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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 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 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 June 30, 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 June 30, 2023, Corporate/Other had approximately $6.8 billion of FE holding company debt.
Financial information for FirstEnergy’s business segments and reconciliations to consolidated amounts is presented below:
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2023202220232022
External revenues
Regulated Distribution$2,484 $2,370 $5,253 $4,902 
Regulated Transmission519 440 979 891 
Corporate/Other3 8 5 14 
Reconciling Adjustments— — — — 
Total external revenues$3,006 $2,818 $6,237 $5,807 
Internal revenues
Regulated Distribution$58 $56 $115 $113 
Regulated Transmission1 1 2 3 
Corporate/Other— — — — 
Reconciling Adjustments(59)(57)(117)(116)
Total internal revenues$— $— $— $— 
Total revenues$3,006 $2,818 $6,237 $5,807 
Depreciation
Regulated Distribution$255 $242 $506 $477 
Regulated Transmission88 87 179 173 
Corporate/Other1 1 3 3 
Reconciling Adjustments17 18 34 35 
Total depreciation$361 $348 $722 $688 
Amortization (deferral) of regulatory assets, net
Regulated Distribution$(34)$(127)$(113)$(165)
Regulated Transmission1 (2)— (1)
Corporate/Other— — — — 
Reconciling Adjustments— — — — 
Total amortization (deferral) of regulatory assets, net$(33)$(129)$(113)$(166)
Equity method investment earnings
Regulated Distribution$— $— $— $— 
Regulated Transmission— — — — 
Corporate/Other35 65 91 77 
Reconciling Adjustments— — — — 
Total equity method investment earnings$35 $65 $91 $77 
Interest expense
Regulated Distribution$151 $128 $297 $257 
Regulated Transmission61 55 120 114 
Corporate/Other82 88 157 177 
Reconciling Adjustments(18)(6)(35)(8)
Total interest expense$276 $265 $539 $540 
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2023202220232022
Income taxes (benefits)
Regulated Distribution$44 $52 $100 $121 
Regulated Transmission46 39 86 80 
Corporate/Other(16)(42)(22)(69)
Reconciling Adjustments— — — — 
Total income taxes (benefits)$74 $49 $164 $132 
Earnings attributable to FE
Regulated Distribution$177 $202 $413 $467 
Regulated Transmission134 123 248 248 
Corporate/Other(76)(138)(134)(240)
Reconciling Adjustments— — — — 
Total earnings attributable to FE$235 $187 $527 $475 
Capital investments
Regulated Distribution$393 $376 $727 $712 
Regulated Transmission365 267 673 464 
Corporate/Other11 4 18 10 
Reconciling Adjustments— — — — 
Total capital investments$769 $647 $1,418 $1,186 
(In millions)As of June 30, 2023As of December 31, 2022
Assets
Regulated Distribution$32,201 $31,749 
Regulated Transmission14,199 13,835 
Corporate/Other665 524 
Reconciling Adjustments— — 
Total assets$47,065 $46,108 
Goodwill
Regulated Distribution$5,004 $5,004 
Regulated Transmission614 614 
Corporate/Other— — 
Reconciling Adjustments— — 
Total goodwill$5,618 $5,618