XML 35 R25.htm IDEA: XBRL DOCUMENT v3.22.2.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured on Recurring Basis
The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy:
September 30, 2022December 31, 2021
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets(In millions)
Derivative assets FTRs(1)
$— $— $17 $17 $— $— $9 $9 
Equity securities2 — — 2 2 — — 2 
U.S. state debt securities— 256 — 256 — 273 — 273 
Cash, cash equivalents and restricted cash(2)
277 — — 277 1,511 — — 1,511 
Other(3)
— 40 — 40 — 42 — 42 
Total assets$279 $296 $17 $592 $1,513 $315 $9 $1,837 
Liabilities
Derivative liabilities FTRs(1)
$— $— $(2)$(2)$— $— $(1)$(1)
Total liabilities$— $— $(2)$(2)$— $— $(1)$(1)
Net assets$279 $296 $15 $590 $1,513 $315 $8 $1,836 
(1) Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.
(2) Restricted cash of $26 million and $49 million as of September 30, 2022 and December 31, 2021, respectively, primarily relates to cash collected from MP, PE and the Ohio Companies’ customers that is specifically used to service debt of their respective securitization or funding companies.
(3) Primarily consists of short-term investments.
Schedule of Quantitative Information for Level 3 Valuation
The following table provides quantitative information for FTRs contracts that are classified as Level 3 in the fair value hierarchy for the period ended September 30, 2022:
Fair Value, Net (In millions)Valuation
Technique		Significant InputRangeWeighted AverageUnits
FTRs$15 ModelRTO auction clearing prices$2.40 to$7.40 $4.00Dollars/MWH
Schedule of Amortized Cost Basis, Unrealized Gains and Losses and Fair Values of Investments in Available-for-sale Securities
The following table summarizes the amortized cost basis, unrealized gains, unrealized losses and fair values of investments held in spent nuclear fuel disposal trusts as of September 30, 2022, and December 31, 2021:
September 30, 2022(1)
December 31, 2021(2)
Cost BasisUnrealized GainsUnrealized LossesFair ValueCost BasisUnrealized GainsUnrealized LossesFair Value
(In millions)
Debt securities$290 $— $(34)$256 $280 $2 $(9)$273 
(1) Excludes short-term cash investments of $7 million.
(2) Excludes short-term cash investments of $11 million.
Schedule of Proceeds from the Sale of Investments in Available-for-sale Securities, Realized Gains and Losses on Those Sales, and Interest and Dividend Income
Proceeds from the sale of investments in AFS debt securities, realized gains and losses on those sales and interest and dividend income for the three and nine months ended September 30, 2022 and 2021, were as follows:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2022202120222021
(In millions)
Sale proceeds$15 $16 $31 $29 
Realized gains— — 1 — 
Realized losses(2)(1)(4)(2)
Interest and dividend income3 3 9 8 
Schedule of Fair Value and Related Carrying Amounts of Long-term Debt and Other Long-term Obligations The following table provides the approximate fair value and related carrying amounts of long-term debt, which excludes finance lease obligations and net unamortized debt issuance costs, unamortized fair value adjustments, premiums and discounts as of September 30, 2022 and December 31, 2021:
September 30, 2022December 31, 2021
(In millions)
Carrying value$21,343 $23,946 
Fair value$19,203 $27,043 
Schedule of Long-term Debt Redemption and Issuance
FirstEnergy had the following redemptions and issuances during the nine months ended September 30, 2022:
CompanyTypeRedemption / Issuance DateInterest RateMaturityAmount (in Millions)Description
Redemptions
FEUnsecured NotesJanuary, 20224.25%2023$850
In December 2021, FE provided notice of redemption with a make-whole premium of approximately $38 million ($30 million after-tax).
TESenior Secured NotesFebruary, 20222.65%2028$25On January 27, 2022, TE instructed its indenture trustee to provide notice of partial redemption.
CEISenior Notes, Series AMarch, 20222.77%2034$150On February 11, 2022, CEI instructed its indenture trustee to provide notice of full redemption.
WPFMBsApril, 20223.34%2022$100WP redeemed FMBs that became due.
FEUnsecured NotesJune, 20222.85%2022$500On May 23, 2022 FE provided notice of redemption.
FEUnsecured NotesJune, 20227.375%2031$715
On May 25, 2022, FE commenced an offer to purchase for cash a portion of its 2031 Notes and 2047 Notes, which had $1.5 billion and $1 billion principal amounts outstanding, respectively. A portion of these notes were redeemed for approximately $1.1 billion, including a tender premium of approximately $101 million ($80 million after-tax). In addition, FE recognized approximately $7 million ($5 million after-tax) of deferred cash flow hedge losses and $10 million ($8 million after-tax) in other unamortized debt costs and fees associated with the FE debt redemptions.
FEUnsecured NotesJune, 2022
4.85%
2047$284
PennFMBsJune, 20226.09%2022$100Penn redeemed FMBs that became due.
FEUnsecured NotesAugust-September 20227.375%2031$27
During the third quarter of 2022, FE repurchased a portion of the principal amount of its 2031 Notes and 2047 Notes through the open market for approximately $134 million including a discount of approximately $3 million ($2 million after tax). In addition, FE recognized approximately $2 million ($1 million after-tax) in other unamortized debt costs related to the FE open market repurchases.
FEUnsecured NotesAugust-September 2022
4.85%
2047$110
Issuances
PennFMBsApril, 20223.79%2032$150Proceeds are expected to be received on November 29, 2022, and used to repay short-term borrowings.
OESenior Unsecured NotesSeptember, 20225.50%2033$300Proceeds were used to repay borrowings outstanding under the regulated money pool, to finance capital expenditures, to fund working capital needs and for other general corporate purposes.