FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured on Recurring Basis

The following table sets forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy:

	June 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(In millions)
Derivative assets FTRs (1)	$	—	$	—	$	10	$	10	$	—	$	—	$	11	$	11
Equity securities	2		—		—		2		2		—		—		2
U.S. state and municipal debt securities	—		269		—		269		—		266		—		266
Cash, cash equivalents and restricted cash (2)	214		—		—		214		206		—		—		206
Other (3)	—		41		—		41		—		40		—		40
Total assets	$	216	$	310	$	10	$	536	$	208	$	306	$	11	$	525
Liabilities
Derivative liabilities FTRs (1)	$	—	$	—	$	(5)	$	(5)	$	—	$	—	$	(2)	$	(2)
Total liabilities	$	—	$	—	$	(5)	$	(5)	$	—	$	—	$	(2)	$	(2)
Net assets	$	216	$	310	$	5	$	531	$	208	$	306	$	9	$	523

(1) Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.

(2) Restricted cash of $43 million and $46 million as of June 30, 2023 and December 31, 2022, 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 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 June 30, 2023, and December 31, 2022:

	June 30, 2023 (1)								December 31, 2022 (1)
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(In millions)
Debt securities	$	298	$	—	$	(29)	$	269	$	294	$	—	$	(28)	$	266

(1) Excludes short-term cash investments of $5 million as of June 30, 2023 and December 31, 2022.

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 six months ended June 30, 2023 and 2022, were as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
	(In millions)
Sale proceeds	$	17	$	10	$	18	$	16
Realized gains	—		1		—		1
Realized losses	(1)		(1)		(2)		(2)
Interest and dividend income	3		3		6		6

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 June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
	(In millions)
Carrying value	$	23,726	$	21,641
Fair value	$	21,921	$	19,784

Schedule of Long-term Debt Redemption and Issuance

FirstEnergy had the following redemptions and issuances during the six months ended June 30, 2023:

Company	Type	Redemption / Issuance Date	Interest Rate	Maturity	Amount (In millions)	Description
Redemptions (1)
ME	Unsecured Notes	March, 2023	3.50%	2023	$300	ME redeemed unsecured notes that became due.
FE	Unsecured Notes	May, 2023	7.375%	2031	$194	FE repurchased approximately $194 million of the principal amount of its 2031 Notes through the open market for $228 million including a premium of approximately $34 million ($27 million after-tax). In addition, FE recognized approximately $2 million ($1 million after-tax) of deferred cash flow hedge losses associated with the FE debt redemptions.
Issuances
WP	FMBs	January, 2023	5.29%	2033	$50	Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes.
MAIT	Unsecured Notes	February, 2023	5.39%	2033	$175	Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes.
ME	Unsecured Notes	March, 2023	5.20%	2028	$425	Proceeds were used to repay short-term borrowings, including borrowings incurred to repay, at maturity, the $300 million aggregate principal amount of ME's 3.50% unsecured notes due March 15, 2023, to finance capital expenditures and for other general corporate purposes.
PN	Unsecured Notes	March, 2023	5.15%	2026	$300	Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes.
ATSI	Unsecured Notes	May, 2023	5.13%	2033	$150	Proceeds were used to repay short-term borrowings, to finance capital expenditures and for other general corporate purposes
FE	Unsecured Convertible Notes	May, 2023	4.00%	2026	$1,500	Proceeds were used to repay short-term borrowings, to repurchase a portion of its 2031 Notes, to fund the qualified pension plan and for other general corporate purposes.

(1) Excludes principal payments on securitized bonds.