FIRSTENERGY CORP, 10-Q filed on 7/22/2021
Quarterly Report
v3.21.2
Cover Page
 6 Months Ended
Jun. 30, 2021
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Jun. 30, 2021
Document Transition Report false
Entity File Number 333-21011
Entity Registrant Name FIRSTENERGY CORP
Entity Incorporation, State or Country Code OH
Entity Address, Address Line One 76 South Main Street
Entity Address, City or Town Akron
Entity Address, State or Province OH
Entity Address, Postal Zip Code 44308
City Area Code (800)
Local Phone Number 736-3402
Entity Tax Identification Number 34-1843785
Title of 12(b) Security Common Stock, $0.10 par value
Trading Symbol FE
Security Exchange Name NYSE
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock Shares Outstanding 544,193,637
Amendment Flag false
Entity Central Index Key 0001031296
Document Fiscal Year Focus 2021
Document Fiscal Period Focus Q2
Current Fiscal Year End Date --12-31
v3.21.2
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
REVENUES:        
Total revenues [1] $ 2,622 $ 2,522 $ 5,348 $ 5,231
OPERATING EXPENSES:        
Fuel 112 77 230 175
Purchased power 614 613 1,332 1,307
Other operating expenses 718 730 1,470 1,479
Provision for depreciation 323 321 646 638
Amortization of regulatory assets, net 49 13 141 65
General taxes 264 253 537 520
DPA penalty (Note 9) 230 0 230 0
Gain on sale of Yards Creek 0 0 (109) 0
Total operating expenses 2,310 2,007 4,477 4,184
OPERATING INCOME 312 515 871 1,047
OTHER INCOME (EXPENSE):        
Miscellaneous income, net 108 103 243 203
Pension and OPEB mark-to-market adjustment (Note 5) 0 0 0 (423)
Interest expense (287) (263) (572) (526)
Capitalized financing costs 21 18 34 36
Total other expense (158) (142) (295) (710)
INCOME BEFORE INCOME TAXES 154 373 576 337
INCOME TAXES 96 66 183 6
INCOME FROM CONTINUING OPERATIONS 58 307 393 331
Discontinued operations (Note 3) [2] 0 2 0 52
NET INCOME $ 58 $ 309 $ 393 $ 383
EARNINGS PER SHARE OF COMMON STOCK (Note 4):        
Basic - Continuing Operations (in dollars per share) $ 0.11 $ 0.57 $ 0.72 $ 0.61
Basic - Discontinued Operations (in dollars per share) 0 0 0 0.10
Basic - Net Income Attributable to Common Stockholders (in dollars per share) 0.11 0.57 0.72 0.71
Diluted - Continuing Operations (in dollars per share) 0.11 0.57 0.72 0.61
Diluted - Discontinued Operations (in dollars per share) 0 0 0 0.10
Diluted - Net Income Attributable to Common Stockholders (in dollars per share) $ 0.11 $ 0.57 $ 0.72 $ 0.71
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:        
Basic, in shares 544 542 544 541
Diluted, in shares 545 543 545 543
Distribution Services and Retail Generation        
REVENUES:        
Total revenues $ 2,096 $ 2,030 $ 4,332 $ 4,154
Transmission        
REVENUES:        
Total revenues 411 380 812 777
Other        
REVENUES:        
Total revenues $ 115 $ 112 $ 204 $ 300
[1] Includes excise and gross receipts tax collections of $85 million and $84 million during the three months ended June 30, 2021 and 2020, respectively, and $180 million and $176 million during the six months ended June 30, 2021 and 2020, respectively.
[2] Net of income tax expense (benefits) of $1 million and $(35) million for the three and six months ended June 30, 2020, respectively.
v3.21.2
Consolidated Statements of Income (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Statement [Abstract]        
Excise taxes collected $ 85 $ 84 $ 180 $ 176
Income tax expense   $ 1   $ (35)
v3.21.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Statement of Comprehensive Income [Abstract]        
NET INCOME $ 58 $ 309 $ 393 $ 383
OTHER COMPREHENSIVE LOSS:        
Pension and OPEB prior service costs (4) (4) (7) (27)
Amortized losses on derivative hedges 1 1 1 1
Other comprehensive loss (3) (3) (6) (26)
Income tax benefits on other comprehensive loss (1) (1) (2) (6)
Other comprehensive loss, net of tax (2) (2) (4) (20)
COMPREHENSIVE INCOME $ 56 $ 307 $ 389 $ 363
v3.21.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
CURRENT ASSETS:    
Cash and cash equivalents $ 1,254 $ 1,734
Restricted cash 58 67
Receivables-    
Other, net of allowance for uncollectible accounts of $10 in 2021 and $26 in 2020 232 236
Materials and supplies, at average cost 274 317
Prepaid taxes and other 292 157
Total current assets 3,196 3,714
PROPERTY, PLANT AND EQUIPMENT:    
In service 44,683 43,654
Less — Accumulated provision for depreciation 12,328 11,938
Property, plant and equipment in service net of accumulated provision for depreciation 32,355 31,716
Construction work in progress 1,662 1,578
Total net property, plant and equipment 34,017 33,294
PROPERTY, PLANT AND EQUIPMENT, NET - HELD FOR SALE (NOTE 8) 0 45
INVESTMENTS AND OTHER NONCURRENT ASSETS:    
Goodwill 5,618 5,618
Investments (Note 7) 622 605
Regulatory assets 97 82
Other 813 1,106
Total deferred charges and other assets 7,150 7,411
Total assets 44,363 44,464
CURRENT LIABILITIES:    
Currently payable long-term debt 733 146
Short-term borrowings 500 2,200
Accounts payable 1,184 827
Accrued interest 293 282
Accrued taxes 528 640
Accrued compensation and benefits 296 349
Other 337 560
Total current liabilities 3,871 5,004
Stockholders’ equity-    
Common stock 54 54
Other paid-in capital 9,880 10,076
Accumulated other comprehensive loss (9) (5)
Accumulated deficit (2,495) (2,888)
Total stockholders’ equity 7,430 7,237
Long-term debt and other long-term obligations 23,025 22,131
Total capitalization 30,455 29,368
NONCURRENT LIABILITIES:    
Accumulated deferred income taxes 3,316 3,095
Retirement benefits 3,201 3,345
Regulatory liabilities 2,023 1,826
Other 1,497 1,826
Total noncurrent liabilities 10,037 10,092
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9)
Total liabilities and capitalization 44,363 44,464
Customer    
Receivables-    
Customers 1,243 1,367
Less — Allowance for uncollectible customer receivables 157 164
Customers $ 1,086 $ 1,203
v3.21.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Stockholders’ equity-    
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares) 700,000,000 700,000,000
Common stock, shares outstanding (in shares) 544,193,637 543,117,533
Other    
Receivables-    
Allowance for uncollectible accounts $ 10 $ 26
v3.21.2
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Millions
Total
Common Stock
OPIC
AOCI
Accumulated Deficit
Beginning balance, (in shares) at Dec. 31, 2019   541,000,000      
Beginning balance at Dec. 31, 2019 $ 6,975 $ 54 $ 10,868 $ 20 $ (3,967)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 74       74
Other comprehensive loss, net of tax (18)     (18)  
Stock Investment Plan and share-based benefit plans (in shares)   1,000,000      
Stock Investment Plan and share-based benefit plans (6)   (6)    
Cash dividends declared on common stock (211)   (211)    
Ending balance (in shares) at Mar. 31, 2020   542,000,000      
Ending balance at Mar. 31, 2020 6,814 $ 54 10,651 2 (3,893)
Beginning balance, (in shares) at Dec. 31, 2019   541,000,000      
Beginning balance at Dec. 31, 2019 6,975 $ 54 10,868 20 (3,967)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 383        
Other comprehensive loss, net of tax (20)        
Ending balance (in shares) at Jun. 30, 2020   542,000,000      
Ending balance at Jun. 30, 2020 7,143 $ 54 10,673 0 (3,584)
Beginning balance, (in shares) at Mar. 31, 2020   542,000,000      
Beginning balance at Mar. 31, 2020 6,814 $ 54 10,651 2 (3,893)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 309       309
Other comprehensive loss, net of tax (2)     (2)  
Stock Investment Plan and share-based benefit plans (22)   (22)    
Ending balance (in shares) at Jun. 30, 2020   542,000,000      
Ending balance at Jun. 30, 2020 $ 7,143 $ 54 10,673 0 (3,584)
Beginning balance, (in shares) at Dec. 31, 2020 543,117,533 543,000,000      
Beginning balance at Dec. 31, 2020 $ 7,237 $ 54 10,076 (5) (2,888)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 335       335
Other comprehensive loss, net of tax (2)     (2)  
Share-based benefit plans (in shares)   1,000,000      
Share-based benefit plans 2   2    
Cash dividends declared on common stock (212)   (212)    
Ending balance (in shares) at Mar. 31, 2021   544,000,000      
Ending balance at Mar. 31, 2021 $ 7,360 $ 54 9,866 (7) (2,553)
Beginning balance, (in shares) at Dec. 31, 2020 543,117,533 543,000,000      
Beginning balance at Dec. 31, 2020 $ 7,237 $ 54 10,076 (5) (2,888)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 393        
Other comprehensive loss, net of tax $ (4)        
Ending balance (in shares) at Jun. 30, 2021 544,193,637 544,000,000      
Ending balance at Jun. 30, 2021 $ 7,430 $ 54 9,880 (9) (2,495)
Beginning balance, (in shares) at Mar. 31, 2021   544,000,000      
Beginning balance at Mar. 31, 2021 7,360 $ 54 9,866 (7) (2,553)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 58       58
Other comprehensive loss, net of tax (2)     (2)  
Share-based benefit plans $ 14   14    
Ending balance (in shares) at Jun. 30, 2021 544,193,637 544,000,000      
Ending balance at Jun. 30, 2021 $ 7,430 $ 54 $ 9,880 $ (9) $ (2,495)
v3.21.2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]    
Dividends declared (in dollars per share) $ 0.39 $ 0.39
v3.21.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 393 $ 383
Adjustments to reconcile net income to net cash from operating activities-    
Depreciation and amortization 831 602
Deferred income taxes and investment tax credits, net 176 3
Retirement benefits, net of payments (209) (144)
Pension and OPEB mark-to-market adjustment 0 423
Settlement agreement and tax sharing payments to the FES Debtors 0 (978)
Transmission revenue collections, net 81 10
Gain on sale of Yards Creek (109) 0
Gain on disposal, net of tax (Note 3) 0 (52)
Changes in current assets and liabilities-    
Receivables 121 75
Materials and supplies 43 (18)
Prepaid taxes and other current assets (114) (125)
Accounts payable 127 (83)
DPA penalty 230 0
Accrued taxes (112) 83
Accrued interest 11 20
Accrued compensation and benefits (98) (28)
Other current liabilities (27) (6)
Other 3 (15)
Net cash provided from operating activities 1,347 150
New financing-    
Long-term debt 1,500 3,175
Redemptions and repayments-    
Long-term debt (33) (1,082)
Short-term borrowings, net (1,700) (885)
Common stock dividend payments (424) (422)
Other (5) (44)
Net cash provided from (used for) financing activities (662) 742
CASH FLOWS FROM INVESTING ACTIVITIES:    
Property additions (1,226) (1,292)
Proceeds from sale of Yards Creek 155 0
Sales of investment securities held in trusts 13 39
Purchases of investment securities held in trusts (19) (53)
Asset removal costs (111) (102)
Other 14 2
Net cash used for investing activities (1,174) (1,406)
Net change in cash, cash equivalents, and restricted cash (489) (514)
Cash, cash equivalents, and restricted cash at beginning of period 1,801 679
Cash, cash equivalents, and restricted cash at end of period $ 1,312 $ 165
v3.21.2
Organization and Basis of Presentation
 6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND BASIS OF PRESENTATION ORGANIZATION AND BASIS OF PRESENTATION
Unless otherwise indicated, defined terms and abbreviations used herein have the meanings set forth in the accompanying Glossary of Terms.

