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Segment Information
 9 Months Ended
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 EndedRegulated DistributionRegulated TransmissionCorporate/ OtherReconciling AdjustmentsFirstEnergy Consolidated
(In millions)
September 30, 2020
External revenues$2,611 $408 $3 $— $3,022 
Internal revenues50 5 — (55)— 
Total revenues$2,661 $413 $3 $(55)$3,022 
Depreciation223 79 — 14 316 
Amortization of regulatory assets, net(91)— — — (91)
Miscellaneous income (expense), net81 7 13 (1)100 
Interest expense124 55 88 (1)266 
Income taxes (benefits)109 35 (28)— 116 
Income (loss) from continuing operations413 115 (68)— 460 
Property additions$391 $278 $18 $— $687 
September 30, 2019
External revenues$2,590 $371 $2 $— $2,963 
Internal revenues46 4 — (50)— 
Total revenues$2,636 $375 $2 $(50)$2,963 
Depreciation215 71 — 18 304 
Amortization of regulatory assets, net42 1 — — 43 
Miscellaneous income (expense), net36 4 24 (7)57 
Interest expense124 49 95 (7)261 
Income taxes (benefits)103 26 (22)— 107 
Income (loss) from continuing operations370 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 revenues145 13 — (158)— 
Total revenues$7,207 $1,198 $6 $(158)$8,253 
Depreciation672 233 2 47 954 
Amortization of regulatory assets, net(32)6 — — (26)
Miscellaneous income (expense), net246 21 45 (9)303 
Interest expense374 162 265 (9)792 
Income taxes (benefits)144 103 (125)— 122 
Income (loss) from continuing operations800 346 (355)— 791 
Property additions$1,115 $817 $47 $— $1,979 
September 30, 2019
External revenues$7,261 $1,091 $10 $— $8,362 
Internal revenues140 12 — (152)— 
Total revenues$7,401 $1,103 $10 $(152)$8,362 
Depreciation644 211 3 52 910 
Amortization of regulatory assets, net79 6 — — 85 
Miscellaneous income (expense), net128 12 73 (22)191 
Interest expense370 142 283 (22)773 
Income taxes (benefits)259 87 (65)— 281 
Income (loss) from continuing operations957 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