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Segment Information
 6 Months Ended
Jun. 30, 2020
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.

The Regulated Distribution segment distributes electricity through FirstEnergy’s ten 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 3,790 MWs of regulated electric generation capacity located primarily in West Virginia, Virginia and New Jersey, of which, 210 MWs are related to the Yards Creek generating station that is being sold pursuant to an asset purchase agreement as further discussed below. 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. Included within the segment are $882 million of assets classified as held for sale as of June 30, 2020 and December 31, 2019 associated with the asset purchase and sale agreements with TMI-2 Solutions to transfer TMI-2 to TMI-2 Solutions, LLC. See Note 10, "Commitments, Guarantees and Contingencies" for additional information. Also included within the segment is $44 million of assets classified as held for sale as of June 30, 2020 associated with the asset purchase agreement with Yards Creek Energy, LLC to transfer JCP&L’s 50% interest in the Yards Creek pumped-storage hydro generation station (210 MWs). See Note 9, "Regulatory Matters" for additional information.
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 primarily derived from forward-looking formula rates at the Transmission Companies as well as stated transmission rates at JCP&L, MP, PE and WP. Effective January 1, 2020, JCP&L's transmission rates became forward-looking formula rates, subject to refund, pending further hearing and settlement proceedings. Both the forward-looking formula and stated 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 actual costs. The segment’s results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy’s transmission facilities.
Corporate/Other reflects corporate support costs not charged to FE’s subsidiaries, including FE’s retained Pension and OPEB assets and liabilities of the FES Debtors, interest expense on FE’s holding company debt and other businesses that do not constitute an operating segment. Reconciling adjustments for the elimination of inter-segment transactions and discontinued operations are shown separately in the following table of Segment Financial Information. As of June 30, 2020, 67 MWs of electric generating capacity, representing AE Supply’s OVEC capacity entitlement, was included in continuing operations of Corporate/Other. As of June 30, 2020, Corporate/Other had approximately $7.85 billion of FE holding company debt.
Financial information for each of FirstEnergy’s reportable segments is presented in the tables below:
Segment Financial Information
For the Three Months EndedRegulated DistributionRegulated TransmissionCorporate/ OtherReconciling AdjustmentsFirstEnergy Consolidated
(In millions)
June 30, 2020
External revenues$2,140  $380  $2  $—  $2,522  
Internal revenues48  4  —  (52) —  
Total revenues$2,188  $384  $2  $(52) $2,522  
Depreciation226  78  —  17  321  
Amortization of regulatory assets, net10  3  —  —  13  
Miscellaneous income (expense), net90  8  7  (2) 103  
Interest expense123  55  87  (2) 263  
Income taxes (benefits)67  34  (35) —  66  
Income (loss) from continuing operations251  114  (58) —  307  
Property additions$386  $270  $20  $—  $676  
June 30, 2019
External revenues$2,145  $368  $3  $—  $2,516  
Internal revenues47  4  —  (51) —  
Total revenues$2,192  $372  $3  $(51) $2,516  
Depreciation220  71  1  17  309  
Amortization of regulatory assets, net34  3  —  —  37  
Miscellaneous income (expense), net46  4  38  (8) 80  
Interest expense124  48  95  (8) 259  
Income taxes (benefits)67  30  (16) —  81  
Income (loss) from continuing operations258  116  (33) —  341  
Property additions$354  $300  $20  $—  $674  
For the Six Months Ended
June 30, 2020
External revenues$4,451  $777  $3  $—  $5,231  
Internal revenues95  8  —  (103) —  
Total revenues$4,546  $785  $3  $(103) $5,231  
Depreciation449  154  2  33  638  
Amortization of regulatory assets, net59  6  —  —  65  
Miscellaneous income (expense), net165  14  32  (8) 203  
Interest expense250  107  177  (8) 526  
Income taxes (benefits)35  68  (97) —  6  
Income (loss) from continuing operations387  231  (287) —  331  
Property additions$724  $539  $29  $—  $1,292  
June 30, 2019
External revenues$4,671  $720  $8  $—  $5,399  
Internal revenues94  8  —  (102) —  
Total revenues$4,765  $728  $8  $(102) $5,399  
Depreciation429  140  3  34  606  
Amortization (deferral) of regulatory assets, net37  5  —  —  42  
Miscellaneous income (expense), net92  8  49  (15) 134  
Interest expense246  93  188  (15) 512  
Income taxes (benefits)156  61  (43) —  174  
Income (loss) from continuing operations587  220  (111) —  696  
Property additions$672  $531  $25  $—  $1,228  
As of June 30, 2020
Total assets$29,863  $11,914  $626  $—  $42,403  
Total goodwill$5,004  $614  $—  $—  $5,618  
As of December 31, 2019
Total assets$29,642  $11,611  $1,015  $33  $42,301  
Total goodwill$5,004  $614  $—  $—  $5,618