FE was incorporated under Ohio law in 1996. FE’s principal business is the holding, directly or indirectly, of all of the outstanding equity of its principal subsidiaries: OE, CEI, TE, Penn (a wholly owned subsidiary of OE), JCP&L, ME, PN, FESC, MP, AGC (a wholly owned subsidiary of MP), PE, WP, and FET and its principal subsidiaries (ATSI, MAIT and TrAIL). In addition, FE holds all of the outstanding equity of other direct subsidiaries including: AE Supply, FirstEnergy Properties, Inc., FEV, FirstEnergy License Holding Company, GPUN, Allegheny Ventures, Inc., and Suvon, LLC doing business as both FirstEnergy Home and FirstEnergy Advisors.

FE and its subsidiaries are principally involved in the transmission, distribution and generation of electricity. FirstEnergy’s ten utility operating companies comprise one of the nation’s largest investor-owned electric systems, based on serving over six million customers in the Midwest and Mid-Atlantic regions. FirstEnergy’s transmission operations include approximately 24,000 miles of lines and two regional transmission operation centers. AGC and MP control 3,580 MWs of total capacity.
PN, as lessee of the property of its subsidiary, the Waverly Electric Light & Power Company, serves approximately 4,000 customers in the Waverly, New York vicinity. On February 10, 2021, PN entered into an agreement to transfer its customers and the related assets in Waverly, New York to Tri-County Rural Electric Cooperative; the completion of such transfer is subject to several closing conditions including regulatory approval.
These interim financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements and notes prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim financial statements should be read in conjunction with the financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2020.

FE and its subsidiaries follow GAAP and comply with the related regulations, orders, policies and practices prescribed by the SEC, FERC, and, as applicable, the PUCO, the PPUC, the MDPSC, the NYPSC, the WVPSC, the VSCC and the NJBPU. The accompanying interim financial statements are unaudited, but reflect all adjustments, consisting of normal recurring adjustments, that, in the opinion of management, are necessary for a fair statement of the financial statements. The preparation of financial statements in conformity with GAAP requires management to make periodic estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not necessarily indicative of results of operations for any future period. FE and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

FE and its subsidiaries consolidate all majority-owned subsidiaries over which they exercise control and, when applicable, entities for which they have a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation as appropriate and permitted pursuant to GAAP. FE and its subsidiaries consolidate a VIE when it is determined that it is the primary beneficiary. Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but do not have a controlling financial interest, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and the percentage of FE’s ownership share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income.

Certain prior year amounts have been reclassified to conform to the current year presentation.

Capitalized Financing Costs

For each of the three months ended June 30, 2021 and 2020, capitalized financing costs on FirstEnergy’s Consolidated Statements of Income include $14 million and $12 million, respectively, of allowance for equity funds used during construction and $7 million and $6 million, respectively, of capitalized interest. For each of the six months ended June 30, 2021 and 2020, capitalized financing costs on FirstEnergy’s Consolidated Statements of Income include $21 million and $23 million, respectively, of allowance for equity funds used during construction and $13 million and $13 million, respectively, of capitalized interest.

COVID-19

FirstEnergy is continuously evaluating the global COVID-19 pandemic and taking steps to mitigate known risks. FirstEnergy is actively monitoring the continued impact COVID-19 is having on its customers’ receivable balances, which include increasing arrears balances since the pandemic has begun. FirstEnergy has incurred, and it is expected to incur for the foreseeable future, COVID-19 pandemic related expenses. COVID-19 related expenses consist of additional costs that FirstEnergy is incurring to protect its employees, contractors and customers, and to support social distancing requirements. These costs include, but are not limited to, new or added benefits provided to employees, the purchase of additional personal protection equipment and
disinfecting supplies, additional facility cleaning services, initiated programs and communications to customers on utility response, and increased technology expenses to support remote working, where possible. The full impact on FirstEnergy’s business from the COVID-19 pandemic, including the governmental and regulatory responses, is unknown at this time and difficult to predict. FirstEnergy provides a critical and essential service to its customers and the health and safety of its employees, contractors and customers is its first priority. FirstEnergy is continuously monitoring its supply chain and is working closely with essential vendors to understand the continued impact the COVID-19 pandemic is having on its business; however, FirstEnergy does not currently expect disruptions in its ability to deliver service to customers or any material impact on its capital spending plan.

