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Pension and Other Postemployment Benefits (Tables) | 12 Months Ended
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Dec. 31, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] |
Obligations and Funded Status |
|  | Pension |  | OPEB
Obligations and Funded Status - Qualified and Non-Qualified Plans |  | 2019 |  | 2018 |  | 2019 |  | 2018
|  | (In millions)
Change in benefit obligation: |  |  |  |  |  |  |  |
Benefit obligation as of January 1 |  | $ | 9,462 |  |  | $ | 10,167 |  |  | $ | 608 |  |  | $ | 731 |
Service cost |  | 193 |  |  | 224 |  |  | 3 |  |  | 5 |
Interest cost |  | 373 |  |  | 372 |  |  | 22 |  |  | 25 |
Plan participants’ contributions |  | — |  |  | — |  |  | 4 |  |  | 3 |
Plan amendments |  | 2 |  |  | 5 |  |  | — |  |  | 5 |
Special termination benefits |  | 14 |  |  | 31 |  |  | — |  |  | 8 |
Medicare retiree drug subsidy |  | — |  |  | — |  |  | 1 |  |  | 1 |
Annuity purchase |  | — |  |  | (129 | ) |  | — |  |  | — |
Actuarial (gain) loss |  | 1,535 |  |  | (710 | ) |  | 64 |  |  | (121 | )
Benefits paid |  | (529 | ) |  | (498 | ) |  | (48 | ) |  | (49 | )
Benefit obligation as of December 31 |  | $ | 11,050 |  |  | $ | 9,462 |  |  | $ | 654 |  |  | $ | 608 |
Change in fair value of plan assets: |  |  |  |  |  |  |  |
Fair value of plan assets as of January 1 |  | $ | 6,984 |  |  | $ | 6,704 |  |  | $ | 408 |  |  | $ | 439 |
Actual return on plan assets |  | 1,419 |  |  | (363 | ) |  | 73 |  |  | (8 | )
Annuity purchase |  | — |  |  | (129 | ) |  | — |  |  | — |
Company contributions |  | 521 |  |  | 1,270 |  |  | 21 |  |  | 22 |
Plan participants’ contributions |  | — |  |  | — |  |  | 4 |  |  | 3 |
Benefits paid |  | (529 | ) |  | (498 | ) |  | (48 | ) |  | (48 | )
Fair value of plan assets as of December 31 |  | $ | 8,395 |  |  | $ | 6,984 |  |  | $ | 458 |  |  | $ | 408 |
Funded Status: |  |  |  |  |  |  |  |
Qualified plan |  | $ | (2,203 | ) |  | $ | (2,093 | ) |  | $ | — |  |  | $ | — |
Non-qualified plans |  | (452 | ) |  | (385 | ) |  | — |  |  | — |
Funded Status (Net liability as of December 31) |  | $ | (2,655 | ) |  | $ | (2,478 | ) |  | $ | (196 | ) |  | $ | (200 | )
Accumulated benefit obligation |  | $ | 10,439 |  |  | $ | 8,951 |  |  | $ | — |  |  | $ | — |
Amounts Recognized in AOCI: |  |  |  |  |  |  |  |
Prior service cost (credit) |  | $ | 24 |  |  | $ | 30 |  |  | $ | (85 | ) |  | $ | (121 | )
Assumptions Used to Determine Benefit Obligations |  |  |  |  |  |  |  |
(as of December 31) |  |  |  |  |  |  |  |
Discount rate |  | 3.34 | % |  | 4.44 | % |  | 3.18 | % |  | 4.30 | %
Rate of compensation increase |  | 4.10 | % |  | 4.10 | % |  | N/A |  |  | N/A |
Cash balance weighted average interest crediting rate |  | 2.57 | % |  | 3.34 | % |  | N/A |  |  | N/A |
Assumed Health Care Cost Trend Rates |  |  |  |  |  |  |  |
(as of December 31) |  |  |  |  |  |  |  |
Health care cost trend rate assumed (pre/post-Medicare) |  | N/A |  |  | N/A |  |  | 6.0-5.5% |  |  | 6.0-5.5% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) |  | N/A |  |  | N/A |  |  | 4.5 | % |  | 4.5 | %
Year that the rate reaches the ultimate trend rate |  | N/A |  |  | N/A |  |  | 2028 |  |  | 2028 |
Allocation of Plan Assets (as of December 31) |  |  |  |  |  |  |  |
Equity securities |  | 29 | % |  | 34 | % |  | 54 | % |  | 48 | %
Fixed Income |  | 36 | % |  | 34 | % |  | 30 | % |  | 35 | %
Hedge funds |  | 9 | % |  | 11 | % |  | — | % |  | — | %
Insurance-linked securities |  | 2 | % |  | 2 | % |  | — | % |  | — | %
Real estate funds |  | 7 | % |  | 10 | % |  | — | % |  | — | %
Derivatives |  | — | % |  | 2 | % |  | — | % |  | — | %
Private equity funds |  | 4 | % |  | 2 | % |  | — | % |  | — | %
Cash and short-term securities |  | 13 | % |  | 5 | % |  | 16 | % |  | 17 | %
Total |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Components of Net Periodic Benefit Costs |
Components of Net Periodic Benefit Costs for the Years Ended December 31, |  | Pension |  | OPEB
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
|  | (In millions)
Service cost |  | $ | 193 |  |  | $ | 224 |  |  | $ | 208 |  |  | $ | 3 |  |  | $ | 5 |  |  | $ | 5 |
Interest cost |  | 373 |  |  | 372 |  |  | 390 |  |  | 22 |  |  | 25 |  |  | 27 |
