FIRSTENERGY CORPFE
FIRSTENERGY CORP Segments Disclosure
SEGMENT INFORMATION
The disclosures in this note apply to both Registrants, unless indicated otherwise.
FirstEnergy
FE and its subsidiaries are principally involved in the transmission, distribution and generation of electricity through its reportable segments: Distribution, Integrated and Stand-Alone Transmission. The external reportable segments are consistent with the internal financial reports used by FirstEnergy's Chairman, President and Chief Executive Officer, its CODM, to regularly assess the performance of each segment. FirstEnergy’s CODM uses earnings attributable to FE from continuing operations to assess performance, including considering actual versus budget variances to make operating decisions and allocate resources to the segments.
FirstEnergy's Distribution segment, which consists of the Ohio Companies and FE PA, distributes electricity through FirstEnergy’s electric operating companies in Ohio and Pennsylvania. The Distribution segment serves approximately 4.3 million customers in Ohio and Pennsylvania across its distribution footprint and purchases power for its default service or standard service offer requirements. The segment’s results reflect the costs of securing and delivering electric generation to customers, including the deferral and amortization of certain costs.
FirstEnergy's Integrated segment includes the distribution and transmission operations of JCP&L, MP and PE, as well as MP’s regulated generation operations. The Integrated segment distributes electricity to approximately 2 million customers in New Jersey, West Virginia and Maryland across its distribution footprint; provides transmission infrastructure in New Jersey, West Virginia, Maryland and Virginia to transmit electricity and operates 3,610 MWs of regulated generation capacity located primarily in West Virginia and Virginia, which includes three solar generation sites, representing 30 MWs of generation capacity. The segment’s results reflect the costs of securing and delivering electric generation to customers, including the deferral and amortization of certain costs. Additionally, on October 1, 2025, MP and PE filed their integrated resource plan with the WVPSC proposing, among other things, the addition of 70 MWs of solar generation by 2028, and 1,200 MWs of natural gas combined
cycle generation by 2031, which are expected to require an estimated capital investment of approximately $2.5 billion, as detailed in the filing. See Note 13., "Regulatory Matters," of the Combined Notes to Financial Statements of the Registrants for additional details.
FirstEnergy's Stand-Alone Transmission segment, which consists of FE's ownership in FET and KATCo, includes transmission infrastructure owned and operated by the Transmission Companies and used to transmit electricity. The segment’s revenues are primarily derived from forward-looking formula rates, pursuant to which 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.
FirstEnergy's Corporate/Other reflects corporate support and other costs not charged or attributable to the Electric Companies 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. On July 16, 2025, FEV sold its entire 33-1/3% equity ownership in Global Holding, the holding company for a joint venture in the Signal Peak mining and coal transportation operations, at book value to WMB Marketing Ventures, LLC and Pinesdale LLC for $47.5 million. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the following table of Segment Financial Information. Also included in Corporate/Other for segment reporting is 67 MWs of generation capacity, representing AE Supply’s OVEC capacity entitlement. As of December 31, 2025, Corporate/Other had approximately $6.8 billion of external FE holding company debt.Financial information for FirstEnergy’s business segments and reconciliations to consolidated amounts is presented below:
| (In millions) | Distribution | Integrated | Stand-Alone Transmission | Total Reportable Segments | Corporate/Other | Reconciling Adjustments | FirstEnergy Consolidated | |||||||||||||||||||||||||||||||||||||