FirstEnergy continues to effectively manage operations during the pandemic in order to provide critical service to customers and believes it is well positioned to manage through the economic slowdown. FirstEnergy Distribution and Transmission revenues benefit from geographic and economic diversity across a five-state service territory, which also allows for flexibility with capital investments and measures to maintain sufficient liquidity over the next twelve months. However, the situation remains fluid and future impacts to FirstEnergy that are presently unknown or unanticipated may occur. Furthermore, the likelihood of an impact to FirstEnergy, and the severity of any impact that does occur, could increase the longer the global pandemic persists.

Customer Receivables

Receivables from customers include distribution services and retail generation sales to residential, commercial and industrial customers of the Utilities. The allowance for uncollectible customer receivables is based on historical loss information comprised of a rolling 36-month average net write-off percentage of revenues, in conjunction with a qualitative assessment of elements that impact the collectability of receivables to determine if allowances for uncollectible accounts should be further adjusted in accordance with the accounting guidance for credit losses.

FirstEnergy reviews its allowance for uncollectible customer receivables utilizing a quantitative and qualitative assessment. Management contemplates available current information such as changes in economic factors, regulatory matters, industry trends, customer credit factors, amount of receivable balances that are past-due, payment options and programs available to customers, and the methods that the Utilities are able to utilize to ensure payment. This analysis includes consideration of the outbreak of COVID-19 and the impact on customer receivable balances outstanding since the pandemic began.
Beginning March 13, 2020, FirstEnergy temporarily suspended customer disconnections for nonpayment and ceased collection activities as a result of the ongoing pandemic and in accordance with state regulatory requirements. The temporary suspension of disconnections for nonpayment and ceasing of collection activities extended into the fourth quarter of 2020 but resumed for most customers before the end of 2020. Customers are subject to each state's applicable regulations on winter moratoriums for residential customers, which begin as early as November 1, 2020, and were in effect until April 15, 2021. During 2021, FirstEnergy reviewed its allowance for uncollectible customer receivables based on this qualitative assessment and has experienced a reduction in customer accounts that are past due by greater than 30 days since the end of 2020. Additionally, customer accounts in arrears continue to decrease in 2021; however customer accounts being moved to the final stage of the collection process have begun to increase. Furthermore, other factors were also considered in the quarterly analysis, such as certain state funding being made available to assist with past due utility bills and vaccine distribution. As a result of this analysis, FirstEnergy did not recognize any incremental uncollectible expense in the six months ended June 30, 2021.

Receivables from customers also include PJM receivables resulting from transmission and wholesale sales. FirstEnergy’s credit risk on PJM receivables is reduced due to the nature of PJM’s settlement process whereby members of PJM legally agree to share the cost of defaults and as a result there is no allowance for doubtful accounts.

Activity in the allowance for uncollectible accounts on customer receivables for the six months ended June 30, 2021 and for the year ended December 31, 2020 are as follows:
(In millions)
Balance, January 1, 2020$46 
Charged to income (1)
174 
Charged to other accounts (2)
46 
Write-offs(102)
Balance, December 31, 2020$164 
Charged to income11 
Charged to other accounts (2)
23 
Write-offs(41)
Balance, June 30, 2021$157 
(1) $103 million of which was deferred for future recovery in the twelve months ended December 31, 2020.
(2) Represents recoveries and reinstatements of accounts written off for uncollectible accounts.
New Accounting Pronouncements

Recently Adopted Pronouncements

ASU 2019-12, "Simplifying the Accounting for Income Taxes" (Issued in December 2019): ASU 2019-12 enhances and simplifies various aspects of the income tax accounting guidance, including the elimination of certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. FirstEnergy adopted the guidance as of January 1, 2021, with no material impact to the financial statements.

Recently Issued Pronouncements - FirstEnergy has assessed new authoritative accounting guidance issued by the FASB that has not yet been adopted and none are currently expected to have a material impact to the financial statements.
v3.21.2
Revenue
 6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
FirstEnergy accounts for revenues from contracts with customers under ASC 606, “Revenue from Contracts with Customers.” Revenue from leases, financial instruments, other contractual rights or obligations and other revenues that are not from contracts with customers are outside the scope of the standard and accounted for under other existing GAAP.

FirstEnergy has elected to exclude sales taxes and other similar taxes collected on behalf of third parties from revenue as prescribed in the standard. As a result, tax collections and remittances are excluded from recognition in the income statement and instead recorded through the balance sheet. Excise and gross receipts taxes that are assessed on FirstEnergy are not subject to the election and are included in revenue. FirstEnergy has elected the optional invoice practical expedient for most of its revenues and utilizes the optional short-term contract exemption for transmission revenues due to the annual establishment of revenue requirements, which eliminates the need to provide certain revenue disclosures regarding unsatisfied performance obligations.

FirstEnergy’s revenues are primarily derived from electric service provided by the Utilities and Transmission Companies.
The following tables represent a disaggregation of revenue from contracts with customers for the three and six months ended June 30, 2021 and 2020, by type of service from each reportable segment:
For the Three Months Ended June 30, 2021
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $1,304 $— $(26)$1,278 
Retail generation831 — (13)818 
Wholesale sales74 — 3 77 
Transmission — 411 — 411 
Other26 — — 26 
Total revenues from contracts with customers$2,235 $411 $(36)$2,610 
ARP— — — — 
Other non-customer revenue 23 8 (19)12 
Total revenues$2,258 $419 $(55)$2,622 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.

For the Three Months Ended June 30, 2020
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $1,241 $— $(22)$1,219 
Retail generation826 — (15)811 
Wholesale sales50 — 2 52 
Transmission — 380 — 380 
Other31 — — 31 
Total revenues from contracts with customers$2,148 $380 $(35)$2,493 
ARP (2)
15 — — 15 
Other non-customer revenue 25 4 (15)14 
Total revenues$2,188 $384 $(50)$2,522 

(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
(2) ARP revenue for the three months ended June 30, 2020, is primarily related to the reconciliation of Ohio decoupling rates that became effective on February 1, 2020. See Note 8, “Regulatory Matters,” for further discussion on Ohio decoupling rates.

Other non-customer revenue includes revenue from late payment charges of $9 million and $6 million for the three months ended June 30, 2021 and 2020, respectively. Other non-customer revenue also includes revenue from derivatives of $2 million and $6 million for the three months ended June 30, 2021 and 2020, respectively.
For the Six Months Ended June 30, 2021
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $2,643 $— $(52)$2,591 
Retail generation1,766 — (25)1,741 
Wholesale sales143 — 7 150 
Transmission— 812 — 812 
Other59 — — 59 
Total revenues from contracts with customers$4,611 $812 $(70)$5,353 
ARP (2)
(27)— — (27)
Other non-customer revenue 44 12 (34)22 
Total revenues$4,628 $824 $(104)$5,348 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
(2) Reflects amount the Ohio Companies will collectively refund to customers that was previously collected under decoupling mechanisms, with interest. See Note 8, “Regulatory Matters,” for further discussion on Ohio decoupling rates.

For the Six Months Ended June 30, 2020
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $2,497 $— $(43)$2,454 
Retail generation1,730 — (30)1,700 
Wholesale sales121 — 3 124 
Transmission— 777 — 777 
Other67 — — 67 
Total revenues from contracts with customers$4,415 $777 $(70)$5,122 
ARP (2)
83 — — 83 
Other non-customer revenue 48 8 (30)26 
Total revenues$4,546 $785 $(100)$5,231 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
(2) ARP revenue for the six months ended June 30, 2020, is primarily related to the reconciliation of Ohio decoupling rates that became effective on February 1, 2020. See Note 8, “Regulatory Matters,” for further discussion on Ohio decoupling rates.

Other non-customer revenue includes revenue from late payment charges of $18 million and $16 million for the six months ended June 30, 2021 and 2020, respectively. Other non-customer revenue also includes revenue from derivatives of $2 million and $6 million for the six months ended June 30, 2021 and 2020, respectively.

Regulated Distribution

The Regulated Distribution segment distributes electricity through FirstEnergy’s ten utility operating companies and also controls 3,580 MWs of regulated electric generation capacity located primarily in West Virginia and Virginia. Each of the Utilities earns revenue from state-regulated rate tariffs under which it provides distribution services to residential, commercial and industrial customers in its service territory. The Utilities are obligated under the regulated construct to deliver power to customers reliably, as it is needed, which creates an implied monthly contract with the end-use customer. See Note 8, “Regulatory Matters,” for additional information on rate recovery mechanisms. Distribution and electric revenues are recognized over time as electricity is distributed and delivered to the customer and the customers consume the electricity immediately as delivery occurs.

