Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 333-21011 | ||
Entity Registrant Name | FIRSTENERGY CORP | ||
Entity Tax Identification Number | 34-1843785 | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Address, Address Line One | 76 South Main Street | ||
Entity Address, City or Town | Akron | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44308 | ||
City Area Code | (800) | ||
Local Phone Number | 736-3402 | ||
Title of 12(b) Security | Common Stock, $0.10 par value per share | ||
Trading Symbol | FE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 22,261,707,443 | ||
Entity Common Stock Shares Outstanding | 574,440,850 | ||
Documents Incorporated by Reference | Documents Incorporated By Reference PART OF FORM 10-K INTO WHICH DOCUMENT DOCUMENT IS INCORPORATED Portions of the Definitive Proxy Statement for the 2024 Annual Meeting of Shareholders of FirstEnergy Corp. to be held May 22, 2024. Part III | ||
Entity Central Index Key | 0001031296 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Cleveland, Ohio |
Auditor Firm ID | 238 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
REVENUES: | ||||
Total revenues | [1] | $ 12,870 | $ 12,459 | $ 11,132 |
OPERATING EXPENSES: | ||||
Fuel | 538 | 730 | 481 | |
Purchased power | 4,108 | 3,863 | 2,964 | |
Other operating expenses | 3,594 | 3,817 | 3,196 | |
Provision for depreciation | 1,461 | 1,375 | 1,302 | |
Amortization (deferral) of regulatory assets, net | (261) | (365) | 269 | |
General taxes | 1,164 | 1,129 | 1,073 | |
DPA penalty (Note 14) | 0 | 0 | 230 | |
Gain on sale of Yards Creek | 0 | 0 | (109) | |
Total operating expenses | 10,604 | 10,549 | 9,406 | |
OPERATING INCOME | 2,266 | 1,910 | 1,726 | |
OTHER INCOME (EXPENSE): | ||||
Debt redemption costs (Note 11) | (36) | (171) | (2) | |
Equity method investment earnings (Note 1) | 175 | 168 | 31 | |
Miscellaneous income, net | 164 | 415 | 486 | |
Pension and OPEB mark-to-market adjustment | (78) | 72 | 382 | |
Interest expense | (1,124) | (1,039) | (1,139) | |
Capitalized financing costs | 97 | 84 | 75 | |
Total other expense | (802) | (471) | (167) | |
INCOME BEFORE INCOME TAXES | 1,464 | 1,439 | 1,559 | |
INCOME TAXES | 267 | 1,000 | 320 | |
INCOME FROM CONTINUING OPERATIONS | 1,197 | 439 | 1,239 | |
Discontinued operations (Note 15) | [2] | (21) | 0 | 44 |
NET INCOME | 1,176 | 439 | 1,283 | |
Income attributable to noncontrolling interest (continuing operations) | 74 | 33 | 0 | |
EARNINGS ATTRIBUTABLE TO FIRSTENERGY CORP. | 1,102 | 406 | 1,283 | |
AMOUNTS ATTRIBUTABLE TO FIRSTENERGY CORP. | ||||
Earnings from continuing operations | 1,123 | 406 | 1,239 | |
Earnings from discontinued operations | [2] | (21) | 0 | 44 |
EARNINGS ATTRIBUTABLE TO FIRSTENERGY CORP. | $ 1,102 | $ 406 | $ 1,283 | |
EARNINGS PER SHARE ATTRIBUTABLE TO FIRSTENERGY CORP. (Note 3) | ||||
Basic - continuing operations (in dollars per share) | $ 1.96 | $ 0.71 | $ 2.27 | |
Basic - discontinued operations (in dollars per share) | (0.04) | 0 | 0.08 | |
Basic (in dollars per share) | 1.92 | 0.71 | 2.35 | |
Diluted - continuing operations (in dollars per share) | 1.96 | 0.71 | 2.27 | |
Diluted - discontinued operations (in dollars per share) | (0.04) | 0 | 0.08 | |
Diluted (in dollars per share) | $ 1.92 | $ 0.71 | $ 2.35 | |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
Basic (in shares) | 573 | 571 | 545 | |
Diluted (in shares) | 574 | 572 | 546 | |
Distribution services and retail generation | ||||
REVENUES: | ||||
Total revenues | $ 10,405 | $ 9,916 | $ 9,009 | |
Transmission | ||||
REVENUES: | ||||
Total revenues | 2,049 | 1,863 | 1,608 | |
Other | ||||
REVENUES: | ||||
Total revenues | $ 416 | $ 680 | $ 515 | |
[1]Includes excise and gross receipts tax collections of $420 million, $406 million and $374 million in 2023, 2022 and 2021, respectively.[2]Net of income tax benefit (expense) of ($21 million) and $48 million in 2023 and 2021, respectively. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Excise tax collections included in Revenue | $ 420 | $ 406 | $ 374 |
Net of income tax benefit (expense) | $ 21 | $ 48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 1,176 | $ 439 | $ 1,283 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Pension and OPEB prior service costs | (6) | (9) | (14) |
Amortized losses on derivative hedges | 2 | 9 | 1 |
Other comprehensive loss | (4) | 0 | (13) |
Income tax on other comprehensive income | (1) | (1) | (3) |
Other comprehensive income, net of tax | (3) | 1 | (10) |
COMPREHENSIVE INCOME | 1,173 | 440 | 1,273 |
Comprehensive income attributable to noncontrolling interest | 74 | 33 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO FIRSTENERGY CORP. | $ 1,099 | $ 407 | $ 1,273 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 137 | $ 160 |
Restricted cash | 42 | 46 |
Receivables- | ||
Customers | 1,382 | 1,455 |
Less — Allowance for uncollectible customer receivables | 64 | 137 |
Receivable | 1,318 | 1,318 |
Other, net of allowance for uncollectible accounts of $15 in 2023 and $11 in 2022 | 266 | 253 |
Materials and supplies, at average cost | 512 | 421 |
Prepaid taxes and other | 293 | 217 |
Total current assets | 2,568 | 2,415 |
PROPERTY, PLANT AND EQUIPMENT: | ||
In service | 50,107 | 47,850 |
Less — Accumulated provision for depreciation | 13,811 | 13,258 |
Property, plant and equipment in service net of accumulated provision for depreciation | 36,296 | 34,592 |
Construction work in progress | 2,116 | 1,693 |
Total property, plant and equipment | 38,412 | 36,285 |
INVESTMENTS AND OTHER NONCURRENT ASSETS: | ||
Goodwill | 5,618 | 5,618 |
Investments (Note 10) | 663 | 622 |
Regulatory assets | 369 | 33 |
Other | 1,137 | 1,135 |
Total investments and other noncurrent assets | 7,787 | 7,408 |
TOTAL ASSETS | 48,767 | 46,108 |
CURRENT LIABILITIES: | ||
Currently payable long-term debt | 1,250 | 351 |
Short-term borrowings | 775 | 100 |
Accounts payable | 1,362 | 1,503 |
Accrued interest | 292 | 254 |
Accrued taxes | 700 | 668 |
Accrued compensation and benefits | 304 | 272 |
Dividends payable (Note 11) | 235 | 223 |
Customer deposits | 227 | 223 |
Other | 241 | 364 |
Total current liabilities | 5,386 | 3,958 |
NONCURRENT LIABILITIES: | ||
Long-term debt and other long-term obligations | 22,885 | 21,203 |
Accumulated deferred income taxes | 4,530 | 4,202 |
Retirement benefits | 1,663 | 2,335 |
Regulatory liabilities | 1,214 | 1,847 |
Other | 2,173 | 1,920 |
Total noncurrent liabilities | 32,465 | 31,507 |
TOTAL LIABILITIES | 37,851 | 35,465 |
Common stockholders' equity- | ||
Common stock, $0.10 par value, authorized 700,000,000 shares - 574,335,396 and 572,130,932 shares outstanding as of December 31, 2023 and 2022, respectively | 57 | 57 |
Other paid-in capital | 10,494 | 11,322 |
Accumulated other comprehensive loss | (17) | (14) |
Accumulated deficit | (97) | (1,199) |
Total common stockholders' equity | 10,437 | 10,166 |
Noncontrolling interest | 479 | 477 |
TOTAL EQUITY | 10,916 | 10,643 |
Total capitalization | ||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 14) | ||
Total liabilities and capitalization | 48,767 | 46,108 |
Customer | ||
Receivables- | ||
Customers | 1,382 | 1,455 |
Less — Allowance for uncollectible customer receivables | 64 | 137 |
Receivable | $ 1,318 | $ 1,318 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables- | ||
Allowance for uncollectible accounts | $ 64 | $ 137 |
Common stockholders' equity- | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, outstanding (in shares) | 574,335,396 | 572,130,932 |
Other Receivables | ||
Receivables- | ||
Allowance for uncollectible accounts | $ 15 | $ 11 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Total Common Stockholders' Equity | Common Stock | Other Paid-In Capital | AOCI | Accumulated Deficit | NCI | |
Beginning balance (in shares) at Dec. 31, 2020 | 543,000,000 | |||||||
Beginning balance at Dec. 31, 2020 | $ 7,237 | $ 7,237 | $ 54 | $ 10,076 | $ (5) | $ (2,888) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 1,283 | 1,283 | 1,283 | |||||
Other comprehensive loss, net of tax | (10) | (10) | (10) | |||||
Cash dividends declared on common stock | [1] | (859) | (859) | (859) | ||||
Common Stock issuance (Note 10) (in shares) | 26,000,000 | |||||||
Common stock issuance (Note 11) | 974 | 974 | $ 3 | 971 | ||||
Stock Investment Plan and share-based benefit plans (in shares) | 1,000,000 | |||||||
Stock Investment Plan and share-based benefit plans | 50 | 50 | 50 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 570,000,000 | |||||||
Ending balance at Dec. 31, 2021 | 8,675 | 8,675 | $ 57 | 10,238 | (15) | (1,605) | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 439 | 406 | 406 | 33 | ||||
Other comprehensive loss, net of tax | 1 | 1 | 1 | |||||
Cash dividends declared on common stock | [1] | (892) | (892) | (892) | ||||
Stock Investment Plan and share-based benefit plans (in shares) | 2,000,000 | |||||||
Stock Investment Plan and share-based benefit plans | 98 | 98 | 98 | |||||
FET minority interest sale, net of transaction costs (Note 1) | 2,338 | 1,887 | 1,887 | 451 | ||||
Distribution to FET minority interest | (21) | (21) | ||||||
Capital contribution from FET minority interest | 9 | 9 | ||||||
Consolidated tax benefit allocation | 0 | (5) | (5) | 5 | ||||
Other | $ (4) | (4) | (4) | |||||
Ending balance (in shares) at Dec. 31, 2022 | 572,130,932 | 572,000,000 | ||||||
Ending balance at Dec. 31, 2022 | $ 10,643 | 10,166 | $ 57 | 11,322 | (14) | (1,199) | 477 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 1,176 | 1,102 | 0 | 1,102 | 74 | |||
Other comprehensive loss, net of tax | (3) | (3) | (3) | |||||
Cash dividends declared on common stock | [2] | (917) | (917) | (917) | ||||
Stock Investment Plan and share-based benefit plans (in shares) | 2,000,000 | |||||||
Stock Investment Plan and share-based benefit plans | 89 | 89 | 89 | |||||
Distribution to FET minority interest | $ (72) | (72) | ||||||
Ending balance (in shares) at Dec. 31, 2023 | 574,335,396 | 574,000,000 | ||||||
Ending balance at Dec. 31, 2023 | $ 10,916 | $ 10,437 | $ 57 | $ 10,494 | $ (17) | $ (97) | $ 479 | |
[1]Dividends declared for each share of common stock totaled $1.56 during 2022 and 2021.[2]Dividends declared for each share of common stock totaled $1.60 during 2023. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared (in dollars per share) | $ 0.02 | $ 0.41 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 1.60 | $ 1.56 | $ 1.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME | $ 1,176 | $ 439 | $ 1,283 |
Adjustments to reconcile net income to net cash from operating activities- | |||
Depreciation, amortization and impairments | 1,280 | 1,317 | 1,664 |
Employee benefit costs, net | (9) | (279) | (300) |
Pension and OPEB mark-to-market adjustments | 78 | (72) | (382) |
Deferred income taxes and investment tax credits, net | 252 | 989 | 297 |
Transmission revenue collections, net | (180) | 79 | 182 |
Gain on sale of Yards Creek | 0 | 0 | (109) |
Pension trust contribution | (750) | 0 | 0 |
Loss (gain) on disposal, net of tax (Note 16) | 21 | 0 | (47) |
Changes in current assets and liabilities- | |||
Receivables | (13) | (292) | 160 |
Materials and supplies | (91) | (161) | 57 |
Prepaid taxes and other current assets | (43) | (28) | 18 |
Accounts payable | (141) | 560 | 117 |
Accrued taxes | 32 | 22 | 7 |
Accrued interest | 38 | (29) | 0 |
Other current liabilities | 41 | 21 | (52) |
Cash collateral, net | (218) | 111 | 31 |
Employee benefit plan funding and related payments | (50) | (49) | (48) |
Other | (36) | 55 | (67) |
Net cash provided from operating activities | 1,387 | 2,683 | 2,811 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital investments | (3,356) | (2,848) | (2,487) |
Proceeds from sale of Yards Creek | 0 | 0 | 155 |
Sales of investment securities held in trusts | 38 | 48 | 48 |
Purchases of investment securities held in trusts | (50) | (59) | (59) |
Asset removal costs | (274) | (213) | (226) |
Other | (10) | (4) | 10 |
Net cash used for investing activities | (3,652) | (3,076) | (2,559) |
New financing- | |||
Long-term debt | 3,150 | 700 | 2,100 |
Short-term borrowings, net | 675 | 100 | 0 |
Common stock issuance | 0 | 0 | 1,000 |
Redemptions and repayments- | |||
Long-term debt | (537) | (3,005) | (532) |
Short-term borrowings, net | 0 | 0 | (2,200) |
Proceeds from FET minority interest sale, net of transaction costs | 0 | 2,348 | 0 |
Distributions to FET minority interest | (72) | (21) | 0 |
Capital contributions from FET minority interest | 0 | 9 | 0 |
Common stock dividend payments | (906) | (891) | (849) |
Other | (72) | (152) | (61) |
Net cash provided from (used for) financing activities | 2,238 | (912) | (542) |
Net change in cash, cash equivalents and restricted cash | (27) | (1,305) | (290) |
Cash, cash equivalents, and restricted cash at beginning of period | 206 | 1,511 | 1,801 |
Cash, cash equivalents, and restricted cash at end of period | 179 | 206 | 1,511 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest (net of amounts capitalized) | 1,002 | 1,021 | 1,085 |
Income taxes, net of refunds | 58 | 21 | (7) |
Significant non-cash transactions: | |||
Accrued capital investments | $ 252 | $ 207 | $ 114 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Unless otherwise indicated, defined terms and abbreviations used herein have the meanings set forth in the accompanying Glossary of Terms. FE was incorporated under Ohio law in 1996. FE’s principal business is the holding, directly or indirectly, of all of the outstanding equity of its principal subsidiaries as of December 31, 2023: OE, CEI, TE, Penn (a wholly owned subsidiary of OE), JCP&L, ME, PN, FESC, MP, AGC (a wholly owned subsidiary of MP), PE, WP and KATCo. Additionally, FET is a majority-owned subsidiary of FE, and is the parent company of ATSI, MAIT, PATH and TrAIL. In addition, FE holds all of the outstanding equity of other direct subsidiaries including FEV, which currently holds a 33-1/3% equity ownership in Global Holding, the holding company for a joint venture in the Signal Peak mining and coal transportation operations. On January 1, 2024, FirstEnergy consolidated the Pennsylvania Companies into FE PA, including 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, as of January 1, 2024, is FE’s only regulated distribution utility in Pennsylvania encompassing the operations previously conducted individually by the Pennsylvania Companies and serves an area with a population of approximately 4.5 million. FE PA operates under the rate districts of the former Pennsylvania Companies. FirstEnergy is also evaluating the legal, financial, operational and branding benefits of consolidating the Ohio Companies into a single Ohio utility company. On May 31, 2022, Brookfield and the Brookfield Guarantors acquired 19.9% of the issued and outstanding membership interests of FET. FirstEnergy presents the third-party investors’ ownership portion of FirstEnergy's net income, net assets and comprehensive income as NCI. NCI is included as a component of equity on the Consolidated Balance Sheets. FESC provides legal, financial and other corporate support services at cost, in accordance with its cost allocation manual, to affiliated FirstEnergy companies. FE does not bill directly or allocate any of its costs to any subsidiary company. Costs are charged to FE's subsidiaries for services received from FESC either through direct billing or through an allocation process. Allocated costs are for services that are provided on behalf of more than one company, or costs that cannot be precisely identified and are allocated using formulas developed by FESC. Intercompany transactions are generally settled under commercial terms within thirty days. FE and its subsidiaries are principally involved in the transmission, distribution, and generation of electricity. FirstEnergy’s utility operating companies comprise one of the nation’s largest investor-owned electric systems, serving over six million customers in the Midwest and Mid-Atlantic regions. FirstEnergy’s transmission operations include more than 24,000 miles of transmission lines and two regional transmission operation centers. AGC and MP control 3,580 MWs of total capacity. The accompanying consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the SEC. FE and its subsidiaries follow GAAP and comply with the related regulations, orders, policies and practices prescribed by the SEC, FERC, and, as applicable, the PUCO, the PPUC, the MDPSC, the NYPSC, the WVPSC, the VSCC and the NJBPU. The preparation of financial statements in conformity with GAAP requires management to make periodic estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not necessarily indicative of results of operations for any future period. FE and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. FE and its subsidiaries consolidate all majority-owned subsidiaries over which they exercise control and, when applicable, entities for which they have a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation as appropriate and permitted pursuant to GAAP. As further discussed below, FE and its subsidiaries consolidate a VIE when it is determined that it is the primary beneficiary. Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but do not have a controlling financial interest, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and the percentage of FE's ownership share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income. Certain prior year amounts have been reclassified to conform to the current year presentation, including presenting long-term debt and other long-term obligations within “Noncurrent Liabilities” on the Consolidated Balance Sheets as compared to “Total Capitalization”. Economic Conditions Post-pandemic economic conditions have increased supply chain lead times across numerous material categories, with some as much as tripling from pre-pandemic lead times. Several key suppliers have struggled with labor shortages and raw material availability, which along with inflationary pressure that appears to be moderating, have increased costs and decreased the availability of certain materials, equipment and contractors. FirstEnergy has taken steps to mitigate these risks and does not currently expect service disruptions or any material impact on its capital spending plan. However, the situation remains fluid and a prolonged continuation or further increase in supply chain disruptions could have an adverse effect on FirstEnergy’s results of operations, cash flow and financial condition. Facility Optimization FirstEnergy has begun implementing its facility optimization plans, which focus on both cost savings and alignment with our flexible working arrangements and EESG priorities, which will result in exiting the General Office in Akron, Ohio, and other corporate facilities in Brecksville, Ohio, Greensburg, Pennsylvania and Morristown, New Jersey beginning in 2024. In December 2023, FirstEnergy purchased the General Office building with the intention to sell in the future. It is currently expected that the exit of the General Office and sale will occur in 2025. The corporate headquarters will remain in Akron, Ohio, moving to the West Akron Campus, and FirstEnergy continues to explore real estate options and relocation opportunities for the other corporate facilities. As FirstEnergy continues to transform the business and implement initiatives to reduce costs, including the facility optimization plan, the impact of such actions may result in future impairments or other charges that may be significant. The result of these combined efforts will help build a stronger, more sustainable company for the near and long term. Sale of Equity Interest in FirstEnergy Transmission, LLC On February 2, 2023, FE, along with FET, entered into the FET P&SA II with Brookfield and the Brookfield Guarantors, pursuant to which FE agreed to sell to Brookfield at the closing, and Brookfield agreed to purchase from FE, an incremental 30% equity interest in FET for a purchase price of $3.5 billion. The majority of the purchase price is expected to be paid in cash upon closing, and the remainder will be payable by the issuance of a promissory note, which is expected to be repaid by the end of 2024. As a result of the consummation of the transaction, Brookfield’s interest in FET will increase from 19.9% to 49.9%, while FE will retain the remaining 50.1% ownership interests of FET. The transaction is subject to customary closing conditions, including approval from the PPUC. In addition, pursuant to the FET P&SA II, FirstEnergy made the necessary filings with the applicable regulatory authorities for the PA Consolidation. The FET Minority Equity Interest Sale is expected to close by the end of the first quarter of 2024. Upon closing, FET will continue to be consolidated in FirstEnergy’s financial statements. Pursuant to the terms of the FET P&SA II, in connection with the closing, Brookfield, FET and FE will enter into the A&R FET LLC Agreement, which will amend and restate in its entirety the current limited liability company agreement of FET. The A&R FET LLC Agreement, among other things, provides for the governance, exit, capital and distribution, and other arrangements for FET from and following the closing. Under the A&R FET LLC Agreement, at the closing, the FET Board will consist of five directors, two appointed by Brookfield and three appointed by FE. Reference Rate Reform In March of 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (issued March 2020 and subsequently updated). This ASU, which introduces Topic ASC 848 to the FASB codification, provides temporary optional expedients and exceptions, that if elected, will ease the financial reporting burdens related to the market transition from London Inter-Bank Offered Rate and other interbank offered rates to alternative reference rates. On April 27, 2023, FE, FET, the Utilities and the Transmission Companies entered into amendments to the 2021 Credit Facilities to, among other things: (i) permit the sale from FE to Brookfield of an incremental 30% equity interest in FET for a purchase price of $3.5 billion, (ii) permit the consolidation of the Pennsylvania Companies into a new, single operating entity, FE PA, which will be FE’s only regulated utility in Pennsylvania encompassing the operations previously conducted individually by the Pennsylvania Companies, and (iii) transition the benchmark interest rate for borrowings under the 2021 Credit Facilities from London Inter-Bank Offered Rate to SOFR. During the second quarter of 2023, FirstEnergy utilized the optional expedient within ASC 848 to account for the amendments to the credit facilities as a continuation of the existing contract without additional analysis. ACCOUNTING FOR THE EFFECTS OF REGULATION FirstEnergy’s Regulated Distribution and Regulated Transmission segments are subject to regulation that sets the prices (rates) the Utilities and the Transmission Companies are permitted to charge customers based on costs that the regulatory agencies determine are permitted to be recovered. At times, regulatory agencies permit the future recovery of costs that would be currently charged to expense by an unregulated company. The ratemaking process results in the recording of regulatory assets and liabilities based on anticipated future cash inflows and outflows. FirstEnergy reviews the probability of recovery of regulatory assets, and settlement of regulatory liabilities, at each balance sheet date and whenever new events occur. Factors that may affect probability include changes in the regulatory environment, issuance of a regulatory commission order, or passage of new legislation. Upon material changes to these factors, where applicable, FirstEnergy will record new regulatory assets or liabilities and will assess whether it is probable that currently recorded regulatory assets and liabilities will be recovered or settled in future rates. If recovery of a regulatory asset is no longer probable, FirstEnergy will write off that regulatory asset as a charge against earnings. FirstEnergy considers the entire regulatory asset balance as the unit of account for the purposes of balance sheet classification rather than the next years recovery and as such net regulatory assets and liabilities are presented in the non-current section on the FirstEnergy Consolidated Balance Sheets. See Note 13, "Regulatory Matters," of the Notes to Consolidated Financial Statements for additional information. The following table provides information about the composition of net regulatory assets and liabilities as of December 31, 2023 and 2022, and the changes during the year 2023: As of December 31, Net Regulatory Assets (Liabilities) by Source 2023 2022 Change (In millions) Customer payables for future income taxes $ (2,382) $ (2,463) $ 81 Spent nuclear fuel disposal costs (83) (83) — Asset removal costs (652) (675) 23 Deferred transmission costs 286 50 236 Deferred generation costs 572 235 337 Deferred distribution costs 247 164 83 Storm-related costs 799 683 116 Energy efficiency program costs 198 94 104 New Jersey societal benefit costs 79 94 (15) Vegetation management 102 63 39 Other (11) 24 (35) Net Regulatory Liabilities included on the Consolidated Balance Sheets $ (845) $ (1,814) $ 969 The following table provides information about the composition of net regulatory assets that do not earn a current return as of December 31, 2023 and 2022, of which approximately $371 million and $511 million, respectively, are currently being recovered through rates over varying periods, through 2068, depending on the nature of the deferral and the jurisdiction: Regulatory Assets by Source Not Earning a As of December 31, Current Return 2023 2022 Change (In millions) Deferred transmission costs $ 6 $ 8 $ (2) Deferred generation costs 432 262 170 Deferred distribution costs 68 27 41 Storm-related costs 602 568 34 Pandemic-related costs 35 45 (10) Vegetation management 21 52 (31) Other 33 35 (2) Regulatory Assets Not Earning a Current Return $ 1,197 $ 997 $ 200 DERIVATIVES FirstEnergy is exposed to limited financial risks resulting from fluctuating interest rates and commodity prices, including prices for electricity, coal and energy transmission. To manage the volatility related to these exposures, FirstEnergy’s Risk Policy Committee, comprised of senior management, provides general management oversight for risk management activities throughout FirstEnergy. The Risk Policy Committee is responsible for promoting the effective design and implementation of sound risk management programs and oversees compliance with corporate risk management policies and established risk management practice. FirstEnergy may use a variety of derivative instruments for risk management purposes including forward contracts, options, futures contracts and swaps. EQUITY METHOD INVESTMENTS Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but do not have a controlling financial interest, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and reflected in "Investments". The percentage of FE's ownership share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income and reflected in “Other Income (Expense)”. Equity method investments are assessed for impairment annually or whenever events and changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the decline in value is considered to be other than temporary, the investment is written down to its estimated fair value, which establishes a new cost basis in the investment. Equity method investments included within "Investments" on the Consolidated Balance Sheets were $104 million and $90 million as of December 31, 2023 and 2022, respectively. Global Holdings - FEV currently holds a 33-1/3% equity ownership in Global Holding, the holding company for a joint venture in the Signal Peak mining and coal transportation operations with coal sales primarily focused on international markets. FEV is not the primary beneficiary of the joint venture, as it does not have control over the significant activities affecting the joint venture's economic performance. FEV's ownership interest is subject to the equity method of accounting. For the years ended December 31, 2023, 2022 and 2021, pre-tax income related to FEV’s ownership in Global Holding was $175 million, $168 million and $29 million, respectively. FEV’s pre-tax equity earnings and investment in Global Holding are included in Corporate/Other for segment reporting. As of December 31, 2023 and 2022, the carrying value of the equity method investment was $66 million and $57 million, respectively. During 2023 and 2022, FEV received cash dividends from Global Holding totaling $165 million and $170 million, respectively, which were classified with “Cash from Operating Activities” on FirstEnergy’s Consolidated Statements of Cash Flow. PATH WV - PATH, was a proposed transmission line from West Virginia through Virginia into Maryland which PJM cancelled in 2012, is a series limited liability company that is comprised of multiple series, each of which has separate rights, powers and duties regarding specified property and the series profits and losses associated with such property. A subsidiary of FE owns 100% of the Allegheny Series (PATH-Allegheny) and 50% of the West Virginia Series (PATH-WV), which is a joint venture with a subsidiary of AEP. FirstEnergy is not the primary beneficiary of PATH-WV, as it does not have control over the significant activities affecting the economics of PATH-WV. FirstEnergy's ownership interest in PATH-WV is subject to the equity method of accounting. As of December 31, 2023 and 2022, the carrying value of the equity method investment was $17 million and $18 million, respectively. FirstEnergy's pre-tax equity earnings in PATH-WV were immaterial for the years ended December 31, 2023, 2022 and 2021. GOODWILL In a business combination, the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed is recognized as goodwill. FirstEnergy evaluates goodwill for impairment annually on July 31 and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, FirstEnergy assesses qualitative factors to determine whether it is more likely than not (that is, likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying value (including goodwill). If FirstEnergy concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if FirstEnergy concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value or bypasses the qualitative assessment, then the quantitative goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. As of July 31, 2023, FirstEnergy performed a qualitative assessment of the Regulated Distribution and Regulated Transmission reporting units' goodwill, assessing economic, industry and market considerations in addition to the reporting units' overall financial performance. Key factors used in the assessment included: growth rates, interest rates, expected investments, utility sector market performance, regulatory and legal developments, and other market considerations. It was determined that the fair values of these reporting units were, more likely than not, greater than their carrying values and a quantitative analysis was not necessary. FirstEnergy's reporting units are consistent with its reportable segments and consist of Regulated Distribution and Regulated Transmission. The following table presents goodwill by reporting unit as of December 31, 2023 and 2022: (In millions) Regulated Distribution Regulated Transmission Consolidated Goodwill $ 5,004 $ 614 $ 5,618 INVENTORY Materials and supplies inventory primarily includes fuel inventory, emission allowances, and the distribution, transmission and generation plant materials, net of reserve for excess and obsolete inventory. Materials charged to inventory are at weighted average cost when purchased and expensed or capitalized, as appropriate, when used or installed. Fuel inventory consists primarily of coal and reagents that are consumed at MP's generation plants, and is accounted for at weighted average cost when purchased and recorded to fuel expense when consumed. Emission allowances are accounted for as inventory at cost when purchased. FirstEnergy’s emission allowance compliance obligation, principally associated with MP's generation plant operations, is accrued to fuel expense at a weighted average cost based on each month’s emissions. When emission allowances are submitted to the EPA, inventory and the compliance obligation are reduced. Due to the ENEC, fuel, emission allowances and other fuel-related expenses have no material impact on current period earnings. NONCONTROLLING INTEREST FirstEnergy maintains a controlling financial interest in certain less than wholly owned subsidiaries. As a result, FirstEnergy presents the third-party investors’ ownership portion of FirstEnergy's net income, net assets and comprehensive income as noncontrolling interest. Noncontrolling interest is included as a component of equity on the Consolidated Balance Sheets. On May 31, 2022, Brookfield and the Brookfield Guarantors acquired 19.9% of the issued and outstanding membership interests of FET. The difference between the cash consideration received, net of transaction costs of approximately $37 million, and the carrying value of the noncontrolling interest of $451 million was recorded as an increase to Other Paid-In Capital. KATCo, which was a subsidiary of FET, became a wholly owned subsidiary of FE prior to the closing of the transaction and remains in the Regulated Transmission segment. Pursuant to the terms of the FET P&SA I, on May 31, 2022, Brookfield, FET and FE entered into the FET LLC Agreement. The FET LLC Agreement, among other things, provides for the governance, exit, capital and distribution, and other arrangements for FET from and following the closing. Under the FET LLC Agreement, Brookfield is entitled to appoint a number of directors to the FET Board, in approximate proportion to Brookfield’s ownership percentage in FET (rounded to the next whole number). The FET Board now consists of five directors, one appointed by Brookfield and four appointed by FE. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment reflects original cost (net of any impairments recognized), including payroll and related costs such as taxes, employee benefits, administrative and general costs, and financing costs incurred to place the assets in service. The costs of normal maintenance, repairs and minor replacements are expensed as incurred. FirstEnergy recognizes liabilities for planned major maintenance projects as they are incurred. Property, plant and equipment balances by segment as of December 31, 2023 and 2022, were as follows: December 31, 2023 Property, Plant and Equipment In Service (1) Accum. Depr. (2) Net Plant CWIP Total (In millions) Regulated Distribution $ 33,453 $ (10,039) $ 23,414 $ 860 $ 24,274 Regulated Transmission 15,538 (3,178) 12,360 1,208 13,568 Corporate/Other 1,116 (594) 522 48 570 Total $ 50,107 $ (13,811) $ 36,296 $ 2,116 $ 38,412 December 31, 2022 Property, Plant and Equipment In Service (1) Accum. Depr. (2) Net Plant CWIP Total (In millions) Regulated Distribution $ 32,257 $ (9,636) $ 22,621 $ 828 $ 23,449 Regulated Transmission 14,468 (2,978) 11,490 818 12,308 Corporate/Other 1,125 (644) 481 47 528 Total $ 47,850 $ (13,258) $ 34,592 $ 1,693 $ 36,285 (1) Includes finance leases of $68 million and $105 million as of December 31, 2023 and 2022, respectively. (2) Includes finance lease accumulated amortization of $33 million and $60 million as of December 31, 2023 and 2022, respectively. Regulated Distribution has approximately $2.2 billion of total regulated generation property, plant and equipment as of December 31, 2023. FirstEnergy provides for depreciation on a straight-line basis at various rates over the estimated lives of property included in plant in service. The respective annual composite depreciation rates for FirstEnergy were approximately 2.8% in 2023 and 2.7% in each of 2022 and 2021. For the years ended December 31, 2023, 2022 and 2021, capitalized financing costs on FirstEnergy's Consolidated Statements of Income include $44 million, $56 million and $48 million, respectively, of allowance for equity funds used during construction and $53 million, $28 million and $27 million, respectively, of capitalized interest. Asset Impairments FirstEnergy evaluates long-lived assets classified as held and used for impairment when events or changes in circumstances indicate the carrying value of the long-lived assets may not be recoverable. First, the estimated undiscounted future cash flows attributable to the assets is compared with the carrying value of the assets. If the carrying value is greater than the undiscounted future cash flows, an impairment charge is recognized equal to the amount the carrying value of the assets exceeds its estimated fair value. Asset Retirement Obligations FirstEnergy recognizes an ARO for its legal obligation to perform asset retirement activities associated with its long-lived assets. The ARO liability represents an estimate of the fair value of FirstEnergy's current obligation such that the ARO is accreted monthly to reflect the time value of money. A fair value measurement inherently involves uncertainty in the amount and timing of settlement of the liability. FirstEnergy uses an expected cash flow approach to measure the fair value of the remediation AROs, considering the expected timing of settlement of the ARO based on the expected economic useful life of associated asset and/or regulatory requirements. The fair value of an ARO is recognized in the period in which it is incurred. The associated asset retirement costs are capitalized as part of the carrying value of the long-lived asset and are depreciated over the life of the related asset. In certain circumstances, FirstEnergy has recovery of asset retirement costs and, as such, certain accretion and depreciation is offset against regulatory assets. Conditional retirement obligations associated with tangible long-lived assets are recognized at fair value in the period in which they are incurred if a reasonable estimate can be made, even though there may be uncertainty about timing or method of settlement. When settlement is conditional on a future event occurring, it is reflected in the measurement of the liability, not the timing of the liability recognition. FirstEnergy has recognized applicable legal obligations for AROs and their associated cost, including reclamation of sludge disposal ponds, closure of coal ash disposal sites, underground and above-ground storage tanks and wastewater treatment lagoons. In addition, FirstEnergy has recognized conditional retirement obligations, primarily for asbestos remediation. The following table summarizes the changes to the ARO balances during 2023 and 2022: ARO Reconciliation (In millions) Balance, January 1, 2022 $ 179 Changes in timing and amount of estimated cash flows (2) Liabilities settled (6) Accretion 14 Balance, December 31, 2022 $ 185 Changes in timing and amount of estimated cash flows 10 Liabilities settled (2) Accretion 16 Balance, December 31, 2023 $ 209 In April 2015, the EPA finalized regulations for the disposal of CCRs (non-hazardous), establishing national standards for landfill design, structural integrity design and assessment criteria for surface impoundments, groundwater monitoring and protection procedures and other operational and reporting procedures to assure the safe disposal of CCRs from electric generating plants. On September 13, 2017, the EPA announced that it would reconsider certain provisions of the final regulations. On July 29, 2020, the EPA published a final rule again revising the date that certain CCR impoundments must cease accepting waste and initiate closure to April 11, 2021. The final rule allowed for an extension of the closure deadline based on meeting identified site-specific criteria. On November 30, 2020, AE Supply submitted a closure deadline extension request to the EPA seeking to extend the cease accepting waste date for the McElroy's Run CCR impoundment facility through the end of the first quarter of 2024, which request is pending technical review by the EPA. AE Supply continues to operate McElroy’s Run as a disposal facility for Pleasants Power Station, which is owned and operated by a non-affiliate. Jointly Owned Plants AGC owns an undivided 16.25% interest (487 MWs) in the 3,003 MW Bath County pumped-storage, hydroelectric station in Virginia, operated by the 60% owner, VEPCO, a non-affiliated utility. Total property, plant and equipment includes $145 million representing AGC's share in this facility as of December 31, 2023. AGC is obligated to pay its share of the costs of this jointly owned facility in the same proportion as its ownership interests using its own financing. AGC's share of direct expenses of the joint plant is included in operating expenses on FirstEnergy's Consolidated Statements of Income. AGC provides the generation capacity from this facility to its owner, MP, which is recovered from the ENEC. NEW ACCOUNTING PRONOUNCEMENTS Recently Issued Pronouncements - The following new authoritative accounting guidance issued by the FASB has not yet been adopted. Unless otherwise indicated, FirstEnergy is currently assessing the impact such guidance may have on its financial statements and disclosures, as well as the potential to early adopt where applicable. FirstEnergy has assessed other FASB issuances of new standards not described below based upon the current expectation that such new standards will not significantly impact FirstEnergy's financial reporting. ASU 2022-03, " Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions " (Issued in June 2022): ASU 2022-03 clarifies current guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and introduces new disclosure requirements for those equity securities subject to contractual restrictions. For FirstEnergy, the guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years, with early adoption permitted. ASU 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures " (Issued in November 2023): ASU 2023-07 enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. Disclosure requirements within ASU 2023-07 include disclosing significant segment expenses by reportable segment if they are regularly provided to the CODM and included in each reported measure of segment profit or loss. Disclosures are required on both an annual and an interim basis. For FirstEnergy, the guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-09, " Income taxes (Topic 280): Improvements to Income Tax Disclosures |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE FirstEnergy accounts for revenues from contracts with customers under ASC 606, “ Revenue from Contracts with Customers. ” Revenue from leases, financial instruments, other contractual rights or obligations and other revenues that are not from contracts with customers are outside the scope of the standard and accounted for under other existing GAAP. FirstEnergy has elected to exclude sales taxes and other similar taxes collected on behalf of third parties from revenue as prescribed in the standard. As a result, tax collections and remittances are excluded from recognition in the income statement and instead recorded through the balance sheet. Excise and gross receipts taxes that are assessed on FirstEnergy are not subject to the election and are included in revenue. FirstEnergy has elected the optional invoice practical expedient for most of its revenues and utilizes the optional short-term contract exemption for transmission revenues due to the annual establishment of revenue requirements, which eliminates the need to provide certain revenue disclosures regarding unsatisfied performance obligations. FirstEnergy’s revenues are primarily derived from electric service provided by the Utilities and Transmission Companies. Regulated Distribution The Regulated Distribution segment distributes electricity through FirstEnergy’s utility operating companies and also controls 3,580 MWs of regulated electric generation capacity located primarily in West Virginia and Virginia. Each of the Utilities earns revenue from state-regulated rate tariffs under which it provides distribution services to residential, commercial and industrial customers in its service territory. The Utilities are obligated under the regulated construct to deliver power to customers reliably, as it is needed, which creates an implied monthly contract with the end-use customer. See Note 13, “Regulatory Matters,” for additional information on rate recovery mechanisms. Distribution and electric revenues are recognized over time as electricity is distributed and delivered to the customer and the customers consume the electricity immediately as delivery occurs. Retail generation sales relate to POLR, SOS, SSO and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland, as well as generation sales in West Virginia that are regulated by the WVPSC. Certain of the Utilities have default service obligations to provide power to non-shopping customers who have elected to continue to receive service under regulated retail tariffs. The volume of these sales varies depending on the level of shopping that occurs. Supply plans vary by state and by service territory. Default service for the Ohio Companies, Pennsylvania Companies, JCP&L and PE’s Maryland jurisdiction are provided through a competitive procurement process approved by each state’s respective commission. Retail generation revenues are recognized over time as electricity is delivered and consumed immediately by the customer. Wholesale sales primarily consist of generation and capacity sales into the PJM market from FirstEnergy’s regulated electric generation capacity and NUGs. Certain of the Utilities may also purchase power in the PJM markets to supply power to their customers. Generally, these power sales from generation and purchases to serve load are netted hourly and reported as either revenues or purchased power on the Consolidated Statements of Income based on whether the entity was a net seller or buyer each hour. Capacity revenues are recognized ratably over the PJM planning year at prices cleared in the annual PJM Reliability Pricing Model Base Residual Auction and Incremental Auctions. Capacity purchases and sales through PJM capacity auctions are reported within revenues on the Consolidated Statements of Income. Certain capacity income (bonuses) and charges (penalties) related to the availability of units that have cleared in the auctions are unknown and not recorded in revenue until, and unless, they occur. The Utilities’ distribution customers are metered on a cycle basis. An estimate of unbilled revenues is calculated to recognize electric service provided from the last meter reading through the end of the month. This estimate includes many factors, among which are historical customer usage, load profiles, estimated weather impacts, customer shopping activity and prices in effect for each class of customer. In each accounting period, the Utilities accrue the estimated unbilled amount as revenue and reverse the related prior period estimate. Customer payments vary by state but are generally due within 30 days. ASC 606 excludes industry-specific accounting guidance for recognizing revenue from Alternative Revenue Programs as these programs represent contracts between the utility and its regulators, as opposed to customers. Therefore, revenues from these programs are not within the scope of ASC 606 and regulated utilities are permitted to continue to recognize such revenues in accordance with existing practice but are presented separately from revenue arising from contracts with customers. Regulated Transmission The Regulated Transmission segment provides transmission infrastructure owned and operated by the Transmission Companies and certain of FirstEnergy's utilities (JCP&L, MP, PE and WP) to transmit electricity from generation sources to distribution facilities. The segment's revenues are derived from primarily forward-looking formula rates. See Note 13, “Regulatory Matters,” for additional information. Forward-looking formula rates recover costs that the regulatory agencies determine are permitted to be recovered and provide a return on transmission capital investment. Under forward-looking formula rates, the revenue requirement is updated annually based on a projected rate base and projected costs, which is subject to an annual true-up based on rate base and actual costs. Revenues and cash receipts for the stand-ready obligation of providing transmission service are recognized ratably over time. The following represents a disaggregation of revenue from contracts with customers for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, (In millions) 2023 2022 2021 Regulated Distribution Retail generation and distribution services (1) Residential $ 6,583 $ 6,180 $ 5,713 Commercial 2,600 2,499 2,284 Industrial 1,298 1,338 1,091 Street lighting/Other 105 85 75 Wholesale 228 494 362 Other revenue from contracts with customers (2) 113 104 119 Total revenues from contracts with customers 10,927 10,700 9,644 Alternative Revenue Program (3) — — (27) Other revenue unrelated to contracts with customers (4) 111 101 94 Total Regulated Distribution $ 11,038 $ 10,801 $ 9,711 Regulated Transmission ATSI $ 968 $ 912 $ 799 TrAIL 279 270 233 MAIT 395 340 288 JCP&L 205 203 164 MP, PE and WP 202 138 124 Total revenues from contracts with customers 2,049 1,863 1,608 Other revenue unrelated to contracts with customers 5 5 10 Total Regulated Transmission $ 2,054 $ 1,868 $ 1,618 Corporate/Other and Reconciling Adjustments (5) Wholesale $ 11 $ 27 $ 14 Retail generation and distribution services (5) (181) (186) (154) Other revenue unrelated to contracts with customers (5) (52) (51) (57) Total Corporate/Other and Reconciling $ (222) $ (210) $ (197) FirstEnergy Total Revenues $ 12,870 $ 12,459 $ 11,132 (1) Includes approximately $58 million and $38 million as of December 31, 2022 and 2021, respectively, of customer refunds associated with the Ohio Stipulation that became effective in December 2021. See Note 13, “Regulatory Matters,” for further discussion. (2) Primarily includes amounts collected from customers to administer and repay securitization bonds and pole attachment revenue. (3) Reflects amount the Ohio Companies refunded to customers that was previously collected under decoupling mechanisms, with interest. (4) Primarily includes late payment charges and revenue from derivatives. (5) Includes eliminations and reconciling adjustments of inter-segment revenues. RECEIVABLES Receivables from contracts with customers include retail electric sales and distribution deliveries to residential, commercial and industrial customers of the Utilities. Billed and unbilled customer receivables as of December 31, 2023 and 2022, are included below. As of December 31, Customer Receivables 2023 2022 (In millions) Billed (1) $ 717 $ 674 Unbilled 665 781 1,382 1,455 Less: Uncollectible Reserve 64 137 Total Customer Receivables $ 1,318 $ 1,318 (1) Includes approximately $288 million and $290 million as of December 31, 2023 and 2022, respectively, that are past due by greater than 30 days. The allowance for uncollectible customer receivables is based on historical loss information comprised of a rolling 36-month average net write-off percentage of revenues, in conjunction with a qualitative assessment of elements that impact the collectability of receivables to determine if allowances for uncollectible customer receivables should be further adjusted in accordance with the accounting guidance for credit losses. FirstEnergy reviews its allowance for uncollectible customer receivables utilizing a quantitative and qualitative assessment. Management contemplates available current information such as changes in economic factors, regulatory matters, industry trends, customer credit factors, amount of receivable balances that are past-due, payment options and programs available to customers, and the methods that the Utilities are able to utilize to ensure payment. This analysis includes consideration of the outbreak of the pandemic and the impact on customer receivable balances outstanding and write-offs since the pandemic began and subsequent economic slowdown. FirstEnergy’s uncollectible risk on PJM receivables, resulting from transmission and wholesale sales, is minimal due to the nature of PJM’s settlement process and as a result there is no current allowance for doubtful accounts. During 2023, various regulatory actions, including extended installment plans, continue to impact the level of past due balances in certain states, resulting in the allowances for uncollectible customer receivables to remain elevated above 2019 pre-pandemic levels. However, normal collection activity has resumed, and arrears levels continue to decline towards pre-pandemic levels. As a result, FirstEnergy recognized a $77 million decrease to its allowance during 2023, of which $41 million was applied to existing deferred regulatory assets. Activity in the allowance for uncollectible accounts on receivables for the years ended December 31, 2023, 2022 and 2021 are as follows: (In millions) 2023 2022 2021 Customer Receivables: Beginning of year balance $ 137 $ 159 $ 164 Charged to income (1) 8 59 54 Charged to other accounts (2) 34 62 42 Write-offs (115) (143) (101) End of year balance $ 64 $ 137 $ 159 Other Receivables: Beginning of year balance $ 11 $ 10 $ 26 Charged to income 7 4 3 Charged to other accounts (2) (1) 4 3 Write-offs (2) (7) (22) End of year balance $ 15 $ 11 $ 10 (1) Customer receivable amounts charged to income for the years ended December 31, 2023, 2022, and 2021, include approximately $(15) million, $11 million, and $12 million, respectively, deferred for future recovery (refund). (2) Represents recoveries and reinstatements of accounts previously written off for uncollectible accounts. |
