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Revenue
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
FirstEnergy accounts for revenues from contracts with customers under ASC 606, “Revenue from Contracts with Customers.” Revenue from leases, financial instruments, other contractual rights or obligations and other revenues that are not from contracts with customers are outside the scope of the standard and accounted for under other existing GAAP.

FirstEnergy has elected to exclude sales taxes and other similar taxes collected on behalf of third parties from revenue as prescribed in the standard. As a result, tax collections and remittances are excluded from recognition in the income statement and instead recorded through the balance sheet. Excise and gross receipts taxes that are assessed on FirstEnergy are not subject to the election and are included in revenue. FirstEnergy has elected the optional invoice practical expedient for most of its revenues and utilizes the optional short-term contract exemption for transmission revenues due to the annual establishment of revenue requirements, which eliminates the need to provide certain revenue disclosures regarding unsatisfied performance obligations.

FirstEnergy’s revenues are primarily derived from electric service provided by the Utilities and Transmission Companies.

The following represents a disaggregation of revenue from contracts with customers for the three and six months ended June 30, 2022 and 2021:
For the Three Months Ended June 30, 2022
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $1,216 $— $(28)$1,188 
Retail generation999 — (17)982 
Wholesale sales159 — 8 167 
Transmission — 440 — 440 
Other29 — — 29 
Total revenues from contracts with customers$2,403 $440 $(37)$2,806 
Other revenue unrelated to contracts with customers23 1 (12)12 
Total revenues$2,426 $441 $(49)$2,818 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
For the Three Months Ended June 30, 2021
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $1,304 $— $(26)$1,278 
Retail generation831 — (13)818 
Wholesale sales74 — 3 77 
Transmission— 411 — 411 
Other26 — — 26 
Total revenues from contracts with customers$2,235 $411 $(36)$2,610 
Other revenue unrelated to contracts with customers23 8 (19)12 
Total revenues$2,258 $419 $(55)$2,622 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.

For the Six Months Ended June 30, 2022
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $2,564 $— $(56)$2,508 
Retail generation2,093 — (34)2,059 
Wholesale sales249 — 14 263 
Transmission— 891 — 891 
Other55 — — 55 
Total revenues from contracts with customers$4,961 $891 $(76)$5,776 
Other revenue unrelated to contracts with customers54 3 (26)31 
Total revenues$5,015 $894 $(102)$5,807 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
For the Six Months Ended June 30, 2021
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $2,643 $— $(52)$2,591 
Retail generation1,766 — (25)1,741 
Wholesale sales143 — 7 150 
Transmission— 812 — 812 
Other59 — — 59 
Total revenues from contracts with customers$4,611 $812 $(70)$5,353 
ARP (2)
(27)— (27)
Other revenue unrelated to contracts with customers44 12 (34)22 
Total revenues$4,628 $824 $(104)$5,348 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
(2) Reflects amount the Ohio Companies refunded to customers that was previously collected under decoupling mechanisms, with interest. See Note 7, “Regulatory Matters,” for further discussion on Ohio decoupling rates.
Other revenue unrelated to contracts with customers includes revenue from late payment charges of $9 million for both the three months ended June 30, 2022 and 2021, respectively. Other revenue unrelated to contracts with customers also includes revenue from derivatives of $2 million for both the three months ended June 30, 2022 and 2021, respectively.

Other revenue unrelated to contracts with customers includes revenue from late payment charges of $19 million and $18 million for the six months ended June 30, 2022 and 2021, respectively. Other revenue unrelated to contracts with customers also includes revenue from derivatives of $11 million and $2 million for the six months ended June 30, 2022 and 2021, respectively.

Regulated Distribution

The Regulated Distribution segment distributes electricity through FirstEnergy’s ten utility operating companies and also controls 3,580 MWs of regulated electric generation capacity located primarily in West Virginia and Virginia. Each of the Utilities earns revenue from state-regulated rate tariffs under which it provides distribution services to residential, commercial and industrial customers in its service territory. The Utilities are obligated under the regulated construct to deliver power to customers reliably, as it is needed, which creates an implied monthly contract with the end-use customer. See Note 7, “Regulatory Matters,” for additional information on rate recovery mechanisms. Distribution and electric revenues are recognized over time as electricity is distributed and delivered to the customer and the customers consume the electricity immediately as delivery occurs.

