 million, primarily due to the absence in 2026 of a legal reserve recognized in the second quarter of 2025, partially offset by higher regulated generation outage spend and planned maintenance expenses.

Current wording

•Higher formula rate transmission operating and maintenance expenses of $3 million, which have no material impact to earnings;

Previous wording

•Lower planned vegetation management expenses of $6 million, primarily due to accelerated work in 2025 in Pennsylvania; and

Current wording

•Lower other operating expenses of $6 million, primarily due to planned maintenance expenses.

Previous wording

•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 wording

•Depreciation expense increased $3 million in the third quarter of 2026, as compared to the same period of 2025, primarily due to a higher asset base.

Previous wording

Stand-Alone Transmission segment’s earnings attributable to FE increased $22 million in the second quarter 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.

Current wording

Stand-Alone Transmission segment’s earnings attributable to FE decreased $37 million in the third quarter of 2026, as compared to the same period of 2025, primarily due to the absence of a discrete tax benefit related to a remeasurement of excess deferred income taxes recognized in 2025 and higher net financing costs, partially offset by higher revenues from regulated capital investments that increased overall rate base.

Previous wording

Stand-Alone Transmission segment’s total revenues increased $113 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.

Current wording

Stand-Alone Transmission segment’s total revenues increased $13 million, primarily due to a higher overall rate base.