EARNINGS PER SHARE OF COMMON ST
EARNINGS PER SHARE OF COMMON STOCK | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE OF COMMON STOCK | EARNINGS PER SHARE OF COMMON STOCK EPS is calculated by dividing earnings attributable to FE by the weighted average number of common shares outstanding. Basic EPS is computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted EPS of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised. Diluted EPS reflects the dilutive effect of potential common shares from share-based awards and convertible securities. The dilutive effect of outstanding share-based awards was computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of the award would be used to purchase common stock at the average market price for the period. The dilutive effect of the 2026 Convertible Notes, as further discussed in Note 11, "Capitalization" under Long-term debt and other long-term obligations, is computed using the if-converted method. The following table reconciles basic and diluted EPS attributable to FE: For the Years Ended December 31, Reconciliation of Basic and Diluted EPS of Common Stock 2023 2022 2021 (In millions, except per share amounts) Earnings Attributable to FE - continuing operations $ 1,123 $ 406 $ 1,239 Earnings Attributable to FE - discontinued operations, net of tax (21) — 44 Earnings Attributable to FE $ 1,102 $ 406 $ 1,283 Share Count information: Weighted average number of basic shares outstanding 573 571 545 Assumed exercise of dilutive share-based awards 1 1 1 Weighted average number of diluted shares outstanding 574 572 546 EPS Attributable to FE: Income from continuing operations, basic $ 1.96 $ 0.71 $ 2.27 Discontinued operations, basic (0.04) — 0.08 Basic EPS $ 1.92 $ 0.71 $ 2.35 Income from continuing operations, diluted $ 1.96 $ 0.71 $ 2.27 Discontinued operations, diluted (0.04) — 0.08 Diluted EPS $ 1.92 $ 0.71 $ 2.35 For the years ended December 31, 2023, 2022 and 2021, there was no material amount of shares excluded from the calculation of diluted shares outstanding, as their inclusion would be antidilutive. The dilutive effect of the 2026 Convertible Notes is limited to the conversion obligation in excess of the aggregate principal amount of the 2026 Convertible Notes being converted. For the year ended December 31, 2023, there was no dilutive effect resulting from the 2026 Convertible Notes as the average market price of FE shares of common stock was below the initial conversion price of $46.81 per share. See Note 11, "Capitalization" for additional details on the 2026 Convertible Notes that were issued during the second quarter of 2023. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in AOCI for the years ended December 31, 2023, 2022 and 2021, for FirstEnergy are shown in the following table: 2023 2022 2021 (In millions) Gains & Losses on Cash Flow Hedges (1) AOCI Balance, January 1, $ — $ (7) $ (8) Amounts reclassified from AOCI 2 9 1 Income tax on other comprehensive income — 2 — Other comprehensive income, net of tax 2 7 1 AOCI Balance, December 31, $ 2 $ — $ (7) Defined Benefit Pension & OPEB Plans (2)(3) AOCI Balance, January 1, $ (14) $ (8) $ 3 Amounts reclassified from AOCI (6) (9) (14) Income tax benefits on other comprehensive loss (1) (3) (3) Other comprehensive loss, net of tax (5) (6) (11) AOCI Balance, December 31, $ (19) $ (14) $ (8) Total FirstEnergy Corp. AOCI AOCI Balance, January 1, $ (14) $ (15) $ (5) Other comprehensive income (loss), net of tax (3) 1 (10) AOCI Balance, December 31, $ (17) $ (14) $ (15) (1) Relates to previous cash flow hedges used to hedge fixed rate long-term debt securities prior to their issuance. Amounts reclassified from AOCI affects Interest expense line item in Consolidated Statements of Income. (2) Amortization of prior service costs are reported within Miscellaneous income, net within Other Income (Expense) on FirstEnergy’s Consolidated Statements of Income. Components are included in the computation of net periodic cost (credits), see Note 5, "Pension and Other Postemployment Benefits," for additional details. (3) Income tax (benefits) on other comprehensive income (loss) affects Income taxes line item in Consolidated Statements of Income. |
PENSION AND OTHER POST-EMPLOYME
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | PENSION AND OTHER POSTEMPLOYMENT BENEFITS FirstEnergy provides noncontributory qualified defined benefit pension plans that cover substantially all of its employees and non-qualified pension plans that cover certain employees. The plans provide defined benefits based on years of service and compensation levels. Under the cash-balance portion of the pension plan (for employees hired on or after January 1, 2014), FirstEnergy makes contributions to eligible employee retirement accounts based on a pay credit and an interest credit. In addition, FirstEnergy provides a minimum amount of noncontributory life insurance to retired employees in addition to optional contributory insurance. Health care benefits, which include certain employee contributions, deductibles and co-payments, are also available upon retirement to certain employees, their dependents and, under certain circumstances, their survivors. FirstEnergy recognizes the expected cost of providing pension and OPEB to employees and their beneficiaries and covered dependents from the time employees are hired until they become eligible to receive those benefits. FirstEnergy also has obligations to former or inactive employees after employment, but before retirement, for disability-related benefits. On May 9, 2023, FirstEnergy announced a voluntary retirement program for eligible non-bargaining employees, known as the PEER. More than 65% of eligible employees, totaling approximately 450 employees, accepted the PEER, which included lump sum compensation equivalent to severance benefits, healthcare continuation costs and a temporary pension enhancement. Most PEER participating employees departed in 2023. The temporary pension enhancement and healthcare continuation costs are classified as special termination costs within net periodic benefit costs (credits). In addition to the PEER, FirstEnergy notified and involuntarily separated approximately 90 employees on May 9, 2023. Management expects the cost savings resulting from these initiatives to support FirstEnergy’s growth plans. FirstEnergy’s pension funding policy is based on actuarial computations using the projected unit credit method. On May 12, 2023, FirstEnergy made a $750 million voluntary cash contribution to the qualified pension plan. FirstEnergy does not currently expect to have a required contribution to the pension plan until 2028, which based on various assumptions, including an expected rate of return on assets of 8.0%, is expected to be approximately $260 million. However, FirstEnergy may elect to contribute to the pension plan voluntarily. Pension and OPEB costs are affected by employee demographics (including age, compensation levels and employment periods), the level of contributions made to the plans and earnings on plan assets. Pension and OPEB costs may also be affected by changes in key assumptions, including anticipated rates of return on plan assets, the discount rates and health care trend rates used in determining the projected benefit obligations for pension and OPEB costs. FirstEnergy uses a December 31 measurement date for its pension and OPEB plans or whenever a plan is determined to qualify for a remeasurement. The fair value of the plan assets represents the actual market value as of the measurement date. Actuarial Assumptions Pension OPEB 2023 (2) 2022 2021 2023 (2) 2022 2021 Assumptions Related to Benefit Obligations: Discount rate 5.05 % 5.23 % 3.02 % 4.97 % 5.16 % 2.84 % Rate of compensation increase 4.30 % 4.30 % 4.10 % N/A N/A N/A Cash balance weighted average interest crediting rate 4.94 % 4.04 % 2.57 % N/A N/A N/A Assumptions Related to Benefit Costs: (1) Effective rate for interest on benefit obligations 5.10% / 4.80% 2.44 % 1.94 % 5.06 % 2.18 % 1.66 % Effective rate for service costs 5.34% / 5.11% 3.28 % 3.10 % 5.41 % 3.41 % 3.03 % Effective rate for interest on service costs 5.22% / 4.94% 2.96 % 2.58 % 5.33 % 3.24 % 2.83 % Expected return on plan assets 8.00 % 7.50 % 7.50 % 7.00 % 7.50 % 7.50 % Rate of compensation increase 4.30 % 4.10 % 4.10 % N/A N/A N/A Assumed Health Care Cost Trend Rates: Health care cost trend rate assumed (pre/post-Medicare) N/A N/A N/A 7.00%- 6.50% 6.00%- 5.50% 5.75%- 5.25% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate N/A N/A N/A 2033 2029 2028 (1) Excludes impact of pension and OPEB mark-to-market adjustments. (2) As a result of the interim plan remeasurement during 2023, there were different rates in effect from January 1, 2023, through April 30, 2023 compared to May 1, 2023 through December 31, 2023. Discount Rate - In selecting an assumed discount rate, FirstEnergy considers currently available rates of return on high-quality fixed income investments expected to be available during the period to maturity of the pension and OPEB obligations. The assumed rates of return on plan assets consider historical market returns and economic forecasts for the types of investments held by FirstEnergy’s pension trusts. The long-term rate of return is developed considering the portfolio’s asset allocation strategy. FirstEnergy utilizes a spot rate approach in the estimation of the components of benefit cost by applying specific spot rates along the full yield curve to the relevant projected cash flows. Expected Return on Plan Assets - The expected return on pension and OPEB assets is based on input from investment consultants, including the trusts’ asset allocation targets, the historical performance of risk-based and fixed income securities and other factors. The gains or losses generated as a result of the difference between expected and actual returns on plan assets is recognized as a pension and OPEB mark-to-market adjustment in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for remeasurement. Pension and OPEB Returns 2023 2022 2021 Actual gains or (losses) on plan assets - $ millions $ 751 $ (1,830) $ 689 Actual gains or (losses) on plan assets - % 11.2 % (19.1) % 7.9 % Expected return on plan assets - $ millions $ 601 $ 696 $ 688 Expected return on plan assets - % 8.00% for pension 7.00% for OPEB 7.50 % 7.50 % Mortality Rates - During 2023, the Society of Actuaries elected not to release a new mortality improvement scale due to data available being severely impacted by COVID-19. It was determined that the Pri-2012 mortality table with projection scale MP-2021, actuarially adjusted to reflect increased mortality due to the ongoing impact of COVID-19 was most appropriate and such was utilized to determine the obligation as of December 31, 2023, for the FirstEnergy pension and OPEB plans. This adjustment acknowledges COVID-19 cannot be eradicated and assumes reductions in other causes will not offset future COVID-19 deaths enough to produce a normal level of improvements. Net Periodic Benefit Costs (Credits) - In addition to service costs, interest on obligations, expected return on plan assets, and prior service costs, FirstEnergy recognizes in net periodic benefit costs a pension and OPEB mark-to-market adjustment for the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. Service costs, net of capitalization, are reported within Other operating expenses on FirstEnergy’s Consolidated Statements of Income. Non-service costs, other than the pension and OPEB mark-to-market adjustment, which is separately shown, are reported within Miscellaneous income, net, within Other Income (Expense) on FirstEnergy’s Consolidated Statements of Income. Components of Net Periodic Benefit Costs (Credits) for the Years Ended December 31, Pension OPEB 2023 2022 2021 2023 2022 2021 (In millions) Service cost (1) $ 139 $ 184 $ 195 $ 2 $ 3 $ 4 Interest cost 428 273 226 21 11 11 Expected return on plan assets (570) (657) (652) (31) (39) (36) Amortization of prior service costs (credits) 2 2 3 (8) (11) (17) Special termination benefits (2) 21 — — 8 — — Pension & OPEB mark-to-market 108 (98) (253) (30) 26 (129) Net periodic benefit costs (credits) $ 128 $ (296) $ (481) $ (38) $ (10) $ (167) (1) Includes amounts capitalized. (2) Related to benefits provided in connection with the PEER. For the years ended December 31, 2023, 2022 and 2021, approximately $36 million, $15 million and $(31) million, respectively, of the annual pension and OPEB mark-to-market charges (credits) were allocated to the Regulated Transmission companies under forward-looking formula rates, and expected to be refunded or recovered through formula transmission rates. FirstEnergy recognizes a pension and OPEB mark-to-market adjustment for the change in fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for remeasurement. The size of the voluntary contribution made on May 12, 2023, in relation to total pension assets triggered a remeasurement of the pension plan, and as a result, FirstEnergy recognized a non-cash, pre-tax pension mark-to-market adjustment gain of approximately $59 million in the second quarter of 2023. FirstEnergy elected the practical expedient to remeasure pension plan assets and obligations as of April 30, 2023, which is the month-end closest to the date of the voluntary contribution. The pension mark-to-market adjustment primarily reflects higher than expected return on assets, partially offset by a 29 basis points decrease in the discount rate used to measure benefit obligations. In the fourth quarter of 2023, FirstEnergy recognized a $137 million pension and OPEB mark-to-market adjustment loss, primarily reflecting lower than expected return on assets, partially offset by an 11 basis points increase in the discount rate used to measure pension benefit obligations from May 1, 2023, and the gain associated with the pension lift-out, as described below. In December 2023, FirstEnergy, executed a lift-out transaction with Banner Life Insurance Company and Reinsurance Group of America that transferred approximately $683 million of plan assets and $719 million of plan obligations, associated with approximately 1,900 former FES and FENOC employees, who will assume future and full responsibility to fund and administer their benefit payments. There was no change to the pension benefits for any participants as a result of the transfer. The transaction was funded by pension plan assets and resulted in a pre-tax gain of approximately $36 million, which was included in the fourth quarter 2023 pension mark-to-market charge. FirstEnergy expects that the transaction further de-risked potential volatility with the pension plan assets and liabilities, and FirstEnergy will continue to evaluate other lift-outs in the future based on market and other conditions. Pension OPEB Obligations/Funded Status - Qualified and Non-Qualified Plans 2023 2022 2023 2022 (In millions) Change in benefit obligation: Benefit obligation as of January 1 $ 8,828 $ 11,479 $ 439 $ 549 Service cost 139 184 2 3 Interest cost 428 273 21 11 Plan participants’ contributions — — 4 3 Special termination benefits 21 — 8 — Medicare retiree drug subsidy — — — 1 Lift-out transaction (719) — — — Actuarial loss (gain) 256 (2,515) 8 (83) Benefits paid (590) (593) (41) (45) Benefit obligation as of December 31 $ 8,363 $ 8,828 $ 441 $ 439 Change in fair value of plan assets: Fair value of plan assets as of January 1 $ 6,693 $ 9,020 $ 460 $ 548 Actual return on plan assets 682 (1,760) 69 (70) Lift-out transaction (683) — — — Company contributions 777 26 24 24 Plan participants’ contributions — — 4 3 Benefits paid (590) (593) (41) (45) Fair value of plan assets as of December 31 $ 6,879 $ 6,693 $ 516 $ 460 Funded Status: Qualified plan $ (1,090) $ (1,734) $ — $ — Non-qualified plans (394) (401) — — Funded Status (Net liability as of December 31) $ (1,484) $ (2,135) $ 75 $ 21 Accumulated benefit obligation $ 7,324 $ 8,500 $ — $ — Amounts Recognized in AOCI: Prior service cost (credit) $ 4 $ 6 $ (1) $ (10) The following tables set forth pension financial assets that are accounted for at fair value by level within the fair value hierarchy. See Note 10, "Fair Value Measurements," for a description of each level of the fair value hierarchy. There were no significant transfers between levels during 2023 and 2022. December 31, 2023 Asset Allocation Level 1 Level 2 Level 3 Total (In millions) Cash and short-term securities $ — $ 755 $ — $ 755 11 % Public equity 1,811 4 — 1,815 26 % Fixed income — 1,784 — 1,784 26 % Derivatives 2 37 — 39 — % Total (1) $ 1,813 $ 2,580 $ — $ 4,393 63 % Private - equity and debt funds (2) 1,296 19 % Insurance-linked securities (2) 107 2 % Hedge funds (2) 410 6 % Real estate funds (2) 721 10 % Total Investments $ 6,927 100 % (1) Excludes $(48) million as of December 31, 2023, of receivables, payables, taxes, cash collateral for derivatives and accrued income associated with financial instruments reflected within the fair value table. (2) NAV used as a practical expedient to approximate fair value. December 31, 2022 Asset Allocation Level 1 Level 2 Level 3 Total (In millions) Cash and short-term securities $ — $ 714 $ — $ 714 11 % Public equity 1,871 216 — 2,087 33 % Fixed income — 942 — 942 15 % Derivatives (38) 2 — (36) (1) % Total (1) $ 1,833 $ 1,874 $ — $ 3,707 58 % Private - equity and debt funds (2) 1,061 17 % Insurance-linked securities (2) 159 3 % Hedge funds (2) 563 9 % Real estate funds (2) 853 13 % Total Investments $ 6,343 100 % (1) Excludes $350 million as of December 31, 2022, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. (2) NAV used as a practical expedient to approximate fair value. Private – equity and debt funds: Private equity and private debt funds primarily include limited partnerships that invest in equity or directly originated senior loans of high-quality middle market operating companies. Distributions are received periodically through the liquidation of underlying assets in each fund. For most private equity and debt funds, immediate access to capital at the limited partner’s discretion is not available and such funds prevent full redemption and return of capital until fund liquidation. The purpose of each fund is to maximize total return of capital with an emphasis on minimizing default risk. Each fund’s NAV is made available to fund participants quarterly. Insurance Linked Securities funds : The insurance linked securities funds invest in securities which indirectly participate in portfolios of reinsurance and retrocession contracts which primarily cover catastrophe property risks. Redemptions can be achieved with 90-day notices with gating factors that may apply. The purpose of these investments is to generate attractive risk-adjusted returns that are demonstrably uncorrelated with traditional asset classes. Each fund’s NAV is made available to fund participants monthly. Hedge funds : The hedge funds invest in a combination of long and short equity, multi-strategy, global macro and structured credit strategies. Redemptions can be achieved with 90-day notices with gating factors that may apply. The purpose of these investments is to deliver diversified risk-adjusted returns to traditional asset classes. Each fund’s NAV is made available to fund participants monthly. Real estate funds: The real estate funds primarily invest in U.S commercial real estate markets that include office, residential, retail, industrial, life science/lab space, storage and student housing. The investment values of the real estate properties are determined on a quarterly basis by independent market appraisers hired by the board of directors of each fund. Distributions from each fund will be received as the underlying investments of the fund are liquidated. Each investor’s ability to withdraw capital from certain funds may be limited depending on whether a queue has been established. The purpose of each fund is to invest in real estate and real estate related assets that generate a total return from current income and capital appreciation which exceeds the applicable fund’s index. Each fund’s NAV is made available to fund participants quarterly. As of December 31, 2023, and 2022, the OPEB trust investments measured at fair value were as follows: December 31, 2023 Asset Allocation Level 1 Level 2 Level 3 Total (In millions) Cash and short-term securities $ — $ 100 $ — $ 100 19 % Public equity 258 — — 258 50 % Fixed income — 158 — 158 31 % Total $ 258 $ 258 $ — $ 516 100 % December 31, 2022 Asset Allocation Level 1 Level 2 Level 3 Total (In millions) Cash and short-term securities $ — $ 87 $ — $ 87 19 % Public equity 217 — — 217 47 % Fixed income: — 157 — 157 34 % Total (1) $ 217 $ 244 $ — $ 461 100 % (1) Excludes $(1) million as of December 31, 2022, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. FirstEnergy’s target asset allocations for its pension and OPEB trust portfolios for 2023 were as follows : Target Asset Allocations Pension OPEB Equities 30 % 50 % Fixed income 28.5 % 50 % Alternative investments 5 % — % Real estate 10 % — % Private - equity and debt funds 20 % — % Cash and derivatives 6.5 % — % 100 % 100 % FirstEnergy follows a total return investment approach using a mix of equities, fixed income and other available investments while taking into account the pension plan liabilities to optimize the long-term return on plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed-income investments. Equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value, and small and large capitalization funds. Other assets such as real estate and private equity are used to enhance long-term returns while improving portfolio diversification. Derivatives may be used to gain market exposure in an efficient and timely manner; however, derivatives are not used to leverage the portfolio beyond the market value of the underlying investments. Investment risk is measured and monitored on a continuing basis through periodic investment portfolio reviews, annual liability measurements and periodic asset/liability studies. Taking into account estimated employee future service, FirstEnergy expects to make the following benefit payments from plan assets and other payments, net of participant contribution. OPEB Pension Benefit Payments Subsidy Receipts (In millions) 2024 $ 554 $ 49 $ (1) 2025 562 41 (1) 2026 564 40 — 2027 569 39 — 2028 571 37 — Years 2029-2033 2,877 164 (2) |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS FirstEnergy grants stock-based awards through the ICP 2020, primarily in the form of restricted stock and performance-based restricted stock units. No shares are available for future grants or issuance under ICP 2015. The ICP 2020 and ICP 2015 include shareholder authorization to each issue 10 million shares of common stock or their equivalent. Shares not issued due to forfeitures or cancellations originally granted through the ICP 2015 may be added back to the ICP 2020. As of December 31, 2023, approximately 10.1 million shares were available for future grants under the ICP 2020 assuming maximum performance metrics are achieved for the outstanding cycles of restricted stock units. Shares granted under the ICP 2020 are issued from authorized but unissued common stock. Vesting periods for stock-based awards range from less than a year, primarily due to the issuance of prorated awards to newly hired executives, to four years, with the majority of awards having a vesting period of three years. FirstEnergy also issues stock through its 401(k) savings plan and DCPD. Currently, FirstEnergy records the compensation costs for stock-based compensation awards that will be paid in stock over the vesting period based on the fair value on the grant date. FirstEnergy accounts for forfeitures as they occur. FirstEnergy adjusts the compensation costs for stock-based compensation awards that will be paid in cash based on changes in the fair value of the award as of each reporting date. FirstEnergy records the actual tax benefit realized from tax deductions when awards are exercised or settled. Actual income tax benefits realized during the years ended December 31, 2023, 2022 and 2021, were $6 million, $8 million and $10 million, respectively. The income tax effects of awards are recognized in the income statement when the awards vest, are settled or are forfeited. Stock-based compensation costs and the amount of stock-based compensation costs capitalized related to FirstEnergy plans for the years ended December 31, 2023, 2022 and 2021, are included in the following tables: For the Years Ended December 31, Stock-based Compensation Plan 2023 2022 2021 (In millions) Restricted stock units $ 39 $ 55 $ 40 Restricted stock 5 3 2 401(k) savings plan 38 36 35 EDCP & DCPD 1 7 13 Total $ 83 $ 101 $ 90 Stock-based compensation costs, net of amounts capitalized $ 44 $ 54 $ 43 Income tax benefits associated with stock-based compensation plan expense were $6 million, $8 million and $5 million for the years ended December 31, 2023, 2022 and 2021, respectively. Restricted Stock Units Two-thirds of each performance-based restricted stock unit award will be paid in stock and one-third will be paid in cash. Restricted stock units payable in stock provide the participant the right to receive, at the end of the period of restriction, a number of shares of common stock equal to the number of stock units set forth in the agreement, subject to adjustment based on FirstEnergy's performance relative to financial and operational performance targets applicable to each award. The grant date fair market value of the stock portion of the restricted stock unit award is measured based on the average of the high and low prices of FE common stock on the date of grant. Restricted stock units include a performance metric consisting of a relative total shareholder return modifier utilizing the S&P 500 Utility Index as a comparator group. The estimated grant date fair value for these awards is calculated using the Monte Carlo simulation method. Beginning with awards granted in 2022, restricted stock units include a relative total shareholder return as a performance metric, weighted at 35%, utilizing the S&P 500 Utility Index as a comparator group. The estimated grant date fair value for these awards is also calculated using the Monte Carlo simulation method. In addition, outstanding awards are subject to an absolute total shareholder return, if FirstEnergy's total shareholder return is negative for the three Restricted stock units payable in cash provide the participant the right to receive cash based on the number of stock units set forth in the agreement and value of the equivalent number of shares of FE common stock as of the vesting date. The cash portion of the restricted stock unit award is considered a liability award, which is remeasured each period based on FE's stock price and projected performance adjustments. The liability recorded for the portion of performance-based restricted stock units payable in cash in the future as of December 31, 2023, was $22 million. During 2023, approximately $6 million was paid in relation to the cash portion of restricted stock unit obligations that vested in 2023. The vesting period for the performance-based restricted stock unit awards granted in 2023, 2022 and 2021, were each three years. Dividend equivalents are received on the restricted stock units and are reinvested in additional restricted stock units and subject to the same performance conditions as the underlying award. Restricted stock unit activity for the year ended December 31, 2023, was as follows: Restricted Stock Unit Activity Shares (in millions) Weighted-Average Grant Date Fair Value (per share) Nonvested as of January 1, 2023 1.9 $ 41.57 Granted in 2023 1.4 38.36 Forfeited in 2023 (0.2) 39.32 Vested in 2023 (1) (0.6) 39.38 Nonvested as of December 31, 2023 2.5 $ 38.82 (1) Excludes dividend equivalents of approximately 63 thousand shares earned during vesting period. The weighted-average fair value per share of awards granted in 2023, 2022 and 2021 was $38.36, $41.49 and $35.50 per share, respectively. For the years ended December 31, 2023, 2022, and 2021, the fair value of restricted stock units vested was $24 million, $26 million, and $34 million, respectively. As of December 31, 2023, there was approximately $32 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted for restricted stock units, which is expected to be recognized over a period of approximately three years. Restricted Stock Certain employees receive awards of FE restricted stock (as opposed to "units" with the right to receive shares at the end of the restriction period) subject to restrictions that lapse over a defined period of time. The fair value of restricted stock is measured based on the average of the high and low prices of FE common stock on the date of grant. Dividends are received on the restricted stock and are reinvested in additional shares of restricted stock, subject to the vesting conditions of the underlying award. Restricted stock activity for the year ended 2023, was as follows: Restricted Stock Activity Shares (in millions) Weighted-Average Grant Date Fair Value (per share) Nonvested as of January 1, 2023 0.20 $ 42.35 Granted in 2023 0.30 37.42 Forfeited in 2023 (0.02) 36.86 Vested in 2023 (0.02) 39.45 Nonvested as of December 31, 2023 0.46 $ 39.57 The weighted average vesting period for restricted stock granted in 2023 was 2.4 years. As of December 31, 2023, there was $11 million of total unrecognized compensation cost related to non-vested restricted stock, which is expected to be recognized over a period of approximately four years. 401(k) Savings Plan In each of 2023 and 2022, approximately 1 million shares of FE common stock, respectively, were issued and contributed to employee participants' accounts. EDCP Under the EDCP, certain employees can defer a portion of their compensation, including base salary, annual incentive awards and/or long-term incentive awards, into unfunded accounts. Annual incentive and long-term incentive awards may be deferred in FE stock accounts, where they are tracked as units. Base salary and annual incentive awards may be deferred into a retirement cash account which earns interest. Dividend equivalents are calculated quarterly on stock units outstanding and are credited in the form of additional stock units. Awards deferred into a retirement stock account will pay out in cash upon separation, including retirement, death or disability. Interest accrues on the cash allocated to the retirement cash account and the balance will pay out in cash as a lump sum or over a defined period of time period as elected by the participant. The liability recognized for EDCP of approximately $175 million and $193 million as of December 31, 2023 and 2022, respectively, is included in “Retirement benefits,” on the Consolidated Balance Sheets. DCPD Under the DCPD, members of the FE Board can elect to defer all or a portion of their equity retainers to a deferred stock account and their cash retainers to deferred stock or deferred cash accounts. The net liability recognized for DCPD of approximately $4 million and $8 million as of December 31, 2023 and 2022, respectively, is included in “Retirement benefits,” on the Consolidated Balance Sheets. |
TAXES
TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXES | TAXES FirstEnergy records income taxes in accordance with the liability method of accounting. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recognized for tax purposes. Investment tax credits, which were deferred when utilized, are being amortized over the recovery period of the related property. Deferred income tax liabilities related to temporary tax and accounting basis differences and tax credit carryforward items are recognized at the statutory income tax rates in effect when the liabilities are expected to be paid. Deferred tax assets are recognized based on income tax rates expected to be in effect when they are settled. FE and its subsidiaries are party to an intercompany income tax allocation agreement that provides for the allocation of consolidated tax liabilities. On August 16, 2022, President Biden signed into law the IRA of 2022, which, among other things, imposes a new 15% corporate AMT based on AFSI applicable to corporations with a three-year average AFSI over $1 billion. The AMT is effective for the 2023 tax year and, if applicable, corporations must pay the greater of the regular corporate income tax or the AMT. Although NOL carryforwards created through the regular corporate income tax system cannot be used to reduce the AMT, financial statement net operating losses can be used to reduce AFSI and the amount of AMT owed. The IRA of 2022 as enacted requires the U.S. Treasury to provide regulations and other guidance necessary to administer the AMT, including further defining allowable adjustments to determine AFSI, which directly impacts the amount of AMT to be paid. Based on interim guidance issued by the U.S. Treasury during 2022 and 2023, FirstEnergy continues to believe that it is more likely than not it will be subject to the AMT beginning in 2023. Accordingly, FirstEnergy made a first quarter estimated payment of AMT of approximately $49 million in April 2023. In June 2023, the U.S. Treasury issued additional guidance that eliminated the requirement of corporations to include AMT in quarterly estimated tax payments, pending further guidance on the application and administration of AMT. Therefore, as a result of guidance issued to date, the current forecast of AMT obligation, and the amount of AMT already paid in April 2023, FirstEnergy did not make any additional AMT payments for the 2023 tax year. Until final U.S. Treasury regulations are issued, the amount of AMT FirstEnergy pays could be significantly different than current estimates or it may not be a payer at all. The regulatory treatment of the impacts of this legislation may also be subject to regulation by FERC and/or applicable state regulatory authorities. Any adverse development in this legislation, including guidance from the U.S. Treasury and/or the IRS or unfavorable regulatory treatment, could negatively impact FirstEnergy’s cash flows, results of operations and financial condition. As discussed above, FirstEnergy expects to close on the sale of an additional 30% interest in FET in 2024, at which time FirstEnergy expects to realize an approximate $7.5 billion tax gain from the combined sale of 49.9% of the membership interests of FET for consideration received and recapture of negative tax basis in FET. As of December 31, 2023, FirstEnergy had approximately $8.1 billion of gross federal NOL carryforwards, as further discussed below, which will be used to offset a majority of the tax gain from the FET sale and expected taxable income in 2024, however due to certain limitations on utilization enacted in the Tax Act, a portion of the NOL will carry into 2025 and possibly beyond. As a result of the expected additional 30% sale in FET, FirstEnergy recognized a charge to income tax expense in the fourth quarter of 2022 of approximately $752 million, representing the deferred tax liability associated with the deferred tax gain on the initial 19.9% sale of FET that closed in May 2022, such deferred gain consisting of consideration received on the sale and the recapture of estimated negative tax basis in FET impacted by taxable income and loss among other factors. In the fourth quarter of 2023, FirstEnergy recognized a charge to income tax expense of approximately $58 million as a true-up of the deferred tax liability associated with the deferred tax gain. During the third quarter of 2023, FirstEnergy recognized a tax benefit of approximately $65 million, net of a reserve for uncertain tax positions, from the reduction of state income taxes and partial release of a valuation allowance for the expected utilization of state NOL based on an assessment of regulated business operations and a change in the composition of a state tax return filing group. In the fourth quarter of 2023, FirstEnergy recognized a tax benefit of approximately $37 million from the remeasurement of valuation allowance previously recorded on business interest expense carryforwards, net of carryforward adjustments, based on the expectation that FirstEnergy will be able to utilize these tax benefits on realized and future earnings and distributions from FirstEnergy’s interests in FET and FEV. The business interest expense could not be deducted previously due to certain limitations imposed on interest expense from non-utility operations under section 163(j) of the Tax Act, however, the Tax Act provides that the nondeductible interest can be carried forward indefinitely and deducted against income from non-utility operations. During 2022, FirstEnergy recognized an approximate $38 million tax benefit from remeasurement of the prior valuation allowance on interest expense carryforwards. On March 29, 2023, the West Virginia Governor signed into law House Bill 3286, which provides corporate taxpayers a reduction to pre-apportionment federal taxable income with the amount necessary to offset the increase in the net deferred tax liability (or decrease in the net deferred tax asset) caused by West Virginia’s apportionment law change enacted in 2021. Beginning with the 2033 tax year, qualifying taxpayers can subtract one-tenth of the amount each year for ten years. Taxpayers intending to claim this subtraction will have to file a statement with the West Virginia tax commissioner by July 1, 2024, specifying the total amount of subtraction to be claimed. Accordingly, FirstEnergy recorded a state deferred tax asset of approximately $9 million in the first quarter of 2023, which was fully reserved. In conjunction with the assessment of regulated business operations discussed above, FirstEnergy removed the $9 million reserve and reduced the state deferred tax asset to approximately $4 million, and recorded a corresponding $4 million regulatory liability associated with the amount expected to be refunded to customers in future rates. The following table provides the composite of income taxes on income from continuing operations for the years ended 2023, 2022 and 2021: INCOME TAXES ON INCOME FROM CONTINUING OPERATIONS For the Years Ended December 31, 2023 2022 2021 (In millions) Currently payable - Federal (1) $ 14 $ — $ 2 State 1 11 21 15 11 23 Deferred, net - Federal (2) 279 946 174 State (24) 47 127 255 993 301 Investment tax credit amortization (3) (4) (4) Total income taxes on income from continuing operations $ 267 $ 1,000 $ 320 (1) Excludes $2 million of federal tax benefit associated with discontinued operations for the year ended December 31, 2021. (2) Excludes $21 million of federal tax expense and $46 million of federal tax benefits associated with discontinued operations for the years ended December 31, 2023 and 2021, respectively. FirstEnergy tax rates are affected by permanent items, such as AFUDC equity and other flow-through items, as well as discrete items that may occur in any given period but are not consistent from period to period. The following table provides a reconciliation of federal income tax expense at the federal statutory rate to the total income taxes on income from continuing operations for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, 2023 2022 2021 (In millions) Income from continuing operations, before income taxes $ 1,464 $ 1,439 $ 1,559 Federal income tax expense at the 21% statutory rate $ 307 $ 302 $ 327 Increases (reductions) in taxes resulting from- State and municipal income taxes, net of federal tax benefit 80 56 122 AFUDC equity and other flow-through (30) (26) (29) Amortization of investment tax credits (3) (4) (4) Deferred gain on 19.9% FET minority interest sale 58 752 — Federal tax credits claimed (3) (3) (34) Nondeductible DPA monetary penalty — — 52 Excess deferred tax amortization due to the Tax Act (46) (51) (54) Uncertain tax positions 41 2 (82) Valuation allowances (146) (47) 17 Other, net 9 19 5 Total income taxes on income from continuing operations $ 267 $ 1,000 $ 320 Effective income tax rate (continuing operations) 18.2 % 69.5 % 20.5 % Accumulated deferred income taxes as of December 31, 2023 and 2022, are as follows: As of December 31, 2023 2022 (In millions) Property basis differences $ 5,787 $ 5,528 Pension and OPEB (331) (496) Regulatory asset/liability 647 432 Deferred compensation (153) (149) Deferred gain on 19.9% FET minority interest sale 810 752 Loss carryforwards and tax credits (2,192) (2,073) Valuation reserve 226 440 Other (264) (232) Net accumulated deferred income tax liability $ 4,530 $ 4,202 FirstEnergy has recorded as deferred income tax assets the effect of federal NOLs and tax credits that will more likely than not be realized through future operations and through the reversal of existing temporary differences. As of December 31, 2023, FirstEnergy's loss carryforwards primarily consisted of $8.1 billion ($1.7 billion, net of tax) of federal NOL carryforwards, $5.9 billion ($1.2 billion, net of tax) of which have no expiration and the remainder that will begin to expire in 2031. As discussed above, FirstEnergy expects to utilize the majority of its federal NOL carryforwards by the end of 2024. However, due to certain limitations on utilization enacted in the Tax Act, a portion of the NOL will carry into 2025 and possibly beyond. In addition, FirstEnergy's tax credit carryforwards primarily consisted of AMT credits of $57 million, which have no expiration, and federal general business tax credits of $12 million that begin to expire in 2039. The table below summarizes pre-tax NOL carryforwards and their respective anticipated expirations for state and local income tax purposes of approximately $13.5 billion ($436 million, net of tax) for FirstEnergy, of which approximately $6.1 billion ($233 million, net of tax) is expected to be utilized based on current estimates and assumptions. The ultimate utilization of these NOLs may be impacted by statutory limitations on the use of NOLs imposed by state and local tax jurisdictions, changes in statutory tax rates, and changes in business which, among other things, impact both future profitability and the manner in which future taxable income is apportioned to various state and local tax jurisdictions. Expiration Period State Local (In millions) 2024-2028 $ 2,403 $ 5,269 2029-2033 1,415 — 2034-2038 1,079 — 2039-2043 823 — Indefinite 2,469 — $ 8,189 $ 5,269 The following table summarizes the changes in valuation allowances on federal, state, and local deferred tax assets related to business interest expense carryforwards and employee compensation deduction limitations under section 162(m), in addition to state and local NOLs discussed above for the years ended December 31, 2023, 2022 and 2021: (In millions) 2023 2022 2021 Beginning of year balance $ 440 $ 484 $ 496 Charged to income (214) (44) (12) Charged to other accounts — — — Write-offs — — — End of year balance $ 226 $ 440 $ 484 FirstEnergy accounts for uncertainty in income taxes recognized in its financial statements. A recognition threshold and measurement attribute are utilized for financial statement recognition and measurement of tax positions taken or expected to be taken on the tax return. If ultimately recognized in future years, all of the unrecognized income tax benefits would impact the effective tax rate. The following table summarizes the changes (gross) in uncertain tax positions for the years ended December 31, 2023, 2022 and 2021: (In millions) Balance, January 1, 2021 $ 139 Current year increases 15 Prior year decreases (8) Effectively settled with taxing authorities (97) Decrease for lapse in statute (2) Balance, December 31, 2021 $ 47 Prior year increases 2 Decrease for lapse in statute (7) Balance, December 31, 2022 $ 42 Prior years increases 88 Effectively settled with taxing authorities (24) Decrease for lapse in statute (1) Balance, December 31, 2023 $ 105 As of December 31, 2023, none of the unrecognized tax benefits are expected to be resolved during 2024 as a result of settlements with taxing authorities or the statute of limitations expiring. FirstEnergy recognizes interest expense or income and penalties related to uncertain tax positions in income taxes by applying the applicable statutory interest rate to the difference between the tax position recognized and the amount previously taken, or expected to be taken, on the tax return. FirstEnergy includes interest expense or income and penalties in the provision for income taxes. Due to uncertain tax positions that were effectively settled with tax authorities during 2023, approximately $9 million in net interest was reversed. There was no material interest expense or income, or penalties, related to uncertain tax positions in 2022 and 2021. General Taxes General tax expense for the years ended December 31, 2023, 2022 and 2021, recognized in continuing operations is summarized as follows: For the Years Ended December 31, 2023 2022 2021 (In millions) kWh excise $ 185 $ 191 $ 189 State gross receipts 235 219 190 Real and personal property 615 596 571 Social security and unemployment 113 105 103 Other 16 18 20 Total general taxes $ 1,164 $ 1,129 $ 1,073 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES FirstEnergy primarily leases vehicles as well as building space, office equipment, and other property and equipment under cancellable and non-cancelable leases. FirstEnergy does not have any material leases in which it is the lessor. FirstEnergy accounts for leases under, "Leases (Topic 842)". Leases with an initial term of 12 months or less are recognized as lease expense on a straight-line basis over the lease term and not recorded on the balance sheet. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 40 years, and certain leases include options to terminate. In December 2023, FirstEnergy purchased the General Office building in Akron, Ohio with the intention to sell in the future. It is currently expected that the exit of the General Office and sale will occur in 2025. The exercise of lease renewal options is at FirstEnergy’s sole discretion. Renewal options are included within the lease liability if they are reasonably certain based on various factors relative to the contract. Certain leases also include options to purchase the leased property. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. FirstEnergy’s lease agreements do not contain any material restrictive covenants. FirstEnergy has elected a policy to not separate lease components from non-lease components for all asset classes. For vehicles leased under certain master lease agreements, the lessor is guaranteed a residual value up to a stated percentage of the equipment cost at the end of the lease term. If the actual fair value of the leased equipment is below the guaranteed residual value at the end of the lease term, FirstEnergy is committed to pay the difference in the actual fair value and the residual value guarantee. FirstEnergy does not believe it is probable that it will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly. Finance leases for assets used in regulated operations are recognized in FirstEnergy’s Consolidated Statements of Income such that amortization of the right-of-use asset and interest on lease liabilities equals the expense recorded for ratemaking purposes. Finance leases for regulated and non-regulated operations are accounted for as if the assets were owned and financed, with associated expense recognized in Interest expense and Provision for depreciation on FirstEnergy’s Consolidated Statements of Income, while all operating lease expenses are recognized in Other operating expense. The components of lease expense were as follows: For the Year Ended December 31, 2023 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 60 $ 5 $ 14 $ 79 Finance lease costs: Amortization of right-of-use assets 4 2 2 8 Interest on lease liabilities — 5 — 5 Total finance lease cost 4 7 2 13 Total lease cost $ 64 $ 12 $ 16 $ 92 (1) Includes $27 million of short-term lease costs. For the Year Ended December 31, 2022 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 50 $ 8 $ 15 $ 73 Finance lease costs: Amortization of right-of-use assets 10 1 2 13 Interest on lease liabilities — 3 — 3 Total finance lease cost 10 4 2 16 Total lease cost $ 60 $ 12 $ 17 $ 89 (1) Includes $19 million of short-term lease costs. For the Year Ended December 31, 2021 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 44 $ 9 $ 18 $ 71 Finance lease costs: Amortization of right-of-use assets 12 1 1 14 Interest on lease liabilities 1 3 — 4 Total finance lease cost 13 4 1 18 Total lease cost $ 57 $ 13 $ 19 $ 89 (1) Includes $21 million of short-term lease costs. Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, (In millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 54 $ 56 $ 64 Operating cash flows from finance leases 3 3 4 Finance cash flows from finance leases 8 12 13 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 13 $ 26 $ 60 Finance leases — — 5 Lease terms and discount rates were as follows: As of December 31, 2023 2022 2021 Weighted-average remaining lease terms (years) Operating leases 5.93 7.30 7.97 Finance leases 12.26 11.33 8.12 Weighted-average discount rate (1) Operating leases 4.51 % 4.22 % 4.16 % Finance leases 14.73 % 14.77 % 12.22 % (1) When an implicit rate is not readily determinable, an incremental borrowing rate is utilized, determining the present value of lease payments. The rate is determined based on expected term and information available at the commencement date. Supplemental balance sheet information related to leases was as follows: As of December 31, (In millions) Financial Statement Line Item 2023 2022 Assets Operating lease (1) Deferred charges and other assets $ 205 $ 262 Finance lease (2) Property, plant and equipment 35 45 Total leased assets $ 240 $ 307 Liabilities Current: Operating Other current liabilities $ 47 $ 48 Finance Currently payable long-term debt 3 6 Noncurrent: Operating Other noncurrent liabilities 179 247 Finance Long-term debt and other long-term obligations 11 17 Total leased liabilities $ 240 $ 318 (1) Operating lease assets are recorded net of accumulated amortization of $139 million and $114 million as of December 31, 2023 and 2022, respectively. (2) Finance lease assets are recorded net of accumulated amortization of $33 million and $60 million as of December 31, 2023 and 2022, respectively. Maturities of lease liabilities as of December 31, 2023, were as follows: (In millions) Operating Leases Finance Leases Total 2024 $ 54 $ 4 $ 58 2025 47 4 51 2026 43 4 47 2027 37 3 40 2028 33 4 37 Thereafter 47 — 47 Total lease payments (1) 261 19 280 Less imputed interest 35 5 40 Total net present value $ 226 $ 14 $ 240 (1) Operating lease payments for certain leases are offset by sublease receipts of $8 million over 9 years. |
LEASES | LEASES FirstEnergy primarily leases vehicles as well as building space, office equipment, and other property and equipment under cancellable and non-cancelable leases. FirstEnergy does not have any material leases in which it is the lessor. FirstEnergy accounts for leases under, "Leases (Topic 842)". Leases with an initial term of 12 months or less are recognized as lease expense on a straight-line basis over the lease term and not recorded on the balance sheet. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 40 years, and certain leases include options to terminate. In December 2023, FirstEnergy purchased the General Office building in Akron, Ohio with the intention to sell in the future. It is currently expected that the exit of the General Office and sale will occur in 2025. The exercise of lease renewal options is at FirstEnergy’s sole discretion. Renewal options are included within the lease liability if they are reasonably certain based on various factors relative to the contract. Certain leases also include options to purchase the leased property. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. FirstEnergy’s lease agreements do not contain any material restrictive covenants. FirstEnergy has elected a policy to not separate lease components from non-lease components for all asset classes. For vehicles leased under certain master lease agreements, the lessor is guaranteed a residual value up to a stated percentage of the equipment cost at the end of the lease term. If the actual fair value of the leased equipment is below the guaranteed residual value at the end of the lease term, FirstEnergy is committed to pay the difference in the actual fair value and the residual value guarantee. FirstEnergy does not believe it is probable that it will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly. Finance leases for assets used in regulated operations are recognized in FirstEnergy’s Consolidated Statements of Income such that amortization of the right-of-use asset and interest on lease liabilities equals the expense recorded for ratemaking purposes. Finance leases for regulated and non-regulated operations are accounted for as if the assets were owned and financed, with associated expense recognized in Interest expense and Provision for depreciation on FirstEnergy’s Consolidated Statements of Income, while all operating lease expenses are recognized in Other operating expense. The components of lease expense were as follows: For the Year Ended December 31, 2023 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 60 $ 5 $ 14 $ 79 Finance lease costs: Amortization of right-of-use assets 4 2 2 8 Interest on lease liabilities — 5 — 5 Total finance lease cost 4 7 2 13 Total lease cost $ 64 $ 12 $ 16 $ 92 (1) Includes $27 million of short-term lease costs. For the Year Ended December 31, 2022 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 50 $ 8 $ 15 $ 73 Finance lease costs: Amortization of right-of-use assets 10 1 2 13 Interest on lease liabilities — 3 — 3 Total finance lease cost 10 4 2 16 Total lease cost $ 60 $ 12 $ 17 $ 89 (1) Includes $19 million of short-term lease costs. For the Year Ended December 31, 2021 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 44 $ 9 $ 18 $ 71 Finance lease costs: Amortization of right-of-use assets 12 1 1 14 Interest on lease liabilities 1 3 — 4 Total finance lease cost 13 4 1 18 Total lease cost $ 57 $ 13 $ 19 $ 89 (1) Includes $21 million of short-term lease costs. Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, (In millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 54 $ 56 $ 64 Operating cash flows from finance leases 3 3 4 Finance cash flows from finance leases 8 12 13 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 13 $ 26 $ 60 Finance leases — — 5 Lease terms and discount rates were as follows: As of December 31, 2023 2022 2021 Weighted-average remaining lease terms (years) Operating leases 5.93 7.30 7.97 Finance leases 12.26 11.33 8.12 Weighted-average discount rate (1) Operating leases 4.51 % 4.22 % 4.16 % Finance leases 14.73 % 14.77 % 12.22 % (1) When an implicit rate is not readily determinable, an incremental borrowing rate is utilized, determining the present value of lease payments. The rate is determined based on expected term and information available at the commencement date. Supplemental balance sheet information related to leases was as follows: As of December 31, (In millions) Financial Statement Line Item 2023 2022 Assets Operating lease (1) Deferred charges and other assets $ 205 $ 262 Finance lease (2) Property, plant and equipment 35 45 Total leased assets $ 240 $ 307 Liabilities Current: Operating Other current liabilities $ 47 $ 48 Finance Currently payable long-term debt 3 6 Noncurrent: Operating Other noncurrent liabilities 179 247 Finance Long-term debt and other long-term obligations 11 17 Total leased liabilities $ 240 $ 318 (1) Operating lease assets are recorded net of accumulated amortization of $139 million and $114 million as of December 31, 2023 and 2022, respectively. (2) Finance lease assets are recorded net of accumulated amortization of $33 million and $60 million as of December 31, 2023 and 2022, respectively. Maturities of lease liabilities as of December 31, 2023, were as follows: (In millions) Operating Leases Finance Leases Total 2024 $ 54 $ 4 $ 58 2025 47 4 51 2026 43 4 47 2027 37 3 40 2028 33 4 37 Thereafter 47 — 47 Total lease payments (1) 261 19 280 Less imputed interest 35 5 40 Total net present value $ 226 $ 14 $ 240 (1) Operating lease payments for certain leases are offset by sublease receipts of $8 million over 9 years. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES FirstEnergy performs qualitative analyses based on control and economics to determine whether a variable interest classifies FirstEnergy as the primary beneficiary (a controlling financial interest) of a VIE. An enterprise has a controlling financial interest if it has both power and economic control, such that an entity has: (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. FirstEnergy consolidates a VIE when it is determined that it is the primary beneficiary. In order to evaluate contracts for consolidation treatment and entities for which FirstEnergy has an interest, FirstEnergy aggregates variable interests into categories based on similar risk characteristics and significance. Consolidated VIEs Total assets on the FirstEnergy consolidated balance sheets include approximately $11,024 million and $10,104 million of consolidated VIE assets, as of December 31, 2023 and 2022, respectively, that can only be used to settle the liabilities of the applicable VIE. Total liabilities include approximately $7,835 million and $7,573 million as of December 31, 2023 and 2022, respectively, of consolidated VIE liabilities for which the VIE's creditors do not have recourse to FirstEnergy. VIEs in which FirstEnergy is the primary beneficiary consist of the following (included in FirstEnergy’s consolidated financial statements): Securitization Companies • Ohio Securitization Companies - In June 2013, the SPEs formed by the Ohio Companies issued approximately $445 million of pass-through trust certificates supported by phase-in recovery bonds to securitize the recovery of certain all-electric customer heating discounts, fuel and purchased power regulatory assets. The phase-in recovery bonds are payable only from, and secured by, phase in recovery property owned by the SPEs. The bondholder has no recourse to the general credit of FirstEnergy or any of the Ohio Companies. Each of the Ohio Companies, as servicer of its respective SPE, manages and administers the phase in recovery property including the billing, collection and remittance of usage-based charges payable by retail electric customers. The SPEs are considered VIEs and each one is consolidated into its applicable utility. As of December 31, 2023 and 2022, $191 million and $206 million of the phase-in recovery bonds were outstanding, respectively. • MP and PE Environmental Funding Companies - The consolidated financial statements of FirstEnergy include environmental control bonds issued by two bankruptcy remote, special purpose limited liability companies that are indirect subsidiaries of MP and PE. Proceeds from the bonds were used to construct environmental control facilities. Principal and interest owed on the environmental control bonds is secured by, and payable solely from, the proceeds of the environmental control charges. Creditors of FirstEnergy, other than the limited liability company SPEs, have no recourse to any assets or revenues of the special purpose limited liability companies. As of December 31, 2023 and 2022, $218 million and $247 million of environmental control bonds were outstanding, respectively. Restricted cash included on the FE Consolidated Balance Sheets of $40 million and $41 million as of December 31, 2023 and 2022 respectively, relates to cash collected from MP, PE and the Ohio Companies' customers that is specifically used to service debt of their respective funding companies. FET FET is a holding company that owns equity interests in ATSI, MAIT, TrAIL and PATH. As of December 31, 2023, FE has ownership in FET of 80.1% with Brookfield having 19.9%. As further discussed above, on February 2, 2023, FE entered into an agreement with Brookfield to sell an incremental 30% equity interest in FET, which will bring FE’s equity ownership in FET to 50.1% and Brookfield to 49.9%. The FET Minority Equity Interest Sale is expected to close by the end of first quarter of 2024. FirstEnergy has concluded that FET is a VIE and that FE is the primarily beneficiary because FE has exposure to the economics of FET and the power to direct significant activities of FET through the FESC services agreement, which represents a separate variable interest. Although Brookfield will be granted incremental consent rights upon closing of the incremental 30% sale, Brookfield will not have unilateral control over any activities that most significantly impact FET’s economic performance. However, FE will continue to retain power over the activities that most significantly impact FET’s economic performance through its incremental decision making rights under the existing FESC services agreement, through which executive management and workforce services are provided to FET. As a result, FE is the primary beneficiary of FET and FET will continue to be consolidated in FirstEnergy’s financial statements. The following shows the carrying amounts and classification of the FET assets and liabilities included in the consolidated financial statements as of December 31, 2023 and 2022. Amounts exclude intercompany balances which were eliminated in consolidation. The assets of FET can only be used to settle its obligations, and creditors of FET do not have recourse to the general credit of FirstEnergy. Assets December 31, December 31, Cash and cash equivalents $ 76 $ 77 Receivables 88 79 Materials and supplies, at average cost 1 1 Prepaid taxes and other 23 23 Total current assets 188 180 Property, plant and equipment, net 10,227 9,365 Goodwill 224 224 Investments 19 20 Regulatory assets 16 1 Other 310 273 Total noncurrent assets 10,796 9,883 TOTAL ASSETS $ 10,984 $ 10,063 Liabilities December 31, December 31, Accounts payable 2 — Accrued interest 63 58 Accrued taxes 262 278 Other 14 7 Total current liabilities 341 343 Long-term debt and other long-term obligations 5,275 4,949 Accumulated deferred income taxes 1,218 1,129 Regulatory liabilities 307 443 Other 285 256 Total noncurrent liabilities 7,085 6,777 TOTAL LIABILITIES $ 7,426 $ 7,120 Unconsolidated VIEs FirstEnergy is not the primary beneficiary of its equity method investments in Global Holding and PATH WV, as further discussed above, or its PPAs. FirstEnergy evaluated its PPAs and determined that certain NUG entities at its Regulated Distribution segment may be VIEs to the extent that they own a plant that sells substantially all of its output to the applicable utilities and the contract price for power is correlated with the plant’s variable costs of production. As of December 31, 2023, FirstEnergy maintains four long-term PPAs with NUG entities that were entered into pursuant to the Public Utility Regulatory Policies Act of 1978. FirstEnergy was not involved in the creation of, and has no equity or debt invested in, any of these entities. FirstEnergy has determined that, it does not have a variable interest, or the entities do not meet the criteria to be considered a VIE. During 2023, FirstEnergy terminated the PPA with the NUG entity in which it had previously applied the scope exception that exempts enterprises unable to obtain the necessary information to evaluate entities. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS RECURRING FAIR VALUE MEASUREMENTS Authoritative accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. The three levels of the fair value hierarchy and a description of the valuation techniques are as follows: Level 1 - Quoted prices for identical instruments in active market Level 2 - Quoted prices for similar instruments in active market - Quoted prices for identical or similar instruments in markets that are not active - Model-derived valuations for which all significant inputs are observable market data Models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Level 3 - Valuation inputs are unobservable and significant to the fair value measurement FirstEnergy produces a long-term power and capacity price forecast annually with periodic updates as market conditions change. When underlying prices are not observable, prices from the long-term price forecast are used to measure fair value. FTRs are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly day-ahead congestion price differences across transmission paths. FTRs are acquired by FirstEnergy in the annual, monthly and long-term PJM auctions and are initially recorded using the auction clearing price less cost. After initial recognition, FTRs' carrying values are periodically adjusted to fair value using a mark-to-model methodology, which approximates market. The primary inputs into the model, which are generally less observable than objective sources, are the most recent PJM auction clearing prices and the FTRs' remaining hours. The model calculates the fair value by multiplying the most recent auction clearing price by the remaining FTR hours less the prorated FTR cost. Significant increases or decreases in inputs in isolation may have resulted in a higher or lower fair value measurement. FirstEnergy primarily applies the market approach for recurring fair value measurements using the best information available. Accordingly, FirstEnergy maximizes the use of observable inputs and minimizes the use of unobservable inputs. There were no changes in valuation methodologies used as of December 31, 2023, from those used as of December 31, 2022. The determination of the fair value measures takes into consideration various factors, including but not limited to, nonperformance risk, counterparty credit risk and the impact of credit enhancements (such as cash deposits, LOCs and priority interests). The impact of these forms of risk was not significant to the fair value measurements. For investments reported at NAV where there is no readily determinable fair value, a practical expedient is available that allows the NAV to approximate fair value. Investments that use NAV as a practical expedient are excluded from the requirement to be categorized within the fair value hierarchy tables. Instead, these investments are reported outside of the fair value hierarchy tables to assist in the reconciliation of investment balances reported in the tables to the balance sheet. FirstEnergy has elected the NAV practical expedient for investments in private equity funds, insurance-linked securities, hedge funds (absolute return) and real estate funds held within the pension plan. See Note 5, "Pension And Other Postemployment Benefits" for the pension financial assets accounted for at fair value by level within the fair value hierarchy. The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (In millions) Derivative assets FTRs (1) $ — $ — $ 4 $ 4 $ — $ — $ 11 $ 11 Equity securities 2 — — 2 2 — — 2 U.S. state debt securities — 275 — 275 — 266 — 266 Cash, cash equivalents and restricted cash (2) 179 — — 179 206 — — 206 Other (3) — 40 — 40 — 40 — 40 Total assets $ 181 $ 315 $ 4 $ 500 $ 208 $ 306 $ 11 $ 525 Liabilities Derivative liabilities FTRs (1) $ — $ — $ (1) $ (1) $ — $ — $ (2) $ (2) Total liabilities $ — $ — $ (1) $ (1) $ — $ — $ (2) $ (2) Net assets (liabilities) $ 181 $ 315 $ 3 $ 499 $ 208 $ 306 $ 9 $ 523 (1) Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings. (2) Restricted cash of $42 million and $46 million as of December 31, 2023 and 2022, respectively, primarily relates to cash collected from MP, PE and the Ohio Companies' customers that is specifically used to service debt of their respective funding companies. See Note 11, Capitalization for additional information. (3) Primarily consists of short-term investments. INVESTMENTS All temporary cash investments purchased with an initial maturity of three months or less are reported as cash equivalents on the Consolidated Balance Sheets at cost, which approximates their fair market value. Investments other than cash and cash equivalents include AFS debt securities and other investments. FirstEnergy has no debt securities held for trading purposes. Generally, unrealized gains and losses on equity securities are recognized in income whereas unrealized gains and losses on AFS debt securities are recognized in AOCI. However, the JCP&L spent nuclear fuel disposal trusts are subject to regulatory accounting with all gains and losses on equity and AFS debt securities offset against regulatory assets. Spent Nuclear Fuel Disposal Trusts JCP&L holds debt securities within the spent nuclear fuel disposal trust, which are classified as AFS securities, recognized at fair market value. The trust is intended for funding spent nuclear fuel disposal fees to the United States Department of Energy associated with the previously owned Oyster Creek and Three Mile Island Unit 1 nuclear power plants. The following table summarizes the amortized cost basis, unrealized gains, unrealized losses and fair values of investments held in nuclear fuel disposal trusts as of December 31, 2023 and 2022: December 31, 2023 (1) December 31, 2022 (2) Cost Basis Unrealized Gains Unrealized Losses Fair Value Cost Basis Unrealized Gains Unrealized Losses Fair Value (In millions) Debt securities $ 301 $ 1 $ (27) $ 275 $ 294 $ — $ (28) $ 266 (1) Excludes short-term cash investments of $6 million. (2) Excludes short-term cash investments of $5 million. Proceeds from the sale of investments in AFS debt securities, realized gains and losses on those sales and interest and dividend income for the years ended December 31, 2023, 2022 and 2021, were as follows: For the Years Ended December 31, 2023 2022 2021 (In millions) Sale Proceeds $ 38 $ 48 $ 48 Realized Gains — 8 — Realized Losses (3) (13) (3) Interest and Dividend Income 12 11 11 Other Investments Other investments include employee benefit trusts, which are primarily invested in corporate-owned life insurance policies and equity method investments. Earnings and losses associated with corporate-owned life insurance policies and equity method investments are reflected in the “Miscellaneous Income, net” line of FirstEnergy’s Consolidated Statements of Income. Other investments were $382 million and $351 million as of December 31, 2023 and 2022, respectively, and are excluded from the amounts reported above. See Note 1, "Organization and Basis of Presentation," for additional information on FirstEnergy's equity method investments. For the years ended December 31, 2023, 2022 and 2021, pre-tax income (expense) related to corporate-owned life insurance policies were $18 million, $(20) million and $13 million, respectively. Corporate-owned life insurance policies are valued using the cash surrender value and any changes in value during the period are recognized as income or expense. LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS All borrowings with initial maturities of less than one year are defined as short-term financial instruments under GAAP and are reported as Short-term borrowings on the Consolidated Balance Sheets at cost. Since these borrowings are short-term in nature, FirstEnergy believes that their costs approximate their fair market value. The following table provides the approximate fair value and related carrying amounts of long-term debt, which excludes finance lease obligations and net unamortized debt issuance costs, unamortized fair value adjustments, premiums and discounts as of December 31, 2023 and 2022: As of December 31, 2023 2022 (In millions) Carrying Value $ 24,254 $ 21,641 Fair Value 23,003 19,784 The fair values of long-term debt and other long-term obligations reflect the present value of the cash outflows relating to those securities based on the current call price, the yield to maturity or the yield to call, as deemed appropriate at the end of each respective period. The yields assumed were based on securities with similar characteristics offered by corporations with credit ratings similar to those of FirstEnergy. FirstEnergy classified short-term borrowings, long-term debt and other long-term obligations as Level 2 in the fair value hierarchy as of December 31, 2023 and 2022. See Note 11, "Capitalization," for further information on long-term debt issued and redeemed during the twelve months ended December 31, 2023. |
CAPITALIZATION
CAPITALIZATION | 12 Months Ended |
Dec. 31, 2023 | |
Capitalization, Long-Term Debt and Equity [Abstract] | |
CAPITALIZATION | CAPITALIZATION COMMON STOCK Retained Earnings and Dividends As of December 31, 2023, FirstEnergy had an accumulated deficit of $97 million. Dividends declared in 2023 totaled $1.60 per share and dividends declared in 2022 totaled $1.56 per share. Dividends of $0.39 per share were declared in the first, second, third and fourth quarters in 2022 and the first and second quarters in 2023. In September 2023, the FE Board declared a $0.02 per share increase to the quarterly common dividend payable December 1, 2023, to $0.41 per share, which represents a 5% increase compared to the quarterly payments of $0.39 per share paid by FE since March 2020. The dividend declared in the fourth quarter of 2023, payable on March 1, 2024, was also $0.41 per share. The amount and timing of all dividend declarations are subject to the discretion of the FE Board and its consideration of business conditions, results of operations, financial condition, risks and uncertainties of the government investigations, and other factors. When FE makes distributions to shareholders, it is required to subsequently determine and report the tax characterization of those distributions for purposes of shareholders’ income taxes. Whether a distribution is characterized as a dividend or a return of capital (and possible capital gain) depends upon an internal tax calculation to determine earnings and profits for income tax purposes. Earnings and profits should not be confused with earnings or net income under GAAP. Further, after FE reports the expected tax characterization of distributions it has paid, the actual characterization could vary from its expectation with the result that holders of FE's common stock could incur different income tax liabilities than expected. In general, distributions are characterized as dividends to the extent the amount of such distributions do not exceed FE's calculation of current or accumulated earnings and profits. Distributions in excess of current and accumulated earnings and profits may be treated as a non-taxable return of capital. Generally, a non-taxable return of capital will reduce an investor’s basis in FirstEnergy's stock for federal tax purposes, which will impact the calculation of gain or loss when the stock is sold. Provided the FET Minority Equity Interest Sale closes as anticipated, FE expects to realize an over $7 billion tax gain in 2024. This tax gain is estimated to create sufficient earnings and profits to cause distributions made during 2024 to be characterized as ordinary dividends for federal income tax purposes. Upon such characterization, shareholders are urged to consult their own tax advisors regarding the income tax treatment of FE's distributions to them. In addition to paying dividends from retained earnings, the Ohio Companies and JCP&L have authorization from FERC to pay cash dividends to FE from paid-in capital accounts, as long as their FERC-defined equity-to-total-capitalization ratio remains above 35%. In addition, AGC has authorization from FERC to pay cash dividends to its parent, MP, from paid-in capital accounts, as long as its FERC-defined equity-to-total-capitalization ratio remains above 45%. The articles of incorporation, indentures, regulatory limitations, FET P&SA I and FET P&SA II, and various other agreements, including those relating to the long-term debt of certain FirstEnergy subsidiaries contain provisions that could further restrict the payment of dividends on their common stock. None of these provisions materially restricted FirstEnergy subsidiaries’ abilities to pay cash dividends to FE as of December 31, 2023. Common Stock Issuance FE issued approximately 2 million shares of common stock in 2023, 2 million shares of common stock in 2022 and 1 million shares of common stock in 2021 to registered shareholders and its directors and the employees of its subsidiaries under its Stock Investment Plan and certain share-based benefit plans. On November 6, 2021, FE entered into a Common Stock Purchase Agreement with BIP Securities II-B L.P., an affiliate of Blackstone Infrastructure Partners L.P., for the private placement of 25,588,535 shares of FE common stock, par value $0.10 per share, at a price of $39.08 per share, representing an investment of $1.0 billion. The transaction settled on December 13, 2021. Issuance costs associated with the transaction were approximately $26 million as of December 31, 2021. PREFERRED AND PREFERENCE STOCK FirstEnergy and the Utilities were authorized to issue preferred stock and preference stock as of December 31, 2023, as follows: Preferred Stock Preference Stock Shares Authorized Par Value Shares Authorized Par Value FE 5,000,000 $ 100 OE 6,000,000 $ 100 8,000,000 no par OE 8,000,000 $ 25 Penn (1) 1,200,000 $ 100 CEI 4,000,000 no par 3,000,000 no par TE 3,000,000 $ 100 5,000,000 $ 25 TE 12,000,000 $ 25 JCP&L 15,600,000 no par ME (1) 10,000,000 no par PN (1) 11,435,000 no par MP 940,000 $ 100 PE 10,000,000 $ 0.01 WP (1) 32,000,000 no par (1) On January 1, 2024, FirstEnergy consolidated the Pennsylvania Companies into FE PA, making it a new, single operating entity. FE PA has not been authorized to issue preferred stock or preference stock. As of December 31, 2023 and 2022, there were no preferred stock or preference stock outstanding. LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS The following tables present outstanding long-term debt and finance lease obligations for FirstEnergy as of December 31, 2023 and 2022: As of December 31, 2023 As of December 31, Maturity Date Interest Rate 2023 2022 (In millions) FMBs and secured notes - fixed rate 2024-2059 2.650% - 8.250% $ 5,709 $ 5,153 Unsecured notes - fixed rate 2024-2050 1.600% - 7.375% 18,545 16,488 Finance lease obligations 14 23 Unamortized debt discounts (9) (5) Unamortized debt issuance costs (127) (110) Unamortized fair value adjustments 3 5 Currently payable long-term debt (1,250) (351) Total long-term debt and other long-term obligations $ 22,885 $ 21,203 See Note 8, "Leases," for additional information related to finance leases. FirstEnergy had the following redemptions and issuances during the twelve months ended December 31, 2023: Company Type Redemption/Issuance Date Interest Rate Maturity Amount Description Redemptions (1) ME Unsecured Notes March, 2023 3.50% 2023 $300 ME redeemed unsecured notes that became due. FE Unsecured Notes May, 2023 7.38% 2031 $194 FE repurchased approximately $194 million of the principal amount of its 2031 Notes through the open market for $228 million including a premium of approximately $34 million ($27 million after-tax). In addition, FE recognized approximately $2 million ($1 million after-tax) of deferred cash flow hedge losses associated with the FE debt redemptions. Issuances WP FMBs January, 2023 5.29% 2033 $50 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. MAIT Unsecured Notes February, 2023 5.39% 2033 $175 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. ME Unsecured Notes March, 2023 5.20% 2028 $425 Proceeds were used to repay short-term borrowings, including borrowings incurred to repay, at maturity, the $300 million aggregate principal amount of ME's 3.50% unsecured notes due March 15, 2023, to finance capital expenditures and for other general corporate purposes. PN Unsecured Notes March, 2023 5.15% 2026 $300 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. ATSI Unsecured Notes May, 2023 5.13% 2033 $150 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. FE Unsecured Convertible Notes May, 2023 4.00% 2026 $1,500 Proceeds were used to repay short-term borrowings, to repurchase a portion of its 2031 Notes, to fund the qualified pension plan and for other general corporate purposes. PE FMBs September, 2023 5.64% 2028 $100 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. PE FMBs September, 2023 5.73% 2030 $50 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. MP FMBs September, 2023 5.85% 2034 $400 Proceeds are to be used for repaying short-term and long-term debt, including MP’s $400 million 4.10% FMBs due April 15, 2024, to finance capital expenditures and for other general corporate purposes. (1) Excludes principal payments on securitized bonds. Convertible Notes As discussed above, on May 4, 2023, FE issued $1.5 billion aggregate principal amount of 2026 Convertible Notes, with a fixed interest rate of 4.00% per year, payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2023. The 2026 Convertible Notes are unsecured and unsubordinated obligations of FE, and will mature on May 1, 2026, unless required to be converted or repurchased in accordance with their terms. However, FE may not elect to redeem the 2026 Convertible Notes prior to the maturity date. The 2026 Convertible Notes are included within “Long-term debt and other long-term obligations” on the FirstEnergy Consolidated Balance Sheets. Proceeds from the issuance were approximately $1.48 billion, net of issuance costs. Prior to the close of business on the business day immediately preceding February 1, 2026, the 2026 Convertible Notes will be convertible at the option of the holders only under the following conditions: • During any calendar quarter, if the last reported sale price of FE’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • During the five consecutive business day period immediately after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of the 2026 Convertible Notes for each trading day of such 10 trading day period was less than 98% of the product of the last reported sale price of FE’s common stock and the conversion rate on each such trading day; or • Upon the occurrence of certain corporate events specified in the indenture governing the 2026 Convertible Notes. On and after February 1, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2026 Convertible Notes may convert all or any portion of their 2026 Convertible Notes at their option at any time at the conversion rate then in effect, irrespective of these conditions. FE will settle conversions of the 2026 Convertible Notes, if any, by paying cash up to the aggregate principal amount of the 2026 Convertible Notes being converted and by paying cash or delivering shares of FE’s common stock (or a combination of each), at its election, of its conversion obligation in excess of the aggregate principal amount of the 2026 Convertible Notes being converted. The conversion rate for the 2026 Convertible Notes will initially be 21.3620 shares of FE’s common stock per $1,000 principal amount of the 2026 Convertible Notes (equivalent to an initial conversion price of approximately $46.81 per share of FE’s common stock). The initial conversion price of the 2026 Convertible Notes represents a premium of approximately 20% over the last reported sale price of FE’s common stock on the New York Stock Exchange on May 1, 2023. The conversion rate and the corresponding conversion price will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. FE may not elect to redeem the 2026 Convertible Notes prior to the maturity date. If FE undergoes a fundamental change (as defined in the relevant indenture), subject to certain conditions, holders of the 2026 Convertible Notes may require FE to repurchase for cash all or any portion of their 2026 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2026 Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date (as defined in the relevant indenture). In addition, if certain fundamental changes occur, FE may be required, in certain circumstances, to increase the conversion rate for any 2026 Convertible Notes converted in connection with such fundamental changes by a specified number of shares of its common stock. The following table presents scheduled debt repayments or debt that has been noticed for redemption for outstanding long-term debt, excluding finance leases, fair value purchase accounting adjustments and unamortized debt discounts and premiums, for the next five years as of December 31, 2023. (In millions) 2024 2025 2026 2027 2028 Scheduled debt repayments $1,246 $2,023 $2,876 $2,003 $2,453 Securitized Bonds Environmental Control Bonds The consolidated financial statements of FirstEnergy include environmental control bonds issued by two bankruptcy remote, special purpose limited liability companies that are indirect subsidiaries of MP and PE. Proceeds from the bonds were used to construct environmental control facilities. Principal and interest owed on the environmental control bonds is secured by, and payable solely from, the proceeds of the environmental control charges. Creditors of FirstEnergy, other than the limited liability company SPEs, have no recourse to any assets or revenues of the special purpose limited liability companies. As of December 31, 2023 and 2022, $218 million and $247 million of environmental control bonds were outstanding, respectively. Phase-In Recovery Bonds In June 2013, the SPEs formed by the Ohio Companies issued approximately $445 million of pass-through trust certificates supported by phase-in recovery bonds to securitize the recovery of certain all-electric customer heating discounts, fuel and purchased power regulatory assets. The phase-in recovery bonds are payable only from, and secured by, phase in recovery property owned by the SPEs. The bondholder has no recourse to the general credit of FirstEnergy or any of the Ohio Companies. Each of the Ohio Companies, as servicer of its respective SPE, manages and administers the phase in recovery property including the billing, collection and remittance of usage-based charges payable by retail electric customers. The SPEs are considered VIEs and each one is consolidated into its applicable utility. As of December 31, 2023 and 2022, $191 million and $206 million of the phase-in recovery bonds were outstanding, respectively. FMBs The Ohio Companies, Penn, MP, PE, and WP each have a first mortgage indenture under which they can issue FMBs secured by a direct first mortgage lien on substantially all of their property and franchises, other than specifically excepted property. The outstanding debt under the FMBs of specific FE PA predecessors (WP and Penn) were assumed by FE PA. Debt Covenant Default Provisions FirstEnergy has various debt covenants under certain financing arrangements, including its revolving credit facilities and term loans. The most restrictive of the debt covenants relate to the nonpayment of interest and/or principal on such debt and the maintenance of certain financial ratios. The failure by FirstEnergy to comply with the covenants contained in its financing arrangements could result in an event of default, which may have an adverse effect on its financial condition. As of December 31, 2023, FirstEnergy remains in compliance with all debt covenant provisions. Additionally, there are cross-default provisions in a number of the financing arrangements. These provisions generally trigger a default in the applicable financing arrangement of an entity if it, or any of its significant subsidiaries, default under another financing arrangement in excess of a certain principal amount, typically $100 million. Such defaults by any of the Utilities or Transmission Companies would cross-default certain FE financing arrangements containing these provisions, and a certain FET Financing arrangement, with respect to the Transmission Companies only. Such defaults by AE Supply would not cross-default to applicable financing arrangements of FE. Also, defaults by FE would generally not cross-default applicable financing arrangements of any of FE’s subsidiaries. Cross-default provisions are not typically found in any of the senior notes or FMBs of FE or its subsidiaries. |
SHORT-TERM BORROWINGS AND BANK
SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT | SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT FirstEnergy had $775 million and $100 million of outstanding short-term borrowings as of December 31, 2023 and 2022, respectively. On October 18, 2021, FE, FET, the Utilities, and the Transmission Companies entered into the 2021 Credit Facilities, which were six separate senior unsecured five-year syndicated revolving credit facilities with JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd. and PNC Bank, National Association that replaced the FE Revolving Facility and the FET Revolving Facility, and provide for aggregate commitments of $4.5 billion. Under the 2021 Credit Facilities, an aggregate amount of $4.5 billion is available to be borrowed, repaid and reborrowed, subject to each borrower’s respective sublimit under the respective facilities. These credit facilities provide substantial liquidity to support the Regulated businesses, and each of the operating companies within the businesses. On October 20, 2023, FE and certain of its subsidiaries entered into the amendments to each of the 2021 Credit Facilities to, among other things; (i) amend the FE Revolving Facility to release FET as a borrower and (ii) extend the maturity date of the 2021 Credit Facilities for an additional one-year period, from October 18, 2026 to October 18, 2027. Also, on October 20, 2023, each of FET and KATCo entered into the 2023 Credit Facilities. In connection with PA Consolidation, the Pennsylvania Companies' rights and obligations under their revolving credit facility were assumed by FE PA on January 1, 2024. Under the FET Revolving Facility, $1.0 billion is available to be borrowed, repaid and reborrowed until October 20, 2028. Under the KATCo Revolving Facility, (i) $150 million is available to be borrowed, repaid and reborrowed until October 20, 2027, (ii) borrowings will mature on the earlier of 364 days from the date of borrowing or the commitment termination date, as the same may be extended; upon KATCo demonstrating to the administrative agent authorization to borrow amounts maturing more than 364 days from the date of borrowing, its borrowings will mature on the latest commitment termination date. KATCo may not draw on the KATCo Credit Facility until the satisfaction of certain conditions, including the availability of first quarter financial statements, which are expected to be completed during the second quarter of 2024. The 2021 Credit Facilities and 2023 Credit Facilities are as follows: • FE, $1.0 billion revolving credit facility; • FET, $1.0 billion revolving credit facility; • Ohio Companies, $800 million revolving credit facility; • FE PA, $950 million revolving credit facility; • JCP&L, $500 million revolving credit facility; • MP and PE, $400 million revolving credit facility; • Transmission Companies, $850 million revolving credit facility; and • KATCo, $150 million revolving credit facility. As of December 31, 2023, available liquidity under the 2021 and 2023 Credit Facilities was approximately $5.0 billion. Borrowings under the 2021 Credit Facilities and 2023 Credit Facilities may be used for working capital and other general corporate purposes. Generally, borrowings under each of the credit facilities are available to each borrower separately and mature on the earlier of 364 days from the date of borrowing or the commitment termination date, as the same may be extended. Each of the 2021 Credit Facilities and 2023 Credit Facilities contain financial covenants requiring each borrower, with the exception of FE, to maintain a consolidated debt-to-total-capitalization ratio (as defined under each of the 2021 Credit Facilities and 2023 Credit Facilities) of no more than 65%, and 75% for FET, measured at the end of each fiscal quarter. FE is required under its 2021 Credit Facility to maintain a consolidated interest coverage ratio of not less than 2.50 times, measured at the end of each fiscal quarter for the last four fiscal quarters beginning with the quarter ending December 31, 2021. Subject to each borrower’s sublimit, certain amounts are available for the issuance of LOCs (subject to borrowings drawn under the 2021 Credit Facilities and 2023 Credit Facilities) expiring up to one year from the date of issuance. The stated amount of outstanding LOCs will count against total commitments available under each of the 2021 Credit Facilities and 2023 Credit Facilities and against the applicable borrower’s borrowing sublimit. As of December 31, 2023, FirstEnergy had $4 million in outstanding LOCs. The 2021 Credit Facilities and 2023 Credit Facilities do not contain provisions that restrict the ability to borrow or accelerate payment of outstanding advances in the event of any change in credit ratings of the borrowers. Pricing is defined in “pricing grids,” whereby the cost of funds borrowed under the 2021 Credit Facilities and the 2023 Credit Facilities are related to the credit ratings of the company borrowing the funds. Additionally, borrowings under each of the 2021 Credit Facilities and 2023 Credit Facilities are subject to the usual and customary provisions for acceleration upon the occurrence of events of default, including a cross-default for other indebtedness in excess of $100 million. As of December 31, 2023, the borrowers were in compliance with the applicable interest coverage and debt-to-total-capitalization ratio covenants in each case as defined under the 2021 Credit Facilities and 2023 Credit Facilities. FirstEnergy Money Pools FirstEnergy’s utility operating subsidiary companies also have the ability to borrow from each other and FE to meet their short-term working capital requirements. Similar but separate arrangements exist among FirstEnergy’s unregulated companies with AE Supply, FE, FET, FEV and certain other unregulated subsidiaries. FESC administers these money pools and tracks surplus funds of FE and the respective regulated and unregulated subsidiaries, as the case may be, as well as proceeds available from bank borrowings. Companies receiving a loan under the money pool agreements must repay the principal amount of the loan, together with accrued interest, within 364 days of borrowing the funds. The rate of interest is the same for each company receiving a loan from their respective pool and is based on the average cost of funds available through the pool. The high interest rate environment has caused the rate and interest expense on borrowings under the various FirstEnergy credit facilities to be significantly higher. Average Interest Rates Regulated Companies’ Money Pool Unregulated Companies’ Money Pool 2023 2022 2023 2022 For the Years Ended December 31, 6.30 % 2.27 % 6.01 % 2.14 % Weighted Average Interest Rates |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS STATE REGULATION Each of the Utilities' retail rates, conditions of service, issuance of securities and other matters are subject to regulation in the states in which it operates - in Maryland by the MDPSC, in New Jersey by the NJBPU, in Ohio by the PUCO, in Pennsylvania by the PPUC, in West Virginia by the WVPSC and in New York by the NYPSC. The transmission operations of PE and TrAIL in Virginia, ATSI in Ohio, the Transmission Companies in Pennsylvania, PE and MP in West Virginia, and PE in Maryland are subject to certain regulations of the VSCC, PUCO, PPUC, WVPSC, and MDPSC, respectively. In addition, under Ohio law, municipalities may regulate rates of a public utility, subject to appeal to the PUCO if not acceptable to the utility. Further, if any of the FirstEnergy affiliates were to engage in the construction of significant new transmission facilities, depending on the state, they may be required to obtain state regulatory authorization to site, construct and operate the new transmission facility. The following table summarizes the key terms of base distribution rate orders in effect for the Utilities as of December 31, 2023: Company Rates Effective For Customers Allowed Debt/Equity Allowed ROE CEI May 2009 51% /49% 10.5% ME (1) January 2017 48.8% / 51.2% Settled (2) MP February 2015 54% / 46% Settled (2) JCP&L November 2021 48.6% / 51.4% 9.6% OE January 2009 51% /49% 10.5% PE (West Virginia) February 2015 51% / 49% Settled (2) PE (Maryland) October 2023 47% / 53% 9.5% PN (1) January 2017 47.4% /52.6% Settled (2) Penn (1) January 2017 49.9% / 50.1% Settled (2) TE January 2009 51% / 49% 10.5% WP (1) January 2017 49.7% / 50.3% Settled (2) (1) Reflects filed debt/equity as final settlement/orders do not specifically include capital structure. Additionally, on January 1, 2024, FirstEnergy consolidated the Pennsylvania Companies into FE PA, making it a new, single operating entity, and will operate under the rate districts of the former Pennsylvania Companies. (2) Commission-approved settlement agreements did not disclose ROE rates. MARYLAND PE operates under MDPSC approved base rates that were effective as of October 19, 2023. PE also provides SOS pursuant to a combination of settlement agreements, MDPSC orders and regulations, and statutory provisions. SOS supply is competitively procured in the form of rolling contracts of varying lengths through periodic auctions that are overseen by the MDPSC and a third-party monitor. Although settlements with respect to SOS supply for PE customers have expired, service continues in the same manner until changed by order of the MDPSC. PE recovers its costs plus a return for providing SOS. On March 22, 2023, PE filed a base rate case with the MDPSC, utilizing a test year based on twelve months of actual 2022 data. The base rate case request included an annual increase in base distribution rates of $50.4 million, plus a request to establish a regulatory asset (or liability) to recover (or refund) in a subsequent base rate case the net differences between the amount of pension and OPEB expense requested in the proceeding (based on average expense from 2018 to 2022) and the actual annual amount each year using the delayed recognition method. The rate case additionally requested approval to continue an EDIS to fund three service reliability and resiliency programs, two new proposed programs to assist low-income customers and cost recovery of certain expenses associated with PE’s pilot electric vehicle charger program and its COVID-19 pandemic response. On October 18, 2023, the MDPSC approved an annual increase in base distribution rates of $28 million, effective October 19, 2023. The order denied PE’s request to establish a pension/OPEB regulatory asset (or liability), allowed recovery of most COVID-19 deferred costs; and rejected the continuation of PE’s EDIS, as PE's reliability has improved such that the surcharge recovery mechanism is no longer merited at this time. The MDPSC also ordered an independent audit of certain allocations from FESC to PE and denied recovery of approximately $12 million in rate base associated with certain corporate support costs recorded to capital accounts resulting from the FERC Audit. On January 3, 2024, the MDPSC issued an order granting PE’s request for reconsideration and increased PE’s allowed distribution rates by another $0.7 million. The EmPOWER Maryland program requires each electric utility to file a plan to reduce electric consumption and demand 0.2% per year, up to the ultimate goal of 2% annual savings. PE recovers program investments with a return through an annually reconciled surcharge, with most costs subject to recovery over a five-year period with a return on the unamortized balance. Maryland law only allows for the utility to recover lost distribution revenue attributable to energy efficiency or demand reduction programs through a base rate case proceeding. On August 1, 2023, PE filed its proposed plan for the 2024-2026 cycle as required by the MDPSC. Consistent with a December 29, 2022, order by the MDPSC phasing out the ability of Maryland utilities to earn a return on EmPOWER investments, PE will be required to expense 33% of its EmPOWER program costs in 2024, 67% in 2025 and 100% in 2026. Notwithstanding the order to phase out PE’s ability to earn a return on its EmPOWER investments, all previously unamortized costs for prior cycles will continue to earn a return and be collected by the end of 2029, consistent with the plan PE submitted on January 11, 2023. In the 2024-2026 order issued on December 29, 2023, the period to pay down the amortized balances was extended through the end of 2031. Additionally at the direction of the MDPSC, PE together with other Maryland utilities are required to address GHG reductions in addition to energy efficiency. In compliance with the MDPSC directive, PE submitted three scenarios with projected costs over a three-year cycle of $310 million, $354 million, and $510 million, respectively. The MDPSC conducted hearings on the proposed plans for all Maryland utilities on November 6-8, 2023. On December 29, 2023, the MDPSC issued an order approving the $310 million scenario for most programs, with some modifications. On April 17, 2023, PE submitted a proposal to the MDPSC seeking approval to end its PPA with the Warrior Run generating station. The PPA for Warrior Run was a requirement of the Public Utility Regulatory Policies Act of 1978. PE’s Maryland customers currently pay a surcharge on their electric bill in connection with the Warrior Run PPA, which fluctuates from year to year based on the difference between what PE pays for the output of the plant and what PE is able to recover by reselling that output into PJM. PE negotiated a termination of the PPA, which the MDPSC approved on June 21, 2023, and became effective June 28, 2023, requiring it to pay Warrior Run a fixed amount of $51 million annually through 2029, for a total of $357 million. During the second quarter of 2023, a liability was established for the $357 million termination fee, of which $55 million was included in “Other current liabilities” and $302 million in “Other non-current liabilities”, and as the cost of the termination fee will be recovered through the current surcharge, an offsetting regulatory asset was established on FirstEnergy’s Consolidated Balance Sheets, and results in no impact to FirstEnergy’s or PE’s current or future earnings and is expected to result in savings for PE’s Maryland customers. On July 26, 2023, the MDPSC approved the change in surcharge, effective August 1, 2023, after previously approving the termination of the agreement. NEW JERSEY JCP&L operates under NJBPU approved rates that took effect as of January 1, 2021, and were effective for customers as of November 1, 2021. JCP&L provides BGS for retail customers who do not choose a third-party EGS and for customers of third- party 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. On March 16, 2023, JCP&L filed a base rate case with the NJBPU, utilizing a test year based on six months of actual data for the second half of calendar year 2022, and six months of forecasted data for the first half of calendar year 2023. The rate case requested an annual net increase in base distribution revenues of approximately $185 million, plus a request to establish a regulatory asset (or liability) to recover (or refund) in a subsequent base rate case the net differences between the amount of pension and OPEB expense requested in the proceeding (based on 2023 expense) and the actual annual amount each year using the delayed recognition method. JCP&L updated its base rate case in filings made on June 2, 2023 and August 7, 2023 to provide actual test-year data for the twelve months ended June 30, 2023, and update its proposed annual net increase in base rate distribution revenues to approximately $192 million. In addition to the above, JCP&L’s request includes, among other things, approval of two new proposed programs to assist low-income customers, cost recovery of certain investments and expenses associated with its electric vehicle and AMI programs, an update of its depreciation rates, modifications to its storm cost recovery, and tariff modifications to update standard construction costs. A procedural schedule was adopted with evidentiary hearings to be held the week of January 8, 2024. On October 17, 2023, JCP&L requested a suspension of the procedural schedule to enter into formal settlement discussions, which all parties agreed, and the administrative law judge granted the same day. On February 2, 2024, JCP&L, joined by various parties, filed a stipulated settlement with the NJBPU resolving JCP&L’s request for a distribution base rate increase. The settlement provides for an $85 million annual base distribution revenues increase for JCP&L, which, if approved by the NJBPU, is expected to take effect February 15, 2024, and be effective for customers on June 1, 2024. Until those new rates become effective for customers, JCP&L would begin to amortize an existing regulatory liability totaling approximately $18 million to offset the base rate increase that otherwise would have occurred in this period. Under the base rate case settlement agreement, JCP&L also agreed to a two-phase reliability improvement plan to enhance the reliability related to 18 high-priority circuits, the first phase of which will begin no later than March 1, 2024 and represents an approximate investment of $95 million. JCP&L expects to amend its pending EnergizeNJ petition upon receipt of NJBPU approval of the base rate case settlement, to include the second phase of its reliability improvement plan that is expected to address any remaining high-priority circuits not addressed in the first phase. The settlement did not include the request to establish a regulatory asset (or liability) to recover (or refund) net differences between the amount of pension and OPEB expense requested in the proceeding and the actual annual amount each year using the delayed recognition method, however, JCP&L has the ability to pursue in a future separate proceeding. JCP&L has implemented energy efficiency and peak demand reduction programs in accordance with the New Jersey Clean Energy Act as approved by the NJBPU in April 2021. The NJBPU approved plans include recovery of lost revenues resulting from the programs and a three-year plan (July 2021-June 2024) including total program costs of $203 million, of which $160 million of investment is recovered over a ten-year amortization period with a return as well as $43 million in operations and maintenance expenses and financing costs recovered on an annual basis. On December 5, 2023, JCP&L filed a petition with the NJBPU for a six-month extension of EE&C Plan I, which was originally scheduled to end on June 30, 2024, but would end on December 31, 2024, with the extension. The proposed budget for the extension period would add approximately $69 million to the original program cost. Under the proposal, JCP&L would recover the costs of the extension period and the revenue impact of sales losses resulting therefrom through two separate tariff riders. On December 1, 2023, JCP&L filed a related petition with the NJBPU requesting approval of its EE&C Plan II, which covers the January 1, 2025 through June 30, 2027 period and has a proposed budget of approximately $964 million. EE&C Plan II consists of a portfolio of ten energy efficiency programs, one peak demand reduction program and one building decarbonization program. Under the proposal, JCP&L would recover its EE&C Plan II revenue requirements and lost revenues from reduced electricity sales associated with EE&C Plan II. On March 6, 2023, the NJBPU issued final rules modifying its regulations to reflect its CTA policy in base rate cases to: (i) calculate savings using a five-year look back from the beginning of the test year; (ii) allocate 100% of CTA savings to customers; and (iii) exclude transmission assets of EDCs in the savings calculation. The final rules of practice were applied by JCP&L in its most recent base rate case filing described above. On October 28, 2020, the NJBPU approved a stipulated settlement between JCP&L and various parties, resolving JCP&L’s request for distribution base rate increase. The settlement provided for a $94 million annual base distribution revenues increase for JCP&L based on an ROE of 9.6%, which became effective for customers on November 1, 2021. The settlement additionally provided that JCP&L would be subject to a management audit, which began in May 2021. On April 12, 2023, the NJBPU accepted the final management audit report for filing purposes and ordered that interested stakeholders file comments on the report by May 22, 2023, which deadline was extended until July 31, 2023. JCP&L filed its comments on July 31, 2023. The parties have filed responses. On July 2, 2020, the NJBPU issued an order allowing New Jersey utilities to track and create a regulatory asset for future recovery of all prudently incurred incremental costs arising from the COVID-19 pandemic beginning March 9, 2020 and continuing until the New Jersey Governor issues an order stating that the COVID-19 pandemic is no longer in effect. New Jersey utilities can request recovery of such regulatory asset in a stand-alone COVID-19 regulatory asset filing or future base rate case. On October 28, 2020, the NJBPU issued an order expanding the scope of the proceeding to examine all pandemic issues, including recovery of the COVID-19 regulatory assets, by way of a generic proceeding. No moratorium on residential disconnections remains in effect for investor-owned electric utilities such as JCP&L. Legislation was enacted on March 25, 2022, prohibiting utilities from disconnecting electric service to customers that have applied for utility bill assistance before June 15, 2022 until such time as the state agency administering the assistance program makes a decision on the application and further requiring that all utilities offer a deferred payment arrangement meeting certain minimum criteria after the state agency’s decision on the application has been made. On July 17, 2023, JCP&L submitted a stand-alone filing to recover approximately $31 million, through October 1, 2023, in incremental costs and interest incurred during the COVID-19 pandemic. On September 17, 2021, in connection with Mid-Atlantic Offshore Development, LLC, a transmission company jointly owned by Shell New Energies US and EDF Renewables North America, JCP&L submitted a proposal to the NJBPU and PJM to build transmission infrastructure connecting offshore wind-generated electricity to the New Jersey power grid. On October 26, 2022, the JCP&L proposal was accepted, in part, in an order issued by NJBPU. The proposal, as accepted, included approximately $723 million in investments for JCP&L to both build new and upgrade existing transmission infrastructure. JCP&L’s proposal projects an investment ROE of 10.2% and includes the option for JCP&L to acquire up to a 20% equity stake in Mid-Atlantic Offshore Development, LLC. The resulting rates associated with the project are expected to be shared among the ratepayers of all New Jersey electric utilities. On April 17, 2023, JCP&L applied for the FERC “abandonment” transmission rates incentive, which would provide for recovery of 100% of the cancelled prudent project costs that are incurred after the incentive is approved, and 50% of the costs incurred prior to that date, in the event that some or all of the project is cancelled for reasons beyond JCP&L’s control. FERC staff subsequently requested additional information on JCP&L’s application, which JCP&L provided. On August 21, 2023, FERC approved JCP&L’s application, effective August 22, 2023. On October 31, 2023, offshore wind developer, Orsted, announced plans to cease development of two offshore wind projects in New Jersey—Ocean Wind 1 and 2—having a combined planned capacity of 2,248 MW. At this time, Orsted’s announcement does not affect JCP&L’s awarded projects and JCP&L is moving forward with preconstruction activities for the planned transmission infrastructure. Construction is expected to begin in 2025. Consistent with the commitments made in its proposal to the NJBPU, JCP&L formally submitted in November 2023 the first part of its application to the United States Department of Energy to finance a portion of the project using low-interest rate loans available under the United States Department of Energy’s Energy Infrastructure Reinvestment Program of the IRA of 2022. JCP&L anticipates submitting the second part of its two-part application in the first quarter of 2024. On November 9, 2023, JCP&L filed a petition for approval of its second EnergizeNJ with the NJBPU that would, among other things, support grid modernization, system resiliency and substation modernization in technologies designed to provide enhanced customer benefits. JCP&L proposes EnergizeNJ will be implemented over a five-year budget period with estimated costs of approximately $935 million over the deployment period, of which, $906 million is capital investments and $29 million is operating and maintenance expenses. Under the proposal, the costs of EnergizeNJ would be recovered through JCP&L's base rates via annual and semi-annual base rate adjustment filings. Public hearings have been requested but are not yet scheduled. JCP&L has requested that the NJBPU issue a final decision and order no later than May 22, 2024, based on a June 1, 2024, commencement date for EnergizeNJ. JCP&L anticipates filing amendments to the EnergizeNJ program after receipt of approval from the NJBPU of the base rate case stipulation that was filed on February 2, 2024. OHIO The Ohio Companies operate under PUCO-approved base distribution rates that became effective in 2009. The Ohio Companies currently operate under ESP IV, effective June 1, 2016 and continuing through May 31, 2024, that continues the supply of power to non-shopping customers at a market-based price set through an auction process. ESP IV also continues the Rider DCR, which supports continued investment related to the distribution system for the benefit of customers, with increased revenue caps of $20 million per year from June 1, 2019 through May 31, 2022; and $15 million per year from June 1, 2022 through May 31, 2024. In addition, ESP IV includes: (1) continuation of a base distribution rate freeze through May 31, 2024; (2) a goal across FirstEnergy to reduce CO 2 emissions by 90% below 2005 levels by 2045; and (3) contributions, totaling $51 million to: (a) fund energy conservation programs, economic development and job retention in the Ohio Companies’ service territories; (b) establish a fuel-fund in each of the Ohio Companies’ service territories to assist low-income customers; and (c) establish a Customer Advisory Council to ensure preservation and growth of the competitive market in Ohio. On April 5, 2023, the Ohio Companies filed an application with the PUCO for approval of ESP V, for an eight-year term beginning June 1, 2024, and continuing through May 31, 2032. ESP V proposes to continue providing power to non-shopping customers at market-based prices set through an auction process, with process enhancements designed to reduce costs to customers. ESP V also proposes to continue riders supporting investment in the Ohio Companies’ distribution system, including Rider DCR with annual revenue cap increases of $15 to $21 million per year, based on reliability performance, and Rider AMI for recovery of approved grid modernization investments. ESP V proposes new riders to support continued maintenance of the distribution system, including vegetation management and storm restoration operating expense. In addition, ESP V proposes four-year energy efficiency and peak demand reduction programs for residential and commercial customers, with cost recovery spread over eight years. ESP V further includes a commitment to spend $52 million in total over the eight-year term, without recovery from customers, on initiatives to assist low-income customers, education and incentives to help ensure customers have good experiences with electric vehicles. Hearings commenced on November 7, 2023 and concluded on December 6, 2023. On December 6, 2023, certain intervenors filed a motion requesting a limited stay of the Ohio Companies’ proposal to continue Rider DCR. The Ohio Companies contested the motion, which is pending. On May 16, 2022, the Ohio Companies filed their application for determination of the existence of SEET under ESP IV for calendar year 2021, which demonstrated that each of the individual Ohio Companies did not have significantly excessive earnings. This matter remains pending before the PUCO. On July 15, 2022, the Ohio Companies filed an application with the PUCO for approval of phase two of their distribution grid modernization plan that would, among other things, provide for the installation of an additional 700 thousand smart meters, distribution automation equipment on approximately 240 distribution circuits, voltage regulating equipment on approximately 220 distribution circuits, and other investments and pilot programs in related technologies designed to provide enhanced customer benefits. The Ohio Companies propose that phase two will be implemented over a four-year budget period with estimated capital investments of approximately $626 million and operations and maintenance expenses of approximately $144 million over the deployment period. Under the proposal, costs of phase two of the grid modernization plan would be recovered through the Ohio Companies’ AMI rider, pursuant to the terms and conditions approved in ESP IV. Hearings are scheduled to commence on April 16, 2024. On January 22, 2024, OCC filed a motion requesting a stay of phase two. The Ohio Companies contested the motion, which is pending. On September 8, 2020, the OCC filed motions in the Ohio Companies’ corporate separation audit and DMR audit dockets, requesting the PUCO to open an investigation and management audit, hire an independent auditor, and require FirstEnergy to show it did not improperly use money collected from consumers or violate any utility regulatory laws, rules or orders in its activities regarding HB 6. On December 30, 2020, in response to the OCC's motion, the PUCO reopened the DMR audit docket, and directed PUCO staff to solicit a third-party auditor and conduct a full review of the DMR to ensure funds collected from customers through the DMR were only used for the purposes established in ESP IV. On June 2, 2021, the PUCO selected an auditor, and the auditor filed the final audit report on January 14, 2022, which made certain findings and recommendations. The report found that spending of DMR revenues was not required to be tracked, and that DMR revenues, like all rider revenues, are placed into the regulated money pool as a matter of routine, where the funds lose their identity. Therefore, the report could not suggest that DMR funds were used definitively for direct or indirect support for grid modernization. The report also concluded that there was no documented evidence that ties revenues from the DMR to lobbying for the passage of HB 6, but also could not rule out with certainty uses of DMR funds to support the passage of HB 6. The report further recommended that the regulated companies' money pool be audited more frequently and the Ohio Companies adopt formal dividend policies. Final comments and responses were filed by parties during the second quarter of 2022. On September 15, 2020, the PUCO opened a new proceeding to review the political and charitable spending by the Ohio Companies in support of HB 6 and the subsequent referendum effort, and directing the Ohio Companies to show cause, demonstrating that the costs of any political or charitable spending in support of HB 6, or the subsequent referendum effort, were not included, directly or indirectly, in any rates or charges paid by customers. The Ohio Companies initially filed a response stating that the costs of any political or charitable spending in support of HB 6, or the subsequent referendum effort, were not included, directly or indirectly, in any rates or charges paid by customers, but on August 6, 2021, filed a supplemental response explaining that, in light of the facts set forth in the DPA and the findings of the Rider DCR audit report further discussed below, political or charitable spending in support of HB 6, or the subsequent referendum effort, affected pole attachment rates paid by approximately $15 thousand. On October 26, 2021, the OCC filed a motion requesting the PUCO to order an independent external audit to investigate FE’s political and charitable spending related to HB 6, and to appoint an independent review panel to retain and oversee the auditor. In November and December 2021, parties filed comments and reply comments regarding the Ohio Companies’ original and supplemental responses to the PUCO’s September 15, 2020, show cause directive. On May 4, 2022, the PUCO selected a third-party auditor to determine whether the show cause demonstration submitted by the Ohio Companies is sufficient to ensure that the cost of any political or charitable spending in support of HB 6 or the subsequent referendum effort was not included, directly or indirectly, in any rates or charges paid by ratepayers. In connection with an ongoing audit of the Ohio Companies’ policies and procedures relating to the code of conduct rules between affiliates, on November 4, 2020, the PUCO initiated an additional corporate separation audit as a result of the FirstEnergy leadership transition announcement made on October 29, 2020, as further discussed below. The additional audit is to ensure compliance by the Ohio Companies and their affiliates with corporate separation laws and the Ohio Companies’ corporate separation plan. The additional audit is for the period from November 2016 through October 2020. The final audit report was filed on September 13, 2021. The audit report makes no findings of major non-compliance with Ohio corporate separation requirements, minor non-compliance with eight requirements, and findings of compliance with 23 requirements. Parties filed comments and reply comments on the audit report. In connection with an ongoing annual audit of the Ohio Companies’ Rider DCR for 2020, and as a result of disclosures in FirstEnergy’s Form 10-K for the year ended December 31, 2020 (filed on February 18, 2021), the PUCO expanded the scope of the audit on March 10, 2021, to include a review of certain transactions that were either improperly classified, misallocated, or lacked supporting documentation, and to determine whether funds collected from customers were used to pay the vendors, and if so, whether or not the funds associated with those payments should be returned to customers through Rider DCR or through an alternative proceeding. On August 3, 2021, the auditor filed its final report on this phase of the audit, and the parties submitted comments and reply comments on this audit report in October 2021. Additionally, on September 29, 2021, the PUCO expanded the scope of the audit in this proceeding to determine if the costs of the naming rights for FirstEnergy Stadium have been recovered from the Ohio Companies’ customers. On November 19, 2021, the auditor filed its final report, in which the auditor concluded that the FirstEnergy Stadium naming rights expenses were not recovered from Ohio customers. On December 15, 2021, the PUCO further expanded the scope of the audit to include an investigation into an apparent nondisclosure of a side agreement in the Ohio Companies’ ESP IV settlement proceedings, but stayed its expansion of the audit until otherwise ordered by the PUCO. On August 16, 2022, the U.S. Attorney for the Southern District of Ohio requested that the PUCO stay the above pending HB 6- related matters for a period of six months, which request was granted by the PUCO on August 24, 2022. On February 22, 2023, the U.S. Attorney for the Southern District of Ohio again requested that the PUCO stay the above pending HB-6 related matters for a period of six months, which request was granted by the PUCO on March 8, 2023. On August 10, 2023, the U.S. Attorney for the Southern District of Ohio requested that the PUCO stay the above pending HB 6-related matters for a period of six additional months, which was approved by the PUCO on August 23, 2023. On September 22, 2023, OCC filed an application for rehearing challenging the PUCO’s August 23, 2023, order, which the PUCO denied on October 18, 2023. On November 17, 2023, OCC filed an application for rehearing challenging the October 18, 2023 entry to the extent the PUCO decided not to stay ESP V as well as Grid Mod I and Grid Mod II along with the investigations. On November 27, 2023, the Ohio Companies filed a memorandum contra OCC’s application for rehearing. The four cases remain stayed in their entirety, including discovery and motions, and all related procedural schedules are vacated. In the fourth quarter of 2020, motions were filed with the PUCO requesting that the PUCO amend the Ohio Companies’ riders for collecting the OVEC-related charges required by HB 6 to provide for refunds in the event such provisions of HB 6 are repealed. Neither the Ohio Companies nor FE benefit from the OVEC-related charges the Ohio Companies collect. Instead, the Ohio Companies are further required by HB 6 to remit all the OVEC-related charges they collect to non-FE Ohio electric distribution utilities. The Ohio Companies contested the motions, which are pending before the PUCO. On May 15, 2023, the Ohio Companies filed their application for determination of the existence of SEET under ESP IV for calendar year 2022, which demonstrated that each of the individual Ohio Companies did not have significantly excessive earnings. This matter remains pending before the PUCO. See Note 14, "Commitments, Guarantees and Contingencies" below for additional details on the government investigations and subsequent litigation surrounding the investigation of HB 6. PENNSYLVANIA The Pennsylvania Companies operated under rates approved by the PPUC, effective as of January 27, 2017. On January 1, 2024, each of the Pennsylvania Companies merged with and into FE PA. As a result of the PA Consolidation, FE PA will have five rate districts in Pennsylvania – four that correspond to the territories previously serviced by ME, PN, Penn, and WP and one rate district that corresponds to WP’s service provided to The Pennsylvania State University. The rate districts created by the PA Consolidation will continue the current rate structure of ME, PN, Penn, and WP until the earlier of 2033 or in the fourth base rate case filed after January 1, 2025. Pursuant to Pennsylvania Act 129 of 2008 and PPUC orders, the Pennsylvania Companies implemented energy efficiency and peak demand reduction programs with demand reduction targets, relative to 2007 to 2008 peak demands, at 2.9% MW for ME, 3.3% MW for PN, 2.0% MW for Penn, and 2.5% MW for WP; and energy consumption reduction targets, as a percentage of the Pennsylvania Companies’ historic 2009 to 2010 reference load at 3.1% MWh for ME, 3.0% MWh for PN, 2.7% MWh for Penn, and 2.4% MWh for WP. The fourth phase of FE PA’s energy efficiency and peak demand reduction program, which runs fo |
COMMITMENTS, GUARANTEES AND CON
COMMITMENTS, GUARANTEES AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES AND CONTINGENCIES | COMMITMENTS, GUARANTEES AND CONTINGENCIES GUARANTEES AND OTHER ASSURANCES FirstEnergy has various financial and performance guarantees and indemnifications which are issued in the normal course of business. These contracts include performance guarantees, stand-by LOCs, debt guarantees, surety bonds and indemnifications. FirstEnergy enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. As of December 31, 2023, outstanding guarantees and other assurances aggregated approximately $815 million, consisting of parental guarantees on behalf of its consolidated subsidiaries ($515 million) and other assurances ($300 million). COLLATERAL AND CONTINGENT-RELATED FEATURES In the normal course of business, FE and its subsidiaries may enter into physical or financially settled contracts for the sale and purchase of electric capacity, energy, fuel and emission allowances. Certain agreements contain provisions that require FE or its subsidiaries to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon FE's or its subsidiaries' credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. As of December 31, 2023, $89 million of net cash collateral has been posted by FE or its subsidiaries and is included in "Prepaid taxes and other current assets" on FirstEnergy's Consolidated Balance Sheets. FE or its subsidiaries are holding $27 million of net cash collateral as of December 31, 2023, from certain generation suppliers, and such amount is included in "Other current liabilities" on FirstEnergy's Consolidated Balance Sheets. These credit-risk-related contingent features stipulate that if the subsidiary were to be downgraded or lose its investment grade credit rating (based on its senior unsecured debt rating), it would be required to provide additional collateral. The following table discloses the potential additional credit rating contingent contractual collateral obligations as of December 31, 2023: Potential Collateral Obligations Utilities and Transmission Companies FE Total (In millions) Contractual Obligations for Additional Collateral Upon Further Downgrade $ 62 $ — $ 62 Surety Bonds (collateralized amount) (1) 86 79 165 Total Exposure from Contractual Obligations $ 148 $ 79 $ 227 (1) Surety Bonds are not tied to a credit rating. Surety Bonds' impact assumes maximum contractual obligations, which is ordinarily 100% of the face amount of the surety bond except with respect to $39 million of surety obligations for which the collateral obligation is capped at 60% of the face amount, and typical obligations require 30 days to cure. ENVIRONMENTAL MATTERS Various federal, state and local authorities regulate FirstEnergy with regard to air and water quality, hazardous and solid waste disposal, and other environmental matters. While FirstEnergy’s environmental policies and procedures are designed to achieve compliance with applicable environmental laws and regulations, such laws and regulations are subject to periodic review and potential revision by the implementing agencies. FirstEnergy cannot predict the timing or ultimate outcome of any of these reviews or how any future actions taken as a result thereof may materially impact its business, results of operations, cash flows and financial condition. Clean Air Act FirstEnergy complies with SO 2 and NOx emission reduction requirements under the CAA and SIP by burning lower-sulfur fuel, utilizing combustion controls and post-combustion controls and/or using emission allowances. CSAPR requires reductions of NOx and SO 2 emissions in two phases (2015 and 2017), ultimately capping SO 2 emissions in affected states to 2.4 million tons annually and NOx emissions to 1.2 million tons annually. CSAPR allows trading of NOx and SO 2 emission allowances between power plants located in the same state and interstate trading of NOx and SO 2 emission allowances with some restrictions. On July 28, 2015, the D.C. Circuit ordered the EPA to reconsider the CSAPR caps on NOx and SO 2 emissions from power plants in 13 states, including West Virginia. This followed the 2014 U.S. Supreme Court ruling generally upholding the EPA’s regulatory approach under CSAPR but questioning whether the EPA required upwind states to reduce emissions by more than their contribution to air pollution in downwind states. The EPA issued a CSAPR Update on September 7, 2016, reducing summertime NOx emissions from power plants in 22 states in the eastern U.S., including West Virginia, beginning in 2017. Various states and other stakeholders appealed the CSAPR Update to the D.C. Circuit in November and December 2016. On September 13, 2019, the D.C. Circuit remanded the CSAPR Update to the EPA citing that the rule did not eliminate upwind states’ significant contributions to downwind states’ air quality attainment requirements within applicable attainment deadlines. Also in March 2018, the State of New York filed a CAA Section 126 petition with the EPA alleging that NOx emissions from nine states (including West Virginia) significantly contribute to New York’s inability to attain the ozone National Ambient Air Quality Standards. The petition sought suitable emission rate limits for large stationary sources that are allegedly affecting New York’s air quality within the three years allowed by CAA Section 126. On September 20, 2019, the EPA denied New York’s CAA Section 126 petition. On October 29, 2019, the State of New York appealed the denial of its petition to the D.C. Circuit. On July 14, 2020, the D.C. Circuit reversed and remanded the New York petition to the EPA for further consideration. On March 15, 2021, the EPA issued a revised CSAPR Update that addressed, among other things, the remands of the prior CSAPR Update and the New York Section 126 petition. In December 2021, MP purchased NOx emissions allowances to comply with 2021 ozone season requirements. On April 6, 2022, the EPA published proposed rules seeking to impose further significant reductions in EGU NOx emissions in 25 upwind states, including West Virginia, with the stated purpose of allowing downwind states to attain or maintain compliance with the 2015 ozone National Ambient Air Quality Standards. On February 13, 2023, the EPA disapproved 21 SIPs, which was a prerequisite for the EPA to issue a final Good Neighbor Plan or FIP. On June 5, 2023, the EPA issued the final Good Neighbor Plan with an effective date 60 days thereafter. Certain states, including West Virginia, have appealed the disapprovals of their respective SIPs, and some of those states have obtained stays of those disapprovals precluding the Good Neighbor Plan from taking effect in those states. On August 10, 2023, the 4th Circuit granted West Virginia an interim stay of the disapproval of its SIP and on January 10, 2024, after a hearing held on October 27, 2023, granted a full stay which precludes the Good Neighbor Plan from going into effect in West Virginia. In addition to West Virginia, certain other states, and certain trade organizations, including the Midwest Ozone Group of which FE is a member, have separately appealed and filed motions to stay the Good Neighbor Plan itself at the D.C. Circuit. On September 25, 2023, the D.C. Circuit denied the motions to stay the Good Neighbor Plan. On October 13, 2023, the aggrieved parties filed an Emergency Application for an Immediate Stay of the Good Neighbor Plan with the U.S. Supreme Court, which remains pending. Oral argument is scheduled for February 21, 2024. Climate Change In September 2016, the U.S. joined in adopting the agreement reached on December 12, 2015, at the United Nations Framework Convention on Climate Change meetings in Paris to reduce GHGs. The Paris Agreement’s non-binding obligations to limit global warming to below two degrees Celsius became effective on November 4, 2016. On June 1, 2017, the Trump Administration announced that the U.S. would cease all participation in the Paris Agreement. On January 20, 2021, President Biden signed an executive order re-adopting the agreement on behalf of the U.S. There are several initiatives to reduce GHG emissions at the state, federal and international level. Certain northeastern states are participating in the Regional Greenhouse Gas Initiative and western states led by California, have implemented programs, primarily cap and trade mechanisms, to control emissions of certain GHGs. Additional policies reducing GHG emissions, such as demand reduction programs, renewable portfolio standards and renewable subsidies have been implemented across the nation. FirstEnergy has pledged to achieve carbon neutrality by 2050 in GHGs within FirstEnergy’s direct operational control (Scope 1). With respect to our coal-fired plants in West Virginia, we have identified that the end of the useful life date is 2035 for Fort Martin and 2040 for Harrison. Determination of the useful life of the regulated coal-fired generation could result in changes in depreciation, and/or continued collection of net plant in rates after retirement, securitization, sale, impairment, or regulatory disallowances. If MP is unable to recover these costs, it could have a material adverse effect on FirstEnergy’s and/or MP’s financial condition, results of operations, and cash flow. Furthermore, FirstEnergy cannot currently estimate the financial impact of climate change policies, although potential legislative or regulatory programs restricting CO2 emissions, or litigation alleging damages from GHG emissions, could require material capital and other expenditures or result in changes to its operations. In December 2009, the EPA released its final “Endangerment and Cause or Contribute Findings for GHGs under the Clean Air Act,” concluding that concentrations of several key GHGs constitute an “endangerment” and may be regulated as “air pollutants” under the CAA and mandated measurement and reporting of GHG emissions from certain sources, including electric generating plants. Subsequently, the EPA released its final CPP regulations in August 2015 to reduce CO 2 emissions from existing fossil fuel-fired EGUs and finalized separate regulations imposing CO 2 emission limits for new, modified, and reconstructed fossil fuel-fired EGUs. Numerous states and private parties filed appeals and motions to stay the CPP with the D.C. Circuit in October 2015. On February 9, 2016, the U.S. Supreme Court stayed the rule during the pendency of the challenges to the D.C. Circuit and U.S. Supreme Court. On March 28, 2017, an executive order, entitled “Promoting Energy Independence