Retail generation sales relate to POLR, SOS, SSO and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland, as well as generation sales in West Virginia that are regulated by the WVPSC. Certain of the Utilities have default service obligations to provide power to non-shopping customers who have elected to continue to receive service under regulated retail tariffs. The volume of these sales varies depending on the level of shopping that occurs. Supply plans vary by state and by service territory. Default service for the Ohio Companies, Pennsylvania Companies, JCP&L and PE’s Maryland jurisdiction are provided through a competitive procurement process approved by each state’s respective commission. Retail generation revenues are recognized over time as electricity is delivered and consumed immediately by the customer.
The following table represents a disaggregation of the Regulated Distribution segment revenue from contracts with distribution service and retail generation customers for the three and six months ended June 30, 2021 and 2020, by class:
For the Three Months Ended June 30,For the Six Months Ended June 30,
Revenues by Customer Class 2021202020212020
(In millions)
Residential$1,287 $1,280 $2,744 $2,599 
Commercial562 507 1,103 1,051 
Industrial268 259 526 536 
Other18 21 36 41 
Total Revenues$2,135 $2,067 $4,409 $4,227 

Wholesale sales primarily consist of generation and capacity sales into the PJM market from FirstEnergy’s regulated electric generation capacity and NUGs. Certain of the Utilities may also purchase power in the PJM markets to supply power to their customers. Generally, these power sales from generation and purchases to serve load are netted hourly and reported as either revenues or purchased power on the Consolidated Statements of Income based on whether the entity was a net seller or buyer each hour. Capacity revenues are recognized ratably over the PJM planning year at prices cleared in the annual PJM Reliability Pricing Model Base Residual Auction and Incremental Auctions. Capacity purchases and sales through PJM capacity auctions are reported within revenues on the Consolidated Statements of Income. Certain capacity income (bonuses) and charges (penalties) related to the availability of units that have cleared in the auctions are unknown and not recorded in revenue until, and unless, they occur.

The Utilities’ distribution customers are metered on a cycle basis. An estimate of unbilled revenues is calculated to recognize electric service provided from the last meter reading through the end of the month. This estimate includes many factors, among which are historical customer usage, load profiles, estimated weather impacts, customer shopping activity and prices in effect for each class of customer. In each accounting period, the Utilities accrue the estimated unbilled amount as revenue and reverse the related prior period estimate. Customer payments vary by state but are generally due within 30 days.

ASC 606 excludes industry-specific accounting guidance for recognizing revenue from ARPs as these programs represent contracts between the utility and its regulators, as opposed to customers. Therefore, revenues from these programs are not within the scope of ASC 606 and regulated utilities are permitted to continue to recognize such revenues in accordance with existing practice but are presented separately from revenue arising from contracts with customers. FirstEnergy had ARPs in Ohio primarily for decoupling revenue in 2020, and has reflected refunds of decoupling revenue owed to customers as reductions to ARPs in 2021. Please see Note 8, “Regulatory Matters,” for further discussion on decoupling revenues in Ohio.

Regulated Transmission

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 at the Transmission Companies and JCP&L, as well as stated transmission rates at, MP, PE and WP. MP, PE and WP filed with FERC on October 29, 2020, to convert their existing stated transmission rates to forward-looking formula rates. These transmission rate filings were accepted by FERC on December 31, 2020, effective January 1, 2021, subject to refund, pending further hearing and settlement procedures, and were consolidated with a related formula rate filing submitted by KATCo into a single proceeding. See Note 8, “Regulatory Matters,” for additional information.

Both the forward-looking formula and stated rates recover costs that the regulatory agencies determine are permitted to be recovered and provide a return on transmission capital investment. 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 costs. Revenue requirements under stated rates are calculated annually by multiplying the highest one-hour peak load in each respective transmission zone by the approved, stated rate in that zone. Revenues and cash receipts for the stand-ready obligation of providing transmission service are recognized ratably over time.
The following table represents a disaggregation of revenue from contracts with regulated transmission customers for the three and six months ended June 30, 2021 and 2020, by transmission owner:
For the Three Months Ended June 30,For the Six Months Ended June 30,
Transmission Owner2021202020212020
(In millions)
ATSI$193 $192 $398 $394 
TrAIL57 57 117 121 
MAIT80 58 147 117 
JCP&L46 39 85 77 
MP, PE and WP 35 34 65 68 
Total Revenues$411 $380 $812 $777 
v3.21.2
Discontinued Operations
 6 Months Ended
Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS
    FES and FENOC Chapter 11 Bankruptcy Filing
On March 31, 2018, the FES Debtors announced that, in order to facilitate an orderly financial restructuring, they filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code with the Bankruptcy Court. On February 27, 2020, the FES Debtors effectuated their plan, emerged from bankruptcy and FirstEnergy tendered the bankruptcy court approved settlement payments totaling $853 million and a $125 million tax sharing payment to the FES Debtors.

By eliminating a significant portion of its competitive generation fleet with the deconsolidation of the FES Debtors, FirstEnergy has concluded the FES Debtors meet the criteria for discontinued operations, as this represents a significant event in management’s strategic review to exit commodity-exposed generation and transition to a fully regulated company.

Summarized Results of Discontinued Operations

Summarized results of discontinued operations for the three and six months ended June 30, 2021 and 2020, were as follows:
For the Three Months Ended June 30,For the Six Months Ended June 30,
(In millions)2021202020212020
Revenues$— $— $— $7 
Fuel — — — (6)
Other operating expenses— — — (6)
Other income— — — 5 
Income from discontinued operations, before tax— — — — 
Income tax expense— — — — 
Income from discontinued operations, net of tax— — — — 
Settlement consideration — 3 — (1)
Accelerated net pension and OPEB prior service credits— — — 18 
Gain on disposal of FES and FENOC, before tax— 3 — 17 
Income taxes (benefits), including worthless stock deduction — 1 (35)
Gain on disposal of FES and FENOC, net of tax— 2 — 52 
Income from discontinued operations$— $2 $— $52 

FirstEnergy’s Consolidated Statement of Cash Flows combines cash flows from discontinued operations with cash flows from continuing operations within each cash flow category. For the six months ended June 30, 2020, cash flows from operating activities includes income from discontinued operations of $52 million.

Income Taxes

For U.S. federal income taxes, the FES Debtors were included in FirstEnergy’s consolidated tax return until emergence from bankruptcy on February 27, 2020. As a result of the FES Debtors’ deconsolidation, FirstEnergy recognized a worthless stock deduction for the remaining tax basis in the FES Debtors of approximately $4.9 billion, net of unrecognized tax benefits of
$316 million. Tax-effected, the worthless stock deduction is approximately $1.1 billion, net of valuation allowances recorded against the state tax benefit ($19 million) and the aforementioned unrecognized tax benefits ($68 million).

Additionally, the Tax Act amended Section 163(j) of the Internal Revenue Code of 1986, as amended, limiting interest expense deductions for corporations but with exemption for certain regulated utilities. Based on interpretation of subsequently issued proposed regulations, and based on the FES Debtors’ emergence from bankruptcy in 2020, FirstEnergy expects all interest expense for 2020 and future years to be fully deductible. See Note 6, “Income Taxes” for further information.
v3.21.2
Earnings Per Share Of Common Stock
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
EARNINGS PER SHARE OF COMMON STOCK EARNINGS PER SHARE OF COMMON STOCK
Basic EPS available to common stockholders is computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted EPS of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised.

Diluted EPS reflects the dilutive effect of potential common shares from share-based awards The dilutive effect of outstanding share-based awards was computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of the award would be used to purchase common stock at the average market price for the period.