Retail generation sales relate to POLR, SOS, SSO and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland, as well as generation sales in West Virginia that are regulated by the WVPSC. Certain of the Utilities have default service obligations to provide power to non-shopping customers who have elected to continue to receive service under regulated retail tariffs. The volume of these sales varies depending on the level of shopping that occurs. Supply plans vary by state and by service territory. Default service for the Ohio Companies, Pennsylvania Companies, JCP&L and PE’s Maryland jurisdiction are provided through a competitive procurement process approved by each state’s respective commission. Retail generation revenues are recognized over time as electricity is delivered and consumed immediately by the customer.

The following table represents a disaggregation of the Regulated Distribution segment revenue from contracts with distribution service and retail generation customers for the three and six months ended June 30, 2022 and 2021, by class:
For the Three Months Ended June 30,For the Six Months Ended June 30,
Revenues by Customer Class 2022202120222021
(In millions)
Residential$1,310 $1,287 $2,852 $2,744 
Commercial575 562 1,172 1,103 
Industrial312 268 595 526 
Other18 18 38 36 
Total Revenues$2,215 $2,135 $4,657 $4,409 

Wholesale sales primarily consist of generation and capacity sales into the PJM market from FirstEnergy’s regulated electric generation capacity and NUGs. Certain of the Utilities may also purchase power in the PJM markets to supply power to their customers. Generally, these power sales from generation and purchases to serve load are netted hourly and reported as either revenues or purchased power on the Consolidated Statements of Income based on whether the entity was a net seller or buyer each hour. Capacity revenues are recognized ratably over the PJM planning year at prices cleared in the annual PJM Reliability Pricing Model Base Residual Auction and Incremental Auctions. Capacity purchases and sales through PJM capacity auctions are reported within revenues on the Consolidated Statements of Income. Certain capacity income (bonuses) and charges (penalties) related to the availability of units that have cleared in the auctions are unknown and not recorded in revenue until, and unless, they occur.

The Utilities’ distribution customers are metered on a cycle basis. An estimate of unbilled revenues is calculated to recognize electric service provided from the last meter reading through the end of the month. This estimate includes many factors, among which are historical customer usage, load profiles, estimated weather impacts, customer shopping activity and prices in effect for each class of customer. In each accounting period, the Utilities accrue the estimated unbilled amount as revenue and reverse the related prior period estimate. Customer payments vary by state but are generally due within 30 days.

ASC 606 excludes industry-specific accounting guidance for recognizing revenue from ARPs as these programs represent contracts between the utility and its regulators, as opposed to customers. Therefore, revenues from these programs are not within the scope of ASC 606 and regulated utilities are permitted to continue to recognize such revenues in accordance with existing practice but are presented separately from revenue arising from contracts with customers. FirstEnergy had ARPs in Ohio and has reflected refunds of decoupling revenue owed to customers as reductions to ARPs in 2021. Please see Note 7, “Regulatory Matters,” for further discussion on decoupling revenues in Ohio.
Regulated Transmission

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 derived from forward-looking formula rates. See Note 7, “Regulatory Matters,” for additional information.

Forward-looking formula 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. Revenues and cash receipts for the stand-ready obligation of providing transmission service are recognized ratably over time.

The following table represents a disaggregation of revenue from contracts with regulated transmission customers for the three and six months ended June 30, 2022 and 2021, by transmission owner:
For the Three Months Ended June 30,For the Six Months Ended June 30,
Transmission Owner2022202120222021
(In millions)
ATSI$217 $193 $434 $398 
TrAIL64 57 127 117 
MAIT77 80 156 147 
JCP&L46 46 106 85 
MP, PE and WP 36 35 68 65 
Total Revenues$440 $411 $891 $812