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Segment Information
 9 Months Ended
Sep. 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 September 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 September 30, 2022, Corporate/Other had approximately $5.4 billion of FE holding company debt.
Financial information for FirstEnergy’s business segments and reconciliations to consolidated amounts is presented below:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2022202120222021
External revenues
Regulated Distribution$2,965 $2,708 $7,867 $7,237 
Regulated Transmission503 411 1,394 1,223 
Corporate/Other7 5 21 12 
Reconciling Adjustments— — — — 
Total external revenues$3,475 $3,124 $9,282 $8,472 
Internal revenues
Regulated Distribution$58 $51 $171 $150 
Regulated Transmission— 4 3 10 
Corporate/Other— — — — 
Reconciling Adjustments(58)(55)(174)(160)
Total internal revenues$— $— $— $— 
Total revenues$3,475 $3,124 $9,282 $8,472 
Depreciation
Regulated Distribution$242 $229 $719 $684 
Regulated Transmission72 82 245 240 
Corporate/Other3 (1)6 1 
Reconciling Adjustments15 16 50 47 
Total depreciation$332 $326 $1,020 $972 
Amortization (deferral) of regulatory assets, net
Regulated Distribution$(85)$29 $(250)$159 
Regulated Transmission(1)1 (2)12 
Corporate/Other— — — — 
Reconciling Adjustments— — — — 
Total amortization (deferral) of regulatory assets, net$(86)$30 $(252)$171 
DPA penalty
Corporate/Other$— $— $— $230 
Total DPA penalty$— $— $— $230 
Miscellaneous income (expense), net
Regulated Distribution$90 $102 $269 $297 
Regulated Transmission17 12 30 34 
Corporate/Other85 23 167 59 
Reconciling Adjustments(24)(1)(32)(11)
Total miscellaneous income (expense), net$168 $136 $434 $379 
Interest expense
Regulated Distribution$132 $133 $389 $392 
Regulated Transmission41 62 155 186 
Corporate/Other99 89 276 288 
Reconciling Adjustments(24)(1)(32)(11)
Total interest expense$248 $283 $788 $855 
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2022202120222021
Income taxes (benefits)
Regulated Distribution$92 $108 $213 $261 
Regulated Transmission5 23 85 93 
Corporate/Other8 (43)(61)(83)
Reconciling Adjustments— — — — 
Total income taxes (benefits)$105 $88 $237 $271 
Net income (loss)
Regulated Distribution$361 $416 $828 $1,003 
Regulated Transmission37 70 290 295 
Corporate/Other(54)(23)(294)(442)
Reconciling Adjustments— — — — 
Total net income (loss)$344 $463 $824 $856 
Income attributable to noncontrolling interest
Regulated Transmission$10 $— $15 $— 
Total income attributable to noncontrolling interest$10 $— $15 $— 
Earnings attributable to FE
Regulated Distribution$361 $416 $828 $1,003 
Regulated Transmission27 70 275 295 
Corporate/Other(54)(23)(294)(442)
Reconciling Adjustments— — — — 
Total earnings attributable to FE$334 $463 $809 $856 
Property additions
Regulated Distribution$390 $326 $1,063 $993 
Regulated Transmission236 202 700 732 
Corporate/Other15 14 25 43 
Reconciling Adjustments— — — — 
Total property additions$641 $542 $1,788 $1,768 
(In millions)As of September 30, 2022As of December 31, 2021
Assets
Regulated Distribution$30,959 $30,812 
Regulated Transmission13,211 13,237 
Corporate/Other681 1,383 
Reconciling Adjustments— — 
Total assets$44,851 $45,432 
Goodwill
Regulated Distribution$5,004 $5,004 
Regulated Transmission614 614 
Corporate/Other— — 
Reconciling Adjustments— — 
Total goodwill$5,618 $5,618