Expected return on plan assets |  | (540 | ) |  | (574 | ) |  | (448 | ) |  | (29 | ) |  | (31 | ) |  | (30 | )
Amortization of prior service costs (credits) |  | 7 |  |  | 7 |  |  | 7 |  |  | (36 | ) |  | (81 | ) |  | (81 | )
Special termination costs (1) |  | 14 |  |  | 31 |  |  | — |  |  | — |  |  | 8 |  |  | — |
Pension & OPEB mark-to-market adjustment |  | 656 |  |  | 227 |  |  | 108 |  |  | 20 |  |  | (82 | ) |  | 13 |
Net periodic benefit costs (credits) |  | $ | 703 |  |  | $ | 287 |  |  | $ | 265 |  |  | $ | (20 | ) |  | $ | (156 | ) |  | $ | (66 | )
(1) Subject to a cap, FirstEnergy has agreed to fund a pension enhancement through its pension plan, for voluntary enhanced retirement packages offered to certain FES employees, as well as offer certain other employee benefits (approximately $14 million recognized for the year ended December 31, 2019).
Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31,* |  | Pension |  | OPEB
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Weighted-average discount rate |  | 4.44 | % |  | 3.75 | % |  | 4.25 | % |  | 4.30 | % |  | 3.50 | % |  | 4.00 | %
Expected long-term return on plan assets |  | 7.50 | % |  | 7.50 | % |  | 7.50 | % |  | 7.50 | % |  | 7.50 | % |  | 7.50 | %
Rate of compensation increase |  | 4.10 | % |  | 4.20 | % |  | 4.20 | % |  | N/A |  |  | N/A |  |  | N/A |
Assumptions Used to Determine Net Periodic Benefit Cost |
Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31,* |  | Pension |  | OPEB
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Weighted-average discount rate |  | 4.44 | % |  | 3.75 | % |  | 4.25 | % |  | 4.30 | % |  | 3.50 | % |  | 4.00 | %
Expected long-term return on plan assets |  | 7.50 | % |  | 7.50 | % |  | 7.50 | % |  | 7.50 | % |  | 7.50 | % |  | 7.50 | %
Rate of compensation increase |  | 4.10 | % |  | 4.20 | % |  | 4.20 | % |  | N/A |  |  | N/A |  |  | N/A |
*Excludes impact of pension and OPEB mark-to-market adjustment.
Target asset allocations for pension and OPEB portfolio | FirstEnergy’s target asset allocations for its pension and OPEB trust portfolios for 2019 and 2018 are shown in the following table:
Target Asset Allocations
|  | 2019 |  | 2018
Equities |  | 38 | % |  | 38 | %
Fixed income |  | 30 | % |  | 30 | %
Hedge funds |  | 8 | % |  | 8 | %
Real estate |  | 10 | % |  | 10 | %
Alternative investments |  | 8 | % |  | 8 | %
Cash |  | 6 | % |  | 6 | %
|  | 100 | % |  | 100 | %
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 contributions:
|  |  |  | OPEB
|  | Pension |  | Benefit Payments |  | Subsidy Receipts
|  | (In millions)
2020 |  | $ | 547 |  |  | $ | 52 |  |  | $ | (1 | )
2021 |  | 564 |  |  | 49 |  |  | (1 | )
2022 |  | 573 |  |  | 48 |  |  | (1 | )
2023 |  | 586 |  |  | 47 |  |  | (1 | )
2024 |  | 593 |  |  | 46 |  |  | (1 | )
Years 2025-2029 |  | 3,099 |  |  | 208 |  |  | (3 | )
Pension |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] |
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 2019 and 2018.
|  | December 31, 2019 |  | Asset Allocation
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
|  | (In millions) |  |
Cash and short-term securities |  | $ | — |  |  | $ | 1,069 |  |  | $ | — |  |  | $ | 1,069 |  |  | 13 | %
Equities |  | 1,532 |  |  | 828 |  |  | — |  |  | 2,360 |  |  | 29 | %
Fixed income: |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | — |  |  | 2,064 |  |  | — |  |  | 2,064 |  |  | 25 | %
Other(3) |  | — |  |  | 880 |  |  | — |  |  | 880 |  |  | 11 | %
Alternatives: |  |  |  |  |  |  |  |  |  |  |
Derivatives |  | (40 | ) |  | — |  |  | — |  |  | (40 | ) |  | — | %
Total (1) |  | $ | 1,492 |  |  | $ | 4,841 |  |  | $ | — |  |  | $ | 6,333 |  |  | 78 | %
Private equity funds (2) |  |  |  |  |  |  |  | 342 |  |  | 4 | %
Insurance-linked securities (2) |  |  |  |  |  |  |  | 186 |  |  | 2 | %
Hedge funds (2) |  |  |  |  |  |  |  | 774 |  |  | 9 | %
Real estate funds (2) |  |  |  |  |  |  |  | 584 |  |  | 7 | %
Total Investments |  |  |  |  |  |  |  | $ | 8,219 |  |  | 100 | %
(1) | Excludes $176 million as of December 31, 2019, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
(2) | Net Asset Value used as a practical expedient to approximate fair value.
