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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2023
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 from continuing operations.

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 provider of last resort, SOS, standard service offer 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.

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 I, with Brookfield and the 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 would 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 FET P&SA I and remains in the Regulated Transmission segment.

On February 2, 2023, FE, along with FET, entered into the FET P&SA II with Brookfield and the Brookfield Guarantors, pursuant to which FE agreed to sell to Brookfield at the closing, and Brookfield agreed to purchase from FE, an incremental 30% equity interest in FET for a purchase price of $3.5 billion. The majority of the purchase price is expected to be paid in cash upon closing, and the remainder will be payable by the issuance of a promissory note, which is expected to be repaid by the end of 2024. As a result of the consummation of the transaction, Brookfield’s interest in FET will increase from 19.9% to 49.9%, while FE will retain the remaining 50.1% ownership interests of FET. The transaction is subject to customary closing conditions, including approval from the PPUC, and completion of review by the CFIUS. In addition, pursuant to the FET P&SA II, FirstEnergy made the
necessary filings with the applicable regulatory authorities for the PA Consolidation. The FET Minority Equity Interest Sale is expected to close by early 2024. Upon closing, FET will continue to be consolidated in FirstEnergy’s GAAP financial statements.
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 former subsidiaries, interest expense on FE’s holding company debt and other investments or businesses that do not constitute an operating segment, including FEV’s investment of 33-1/3% equity ownership in Global Holding. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the following table of Segment Financial Information. As of September 30, 2023, 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, 2023, Corporate/Other had approximately $6.8 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)2023202220232022
External revenues
Regulated Distribution$2,978 $2,965 $8,231 $7,867 
Regulated Transmission508 503 1,487 1,394 
Corporate/Other1 7 6 21 
Reconciling Adjustments— — — — 
Total external revenues$3,487 $3,475 $9,724 $9,282 
Internal revenues
Regulated Distribution$56 $58 $171 $171 
Regulated Transmission1 — 3 3 
Corporate/Other— — — — 
Reconciling Adjustments(57)(58)(174)(174)
Total internal revenues$— $— $— $— 
Total revenues$3,487 $3,475 $9,724 $9,282 
Depreciation
Regulated Distribution$256 $242 $762 $719 
Regulated Transmission93 72 272 245 
Corporate/Other— 3 3 6 
Reconciling Adjustments17 15 51 50 
Total depreciation$366 $332 $1,088 $1,020 
Deferral of regulatory assets, net
Regulated Distribution$(136)$(85)$(249)$(250)
Regulated Transmission(4)(1)(4)(2)
Corporate/Other— — — — 
Reconciling Adjustments— — — — 
Total deferral of regulatory assets, net$(140)$(86)$(253)$(252)
Equity method investment earnings
Regulated Distribution$— $— $— $— 
Regulated Transmission— — — — 
Corporate/Other43 57 134 134 
Reconciling Adjustments— — — — 
Total equity method investment earnings$43 $57 $134 $134 
Interest expense
Regulated Distribution$159 $132 $456 $389 
Regulated Transmission65 41 185 155 
Corporate/Other87 99 244 276 
Reconciling Adjustments(22)(24)(57)(32)
Total interest expense$289 $248 $828 $788 
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2023202220232022
Income taxes (benefits)
Regulated Distribution$70 $92 $170 $213 
Regulated Transmission45 5 131 85 
Corporate/Other(86)8 (108)(61)
Reconciling Adjustments— — — — 
Total income taxes (benefits)$29 $105 $193 $237 
Earnings (losses) attributable to FE from continuing operations
Regulated Distribution$275 $361 $688 $828 
Regulated Transmission123 27 371 275 
Corporate/Other23 (54)(111)(294)
Reconciling Adjustments— — — — 
Total earnings attributable to FE from continuing operations$421 $334 $948 $809 
Cash Flows From Investing Activities:
Capital investments
Regulated Distribution$409 $415 $1,136 $1,127 
Regulated Transmission424 236 1,097 700 
Corporate/Other15 15 33 25 
Reconciling Adjustments— — — — 
Total capital investments$848 $666 $2,266 $1,852 
(In millions)As of September 30, 2023As of December 31, 2022
Assets
Regulated Distribution$32,434 $31,749 
Regulated Transmission14,454 13,835 
Corporate/Other583 524 
Reconciling Adjustments— — 
Total assets$47,471 $46,108 
Goodwill
Regulated Distribution$5,004 $5,004 
Regulated Transmission614 614 
Corporate/Other— — 
Reconciling Adjustments— — 
Total goodwill$5,618 $5,618