The following table reconciles basic and diluted EPS of common stock:
For the Three Months Ended June 30,For the Six Months Ended June 30,
Reconciliation of Basic and Diluted EPS of Common Stock2021202020212020
(In millions, except per share amounts)
EPS of Common Stock
Income from continuing operations$58 $307 $393 $331 
Discontinued operations, net of tax— 2 — 52 
Income available to common stockholders$58 $309 $393 $383 
Share count information:
Weighted average number of basic shares outstanding544 542 544 541 
Assumed exercise of dilutive stock options and awards1 1 1 2 
Weighted average number of diluted shares outstanding545 543 545 543 
Income available to common stockholders, per common share:
Income from continuing operations, basic$0.11 $0.57 $0.72 $0.61 
Discontinued operations, basic — — — 0.10 
Income available to common stockholders, basic $0.11 $0.57 $0.72 $0.71 
Income from continuing operations, diluted$0.11 $0.57 $0.72 $0.61 
Discontinued operations, diluted— — — 0.10 
Income available to common stockholders, diluted$0.11 $0.57 $0.72 $0.71 

For the three and six months ended June 30, 2021 and June 30, 2020, no shares from stock options and awards were excluded from the calculation of diluted shares outstanding.
v3.21.2
Pension and Other Post-Employment Benefits
 6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS PENSION AND OTHER POST-EMPLOYMENT BENEFITS
The components of the consolidated net periodic costs (credits) for pension and OPEB were as follows:
Components of Net Periodic Benefit Costs (Credits)PensionOPEB
For the Three Months Ended June 30,2021202020212020
 (In millions)
Service costs $48 $48 $1 $1 
Interest costs 57 70 2 4 
Expected return on plan assets(163)(155)(7)(8)
Amortization of prior service costs (credits)(1)
1 1 (5)(5)
Net periodic credits, including amounts capitalized$(57)$(36)$(9)$(8)
Net periodic credits, recognized in earnings$(85)$(62)$(10)$(8)
(1) The income tax benefits associated with pension and OPEB prior service costs amortized out of AOCI were $1 million both for the three months ended June 30, 2021 and 2020, respectively.

Components of Net Periodic Benefit Costs (Credits)PensionOPEB
For the Six Months Ended June 30,2021202020212020
 (In millions)
Service costs $97 $100 $2 $2 
Interest costs 113 145 5 8 
Expected return on plan assets(326)(308)(17)(16)
Amortization of prior service costs (credits)(1) (2)
2 11 (9)(38)
One-time termination benefit (3)
— 8 — — 
Pension and OPEB mark-to-market adjustment — 386 — 37 
Net periodic costs (credits), including amounts capitalized$(114)$342 $(19)$(7)
Net periodic costs (credits), recognized in earnings$(163)$296 $(20)$(7)
(1) 2020 includes the acceleration of $18 million in net credits as a result of the FES Debtors’ emergence during the first quarter of 2020 and is a component of discontinued operations in FirstEnergy’s Consolidated Statements of Income.
(2) The income tax benefits associated with pension and OPEB prior service costs amortized out of AOCI were $2 million and $6 million for the six months ended June 30, 2021 and 2020, respectively.
(3) Costs represent additional benefits provided to FES and FENOC employees under the approved settlement agreement and are a component of discontinued operations in FirstEnergy’s Consolidated Statements of Income.

FirstEnergy recognizes a pension and OPEB mark-to-market adjustment for the change in fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for remeasurement. Under the approved bankruptcy settlement agreement discussed above, upon emergence, FES and FENOC employees ceased earning years of service under the FirstEnergy pension and OPEB plans. The emergence on February 27, 2020, triggered a remeasurement of the affected pension and OPEB plans and as a result, FirstEnergy recognized a non-cash, pre-tax pension and OPEB mark-to-market adjustment of approximately $423 million in the first quarter of 2020.
On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021, which among other things, extended shortfall amortization periods and modification of the interest rate stabilization rules for single-employer plans thereby impacting funding requirements. As a result, under current assumptions, including an expected annual return on assets of 7.50%, FirstEnergy does not currently expect to have a required contribution to the pension plan. However, FirstEnergy may elect to contribute to the pension plan voluntarily.
Service costs, net of capitalization, are reported within Other operating expenses on FirstEnergy’s Consolidated Statements of Income. Non-service costs, other than the pension and OPEB mark-to-market adjustment, which is separately shown, are reported within Miscellaneous income, net, within Other Income (Expense) on FirstEnergy’s Consolidated Statements of Income.
v3.21.2
Income Taxes
 6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
FirstEnergy’s interim effective tax rates reflect the estimated annual effective tax rates for 2021 and 2020. These tax rates are affected by estimated annual permanent items, such as AFUDC equity and other flow-through items, as well as discrete items that may occur in any given period but are not consistent from period to period.

FirstEnergy’s effective tax rate on continuing operations for the three months ended June 30, 2021 and 2020, was 62.3% and 17.7%, respectively. The change in effective tax rate was primarily due to the non-deductibility of the DPA monetary penalty and
tax expense of $9 million recorded in the second quarter of 2021 related to the remeasurement of West Virginia deferred income taxes resulting from a state tax law change (as discussed further below), as well as the absence of a $10 million benefit from accelerated amortization of certain investment tax credits recorded in the second quarter of 2020.

FirstEnergy’s effective tax rate on continuing operations for the six months ended June 30, 2021 and 2020, was 31.8% and 1.8%, respectively. The change in the effective tax rate was primarily due to the items in the second quarter discussed above, as well as the absence of a $52 million reduction in valuation allowances in the first quarter of 2020 from the recognition of deferred gains on prior intercompany generation asset transfers triggered by the FES Debtors’ emergence from bankruptcy and deconsolidation from FirstEnergy’s consolidated federal income tax group. See Note 3, “Discontinued Operations,” for other tax matters relating to the FES Bankruptcy that were recognized in discontinued operations in 2020.

On April 9, 2021, West Virginia enacted legislation changing the state’s corporate income tax apportionment rules, including adopting a single sales factor formula and market-based sourcing for sales of services and intangibles, effective for taxable years beginning on or after January 1, 2022. Enactment of this law triggered a remeasurement of state deferred income taxes for entities included in FirstEnergy’s West Virginia combined unitary return, resulting in a net impact of approximately $9 million in additional tax expense in the second quarter of 2021.

During the three months ended June 30, 2021, FirstEnergy recorded a $7 million decrease to the reserve for uncertain tax positions due to the remeasurement of certain positions for the change in West Virginia deferred taxes, which had no impact on earnings because the positions are recorded against state net operating losses with full valuation allowances. During the six months ended June 30, 2021, FirstEnergy recorded a net $4 million increase in its reserve for uncertain tax positions for benefits related to certain federal tax credits, which were partially offset by the remeasurement for West Virginia deferred taxes discussed further above. As of June 30, 2021, it is reasonably possible that within the next twelve months FirstEnergy could record a net decrease of approximately $55 million to its reserve for uncertain tax positions due to the expiration of the statute of limitations or resolution with taxing authorities, of which approximately $53 million would impact FirstEnergy’s effective tax rate.

During January 2021, the IRS issued additional regulations on interest expense deductibility under Section 163(j) of the Internal Revenue Code. However, they are not expected to have a significant tax impact to FirstEnergy.

On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021. While the Act is primarily an economic stimulus package, it also, among other changes, expanded the scope of Section 162(m) of the Internal Revenue Code that limits deductions on certain executive officer compensation. FirstEnergy does not currently expect these changes to have a material impact.
v3.21.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
RECURRING FAIR VALUE MEASUREMENTS

Authoritative accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. The three levels of the fair value hierarchy and a description of the valuation techniques are as follows:
Level 1-Quoted prices for identical instruments in active market.
Level 2-Quoted prices for similar instruments in active market.
-Quoted prices for identical or similar instruments in markets that are not active.
-Model-derived valuations for which all significant inputs are observable market data.
Models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures.
Level 3-Valuation inputs are unobservable and significant to the fair value measurement.
FirstEnergy produces a long-term power and capacity price forecast annually with periodic updates as market conditions change. When underlying prices are not observable, prices from the long-term price forecast are used to measure fair value.

FTRs are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly day-ahead congestion price differences across transmission paths. FTRs are acquired by FirstEnergy in the annual, monthly and long-term PJM auctions and are initially recorded using the auction clearing price less cost. After initial recognition, FTRs’ carrying values are periodically adjusted to fair value using a mark-to-model methodology, which approximates market. The primary inputs into the model, which are generally less observable than objective sources, are the most recent PJM auction clearing prices and the FTRs’ remaining hours. The model calculates the fair value by multiplying the most recent auction clearing price by the remaining
FTR hours less the prorated FTR cost. Significant increases or decreases in inputs in isolation may have resulted in a higher or lower fair value measurement.

