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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2023
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. FirstEnergy evaluates segment performance based on Earnings attributable to FE. 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 provider of last resort, SOS, standard service offer 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. 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 I, with Brookfield and the 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 would own 19.9% of the issued and outstanding membership interests of FET, for a purchase price of $2.375 billion. The transaction closed on May 31, 2022. KATCo, which was a subsidiary of FET, became a wholly owned subsidiary of FE prior to the closing of the FET P&SA I and remains in the Regulated Transmission segment. On February 2, 2023, FE, along with FET, entered into the FET P&SA II with Brookfield and the Brookfield Guarantors, pursuant to which FE agreed to sell to Brookfield at the closing, and Brookfield agreed to purchase from FE, an incremental 30% equity interest in FET for a purchase price of $3.5 billion. The purchase price will be payable in part by the issuance of a promissory note expected to be in the principal amount of $1.75 billion. The remaining $1.75 billion of the purchase price will be payable in cash at the closing. As a result of the consummation of the transaction, Brookfield’s interest in FET will increase from 19.9% to 49.9%, while FE will retain the remaining 50.1% ownership interests of FET. The transaction is subject to customary closing conditions, including approval from the FERC and certain state utility commissions, and completion of review by the CFIUS. In addition, pursuant to the FET P&SA II, FirstEnergy has agreed to make the necessary filings with the applicable regulatory authorities for the PA Consolidation. The FET Minority Equity Interest Sale is expected to close by early 2024. Upon closing, FET will continue to be consolidated in FirstEnergy’s GAAP financial statements. 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 former subsidiaries, interest expense on FE’s holding company debt and other investments or businesses that do not constitute an operating segment, including FEV’s investment of 33-1/3% equity ownership in Global Holding. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the following table of Segment Financial Information. As of March 31, 2023, 67 MWs of electric generating capacity, representing AE Supply’s OVEC capacity entitlement, was also included in Corporate/Other for segment reporting. As of March 31, 2023, Corporate/Other had approximately $5.7 billion of FE holding company debt. Financial information for FirstEnergy’s business segments and reconciliations to consolidated amounts is presented below:
|  |  |  | Three Months Ended March 31,
(In millions) |  |  |  |  |  | 2023 |  | 2022
External revenues |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 2,769 |  |  | $ | 2,532 |
Regulated Transmission |  |  |  |  |  | 460 |  |  | 451 |
Corporate/Other |  |  |  |  |  | 2 |  |  | 6 |
Reconciling Adjustments |  |  |  |  |  | — |  |  | — |
Total external revenues |  |  |  |  |  | $ | 3,231 |  |  | $ | 2,989 |
Internal revenues |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 57 |  |  | $ | 57 |
Regulated Transmission |  |  |  |  |  | 1 |  |  | 2 |
Corporate/Other |  |  |  |  |  | — |  |  | — |
Reconciling Adjustments |  |  |  |  |  | (58) |  |  | (59) |
Total internal revenues |  |  |  |  |  | $ | — |  |  | $ | — |
Total revenues |  |  |  |  |  | $ | 3,231 |  |  | $ | 2,989 |
Depreciation |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 251 |  |  | $ | 235 |
Regulated Transmission |  |  |  |  |  | 91 |  |  | 86 |
Corporate/Other |  |  |  |  |  | 2 |  |  | 2 |
Reconciling Adjustments |  |  |  |  |  | 17 |  |  | 17 |
Total depreciation |  |  |  |  |  | $ | 361 |  |  | $ | 340 |
Amortization (deferral) of regulatory assets, net |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | (79) |  |  | $ | (38) |
Regulated Transmission |  |  |  |  |  | (1) |  |  | 1 |
Corporate/Other |  |  |  |  |  | — |  |  | — |
Reconciling Adjustments |  |  |  |  |  | — |  |  | — |
Total amortization (deferral) of regulatory assets, net |  |  |  |  |  | $ | (80) |  |  | $ | (37) |
Equity method investment earnings |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | — |  |  | $ | — |
Regulated Transmission |  |  |  |  |  | — |  |  | — |
Corporate/Other |  |  |  |  |  | 56 |  |  | 12 |
Reconciling Adjustments |  |  |  |  |  | — |  |  | — |
Total equity method investment earnings |  |  |  |  |  | $ | 56 |  |  | $ | 12 |
Interest expense |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 146 |  |  | $ | 129 |
Regulated Transmission |  |  |  |  |  | 59 |  |  | 59 |
Corporate/Other |  |  |  |  |  | 75 |  |  | 89 |
Reconciling Adjustments |  |  |  |  |  | (17) |  |  | (2) |
Total interest expense |  |  |  |  |  | $ | 263 |  |  | $ | 275 |
|  |  |  | Three Months Ended March 31,
(In millions) |  |  |  |  |  | 2023 |  | 2022
Income taxes (benefits) |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 56 |  |  | $ | 69 |
Regulated Transmission |  |  |  |  |  | 40 |  |  | 41 |
Corporate/Other |  |  |  |  |  | (6) |  |  | (27) |
Reconciling Adjustments |  |  |  |  |  | — |  |  | — |
Total income taxes (benefits) |  |  |  |  |  | $ | 90 |  |  | $ | 83 |
Earnings attributable to FE |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 236 |  |  | $ | 265 |
Regulated Transmission |  |  |  |  |  | 114 |  |  | 125 |
Corporate/Other |  |  |  |  |  | (58) |  |  | (102) |
Reconciling Adjustments |  |  |  |  |  | — |  |  | — |
Total earnings attributable to FE |  |  |  |  |  | $ | 292 |  |  | $ | 288 |
Capital investments |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 334 |  |  | $ | 336 |
Regulated Transmission |  |  |  |  |  | 308 |  |  | 197 |
Corporate/Other |  |  |  |  |  | 7 |  |  | 6 |
Reconciling Adjustments |  |  |  |  |  | — |  |  | — |
Total capital investments |  |  |  |  |  | $ | 649 |  |  | $ | 539 |
(In millions) |  |  |  |  |  | As of March 31, 2023 |  | As of December 31, 2022
Assets |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 31,886 |  |  | $ | 31,749 |
Regulated Transmission |  |  |  |  |  | 13,981 |  |  | 13,835 |
Corporate/Other |  |  |  |  |  | 612 |  |  | 524 |
Reconciling Adjustments |  |  |  |  |  | — |  |  | — |
Total assets |  |  |  |  |  | $ | 46,479 |  |  | $ | 46,108 |
Goodwill |  |  |  |  |  |  |  |
Regulated Distribution |  |  |  |  |  | $ | 5,004 |  |  | $ | 5,004 |
Regulated Transmission |  |  |  |  |  | 614 |  |  | 614 |
Corporate/Other |  |  |  |  |  | — |  |  | — |
Reconciling Adjustments |  |  |  |  |  | — |  |  | — |
Total goodwill |  |  |  |  |  | $ | 5,618 |  |  | $ | 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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