XML 28 R12.htm IDEA: XBRL DOCUMENT v3.25.0.1
REVENUE
 12 Months Ended
Dec. 31, 2024
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.

FE and its subsidiaries are principally involved in the transmission, distribution and generation of electricity through its reportable segments: Distribution, Integrated and Stand-Alone Transmission.

•Distribution Segment, which consists of the Ohio Companies and FE PA;
•Integrated Segment, which consists of MP, PE and JCP&L; and
•Stand-Alone Transmission Segment, which consists of FE's ownership in FET and KATCo.

The Electric Companies distribute electricity through FirstEnergy’s utility operating companies and also controls 3,604 MWs of regulated electric generation capacity located primarily in West Virginia and Virginia. Each of the Electric Companies earns
revenue from state-regulated rate tariffs under which it provides distribution services to residential, commercial and industrial customers in its service territory. The Electric Companies 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 14, “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.
The following represents a disaggregation of revenue from contracts with customers for the years ended December 31, 2024, 2023 and 2022:
For the Years Ended December 31,
(In millions)202420232022
 Distribution
Retail generation and distribution services(1)
Residential $4,514 $4,344 $3,954 
Commercial 1,522 1,528 1,432 
Industrial 588 726 806 
Other 73 72 56 
Wholesale 6 20 19 
Other revenue from contracts with customers (2)
80 89 86 
Total revenues from contracts with customers6,783 6,779 6,353 
Other revenue unrelated to contracts with customers (3)
80 75 72 
Total Distribution$6,863 $6,854 $6,425 
Integrated
Retail generation and distribution services
Residential$2,528 $2,137 $2,121 
Commercial1,142 1,023 1,016 
Industrial577 545 505 
Other32 30 26 
Wholesale146 208 475 
Transmission 380 318 282 
Other revenue from contracts with customers(4)
19 24 17 
Total revenues from contracts with customers4,824 4,285 4,442 
ARP (4)
10 — — 
Other revenue unrelated to contracts with customers(3)
42 35 28 
Total Integrated $4,876 $4,320 $4,470 
Stand-Alone Transmission
ATSI $980 $967 $911 
TrAIL 269 279 270 
MAIT 436 394 340 
KATCo85 89 59 
Other (2)2 1 
Total revenues from contracts with customers1,768 1,731 1,581 
Other revenue unrelated to contracts with customers19 17 16 
Total Stand-Alone Transmission $1,787 $1,748 $1,597 
Corporate/Other, Eliminations and Reconciling Adjustments (5)
Wholesale$9 $11 $27 
Eliminations and reconciling adjustments (63)(63)(60)
Total Corporate/Other, Eliminations and Reconciling Adjustments$(54)$(52)$(33)
FirstEnergy Total Revenues $13,472 $12,870 $12,459 
(1) Includes approximately $58 million as of December 31, 2022 of customer refunds associated with the Ohio Stipulation that became effective in December 2021.
(2) Primarily includes amounts collected from customers to administer and repay securitization bonds and pole attachment revenue.
(3) Primarily includes late payment charges and revenue from FTRs.
(4) Related to lost distribution revenues associated with energy efficiency in New Jersey.
(5) Includes eliminations and reconciling adjustments of inter-segment revenues.
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 Electric Companies 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, FE PA, 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.

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 Electric Companies 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 Electric Companies’ 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 Electric Companies 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 Alternative Revenue Programs 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.

Transmission infrastructure owned and operated by the Transmission Companies and certain of FirstEnergy's Electric Companies (JCP&L, MP and PE) transmits electricity from generation sources to distribution facilities. Transmission revenues are derived primarily from forward-looking formula rates. See Note 14, “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 rate base and actual costs. Revenues and cash receipts for the stand-ready obligation of providing transmission service are recognized ratably over time.

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.

RECEIVABLES

Receivables from contracts with customers include retail electric sales and distribution deliveries to residential, commercial and industrial customers of the Electric Companies. Billed and unbilled customer receivables as of December 31, 2024 and 2023, are included below.
As of December 31,
Customer Receivables20242023
 (In millions)
Billed(1)
$867 $717 
Unbilled718 665 
1,585 1,382 
Less: Uncollectible Reserve 55 64 
Total Customer Receivables $1,530 $1,318 
(1) Includes approximately $284 million and $288 million as of December 31, 2024 and 2023, respectively, that are past due by greater than 30 days.
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 customer receivables 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 Electric Companies are able to utilize to ensure payment. FirstEnergy’s uncollectible risk on PJM receivables, resulting from transmission and wholesale sales, is minimal due to the nature of PJM’s settlement process and as a result there is no current allowance for doubtful accounts.
Activity in the allowance for uncollectible accounts on receivables for the years ended December 31, 2024, 2023 and 2022 are as follows:
(In millions)202420232022
Customer Receivables:
Beginning of year balance $64 $137 $159 
Charged to income(1)
73 8 59 
Charged to other accounts(2)
39 34 62 
Write-offs (121)(115)(143)
End of year balance $55 $64 $137 
Other Receivables:
Beginning of year balance$15 $11 $10 
Charged to income 1 7 4 
Charged to other accounts(2)
(5)(1)4 
Write-offs(5)(2)(7)
End of year balance$6 $15 $11 
(1) Customer receivable amounts charged (credited) to income for the years ended December 31, 2024, 2023, and 2022, include approximately $17 million, $(15) million, and $11 million, respectively, deferred for future recovery (refund).
(2) Represents recoveries and reinstatements of accounts previously written off for uncollectible accounts.