NUG contracts represent PPAs with third-party non-utility generators that are transacted to satisfy certain obligations under PURPA. NUG contract carrying values are recorded at fair value and adjusted periodically using a mark-to-model methodology, which approximates market. The primary unobservable inputs into the model are regional power prices and generation MWH. Pricing for the NUG contracts is a combination of market prices for the current year and next two years based on observable data and internal models using historical trends and market data for the remaining years under contract. The internal models use forecasted energy purchase prices as an input when prices are not defined by the contract. Forecasted market prices are based on Intercontinental Exchange, Inc. quotes and management assumptions. Generation MWH reflects data provided by contractual arrangements and historical trends. The model calculates the fair value by multiplying the prices by the generation MWH. Significant increases or decreases in inputs in isolation may have resulted in a higher or lower fair value measurement.

FirstEnergy primarily applies the market approach for recurring fair value measurements using the best information available. Accordingly, FirstEnergy maximizes the use of observable inputs and minimizes the use of unobservable inputs. There were no changes in valuation methodologies used as of June 30, 2021, from those used as of December 31, 2020. The determination of the fair value measures takes into consideration various factors, including but not limited to, nonperformance risk, counterparty credit risk and the impact of credit enhancements (such as cash deposits, LOCs and priority interests). The impact of these forms of risk was not significant to the fair value measurements.

The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy:
June 30, 2021December 31, 2020
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets(In millions)
Derivative assets FTRs(1)
$— $— $5 $5 $— $— $3 $3 
Equity securities2 — — 2 2 — — 2 
U.S. state debt securities— 269 — 269 — 276 — 276 
Cash, cash equivalents and restricted cash(2)
1,312 — — 1,312 1,801 — — 1,801 
Other(3)
— 45 — 45 — 41 — 41 
Total assets$1,314 $314 $5 $1,633 $1,803 $317 $3 $2,123 
Liabilities
Derivative liabilities FTRs(1)
$— $— $(2)$(2)$— $— $— $— 
Total liabilities$— $— $(2)$(2)$— $— $— $— 
Net assets (liabilities)(4)
$1,314 $314 $3 $1,631 $1,803 $317 $3 $2,123 
(1)Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.
(2)Restricted cash primarily relates to cash collected from JCP&L, MP, PE and the Ohio Companies’ customers that is specifically used to service debt of their respective funding companies.
(3)Primarily consists of short-term investments.
(4)Excludes $1 million as of December 31, 2020, of net receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.

Level 3 Quantitative Information

The following table provides quantitative information for FTRs contracts that are classified as Level 3 in the fair value hierarchy for the period ended June 30, 2021:
Fair Value, Net (In millions)Valuation
Technique		Significant InputRangeWeighted AverageUnits
FTRs$3 ModelRTO auction clearing prices$(0.10)to$1.90 $0.90Dollars/MWH

INVESTMENTS

All temporary cash investments purchased with an initial maturity of three months or less are reported as cash equivalents on the Consolidated Balance Sheets at cost, which approximates their fair market value. Investments other than cash and cash equivalents include equity securities, AFS debt securities and other investments. FirstEnergy has no debt securities held for trading purposes.
Generally, unrealized gains and losses on equity securities are recognized in income whereas unrealized gains and losses on AFS debt securities are recognized in AOCI. However, the spent nuclear fuel disposal trusts and NDTs of JCP&L, ME and PN are subject to regulatory accounting with all gains and losses on equity and AFS debt securities offset against regulatory assets. On October 15, 2019, JCP&L, ME, PN and GPUN executed an asset purchase and sale agreement with TMI-2 Solutions, LLC, a subsidiary of EnergySolutions, LLC, concerning the transfer and dismantlement of TMI-2. With the receipt of all required regulatory approvals, the transaction was consummated, including the transfer of external trusts for the decommissioning and environmental remediation of TMI-2, on December 18, 2020. Please see Note 9, "Commitments, Guarantees and Contingencies," for further information.

Spent Nuclear Fuel Disposal Trusts

JCP&L holds debt securities within the spent nuclear fuel disposal trust, which are classified as AFS securities, recognized at fair market value. The trust is intended for funding spent nuclear fuel disposal fees to the DOE associated with previously owned nuclear plants.

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, 2021, and December 31, 2020:
June 30, 2021(1)
December 31, 2020(2)
Cost BasisUnrealized GainsUnrealized LossesFair ValueCost BasisUnrealized GainsUnrealized LossesFair Value
(In millions)
Debt securities$272 $4 $(7)$269 $275 $7 $(6)$276 
(1) Excludes short-term cash investments of $15 million.
    (2) Excludes short-term cash investments of $9 million.

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, 2021 and 2020, were as follows:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2021
2020(1)
2021
2020(1)
(In millions)
Sale proceeds$8 $26 $13 $39 
Realized gains— — — 4 
Realized losses(1)(2)(1)(7)
Interest and dividend income2 9 5 14 
(1) Includes amounts associated with NDTs that were previously held by JCP&L, ME, and PN. See above for additional information.

Other Investments

Other investments include employee benefit trusts, which are primarily invested in corporate-owned life insurance policies and equity method investments. Other investments were $338 million and $322 million as of June 30, 2021, and December 31, 2020, respectively, and are excluded from the amounts reported above.

LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS

All borrowings with initial maturities of less than one year are defined as short-term financial instruments under GAAP and are reported as Short-term borrowings on the Consolidated Balance Sheets at cost. Since these borrowings are short-term in nature, FirstEnergy believes that their costs approximate their fair market value. 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, 2021 and December 31, 2020:
June 30, 2021December 31, 2020
(In millions)
Carrying value (1)
$23,844 $22,377 
Fair value$26,802 $25,465 


The fair values of long-term debt and other long-term obligations reflect the present value of the cash outflows relating to those securities based on the current call price, the yield to maturity or the yield to call, as deemed appropriate at the end of each
respective period. The yields assumed were based on securities with similar characteristics offered by corporations with credit ratings similar to those of FirstEnergy. FirstEnergy classified short-term borrowings, long-term debt and other long-term obligations as Level 2 in the fair value hierarchy as of June 30, 2021, and December 31, 2020.During the six months ended June 30, 2021, the following long-term debt was issued:
v3.21.2
Regulatory Matters
 6 Months Ended
Jun. 30, 2021
Regulated Operations [Abstract]  
REGULATORY MATTERS REGULATORY MATTERS
STATE REGULATION

Each of the Utilities' retail rates, conditions of service, issuance of securities and other matters are subject to regulation in the states in which it operates - in Maryland by the MDPSC, in New Jersey by the NJBPU, in Ohio by the PUCO, in Pennsylvania by the PPUC, in West Virginia by the WVPSC and in New York by the NYPSC. The transmission operations of PE in Virginia, ATSI in Ohio, and the Transmission Companies in Pennsylvania are subject to certain regulations of the VSCC, PUCO and PPUC, respectively. In addition, under Ohio law, municipalities may regulate rates of a public utility, subject to appeal to the PUCO if not acceptable to the utility. Further, if any of the FirstEnergy affiliates were to engage in the construction of significant new transmission facilities, depending on the state, they may be required to obtain state regulatory authorization to site, construct and operate the new transmission facility.

MARYLAND

PE operates under MDPSC approved base rates that were effective as of March 23, 2019. PE also provides SOS pursuant to a combination of settlement agreements, MDPSC orders and regulations, and statutory provisions. SOS supply is competitively procured in the form of rolling contracts of varying lengths through periodic auctions that are overseen by the MDPSC and a third-party monitor. Although settlements with respect to SOS supply for PE customers have expired, service continues in the same manner until changed by order of the MDPSC. PE recovers its costs plus a return for providing SOS.

The EmPOWER Maryland program requires each electric utility to file a plan to reduce electric consumption and demand 0.2% per year, up to the ultimate goal of 2% annual savings, for the duration of the 2018-2020 and 2021-2023 EmPOWER Maryland program cycles, to the extent the MDPSC determines that cost-effective programs and services are available. PE's approved 2018-2020 EmPOWER Maryland plan continues and expands upon prior years' programs, and adds new programs, for a projected total cost of $116 million over the three-year period. PE recovers program costs through an annually reconciled surcharge, with most costs subject to a five-year amortization. Maryland law only allows for the utility to recover lost distribution revenue attributable to energy efficiency or demand reduction programs through a base rate case proceeding, and to date, such recovery has not been sought or obtained by PE. On September 1, 2020, PE filed its proposed plan for the 2021-2023 EmPOWER Maryland program cycle. The new plan largely continues PE’s existing programs and is estimated to cost approximately $148 million over the three-year period. The MDPSC approved the plan on December 18, 2020.