and Economic Growth,” instructed the EPA to review the CPP and related rules addressing GHG emissions and suspend, revise or rescind the rules if appropriate. On June 19, 2019, the EPA repealed the CPP and replaced it with the ACE rule that established guidelines for states to develop standards of performance to address GHG emissions from existing coal-fired generation. On January 19, 2021, the D.C. Circuit vacated and remanded the ACE rule declaring that the EPA was “arbitrary and capricious” in its rule making and, as such, the ACE rule is no longer in effect and all actions thus far taken by states to implement the federally mandated rule are now null and void. Vacating the ACE rule had the unintended effect of reinstating the CPP because the repeal of the CPP was a provision within the ACE rule. The D.C. Circuit decision was appealed by several states and interested parties, including West Virginia, arguing that the EPA did not have the authorization under Section 111(d) of the CAA to require “generation shifting” as a way to limit GHGs. On June 30, 2022, the U.S. Supreme Court in West Virginia v. Environmental Protection Agency held that the method the EPA used to regulate GHGs (generation shifting) under Section 111(d) of the CAA (the CPP) was not authorized by Congress and remanded the rule to the EPA for further reconsideration. In response, on May 23, 2023, the EPA published a proposed rule pursuant to CAA Section 111 (b) and (d) in line with the decision in West Virginia v. Environmental Protection Agency intended to reduce power sector GHG emissions (primarily CO 2 emissions) from fossil fuel based EGUs. The rule proposes stringent emissions limitations based on fuel type and unit retirement date. Comments on the proposed rule were submitted to the EPA on August 8, 2023. Depending on how final rules are ultimately implemented and the outcome of any appeals, compliance with these standards could require additional capital expenditures or changes in operation at the Ft. Martin and Harrison power stations. Clean Water Act Various water quality regulations, the majority of which are the result of the federal Clean Water Act and its amendments, apply to FirstEnergy’s facilities. In addition, the states in which FirstEnergy operates have water quality standards applicable to FirstEnergy’s operations. On September 30, 2015, the EPA finalized new, more stringent effluent limits for the Steam Electric Power Generating category (40 CFR Part 423) for arsenic, mercury, selenium and nitrogen for wastewater from wet scrubber systems and zero discharge of pollutants in ash transport water. The treatment obligations were to phase-in as permits are renewed on a five-year cycle from 2018 to 2023. However, on April 13, 2017, the EPA granted a Petition for Reconsideration and on September 18, 2017, the EPA postponed certain compliance deadlines for two years. On August 31, 2020, the EPA issued a final rule revising the effluent limits for discharges from wet scrubber systems, retaining the zero-discharge standard for ash transport water, (with some limited discharge allowances), and extending the deadline for compliance to December 31, 2025 for both. In addition, the EPA allows for less stringent limits for sub-categories of generating units based on capacity utilization, flow volume from the scrubber system, and unit retirement date. On March 29, 2023, the EPA published proposed revised ELGs applicable to coal-fired power plants that include more stringent effluent limitations for wet scrubber systems and ash transport water, and new limits on landfill leachate. Public hearings on the proposed rules were held in April 2023 and comments were accepted through May 30, 2023. In the interim, the rule issued on August 31, 2020, remains in effect. Depending on the outcome of appeals and how final revised rules are ultimately implemented, compliance with these standards could require additional capital expenditures or changes in operation at the Ft. Martin and Harrison power stations from what was approved by the WVPSC in September 2022 to comply with the 2020 ELG rule. Regulation of Waste Disposal Federal and state hazardous waste regulations have been promulgated as a result of the Resource Conservation and Recovery Act, as amended, and the Toxic Substances Control Act. Certain CCRs, such as coal ash, were exempted from hazardous waste disposal requirements pending the EPA’s evaluation of the need for future regulation. In April 2015, the EPA finalized regulations for the disposal of CCRs (non-hazardous), establishing national standards for landfill design, structural integrity design and assessment criteria for surface impoundments, groundwater monitoring and protection procedures and other operational and reporting procedures to assure the safe disposal of CCRs from electric generating plants. On September 13, 2017, the EPA announced that it would reconsider certain provisions of the final regulations. On July 29, 2020, the EPA published a final rule again revising the date that certain CCR impoundments must cease accepting waste and initiate closure to April 11, 2021. The final rule allowed for an extension of the closure deadline based on meeting identified site-specific criteria. On November 30, 2020, AE Supply submitted a closure deadline extension request to the EPA seeking to extend the cease accepting waste date for the McElroy's Run CCR impoundment facility through the end of the first quarter of 2024, which request is pending technical review by the EPA. AE Supply continues to operate McElroy’s Run as a disposal facility for Pleasants Power Station, which is owned and operated by a non-affiliate. FE or its subsidiaries have been named as potentially responsible parties at waste disposal sites, which may require cleanup under the CERCLA. Allegations of disposal of hazardous substances at historical sites and the liability involved are often unsubstantiated and subject to dispute; however, federal law provides that all potentially responsible parties for a particular site may be liable on a joint and several basis. Environmental liabilities that are considered probable have been recognized on the Consolidated Balance Sheets as of September 30, 2023, based on estimates of the total costs of cleanup, FirstEnergy’s proportionate responsibility for such costs and the financial ability of other unaffiliated entities to pay. Total liabilities of approximately $97 million have been accrued through December 31, 2023, of which, approximately $75 million are for environmental remediation of former MGP and gas holder facilities in New Jersey, which are being recovered by JCP&L through a non-bypassable societal benefits charge. FE or its subsidiaries could be found potentially responsible for additional amounts or additional sites, but the loss or range of losses cannot be determined or reasonably estimated at this time. OTHER LEGAL PROCEEDINGS United States v. Larry Householder, et al. On July 21, 2020, a complaint and supporting affidavit containing federal criminal allegations were unsealed against the now former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder. In March 2023, a jury found Mr. Householder and his co-defendant, Matthew Borges, guilty and in June 2023, the two were sentenced to prison for 20 and 5 years, respectively. Messrs. Householder and Borges have appealed their sentences. Also, on July 21, 2020, and in connection with the DOJ’s investigation, FirstEnergy received subpoenas for records from the U.S. Attorney’s Office for the Southern District Ohio. FirstEnergy was not aware of the criminal allegations, affidavit or subpoenas before July 21, 2020. On July 21, 2021, FE entered into a three-year DPA with the U.S. Attorney’s Office that, subject to court proceedings, resolves this matter. Under the DPA, FE has agreed to the filing of a criminal information charging FE with one count of conspiracy to commit honest services wire fraud. The DPA requires that FirstEnergy, among other obligations: (i) continue to cooperate with the U.S. Attorney’s Office in all matters relating to the conduct described in the DPA and other conduct under investigation by the U.S. government; (ii) pay a criminal monetary penalty totaling $230 million within sixty days, which shall consist of (x) $115 million paid by FE to the United States Treasury and (y) $115 million paid by FE to the ODSA to fund certain assistance programs, as determined by the ODSA, for the benefit of low-income Ohio electric utility customers; (iii) publish a list of all payments made in 2021 to either 501(c)(4) entities or to entities known by FirstEnergy to be operating for the benefit of a public official, either directly or indirectly, and update the same on a quarterly basis during the term of the DPA; (iv) issue a public statement, as dictated in the DPA, regarding FE’s use of 501(c)(4) entities; and (v) continue to implement and review its compliance and ethics program, internal controls, policies and procedures designed, implemented and enforced to prevent and detect violations of the U.S. laws throughout its operations, and to take certain related remedial measures. The $230 million payment will neither be recovered in rates or charged to FirstEnergy customers nor will FirstEnergy seek any tax deduction related to such payment. The entire amount of the monetary penalty was recognized as expense in the second quarter of 2021 and paid in the third quarter of 2021. Under the terms of the DPA, the criminal information will be dismissed after FirstEnergy fully complies with its obligations under the DPA. Legal Proceedings Relating to United States v. Larry Householder, et al. On August 10, 2020, the SEC, through its Division of Enforcement, issued an order directing an investigation of possible securities laws violations by FE, and on September 1, 2020, issued subpoenas to FE and certain FE officers. On April 28, 2021, July 11, 2022, and May 25, 2023, the SEC issued additional subpoenas to FE, with which FE has complied. While no contingency has been reflected in its consolidated financial statements, FE believes that it is probable that it will incur a loss in connection with the resolution of the SEC investigation. Given the ongoing nature and complexity of the review, inquiries and investigations, FE cannot yet reasonably estimate a loss or range of loss that may arise from the resolution of the SEC investigation. On June 29, 2023, the OOCIC served FE a subpoena, seeking information relating to the conduct described in the DPA. FirstEnergy was not aware of the OOCIC’s investigation prior to receiving the subpoena and understands that the OOCIC’s investigation is also focused on the conduct described in the DPA. FirstEnergy is cooperating with the OOCIC in its investigation. On February 12, 2024, and in connection with the OOCIC’s ongoing investigation, an indictment by a grand jury of Summit County, Ohio was unsealed against the former chairman of the PUCO, Samuel Randazzo, and two former FirstEnergy senior officers, Charles E. Jones, and Michael J. Dowling, charging each of them with several felony counts, including bribery, telecommunications fraud, money laundering and aggravated theft, related to payments described in the DPA. No contingency has been reflected in FirstEnergy’s consolidated financial statements, as a loss is neither probable, nor is a loss or range of loss reasonably estimable. In addition to the subpoenas referenced above under “—United States v. Larry Householder, et. al.” and the SEC investigation, certain FE stockholders and FirstEnergy customers filed several lawsuits against FirstEnergy and certain current and former directors, officers and other employees, and the complaints in each of these suits is related to allegations in the complaint and supporting affidavit relating to HB 6 and the now former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder. The plaintiffs in each of the below cases seek, among other things, to recover an unspecified amount of damages (unless otherwise noted). Unless otherwise indicated, no contingency has been reflected in FirstEnergy’s consolidated financial statements with respect to these lawsuits as a loss is neither probable, nor is a loss or range of a loss reasonably estimable. • 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 issuing 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, 12(a)(2) and 15 of the Securities Act of 1933 as a result of alleged misrepresentations or omissions in connection with offerings of senior notes by FE in February and June 2020. On March 30, 2023, the court granted plaintiffs’ motion for class certification. On April 14, 2023, FE filed a petition in the U.S. Court of Appeals for the Sixth Circuit seeking to appeal that order, which the Sixth Circuit granted on November 16, 2023. On November 30, 2023, FE filed a motion with the S.D. Ohio to stay all proceedings pending the circuit court appeal. All discovery is stayed during the pendency of the district court motion. FE believes that it is probable that it will incur a loss in connection with the resolution of this lawsuit. Given the ongoing nature and complexity of such litigation, FE cannot yet reasonably estimate a loss or range of loss. • MFS Series Trust I, et al. v. FirstEnergy Corp., et al. and Brighthouse Funds II – MFS Value Portfolio, et al. v. FirstEnergy Corp., et al. (S.D. Ohio) on December 17, 2021 and February 21, 2022, purported stockholders of FE filed complaints against FE, certain current and former officers, and certain current and former officers of EH. The complaints allege that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by issuing alleged misrepresentations or omissions regarding FE’s business and its results of operations, and seek the same relief as the In re FirstEnergy Corp. Securities Litigation described above. All discovery is stayed during the pendency of the district court motion in In re FirstEnergy Corp. Securities Litigation described above. FE believes that it is probable that it will incur losses in connection with the resolution of these lawsuits. Given the ongoing nature and complexity of such litigation, FE cannot yet reasonably estimate a loss or range of loss. • State of Ohio ex rel. Dave Yost, Ohio Attorney General v. FirstEnergy Corp., et al. and City of Cincinnati and City of Columbus v. FirstEnergy Corp. (Common Pleas Court, Franklin County, OH, all actions have been consolidated); on September 23, 2020 and October 27, 2020, the OAG and the cities of Cincinnati and Columbus, respectively, filed complaints against several parties including FE, each alleging civil violations of the Ohio Corrupt Activity Act and related claims in connection with the passage of HB 6. On January 13, 2021, the OAG filed a motion for a temporary restraining order and preliminary injunction against FirstEnergy seeking to enjoin FirstEnergy from collecting the Ohio Companies' decoupling rider. On January 31, 2021, FE reached a partial settlement with the OAG and the cities of Cincinnati and Columbus with respect to the temporary restraining order and preliminary injunction request and related issues. In connection with the partial settlement, the Ohio Companies filed an application on February 1, 2021, with the PUCO to set their respective decoupling riders (Conservation Support Rider) to zero. On February 2, 2021, the PUCO approved the application of the Ohio Companies setting the rider to zero, and no additional customer bills will include new decoupling rider charges after February 8, 2021. On August 13, 2021, new defendants were added to the complaint, including two former officers of FirstEnergy. On December 2, 2021, the cities and FE entered a stipulated dismissal with prejudice of the cities’ suit. After a stay, pending final resolution of the United States v. Larry Householder, et al. criminal proceeding described above, the litigation has resumed pursuant to an order, dated March 15, 2023. Discovery is ongoing. On July 31, 2023, FE and other defendants filed motions to dismiss in part the OAG’s section amended complaint, which the OAG opposed. On February 9, 2022, FE, acting through the SLC, agreed to a settlement term sheet to resolve the following shareholder derivative lawsuits relating to HB 6 and the now former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder that were filed in the S.D. Ohio, the N.D. Ohio, and the Ohio Court of Common Pleas, Summit County: • Gendrich v. Anderson, et al. and Sloan v. Anderson, et al. (Common Pleas Court, Summit County, Ohio, all actions have been consolidated); on July 26, 2020 and July 31, 2020, respectively, purported stockholders of FE filed shareholder derivative action lawsuits against certain current and former FE directors and officers, alleging, among other things, breaches of fiduciary duty. • Miller v. Anderson, et al. (N.D. Ohio); Bloom, et al. v. Anderson, et al.; Employees Retirement System of the City of St. Louis v. Jones, et al.; Electrical Workers Pension Fund, Local 103, I.B.E.W. v. Anderson et al.; Massachusetts Laborers Pension Fund v. Anderson et al.; The City of Philadelphia Board of Pensions and Retirement v. Anderson et al.; Atherton v. Dowling et al.; Behar v. Anderson, et al. (S.D. Ohio, all actions have been consolidated); beginning on August 7, 2020, purported stockholders of FE filed shareholder derivative actions alleging the FE Board and officers breached their fiduciary duties and committed violations of Section 14(a) of the Exchange Act. On March 11, 2022, the parties executed a stipulation and agreement of settlement, and filed a motion the same day requesting preliminary settlement approval in the S.D. Ohio, which the S.D. Ohio granted on May 9, 2022. Subsequently, following a hearing on August 4, 2022, the S.D. Ohio granted final approval of the settlement on August 23, 2022. The settlement includes a series of corporate governance enhancements and a payment to FE of $180 million, to be paid by insurance after the judgment has become final, less approximately $36 million in court-ordered attorney’s fees awarded to plaintiffs. On September 20, 2022, a purported FE stockholder filed a motion for reconsideration of the S.D. Ohio’s final settlement approval. The parties filed oppositions to that motion on October 11, 2022, and the S.D. Ohio denied that motion on May 22, 2023. On June 15, 2023, the purported FE stockholder filed an appeal in the U.S. Court of Appeals for the Sixth Circuit. If the S.D. Ohio’s final settlement approval is affirmed by the U.S. Court of Appeals for the Sixth Circuit, the settlement agreement is expected to resolve fully these shareholder derivative lawsuits. On June 2, 2022, the N.D. Ohio entered an order to show cause why the court should not appoint new plaintiffs’ counsel, and thereafter, on June 10, 2022, the parties filed a joint motion to dismiss the matter without prejudice, which the N.D. Ohio denied on July 5, 2022. On August 15, 2022, the N.D. Ohio issued an order stating its intention to appoint one group of applicants as new plaintiffs’ counsel, and on August 22, 2022, the N.D. Ohio ordered that any objections to the appointment be submitted by August 26, 2022. The parties filed their objections by that deadline, and on September 2, 2022, the applicants responded to those objections. In the meantime, on August 25, 2022, a purported FE stockholder represented by the applicants filed a motion to intervene, attaching a proposed complaint-in-intervention purporting to assert claims that the FE Board and officers breached their fiduciary duties and committed violations of Section 14(a) of the Exchange Act as well as a claim against a third party for professional negligence and malpractice. The parties filed oppositions to that motion to intervene on September 8, 2022, and the proposed intervenor's reply in support of his motion to intervene was filed on September 22, 2022. On August 24, 2022, the parties filed a joint motion to dismiss the action pending in the N.D. Ohio based upon and in light of the approval of the settlement by the S.D. Ohio. On August 30, 2022, the parties filed a joint motion to dismiss the state court action, which the court granted on September 2, 2022. On September 29, 2023, the N.D. Ohio issued a stay of the case pending the appeal in the U.S. Court of Appeals for the Sixth Circuit. In letters dated January 26, and February 22, 2021, staff of FERC's Division of Investigations notified FirstEnergy that the Division was conducting an investigation of FirstEnergy’s lobbying and governmental affairs activities concerning HB 6, and staff directed FirstEnergy to preserve and maintain all documents and information related to the same as such have been developed as part of an ongoing non-public audit being conducted by FERC's Division of Audits and Accounting. On December 30, 2022, FERC approve |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION FE and its subsidiaries are principally involved in the transmission, distribution and generation of electricity through its reportable segments, Regulated Distribution and Regulated Transmission. FirstEnergy evaluates segment performance based on earnings attributable to FE from continuing operations. The Regulated Distribution segment distributes electricity through FirstEnergy’s utility operating companies, serving approximately six million customers within 65,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and New York, and purchases power for its POLR, SOS, SSO and default service requirements in Ohio, Pennsylvania, New Jersey, and Maryland. This segment also controls 3,580 MWs of regulated electric generation capacity located primarily in West Virginia and Virginia. The segment's results reflect the costs of securing and delivering electric generation from transmission facilities to customers, including the deferral and amortization of certain related costs. The Regulated Transmission segment provides transmission infrastructure owned and operated by the Transmission Companies and certain of FirstEnergy's utilities (JCP&L, MP, PE and WP) to transmit electricity from generation sources to distribution facilities. The segment's revenues are derived from primarily forward-looking formula rates, pursuant to which the revenue requirement is updated annually based on a projected rate base and projected costs, which is subject to an annual true-up based on actual rate base and costs. The segment's results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy's transmission facilities. KATCo, which was a subsidiary of FET, became a wholly owned subsidiary of FE prior to the closing of the FET P&SA I and remains in the Regulated Transmission segment. On February 2, 2023, FE, along with FET, entered into the FET P&SA II with Brookfield and the Brookfield Guarantors, pursuant to which FE agreed to sell to Brookfield at the closing, and Brookfield agreed to purchase from FE, an incremental 30% equity interest in FET for a purchase price of $3.5 billion. The majority of the purchase price is expected to be paid in cash upon closing, and the remainder will be payable by the issuance of a promissory note, which is expected to be repaid by the end of 2024. As a result of the consummation of the transaction, Brookfield’s interest in FET will increase from 19.9% to 49.9%, while FE will retain the remaining 50.1% ownership interests of FET. The transaction is subject to customary closing conditions, including approval from the PPUC. In addition, pursuant to the FET P&SA II, FirstEnergy made the necessary filings with the applicable regulatory authorities for the PA Consolidation. The FET Minority Equity Interest Sale is expected to close by the end of the first quarter of 2024. Upon closing, FET will continue to be consolidated in FirstEnergy’s financial statements. Corporate/Other reflects corporate support and other costs not charged or attributable to the Utilities or Transmission Companies, including FE's retained Pension and OPEB assets and liabilities of former subsidiaries, interest expense on FE’s holding company debt and other investments or businesses that do not constitute an operating segment, including FEV's investment of 33-1/3% equity ownership in Global Holding. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the following table of Segment Financial Information. As of December 31, 2023, 67 MWs of electric generating capacity, representing AE Supply's OVEC capacity entitlement, was also included in Corporate/Other for segment reporting. As of December 31, 2023, Corporate/Other had approximately $7.1 billion of external FE holding company debt. 2024 Segment Changes Beginning in 2024, FirstEnergy changed its reportable segments to include Distribution, which will consist of the Ohio Companies and FE PA; Integrated, which will consist of MP, PE and JCP&L; and Stand-Alone Transmission, which will consist of FE's ownership in FET and KATCo. On January 1, 2024, WP transferred certain of its Pennsylvania-based transmission assets to KATCo. Corporate/Other will reflect corporate support and other support costs not charged or attributable to the Utilities or Transmission Companies, including FE's retained Pension and OPEB assets and liabilities of former subsidiaries, interest expense on FE's holding company debt and other investments or businesses that do not constitute an operating segment, including FEV's investment of 33-1/3% equity ownership in Global Holding. Financial information for FirstEnergy’s business segments and reconciliations to consolidated amounts is presented below: For the Years Ended December 31, (In millions) 2023 2022 2021 External revenues Regulated Distribution $ 10,810 $ 10,569 $ 9,510 Regulated Transmission 2,049 1,863 1,608 Corporate/Other 11 27 14 Reconciling Adjustments — — — Total external revenues $ 12,870 $ 12,459 $ 11,132 Internal revenues Regulated Distribution $ 228 $ 232 $ 201 Regulated Transmission 5 5 10 Corporate/Other — — — Reconciling Adjustments (233) (237) (211) Total internal revenues $ — $ — $ — Total revenues $ 12,870 $ 12,459 $ 11,132 Depreciation Regulated Distribution $ 1,021 $ 967 $ 911 Regulated Transmission 367 335 325 Corporate/Other 4 7 3 Reconciling Adjustments 69 66 63 Total depreciation $ 1,461 $ 1,375 $ 1,302 Amortization (deferral) of regulatory assets, net Regulated Distribution $ (256) $ (362) $ 260 Regulated Transmission (5) (3) 9 Corporate/Other — — — Reconciling Adjustments — — — Total amortization (deferral) of regulatory assets, net $ (261) $ (365) $ 269 DPA penalty Corporate/Other $ — $ — $ 230 Total DPA penalty $ — $ — $ 230 Equity method investment earnings Regulated Distribution $ — $ — $ — Regulated Transmission — — — Corporate/Other 175 168 31 Reconciling Adjustments — — — Total equity method investment earnings $ 175 $ 168 $ 31 Interest expense Regulated Distribution $ 618 $ 526 $ 522 Regulated Transmission 256 230 247 Corporate/Other 334 350 382 Reconciling Adjustments (84) (67) (12) Total interest expense $ 1,124 $ 1,039 $ 1,139 Income taxes (benefits) Regulated Distribution $ 167 $ 251 $ 364 Regulated Transmission 179 110 127 Corporate/Other (79) 639 (171) Reconciling Adjustments — — — Total income taxes $ 267 $ 1,000 $ 320 For the Years Ended December 31, (In millions) 2023 2022 2021 Earnings (losses) attributable to FE from continuing operations Regulated Distribution $ 740 $ 957 $ 1,288 Regulated Transmission 514 361 408 Corporate/Other (131) (912) (457) Reconciling Adjustments — — — Total earnings attributable to FE from continuing operations $ 1,123 $ 406 $ 1,239 Cash Flows From Investing Activities: Capital investments Regulated Distribution $ 1,631 $ 1,605 $ 1,437 Regulated Transmission 1,610 1,192 958 Corporate/Other 115 51 92 Reconciling Adjustments — — — Total capital investments $ 3,356 $ 2,848 $ 2,487 As of December 31, (In millions) 2023 2022 Assets Regulated Distribution $ 32,929 $ 31,749 Regulated Transmission 15,155 13,835 Corporate/Other 683 524 Reconciling Adjustments — — Total assets $ 48,767 $ 46,108 Goodwill Regulated Distribution $ 5,004 $ 5,004 Regulated Transmission 614 614 Corporate/Other — — Reconciling Adjustments — — Total goodwill $ 5,618 $ 5,618 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On March 31, 2018, the FES Debtors announced that, in order to facilitate an orderly financial restructuring, they filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code with the Bankruptcy Court. On February 27, 2020, the FES Debtors effectuated their plan, emerged from bankruptcy and FirstEnergy tendered the Bankruptcy Court approved settlement payments totaling $853 million and a $125 million tax sharing payment to the FES Debtors. The settlement was conditioned on the FES Debtors confirming and effectuating a plan of reorganization acceptable to FirstEnergy. By eliminating a significant portion of its competitive generation fleet with the deconsolidation of the FES Debtors, FirstEnergy has concluded the FES Debtors meet the criteria for discontinued operations, as this represents a significant event in management’s strategic review to exit commodity-exposed generation and transition to a fully regulated company. Income Taxes As a result of the FES Debtors’ tax return deconsolidation, FirstEnergy recognized a worthless stock deduction, of approximately $4.9 billion, net of unrecognized tax benefits of $316 million, for the remaining tax basis in the stock of the FES Debtors. Based upon completion of the IRS’s review of the 2020 federal income tax return during fourth quarter 2021, FirstEnergy recognized the full tax benefit of the worthless stock deduction of approximately $5.2 billion, or $1.1 billion on a tax-effected basis, net of valuation allowances recorded against the state tax benefit ($21 million), eliminating associated uncertain tax position reserves. Upon emergence, FirstEnergy paid the FES Debtors $125 million to settle all reconciliations under the Intercompany Tax Allocation Agreement for 2018, 2019 and 2020 tax years, including all issues regarding nondeductible interest. In conjunction with filing the 2020 consolidated federal income tax return during the third quarter of 2021, FirstEnergy computed a final federal NOL allocation between the FES Debtors and FirstEnergy consolidated that resulted in FirstEnergy recording an increase to the consolidated NOL carryforward of approximately $289 million ($61 million tax-effected). Summarized Results of Discontinued Operations Summarized results of discontinued operations for the years ended December 31, 2023, 2022, and 2021 were as follows: For the Years Ended December 31, (In millions) 2023 2022 2021 Other expense, net — — (4) Loss from discontinued operations, before tax — — (4) Income tax benefit — — (1) Loss from discontinued operations, net of tax — — (3) Income tax expense (benefit), including worthless stock deduction 21 — (47) Gain (loss) on disposal, net of tax (21) — 47 Income (loss) from discontinued operations (1) $ (21) $ — $ 44 (1) Income from discontinued operations is included in Corporate/Other. On February 27, 2020, the FES Debtors emerged from bankruptcy and were deconsolidated from FirstEnergy’s consolidated federal income tax group. The bankruptcy, emergence and deconsolidation resulted in FirstEnergy recognizing certain income tax benefits and charges, which were classified as discontinued operations. During the third quarter of 2023, FirstEnergy recognized a $21 million tax-effected charge to income tax expense as a result of identifying an out of period adjustment related to the allocation of certain deferred income tax liabilities associated with the FES Debtors and their tax return deconsolidation in 2020. This adjustment was immaterial to the 2023 and prior period financial statements. FirstEnergy's Consolidated Statements of Cash Flows combines cash flows from discontinued operations with cash flows from continuing operations within each cash flow category. The following table summarizes the major classes of cash flow items from discontinued operations for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, (In millions) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Income (loss) from discontinued operations $ (21) $ — $ 44 Loss (gain) on disposal, net of tax 21 — (47) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 1,102 | $ 406 | $ 1,283 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the SEC. FE and its subsidiaries follow GAAP and comply with the related regulations, orders, policies and practices prescribed by the SEC, FERC, and, as applicable, the PUCO, the PPUC, the MDPSC, the NYPSC, the WVPSC, the VSCC and the NJBPU. The preparation of financial statements in conformity with GAAP requires management to make periodic estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not necessarily indicative of results of operations for any future period. FE and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. |
Consolidation | FE and its subsidiaries consolidate all majority-owned subsidiaries over which they exercise control and, when applicable, entities for which they have a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation as appropriate and permitted pursuant to GAAP. As further discussed below, FE and its subsidiaries consolidate a VIE when it is determined that it is the primary beneficiary. Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but do not have a controlling financial interest, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and the percentage of FE's ownership share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income. |
Accounting for the Effects of Regulation | ACCOUNTING FOR THE EFFECTS OF REGULATION FirstEnergy’s Regulated Distribution and Regulated Transmission segments are subject to regulation that sets the prices (rates) the Utilities and the Transmission Companies are permitted to charge customers based on costs that the regulatory agencies determine are permitted to be recovered. At times, regulatory agencies permit the future recovery of costs that would be currently charged to expense by an unregulated company. The ratemaking process results in the recording of regulatory assets and liabilities based on anticipated future cash inflows and outflows. FirstEnergy reviews the probability of recovery of regulatory assets, and settlement of regulatory liabilities, at each balance sheet date and whenever new events occur. Factors that may affect probability include changes in the regulatory environment, issuance of a regulatory commission order, or passage of new legislation. Upon material changes to these factors, where applicable, FirstEnergy will record new regulatory assets or liabilities and will assess whether it is probable that currently recorded regulatory assets and liabilities will be recovered or settled in future rates. If recovery of a regulatory asset is no longer probable, FirstEnergy will write off that regulatory asset as a charge against earnings. FirstEnergy considers the entire regulatory asset balance as the unit of account for the purposes of balance sheet classification rather than the next years recovery and as such net regulatory assets and liabilities are presented in the non-current section on the FirstEnergy Consolidated Balance Sheets. See Note 13, "Regulatory Matters," of the Notes to Consolidated Financial Statements for additional information. |
Derivatives | DERIVATIVES FirstEnergy is exposed to limited financial risks resulting from fluctuating interest rates and commodity prices, including prices for electricity, coal and energy transmission. To manage the volatility related to these exposures, FirstEnergy’s Risk Policy Committee, comprised of senior management, provides general management oversight for risk management activities throughout FirstEnergy. The Risk Policy Committee is responsible for promoting the effective design and implementation of sound risk management programs and oversees compliance with corporate risk management policies and established risk management practice. FirstEnergy may use a variety of derivative instruments for risk management purposes including forward contracts, options, futures contracts and swaps. |
Equity Method Investments | EQUITY METHOD INVESTMENTS Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but do not have a controlling financial interest, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and reflected in "Investments". The percentage of FE's ownership share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income and reflected in “Other Income (Expense)”. Equity method investments are assessed for impairment annually or whenever events and changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the decline in value is considered to be other than temporary, the investment is written down to its estimated fair value, which establishes a new cost basis in the investment. |
Goodwill | GOODWILL In a business combination, the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed is recognized as goodwill. FirstEnergy evaluates goodwill for impairment annually on July 31 and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, FirstEnergy assesses qualitative factors to determine whether it is more likely than not (that is, likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying value (including goodwill). If FirstEnergy concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if FirstEnergy concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value or bypasses the qualitative assessment, then the quantitative goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. |
Inventory | INVENTORY Materials and supplies inventory primarily includes fuel inventory, emission allowances, and the distribution, transmission and generation plant materials, net of reserve for excess and obsolete inventory. Materials charged to inventory are at weighted average cost when purchased and expensed or capitalized, as appropriate, when used or installed. Fuel inventory consists primarily of coal and reagents that are consumed at MP's generation plants, and is accounted for at weighted average cost when purchased and recorded to fuel expense when consumed. Emission allowances are accounted for as inventory at cost when purchased. FirstEnergy’s emission allowance compliance obligation, principally associated with MP's generation plant operations, is accrued to fuel expense at a weighted average cost based on each month’s emissions. When emission allowances are submitted to the EPA, inventory and the compliance obligation are reduced. Due to the ENEC, fuel, emission allowances and other fuel-related expenses have no material impact on current period earnings. |
Non Controlling Interest | NONCONTROLLING INTEREST FirstEnergy maintains a controlling financial interest in certain less than wholly owned subsidiaries. As a result, FirstEnergy presents the third-party investors’ ownership portion of FirstEnergy's net income, net assets and comprehensive income as noncontrolling interest. Noncontrolling interest is included as a component of equity on the Consolidated Balance Sheets. On May 31, 2022, Brookfield and the Brookfield Guarantors acquired 19.9% of the issued and outstanding membership interests of FET. The difference between the cash consideration received, net of transaction costs of approximately $37 million, and the carrying value of the noncontrolling interest of $451 million was recorded as an increase to Other Paid-In Capital. KATCo, which was a subsidiary of FET, became a wholly owned subsidiary of FE prior to the closing of the transaction and remains in the Regulated Transmission segment. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT |
Asset Impairments | Asset Impairments FirstEnergy evaluates long-lived assets classified as held and used for impairment when events or changes in circumstances indicate the carrying value of the long-lived assets may not be recoverable. First, the estimated undiscounted future cash flows attributable to the assets is compared with the carrying value of the assets. If the carrying value is greater than the undiscounted future cash flows, an impairment charge is recognized equal to the amount the carrying value of the assets exceeds its estimated fair value. |
Asset Retirement Obligations | Asset Retirement Obligations FirstEnergy recognizes an ARO for its legal obligation to perform asset retirement activities associated with its long-lived assets. The ARO liability represents an estimate of the fair value of FirstEnergy's current obligation such that the ARO is accreted monthly to reflect the time value of money. A fair value measurement inherently involves uncertainty in the amount and timing of settlement of the liability. FirstEnergy uses an expected cash flow approach to measure the fair value of the remediation AROs, considering the expected timing of settlement of the ARO based on the expected economic useful life of associated asset and/or regulatory requirements. The fair value of an ARO is recognized in the period in which it is incurred. The associated asset retirement costs are capitalized as part of the carrying value of the long-lived asset and are depreciated over the life of the related asset. In certain circumstances, FirstEnergy has recovery of asset retirement costs and, as such, certain accretion and depreciation is offset against regulatory assets. Conditional retirement obligations associated with tangible long-lived assets are recognized at fair value in the period in which they are incurred if a reasonable estimate can be made, even though there may be uncertainty about timing or method of settlement. When settlement is conditional on a future event occurring, it is reflected in the measurement of the liability, not the timing of the liability recognition. |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Recently Issued Pronouncements - The following new authoritative accounting guidance issued by the FASB has not yet been adopted. Unless otherwise indicated, FirstEnergy is currently assessing the impact such guidance may have on its financial statements and disclosures, as well as the potential to early adopt where applicable. FirstEnergy has assessed other FASB issuances of new standards not described below based upon the current expectation that such new standards will not significantly impact FirstEnergy's financial reporting. ASU 2022-03, " Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions " (Issued in June 2022): ASU 2022-03 clarifies current guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and introduces new disclosure requirements for those equity securities subject to contractual restrictions. For FirstEnergy, the guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years, with early adoption permitted. ASU 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures " (Issued in November 2023): ASU 2023-07 enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. Disclosure requirements within ASU 2023-07 include disclosing significant segment expenses by reportable segment if they are regularly provided to the CODM and included in each reported measure of segment profit or loss. Disclosures are required on both an annual and an interim basis. For FirstEnergy, the guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-09, " Income taxes (Topic 280): Improvements to Income Tax Disclosures |
Receivable | RECEIVABLES |
Earnings Per Share of Common Stock | Basic EPS is computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted EPS of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised. Diluted EPS reflects the dilutive effect of potential common shares from share-based awards and convertible securities. The dilutive effect of outstanding share-based awards was computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of the award would be used to purchase common stock at the average market price for the period. The dilutive effect of the 2026 Convertible Notes, as further discussed in Note 11, "Capitalization" under Long-term debt and other long-term obligations, is computed using the if-converted method. |
Pension and Other Postretirement Plans | FirstEnergy provides noncontributory qualified defined benefit pension plans that cover substantially all of its employees and non-qualified pension plans that cover certain employees. The plans provide defined benefits based on years of service and compensation levels. Under the cash-balance portion of the pension plan (for employees hired on or after January 1, 2014), FirstEnergy makes contributions to eligible employee retirement accounts based on a pay credit and an interest credit. In addition, FirstEnergy provides a minimum amount of noncontributory life insurance to retired employees in addition to optional contributory insurance. Health care benefits, which include certain employee contributions, deductibles and co-payments, are also available upon retirement to certain employees, their dependents and, under certain circumstances, their survivors. FirstEnergy recognizes the expected cost of providing pension and OPEB to employees and their beneficiaries and covered dependents from the time employees are hired until they become eligible to receive those benefits. FirstEnergy also has obligations to former or inactive employees after employment, but before retirement, for disability-related benefits. On May 9, 2023, FirstEnergy announced a voluntary retirement program for eligible non-bargaining employees, known as the PEER. More than 65% of eligible employees, totaling approximately 450 employees, accepted the PEER, which included lump sum compensation equivalent to severance benefits, healthcare continuation costs and a temporary pension enhancement. Most PEER participating employees departed in 2023. The temporary pension enhancement and healthcare continuation costs are classified as special termination costs within net periodic benefit costs (credits). In addition to the PEER, FirstEnergy notified and involuntarily separated approximately 90 employees on May 9, 2023. Management expects the cost savings resulting from these initiatives to support FirstEnergy’s growth plans. FirstEnergy’s pension funding policy is based on actuarial computations using the projected unit credit method. On May 12, 2023, FirstEnergy made a $750 million voluntary cash contribution to the qualified pension plan. FirstEnergy does not currently expect to have a required contribution to the pension plan until 2028, which based on various assumptions, including an expected rate of return on assets of 8.0%, is expected to be approximately $260 million. However, FirstEnergy may elect to contribute to the pension plan voluntarily. Pension and OPEB costs are affected by employee demographics (including age, compensation levels and employment periods), the level of contributions made to the plans and earnings on plan assets. Pension and OPEB costs may also be affected by changes in key assumptions, including anticipated rates of return on plan assets, the discount rates and health care trend rates used in determining the projected benefit obligations for pension and OPEB costs. FirstEnergy uses a December 31 measurement date for its pension and OPEB plans or whenever a plan is determined to qualify for a remeasurement. The fair value of the plan assets represents the actual market value as of the measurement date. |
Share-based Compensation | Shares granted under the ICP 2020 are issued from authorized but unissued common stock. Vesting periods for stock-based awards range from less than a year, primarily due to the issuance of prorated awards to newly hired executives, to four years, with the majority of awards having a vesting period of three years. FirstEnergy also issues stock through its 401(k) savings plan and DCPD. Currently, FirstEnergy records the compensation costs for stock-based compensation awards that will be paid in stock over the vesting period based on the fair value on the grant date. FirstEnergy accounts for forfeitures as they occur. |
