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Segment Information | 9 Months Ended
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Sep. 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 $881 million and $882 million of assets classified as held for sale as of September 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 September 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; although as explained in Note 9, “Regulatory Matters”, on October 29, 2020, MP, PE and WP filed with FERC to convert their existing stated rates to forward-looking formula rates, effective January 1, 2021. 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 September 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 September 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 Ended |  | Regulated Distribution |  | Regulated Transmission |  | Corporate/ Other |  | Reconciling Adjustments |  | FirstEnergy Consolidated
|  | (In millions)
September 30, 2020 |  |  |  |  |  |  |  |  |  |
External revenues |  | $ | 2,611 |  |  | $ | 408 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 3,022 |
Internal revenues |  | 50 |  |  | 5 |  |  | — |  |  | (55) |  |  | — |
Total revenues |  | $ | 2,661 |  |  | $ | 413 |  |  | $ | 3 |  |  | $ | (55) |  |  | $ | 3,022 |
Depreciation |  | 223 |  |  | 79 |  |  | — |  |  | 14 |  |  | 316 |
Amortization of regulatory assets, net |  | (91) |  |  | — |  |  | — |  |  | — |  |  | (91) |
Miscellaneous income (expense), net |  | 81 |  |  | 7 |  |  | 13 |  |  | (1) |  |  | 100 |
Interest expense |  | 124 |  |  | 55 |  |  | 88 |  |  | (1) |  |  | 266 |
Income taxes (benefits) |  | 109 |  |  | 35 |  |  | (28) |  |  | — |  |  | 116 |
Income (loss) from continuing operations |  | 413 |  |  | 115 |  |  | (68) |  |  | — |  |  | 460 |
Property additions |  | $ | 391 |  |  | $ | 278 |  |  | $ | 18 |  |  | $ | — |  |  | $ | 687 |
September 30, 2019 |  |  |  |  |  |  |  |  |  |
External revenues |  | $ | 2,590 |  |  | $ | 371 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 2,963 |
Internal revenues |  | 46 |  |  | 4 |  |  | — |  |  | (50) |  |  | — |
Total revenues |  | $ | 2,636 |  |  | $ | 375 |  |  | $ | 2 |  |  | $ | (50) |  |  | $ | 2,963 |
Depreciation |  | 215 |  |  | 71 |  |  | — |  |  | 18 |  |  | 304 |
Amortization of regulatory assets, net |  | 42 |  |  | 1 |  |  | — |  |  | — |  |  | 43 |
Miscellaneous income (expense), net |  | 36 |  |  | 4 |  |  | 24 |  |  | (7) |  |  | 57 |
Interest expense |  | 124 |  |  | 49 |  |  | 95 |  |  | (7) |  |  | 261 |
Income taxes (benefits) |  | 103 |  |  | 26 |  |  | (22) |  |  | — |  |  | 107 |
Income (loss) from continuing operations |  | 370 |  |  | 113 |  |  | (94) |  |  | — |  |  | 389 |
Property additions |  | $ | 365 |  |  | $ | 304 |  |  | $ | 15 |  |  | $ | — |  |  | $ | 684 |
For the Nine Months Ended |  |  |  |  |  |  |  |  |  |
September 30, 2020 |  |  |  |  |  |  |  |  |  |
External revenues |  | $ | 7,062 |  |  | $ | 1,185 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 8,253 |
Internal revenues |  | 145 |  |  | 13 |  |  | — |  |  | (158) |  |  | — |
Total revenues |  | $ | 7,207 |  |  | $ | 1,198 |  |  | $ | 6 |  |  | $ | (158) |  |  | $ | 8,253 |
Depreciation |  | 672 |  |  | 233 |  |  | 2 |  |  | 47 |  |  | 954 |
Amortization of regulatory assets, net |  | (32) |  |  | 6 |  |  | — |  |  | — |  |  | (26) |
Miscellaneous income (expense), net |  | 246 |  |  | 21 |  |  | 45 |  |  | (9) |  |  | 303 |
Interest expense |  | 374 |  |  | 162 |  |  | 265 |  |  | (9) |  |  | 792 |
Income taxes (benefits) |  | 144 |  |  | 103 |  |  | (125) |  |  | — |  |  | 122 |
Income (loss) from continuing operations |  | 800 |  |  | 346 |  |  | (355) |  |  | — |  |  | 791 |
Property additions |  | $ | 1,115 |  |  | $ | 817 |  |  | $ | 47 |  |  | $ | — |  |  | $ | 1,979 |
September 30, 2019 |  |  |  |  |  |  |  |  |  |
External revenues |  | $ | 7,261 |  |  | $ | 1,091 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 8,362 |
Internal revenues |  | 140 |  |  | 12 |  |  | — |  |  | (152) |  |  | — |
Total revenues |  | $ | 7,401 |  |  | $ | 1,103 |  |  | $ | 10 |  |  | $ | (152) |  |  | $ | 8,362 |
Depreciation |  | 644 |  |  | 211 |  |  | 3 |  |  | 52 |  |  | 910 |
Amortization of regulatory assets, net |  | 79 |  |  | 6 |  |  | — |  |  | — |  |  | 85 |
Miscellaneous income (expense), net |  | 128 |  |  | 12 |  |  | 73 |  |  | (22) |  |  | 191 |
Interest expense |  | 370 |  |  | 142 |  |  | 283 |  |  | (22) |  |  | 773 |
Income taxes (benefits) |  | 259 |  |  | 87 |  |  | (65) |  |  | — |  |  | 281 |
Income (loss) from continuing operations |  | 957 |  |  | 333 |  |  | (205) |  |  | — |  |  | 1,085 |
Property additions |  | $ | 1,037 |  |  | $ | 835 |  |  | $ | 40 |  |  | $ | — |  |  | $ | 1,912 |
As of September 30, 2020 |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 30,249 |  |  | $ | 12,078 |  |  | $ | 611 |  |  | $ | — |  |  | $ | 42,938 |
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 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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