On March 22, 2019, MDPSC issued an order approving PE’s 2018 base rate case filing, which among other things, approved an annual rate increase of $6.2 million, approved three of the four EDIS programs for four years to fund enhanced service reliability programs, directed PE to file a new depreciation study within 18 months, and ordered the filing of a new base rate case in four years to correspond to the ending of the approved EDIS programs. On September 22, 2020, PE filed its depreciation study reflecting a slight increase in expense and is seeking the difference to be deferred for future recovery in PE’s next base rate case. On January 29, 2021, the Maryland Office of People's Counsel filed testimony recommending an annual reduction in depreciation expense of $10.8 million, and the staff of the MDPSC filed testimony recommending an annual reduction of $9.6 million. On May 26, 2021, the judge issued a Proposed Order which would reduce PE’s base rates by $2.1 million. PE filed an appeal of the Proposed Order to the MDPSC on June 25, 2021. On July 15, 2021, the Maryland Office of People’s Counsel and staff submitted reply memoranda arguing that the PE appeal be denied and the Proposed Order be affirmed.

Maryland’s Governor issued an order on March 16, 2020, forbidding utilities from terminating residential service or charging late fees for non-payment for the duration of the COVID-19 pandemic. On April 9, 2020, the MDPSC issued an order allowing utilities
to track and create a regulatory asset for future recovery of all prudently incurred incremental costs arising from the COVID-19 pandemic, including incremental uncollectible expense, incurred from the date of the Governor’s order (or earlier if the utility could show that the expenses related to suspension of service terminations). In July 2020, the MDPSC subsequently issued orders allowing Maryland electric and gas utilities to resume residential service terminations for non-payment on November 15, 2020, subject to various restrictions, and clarifying that utilities could resume charging late fees on October 1, 2020. On June 16, 2021, the MDPSC assigned $4 million to PE of COVID-19 relief that was allocated by the Maryland General Assembly to retire residential customer utility arrearages.

NEW JERSEY

JCP&L operates under NJBPU approved rates that were effective as of January 1, 2017. JCP&L provides BGS for retail customers who do not choose a third-party EGS and for customers of third-party EGSs that fail to provide the contracted service. All New Jersey EDCs participate in this competitive BGS procurement process and recover BGS costs directly from customers as a charge separate from base rates.

In December 2017, the NJBPU issued proposed rules to modify its current CTA policy in base rate cases to: (i) calculate savings using a five-year look back from the beginning of the test year; (ii) allocate savings with 75% retained by the company and 25% allocated to ratepayers; and (iii) exclude transmission assets of electric distribution companies in the savings calculation, which were published in the NJ Register in the first quarter of 2018. JCP&L filed comments supporting the proposed rulemaking. On January 17, 2019, the NJBPU approved the proposed CTA rules with no changes. On May 17, 2019, the NJ Rate Counsel filed an appeal with the Appellate Division of the Superior Court of New Jersey and on June 7, 2021, the court issued an Order reversing the NJBPU’s CTA rules and remanded the case back to the NJBPU. Specifically, the court’s ruling requires 100% of the CTA savings to be credited to customers in lieu of the NJBPU’s current policy requiring 25%. The court’s ruling will be applied on a prospective basis.

On February 18, 2020, JCP&L submitted a filing with the NJBPU requesting a distribution base rate increase. On October 28, 2020, the NJBPU approved a stipulated settlement between JCP&L and various parties, providing for, among other things, a $94 million annual base distribution revenues increase for JCP&L based on an ROE of 9.6%, which will become effective for customers on November 1, 2021. Until the rates become effective, and starting on January 1, 2021, JCP&L began to amortize an existing regulatory liability totaling approximately $86 million to offset the base rate increase that otherwise would have occurred in this period. The parties also agreed that the actual net gain from the sale of JCP&L’s interest in the Yards Creek pumped-storage hydro generation facility in New Jersey (210 MWs), as further discussed below, be applied to reduce JCP&L’s existing regulatory asset for previously deferred storm costs. Lastly, the parties agreed that approximately $95 million of Reliability Plus capital investment for projects through December 31, 2020, is included in rate base effective December 31, 2020, with a final prudence review of only those capital investment projects from July 1, 2020, through December 31, 2020, to occur in January 2021. During the first quarter of 2021, JCP&L submitted its review of storm costs, filed a written report for its Reliability Plus projects placed in service from July 1, 2020 through December 31, 2020, and submitted the vegetation management report, all required under the stipulation of settlement. On March 24, 2021, JCP&L, NJ Rate Counsel and the NJBPU Staff submitted a stipulation of settlement to the NJBPU, which was approved on April 7, 2021, providing that the Reliability Plus projects placed into service from July 1, 2020 through December 31, 2020 were reasonable and prudent.
On April 6, 2020, JCP&L signed an asset purchase agreement with Yards Creek Energy, LLC, a subsidiary of LS Power to sell its 50% interest in the Yards Creek pumped-storage hydro generation facility. Subject to terms and conditions of the agreement, the base purchase price is $155 million. As of December 31, 2020, assets held for sale on FirstEnergy’s Consolidated Balance Sheets associated with the transaction consist of property, plant and equipment of $45 million, which is included in the regulated distribution segment. On July 31, 2020, FERC approved the transfer of JCP&L’s interest in the hydroelectric operating license. On October 8, 2020, FERC issued an order authorizing the transfer of JCP&L’s ownership interest in the hydroelectric facilities. On October 28, 2020, the NJBPU approved the sale of Yards Creek. With the receipt of all required regulatory approvals, the transaction was consummated on March 5, 2021 and resulted in a $109 million gain within the regulated distribution segment. As further discussed above, the gain from the transaction was applied against and reduced JCP&L’s existing regulatory asset for previously deferred storm costs and, as a result, was offset by expense in the “Amortization of regulatory assets, net”, line on the Consolidated Statements of Income, resulting in no earnings impact to FirstEnergy or JCP&L.
On August 27, 2020, JCP&L filed an AMI Program with the NJBPU, which proposes the deployment of approximately 1.2 million advanced meters over a three-year period beginning on January 1, 2023, at a total cost of approximately $418 million, including the pre-deployment phase. The 3-year deployment is part of the 20-year AMI Program that is expected to cost a total of approximately $732 million and proposes a cost recovery mechanism through a separate AMI tariff rider. On February 26, 2021, JCP&L filed a letter requesting a suspension of the procedural schedule to allow for settlement discussions, which was granted on March 5, 2021.

On June 10, 2020, the NJBPU issued an order establishing a framework for the filing of utility-run energy efficiency and peak demand reduction programs in accordance with the New Jersey Clean Energy Act. Under the established framework, JCP&L will recover its program investments over a ten-year amortization period and its operations and maintenance expenses on an annual basis, be eligible to receive lost revenues on energy savings that resulted from its programs and be eligible for incentives or subject to penalties based on its annual program performance, beginning in the fifth year of its program offerings. On September 25, 2020, JCP&L filed its energy efficiency and peak demand reduction program. JCP&L’s program consists of 11 energy efficiency and peak demand reduction programs and subprograms to be run from July 1, 2021 through June 30, 2024. The program also seeks approval of cost recovery totaling approximately $230 million as well as lost revenues associated with the energy savings resulting from the programs. On April 23, 2021, JCP&L filed a Stipulation of Settlement with the NJBPU for approval of a three-year plan including $203 million in total cost, as well as recovery of lost revenues resulting from the programs. On April 27, 2021, the NJBPU issued an Order approving the Stipulation of Settlement.
On July 2, 2020, the NJBPU issued an order allowing New Jersey utilities to track and create a regulatory asset for future recovery of all prudently incurred incremental costs arising from the COVID-19 pandemic beginning March 9, 2020 through September 30, 2021, or until the Governor issues an order stating that the COVID-19 pandemic is no longer in effect. New Jersey utilities can request recovery of such regulatory asset in a stand-alone COVID-19 regulatory asset filing or future base rate case. On October 28, 2020, the NJBPU issued an order expanding the scope of the proceeding to examine all pandemic issues, including recovery of the COVID-19 regulatory assets, by way of a generic proceeding. Through various Executive Orders issued by Governor Murphy, the moratorium period is extended to December 31, 2021.