Income Taxes | FirstEnergy records income taxes in accordance with the liability method of accounting. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recognized for tax purposes. Investment tax credits, which were deferred when utilized, are being amortized over the recovery period of the related property. Deferred income tax liabilities related to temporary tax and accounting basis differences and tax credit carryforward items are recognized at the statutory income tax rates in effect when the liabilities are expected to be paid. Deferred tax assets are recognized based on income tax rates expected to be in effect when they are settled. |
Variable Interest Entities | FirstEnergy performs qualitative analyses based on control and economics to determine whether a variable interest classifies FirstEnergy as the primary beneficiary (a controlling financial interest) of a VIE. An enterprise has a controlling financial interest if it has both power and economic control, such that an entity has: (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. FirstEnergy consolidates a VIE when it is determined that it is the primary beneficiary. In order to evaluate contracts for consolidation treatment and entities for which FirstEnergy has an interest, FirstEnergy aggregates variable interests into categories based on similar risk characteristics and significance. Consolidated VIEs Total assets on the FirstEnergy consolidated balance sheets include approximately $11,024 million and $10,104 million of consolidated VIE assets, as of December 31, 2023 and 2022, respectively, that can only be used to settle the liabilities of the applicable VIE. Total liabilities include approximately $7,835 million and $7,573 million as of December 31, 2023 and 2022, respectively, of consolidated VIE liabilities for which the VIE's creditors do not have recourse to FirstEnergy. VIEs in which FirstEnergy is the primary beneficiary consist of the following (included in FirstEnergy’s consolidated financial statements): Securitization Companies • Ohio Securitization Companies - In June 2013, the SPEs formed by the Ohio Companies issued approximately $445 million of pass-through trust certificates supported by phase-in recovery bonds to securitize the recovery of certain all-electric customer heating discounts, fuel and purchased power regulatory assets. The phase-in recovery bonds are payable only from, and secured by, phase in recovery property owned by the SPEs. The bondholder has no recourse to the general credit of FirstEnergy or any of the Ohio Companies. Each of the Ohio Companies, as servicer of its respective SPE, manages and administers the phase in recovery property including the billing, collection and remittance of usage-based charges payable by retail electric customers. The SPEs are considered VIEs and each one is consolidated into its applicable utility. As of December 31, 2023 and 2022, $191 million and $206 million of the phase-in recovery bonds were outstanding, respectively. • MP and PE Environmental Funding Companies - The consolidated financial statements of FirstEnergy include environmental control bonds issued by two bankruptcy remote, special purpose limited liability companies that are indirect subsidiaries of MP and PE. Proceeds from the bonds were used to construct environmental control facilities. Principal and interest owed on the environmental control bonds is secured by, and payable solely from, the proceeds of the environmental control charges. Creditors of FirstEnergy, other than the limited liability company SPEs, have no recourse to any assets or revenues of the special purpose limited liability companies. As of December 31, 2023 and 2022, $218 million and $247 million of environmental control bonds were outstanding, respectively. |
Fair Value Measurement | Authoritative accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. The three levels of the fair value hierarchy and a description of the valuation techniques are as follows: Level 1 - Quoted prices for identical instruments in active market Level 2 - Quoted prices for similar instruments in active market - Quoted prices for identical or similar instruments in markets that are not active - Model-derived valuations for which all significant inputs are observable market data Models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Level 3 - Valuation inputs are unobservable and significant to the fair value measurement FirstEnergy produces a long-term power and capacity price forecast annually with periodic updates as market conditions change. When underlying prices are not observable, prices from the long-term price forecast are used to measure fair value. FTRs are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly day-ahead congestion price differences across transmission paths. FTRs are acquired by FirstEnergy in the annual, monthly and long-term PJM auctions and are initially recorded using the auction clearing price less cost. After initial recognition, FTRs' carrying values are periodically adjusted to fair value using a mark-to-model methodology, which approximates market. The primary inputs into the model, which are generally less observable than objective sources, are the most recent PJM auction clearing prices and the FTRs' remaining hours. The model calculates the fair value by multiplying the most recent auction clearing price by the remaining FTR hours less the prorated FTR cost. Significant increases or decreases in inputs in isolation may have resulted in a higher or lower fair value measurement. |
Investments | INVESTMENTS All temporary cash investments purchased with an initial maturity of three months or less are reported as cash equivalents on the Consolidated Balance Sheets at cost, which approximates their fair market value. Investments other than cash and cash equivalents include AFS debt securities and other investments. FirstEnergy has no debt securities held for trading purposes. |
Long-Term Debt and Other Long-Term Obligations | LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Regulatory assets on the Balance Sheets | The following table provides information about the composition of net regulatory assets and liabilities as of December 31, 2023 and 2022, and the changes during the year 2023: As of December 31, Net Regulatory Assets (Liabilities) by Source 2023 2022 Change (In millions) Customer payables for future income taxes $ (2,382) $ (2,463) $ 81 Spent nuclear fuel disposal costs (83) (83) — Asset removal costs (652) (675) 23 Deferred transmission costs 286 50 236 Deferred generation costs 572 235 337 Deferred distribution costs 247 164 83 Storm-related costs 799 683 116 Energy efficiency program costs 198 94 104 New Jersey societal benefit costs 79 94 (15) Vegetation management 102 63 39 Other (11) 24 (35) Net Regulatory Liabilities included on the Consolidated Balance Sheets $ (845) $ (1,814) $ 969 The following table provides information about the composition of net regulatory assets that do not earn a current return as of December 31, 2023 and 2022, of which approximately $371 million and $511 million, respectively, are currently being recovered through rates over varying periods, through 2068, depending on the nature of the deferral and the jurisdiction: Regulatory Assets by Source Not Earning a As of December 31, Current Return 2023 2022 Change (In millions) Deferred transmission costs $ 6 $ 8 $ (2) Deferred generation costs 432 262 170 Deferred distribution costs 68 27 41 Storm-related costs 602 568 34 Pandemic-related costs 35 45 (10) Vegetation management 21 52 (31) Other 33 35 (2) Regulatory Assets Not Earning a Current Return $ 1,197 $ 997 $ 200 |
Schedule of Goodwill | The following table presents goodwill by reporting unit as of December 31, 2023 and 2022: (In millions) Regulated Distribution Regulated Transmission Consolidated Goodwill $ 5,004 $ 614 $ 5,618 |
Schedule of Property, plant and equipment balances | Property, plant and equipment balances by segment as of December 31, 2023 and 2022, were as follows: December 31, 2023 Property, Plant and Equipment In Service (1) Accum. Depr. (2) Net Plant CWIP Total (In millions) Regulated Distribution $ 33,453 $ (10,039) $ 23,414 $ 860 $ 24,274 Regulated Transmission 15,538 (3,178) 12,360 1,208 13,568 Corporate/Other 1,116 (594) 522 48 570 Total $ 50,107 $ (13,811) $ 36,296 $ 2,116 $ 38,412 December 31, 2022 Property, Plant and Equipment In Service (1) Accum. Depr. (2) Net Plant CWIP Total (In millions) Regulated Distribution $ 32,257 $ (9,636) $ 22,621 $ 828 $ 23,449 Regulated Transmission 14,468 (2,978) 11,490 818 12,308 Corporate/Other 1,125 (644) 481 47 528 Total $ 47,850 $ (13,258) $ 34,592 $ 1,693 $ 36,285 (1) Includes finance leases of $68 million and $105 million as of December 31, 2023 and 2022, respectively. (2) Includes |
Schedule of Changes to the asset retirement obligations | The following table summarizes the changes to the ARO balances during 2023 and 2022: ARO Reconciliation (In millions) Balance, January 1, 2022 $ 179 Changes in timing and amount of estimated cash flows (2) Liabilities settled (6) Accretion 14 Balance, December 31, 2022 $ 185 Changes in timing and amount of estimated cash flows 10 Liabilities settled (2) Accretion 16 Balance, December 31, 2023 $ 209 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following represents a disaggregation of revenue from contracts with customers for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, (In millions) 2023 2022 2021 Regulated Distribution Retail generation and distribution services (1) Residential $ 6,583 $ 6,180 $ 5,713 Commercial 2,600 2,499 2,284 Industrial 1,298 1,338 1,091 Street lighting/Other 105 85 75 Wholesale 228 494 362 Other revenue from contracts with customers (2) 113 104 119 Total revenues from contracts with customers 10,927 10,700 9,644 Alternative Revenue Program (3) — — (27) Other revenue unrelated to contracts with customers (4) 111 101 94 Total Regulated Distribution $ 11,038 $ 10,801 $ 9,711 Regulated Transmission ATSI $ 968 $ 912 $ 799 TrAIL 279 270 233 MAIT 395 340 288 JCP&L 205 203 164 MP, PE and WP 202 138 124 Total revenues from contracts with customers 2,049 1,863 1,608 Other revenue unrelated to contracts with customers 5 5 10 Total Regulated Transmission $ 2,054 $ 1,868 $ 1,618 Corporate/Other and Reconciling Adjustments (5) Wholesale $ 11 $ 27 $ 14 Retail generation and distribution services (5) (181) (186) (154) Other revenue unrelated to contracts with customers (5) (52) (51) (57) Total Corporate/Other and Reconciling $ (222) $ (210) $ (197) FirstEnergy Total Revenues $ 12,870 $ 12,459 $ 11,132 (1) Includes approximately $58 million and $38 million as of December 31, 2022 and 2021, respectively, of customer refunds associated with the Ohio Stipulation that became effective in December 2021. See Note 13, “Regulatory Matters,” for further discussion. (2) Primarily includes amounts collected from customers to administer and repay securitization bonds and pole attachment revenue. (3) Reflects amount the Ohio Companies refunded to customers that was previously collected under decoupling mechanisms, with interest. (4) Primarily includes late payment charges and revenue from derivatives. (5) |
Schedule of Receivables from customers | Billed and unbilled customer receivables as of December 31, 2023 and 2022, are included below. As of December 31, Customer Receivables 2023 2022 (In millions) Billed (1) $ 717 $ 674 Unbilled 665 781 1,382 1,455 Less: Uncollectible Reserve 64 137 Total Customer Receivables $ 1,318 $ 1,318 (1) Includes approximately $288 million and $290 million as of December 31, 2023 and 2022, respectively, that are past due by greater than 30 days. |
Schedule of Activity in the allowance for uncollectible accounts on customer receivables | Activity in the allowance for uncollectible accounts on receivables for the years ended December 31, 2023, 2022 and 2021 are as follows: (In millions) 2023 2022 2021 Customer Receivables: Beginning of year balance $ 137 $ 159 $ 164 Charged to income (1) 8 59 54 Charged to other accounts (2) 34 62 42 Write-offs (115) (143) (101) End of year balance $ 64 $ 137 $ 159 Other Receivables: Beginning of year balance $ 11 $ 10 $ 26 Charged to income 7 4 3 Charged to other accounts (2) (1) 4 3 Write-offs (2) (7) (22) End of year balance $ 15 $ 11 $ 10 (1) Customer receivable amounts charged to income for the years ended December 31, 2023, 2022, and 2021, include approximately $(15) million, $11 million, and $12 million, respectively, deferred for future recovery (refund). (2) Represents recoveries and reinstatements of accounts previously written off for uncollectible accounts. |
EARNINGS PER SHARE OF COMMON _2
EARNINGS PER SHARE OF COMMON STOCK (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted EPS Attributable to FE | The following table reconciles basic and diluted EPS attributable to FE: For the Years Ended December 31, Reconciliation of Basic and Diluted EPS of Common Stock 2023 2022 2021 (In millions, except per share amounts) Earnings Attributable to FE - continuing operations $ 1,123 $ 406 $ 1,239 Earnings Attributable to FE - discontinued operations, net of tax (21) — 44 Earnings Attributable to FE $ 1,102 $ 406 $ 1,283 Share Count information: Weighted average number of basic shares outstanding 573 571 545 Assumed exercise of dilutive share-based awards 1 1 1 Weighted average number of diluted shares outstanding 574 572 546 EPS Attributable to FE: Income from continuing operations, basic $ 1.96 $ 0.71 $ 2.27 Discontinued operations, basic (0.04) — 0.08 Basic EPS $ 1.92 $ 0.71 $ 2.35 Income from continuing operations, diluted $ 1.96 $ 0.71 $ 2.27 Discontinued operations, diluted (0.04) — 0.08 Diluted EPS $ 1.92 $ 0.71 $ 2.35 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The changes in AOCI for the years ended December 31, 2023, 2022 and 2021, for FirstEnergy are shown in the following table: 2023 2022 2021 (In millions) Gains & Losses on Cash Flow Hedges (1) AOCI Balance, January 1, $ — $ (7) $ (8) Amounts reclassified from AOCI 2 9 1 Income tax on other comprehensive income — 2 — Other comprehensive income, net of tax 2 7 1 AOCI Balance, December 31, $ 2 $ — $ (7) Defined Benefit Pension & OPEB Plans (2)(3) AOCI Balance, January 1, $ (14) $ (8) $ 3 Amounts reclassified from AOCI (6) (9) (14) Income tax benefits on other comprehensive loss (1) (3) (3) Other comprehensive loss, net of tax (5) (6) (11) AOCI Balance, December 31, $ (19) $ (14) $ (8) Total FirstEnergy Corp. AOCI AOCI Balance, January 1, $ (14) $ (15) $ (5) Other comprehensive income (loss), net of tax (3) 1 (10) AOCI Balance, December 31, $ (17) $ (14) $ (15) (1) Relates to previous cash flow hedges used to hedge fixed rate long-term debt securities prior to their issuance. Amounts reclassified from AOCI affects Interest expense line item in Consolidated Statements of Income. (2) Amortization of prior service costs are reported within Miscellaneous income, net within Other Income (Expense) on FirstEnergy’s Consolidated Statements of Income. Components are included in the computation of net periodic cost (credits), see Note 5, "Pension and Other Postemployment Benefits," for additional details. (3) Income tax (benefits) on other comprehensive income (loss) affects Income taxes line item in Consolidated Statements of Income. |
PENSION AND OTHER POST-EMPLOY_2
PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost | Actuarial Assumptions Pension OPEB 2023 (2) 2022 2021 2023 (2) 2022 2021 Assumptions Related to Benefit Obligations: Discount rate 5.05 % 5.23 % 3.02 % 4.97 % 5.16 % 2.84 % Rate of compensation increase 4.30 % 4.30 % 4.10 % N/A N/A N/A Cash balance weighted average interest crediting rate 4.94 % 4.04 % 2.57 % N/A N/A N/A Assumptions Related to Benefit Costs: (1) Effective rate for interest on benefit obligations 5.10% / 4.80% 2.44 % 1.94 % 5.06 % 2.18 % 1.66 % Effective rate for service costs 5.34% / 5.11% 3.28 % 3.10 % 5.41 % 3.41 % 3.03 % Effective rate for interest on service costs 5.22% / 4.94% 2.96 % 2.58 % 5.33 % 3.24 % 2.83 % Expected return on plan assets 8.00 % 7.50 % 7.50 % 7.00 % 7.50 % 7.50 % Rate of compensation increase 4.30 % 4.10 % 4.10 % N/A N/A N/A Assumed Health Care Cost Trend Rates: Health care cost trend rate assumed (pre/post-Medicare) N/A N/A N/A 7.00%- 6.50% 6.00%- 5.50% 5.75%- 5.25% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate N/A N/A N/A 2033 2029 2028 (1) Excludes impact of pension and OPEB mark-to-market adjustments. (2) |
Schedule of Fair Value of Plan Assets Explanatory | Pension and OPEB Returns 2023 2022 2021 Actual gains or (losses) on plan assets - $ millions $ 751 $ (1,830) $ 689 Actual gains or (losses) on plan assets - % 11.2 % (19.1) % 7.9 % Expected return on plan assets - $ millions $ 601 $ 696 $ 688 Expected return on plan assets - % 8.00% for pension 7.00% for OPEB 7.50 % 7.50 % |
Schedule of Components of Net Periodic Benefit Costs | Components of Net Periodic Benefit Costs (Credits) for the Years Ended December 31, Pension OPEB 2023 2022 2021 2023 2022 2021 (In millions) Service cost (1) $ 139 $ 184 $ 195 $ 2 $ 3 $ 4 Interest cost 428 273 226 21 11 11 Expected return on plan assets (570) (657) (652) (31) (39) (36) Amortization of prior service costs (credits) 2 2 3 (8) (11) (17) Special termination benefits (2) 21 — — 8 — — Pension & OPEB mark-to-market 108 (98) (253) (30) 26 (129) Net periodic benefit costs (credits) $ 128 $ (296) $ (481) $ (38) $ (10) $ (167) (1) Includes amounts capitalized. (2) |
Schedule of Obligations and Funded Status | Pension OPEB Obligations/Funded Status - Qualified and Non-Qualified Plans 2023 2022 2023 2022 (In millions) Change in benefit obligation: Benefit obligation as of January 1 $ 8,828 $ 11,479 $ 439 $ 549 Service cost 139 184 2 3 Interest cost 428 273 21 11 Plan participants’ contributions — — 4 3 Special termination benefits 21 — 8 — Medicare retiree drug subsidy — — — 1 Lift-out transaction (719) — — — Actuarial loss (gain) 256 (2,515) 8 (83) Benefits paid (590) (593) (41) (45) Benefit obligation as of December 31 $ 8,363 $ 8,828 $ 441 $ 439 Change in fair value of plan assets: Fair value of plan assets as of January 1 $ 6,693 $ 9,020 $ 460 $ 548 Actual return on plan assets 682 (1,760) 69 (70) Lift-out transaction (683) — — — Company contributions 777 26 24 24 Plan participants’ contributions — — 4 3 Benefits paid (590) (593) (41) (45) Fair value of plan assets as of December 31 $ 6,879 $ 6,693 $ 516 $ 460 Funded Status: Qualified plan $ (1,090) $ (1,734) $ — $ — Non-qualified plans (394) (401) — — Funded Status (Net liability as of December 31) $ (1,484) $ (2,135) $ 75 $ 21 Accumulated benefit obligation $ 7,324 $ 8,500 $ — $ — Amounts Recognized in AOCI: Prior service cost (credit) $ 4 $ 6 $ (1) $ (10) |
Schedule of Target asset allocations for pension and OPEB portfolio | FirstEnergy’s target asset allocations for its pension and OPEB trust portfolios for 2023 were as follows : Target Asset Allocations Pension OPEB Equities 30 % 50 % Fixed income 28.5 % 50 % Alternative investments 5 % — % Real estate 10 % — % Private - equity and debt funds 20 % — % Cash and derivatives 6.5 % — % 100 % 100 % |
Schedule of Estimated Future Benefit Payments | Taking into account estimated employee future service, FirstEnergy expects to make the following benefit payments from plan assets and other payments, net of participant contribution. OPEB Pension Benefit Payments Subsidy Receipts (In millions) 2024 $ 554 $ 49 $ (1) 2025 562 41 (1) 2026 564 40 — 2027 569 39 — 2028 571 37 — Years 2029-2033 2,877 164 (2) |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Pension investments measured at fair value | The following tables set forth pension financial assets that are accounted for at fair value by level within the fair value hierarchy. See Note 10, "Fair Value Measurements," for a description of each level of the fair value hierarchy. There were no significant transfers between levels during 2023 and 2022. December 31, 2023 Asset Allocation Level 1 Level 2 Level 3 Total (In millions) Cash and short-term securities $ — $ 755 $ — $ 755 11 % Public equity 1,811 4 — 1,815 26 % Fixed income — 1,784 — 1,784 26 % Derivatives 2 37 — 39 — % Total (1) $ 1,813 $ 2,580 $ — $ 4,393 63 % Private - equity and debt funds (2) 1,296 19 % Insurance-linked securities (2) 107 2 % Hedge funds (2) 410 6 % Real estate funds (2) 721 10 % Total Investments $ 6,927 100 % (1) Excludes $(48) million as of December 31, 2023, of receivables, payables, taxes, cash collateral for derivatives and accrued income associated with financial instruments reflected within the fair value table. (2) NAV used as a practical expedient to approximate fair value. December 31, 2022 Asset Allocation Level 1 Level 2 Level 3 Total (In millions) Cash and short-term securities $ — $ 714 $ — $ 714 11 % Public equity 1,871 216 — 2,087 33 % Fixed income — 942 — 942 15 % Derivatives (38) 2 — (36) (1) % Total (1) $ 1,833 $ 1,874 $ — $ 3,707 58 % Private - equity and debt funds (2) 1,061 17 % Insurance-linked securities (2) 159 3 % Hedge funds (2) 563 9 % Real estate funds (2) 853 13 % Total Investments $ 6,343 100 % (1) Excludes $350 million as of December 31, 2022, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. (2) NAV used as a practical expedient to approximate fair value. |
OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Pension investments measured at fair value | As of December 31, 2023, and 2022, the OPEB trust investments measured at fair value were as follows: December 31, 2023 Asset Allocation Level 1 Level 2 Level 3 Total (In millions) Cash and short-term securities $ — $ 100 $ — $ 100 19 % Public equity 258 — — 258 50 % Fixed income — 158 — 158 31 % Total $ 258 $ 258 $ — $ 516 100 % December 31, 2022 Asset Allocation Level 1 Level 2 Level 3 Total (In millions) Cash and short-term securities $ — $ 87 $ — $ 87 19 % Public equity 217 — — 217 47 % Fixed income: — 157 — 157 34 % Total (1) $ 217 $ 244 $ — $ 461 100 % (1) Excludes $(1) million as of December 31, 2022, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation costs and the amount of stock-based compensation costs capitalized related to FirstEnergy plans for the years ended December 31, 2023, 2022 and 2021, are included in the following tables: For the Years Ended December 31, Stock-based Compensation Plan 2023 2022 2021 (In millions) Restricted stock units $ 39 $ 55 $ 40 Restricted stock 5 3 2 401(k) savings plan 38 36 35 EDCP & DCPD 1 7 13 Total $ 83 $ 101 $ 90 Stock-based compensation costs, net of amounts capitalized $ 44 $ 54 $ 43 |
Schedule of Nonvested Restricted Stock Units Activity | Restricted stock unit activity for the year ended December 31, 2023, was as follows: Restricted Stock Unit Activity Shares (in millions) Weighted-Average Grant Date Fair Value (per share) Nonvested as of January 1, 2023 1.9 $ 41.57 Granted in 2023 1.4 38.36 Forfeited in 2023 (0.2) 39.32 Vested in 2023 (1) (0.6) 39.38 Nonvested as of December 31, 2023 2.5 $ 38.82 (1) Restricted Stock Activity Shares (in millions) Weighted-Average Grant Date Fair Value (per share) Nonvested as of January 1, 2023 0.20 $ 42.35 Granted in 2023 0.30 37.42 Forfeited in 2023 (0.02) 36.86 Vested in 2023 (0.02) 39.45 Nonvested as of December 31, 2023 0.46 $ 39.57 |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for income taxes (benefits) | INCOME TAXES ON INCOME FROM CONTINUING OPERATIONS For the Years Ended December 31, 2023 2022 2021 (In millions) Currently payable - Federal (1) $ 14 $ — $ 2 State 1 11 21 15 11 23 Deferred, net - Federal (2) 279 946 174 State (24) 47 127 255 993 301 Investment tax credit amortization (3) (4) (4) Total income taxes on income from continuing operations $ 267 $ 1,000 $ 320 (1) Excludes $2 million of federal tax benefit associated with discontinued operations for the year ended December 31, 2021. (2) Excludes $21 million of federal tax expense and $46 million of federal tax benefits associated with discontinued operations for the years ended December 31, 2023 and 2021, respectively. |
Schedule of Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes | The following table provides a reconciliation of federal income tax expense at the federal statutory rate to the total income taxes on income from continuing operations for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, 2023 2022 2021 (In millions) Income from continuing operations, before income taxes $ 1,464 $ 1,439 $ 1,559 Federal income tax expense at the 21% statutory rate $ 307 $ 302 $ 327 Increases (reductions) in taxes resulting from- State and municipal income taxes, net of federal tax benefit 80 56 122 AFUDC equity and other flow-through (30) (26) (29) Amortization of investment tax credits (3) (4) (4) Deferred gain on 19.9% FET minority interest sale 58 752 — Federal tax credits claimed (3) (3) (34) Nondeductible DPA monetary penalty — — 52 Excess deferred tax amortization due to the Tax Act (46) (51) (54) Uncertain tax positions 41 2 (82) Valuation allowances (146) (47) 17 Other, net 9 19 5 Total income taxes on income from continuing operations $ 267 $ 1,000 $ 320 Effective income tax rate (continuing operations) 18.2 % 69.5 % 20.5 % |
Schedule of Accumulated deferred income taxes | Accumulated deferred income taxes as of December 31, 2023 and 2022, are as follows: As of December 31, 2023 2022 (In millions) Property basis differences $ 5,787 $ 5,528 Pension and OPEB (331) (496) Regulatory asset/liability 647 432 Deferred compensation (153) (149) Deferred gain on 19.9% FET minority interest sale 810 752 Loss carryforwards and tax credits (2,192) (2,073) Valuation reserve 226 440 Other (264) (232) Net accumulated deferred income tax liability $ 4,530 $ 4,202 |
Schedule of Pre-tax net operating loss expiration period | Expiration Period State Local (In millions) 2024-2028 $ 2,403 $ 5,269 2029-2033 1,415 — 2034-2038 1,079 — 2039-2043 823 — Indefinite 2,469 — $ 8,189 $ 5,269 |
Schedule of Valuation allowance roll forward | The following table summarizes the changes in valuation allowances on federal, state, and local deferred tax assets related to business interest expense carryforwards and employee compensation deduction limitations under section 162(m), in addition to state and local NOLs discussed above for the years ended December 31, 2023, 2022 and 2021: (In millions) 2023 2022 2021 Beginning of year balance $ 440 $ 484 $ 496 Charged to income (214) (44) (12) Charged to other accounts — — — Write-offs — — — End of year balance $ 226 $ 440 $ 484 |
Schedule of Changes in unrecognized tax benefits | The following table summarizes the changes (gross) in uncertain tax positions for the years ended December 31, 2023, 2022 and 2021: (In millions) Balance, January 1, 2021 $ 139 Current year increases 15 Prior year decreases (8) Effectively settled with taxing authorities (97) Decrease for lapse in statute (2) Balance, December 31, 2021 $ 47 Prior year increases 2 Decrease for lapse in statute (7) Balance, December 31, 2022 $ 42 Prior years increases 88 Effectively settled with taxing authorities (24) Decrease for lapse in statute (1) Balance, December 31, 2023 $ 105 |
Schedule of Details of general taxes | General tax expense for the years ended December 31, 2023, 2022 and 2021, recognized in continuing operations is summarized as follows: For the Years Ended December 31, 2023 2022 2021 (In millions) kWh excise $ 185 $ 191 $ 189 State gross receipts 235 219 190 Real and personal property 615 596 571 Social security and unemployment 113 105 103 Other 16 18 20 Total general taxes $ 1,164 $ 1,129 $ 1,073 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: For the Year Ended December 31, 2023 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 60 $ 5 $ 14 $ 79 Finance lease costs: Amortization of right-of-use assets 4 2 2 8 Interest on lease liabilities — 5 — 5 Total finance lease cost 4 7 2 13 Total lease cost $ 64 $ 12 $ 16 $ 92 (1) Includes $27 million of short-term lease costs. For the Year Ended December 31, 2022 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 50 $ 8 $ 15 $ 73 Finance lease costs: Amortization of right-of-use assets 10 1 2 13 Interest on lease liabilities — 3 — 3 Total finance lease cost 10 4 2 16 Total lease cost $ 60 $ 12 $ 17 $ 89 (1) Includes $19 million of short-term lease costs. For the Year Ended December 31, 2021 (In millions) Vehicles Buildings Other Total Operating lease costs (1) $ 44 $ 9 $ 18 $ 71 Finance lease costs: Amortization of right-of-use assets 12 1 1 14 Interest on lease liabilities 1 3 — 4 Total finance lease cost 13 4 1 18 Total lease cost $ 57 $ 13 $ 19 $ 89 (1) Includes $21 million of short-term lease costs. Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, (In millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 54 $ 56 $ 64 Operating cash flows from finance leases 3 3 4 Finance cash flows from finance leases 8 12 13 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 13 $ 26 $ 60 Finance leases — — 5 Maturities of lease liabilities as of December 31, 2023, were as follows: (In millions) Operating Leases Finance Leases Total 2024 $ 54 $ 4 $ 58 2025 47 4 51 2026 43 4 47 2027 37 3 40 2028 33 4 37 Thereafter 47 — 47 Total lease payments (1) 261 19 280 Less imputed interest 35 5 40 Total net present value $ 226 $ 14 $ 240 (1) Operating lease payments for certain leases are offset by sublease receipts of $8 million over 9 years. |
Schedule of Assets and Liabilities, Lessee | Lease terms and discount rates were as follows: As of December 31, 2023 2022 2021 Weighted-average remaining lease terms (years) Operating leases 5.93 7.30 7.97 Finance leases 12.26 11.33 8.12 Weighted-average discount rate (1) Operating leases 4.51 % 4.22 % 4.16 % Finance leases 14.73 % 14.77 % 12.22 % (1) When an implicit rate is not readily determinable, an incremental borrowing rate is utilized, determining the present value of lease payments. The rate is determined based on expected term and information available at the commencement date. Supplemental balance sheet information related to leases was as follows: As of December 31, (In millions) Financial Statement Line Item 2023 2022 Assets Operating lease (1) Deferred charges and other assets $ 205 $ 262 Finance lease (2) Property, plant and equipment 35 45 Total leased assets $ 240 $ 307 Liabilities Current: Operating Other current liabilities $ 47 $ 48 Finance Currently payable long-term debt 3 6 Noncurrent: Operating Other noncurrent liabilities 179 247 Finance Long-term debt and other long-term obligations 11 17 Total leased liabilities $ 240 $ 318 (1) Operating lease assets are recorded net of accumulated amortization of $139 million and $114 million as of December 31, 2023 and 2022, respectively. (2) |
Schedule of Maturity of Operating Lease Liabilities | Maturities of lease liabilities as of December 31, 2023, were as follows: (In millions) Operating Leases Finance Leases Total 2024 $ 54 $ 4 $ 58 2025 47 4 51 2026 43 4 47 2027 37 3 40 2028 33 4 37 Thereafter 47 — 47 Total lease payments (1) 261 19 280 Less imputed interest 35 5 40 Total net present value $ 226 $ 14 $ 240 (1) Operating lease payments for certain leases are offset by sublease receipts of $8 million over 9 years. |
Schedule of Maturity of Finance Lease Liabilities | Maturities of lease liabilities as of December 31, 2023, were as follows: (In millions) Operating Leases Finance Leases Total 2024 $ 54 $ 4 $ 58 2025 47 4 51 2026 43 4 47 2027 37 3 40 2028 33 4 37 Thereafter 47 — 47 Total lease payments (1) 261 19 280 Less imputed interest 35 5 40 Total net present value $ 226 $ 14 $ 240 (1) Operating lease payments for certain leases are offset by sublease receipts of $8 million over 9 years. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Variable Interest Entities | The assets of FET can only be used to settle its obligations, and creditors of FET do not have recourse to the general credit of FirstEnergy. Assets December 31, December 31, Cash and cash equivalents $ 76 $ 77 Receivables 88 79 Materials and supplies, at average cost 1 1 Prepaid taxes and other 23 23 Total current assets 188 180 Property, plant and equipment, net 10,227 9,365 Goodwill 224 224 Investments 19 20 Regulatory assets 16 1 Other 310 273 Total noncurrent assets 10,796 9,883 TOTAL ASSETS $ 10,984 $ 10,063 Liabilities December 31, December 31, Accounts payable 2 — Accrued interest 63 58 Accrued taxes 262 278 Other 14 7 Total current liabilities 341 343 Long-term debt and other long-term obligations 5,275 4,949 Accumulated deferred income taxes 1,218 1,129 Regulatory liabilities 307 443 Other 285 256 Total noncurrent liabilities 7,085 6,777 TOTAL LIABILITIES $ 7,426 $ 7,120 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on Recurring Basis | The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (In millions) Derivative assets FTRs (1) $ — $ — $ 4 $ 4 $ — $ — $ 11 $ 11 Equity securities 2 — — 2 2 — — 2 U.S. state debt securities — 275 — 275 — 266 — 266 Cash, cash equivalents and restricted cash (2) 179 — — 179 206 — — 206 Other (3) — 40 — 40 — 40 — 40 Total assets $ 181 $ 315 $ 4 $ 500 $ 208 $ 306 $ 11 $ 525 Liabilities Derivative liabilities FTRs (1) $ — $ — $ (1) $ (1) $ — $ — $ (2) $ (2) Total liabilities $ — $ — $ (1) $ (1) $ — $ — $ (2) $ (2) Net assets (liabilities) $ 181 $ 315 $ 3 $ 499 $ 208 $ 306 $ 9 $ 523 (1) Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings. (2) Restricted cash of $42 million and $46 million as of December 31, 2023 and 2022, respectively, primarily relates to cash collected from MP, PE and the Ohio Companies' customers that is specifically used to service debt of their respective funding companies. See Note 11, Capitalization for additional information. (3) Primarily consists of short-term investments. |
Schedule of Amortized Cost Basis, Unrealized Gains and Losses and Fair Values of Investments in Available-for-sale Securities | The following table summarizes the amortized cost basis, unrealized gains, unrealized losses and fair values of investments held in nuclear fuel disposal trusts as of December 31, 2023 and 2022: December 31, 2023 (1) December 31, 2022 (2) Cost Basis Unrealized Gains Unrealized Losses Fair Value Cost Basis Unrealized Gains Unrealized Losses Fair Value (In millions) Debt securities $ 301 $ 1 $ (27) $ 275 $ 294 $ — $ (28) $ 266 (1) Excludes short-term cash investments of $6 million. (2) Excludes short-term cash investments of $5 million. |
Schedule of Proceeds from the Sale of Investments in Available-for-sale Debt Securities | Proceeds from the sale of investments in AFS debt securities, realized gains and losses on those sales and interest and dividend income for the years ended December 31, 2023, 2022 and 2021, were as follows: For the Years Ended December 31, 2023 2022 2021 (In millions) Sale Proceeds $ 38 $ 48 $ 48 Realized Gains — 8 — Realized Losses (3) (13) (3) Interest and Dividend Income 12 11 11 |
Schedule of Fair Value and Related Carrying Amounts of Long-term Debt | The following table provides the approximate fair value and related carrying amounts of long-term debt, which excludes finance lease obligations and net unamortized debt issuance costs, unamortized fair value adjustments, premiums and discounts as of December 31, 2023 and 2022: As of December 31, 2023 2022 (In millions) Carrying Value $ 24,254 $ 21,641 Fair Value 23,003 19,784 |
CAPITALIZATION (Tables)
CAPITALIZATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Capitalization, Long-Term Debt and Equity [Abstract] | |
Schedule of Preferred stock and preference stock authorizations | FirstEnergy and the Utilities were authorized to issue preferred stock and preference stock as of December 31, 2023, as follows: Preferred Stock Preference Stock Shares Authorized Par Value Shares Authorized Par Value FE 5,000,000 $ 100 OE 6,000,000 $ 100 8,000,000 no par OE 8,000,000 $ 25 Penn (1) 1,200,000 $ 100 CEI 4,000,000 no par 3,000,000 no par TE 3,000,000 $ 100 5,000,000 $ 25 TE 12,000,000 $ 25 JCP&L 15,600,000 no par ME (1) 10,000,000 no par PN (1) 11,435,000 no par MP 940,000 $ 100 PE 10,000,000 $ 0.01 WP (1) 32,000,000 no par (1) On January 1, 2024, FirstEnergy consolidated the Pennsylvania Companies into FE PA, making it a new, single operating entity. FE PA has not been authorized to issue preferred stock or preference stock. |
Schedule of Outstanding consolidated long-term debt and other long-term obligations | The following tables present outstanding long-term debt and finance lease obligations for FirstEnergy as of December 31, 2023 and 2022: As of December 31, 2023 As of December 31, Maturity Date Interest Rate 2023 2022 (In millions) FMBs and secured notes - fixed rate 2024-2059 2.650% - 8.250% $ 5,709 $ 5,153 Unsecured notes - fixed rate 2024-2050 1.600% - 7.375% 18,545 16,488 Finance lease obligations 14 23 Unamortized debt discounts (9) (5) Unamortized debt issuance costs (127) (110) Unamortized fair value adjustments 3 5 Currently payable long-term debt (1,250) (351) Total long-term debt and other long-term obligations $ 22,885 $ 21,203 FirstEnergy had the following redemptions and issuances during the twelve months ended December 31, 2023: Company Type Redemption/Issuance Date Interest Rate Maturity Amount Description Redemptions (1) ME Unsecured Notes March, 2023 3.50% 2023 $300 ME redeemed unsecured notes that became due. FE Unsecured Notes May, 2023 7.38% 2031 $194 FE repurchased approximately $194 million of the principal amount of its 2031 Notes through the open market for $228 million including a premium of approximately $34 million ($27 million after-tax). In addition, FE recognized approximately $2 million ($1 million after-tax) of deferred cash flow hedge losses associated with the FE debt redemptions. Issuances WP FMBs January, 2023 5.29% 2033 $50 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. MAIT Unsecured Notes February, 2023 5.39% 2033 $175 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. ME Unsecured Notes March, 2023 5.20% 2028 $425 Proceeds were used to repay short-term borrowings, including borrowings incurred to repay, at maturity, the $300 million aggregate principal amount of ME's 3.50% unsecured notes due March 15, 2023, to finance capital expenditures and for other general corporate purposes. PN Unsecured Notes March, 2023 5.15% 2026 $300 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. ATSI Unsecured Notes May, 2023 5.13% 2033 $150 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. FE Unsecured Convertible Notes May, 2023 4.00% 2026 $1,500 Proceeds were used to repay short-term borrowings, to repurchase a portion of its 2031 Notes, to fund the qualified pension plan and for other general corporate purposes. PE FMBs September, 2023 5.64% 2028 $100 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. PE FMBs September, 2023 5.73% 2030 $50 Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes. MP FMBs September, 2023 5.85% 2034 $400 Proceeds are to be used for repaying short-term and long-term debt, including MP’s $400 million 4.10% FMBs due April 15, 2024, to finance capital expenditures and for other general corporate purposes. (1) Excludes principal payments on securitized bonds. |
Schedule of Maturities of Long-term Debt | The following table presents scheduled debt repayments or debt that has been noticed for redemption for outstanding long-term debt, excluding finance leases, fair value purchase accounting adjustments and unamortized debt discounts and premiums, for the next five years as of December 31, 2023. (In millions) 2024 2025 2026 2027 2028 Scheduled debt repayments $1,246 $2,023 $2,876 $2,003 $2,453 |
SHORT-TERM BORROWINGS AND BAN_2
SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Rate | Average Interest Rates Regulated Companies’ Money Pool Unregulated Companies’ Money Pool 2023 2022 2023 2022 For the Years Ended December 31, 6.30 % 2.27 % 6.01 % 2.14 % |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Distribution Rate Orders | The following table summarizes the key terms of base distribution rate orders in effect for the Utilities as of December 31, 2023: Company Rates Effective For Customers Allowed Debt/Equity Allowed ROE CEI May 2009 51% /49% 10.5% ME (1) January 2017 48.8% / 51.2% Settled (2) MP February 2015 54% / 46% Settled (2) JCP&L November 2021 48.6% / 51.4% 9.6% OE January 2009 51% /49% 10.5% PE (West Virginia) February 2015 51% / 49% Settled (2) PE (Maryland) October 2023 47% / 53% 9.5% PN (1) January 2017 47.4% /52.6% Settled (2) Penn (1) January 2017 49.9% / 50.1% Settled (2) TE January 2009 51% / 49% 10.5% WP (1) January 2017 49.7% / 50.3% Settled (2) (1) Reflects filed debt/equity as final settlement/orders do not specifically include capital structure. Additionally, on January 1, 2024, FirstEnergy consolidated the Pennsylvania Companies into FE PA, making it a new, single operating entity, and will operate under the rate districts of the former Pennsylvania Companies. (2) Commission-approved settlement agreements did not disclose ROE rates. The following table summarizes the key terms of rate orders in effect for transmission customer billings for FirstEnergy's transmission owner entities as of December 31, 2023: Company Rates Effective Capital Structure Allowed ROE ATSI January 2015 Actual (13-month average) 10.38% JCP&L January 2020 Actual (13-month average) 10.20% MP January 2021 Lower of Actual (13-month average) or 56% 10.45% PE January 2021 Lower of Actual (13-month average) or 56% 10.45% WP (1) January 2021 Lower of Actual (13-month average) or 56% 10.45% MAIT July 2017 Lower of Actual (13-month average) or 60% 10.3% TrAIL July 2008 Actual (year-end) 12.7% (2) / 11.7% (3) (1) On January 1, 2024, WP transferred certain of its Pennsylvania-based transmission assets to KATCo (2) TrAIL the Line and Black Oak Static Var Compensator (3) All other projects |
COMMITMENTS, GUARANTEES AND C_2
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Potential Collateral Obligations | These credit-risk-related contingent features stipulate that if the subsidiary were to be downgraded or lose its investment grade credit rating (based on its senior unsecured debt rating), it would be required to provide additional collateral. The following table discloses the potential additional credit rating contingent contractual collateral obligations as of December 31, 2023: Potential Collateral Obligations Utilities and Transmission Companies FE Total (In millions) Contractual Obligations for Additional Collateral Upon Further Downgrade $ 62 $ — $ 62 Surety Bonds (collateralized amount) (1) 86 79 165 Total Exposure from Contractual Obligations $ 148 $ 79 $ 227 (1) Surety Bonds are not tied to a credit rating. Surety Bonds' impact assumes maximum contractual obligations, which is ordinarily 100% of the face amount of the surety bond except with respect to $39 million of surety obligations for which the collateral obligation is capped at 60% of the face amount, and typical obligations require 30 days to cure. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | Financial information for FirstEnergy’s business segments and reconciliations to consolidated amounts is presented below: For the Years Ended December 31, (In millions) 2023 2022 2021 External revenues Regulated Distribution $ 10,810 $ 10,569 $ 9,510 Regulated Transmission 2,049 1,863 1,608 Corporate/Other 11 27 14 Reconciling Adjustments — — — Total external revenues $ 12,870 $ 12,459 $ 11,132 Internal revenues Regulated Distribution $ 228 $ 232 $ 201 Regulated Transmission 5 5 10 Corporate/Other — — — Reconciling Adjustments (233) (237) (211) Total internal revenues $ — $ — $ — Total revenues $ 12,870 $ 12,459 $ 11,132 Depreciation Regulated Distribution $ 1,021 $ 967 $ 911 Regulated Transmission 367 335 325 Corporate/Other 4 7 3 Reconciling Adjustments 69 66 63 Total depreciation $ 1,461 $ 1,375 $ 1,302 Amortization (deferral) of regulatory assets, net Regulated Distribution $ (256) $ (362) $ 260 Regulated Transmission (5) (3) 9 Corporate/Other — — — Reconciling Adjustments — — — Total amortization (deferral) of regulatory assets, net $ (261) $ (365) $ 269 DPA penalty Corporate/Other $ — $ — $ 230 Total DPA penalty $ — $ — $ 230 Equity method investment earnings Regulated Distribution $ — $ — $ — Regulated Transmission — — — Corporate/Other 175 168 31 Reconciling Adjustments — — — Total equity method investment earnings $ 175 $ 168 $ 31 Interest expense Regulated Distribution $ 618 $ 526 $ 522 Regulated Transmission 256 230 247 Corporate/Other 334 350 382 Reconciling Adjustments (84) (67) (12) Total interest expense $ 1,124 $ 1,039 $ 1,139 Income taxes (benefits) Regulated Distribution $ 167 $ 251 $ 364 Regulated Transmission 179 110 127 Corporate/Other (79) 639 (171) Reconciling Adjustments — — — Total income taxes $ 267 $ 1,000 $ 320 For the Years Ended December 31, (In millions) 2023 2022 2021 Earnings (losses) attributable to FE from continuing operations Regulated Distribution $ 740 $ 957 $ 1,288 Regulated Transmission 514 361 408 Corporate/Other (131) (912) (457) Reconciling Adjustments — — — Total earnings attributable to FE from continuing operations $ 1,123 $ 406 $ 1,239 Cash Flows From Investing Activities: Capital investments Regulated Distribution $ 1,631 $ 1,605 $ 1,437 Regulated Transmission 1,610 1,192 958 Corporate/Other 115 51 92 Reconciling Adjustments — — — Total capital investments $ 3,356 $ 2,848 $ 2,487 As of December 31, (In millions) 2023 2022 Assets Regulated Distribution $ 32,929 $ 31,749 Regulated Transmission 15,155 13,835 Corporate/Other 683 524 Reconciling Adjustments — — Total assets $ 48,767 $ 46,108 Goodwill Regulated Distribution $ 5,004 $ 5,004 Regulated Transmission 614 614 Corporate/Other — — Reconciling Adjustments — — Total goodwill $ 5,618 $ 5,618 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | Summarized results of discontinued operations for the years ended December 31, 2023, 2022, and 2021 were as follows: For the Years Ended December 31, (In millions) 2023 2022 2021 Other expense, net — — (4) Loss from discontinued operations, before tax — — (4) Income tax benefit — — (1) Loss from discontinued operations, net of tax — — (3) Income tax expense (benefit), including worthless stock deduction 21 — (47) Gain (loss) on disposal, net of tax (21) — 47 Income (loss) from discontinued operations (1) $ (21) $ — $ 44 (1) Income from discontinued operations is included in Corporate/Other. On February 27, 2020, the FES Debtors emerged from bankruptcy and were deconsolidated from FirstEnergy’s consolidated federal income tax group. The bankruptcy, emergence and deconsolidation resulted in FirstEnergy recognizing certain income tax benefits and charges, which were classified as discontinued operations. During the third quarter of 2023, FirstEnergy recognized a $21 million tax-effected charge to income tax expense as a result of identifying an out of period adjustment related to the allocation of certain deferred income tax liabilities associated with the FES Debtors and their tax return deconsolidation in 2020. This adjustment was immaterial to the 2023 and prior period financial statements. FirstEnergy's Consolidated Statements of Cash Flows combines cash flows from discontinued operations with cash flows from continuing operations within each cash flow category. The following table summarizes the major classes of cash flow items from discontinued operations for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, (In millions) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Income (loss) from discontinued operations $ (21) $ — $ 44 Loss (gain) on disposal, net of tax 21 — (47) |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION - Narrative (Details) $ in Millions | 12 Months Ended | |||||
May 31, 2022 USD ($) director | Dec. 31, 2023 USD ($) mi² transmissionCenter customer MW | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Apr. 27, 2023 USD ($) | Feb. 02, 2023 USD ($) director | |
Regulatory Assets [Line Items] | ||||||
Number of regional transmission centers | transmissionCenter | 2 | |||||
Regulatory assets currently being recovered through deferred returns | $ 371 | $ 511 | ||||