| For the Years Ended | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| External revenues | $ | 7,508 | $ | 5,678 | $ | 1,886 | $ | 15,072 | $ | 18 | $ | — | $ | 15,090 | ||||||||||||||||||||||||||||||
| Internal revenues | 39 | 5 | 19 | 63 | — | (63) | — | |||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 7,547 | $ | 5,683 | $ | 1,905 | $ | 15,135 | $ | 18 | $ | (63) | $ | 15,090 | ||||||||||||||||||||||||||||||
Other operating expenses(1) | 2,479 | 1,416 | 328 | 4,223 | (90) | (11) | 4,122 | |||||||||||||||||||||||||||||||||||||
Depreciation(1) | 655 | 562 | 369 | 1,586 | 78 | — | 1,664 | |||||||||||||||||||||||||||||||||||||
| Amortization (deferral) of regulatory assets, net | (103) | (12) | 6 | (109) | — | — | (109) | |||||||||||||||||||||||||||||||||||||
| Ohio settlement charges | 275 | — | — | 275 | — | — | 275 | |||||||||||||||||||||||||||||||||||||
| Equity method investment earnings, net | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Interest expense(1) | 399 | 284 | 322 | 1,005 | 338 | (126) | 1,217 | |||||||||||||||||||||||||||||||||||||
Income taxes (benefits)(1) | 74 | 190 | 99 | 363 | (75) | — | 288 | |||||||||||||||||||||||||||||||||||||
Other expense (income) items(2) | 3,680 | 2,655 | 424 | 6,759 | 3 | 126 | 6,888 | |||||||||||||||||||||||||||||||||||||
| Earnings (losses) attributable to FE from continuing operations | 363 | 588 | 357 | 1,308 | (288) | — | 1,020 | |||||||||||||||||||||||||||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||||||||||||||||||||||||||||||||
| Capital investments | $ | 1,344 | $ | 1,842 | $ | 1,601 | $ | 4,787 | $ | (82) | $ | — | $ | 4,705 | ||||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| External revenues | $ | 6,824 | $ | 4,871 | $ | 1,768 | $ | 13,463 | $ | 9 | $ | — | $ | 13,472 | ||||||||||||||||||||||||||||||
| Internal revenues | 39 | 5 | 19 | 63 | — | (63) | — | |||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 6,863 | $ | 4,876 | $ | 1,787 | $ | 13,526 | $ | 9 | $ | (63) | $ | 13,472 | ||||||||||||||||||||||||||||||
Other operating expenses(1) | 2,378 | 1,254 | 347 | 3,979 | 75 | (10) | 4,044 | |||||||||||||||||||||||||||||||||||||
Depreciation(1) | 648 | 521 | 336 | 1,505 | 76 | — | 1,581 | |||||||||||||||||||||||||||||||||||||
| Amortization (deferral) of regulatory assets, net | (171) | (66) | 6 | (231) | — | — | (231) | |||||||||||||||||||||||||||||||||||||
| Equity method investment earnings, net | — | — | — | — | 58 | — | 58 | |||||||||||||||||||||||||||||||||||||
Interest expense(1) | 432 | 262 | 275 | 969 | 360 | (185) | 1,144 | |||||||||||||||||||||||||||||||||||||
Income taxes (benefits)(1) | 135 | 153 | 173 | 461 | (84) | — | 377 | |||||||||||||||||||||||||||||||||||||
Other expense (income) items(2) | 2,817 | 2,217 | 356 | 5,390 | 62 | 185 | 5,637 | |||||||||||||||||||||||||||||||||||||
| Earnings (losses) attributable to FE from continuing operations | 624 | 535 | 294 | 1,453 | (475) | — | 978 | |||||||||||||||||||||||||||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||||||||||||||||||||||||||||||||
| Capital investments | $ | 1,130 | $ | 1,542 | $ | 1,266 | $ | 3,938 | $ | 92 | $ | — | $ | 4,030 | ||||||||||||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| External revenues | $ | 6,813 | $ | 4,315 | $ | 1,731 | $ | 12,859 | $ | 11 | $ | — | $ | 12,870 | ||||||||||||||||||||||||||||||
| Internal revenues | 41 | 5 | 17 | 63 | — | (63) | — | |||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 6,854 | $ | 4,320 | $ | 1,748 | $ | 12,922 | $ | 11 | $ | (63) | $ | 12,870 | ||||||||||||||||||||||||||||||
Other operating expenses(1) | 2,129 | 1,156 | 338 | 3,623 | (34) | (10) | 3,579 | |||||||||||||||||||||||||||||||||||||
Depreciation(1) | 620 | 462 | 304 | 1,386 | 75 | — | 1,461 | |||||||||||||||||||||||||||||||||||||
| Amortization (deferral) of regulatory assets, net | (259) | (10) | 8 | (261) | — | — | (261) | |||||||||||||||||||||||||||||||||||||
| Equity method investment earnings, net | — | — | — | — | 175 | — | 175 | |||||||||||||||||||||||||||||||||||||
