PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Components of Net Periodic Benefit Costs

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 September 30,	2023		2022		2023		2022
	(In millions)
Service costs	$	35	$	46	$	1	$	1
Interest costs	106		68		5		3
Expected return on plan assets	(151)		(164)		(7)		(10)
Amortization of prior service costs (credits) (1)	1		1		(3)		(3)
Special termination benefits (2)	13		—		5		—

Net periodic benefit costs (credits)	$	4	$	(49)	$	1	$	(9)
Net periodic benefit costs (credits), net of amounts capitalized	$	(15)	$	(77)	$	1	$	(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 September 30, 2022, and immaterial for the three months ended September 30, 2023.

(2) Related to benefits provided in connection with the PEER.


Components of Net Periodic Benefit Costs (Credits)	Pension				OPEB
For the Nine Months Ended September 30,	2023		2022		2023		2022
	(In millions)
Service costs	$	104	$	138	$	2	$	3
Interest costs	322		204		16		8
Expected return on plan assets	(421)		(492)		(23)		(30)
Amortization of prior service costs (credits) (1)	2		2		(7)		(8)
Special termination benefits (2)	18		—		7		—
Pension and OPEB mark-to-market adjustment	(59)		—		—		—
Net periodic benefit credits	$	(34)	$	(148)	$	(5)	$	(27)
Net periodic benefit credits, net of amounts capitalized	$	(88)	$	(218)	$	(6)	$	(28)

(1) The income tax benefits associated with the pension and OPEB prior service costs amortized out of AOCI were $1 million and $2 million for the nine months ended September 30, 2023 and 2022, respectively.

(2) Related to benefits provided in connection with the PEER.

Schedule of Assumptions Used to Determine Net Periodic Benefit Cost


Assumptions for 2023 net periodic credits	Pension	OPEB
Effective rate for interest costs on benefit obligations (1)	5.10%/4.80%	5.06	%
Effective rate for service costs (1)	5.34%/5.11%	5.41	%
Effective rate for interest on service costs (1)	5.22%/4.94%	5.33	%
Annualized expected rate of return on plan assets	8.00%	7.00	%

(1) Pension rates effective for January 1, 2023 through April 30, 2023 and May 1, 2023 through December 31, 2023, respectively.