Equity method investment earnings (Note 1) | $ 175 | $ 168 | $ 31 | |||
Public utilities, property, plant and equipment, disclosure of composite depreciation rate for plants in service | 2.80% | 2.70% | 2.70% | |||
Capitalized financing costs | $ 44 | $ 56 | $ 48 | |||
Interest costs capitalized | 53 | 28 | 27 | |||
Property, plant and equipment | $ 38,412 | 36,285 | ||||
VIRGINIA | ||||||
Regulatory Assets [Line Items] | ||||||
Plant generation capacity (in MW's) | MW | 3,003 | |||||
Utilities and Transmission Companies | ||||||
Regulatory Assets [Line Items] | ||||||
Number of customers | customer | 6,000,000 | |||||
Service Area | mi² | 65,000 | |||||
Plant generation capacity (in MW's) | MW | 3,580 | |||||
Property, plant and equipment, net | $ 2,200 | |||||
Regulated Transmission | ||||||
Regulatory Assets [Line Items] | ||||||
Service Area | mi² | 24,000 | |||||
Other Sundry Investments | ||||||
Regulatory Assets [Line Items] | ||||||
Equity method investments | $ 104 | 90 | ||||
Global Holding | ||||||
Regulatory Assets [Line Items] | ||||||
Equity method investments | 66 | 57 | ||||
FE | FET | ||||||
Regulatory Assets [Line Items] | ||||||
Equity method investment, ownership percentage | 50.10% | |||||
Variable Interest Entity, Not Primary Beneficiary | Path-WV | ||||||
Regulatory Assets [Line Items] | ||||||
Equity method investments | 17 | 18 | ||||
Equity method investment earnings (Note 1) | $ 0 | 0 | 0 | |||
Percentage of high-voltage transmission line project owned by subsidiary of FE on the Allegheny Series | 100% | |||||
Variable Interest Entities Percentage Of high voltage transmission line project owned By variable interest entity one in joint venture party two | 50% | |||||
FET | ||||||
Regulatory Assets [Line Items] | ||||||
Number of directors | director | 5 | 5 | ||||
Consolidation, less than wholly owned subsidiary, parent ownership interest, changes, transaction costs | $ 37 | |||||
Consolidation, less than wholly owned subsidiary, parent ownership interest, changes, carrying value of noncontrolling interest | $ 451 | |||||
FET | FE | ||||||
Regulatory Assets [Line Items] | ||||||
Number of directors | director | 4 | 3 | ||||
FEV | Global Holding | ||||||
Regulatory Assets [Line Items] | ||||||
Proceeds from dividends received | $ 165 | 170 | ||||
FEV | Global Holding | Signal Peak [Member] | ||||||
Regulatory Assets [Line Items] | ||||||
Equity method investment, ownership percentage | 33.33% | |||||
FEV | Global Holding | Other Nonoperating Income (Expense) | Corporate/Other | ||||||
Regulatory Assets [Line Items] | ||||||
Equity method investment earnings (Note 1) | $ 175 | $ 168 | $ 29 | |||
AGC | VIRGINIA | ||||||
Regulatory Assets [Line Items] | ||||||
Plant generation capacity (in MW's) | MW | 487 | |||||
Proportionate ownership share | 16.25% | |||||
Property, plant and equipment | $ 145 | |||||
Virginia Electric and Power Company | VIRGINIA | ||||||
Regulatory Assets [Line Items] | ||||||
Proportionate ownership share | 60% | |||||
FET | ||||||
Regulatory Assets [Line Items] | ||||||
Noncontrolling interest ownership percentage | 19.90% | 49.90% | ||||
Brookfield II | FET | ||||||
Regulatory Assets [Line Items] | ||||||
Number of directors | director | 1 | 2 | ||||
Debt covenants minimum ownership interest percentage | 30% | |||||
Sale of ownership interest by parent | 19.90% | 19.90% | ||||
Consideration | $ 3,500 | $ 3,500 | ||||
Brookfield II | FET | ||||||
Regulatory Assets [Line Items] | ||||||
Sale of ownership interest by parent | 30% | 30% | ||||
Noncontrolling interest ownership percentage | 49.90% |
ORGANIZATION AND BASIS OF PRE_5
ORGANIZATION AND BASIS OF PRESENTATION - Regulatory Assets on the Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Regulatory assets on the Balance Sheets | ||
Regulatory liability | $ (1,214) | $ (1,847) |
Regulatory assets | 369 | 33 |
Net Regulatory Liabilities included on the Consolidated Balance Sheets | (845) | (1,814) |
Change | 969 | |
Current Return | 1,197 | 997 |
Change | 200 | |
Customer payables for future income taxes | ||
Regulatory assets on the Balance Sheets | ||
Regulatory liability | (2,382) | (2,463) |
Change | 81 | |
Spent nuclear fuel disposal costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory liability | (83) | (83) |
Change | 0 | |
Asset removal costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory liability | (652) | (675) |
Change | 23 | |
Deferred transmission costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory assets | 286 | 50 |
Change | 236 | |
Current Return | 6 | 8 |
Change | (2) | |
Deferred generation costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory assets | 572 | 235 |
Change | 337 | |
Current Return | 432 | 262 |
Change | 170 | |
Deferred distribution costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory assets | 247 | 164 |
Change | 83 | |
Current Return | 68 | 27 |
Change | 41 | |
Storm-related costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory assets | 799 | 683 |
Change | 116 | |
Current Return | 602 | 568 |
Change | 34 | |
Uncollectible and pandemic-related costs | ||
Regulatory assets on the Balance Sheets | ||
Current Return | 35 | 45 |
Change | (10) | |
Energy efficiency program costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory assets | 198 | 94 |
Change | 104 | |
New Jersey societal benefit costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory assets | 79 | 94 |
Change | (15) | |
Vegetation management | ||
Regulatory assets on the Balance Sheets | ||
Regulatory assets | 102 | 63 |
Change | 39 | |
Current Return | 21 | 52 |
Change | (31) | |
Other | ||
Regulatory assets on the Balance Sheets | ||
Regulatory liability | (11) | |
Regulatory assets | 24 | |
Change | (35) | |
Current Return | 33 | $ 35 |
Change | $ (2) |
ORGANIZATION AND BASIS OF PRE_6
ORGANIZATION AND BASIS OF PRESENTATION - Summary of Changes in Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 5,618 | $ 5,618 |
Regulated Distribution | ||
Goodwill [Line Items] | ||
Goodwill | 5,004 | 5,004 |
Regulated Transmission | ||
Goodwill [Line Items] | ||
Goodwill | $ 614 | $ 614 |
ORGANIZATION AND BASIS OF PRE_7
ORGANIZATION AND BASIS OF PRESENTATION - Property, Plant and Equipment Balances (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment | ||
In Service | $ 50,107 | $ 47,850 |
Accum. Depr. | (13,811) | (13,258) |
Net Plant | 36,296 | 34,592 |
CWIP | 2,116 | 1,693 |
Total | 38,412 | 36,285 |
Finance leases | 68 | 105 |
Financing lease, accumulated amortization | 33 | 60 |
Regulated Distribution | ||
Property, Plant and Equipment | ||
In Service | 33,453 | 32,257 |
Accum. Depr. | (10,039) | (9,636) |
Net Plant | 23,414 | 22,621 |
CWIP | 860 | 828 |
Total | 24,274 | 23,449 |
Regulated Transmission | ||
Property, Plant and Equipment | ||
In Service | 15,538 | 14,468 |
Accum. Depr. | (3,178) | (2,978) |
Net Plant | 12,360 | 11,490 |
CWIP | 1,208 | 818 |
Total | 13,568 | 12,308 |
Corporate/Other | ||
Property, Plant and Equipment | ||
In Service | 1,116 | 1,125 |
Accum. Depr. | (594) | (644) |
Net Plant | 522 | 481 |
CWIP | 48 | 47 |
Total | $ 570 | $ 528 |
ORGANIZATION AND BASIS OF PRE_8
ORGANIZATION AND BASIS OF PRESENTATION - Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation Period Increase Decrease Abstract [Roll Forward] | ||
Beginning Balance | $ 185 | $ 179 |
Changes in timing and amount of estimated cash flows | 10 | (2) |
Liabilities settled | (2) | (6) |
Accretion | 16 | 14 |
Ending Balance | $ 209 | $ 185 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) MW | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Disaggregation of Revenue [Line Items] | ||||
Utility customer payment period | 30 days | |||
Total revenues | [1] | $ 12,870 | $ 12,459 | $ 11,132 |
Accounts receivable, allowance for credit loss, period increase (decrease) | (77) | |||
Deferred Regulatory Assets | ||||
Disaggregation of Revenue [Line Items] | ||||
Accounts receivable, allowance for credit loss, period increase (decrease) | $ (41) | |||
Utilities and Transmission Companies | ||||
Disaggregation of Revenue [Line Items] | ||||
Plant generation capacity (in MW's) | MW | 3,580 | |||
[1]Includes excise and gross receipts tax collections of $420 million, $406 million and $374 million in 2023, 2022 and 2021, respectively. |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | [1] | $ 12,870 | $ 12,459 | $ 11,132 |
Operating Segments | Utilities and Transmission Companies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 10,927 | 10,700 | 9,644 | |
Total revenues | 11,038 | 10,801 | 9,711 | |
Operating Segments | Utilities and Transmission Companies | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 228 | 494 | 362 | |
Operating Segments | Utilities and Transmission Companies | Other revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 113 | 104 | 119 | |
Operating Segments | Utilities and Transmission Companies | Alternative Revenue Program | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | (27) | |
Operating Segments | Utilities and Transmission Companies | Other revenue unrelated to contacts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 111 | 101 | 94 | |
Operating Segments | Utilities and Transmission Companies | Distribution services and retail generation | Ohio Stipulation | ||||
Disaggregation of Revenue [Line Items] | ||||
Rate refunds | 58 | 38 | ||
Operating Segments | Regulated Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 2,049 | 1,863 | 1,608 | |
Total revenues | 2,054 | 1,868 | 1,618 | |
Operating Segments | Regulated Transmission | Other revenue unrelated to contacts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5 | 5 | 10 | |
Operating Segments | Residential | Utilities and Transmission Companies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 6,583 | 6,180 | 5,713 | |
Operating Segments | Commercial | Utilities and Transmission Companies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 2,600 | 2,499 | 2,284 | |
Operating Segments | Industrial | Utilities and Transmission Companies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,298 | 1,338 | 1,091 | |
Operating Segments | Street lighting/Other | Utilities and Transmission Companies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 105 | 85 | 75 | |
Operating Segments | ATSI | Regulated Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 968 | 912 | 799 | |
Operating Segments | TrAIL | Regulated Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 279 | 270 | 233 | |
Operating Segments | MAIT | Regulated Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 395 | 340 | 288 | |
Operating Segments | JCP&L | Regulated Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 205 | 203 | 164 | |
Operating Segments | MP, PE and WP | Regulated Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 202 | 138 | 124 | |
Corporate/Other and Reconciling Adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (222) | (210) | (197) | |
Corporate/Other and Reconciling Adjustments | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 11 | 27 | 14 | |
Corporate/Other and Reconciling Adjustments | Other revenue unrelated to contacts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (52) | (51) | (57) | |
Corporate/Other and Reconciling Adjustments | Retail generation and distribution services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ (181) | $ (186) | $ (154) | |
[1]Includes excise and gross receipts tax collections of $420 million, $406 million and $374 million in 2023, 2022 and 2021, respectively. |
REVENUE - Receivables from Cust
REVENUE - Receivables from Customers (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Customers | $ 1,382 | $ 1,455 |
Less — Allowance for uncollectible customer receivables | 64 | 137 |
Receivable | 1,318 | 1,318 |
Billed | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Customers | 717 | 674 |
Billed | Financial Asset, Greater than 30 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Customers | 288 | 290 |
Unbilled | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Customers | $ 665 | $ 781 |
REVENUE - Activity in Uncollect
REVENUE - Activity in Uncollectable Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Deferred for recovery | $ (15) | $ 11 | $ 12 |
Increase (decrease) in allowance for credit loss, | 77 | ||
Customer Receivables: | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 137 | 159 | 164 |
Charged to income | 8 | 59 | 54 |
Charged to other accounts | 34 | 62 | 42 |
Write-offs | (115) | (143) | (101) |
Ending balance | 64 | 137 | 159 |
Other Receivables: | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 11 | 10 | 26 |
Charged to income | 7 | 4 | 3 |
Charged to other accounts | (1) | 4 | 3 |
Write-offs | (2) | (7) | (22) |
Ending balance | $ 15 | $ 11 | $ 10 |
EARNINGS PER SHARE OF COMMON _3
EARNINGS PER SHARE OF COMMON STOCK - Reconciliation of Basic and Diluted EPS Attributable to FE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Earnings Per Share [Abstract] | ||||
Earnings Attributable to FE - continuing operations | $ 1,123 | $ 406 | $ 1,239 | |
Earnings from discontinued operations | [1] | (21) | 0 | 44 |
EARNINGS ATTRIBUTABLE TO FIRSTENERGY CORP. | $ 1,102 | $ 406 | $ 1,283 | |
Share Count information: | ||||
Weighted average number of basic shares outstanding (in shares) | 573 | 571 | 545 | |
Assumed exercise of dilutive share-based awards (in shares) | 1 | 1 | 1 | |
Weighted average number of diluted shares outstanding (in shares) | 574 | 572 | 546 | |
EPS Attributable to FE: | ||||
Income from continuing operations, basic (in dollars per share) | $ 1.96 | $ 0.71 | $ 2.27 | |
Discontinued operations, basic (in dollars per share) | (0.04) | 0 | 0.08 | |
Basic - EPS (in dollars per share) | 1.92 | 0.71 | 2.35 | |
Income from continuing operations, diluted (in dollars per share) | 1.96 | 0.71 | 2.27 | |
Discontinued operations, diluted (in dollars per share) | (0.04) | 0 | 0.08 | |
Diluted - EPS (in dollars per share) | $ 1.92 | $ 0.71 | $ 2.35 | |
[1]Net of income tax benefit (expense) of ($21 million) and $48 million in 2023 and 2021, respectively. |
EARNINGS PER SHARE OF COMMON _4
EARNINGS PER SHARE OF COMMON STOCK - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
4.00%, $1,500 Million Notes Maturity 2026 | Promissory Notes | FE | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Debt instrument, conversation price (in dollars per share) | $ 46.81 | ||
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 0 | 0 | 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 10,166 | ||
Income tax on other comprehensive income | (1) | $ (1) | $ (3) |
Other comprehensive income, net of tax | (3) | 1 | (10) |
Ending balance | 10,437 | 10,166 | |
Gains & Losses on Cash Flow | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | (7) | (8) |
Amounts reclassified from AOCI | 2 | 9 | 1 |
Income tax on other comprehensive income | 0 | 2 | 0 |
Other comprehensive income, net of tax | 2 | 7 | 1 |
Ending balance | 2 | 0 | (7) |
Defined Benefit Pension & OPEB Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (14) | (8) | 3 |
Amounts reclassified from AOCI | (6) | (9) | (14) |
Income tax on other comprehensive income | (1) | (3) | (3) |
Other comprehensive income, net of tax | (5) | (6) | (11) |
Ending balance | (19) | (14) | (8) |
Total FirstEnergy Corp. AOCI | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (14) | (15) | (5) |
Other comprehensive income, net of tax | (3) | 1 | (10) |
Ending balance | $ (17) | $ (14) | $ (15) |
PENSION AND OTHER POST-EMPLOY_3
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 8 Months Ended | 12 Months Ended | |||||
May 12, 2023 USD ($) | Dec. 31, 2023 USD ($) numberOfEmployee | Dec. 31, 2023 USD ($) numberOfEmployee | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) numberOfEmployee | Dec. 31, 2023 USD ($) numberOfEmployee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | May 09, 2023 employee | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Percent of eligible employees that accepted the voluntary retirement program | 0.65 | ||||||||
Number of employees | employee | 450 | ||||||||
Number of separated employees | employee | 90 | ||||||||
Defined benefit plan, assumptions used calculating benefit obligation, increase (decrease) in discount rate | 0.11% | 0.29% | |||||||
Pension | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Voluntary cash contribution | $ 750 | ||||||||
Weighted-average discount rate | 8% | ||||||||
Pension & OPEB mark-to-market | $ 137 | $ 59 | $ 108 | $ (98) | $ (253) | ||||
Expected future contributions | $ 260 | $ 260 | $ 260 | $ 260 | |||||
Defined benefit plan, number of covered employees by plan | numberOfEmployee | 1,900 | 1,900 | 1,900 | 1,900 | |||||
Defined benefit plan, plan assets pre tax gain | $ 36 | ||||||||
Pension | Banner Life Insurance Company and Reinsurance Group of America | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined benefit plan, plan assets, increase (decrease) for assets transferred to (from) plan | 683 | ||||||||
Plan amendments | $ 719 | ||||||||
OPEB | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Pension & OPEB mark-to-market | $ (30) | 26 | (129) | ||||||
OPEB | Regulated Transmission | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Mark-to-market adjustment, net of capitalized amounts | $ 36 | $ 15 | $ (31) |
PENSION AND OTHER POST-EMPLOY_4
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 5.05% | 5.05% | 5.23% | 3.02% |
Rate of compensation increase | 4.30% | 4.30% | 4.30% | 4.10% |
Cash balance weighted average interest crediting rate | 4.94% | 4.04% | 2.57% | |
Weighted-average discount rate | 8% | |||
Expected return on plan assets | 8% | 7.50% | 7.50% | |
Rate of compensation increase | 4.30% | 4.10% | 4.10% | |
Pension | Interest on Benefit Obligations | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 2.44% | |||
Pension | Interest on Benefit Obligations | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 5.10% | 1.94% | ||
Pension | Interest on Benefit Obligations | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 4.80% | |||
Pension | Service Cost | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 3.28% | |||
Pension | Service Cost | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 5.34% | 3.10% | ||
Pension | Service Cost | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 5.11% | |||
Pension | Interest Cost | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 2.96% | |||
Pension | Interest Cost | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 5.22% | 2.58% | ||
Pension | Interest Cost | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 4.94% | |||
OPEB | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 4.97% | 4.97% | 5.16% | 2.84% |
Expected return on plan assets | 7% | 7.50% | 7.50% | |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% | 4.50% | 4.50% |
OPEB | Pre Medicare | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate assumed (pre/post-Medicare) | 7% | 7% | 6% | 5.75% |
OPEB | Post Medicare | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Health care cost trend rate assumed (pre/post-Medicare) | 6.50% | 6.50% | 5.50% | 5.25% |
OPEB | Interest on Benefit Obligations | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 5.06% | 2.18% | ||
OPEB | Interest on Benefit Obligations | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 1.66% | |||
OPEB | Service Cost | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 5.41% | 3.41% | ||
OPEB | Service Cost | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 3.03% | |||
OPEB | Interest Cost | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 5.33% | 3.24% | ||
OPEB | Interest Cost | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted-average discount rate | 2.83% |
PENSION AND OTHER POST-EMPLOYEM
PENSION AND OTHER POST-EMPLOYEMENT BENEFITS - Schedule of Assumed Rate of Return on Pension Plan Assets Considers Historical Market Returns and Economic Forecasts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pensions and OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual gains or (losses) on plan assets - $ millions | $ 751 | $ (1,830) | $ 689 |
Actual gains or (losses) on plan assets - % | 11.20% | (19.10%) | 7.90% |
Expected return on plan assets - $ millions | $ 601 | $ 696 | $ 688 |
Expected return on plan assets | 7.50% | 7.50% | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual gains or (losses) on plan assets - $ millions | 682 | $ (1,760) | |
Expected return on plan assets - $ millions | $ 570 | $ 657 | $ 652 |
Expected return on plan assets | 8% | 7.50% | 7.50% |
OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual gains or (losses) on plan assets - $ millions | $ 69 | $ (70) | |
Expected return on plan assets - $ millions | $ 31 | $ 39 | $ 36 |
Expected return on plan assets | 7% | 7.50% | 7.50% |
PENSION AND OTHER POST-EMPLOY_5
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | $ 139 | $ 184 | $ 195 | ||
Interest cost | 428 | 273 | 226 | ||
Expected return on plan assets | (570) | (657) | (652) | ||
Amortization of prior service costs (credits) | 2 | 2 | 3 | ||
Special termination costs | 21 | 0 | 0 | ||
Pension & OPEB mark-to-market | $ 137 | $ 59 | 108 | (98) | (253) |
Net periodic benefit costs (credits) | 128 | (296) | (481) | ||
OPEB | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 2 | 3 | 4 | ||
Interest cost | 21 | 11 | 11 | ||
Expected return on plan assets | (31) | (39) | (36) | ||
Amortization of prior service costs (credits) | (8) | (11) | (17) | ||
Special termination costs | 8 | 0 | 0 | ||
Pension & OPEB mark-to-market | (30) | 26 | (129) | ||
Net periodic benefit costs (credits) | $ (38) | $ (10) | $ (167) |
PENSION AND OTHER POST-EMPLOY_6
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | |||
Change in benefit obligation: | |||
Benefit obligation as of January 1 | $ 8,828 | $ 11,479 | |
Service cost | 139 | 184 | $ 195 |
Interest cost | 428 | 273 | 226 |
Plan participants’ contributions | 0 | 0 | |
Special termination benefits | 21 | 0 | |
Medicare retiree drug subsidy | 0 | 0 | |
Lift-out transaction | (719) | 0 | |
Actuarial loss (gain) | 256 | (2,515) | |
Benefits paid | (590) | (593) | |
Benefit obligation as of December 31 | 8,363 | 8,828 | 11,479 |
Change in fair value of plan assets: | |||
Fair value of plan assets as of January 1 | 6,693 | 9,020 | |
Actual return on plan assets | 682 | (1,760) | |
Lift-out transaction | (683) | 0 | |
Company contributions | 777 | 26 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (590) | (593) | |
Fair value of plan assets as of December 31 | 6,879 | 6,693 | 9,020 |
Funded Status: | |||
Funded Status (Net liability as of December 31) | (1,484) | (2,135) | |
Accumulated benefit obligation | 7,324 | 8,500 | |
Amounts Recognized in AOCI: | |||
Prior service cost (credit) | 4 | 6 | |
Pension | Qualified plan | |||
Funded Status: | |||
Funded Status (Net liability as of December 31) | (1,090) | (1,734) | |
Pension | Non-qualified plans | |||
Funded Status: | |||
Funded Status (Net liability as of December 31) | (394) | (401) | |
OPEB | |||
Change in benefit obligation: | |||
Benefit obligation as of January 1 | 439 | 549 | |
Service cost | 2 | 3 | 4 |
Interest cost | 21 | 11 | 11 |
Plan participants’ contributions | 4 | 3 | |
Special termination benefits | 8 | 0 | |
Medicare retiree drug subsidy | 0 | 1 | |
Lift-out transaction | 0 | 0 | |
Actuarial loss (gain) | 8 | (83) | |
Benefits paid | (41) | (45) | |
Benefit obligation as of December 31 | 441 | 439 | 549 |
Change in fair value of plan assets: | |||
Fair value of plan assets as of January 1 | 460 | 548 | |
Actual return on plan assets | 69 | (70) | |
Lift-out transaction | 0 | 0 | |
Company contributions | 24 | 24 | |
Plan participants’ contributions | 4 | 3 | |
Benefits paid | (41) | (45) | |
Fair value of plan assets as of December 31 | 516 | 460 | $ 548 |
Funded Status: | |||
Funded Status (Net liability as of December 31) | 75 | 21 | |
Accumulated benefit obligation | 0 | 0 | |
Amounts Recognized in AOCI: | |||
Prior service cost (credit) | (1) | (10) | |
OPEB | Qualified plan | |||
Funded Status: | |||
Funded Status (Net liability as of December 31) | 0 | 0 | |
OPEB | Non-qualified plans | |||
Funded Status: | |||
Funded Status (Net liability as of December 31) | $ 0 | $ 0 |
PENSION AND OTHER POST-EMPLOY_7
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Pension Investments Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 6,927 | $ 6,343 |
Asset Allocation | 100% | 100% |
Excluded from total investments | $ (48) | $ 350 |
Pension | Investments Excluding in Investments at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 4,393 | $ 3,707 |
Asset Allocation | 63% | 58% |
Pension | Cash and short-term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 755 | $ 714 |
Asset Allocation | 11% | 11% |
Pension | Public equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 1,815 | $ 2,087 |
Asset Allocation | 26% | 33% |
Pension | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 1,784 | $ 942 |
Asset Allocation | 26% | 15% |
Pension | Derivatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 39 | |
Asset Allocation | 0% | |
Pension | Derivatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ (36) | |
Asset Allocation | (1.00%) | |
Pension | Private - equity and debt funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 1,296 | $ 1,061 |
Asset Allocation | 19% | 17% |
Pension | Insurance-linked securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 107 | $ 159 |
Asset Allocation | 2% | 3% |
Pension | Hedge funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 410 | $ 563 |
Asset Allocation | 6% | 9% |
Pension | Real estate funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 721 | $ 853 |
Asset Allocation | 10% | 13% |
Pension | Level 1 | Investments Excluding in Investments at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 1,813 | $ 1,833 |
Pension | Level 1 | Cash and short-term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
Pension | Level 1 | Public equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 1,811 | 1,871 |
Pension | Level 1 | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
Pension | Level 1 | Derivatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 2 | |
Pension | Level 1 | Derivatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | (38) | |
Pension | Level 2 | Investments Excluding in Investments at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 2,580 | 1,874 |
Pension | Level 2 | Cash and short-term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 755 | 714 |
Pension | Level 2 | Public equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 4 | 216 |
Pension | Level 2 | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 1,784 | 942 |
Pension | Level 2 | Derivatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 37 | |
Pension | Level 2 | Derivatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 2 | |
Pension | Level 3 | Investments Excluding in Investments at NAV | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
Pension | Level 3 | Cash and short-term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
Pension | Level 3 | Public equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
Pension | Level 3 | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
Pension | Level 3 | Derivatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | |
Pension | Level 3 | Derivatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | |
OPEB | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 516 | $ 461 |
Asset Allocation | 100% | 100% |
Excluded from total investments | $ (1) | |
OPEB | Cash and short-term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 100 | $ 87 |
Asset Allocation | 19% | 19% |
OPEB | Public equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 258 | $ 217 |
Asset Allocation | 50% | 47% |
OPEB | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 158 | $ 157 |
Asset Allocation | 31% | 34% |
OPEB | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 258 | $ 217 |
OPEB | Level 1 | Cash and short-term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
OPEB | Level 1 | Public equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 258 | 217 |
OPEB | Level 1 | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
OPEB | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 258 | 244 |
OPEB | Level 2 | Cash and short-term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 100 | 87 |
OPEB | Level 2 | Public equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
OPEB | Level 2 | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 158 | 157 |
OPEB | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
OPEB | Level 3 | Cash and short-term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | 0 |
OPEB | Level 3 | Public equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | 0 | $ 0 |
OPEB | Level 3 | Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension investments measured at fair value | $ 0 |
PENSION AND OTHER POST-EMPLOY_8
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Target Asset Allocations for Pension and OPEB Portfolio (Details) | Dec. 31, 2023 |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 100% |
OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 100% |
Equities | Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 30% |
Equities | OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 50% |
Fixed Income | Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 28.50% |
Fixed Income | OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 50% |
Alternative investments | Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 5% |
Alternative investments | OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 0% |
Real estate | Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 10% |
Real estate | OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 0% |
Private - equity and debt funds | Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 20% |
Private - equity and debt funds | OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 0% |
Cash and derivatives | Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 6.50% |
Cash and derivatives | OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target Asset Allocations | 0% |
PENSION AND OTHER POST-EMPLOY_9
PENSION AND OTHER POST-EMPLOYMENT BENEFITS - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension | |
Estimated Future Benefit Payments | |
2024 | $ 554 |
2025 | 562 |
2026 | 564 |
2027 | 569 |
2028 | 571 |
Years 2029-2033 | 2,877 |
OPEB | |
Estimated Future Benefit Payments | |
2024 | 49 |
2025 | 41 |
2026 | 40 |
2027 | 39 |
2028 | 37 |
Years 2029-2033 | 164 |
Defined Benefit Plan, Expected Future Prescription Drug Subsidy Receipt [Abstract] | |
2024 | (1) |
2025 | (1) |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Years 2029-2033 | $ (2) |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Realized tax benefits | $ 6 | $ 8 | $ 10 |
Tax benefit associated with stock-based compensation expense | 6 | 8 | $ 5 |
Cash portion of RSU paid | $ 6 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award vesting period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award vesting period | 4 years | ||
EDCP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net liability recognized | $ 175 | 193 | |
DCPD | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net liability recognized | $ 4 | $ 8 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized cost, period for recognition | 3 years | 3 years | 3 years |
Granted (in dollars per share) | $ / shares | $ 38.36 | $ 41.49 | $ 35.50 |
Fair value of restricted stock units vested | $ 24 | $ 26 | $ 34 |
Unrecognized cost | $ 32 | ||
Performance-based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted total shareholder return percentage | 0.35 | ||
Award performance period | 3 years | ||
Maximum payout of awards during negative performance period | 100% | ||
Liability recognized | $ 22 | ||
Award paid in stock (percent) | 66.67% | ||
Award paid in cash (percent) | 33.33% | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized cost, period for recognition | 4 years | ||
Granted (in dollars per share) | $ / shares | $ 37.42 | ||
Fair value of restricted stock units vested | $ 11 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, weighted average vesting period | 2 years 4 months 24 days | ||
ICP 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | shares | 10,000,000 | ||
ICP 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | shares | 10,000,000 | ||
Share-based compensation arrangement by share-based payment, award, number of shares available for grant (in shares) | shares | 10,100,000 | ||
401(k) savings plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance | shares | 1,000,000 | 1,000,000 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | $ 83 | $ 101 | $ 90 |
Stock-based compensation costs, net of amounts capitalized | 44 | 54 | 43 |
Incentive Plans | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | 39 | 55 | 40 |
Incentive Plans | Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | 5 | 3 | 2 |
401(k) savings plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | 38 | 36 | 35 |
EDCP & DCPD | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | $ 1 | $ 7 | $ 13 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Schedule of Nonvested Restricted Stock Units Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted-Average Grant Date Fair Value (per share) | |||
Dividend shares earned during period, number of shares | 63 | ||
Restricted stock units | |||
Shares (in millions) | |||
Nonvested, beginning balance (in shares) | 1,900 | ||
Granted (in shares) | 1,400 | ||
Forfeited (in shares) | (200) | ||
Vested (in shares) | (600) | ||
Nonvested, ending balance (in shares) | 2,500 | 1,900 | |
Weighted-Average Grant Date Fair Value (per share) | |||
Beginning balance (in dollars per share) | $ 41.57 | ||
Granted (in dollars per share) | 38.36 | $ 41.49 | $ 35.50 |
Forfeited (in dollars per share) | 39.32 | ||
Vested (in dollars per share) | 39.38 | ||
Ending balance (in dollars per share) | $ 38.82 | $ 41.57 | |
Restricted stock | |||
Shares (in millions) | |||
Nonvested, beginning balance (in shares) | 200 | ||
Granted (in shares) | 300 | ||
Forfeited (in shares) | (20) | ||
Vested (in shares) | (20) | ||
Nonvested, ending balance (in shares) | 460 | 200 | |
Weighted-Average Grant Date Fair Value (per share) | |||
Beginning balance (in dollars per share) | $ 42.35 | ||
Granted (in dollars per share) | 37.42 | ||
Forfeited (in dollars per share) | 36.86 | ||
Vested (in dollars per share) | 39.45 | ||
Ending balance (in dollars per share) | $ 39.57 | $ 42.35 |
TAXES - Narrative (Details)
TAXES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2024 | Mar. 31, 2023 | Aug. 16, 2022 | May 31, 2022 | |
Provision for Income Tax [Line Items] | |||||||||||
Valuation allowances | $ 37 | $ (146) | $ (47) | $ 17 | |||||||
Operating loss carryforwards, not subject to expiration, net of tax | 1,200 | 1,200 | $ 1,000 | ||||||||
Income taxes paid | $ 49 | ||||||||||
Operating loss carryforwards, subject to expiration | 8,100 | 8,100 | |||||||||
Nondeductible DPA monetary penalty | 58 | $ 752 | |||||||||
Income taxes (benefits) | $ 65 | 267 | 1,000 | $ 320 | |||||||
Deferred tax assets | 4 | 4 | $ 9 | ||||||||
Deferred tax assets, expected to be refunded to customers | 4 | 4 | |||||||||
Operating loss carryforwards, subject to expiration, net of tax | 1,700 | 1,700 | |||||||||
Operating loss carryforwards, not subject to expiration | 5,900 | 5,900 | |||||||||
Tax credit carryforwards not subject to expiration | 57 | 57 | |||||||||
Tax credit carryforwards subject to expiration | 12 | 12 | |||||||||
Interest expense reversed due to settlement | 9 | 9 | |||||||||
Interest Expense Carryforward | |||||||||||
Provision for Income Tax [Line Items] | |||||||||||
Valuation allowances | $ 38 | ||||||||||
State and Local Jurisdiction [Member] | |||||||||||
Provision for Income Tax [Line Items] | |||||||||||
Operating loss carryforwards, not subject to expiration, net of tax | 436 | 436 | |||||||||
Operating loss carryforwards, not subject to expiration | 13,500 | 13,500 | |||||||||
Pre-tax net operating loss carryforwards expected to utilized | 6,100 | 6,100 | |||||||||
Operating loss carryforwards expected to utilized, net of tax | $ 233 | $ 233 | |||||||||
Brookfield II | FET | |||||||||||
Provision for Income Tax [Line Items] | |||||||||||
Sale of ownership interest by parent | 19.90% | 19.90% | 19.90% | ||||||||
Brookfield II | Forecast | FET | |||||||||||
Provision for Income Tax [Line Items] | |||||||||||
Additional sale of ownership interest by parent | 30% | ||||||||||
Sale of ownership interest by parent | 49.90% | ||||||||||
Operating loss carryforwards, subject to expiration | $ 7,500 |
TAXES - Provision for Income Ta
TAXES - Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Currently payable - | ||||
Federal | $ 14 | $ 0 | $ 2 | |
State | 1 | 11 | 21 | |
Currently payable (receivable) Total | 15 | 11 | 23 | |
Deferred, net - | ||||
Federal | 279 | 946 | 174 | |
State | (24) | 47 | 127 | |
Deferred Tax Total | 255 | 993 | 301 | |
Investment tax credit amortization | (3) | (4) | (4) | |
Total income taxes on income from continuing operations | $ 65 | 267 | $ 1,000 | 320 |
Federal | ||||
Deferred, net - | ||||
Income tax expense (benefit), continuing operations, discontinued operations | 2 | |||
Discontinued Operations, Disposed of by Means Other than Sale | FES and FENOC | Federal | ||||
Deferred, net - | ||||
Federal | $ 21 | $ 46 |
TAXES - Reconciliation of Feder
TAXES - Reconciliation of Federal Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2022 | |
Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes | ||||||
Income from continuing operations, before income taxes | $ 1,464 | $ 1,439 | $ 1,559 | |||
Federal income tax expense at the 21% statutory rate | 307 | 302 | 327 | |||
Increases (reductions) in taxes resulting from- | ||||||
State and municipal income taxes, net of federal tax benefit | 80 | 56 | 122 | |||
AFUDC equity and other flow-through | (30) | (26) | (29) | |||
Amortization of investment tax credits | (3) | (4) | (4) | |||
Deferred gain on 19.9% FET minority interest sale | 58 | 752 | 0 | |||
Federal tax credits claimed | (3) | (3) | (34) | |||
Nondeductible DPA monetary penalty | 0 | 0 | 52 | |||
Excess deferred tax amortization due to the Tax Act | (46) | (51) | (54) | |||
Uncertain tax positions | 41 | 2 | (82) | |||
Valuation allowances | $ 37 | (146) | (47) | 17 | ||
Other, net | 9 | 19 | 5 | |||
Total income taxes on income from continuing operations | $ 65 | $ 267 | $ 1,000 | $ 320 | ||
Effective income tax rate (percent) | 18.20% | 69.50% | 20.50% | |||
Brookfield II | FET | ||||||
Provision for Income Tax [Line Items] | ||||||
Sale of ownership interest by parent | 19.90% | 19.90% | 19.90% |
TAXES - Accumulated Deferred In
TAXES - Accumulated Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | May 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | |||||
Property basis differences | $ 5,787 | $ 5,528 | |||
Pension and OPEB | (331) | (496) | |||
Regulatory asset/liability | 647 | 432 | |||
Deferred compensation | (153) | (149) | |||
Deferred gain on 19.9% FET minority interest sale | 810 | 752 | |||
Loss carryforwards and tax credits | (2,192) | (2,073) | |||
Valuation reserve | 226 | 440 | $ 484 | $ 496 | |
Other | (264) | (232) | |||
Net accumulated deferred income tax liability | $ 4,530 | $ 4,202 | |||
Brookfield II | FET | |||||
Provision for Income Tax [Line Items] | |||||
Sale of ownership interest by parent | 19.90% | 19.90% |
TAXES - Pre-tax Net Operating L
TAXES - Pre-tax Net Operating Loss Expiration Period (Details) $ in Millions | Dec. 31, 2023 USD ($) |
State | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | $ 8,189 |
State | 2024-2028 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 2,403 |
State | 2029-2033 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 1,415 |
State | 2034-2038 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 1,079 |
State | 2039-2043 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 823 |
State | Indefinite | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 2,469 |
Local | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 5,269 |
Local | 2024-2028 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 5,269 |
Local | 2029-2033 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 0 |
Local | 2034-2038 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 0 |
Local | 2039-2043 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 0 |
Local | Indefinite | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | $ 0 |
TAXES - Changes in Valuation Al
TAXES - Changes in Valuation Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Carry Forward Valuation Reserve | |||
Beginning of year balance | $ 440 | $ 484 | $ 496 |
Charged to income | (214) | (44) | (12) |
Charged to other accounts | 0 | 0 | 0 |
Write-offs | 0 | 0 | 0 |
End of year balance | $ 226 | $ 440 | $ 484 |
TAXES - Changes in Unrecognized
TAXES - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in unrecognized tax benefits | |||
Beginning balance | $ 42 | $ 47 | $ 139 |
Current year increases | 15 | ||
Prior year decreases | (8) | ||
Prior years increases | 88 | 2 | |
Effectively settled with taxing authorities | (24) | (97) | |
Decrease for lapse in statute | (1) | (7) | (2) |
Ending balance | $ 105 | $ 42 | $ 47 |
TAXES - Details of General Taxe
TAXES - Details of General Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
General Taxes | |||
kWh excise | $ 185 | $ 191 | $ 189 |
State gross receipts | 235 | 219 | 190 |
Real and personal property | 615 | 596 | 571 |
Social security and unemployment | 113 | 105 | 103 |
Other | 16 | 18 | 20 |
Total general taxes | $ 1,164 | $ 1,129 | $ 1,073 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Lessor, Lease, Description [Line Items] | |
Amount of leases not yet commenced | $ 42 |
Expected commencement period | 18 months |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Renewal term of lease yet to be commenced | 1 year |
Operating lease renewal term | 5 years |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Renewal term of lease yet to be commenced | 40 years |
Operating lease renewal term | 10 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | $ 79 | $ 73 | $ 71 |
Amortization of right-of-use assets | 8 | 13 | 14 |
Interest on lease liabilities | 5 | 3 | 4 |
Total finance lease cost | 13 | 16 | 18 |
Total lease cost | 92 | 89 | 89 |
Short-term lease costs | 27 | 19 | 21 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 54 | 56 | 64 |
Operating cash flows from finance leases | 3 | 3 | 4 |
Finance cash flows from finance leases | 8 | 12 | 13 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 13 | 26 | 60 |
Finance leases | 0 | 0 | 5 |
Vehicles | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | 60 | 50 | 44 |
Amortization of right-of-use assets | 4 | 10 | 12 |
Interest on lease liabilities | 0 | 0 | 1 |
Total finance lease cost | 4 | 10 | 13 |
Total lease cost | 64 | 60 | 57 |
Buildings | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | 5 | 8 | 9 |
Amortization of right-of-use assets | 2 | 1 | 1 |
Interest on lease liabilities | 5 | 3 | 3 |
Total finance lease cost | 7 | 4 | 4 |
Total lease cost | 12 | 12 | 13 |
Other | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | 14 | 15 | 18 |
Amortization of right-of-use assets | 2 | 2 | 1 |
Interest on lease liabilities | 0 | 0 | 0 |
Total finance lease cost | 2 | 2 | 1 |
Total lease cost | $ 16 | $ 17 | $ 19 |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities, Lessee (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease terms (years) | |||
Operating leases | 5 years 11 months 4 days | 7 years 3 months 18 days | 7 years 11 months 19 days |
Finance leases | 12 years 3 months 3 days | 11 years 3 months 29 days | 8 years 1 month 13 days |
Weighted-average discount rate | |||
Operating leases | 4.51% | 4.22% | 4.16% |
Finance leases | 14.73% | 14.77% | 12.22% |
Assets | |||
Operating lease | $ 205 | $ 262 | |
Finance lease | 35 | 45 | |
Total leased assets | 240 | 307 | |
Current: | |||
Operating | 47 | 48 | |
Finance | 3 | 6 | |
Noncurrent: | |||
Operating | 179 | 247 | |
Finance lease obligations | 11 | 17 | |
Total leased liabilities | 240 | 318 | |
Operating lease assets, accumulated amortization | 139 | 114 | |
Financing lease, accumulated amortization | $ 33 | $ 60 | |
Operating lease, right-of-use asset, Statement of financial position [extensible list] | Other | Other | |
Finance lease, right-of-use asset, Statement of financial position [extensible list] | Property, plant and equipment | Property, plant and equipment | |
Operating lease, liability, current, statement of financial position [extensible list] | Other | Other | |
Finance lease, liability, current, statement of financial position [extensible list] | Long-Term Debt and Lease Obligation, Current | Long-Term Debt and Lease Obligation, Current | |
Operating lease, liability, noncurrent, statement of financial position [extensible list] | Other | Other | |
Finance lease, liability, noncurrent, statement of financial position [extensible list] | Total long-term debt and other long-term obligations | Total long-term debt and other long-term obligations |
LEASES - Maturity of Operating
LEASES - Maturity of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Leases | ||
2024 | $ 54 | |
2025 | 47 | |
2026 | 43 | |
2027 | 37 | |
2028 | 33 | |
Thereafter | 47 | |
Total lease payments | 261 | |
Less imputed interest | 35 | |
Total net present value | 226 | |
Finance Leases | ||
2024 | 4 | |
2025 | 4 | |
2026 | 4 | |
2027 | 3 | |
2028 | 4 | |
Thereafter | 0 | |
Total lease payments | 19 | |
Less imputed interest | 5 | |
Total net present value | 14 | $ 23 |
Total | ||
2024 | 58 | |
2025 | 51 | |
2026 | 47 | |
2027 | 40 | |
2028 | 37 | |
Thereafter | 47 | |
Total lease payments | 280 | |
Less imputed interest | 40 | |
Total net present value | 240 | |
Sublease income | $ 8 | |
Sublease income term | 9 years |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) subsidiary agreement | Feb. 02, 2023 | Dec. 31, 2022 USD ($) | Jun. 30, 2013 USD ($) | |
Business Acquisition [Line Items] | ||||
Assets | $ 48,767 | $ 46,108 | ||
TOTAL LIABILITIES | $ 37,851 | 35,465 | ||
Number of subsidiaries that issued environmental control bonds | subsidiary | 2 | |||
Environmental control bonds outstanding | $ 218 | 247 | ||
Restricted cash | $ 42 | 46 | ||
Power Purchase Agreements | ||||
Business Acquisition [Line Items] | ||||
Number of long term power purchase agreements maintained by parent company with non utility generation entities | agreement | 4 | |||
Power Purchase Agreements | Global Holding And PATH WV | ||||
Business Acquisition [Line Items] | ||||
Equity method investment, ownership percentage | 0% | |||
FET | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest ownership percentage | 19.90% | 49.90% | ||
FE | FET | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage by parent | 80.10% | 50.10% | ||
Minority interest ownership percentage sold percentage | 0.30 | |||
MP, PE and the Ohio Companies | ||||
Business Acquisition [Line Items] | ||||
Restricted cash | $ 40 | 41 | ||
Phase In Recovery Bonds | ||||
Business Acquisition [Line Items] | ||||
Long-term debt and other long-term obligations | 191 | 206 | ||
Phase In Recovery Bonds | Ohio Funding Companies | ||||
Business Acquisition [Line Items] | ||||
Face amount of loan | $ 445 | |||
Variable Interest Entity, Primary Beneficiary | ||||
Business Acquisition [Line Items] | ||||
Assets | 10,984 | 10,063 | ||
TOTAL LIABILITIES | 7,426 | 7,120 | ||
Variable Interest Entity, Primary Beneficiary | FE | ||||
Business Acquisition [Line Items] | ||||
Assets | 11,024 | 10,104 | ||
TOTAL LIABILITIES | $ 7,835 | $ 7,573 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 137 | $ 160 |
Receivables | 1,318 | 1,318 |
Materials and supplies, at average cost | 512 | 421 |
Prepaid taxes and other | 293 | 217 |
