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Segment Information
 3 Months Ended
Mar. 31, 2021
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 3,580 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. Included within the segment is $45 million of assets classified as held for sale as of December 31, 2020, associated with the asset purchase agreement with Yards Creek; see Note 8, “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 and JCP&L as well as stated transmission rates at MP, PE and WP; although as explained in Note 8, “Regulatory Matters”, effective January 1, 2021, subject to refund, MP’s, PE’s and WP’s existing stated rates became forward-looking formula rates. JCP&L previously had stated transmission rates, however, effective January 1, 2020, JCP&L implemented forward-looking formula rates, which were approved by FERC on April 15, 2021. Both forward-looking formula and stated rates recover costs that FERC determines 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. Revenue requirements under stated rates are calculated annually by multiplying the highest one-hour peak load in each respective transmission zone by the approved, stated rate in that zone. 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. See Note 3, “Discontinued Operations,” for additional discussion. As of March 31, 2021, 67 MWs of electric generating capacity, representing AE Supply’s OVEC capacity entitlement, was included in continuing operations of Corporate/Other. As of March 31, 2021, Corporate/Other had approximately $8 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)
March 31, 2021
External revenues$2,321 $401 $4 $— $2,726 
Internal revenues49 4 — (53)— 
Total revenues$2,370 $405 $4 $(53)$2,726 
Depreciation226 81 1 15 323 
Amortization of regulatory assets, net87 5 — — 92 
Miscellaneous income (expense), net107 11 22 (5)135 
Interest expense128 61 101 (5)285 
Income taxes (benefits)82 33 (28)— 87 
Income (loss) from continuing operations313 109 (87)— 335 
Property additions$321 $273 $10 $— $604 
March 31, 2020
External revenues$2,311 $397 $1 $— $2,709 
Internal revenues47 4 — (51)— 
Total revenues$2,358 $401 $1 $(51)$2,709 
Depreciation223 76 2 16 317 
Amortization of regulatory assets, net49 3 — — 52 
Miscellaneous income (expense), net75 6 25 (6)100 
Interest expense127 52 90 (6)263 
Income taxes (benefits)(32)34 (62)— (60)
Income (loss) from continuing operations136 117 (229)— 24 
Property additions$338 $269 $9 $— $616 
As of March 31, 2021
Total assets$30,331 $12,753 $1,033 $— $44,117 
Total goodwill$5,004 $614 $— $— $5,618 
As of December 31, 2020
Total assets$30,855 $12,592 $1,017 $— $44,464 
Total goodwill$5,004 $614 $— $— $5,618