XML 21 R11.htm IDEA: XBRL DOCUMENT v3.22.2.2
Revenue
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
The following represents a disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2022202120222021
Regulated Distribution
Retail generation and distribution services
Residential $1,756 $1,666 $4,608 $4,410 
Commercial 686 619 1,858 1,722 
Industrial 348 284 943 810 
Other 23 19 61 55 
Wholesale 159117408260
Other revenue from contracts with customers27308289
Total revenues from contracts with customers2,999 2,735 7,960 7,346 
ARP(1)
— — — (27)
Other revenue unrelated to contracts with customers24247868
Total Regulated Distribution$3,023 $2,759 $8,038 $7,387 
Regulated Transmission
ATSI $252 $206 $686 $604 
TrAIL 78 59 205 176 
MAIT 97 75 253 222 
JCP&L 45 41 151 126 
MP, PE and WP 30309895
Total revenues from contracts with customers502 411 1,393 1,223 
Other revenue unrelated to contracts with customers1 4 4 10 
Total Regulated Transmission $503 $415 $1,397 $1,233 
Corporate/Other and Reconciling Adjustments(2)
Wholesale$7 $5 $21 $12 
Retail generation and distribution services (2)
(46)(38)(136)(115)
Other revenue unrelated to contracts with customers (2)
(12)(17)(38)(45)
Total Corporate/Other and Reconciling $(51)$(50)$(153)$(148)
FirstEnergy Total Revenues $3,475 $3,124 $9,282 $8,472 
(1) 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.
(2) Includes eliminations and reconciling adjustments of inter-segment revenues.

Other revenue unrelated to contracts with customers includes revenue from late payment charges of $10 million and $9 million for the three months ended September 30, 2022 and 2021, respectively. Other revenue unrelated to contracts with customers also includes revenue from derivatives of $2 million and $3 million for the three months ended September 30, 2022 and 2021, respectively.

Other revenue unrelated to contracts with customers includes revenue from late payment charges of $29 million and $27 million for the nine months ended September 30, 2022 and 2021, respectively. Other revenue unrelated to contracts with customers also includes revenue from derivatives of $13 million and $5 million for the nine months ended September 30, 2022 and 2021, respectively.
Customer Receivables

Receivables from contracts with customers include distribution services and retail generation sales to residential, commercial
and industrial customers of the Utilities. Billed and unbilled customer receivables as of September 30, 2022 and December 31, 2021, are included below.
Customer ReceivablesSeptember 30, 2022December 31, 2021
 (In millions)
Billed$800 $616 
Unbilled518 576 
1,318 1,192 
Less: Uncollectible Reserve 136 159 
Total Customer Receivables $1,182 $1,033 
The allowance for uncollectible customer receivables is based on historical loss information comprised of a rolling 36-month average net write-off percentage of revenues, in conjunction with a qualitative assessment of elements that impact the collectability of receivables to determine if allowances for uncollectible accounts should be further adjusted in accordance with the accounting guidance for credit losses.

FirstEnergy reviews its allowance for uncollectible customer receivables utilizing a quantitative and qualitative assessment. Management contemplates available current information such as changes in economic factors, regulatory matters, industry trends, customer credit factors, amount of receivable balances that are past-due, payment options and programs available to customers, and the methods that the Utilities are able to utilize to ensure payment. This analysis includes consideration of the outbreak of COVID-19 and the impact on customer receivable balances outstanding and write-offs since the pandemic began and economic slow down. During 2022, various regulatory actions including extensions on moratoriums, certain restrictions on disconnections, and extended installment plan offerings continue to impact the level of past due balances in certain states. However, certain states have resumed normal collections activity and arrears levels have declined towards pre-pandemic levels. As a result of this analysis, FirstEnergy recognized a $25 million decrease to its allowance for uncollectible customer receivables during the first quarter of 2022, of which $15 million was applied to existing deferred regulatory assets. There were no material changes as a result of this analysis during the second and third quarters of 2022. Additionally, as a result of these pandemic-related moratoriums and certain customer installment or extended payment plans offered, the allowance for uncollectible accounts on receivables in 2022 continues to be elevated due to the extension of when certain write-offs would have otherwise occurred.

Receivables from contracts with customers also includes PJM receivables resulting from transmission and wholesale sales. FirstEnergy’s uncollectible risk on PJM receivables is minimal due to the nature of PJM’s settlement process whereby members of PJM legally agree to share the cost of defaults and as a result there is no allowance for doubtful accounts.

Activity in the allowance for uncollectible accounts on customer receivables for the nine months ended September 30, 2022 and for the year ended December 31, 2021 are as follows:
(In millions)
Balance, January 1, 2021$164 
Provision for expected credit losses (1)
54 
Charged to other accounts (2)
42 
Write-offs(101)
Balance, December 31, 2021$159 
Provision for expected credit losses (3)
29 
Charged to other accounts (2)
54 
Write-offs(106)
Balance, September 30, 2022$136 
(1) Approximately $12 million of which was deferred for future recovery in the twelve months ended December 31, 2021.
(2) Represents recoveries and reinstatements of accounts written off for uncollectible accounts.
(3) Approximately $2 million of which was deferred for future refund to customers in the nine months ended September 30, 2022.