Total current assets | 2,568 | 2,415 |
Property, plant and equipment, net | 38,412 | 36,285 |
Goodwill | 5,618 | 5,618 |
Investments | 663 | 622 |
Regulatory assets | 369 | 33 |
Other | 1,137 | 1,135 |
TOTAL ASSETS | 48,767 | 46,108 |
Current: | ||
Accounts payable | 1,362 | 1,503 |
Accrued interest | 292 | 254 |
Accrued taxes | 700 | 668 |
Other | 241 | 364 |
Total current liabilities | 5,386 | 3,958 |
Long-term debt and other long-term obligations | 22,885 | 21,203 |
Accumulated deferred income taxes | 4,530 | 4,202 |
Regulatory liabilities | 1,214 | 1,847 |
Other | 2,173 | 1,920 |
Total noncurrent liabilities | 32,465 | 31,507 |
TOTAL LIABILITIES | 37,851 | 35,465 |
Variable Interest Entity, Primary Beneficiary | ||
Current Assets | ||
Cash and cash equivalents | 76 | 77 |
Receivables | 88 | 79 |
Materials and supplies, at average cost | 1 | 1 |
Prepaid taxes and other | 23 | 23 |
Total current assets | 188 | 180 |
Property, plant and equipment, net | 10,227 | 9,365 |
Goodwill | 224 | 224 |
Investments | 19 | 20 |
Regulatory assets | 16 | 1 |
Other | 310 | 273 |
Total investments and other noncurrent assets | 10,796 | 9,883 |
TOTAL ASSETS | 10,984 | 10,063 |
Current: | ||
Accounts payable | 2 | 0 |
Accrued interest | 63 | 58 |
Accrued taxes | 262 | 278 |
Other | 14 | 7 |
Total current liabilities | 341 | 343 |
Long-term debt and other long-term obligations | 5,275 | 4,949 |
Accumulated deferred income taxes | 1,218 | 1,129 |
Regulatory liabilities | 307 | 443 |
Other | 285 | 256 |
Total noncurrent liabilities | 7,085 | 6,777 |
TOTAL LIABILITIES | $ 7,426 | $ 7,120 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Liabilities | ||
Restricted cash | $ 42 | $ 46 |
Recurring | ||
Assets | ||
Total assets | 500 | 525 |
Liabilities | ||
Total liabilities | (1) | (2) |
Net assets (liabilities) | 499 | 523 |
Recurring | FTRs | Derivative Liabilities | ||
Liabilities | ||
Total liabilities | (1) | (2) |
Recurring | FTRs | Derivative Assets | ||
Assets | ||
Total assets | 4 | 11 |
Recurring | Equity securities | ||
Assets | ||
Total assets | 2 | 2 |
Recurring | U.S. state debt securities | ||
Assets | ||
Total assets | 275 | 266 |
Recurring | Cash, cash equivalents and restricted cash | ||
Assets | ||
Total assets | 179 | 206 |
Recurring | Other | ||
Assets | ||
Total assets | 40 | 40 |
Recurring | Level 1 | ||
Assets | ||
Total assets | 181 | 208 |
Liabilities | ||
Total liabilities | 0 | 0 |
Net assets (liabilities) | 181 | 208 |
Recurring | Level 1 | FTRs | Derivative Liabilities | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Recurring | Level 1 | FTRs | Derivative Assets | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 1 | Equity securities | ||
Assets | ||
Total assets | 2 | 2 |
Recurring | Level 1 | U.S. state debt securities | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 1 | Cash, cash equivalents and restricted cash | ||
Assets | ||
Total assets | 179 | 206 |
Recurring | Level 1 | Other | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Total assets | 315 | 306 |
Liabilities | ||
Total liabilities | 0 | 0 |
Net assets (liabilities) | 315 | 306 |
Recurring | Level 2 | FTRs | Derivative Liabilities | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Recurring | Level 2 | FTRs | Derivative Assets | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 2 | Equity securities | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 2 | U.S. state debt securities | ||
Assets | ||
Total assets | 275 | 266 |
Recurring | Level 2 | Cash, cash equivalents and restricted cash | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 2 | Other | ||
Assets | ||
Total assets | 40 | 40 |
Recurring | Level 3 | ||
Assets | ||
Total assets | 4 | 11 |
Liabilities | ||
Total liabilities | (1) | (2) |
Net assets (liabilities) | 3 | 9 |
Recurring | Level 3 | FTRs | Derivative Liabilities | ||
Liabilities | ||
Total liabilities | (1) | (2) |
Recurring | Level 3 | FTRs | Derivative Assets | ||
Assets | ||
Total assets | 4 | 11 |
Recurring | Level 3 | Equity securities | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 3 | U.S. state debt securities | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 3 | Cash, cash equivalents and restricted cash | ||
Assets | ||
Total assets | 0 | 0 |
Recurring | Level 3 | Other | ||
Assets | ||
Total assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Amort
FAIR VALUE MEASUREMENTS - Amortized Cost Basis, Unrealized Gains and Losses and Fair Values of Investments in Available-for-sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Short-term cash investments | $ 6 | $ 5 |
Debt Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Cost Basis | 301 | 294 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (27) | (28) |
Fair Value | $ 275 | $ 266 |
FAIR VALUE MEASUREMENTS - Proce
FAIR VALUE MEASUREMENTS - Proceeds from the Sale of Investments in Available-for-sale Debt Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||
Sale Proceeds | $ 38 | $ 48 | $ 48 |
Realized Gains | 0 | 8 | 0 |
Realized Losses | (3) | (13) | (3) |
Interest and Dividend Income | $ 12 | $ 11 | $ 11 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments not required to be disclosed | $ 382 | $ 351 | |
Corporate-Owned Life Insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on investments | $ 18 | $ (20) | $ 13 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value and Related Carrying Amounts of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair value and related carrying amounts of long-term debt and other long-term obligations | ||
Long-term debt and other long-term obligations | $ 24,254 | $ 21,641 |
Fair Value | ||
Fair value and related carrying amounts of long-term debt and other long-term obligations | ||
Long-term debt and other long-term obligations | $ 23,003 | $ 19,784 |
CAPITALIZATION - Narrative (Det
CAPITALIZATION - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 01, 2023 $ / shares | May 04, 2023 USD ($) tradingDay | May 01, 2023 | Nov. 06, 2021 USD ($) $ / shares shares | Sep. 30, 2023 $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Jun. 30, 2023 $ / shares | Mar. 31, 2023 $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Sep. 30, 2022 $ / shares | Jun. 30, 2022 $ / shares | Mar. 31, 2022 $ / shares | Dec. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) subsidiary $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | Apr. 30, 2023 | Jun. 30, 2013 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||||
Accumulated deficit | $ (97) | $ (1,199) | $ (97) | $ (1,199) | |||||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.02 | $ 0.41 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 1.60 | $ 1.56 | $ 1.56 | ||||||||
Dividends paid (in dollars per share) | $ / shares | $ 0.41 | ||||||||||||||||||
Increase in dividend percentage | 0.05 | ||||||||||||||||||
FERC-defined equity to total capitalization ratio | 35% | ||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | |||||||||||||||
Preference shares outstanding (in shares) | shares | 0 | 0 | 0 | 0 | |||||||||||||||
Preferred shares, outstanding (in shares) | shares | 0 | 0 | 0 | 0 | |||||||||||||||
Number of subsidiaries that issued environmental control bonds | subsidiary | 2 | ||||||||||||||||||
Environmental control bonds outstanding | $ 218 | $ 247 | $ 218 | $ 247 | |||||||||||||||
Principal default amount specified in debt covenants | $ 100 | ||||||||||||||||||
Common Stock Purchase Agreement | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Number of shares issued in transaction | shares | 25,588,535 | ||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.10 | ||||||||||||||||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 39.08 | ||||||||||||||||||
Investment amount | $ 1,000 | ||||||||||||||||||
Transaction costs | $ 26 | ||||||||||||||||||
Registered Shareholders, Directors and Employees of Subsidiaries | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Consolidated tax benefit allocation (in shares) | shares | 2,000,000 | 2,000,000 | 1,000,000 | ||||||||||||||||
AGC | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
FERC-defined equity to total capitalization ratio | 45% | ||||||||||||||||||
FET | Brookfield II | Forecast | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | $ 7,000 | ||||||||||||||||||
4.00%, $1,500 Million Notes Maturity 2026 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Proceeds from issuance of debt | $ 1,480 | ||||||||||||||||||
4.00%, $1,500 Million Notes Maturity 2026 | FE | Promissory Notes | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Face amount of loan | $ 1,500 | ||||||||||||||||||
Debt instrument, convertible, threshold trading days | tradingDay | 20 | ||||||||||||||||||
Debt instrument, convertible, threshold consecutive trading days | tradingDay | 30 | ||||||||||||||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130% | ||||||||||||||||||
Debt instrument, convertible, business days | tradingDay | 5 | ||||||||||||||||||
Threshold trading days measurement period | tradingDay | 10 | ||||||||||||||||||
Debt instrument, measurement period percentage | 98% | ||||||||||||||||||
Debt instrument, conversation price (in dollars per share) | $ / shares | $ 46.81 | $ 46.81 | |||||||||||||||||
Debt instrument convertible premium | 0.20 | ||||||||||||||||||
Repurchase price, percentage | 1 | ||||||||||||||||||
Phase In Recovery Bonds | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Long-term debt and other long-term obligations | $ 191 | $ 206 | $ 191 | $ 206 | |||||||||||||||
Phase In Recovery Bonds | Ohio Funding Companies | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Face amount of loan | $ 445 | ||||||||||||||||||
2026 Convertible Notes | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, convertible, conversion ratio | 0.021362 | ||||||||||||||||||
2026 Convertible Notes | Unsecured Debt | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Interest Rate | 4% |
CAPITALIZATION - Preferred and
CAPITALIZATION - Preferred and Preference Stock (Details) | Dec. 31, 2023 $ / shares shares |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 5,000,000 |
Par Value (in dollars per share) | $ / shares | $ 100 |
Penn(1) | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 1,200,000 |
Par Value (in dollars per share) | $ / shares | $ 100 |
CEI | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 4,000,000 |
JCP&L | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 15,600,000 |
ME(1) | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 10,000,000 |
PN(1) | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 11,435,000 |
PE | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 10,000,000 |
Par Value (in dollars per share) | $ / shares | $ 0.01 |
WP(1) | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 32,000,000 |
Preferred Stock With Par Value $100 | OE | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 6,000,000 |
Par Value (in dollars per share) | $ / shares | $ 100 |
Preferred Stock With Par Value $100 | TE | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 3,000,000 |
Par Value (in dollars per share) | $ / shares | $ 100 |
Preferred Stock With Par Value $100 | MP | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 940,000 |
Par Value (in dollars per share) | $ / shares | $ 100 |
Preferred Stock With Par Value $25 | OE | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 8,000,000 |
Par Value (in dollars per share) | $ / shares | $ 25 |
Preferred Stock With Par Value $25 | TE | |
Preferred stock and preference stock authorizations | |
Shares Authorized (in shares) | 12,000,000 |
Par Value (in dollars per share) | $ / shares | $ 25 |
Preference Stock | OE | |
Preferred stock and preference stock authorizations | |
Preference Shares Authorized (in shares) | 8,000,000 |
Preference Stock | CEI | |
Preferred stock and preference stock authorizations | |
Preference Shares Authorized (in shares) | 3,000,000 |
Preference Stock | TE | |
Preferred stock and preference stock authorizations | |
Preference Shares Authorized (in shares) | 5,000,000 |
Preference Stock Par Value (in dollars per share) | $ / shares | $ 25 |
CAPITALIZATION - Long-term Debt
CAPITALIZATION - Long-term Debt and Other Long-term Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Capitalization [Line Items] | ||
Finance lease obligations | $ 14 | $ 23 |
Unamortized debt discounts | (9) | (5) |
Unamortized debt issuance costs | (127) | (110) |
Unamortized fair value adjustments | 3 | 5 |
Currently payable long-term debt | (1,250) | (351) |
Total long-term debt and other long-term obligations | 22,885 | 21,203 |
FMBs and secured notes - fixed rate | ||
Schedule of Capitalization [Line Items] | ||
FMBs and secured notes - fixed rate | $ 5,709 | 5,153 |
FMBs and secured notes - fixed rate | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 2.65% | |
FMBs and secured notes - fixed rate | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 8.25% | |
Unsecured notes - fixed rate | ||
Schedule of Capitalization [Line Items] | ||
Unsecured notes - fixed rate | $ 18,545 | $ 16,488 |
Unsecured notes - fixed rate | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 1.60% | |
Unsecured notes - fixed rate | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 7.375% |
CAPITALIZATION - Schedule of Lo
CAPITALIZATION - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Repayments of debt | $ 537 | $ 3,005 | $ 532 |
Debt issuance costs | 2 | ||
Debt issuance costs, after tax | 1 | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Open market discount | 34 | ||
Open market discount, net | $ 27 | ||
3.50% Unsecured Notes Due March, 2023 | Promissory Notes | ME | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.50% | ||
Face amount of loan | $ 300 | ||
7.38% Unsecured Notes Due May, 2031 | Promissory Notes | FE | |||
Debt Instrument [Line Items] | |||
Interest Rate | 7.38% | ||
Face amount of loan | $ 194 | ||
7.38% Unsecured Notes Due May, 2031 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt and other long-term obligations | 194 | ||
Repayments of debt | $ 228 | ||
5.29% Notes Due January, 2033 | First Mortgage Bond | WP | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.29% | ||
Face amount of loan | $ 50 | ||
5.39% Unsecured Notes Due February, 2033 | Promissory Notes | MAIT | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.39% | ||
Face amount of loan | $ 175 | ||
5.20% Unsecured Notes Due March, 2028 | Promissory Notes | ME | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.20% | ||
Face amount of loan | $ 425 | ||
5.15% Unsecured Notes Due March, 2026 | Promissory Notes | PN | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.15% | ||
Face amount of loan | $ 300 | ||
5.13% Unsecured Notes Due May, 2033 | Promissory Notes | ATSI | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.13% | ||
Face amount of loan | $ 150 | ||
4.00% Unsecured Convertible Notes Due May, 2026 | Unsecured Convertible Notes | FE | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4% | ||
Face amount of loan | $ 1,500 | ||
5.64% Notes Due September, 2028 | First Mortgage Bond | PE | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.64% | ||
Face amount of loan | $ 100 | ||
5.73% Notes Due September, 2030 | First Mortgage Bond | PE | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.73% | ||
Face amount of loan | $ 50 | ||
5.85% Notes Due September, 2034 | First Mortgage Bond | MP | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.85% | ||
Face amount of loan | $ 400 | ||
4.10% Notes Due April, 2024 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.10% | ||
Long-term debt and other long-term obligations | $ 400 | ||
3.50%, Unsecured Notes Maturing Mar 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.50% | ||
Long-term debt and other long-term obligations | $ 300 |
CAPITALIZATION - Sinking Fund R
CAPITALIZATION - Sinking Fund Requirements (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Capitalization, Long-Term Debt and Equity [Abstract] | |
2024 | $ 1,246 |
2025 | 2,023 |
2026 | 2,876 |
2027 | 2,003 |
2028 | $ 2,453 |
SHORT-TERM BORROWINGS AND BAN_3
SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT - Narrative (Details) | 12 Months Ended | ||||
Oct. 20, 2023 USD ($) | Oct. 18, 2021 USD ($) agreement | Dec. 31, 2023 USD ($) | Dec. 31, 2021 | Dec. 31, 2022 USD ($) | |
Short-term Debt [Line Items] | |||||
Short-term debt, weighted average interest rate, at point in time | 6.96% | 3.93% | |||
Short-term borrowings | $ 775,000,000 | $ 100,000,000 | |||
Minimum | Available for Issuance of Letters of Credit | |||||
Short-term Debt [Line Items] | |||||
Cross-default provision for other indebtedness | $ 100,000,000 | ||||
Maximum | Money Pool | |||||
Short-term Debt [Line Items] | |||||
Debt term | 364 days | ||||
Revolving Credit Facility | Line of Credit | |||||
Short-term Debt [Line Items] | |||||
Maximum amount borrowed under revolving credit facility | $ 1,000,000,000 | $ 4,500,000,000 | |||
Line of credit facility, remaining borrowing capacity | $ 5,000,000,000 | ||||
Number of agreements | agreement | 6 | ||||
Revolving Credit Facility | Line of Credit | Parent, FET, the Utilities and the Transmission Companies | |||||
Short-term Debt [Line Items] | |||||
Debt term | 5 years | ||||
Revolving Credit Facility | Line of Credit | Ohio Companies | |||||
Short-term Debt [Line Items] | |||||
Maximum amount borrowed under revolving credit facility | 800,000,000 | ||||
Revolving Credit Facility | Line of Credit | Pennsylvania Companies | |||||
Short-term Debt [Line Items] | |||||
Maximum amount borrowed under revolving credit facility | 950,000,000 | ||||
Revolving Credit Facility | Line of Credit | JCP&L | |||||
Short-term Debt [Line Items] | |||||
Maximum amount borrowed under revolving credit facility | 500,000,000 | ||||
Revolving Credit Facility | Line of Credit | MP and PE | |||||
Short-term Debt [Line Items] | |||||
Maximum amount borrowed under revolving credit facility | 400,000,000 | ||||
Revolving Credit Facility | Line of Credit | Transmission companies | |||||
Short-term Debt [Line Items] | |||||
Maximum amount borrowed under revolving credit facility | 850,000,000 | ||||
Revolving Credit Facility | Line of Credit | KATCo | |||||
Short-term Debt [Line Items] | |||||
Maximum amount borrowed under revolving credit facility | $ 150,000,000 | ||||
Debt term | 364 days | ||||
Revolving Credit Facility | Line of Credit | FET, the Utilities and the Transmission Companies | |||||
Short-term Debt [Line Items] | |||||
Coverage ratio | 250% | ||||
Revolving Credit Facility | Line of Credit | FET | |||||
Short-term Debt [Line Items] | |||||
Maximum amount borrowed under revolving credit facility | $ 1,000,000,000 | ||||
Revolving Credit Facility | Line of Credit | Minimum | FET, the Utilities and the Transmission Companies | |||||
Short-term Debt [Line Items] | |||||
Consolidated debt to total capitalization ratio (percent) | 65% | ||||
Revolving Credit Facility | Line of Credit | Maximum | Parent, FET, the Utilities and the Transmission Companies | |||||
Short-term Debt [Line Items] | |||||
Debt term | 364 days | ||||
Revolving Credit Facility | Line of Credit | Maximum | FET, the Utilities and the Transmission Companies | |||||
Short-term Debt [Line Items] | |||||
Consolidated debt to total capitalization ratio (percent) | 75% | ||||
Letter of Credit | Line of Credit | |||||
Short-term Debt [Line Items] | |||||
Debt term | 1 year | ||||
Letter of Credit | Line of Credit | FE | |||||
Short-term Debt [Line Items] | |||||
Outstanding borrowings | $ 4,000,000 |
SHORT-TERM BORROWINGS AND BAN_4
SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT - Schedule of Interest Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Regulated Companies’ Money Pool | ||
Short-term Debt [Line Items] | ||
Average Interest Rates | 6.30% | 2.27% |
Unregulated Companies’ Money Pool | ||
Short-term Debt [Line Items] | ||
Average Interest Rates | 6.01% | 2.14% |
REGULATORY MATTERS - Distributi
REGULATORY MATTERS - Distribution Rate Orders (Details) | 12 Months Ended |
Dec. 31, 2023 | |
CEI [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 51% |
Allowed Equity | 49% |
Approved ROE | 10.50% |
ME | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 48.80% |
Allowed Equity | 51.20% |
MP | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 54% |
Allowed Equity | 46% |
JCP&L | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 48.60% |
Allowed Equity | 51.40% |
Approved ROE | 9.60% |
MAIT | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 51% |
Allowed Equity | 49% |
Approved ROE | 10.50% |
PE | West Virginia | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 51% |
Allowed Equity | 49% |
PE | Maryland | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 47% |
Allowed Equity | 53% |
Approved ROE | 9.50% |
PN | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 47.40% |
Allowed Equity | 52.60% |
Penn | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 49.90% |
Allowed Equity | 50.10% |
TE | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 51% |
Allowed Equity | 49% |
Approved ROE | 10.50% |
WP | |
Public Utilities, General Disclosures [Line Items] | |
Allowed debt | 49.70% |
Allowed Equity | 50.30% |
REGULATORY MATTERS - Maryland a
REGULATORY MATTERS - Maryland and New Jersey (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 01, 2024 USD ($) circuit | Jan. 03, 2024 USD ($) | Dec. 29, 2023 USD ($) | Dec. 05, 2023 USD ($) | Dec. 01, 2023 USD ($) program | Nov. 09, 2023 USD ($) | Oct. 31, 2023 MW windFarm | Oct. 18, 2023 USD ($) | Aug. 07, 2023 USD ($) | Aug. 01, 2023 USD ($) | Jul. 17, 2023 USD ($) | Apr. 17, 2023 USD ($) | Mar. 22, 2023 USD ($) program | Mar. 16, 2023 USD ($) program | Oct. 26, 2022 USD ($) | Nov. 01, 2021 | Oct. 28, 2020 USD ($) | Apr. 30, 2021 USD ($) | Dec. 31, 2023 | |
Maryland | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Increase base distribution rate | $ 28,000,000 | ||||||||||||||||||
Maryland | Subsequent Event | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Increase base distribution rate | $ 700,000 | ||||||||||||||||||
PE | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Amount of requested rate increase | $ 50,400,000 | ||||||||||||||||||
PE | FERC | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Support costs | $ 12,000,000 | ||||||||||||||||||
PE | Maryland | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Number of service reliability and resiliency programs | program | 3 | ||||||||||||||||||
Number of programs | program | 2 | ||||||||||||||||||
Incremental energy savings goal per year (percent) | 0.20% | ||||||||||||||||||
Incremental energy savings goal thereafter (percent) | 2% | ||||||||||||||||||
PE | Maryland | Power Purchase Agreements | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Annual termination fee | $ 51,000,000 | ||||||||||||||||||
Amount of termination fee | 357,000,000 | ||||||||||||||||||
PE | Maryland | Power Purchase Agreements | Other Current Liabilities | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Amount of termination fee | 55,000,000 | ||||||||||||||||||
PE | Maryland | Power Purchase Agreements | Other Noncurrent Liabilities | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Amount of termination fee | $ 302,000,000 | ||||||||||||||||||
PE | Maryland | 2021-2023 EmPOWER Program Cycle | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Amortization period | 5 years | ||||||||||||||||||
PE | Maryland | 2024-2026 EmPOWER Program Cycle | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Recovery period for expenditures for cost recovery program | 3 years | ||||||||||||||||||
Public utilities, requested cost percentage, year one | 0.33 | ||||||||||||||||||
Public utilities, requested cost percentage, year two | 0.67 | ||||||||||||||||||
Public utilities, requested cost percentage, year three | 1 | ||||||||||||||||||
Public utilities, requested year one | $ 310,000,000 | ||||||||||||||||||
Public utilities, requested year two | 354,000,000 | ||||||||||||||||||
Public utilities, requested year three | $ 510,000,000 | ||||||||||||||||||
Approved amount of rate increase (decrease) | $ 310,000,000 | ||||||||||||||||||
JCP And L | New Jersey | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Approved amount of rate increase (decrease) | $ 723,000,000 | ||||||||||||||||||
Approved ROE | 10.20% | ||||||||||||||||||
Public utility, offshore development, percent | 20% | ||||||||||||||||||
Recovery of transmission incentive rates, percentage | 100% | ||||||||||||||||||
Recovery of transmission incentive rates, percentage | 50% | ||||||||||||||||||
Number of cease development | windFarm | 2 | ||||||||||||||||||
Plant capacity (in MW's) | MW | 2,248 | ||||||||||||||||||
JCP And L | New Jersey | NJBPU | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Amount of requested rate increase | $ 31,000,000 | ||||||||||||||||||
Amount of revenue increase | $ 94,000,000 | ||||||||||||||||||
Requested increase to ROE | 9.60% | ||||||||||||||||||
JCP And L | New Jersey | NJBPU | Energy Efficiency and Peak Demand Reduction Stipulation Settlement | Utilities and Transmission Companies | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Amount of requested rate increase | $ 69,300,000 | $ 203,000,000 | |||||||||||||||||
Increase base distribution rate | $ 192,000,000 | $ 185,000,000 | |||||||||||||||||
Number of proposed programs | program | 2 | ||||||||||||||||||
Approved rate plan period | 3 years | ||||||||||||||||||
Approved amount of investment recovery over amortization period | $ 160,000,000 | ||||||||||||||||||
Approved amount of operation costs and maintenance recovery | $ 43,000,000 | ||||||||||||||||||
Number of extension period | 6 months | ||||||||||||||||||
Revised requested rate increase | $ 964,000,000 | ||||||||||||||||||
Number of energy program | program | 10 | ||||||||||||||||||
Number of peak demand reduction program | program | 1 | ||||||||||||||||||
Building decarbonization program | program | 1 | ||||||||||||||||||
JCP And L | New Jersey | NJBPU | Energy Efficiency and Peak Demand Reduction | Utilities and Transmission Companies | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Amortization period | 10 years | ||||||||||||||||||
JCP And L | New Jersey | Subsequent Event | NJBPU | Energy Efficiency and Peak Demand Reduction Stipulation Settlement | Utilities and Transmission Companies | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Increase base distribution rate | $ 85,000,000 | ||||||||||||||||||
Remaining amount of regulatory liability amortization | 18,000,000 | ||||||||||||||||||
Initial investment | $ 95 | ||||||||||||||||||
Number of high-priority circuits | circuit | 18 | ||||||||||||||||||
JCP&L | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Approved ROE | 9.60% | ||||||||||||||||||
JCP&L | New Jersey | NJBPU | Energy Efficiency and Peak Demand Reduction | Utilities and Transmission Companies | |||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||
Amount of requested rate increase | $ 935,000,000 | ||||||||||||||||||
Amount of requested rate increase, capital commitments | 906,000,000 | ||||||||||||||||||
Amount of requested rate increase, operating and maintenance expense | $ 29,000,000 |
REGULATORY MATTERS - Ohio (Deta
REGULATORY MATTERS - Ohio (Details) - PUCO meter in Thousands, $ in Thousands | Apr. 05, 2023 USD ($) | Jul. 15, 2022 USD ($) circuit meter | Jun. 01, 2016 USD ($) | Sep. 13, 2021 requirement | Aug. 06, 2021 USD ($) |
Ohio Companies | |||||
Regulatory Matters [Line Items] | |||||
Commitment to spend | $ 52,000 | ||||
Minimum | Ohio Companies | |||||
Regulatory Matters [Line Items] | |||||
Approved rate plan period | 8 years | ||||
Amount of revenue increase | $ 15,000 | ||||
Maximum | Ohio Companies | |||||
Regulatory Matters [Line Items] | |||||
Amount of revenue increase | $ 21,000 | ||||
Ohio | |||||
Regulatory Matters [Line Items] | |||||
Proposed goal to reduce CO2 pollution (percent) | 90% | ||||
Ohio | Energy Conservation, Economic Development and Job Retention | |||||
Regulatory Matters [Line Items] | |||||
Contribution amount | $ 51,000 | ||||
Ohio | DCR Rider | |||||
Regulatory Matters [Line Items] | |||||
Annual revenue cap for rider for years three through six | 20,000 | ||||
Annual revenue cap for rider for years six through eight | $ 15,000 | ||||
Ohio | Phase Two of Grid Modernization Plan | Ohio Companies | |||||
Regulatory Matters [Line Items] | |||||
Numbers of additional meters to be installed | meter | 700 | ||||
Number of circuits additional automation equipment to be installed on | circuit | 240 | ||||
Number of circuits additional voltage regulating equipment to be installed on | circuit | 220 | ||||
Period of grid modernization plan | 4 years | ||||
Requested amount of capital investments | $ 626,000 | ||||
Requested amount of operations and maintenance expenses | $ 144,000 | ||||
Ohio | Rider Delivery Capital Recovery Audit Report | Ohio Companies | |||||
Regulatory Matters [Line Items] | |||||
Refund to customer of pole attachment rates | $ 15 | ||||
Number of minor non-compliance with requirements | requirement | 8 | ||||
Number of requirements were in compliance | requirement | 23 |
REGULATORY MATTERS - Pennsylvan
REGULATORY MATTERS - Pennsylvania and West Virginia (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 23, 2024 USD ($) | Nov. 30, 2023 USD ($) | Aug. 31, 2023 USD ($) | Aug. 30, 2023 USD ($) | Aug. 22, 2023 USD ($) | May 31, 2023 USD ($) | Apr. 24, 2023 MW | Mar. 06, 2023 USD ($) | Jan. 13, 2023 USD ($) | Aug. 25, 2022 USD ($) MW | May 01, 2022 | Nov. 22, 2021 MW site | Jan. 16, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | |
Transmission Related Vegetation Management Programs | FERC | FE | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Utilities reclassification to operating expense | $ 105,000 | $ 13,000 | |||||||||||||
Pennsylvania | PPUC | Pennsylvania Companies | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Recovery period | 5 years | ||||||||||||||
Public utilities, settlement amount | $ 650 | ||||||||||||||
Pennsylvania | ENEC Phase IV | PPUC | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Public utilities, approved energy consumption reduction targets, cost recovery | $ 390,000 | ||||||||||||||
Pennsylvania | ENEC Phase IV | PPUC | ME | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Demand reduction targets | 2.90% | ||||||||||||||
Energy consumption reduction targets | 3.10% | ||||||||||||||
Pennsylvania | ENEC Phase IV | PPUC | PN | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Demand reduction targets | 3.30% | ||||||||||||||
Energy consumption reduction targets | 3% | ||||||||||||||
Pennsylvania | ENEC Phase IV | PPUC | Penn | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Demand reduction targets | 2% | ||||||||||||||
Energy consumption reduction targets | 2.70% | ||||||||||||||
Pennsylvania | ENEC Phase IV | PPUC | WP | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Demand reduction targets | 2.50% | ||||||||||||||
Energy consumption reduction targets | 2.40% | ||||||||||||||
Pennsylvania | New LTIP's | PPUC | Pennsylvania Companies | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Recovery period | 5 years | 5 years | |||||||||||||
Amount of requested rate increase | $ 572,000 | $ 572,000 | |||||||||||||
West Virginia | WVPSC | MP and PE | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Amount of requested rate increase | $ 17,000 | $ 207,000 | |||||||||||||
Requested amount of annual depreciation expense | $ 76,000 | $ 76,000 | |||||||||||||
Increase in annual amount of depreciation expense | $ 33,000 | ||||||||||||||
Recovery period for expenditures for cost recovery program | 2 years | ||||||||||||||
West Virginia | WVPSC | MP and PE | Subsequent Event | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Approved amount of rate increase (decrease) | $ 105,000 | ||||||||||||||
Increase in annual amount of depreciation expense | $ 33,000 | ||||||||||||||
West Virginia | WVPSC | MP and PE | Solar Generation Project | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Plant capacity (in MW's) | MW | 30 | 50 | |||||||||||||
Number of solar sites | site | 5 | ||||||||||||||
Percent of subscriptions required prior to commencement | 85% | ||||||||||||||
Expected cost of the program | $ 110,000 | ||||||||||||||
Number of approved solar sites | site | 3 | ||||||||||||||
West Virginia | ENEC | WVPSC | MP and PE | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Amount of requested rate increase | $ 167,500 | $ 183,800 | |||||||||||||
Under recovered amount, percent | 9.90% | 12.20% | |||||||||||||
Supplemental requested decrease | $ 267,000 | $ 145,000 | |||||||||||||
Approved amount of rate increase (decrease) | $ 55,400 | $ 92,000 | |||||||||||||
Recovery amounts | 50,000 | ||||||||||||||
Approved ROE | 4% | ||||||||||||||
Plant capacity (in MW's) | MW | 1,300 | ||||||||||||||
Deferred requested rate increase | 92,000 | ||||||||||||||
Amount not recovered | $ 75,600 | ||||||||||||||
West Virginia | Expanded Net Energy Cost Through 2026 | WVPSC | MP and PE | |||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||
Approved amount of rate increase (decrease) | $ 255,000 |
REGULATORY MATTERS - Reliabilit
REGULATORY MATTERS - Reliability and FERC Matters (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Feb. 24, 2022 | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | |
FE | Transmission Related Vegetation Management Programs | FERC | |||
Regulatory Matters [Line Items] | |||
Refund payments | $ 45 | ||
Refund payments, net | 34 | ||
Capital assets reclassified into earnings | 195 | ||
Utilities operating expense | 90 | ||
Utilities operating expense, net | 67 | ||
Utilities reclassification to operating expense | 105 | $ 13 | |
Utilities reduction in operating expense | 160 | ||
Utilities cooperate support | $ 310 | ||
Utilities, transmission owing utilities join an RTO | 0.00500000 | ||
JCP&L | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 9.60% | ||
Allowed debt | 48.60% | ||
Approved capital structure | 51.40% | ||
MP | |||
Regulatory Matters [Line Items] | |||
Allowed debt | 54% | ||
Approved capital structure | 46% | ||
WP | |||
Regulatory Matters [Line Items] | |||
Allowed debt | 49.70% | ||
Approved capital structure | 50.30% | ||
Regulated Transmission | FERC | |||
Regulatory Matters [Line Items] | |||
Pre-tax impairment of regulatory asset | $ 25 | ||
Regulated Transmission | ATSI | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 10.38% | ||
Regulated Transmission | JCP&L | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 10.20% | ||
Regulated Transmission | MP | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 10.45% | ||
Allowed debt | 56% | ||
Regulated Transmission | PE | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 10.45% | ||
Allowed debt | 56% | ||
Regulated Transmission | WP | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 10.45% | ||
Allowed debt | 56% | ||
Regulated Transmission | MAIT | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 10.30% | ||
Allowed debt | 60% | ||
Regulated Transmission | TrAIL | All Other Projects | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 11.70% | ||
Regulated Transmission | TrAIL | TrAIL the Line and Black Oak SVC | |||
Regulatory Matters [Line Items] | |||
Approved ROE | 12.70% |
COMMITMENTS, GUARANTEES AND C_3
COMMITMENTS, GUARANTEES AND CONTINGENCIES - Narrative (Details) $ in Thousands | 12 Months Ended | |||||
Feb. 09, 2022 USD ($) | Jul. 21, 2021 USD ($) | Oct. 29, 2020 USD ($) review | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | |
Guarantor Obligations [Line Items] | ||||||
Outstanding guarantees and other assurances aggregated | $ 815,000 | |||||
Company posted collateral related to net liability positions | 89,000 | |||||
Collateral received | $ 27,000 | |||||
Percent of face amount of debt | 100% | |||||
Curing period | 30 days | |||||
Environmental loss contingency statement of financial position extensible enumeration not disclosed flag | Environmental liabilities | |||||
Civil penalty | $ 3,860 | |||||
Number of compliance reviews | review | 2 | |||||
Climate change | ||||||
Guarantor Obligations [Line Items] | ||||||
Proposed goal to reduce CO2 pollution (percent) | 30% | |||||
Chief Executive Officer | Code of Conduct Violation, Recoupment Amount | ||||||
Guarantor Obligations [Line Items] | ||||||
Proposed penalty | $ 56,000 | |||||
United States v. Householder, et al. | U.S. Attorney's Office | ||||||
Guarantor Obligations [Line Items] | ||||||
Term of DPA | 3 years | |||||
Loss in period | $ 230,000 | |||||
Term of payments | 60 days | |||||
United States v. Householder, et al. | United States Treasury | ||||||
Guarantor Obligations [Line Items] | ||||||
Proposed penalty | $ 115,000 | |||||
United States v. Householder, et al. | Ohio Development Service | ||||||
Guarantor Obligations [Line Items] | ||||||
Proposed penalty | $ 115,000 | |||||
Smith v FirstEnergy Corp et al., Buldas v FirstEnergy Corp. et al., and Hudock and Cameo Countertops, Inc. v. FirstEnergy Corp. et al. | ||||||
Guarantor Obligations [Line Items] | ||||||
Loss contingency accrual | $ 37,500 | |||||
Emmons v. FirstEnergy Corp. et al. | ||||||
Guarantor Obligations [Line Items] | ||||||
Loss contingency accrual | $ 37,500 | |||||
Shareholder Derivative Lawsuit | ||||||
Guarantor Obligations [Line Items] | ||||||
Proposed penalty | $ 36,000 | |||||
Settlement payment awarded | $ 180,000 | |||||
Regulation of Waste Disposal | ||||||
Guarantor Obligations [Line Items] | ||||||
Accrual for environmental loss contingencies | $ 96,000 | |||||
Environmental liabilities former gas facilities | $ 75,000 | |||||
Surety Bonds (collateralized amount) | ||||||
Guarantor Obligations [Line Items] | ||||||
Percent of face amount of debt | 60% | |||||
Capped portion of surety bond obligations | $ 39,000 | |||||
FE | ||||||
Guarantor Obligations [Line Items] | ||||||
Outstanding guarantees and other assurances aggregated | 515,000 | |||||
Other Assurances | ||||||
Guarantor Obligations [Line Items] | ||||||
Outstanding guarantees and other assurances aggregated | $ 300,000 |
COMMITMENTS, GUARANTEES AND C_4
COMMITMENTS, GUARANTEES AND CONTINGENCIES - Potential Collateral Obligations (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | $ 227 |
Upon Further Downgrade | |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | 62 |
Surety Bonds (collateralized amount) | |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | 165 |
FE | |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | 79 |
FE | Upon Further Downgrade | |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | 0 |
FE | Surety Bonds (collateralized amount) | |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | 79 |
Utilities and Transmission Companies | |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | 148 |
Utilities and Transmission Companies | Upon Further Downgrade | |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | 62 |
Utilities and Transmission Companies | Surety Bonds (collateralized amount) | |
Guarantor Obligations [Line Items] | |
Potential additional collateral obligations | $ 86 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) mi² in Thousands, $ in Millions | 12 Months Ended | ||||
Feb. 02, 2023 USD ($) | Dec. 31, 2023 USD ($) mi² customer MW | Jan. 01, 2024 | Apr. 27, 2023 USD ($) | May 31, 2022 | |
FET | |||||
Segment Reporting Information [Line Items] | |||||
Noncontrolling interest ownership percentage | 49.90% | 19.90% | |||
Brookfield II | FET | |||||
Segment Reporting Information [Line Items] | |||||
Sale of ownership interest by parent | 30% | 30% | |||
Noncontrolling interest ownership percentage | 49.90% | ||||
FE | FET | |||||
Segment Reporting Information [Line Items] | |||||
Equity method investment, ownership percentage | 50.10% | ||||
FET | Brookfield II | |||||
Segment Reporting Information [Line Items] | |||||
Sale of ownership interest by parent | 19.90% | 19.90% | |||
Consideration | $ 3,500 | $ 3,500 | |||
Liabilities incurred | $ 1,750 | ||||
FEV | Global Holding | |||||
Segment Reporting Information [Line Items] | |||||
Investment ownership percentage | 33.33% | ||||
FEV | Global Holding | Subsequent Event | |||||
Segment Reporting Information [Line Items] | |||||
Investment ownership percentage | 33.33% | ||||
Utilities and Transmission Companies | |||||
Segment Reporting Information [Line Items] | |||||
Number of customers | customer | 6,000,000 | ||||
Service Area | mi² | 65 | ||||
Plant generation capacity (in MW's) | MW | 3,580 | ||||
Other Business Operations [Member] | FE | |||||
Segment Reporting Information [Line Items] | |||||
Long-term debt and other long-term obligations | $ 7,100 | ||||
Other Business Operations [Member] | OVEC | |||||
Segment Reporting Information [Line Items] | |||||
Plant generation capacity (in MW's) | MW | 67 |
SEGMENT INFORMATION - Segment F
SEGMENT INFORMATION - Segment Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Financial Information | |||||
Total revenues | [1] | $ 12,870 | $ 12,459 | $ 11,132 | |
Total depreciation | 1,461 | 1,375 | 1,302 | ||
Total amortization (deferral) of regulatory assets, net | (261) | (365) | 269 | ||
Total DPA penalty | 0 | 0 | 230 | ||
Total equity method investment earnings | 175 | 168 | 31 | ||
Total interest expense | 1,124 | 1,039 | 1,139 | ||
Income taxes (benefits) | $ 65 | 267 | 1,000 | 320 | |
Total earnings attributable to FE from continuing operations | 1,123 | 406 | 1,239 | ||
Total capital investments | 3,356 | 2,848 | 2,487 | ||
Assets | 48,767 | 46,108 | |||
Goodwill | 5,618 | 5,618 | |||
External revenues | |||||
Segment Financial Information | |||||
Total revenues | 12,870 | 12,459 | 11,132 | ||
Internal revenues | |||||
Segment Financial Information | |||||
Total revenues | 0 | 0 | 0 | ||
Regulated Distribution | |||||
Segment Financial Information | |||||
Goodwill | 5,004 | 5,004 | |||
Operating Segments | Regulated Distribution | |||||
Segment Financial Information | |||||
Total revenues | 11,038 | 10,801 | 9,711 | ||
Total depreciation | 1,021 | 967 | 911 | ||
Total amortization (deferral) of regulatory assets, net | (256) | (362) | 260 | ||
Total equity method investment earnings | 0 | 0 | 0 | ||
Total interest expense | 618 | 526 | 522 | ||
Income taxes (benefits) | 167 | 251 | 364 | ||
Total earnings attributable to FE from continuing operations | 740 | 957 | 1,288 | ||
Total capital investments | 1,631 | 1,605 | 1,437 | ||
Assets | 32,929 | 31,749 | |||
Goodwill | 5,004 | 5,004 | |||
Operating Segments | Regulated Distribution | External revenues | |||||
Segment Financial Information | |||||
Total revenues | 10,810 | 10,569 | 9,510 | ||
Operating Segments | Regulated Distribution | Internal revenues | |||||
Segment Financial Information | |||||
Total revenues | 228 | 232 | 201 | ||
Operating Segments | Regulated Transmission | |||||
Segment Financial Information | |||||
Total revenues | 2,054 | 1,868 | 1,618 | ||
Total depreciation | 367 | 335 | 325 | ||
Total amortization (deferral) of regulatory assets, net | (5) | (3) | 9 | ||
Total equity method investment earnings | 0 | 0 | 0 | ||
Total interest expense | 256 | 230 | 247 | ||
Income taxes (benefits) | 179 | 110 | 127 | ||
Total earnings attributable to FE from continuing operations | 514 | 361 | 408 | ||
Total capital investments | 1,610 | 1,192 | 958 | ||
Assets | 15,155 | 13,835 | |||
Goodwill | 614 | 614 | |||
Operating Segments | Regulated Transmission | External revenues | |||||
Segment Financial Information | |||||
Total revenues | 2,049 | 1,863 | 1,608 | ||
Operating Segments | Regulated Transmission | Internal revenues | |||||
Segment Financial Information | |||||
Total revenues | 5 | 5 | 10 | ||
Corporate/Other | |||||
Segment Financial Information | |||||
Total revenues | (222) | (210) | (197) | ||
Total depreciation | 4 | 7 | 3 | ||
Total amortization (deferral) of regulatory assets, net | 0 | 0 | 0 | ||
Total DPA penalty | 0 | 0 | 230 | ||
Total equity method investment earnings | 175 | 168 | 31 | ||
Total interest expense | 334 | 350 | 382 | ||
Income taxes (benefits) | (79) | 639 | (171) | ||
Total earnings attributable to FE from continuing operations | (131) | (912) | (457) | ||
Total capital investments | 115 | 51 | 92 | ||
Assets | 683 | 524 | |||
Goodwill | 0 | 0 | |||
Corporate/Other | External revenues | |||||
Segment Financial Information | |||||
Total revenues | 11 | 27 | 14 | ||
Corporate/Other | Internal revenues | |||||
Segment Financial Information | |||||
Total revenues | 0 | 0 | 0 | ||
Reconciling Adjustments | |||||
Segment Financial Information | |||||
Total depreciation | 69 | 66 | 63 | ||
Total amortization (deferral) of regulatory assets, net | 0 | 0 | 0 | ||
Total equity method investment earnings | 0 | 0 | 0 | ||
Total interest expense | (84) | (67) | (12) | ||
Income taxes (benefits) | 0 | 0 | 0 | ||
Total earnings attributable to FE from continuing operations | 0 | 0 | 0 | ||
Total capital investments | 0 | 0 | 0 | ||
Assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Reconciling Adjustments | External revenues | |||||
Segment Financial Information | |||||
Total revenues | 0 | 0 | 0 | ||
Reconciling Adjustments | Internal revenues | |||||
Segment Financial Information | |||||
Total revenues | $ (233) | $ (237) | $ (211) | ||
[1]Includes excise and gross receipts tax collections of $420 million, $406 million and $374 million in 2023, 2022 and 2021, respectively. |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Feb. 27, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Worthless stock deduction | $ 4,900 | $ 5,200 | ||
Unrecognized tax benefits from worthless stock deduction | 316 | |||
Worthless stock deduction, net of tax | 1,100 | |||
Increase in NOL allocation | $ 289 | |||
Increase in NOL allocation tax effected | $ 61 | |||
Revision of Prior Period, Adjustment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred tax assets, valuation allowance | $ 21 | |||
State and Local | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Worthless stock deduction, net of tax | $ 21 | |||
FES Key Creditor Groups | Affiliated companies | FES | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Settlement of claims upon emergence | 853 | |||
IT Access Agreement | Affiliated companies | FES | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Amount paid to settle claims | $ 125 |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summarized Results of Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax benefit | $ (21) | $ (48) | ||
Income from discontinued operations | [1] | (21) | $ 0 | 44 |
FES and FENOC | Discontinued Operations, Disposed of by Means Other than Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other expense, net | 0 | 0 | (4) | |
Loss from discontinued operations, before tax | 0 | 0 | (4) | |
Income tax benefit | 0 | 0 | (1) | |
Loss from discontinued operations, net of tax | 0 | 0 | (3) | |
Income tax expense (benefit), including worthless stock deduction | 21 | 0 | (47) | |
Gain (loss) on disposal, net of tax | (21) | 0 | 47 | |
Income from discontinued operations | $ (21) | $ 0 | $ 44 | |
[1]Net of income tax benefit (expense) of ($21 million) and $48 million in 2023 and 2021, respectively. |
DISCONTINUED OPERATIONS - Major
DISCONTINUED OPERATIONS - Major Classes of Cash Flow Items from Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Income (loss) from discontinued operations | [1] | $ (21) | $ 0 | $ 44 |
Disposal group not discontinued operation gain loss on disposal statement of income extensible list not disclosed flag | Loss (gain) on disposal, net of tax | Loss (gain) on disposal, net of tax | Loss (gain) on disposal, net of tax | |
FES and FENOC | Discontinued Operations, Disposed of by Means Other than Sale | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Income (loss) from discontinued operations | $ (21) | $ 0 | $ 44 | |
Loss (gain) on disposal, net of tax | $ 21 | $ 0 | $ (47) | |
[1]Net of income tax benefit (expense) of ($21 million) and $48 million in 2023 and 2021, respectively. |