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Segment Information
 6 Months Ended
Jun. 30, 2022
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 POLR, SOS, SSO 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.

On April 6, 2020, JCP&L signed an asset purchase agreement with Yards Creek Energy, LLC, a subsidiary of LS Power to sell its 50% interest in the Yards Creek pumped-storage hydro generation facility. With the receipt of all required regulatory approvals, the transaction was consummated on March 5, 2021 and resulted in a $109 million gain within the Regulated Distribution segment in the first quarter of 2021. The gain from the transaction was applied against and reduced JCP&L’s existing regulatory asset for previously deferred storm costs and, as a result, was offset by expense in the “Amortization (deferral) of regulatory assets, net”, line on the Consolidated Statements of Income, resulting in no earnings impact to FirstEnergy or JCP&L.

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, with Brookfield and 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 will 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 transaction and remains in the Regulated Transmission segment.
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 the FES Debtors, interest expense on FE’s holding company debt and other investments or businesses that do not constitute an operating segment. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the following table of Segment Financial Information. As of June 30, 2022, 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, 2022, Corporate/Other had approximately $5.5 billion of FE holding company debt.
Financial information for FirstEnergy’s business segments and reconciliations to consolidated amounts is presented below.
Segment Financial Information
Regulated DistributionRegulated TransmissionCorporate/ OtherReconciling AdjustmentsFirstEnergy Consolidated
For the Three Months Ended(In millions)
June 30, 2022
External revenues$2,370 $440 $8 $— $2,818 
Internal revenues56 1 — (57)— 
Total revenues$2,426 $441 $8 $(57)$2,818 
Depreciation242 87 1 18 348 
Deferral of regulatory assets, net(127)(2)— — (129)
Miscellaneous income (expense), net94 7 65 (6)160 
Interest expense128 55 88 (6)265 
Income taxes (benefits)52 39 (42)— 49 
Net income (loss)202 128 (138)— 192 
Income attributable to noncontrolling interest— 5 — — 5 
Earnings attributable to FE202 123 (138)— 187 
Property additions$356 $267 $4 $— $627 
June 30, 2021
External revenues$2,208 $411 $3 $— $2,622 
Internal revenues50 8 — (58)— 
Total revenues$2,258 $419 $3 $(58)$2,622 
Depreciation229 77 1 16 323 
Amortization of regulatory assets, net43 6 — — 49 
DPA penalty— — 230 — 230 
Miscellaneous income (expense), net88 11 14 (5)108 
Interest expense131 63 98 (5)287 
Income taxes (benefits)71 37 (12)— 96 
Net income (loss)274 116 (332)— 58 
Property additions$346 $257 $19 $— $622 
For the Six Months Ended
June 30, 2022
External revenues$4,902 $891 $14 $— $5,807 
Internal revenues113 3 — (116)— 
Total revenues$5,015 $894 $14 $(116)$5,807 
Depreciation477 173 3 35 688 
Deferral of regulatory assets, net(165)(1)— — (166)
Miscellaneous income (expense), net179 13 82 (8)266 
Interest expense257 114 177 (8)540 
Income taxes (benefits)121 80 (69)— 132 
Net income (loss)467 253 (240)— 480 
Income attributable to noncontrolling interest— 5 — — 5 
Earnings attributable to FE467 248 (240)— 475 
Property additions$673 $464 $10 $— $1,147 
June 30, 2021
External revenues$4,529 $812 $7 $— $5,348 
Internal revenues99 12 — (111)— 
Total revenues$4,628 $824 $7 $(111)$5,348 
Depreciation455 158 2 31 646 
Amortization of regulatory assets, net130 11 — — 141 
DPA penalty— — 230 — 230 
Miscellaneous income (expense), net195 22 36 (10)243 
Interest expense259 124 199 (10)572 
Income taxes (benefits)153 70 (40)— 183 
Net income (loss)587 225 (419)— 393 
Property additions$667 $530 $29 $— $1,226 
As of June 30, 2022
Total assets$31,133 $13,303 $684 $— $45,120 
Total goodwill$5,004 $614 $— $— $5,618 
As of December 31, 2021
Total assets$30,812 $13,237 $1,383 $— $45,432 
Total goodwill$5,004 $614 $— $— $5,618