(3) | Includes insurance annuities, bank loans and emerging markets debt.
|  | December 31, 2018 |  | Asset Allocation
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
|  | (In millions) |  |
Cash and short-term securities |  | $ | — |  |  | $ | 342 |  |  | $ | — |  |  | $ | 342 |  |  | 5 | %
Equities |  | 1,115 |  |  | 1,256 |  |  | — |  |  | 2,371 |  |  | 34 | %
Fixed income: |  |  |  |  |  |  |  |  |  |
Government bonds |  | — |  |  | 59 |  |  | — |  |  | 59 |  |  | 1 | %
Corporate bonds |  | — |  |  | 1,674 |  |  | — |  |  | 1,674 |  |  | 23 | %
Other(4) |  | — |  |  | 667 |  |  | — |  |  | 667 |  |  | 10 | %
Alternatives: |  |  |  |  |  |  |  |  |  |
Derivatives |  | 108 |  |  | — |  |  | — |  |  | 108 |  |  | 2 | %
Total (1) |  | $ | 1,223 |  |  | $ | 3,998 |  |  | $ | — |  |  | $ | 5,221 |  |  | 75 | %
Private equity funds (2) |  |  |  |  |  |  |  | 143 |  |  | 2 | %
Insurance-linked securities (2) |  |  |  |  |  |  |  | 108 |  |  | 2 | %
Hedge funds (3) |  |  |  |  |  |  |  | 779 |  |  | 11 | %
Real estate funds (3) |  |  |  |  |  |  |  | 665 |  |  | 10 | %
Total Investments |  |  |  |  |  |  |  |  |  |  | $ | 6,916 |  |  | 100 | %
(1) | Excludes $68 million as of December 31, 2018, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
(2) | Net asset value used as a practical expedient to approximate fair value.
(3) | The classification of Level 2 and 3 assets from the prior year, $779 million and $665 million, respectively, was adjusted in the current year presentation and included outside of the fair value hierarchy table as of December 31, 2018, as investments for which Net Asset Value is used as a practical expedient to approximate fair value in accordance with ASU 2015-07 "Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)".
(4) Includes insurance annuities, bank loans and emerging markets debt.
OPEB |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] |
Pension investments measured at fair value | As of December 31, 2019 and 2018, the OPEB trust investments measured at fair value were as follows:
|  | December 31, 2019 |  | Asset Allocation
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
|  | (In millions) |  |
Cash and short-term securities |  | $ | — |  |  | $ | 72 |  |  | $ | — |  |  | $ | 72 |  |  | 16 | %
Equity investment: |  |  |  |  |  |  |  |  |  |
Domestic |  | 246 |  |  | — |  |  | — |  |  | 246 |  |  | 54 | %
Fixed income: |  |  |  |  |  |  |  |  |  |
Government bonds |  | — |  |  | 100 |  |  | — |  |  | 100 |  |  | 22 | %
Corporate bonds |  | — |  |  | 34 |  |  | — |  |  | 34 |  |  | 7 | %
Mortgage-backed securities (non-government) |  |  |  |  | 5 |  |  | — |  |  | 5 |  |  | 1 | %
Total (1) |  | $ | 246 |  |  | $ | 211 |  |  | $ | — |  |  | $ | 457 |  |  | 100 | %
(1) Excludes $1 million as of December 31, 2019, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
|  | December 31, 2018 |  | Asset Allocation
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
|  | (In millions) |  |
Cash and short-term securities |  | $ | — |  |  | $ | 71 |  |  | $ | — |  |  | $ | 71 |  |  | 17 | %
Equity investment: |  |  |  |  |  |  |  |  |  |
Domestic |  | 196 |  |  | — |  |  | — |  |  | 196 |  |  | 48 | %
Fixed income: |  |  |  |  |  |  |  |  |  |
Government bonds |  | — |  |  | 107 |  |  | — |  |  | 107 |  |  | 26 | %
Corporate bonds |  | — |  |  | 32 |  |  | — |  |  | 32 |  |  | 8 | %
Mortgage-backed securities (non-government) |  |  |  |  | 4 |  |  | — |  |  | 4 |  |  | 1 | %
Total (1) |  | $ | 196 |  |  | $ | 214 |  |  | $ | — |  |  | $ | 410 |  |  | 100 | %
(1) Excludes $(2) million as of December 31, 2018, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.

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