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Segment Information | 3 Months Ended
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Mar. 31, 2022
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. On April 6, 2020, JCP&L signed an asset purchase agreement with Yards Creek Energy, LLC, a subsidiary of LS Power to sell its 50% interest in the Yards Creek pumped-storage hydro generation facility. With the receipt of all required regulatory approvals, the transaction was consummated on March 5, 2021 and resulted in a $109 million gain within the regulated distribution segment in the first quarter of 2021. The gain from the transaction was applied against and reduced JCP&L’s existing regulatory asset for previously deferred storm costs and, as a result, was offset by expense in the “Amortization (deferral) of regulatory assets, net”, line on the Consolidated Statements of Income, resulting in no earnings impact to FirstEnergy or JCP&L. 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. 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 rate base and costs. The segment’s results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy’s transmission facilities. On November 6, 2021, FirstEnergy, along with FET, entered into the FET P&SA, with Brookfield and Brookfield Guarantors pursuant to which FET agreed to issue and sell to Brookfield at the closing, and Brookfield agreed to purchase from FET, certain newly issued membership interests of FET, such that Brookfield will own 19.9% of the issued and outstanding membership interests of FET, for a purchase price of $2.375 billion. The transaction is subject to customary closing conditions, including approval from the FERC and review by the CFIUS. CFIUS completed its review on April 14, 2022 and FERC approved the transaction on April 21, 2022. The transaction is expected to close at the end of May 2022. KATCo, which is currently a subsidiary of FET, will become a wholly owned subsidiary of FE prior to the closing of the transaction and will remain in the Regulated Transmission segment. Corporate/Other reflects corporate support and other costs not charged or attributable to the Utilities or Transmission Companies, including FE’s retained Pension and OPEB assets and liabilities of the FES Debtors, interest expense on FE’s holding company debt and other investments or businesses that do not constitute an operating segment. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the following table of Segment Financial Information. As of March 31, 2022, 67 MWs of electric generating capacity, representing AE Supply’s OVEC capacity entitlement, is included in Corporate/Other. As of March 31, 2022, Corporate/Other had approximately $7.4 billion of FE holding company debt. Financial information for each of FirstEnergy’s business segments and reconciliations to consolidated amounts is presented in the tables below. FirstEnergy evaluates segment performance based on Net income (loss). Segment Financial Information
For the Three Months Ended |  | Regulated Distribution |  | Regulated Transmission |  | Corporate/ Other |  | Reconciling Adjustments |  | FirstEnergy Consolidated
|  | (In millions)
March 31, 2022 |  |  |  |  |  |  |  |  |  |
External revenues |  | $ | 2,532 |  |  | $ | 451 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 2,989 |
Internal revenues |  | 57 |  |  | 2 |  |  | — |  |  | (59) |  |  | — |
Total revenues |  | $ | 2,589 |  |  | $ | 453 |  |  | $ | 6 |  |  | $ | (59) |  |  | $ | 2,989 |
Depreciation |  | 235 |  |  | 86 |  |  | 2 |  |  | 17 |  |  | 340 |
Amortization (deferral) of regulatory assets, net |  | (38) |  |  | 1 |  |  | — |  |  | — |  |  | (37) |
Miscellaneous income (expense), net |  | 85 |  |  | 6 |  |  | 17 |  |  | (2) |  |  | 106 |
Interest expense |  | 129 |  |  | 59 |  |  | 127 |  |  | (2) |  |  | 313 |
Income taxes (benefits) |  | 69 |  |  | 41 |  |  | (27) |  |  | — |  |  | 83 |
Net income (loss) |  | 265 |  |  | 125 |  |  | (102) |  |  | — |  |  | 288 |
Property additions |  | $ | 317 |  |  | $ | 197 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 520 |
March 31, 2021 |  |  |  |  |  |  |  |  |  |
External revenues |  | $ | 2,321 |  |  | $ | 401 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 2,726 |
Internal revenues |  | 49 |  |  | 4 |  |  | — |  |  | (53) |  |  | — |
Total revenues |  | $ | 2,370 |  |  | $ | 405 |  |  | $ | 4 |  |  | $ | (53) |  |  | $ | 2,726 |
Depreciation |  | 226 |  |  | 81 |  |  | 1 |  |  | 15 |  |  | 323 |
Amortization of regulatory assets, net |  | 87 |  |  | 5 |  |  | — |  |  | — |  |  | 92 |
Miscellaneous income (expense), net |  | 107 |  |  | 11 |  |  | 22 |  |  | (5) |  |  | 135 |
Interest expense |  | 128 |  |  | 61 |  |  | 101 |  |  | (5) |  |  | 285 |
Income taxes (benefits) |  | 82 |  |  | 33 |  |  | (28) |  |  | — |  |  | 87 |
Net income (loss) |  | 313 |  |  | 109 |  |  | (87) |  |  | — |  |  | 335 |
Property additions |  | $ | 321 |  |  | $ | 273 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 604 |
As of March 31, 2022 |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 30,883 |  |  | $ | 13,070 |  |  | $ | 664 |  |  | $ | — |  |  | $ | 44,617 |
Total goodwill |  | $ | 5,004 |  |  | $ | 614 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,618 |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 30,812 |  |  | $ | 13,237 |  |  | $ | 1,383 |  |  | $ | — |  |  | $ | 45,432 |
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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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