FIRSTENERGY CORP (FE)

FirstEnergy Corp. (FE) and its subsidiaries are principally involved in the transmission, distribution and generation of electricity. Its electric operating companies form one of the largest investor-owned electric systems in the United States. FirstEnergy's transmission operations include more than 24,000 miles of transmission lines and two regional transmission operation centers. Its subsidiaries MP and AGC control 3,610 MWs of generation capacity, including 30 MWs of solar and 487 MWs of pumped-storage hydroelectric capacity from a 16.25% interest in the Bath County facility in Virginia.

The company reports three segments. The Distribution segment consists of the Ohio Companies (OE, CEI and TE) and FE PA, serves about 4.3 million customers in Ohio and Pennsylvania, and had $11.1 billion of rate base at December 31, 2025. The Integrated segment consists of JCP&L, MP and PE. It distributes electricity to about 2 million customers in New Jersey, West Virginia and Maryland, provides transmission in New Jersey, West Virginia, Maryland and Virginia, and operates MP's regulated generation, with $10.2 billion of rate base. The Stand-Alone Transmission segment consists of FE's ownership in FET and KATCo, with $5.4 billion of FirstEnergy-owned rate base. FET is 50.1% owned by FE and 49.9% by Brookfield, and owns ATSI, MAIT and TrAIL. Its revenues come primarily from forward-looking formula rates. FET also participates in PJM-awarded transmission projects through the Valley Link and Grid Growth ventures with partners including Transource and DominionHV. Corporate/Other covers corporate support costs, FE holding company debt of about $6.8 billion, and 67 MWs of OVEC generation entitlement.

The Electric Companies serve over six million customers across roughly 65,000 square miles in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and New York, an area with a population of about 14 million and a total rate base of about $21.3 billion. Their rates are set by FERC and state commissions on a cost-based basis. Certain utilities have default service obligations for non-shopping customers, supplied through state-approved competitive procurement processes. Demand peaks in summer and winter, and weather materially affects results.

All facilities are in the PJM Region under the reliability oversight of RFC and NERC. There is generally no competition for electric distribution service in the Electric Companies' territories, although non-incumbent developers can compete for certain PJM transmission projects under FERC Order No. 1000. MP buys coal mainly from mines in Pennsylvania and West Virginia under contracts expiring through 2030. FirstEnergy Service Company (FESC) provides shared corporate services to affiliates at cost. As of December 31, 2025, FirstEnergy had 11,186 employees, about 44% of them represented by unions under 15 collective bargaining agreements. The business is capital intensive, and the company monitors supply chain constraints and tariffs.