Interest expense(1) | 390 | 257 | 245 | 892 | 340 | (108) | 1,124 | |||||||||||||||||||||||||||||||||||||
Income taxes (benefits)(1) | 147 | 37 | 146 | 330 | (63) | — | 267 | |||||||||||||||||||||||||||||||||||||
Other expense (income) items(2) | 3,240 | 2,118 | 308 | 5,666 | (22) | 108 | 5,752 | |||||||||||||||||||||||||||||||||||||
| Earnings (losses) attributable to FE from continuing operations | 587 | 300 | 399 | 1,286 | (163) | — | 1,123 | |||||||||||||||||||||||||||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||||||||||||||||||||||||||||||||
| Capital investments | $ | 936 | $ | 1,212 | $ | 1,093 | $ | 3,241 | $ | 115 | $ | — | $ | 3,356 | ||||||||||||||||||||||||||||||
| Distribution | Integrated | Stand-Alone Transmission | Total Reportable Segments | Corporate/Other | Reconciling Adjustments | FirstEnergy Consolidated | ||||||||||||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 20,653 | $ | 20,352 | $ | 14,903 | $ | 55,908 | $ | 1,793 | $ | (1,797) | $ | 55,904 | ||||||||||||||||||||||||||||||
| Total Goodwill | $ | 3,222 | $ | 1,953 | $ | 443 | $ | 5,618 | $ | — | $ | — | $ | 5,618 | ||||||||||||||||||||||||||||||
| As of December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 19,949 | $ | 18,637 | $ | 13,528 | $ | 52,114 | $ | 1,975 | $ | (2,045) | $ | 52,044 | ||||||||||||||||||||||||||||||
| Total Goodwill | $ | 3,222 | $ | 1,953 | $ | 443 | $ | 5,618 | $ | — | $ | — | $ | 5,618 | ||||||||||||||||||||||||||||||
(1) FirstEnergy considers this line to be a significant expense.
(2) Consists of Fuel, Purchased power, General taxes, Ohio settlement charges, Impairment of assets, Debt redemption costs, Miscellaneous income, net, Capitalized financing costs, Pension and OPEB mark-to-market adjustments, and Income attributable to noncontrolling interest.
JCP&L
JCP&L is principally involved in the transmission and distribution of electricity through its reportable segments: Distribution and Transmission. The external reportable segments are consistent with the internal financial reports used by JCP&L's President, its CODM, to regularly assess the performance of each segment. JCP&L’s CODM uses net income to assess performance, including considering actual versus budget variances to make operating decisions and allocate resources to the segments.
JCP&L’s Distribution segment distributes electricity to approximately 1.2 million customers in New Jersey across its distribution footprint and procures electric supply to serve its BGS customers through a statewide auction process approved by the NJBPU. The segment’s results reflect the costs of securing and delivering electric generation to customers, including the deferral and amortization of certain costs.
JCP&L’s Transmission segment includes transmission infrastructure owned and operated by JCP&L that is used to transmit electricity. The segment’s revenues are primarily derived from forward-looking formula rates, pursuant to which 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 JCP&L’s transmission facilities.
Financial information for JCP&L’s reportable segments and reconciliations are presented below:
(In millions) For the Years Ended | Distribution | Transmission | Total Reportable Segments | Reconciling Adjustments | JCP&L | |||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| External revenues | $ | 2,379 | $ | 259 | $ | 2,638 | $ | — | $ | 2,638 | ||||||||||||||||||||||
| Internal revenues | 175 | — | 175 | (175) | — | |||||||||||||||||||||||||||
| Total revenues | $ | 2,554 | $ | 259 | $ | 2,813 | $ | (175) | $ | 2,638 | ||||||||||||||||||||||
Other operating expenses(1) | 791 | 64 | 855 | (175) | 680 | |||||||||||||||||||||||||||
Depreciation(1) | 209 | 54 | 263 | — | 263 | |||||||||||||||||||||||||||
| Deferral of regulatory assets, net | (134) | — | (134) | — | (134) | |||||||||||||||||||||||||||
Interest expense - non-affiliates(1) | 98 | 34 | 132 | — | 132 | |||||||||||||||||||||||||||
Interest expense - affiliates(1) | 6 | — | 6 | — | 6 | |||||||||||||||||||||||||||
| Income taxes | 71 | 36 | 107 | — | 107 | |||||||||||||||||||||||||||
