PENSION AND OTHER POST-EMPLOYMENT BENEFITS

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

PENSION AND OTHER POST-EMPLOYMENT BENEFITS

PENSION AND OTHER POST-EMPLOYMENT BENEFITS

The components of FirstEnergy’s net periodic benefit costs (credits) for pension and OPEB were as follows:

Components of Net Periodic Benefit Costs (Credits)	Pension				OPEB
For the Three Months Ended March 31,	2023		2022		2023		2022
	(In millions)
Service costs	$	34	$	46	$	1	$	1
Interest costs	109		68		5		3
Expected return on plan assets	(128)		(164)		(8)		(10)
Amortization of prior service costs (credits) (1)	—		1		(2)		(3)
Net periodic benefit costs (credits)	$	15	$	(49)	$	(4)	$	(9)
Net periodic benefit credits, net of amounts capitalized	$	(3)	$	(69)	$	(4)	$	(9)

(1) The income tax benefits associated with pension and OPEB prior service costs amortized out of AOCI were $1 million for the three months ended March 31, 2023 and 2022.

FirstEnergy’s pension and OPEB funding policy is based on actuarial computations using the projected unit credit method. FirstEnergy does not currently expect to have a required contribution to the pension plan until 2025, which, based on various assumptions, including annual expected rate of return on assets of 8.00% in 2023, is expected to be approximately $250 million. However, FirstEnergy may elect to contribute to the pension plan voluntarily.

Service costs, net of capitalization, are reported within Other operating expenses on FirstEnergy’s Consolidated Statements of Income. Non-service costs, other than the pension and OPEB mark-to-market adjustment, which is separately shown, are reported within “Miscellaneous income, net”, within “Other Income (Expense)” on FirstEnergy’s Consolidated Statements of Income.