FIRSTENERGY CORP

MANAGEMENT’S NARRATIVE DISCUSSION AND

ANALYSIS OF RESULTS OF OPERATIONS

FE PA is incorporated in Pennsylvania and is a wholly owned subsidiary of FirstEnergy Pennsylvania Holding Company LLC, which is a wholly owned subsidiary of FE. FE PA owns property and does business as an electric public utility in Pennsylvania and New York, providing distribution services to approximately 2.1 million customers in Pennsylvania and approximately 4,000 customers in Waverly, New York, with a rate base of $6.9 billion as of December 31, 2025. FE PA had 1,916 employees as of December 31, 2025, and serves an area that has a population of approximately 4.5 million. FE PA complied with the regulations, orders, policies and practices prescribed by FERC, PPUC and the NYPSC.

On January 1, 2024, FirstEnergy consolidated the Pennsylvania Companies into FE PA, including then-OE subsidiary, Penn, making FE PA a new, single operating entity. In addition to merging each of the Pennsylvania Companies with and into FE PA, with FE PA surviving such mergers as the successor-in-interest to all assets and liabilities of the Pennsylvania Companies, (i) WP transferred certain of its Pennsylvania-based transmission assets to KATCo, and (ii) PN and ME contributed their respective Class B equity interests of MAIT to FE. FE PA operates under the rate districts of the former Pennsylvania Companies.

For additional information with respect to FE PA, please see the information contained in FirstEnergy’s Management’s Discussion and Analysis of Financial Condition and Results of Operations under the following subheadings, which information is incorporated by reference herein: Executive Summary and Recent Developments, Regulatory Assets and Liabilities, Capital Resources and Liquidity, Guarantees and Other Assurances, Market Risk Information, Credit Risk, Outlook and New Accounting Pronouncements.

FE PA Summary of Results of Operations—First Nine Months of 2026 Compared with First Nine Months of 2025

FE PA’s financial results for the nine months ended September 30, 2026, and 2025, were as follows:

Distribution deliveries for the residential and commercial customer classes were impacted by the weather temperatures. Heating degree days in the first nine months of 2026 were 2% above the same period of 2025 and near normal. Cooling degree days in the first nine months of 2026 were 5% above the same period of 2025 and 9% above normal.

FE PA Results of Operations — First Nine Months of 2026 Compared with First Nine Months of 2025

Net income increased $33 million in the first nine 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 rider revenues and customer demand, higher pension and OPEB non-service credits and a lower effective tax rate, partially offset by higher financing costs.

Revenues

The $370 million increase in total revenues resulted from the following sources:

Distribution services revenue increased $97 million during the first nine months of 2026, as compared to the same period of 2025, primarily resulting from higher rider revenues and customer usage.

Generation sales revenues increased $276 million during the first nine months of 2026, as compared to the same period of 2025, primarily due to higher non-shopping generation auction rates. Retail and wholesale generation sales revenue have no material impact to earnings.

Operating Expenses

Total operating expenses increased $350 million primarily due to:

•Purchased power costs, which have no material impact to earnings, increased $262 million during the first nine months of 2026, as compared to the same period of 2025, primarily due to higher unit costs.

•Other operating expenses increased $140 million in the first nine months of 2026, as compared to the same period of 2025, primarily due to:

•Higher network transmission expenses of $10 million, which were deferred for future recovery, resulting in no material impact to earnings;

•Higher energy efficiency and other state mandated program costs of $13 million, which were deferred for future recovery, resulting in no material impact to earnings; and

•Higher storm restoration expenses of $142 million, which were deferred for future recovery resulting in no material impact to earnings.

▪Lower uncollectible expenses of $9 million;

▪Lower other operating expenses of $11 million, primarily due to accelerated vegetation work in 2025, partially offset by planned maintenance activities; and

▪The absence in 2026 of $5 million of severance and related costs associated with FirstEnergy’s organizational changes announced and recognized in the first quarter of 2025.

•Depreciation expense increased $17 million in the first nine months of 2026, as compared to the same period of 2025, primarily due to a higher asset base.

•Deferral of regulatory assets, net increased $89 million in the first nine months of 2026, as compared to the same period of 2025, primarily due to a $142 million increase from higher deferred storm restoration expenses and a $15 million net increase in generation and transmission related deferrals, partially offset by $30 million of higher net amortization expenses resulting from recovery of customer assistance programs from the implementation of the base rate case in 2025, and $38 million net decrease in other deferrals.

•General taxes increased $20 million inthe first nine months of 2026, as compared to the same period of 2025, primarily due to higher gross receipts taxes.

Other Expenses

Total other expenses were flat in the first nine months 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 third quarter of 2025, offset by higher capitalized interest and higher pension and OPEB non-service credits.

Income Taxes

The effective tax rate for the nine months ended September 30, 2026, and 2025, was 19.1% and 22.4%, respectively. The decrease in the effective tax rate was primarily due to increases in state flow-through tax benefits and higher amortization of excess deferred income taxes.