Other expense (income) items(2) | 1,309 | (31) | 1,278 | — | 1,278 | |||||||||||||||||||||||||||
| Net Income | 204 | 102 | 306 | — | 306 | |||||||||||||||||||||||||||
| Cash Flows from Investing Activities: | ||||||||||||||||||||||||||||||||
| Capital investments | $ | 454 | $ | 651 | $ | 1,105 | $ | — | 1,105 | |||||||||||||||||||||||
(In millions) For the Years Ended | Distribution (3) | Transmission | Total Reportable Segments | Reconciling Adjustments | JCP&L | |||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| External revenues | $ | 2,073 | $ | 242 | $ | 2,315 | $ | — | $ | 2,315 | ||||||||||||||||||||||
| Internal revenues | 152 | — | 152 | (152) | — | |||||||||||||||||||||||||||
| Total revenues | $ | 2,225 | $ | 242 | $ | 2,467 | $ | (152) | $ | 2,315 | ||||||||||||||||||||||
Other operating expenses(1) | 745 | 61 | 806 | (152) | 654 | |||||||||||||||||||||||||||
Depreciation(1) | 203 | 46 | 249 | — | 249 | |||||||||||||||||||||||||||
| Deferral of regulatory assets, net | (124) | — | (124) | — | (124) | |||||||||||||||||||||||||||
Interest expense - non-affiliates(1) | 75 | 22 | 97 | — | 97 | |||||||||||||||||||||||||||
Interest expense - affiliates(1) | 20 | — | 20 | — | 20 | |||||||||||||||||||||||||||
| Income taxes | 52 | 35 | 87 | — | 87 | |||||||||||||||||||||||||||
Other expense (income) items(2) | 1,100 | (10) | 1,090 | — | 1,090 | |||||||||||||||||||||||||||
| Net Income | 154 | 88 | 242 | — | 242 | |||||||||||||||||||||||||||
| Cash Flows from Investing Activities: | ||||||||||||||||||||||||||||||||
| Capital investments | $ | 360 | $ | 519 | $ | 879 | $ | — | 879 | |||||||||||||||||||||||
(In millions) For the Years Ended | Distribution (3) | Transmission | Total Reportable Segments | Reconciling Adjustments | JCP&L | |||||||||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||||||
| External revenues | $ | 1,823 | $ | 204 | $ | 2,027 | $ | — | $ | 2,027 | ||||||||||||||||||||||
| Internal revenues | 111 | — | 111 | (111) | — | |||||||||||||||||||||||||||
| Total revenues | $ | 1,934 | $ | 204 | $ | 2,138 | $ | (111) | $ | 2,027 | ||||||||||||||||||||||
Other operating expenses(1) | 601 | 65 | 666 | (111) | 555 | |||||||||||||||||||||||||||
Depreciation(1) | 190 | 41 | 231 | — | 231 | |||||||||||||||||||||||||||
| Deferral of regulatory assets, net | (67) | — | (67) | — | (67) | |||||||||||||||||||||||||||
Interest expense - non-affiliates(1) | 86 | 24 | 110 | — | 110 | |||||||||||||||||||||||||||
Interest expense - affiliates(1) | 14 | — | 14 | — | 14 | |||||||||||||||||||||||||||
| Income taxes | 11 | 22 | 33 | — | 33 | |||||||||||||||||||||||||||
Other expense (income) items(2) | 1,036 | (10) | 1,026 | — | 1,026 | |||||||||||||||||||||||||||
| Net Income | 63 | 62 | 125 | — | 125 | |||||||||||||||||||||||||||
| Cash Flows from Investing Activities: | ||||||||||||||||||||||||||||||||
| Capital investments | $ | 232 | $ | 401 | $ | 633 | $ | — | 633 | |||||||||||||||||||||||
| As of December 31, 2025 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 7,941 | $ | 3,168 | $ | 11,109 | $ | — | $ | 11,109 | ||||||||||||||||||||||
| Total goodwill | $ | 1,213 | $ | 598 | $ | 1,811 | $ | — | $ | 1,811 | ||||||||||||||||||||||
| As of December 31, 2024 | ||||||||||||||||||||||||||||||||
Total assets (3) | $ | 7,198 | $ | 2,715 | $ | 9,913 | $ | — | $ | 9,913 | ||||||||||||||||||||||
| Total goodwill | $ | 1,213 | $ | 598 | $ | 1,811 | $ | — | $ | 1,811 | ||||||||||||||||||||||
(1) JCP&L considers this line to be a significant expense.
(2) Consists of Purchased power, General taxes, Miscellaneous income, net, Capitalized financing costs, and Pension and OPEB mark-to-market adjustments.
(3) Previously issued 2024 and 2023 JCP&L amounts have been revised due to the correction of immaterial errors as discussed in Note 1., "Organization and Basis of Presentation," of the Combined Notes to Financial Statements of the Registrants.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 13, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 10, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 16, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.