The recent credit rating actions taken on October 28, 2020, by S&P and Fitch triggered a requirement from various NJBPU orders that JCP&L file a mitigation plan, which was filed on November 5, 2020, to demonstrate that JCP&L has sufficient liquidity to meet its BGS obligations. On December 11, 2020, the NJBPU held a public hearing on the mitigation plan. Written comments on JCP&L’s mitigation plan were submitted on January 8, 2021.

On September 23, 2020, the NJBPU issued an Order requiring all New Jersey electric distribution companies to file electric vehicle programs. JCP&L filed its electric vehicle program on March 1, 2021, which consists of six sub-programs, including a consumer education and outreach initiative that would begin on January 1, 2022, and continue over a four-year period. The total proposed budget for the electric vehicle program is approximately $50 million, of which $16 million is capital expenditures and $34 million is for operations and maintenance expenses. JCP&L is proposing to recover the electric vehicle program costs via a non-bypassable rate clause applicable to all distribution customer rate classes, which would become effective on January 1, 2022. On May 26, 2021, a procedural schedule was set to include evidentiary hearings the week of October 18, 2021. On July 16, 2021, the procedural schedule was extended by thirty days as requested by JCP&L to continue settlement discussions.

On October 28, 2020, the NJBPU approved a settlement in JCP&L’s distribution rate, and voted that JCP&L will be subject to an upcoming management audit. The management audit began at the end of May 2021 and is currently ongoing.

OHIO

The Ohio Companies operate under base distribution rates approved by the PUCO effective in 2009. The Ohio Companies currently operate under ESP IV effective June 1, 2016, and continuing through May 31, 2024, that continues the supply of power to non-shopping customers at a market-based price set through an auction process. ESP IV also continues the Rider DCR, which supports continued investment related to the distribution system for the benefit of customers, with increased revenue caps of $20 million per year from June 1, 2019 through May 31, 2022; and $15 million per year from June 1, 2022 through May 31, 2024. In addition, ESP IV includes: (1) continuation of a base distribution rate freeze through May 31, 2024; (2) a goal across FirstEnergy to reduce CO2 emissions by 90% below 2005 levels by 2045; and (3) contributions, totaling $51 million to: (a) fund energy conservation programs, economic development and job retention in the Ohio Companies’ service territories; (b) establish a fuel-fund in each of the Ohio Companies’ service territories to assist low-income customers; and (c) establish a Customer Advisory Council to ensure preservation and growth of the competitive market in Ohio.

ESP IV further provided for the Ohio Companies to collect DMR revenues, but the SCOH reversed the PUCO’s decision to include DMR in ESP IV and subsequently the PUCO entered an order directing the Ohio Companies to cease further collection through the DMR and credit back to customers a refund of the DMR funds collected since July 2, 2019. On July 15, 2019, the OCC filed an appeal with the SCOH, challenging the PUCO’s exclusion of DMR revenues from the determination of the existence of significantly excessive earnings under ESP IV for OE for calendar year 2017, and claiming a $42 million refund is due to OE customers. On December 1, 2020, the SCOH reversed the PUCO’s exclusion of the DMR revenues from the determination of the existence of significantly excessive earnings under ESP IV for OE for calendar year 2017, and remanded the case to the PUCO with instructions to conduct new proceedings which include the DMR revenues in the analysis, determine
the threshold against which the earned return is measured, and make other necessary determinations. FirstEnergy is unable to predict the outcome of these proceedings but has not deemed a liability probable as of June 30, 2021.

On July 23, 2019, Ohio enacted HB 6, which included provisions supporting nuclear energy, as well as a decoupling mechanism for Ohio electric utilities and ending current energy efficiency program mandates. Under HB 6 the energy efficiency program mandates would end on December 31, 2020, provided that statewide energy efficiency mandates are achieved as determined by the PUCO. On February 24, 2021, the PUCO found that statewide energy efficiency mandates had been achieved, and ordered that Ohio electric utilities’ energy efficiency and peak demand reduction cost recovery riders terminate.

On March 31, 2021, Governor DeWine signed HB 128, which, among other things, repealed parts of HB 6, the legislation that established support for nuclear energy supply in Ohio, provided for a decoupling mechanism for Ohio electric utilities, and provided for the ending of current energy efficiency program mandates. HB 128 was effective June 30, 2021. As FirstEnergy would not have financially benefited from the mechanism to provide support to nuclear energy in Ohio, there is no expected additional impact to FirstEnergy due to the repeal of that provision in HB 128.

As further discussed below, in connection with a partial settlement with the OAG and other parties, the Ohio Companies filed an application with the PUCO on February 1, 2021, to set the respective decoupling riders (CSR) to zero. On February 2, 2021, the PUCO approved the application. While the partial settlement with the OAG focused specifically on decoupling, the Ohio Companies will of their own accord not seek to recover lost distribution revenue. FirstEnergy is committed to pursuing an open dialogue with stakeholders in an appropriate manner with respect to the numerous regulatory proceedings currently underway as further discussed herein. As a result of the partial settlement, and the decision to not seek lost distribution revenue, FirstEnergy recognized a $108 million pre-tax charge ($84 million after-tax) in the fourth quarter of 2020, and $77 million (pre-tax) of which is associated with forgoing collection of lost distribution revenue. On March 31, 2021, FirstEnergy announced that the Ohio Companies will proactively refund to customers amounts previously collected under decoupling, with interest, which total approximately $27 million. On April 22, 2021, in anticipation of the effective date of HB 128 and in accordance with HB 128’s provisions regarding the prompt refund of decoupling funds, the Ohio Companies filed an application with the PUCO to modify CSR to return such amount over twelve months commencing June 1, 2021. On June 17, 2021, the Ohio Companies agreed to modify their proposal to return such amount in a single lump sum to customers, beginning on July 1, 2021, or promptly upon obtaining PUCO approval. On July 7, 2021, the PUCO issued an order approving the Ohio Companies’ modified application and directed that all funds collected through CSR be refunded to customers over a single billing cycle beginning August 1, 2021.

On July 17, 2019, the PUCO approved, with no material modifications, a settlement agreement that provides for the implementation of the Ohio Companies’ first phase of grid modernization plans, including the investment of $516 million over three years to modernize the Ohio Companies’ electric distribution system, and for all tax savings associated with the Tax Act to flow back to customers. The settlement had broad support, including PUCO staff, the OCC, representatives of industrial and commercial customers, a low-income advocate, environmental advocates, hospitals, competitive generation suppliers and other parties.

In March 2020, the PUCO issued entries directing utilities to review their service disconnection and restoration policies and suspend, for the duration of the COVID-19 pandemic, otherwise applicable requirements that may impose a service continuity hardship or service restoration hardship on customers. The Ohio Companies are utilizing their existing approved cost recovery mechanisms where applicable to address the financial impacts of these directives. On July 31, 2020, the Ohio Companies filed with the PUCO their transition plan and requests for waivers to allow for the safe resumption of normal business operations, including service disconnections for non-payment. On September 23, 2020, the PUCO approved the Ohio Companies’ transition plan, including approval of the resumption of service disconnections for non-payment, which the Ohio Companies began on October 5, 2020.

On July 29, 2020, the PUCO consolidated the Ohio Companies’ applications for determination of the existence of significantly excessive earnings, or SEET, under ESP IV for calendar years 2018 and 2019, which had been previously filed on July 15, 2019, and May 15, 2020, respectively, and set a procedural schedule with evidentiary hearings. On September 4, 2020, the PUCO opened its quadrennial review of ESP IV, consolidated it with the Ohio Companies’ 2018 and 2019 SEET Applications, and set a procedural schedule for the consolidated matters. On October 29, 2020, the PUCO issued an entry extending the deadline for the Ohio Companies to file quadrennial review of ESP IV testimony and supplemental SEET testimony to March 1, 2021, with the evidentiary hearings to commence no sooner than May 3, 2021. On January 12, 2021, the PUCO consolidated these matters with the determination of the existence of significantly excessive earnings under ESP IV for calendar year 2017, which the SCOH had remanded to the PUCO. On March 1, 2021, the Ohio Companies filed testimony in the quadrennial review and supplemental testimony in the SEET cases for calendar years 2017 through 2019. The calculations included in the quadrennial review for 2020 through 2024 demonstrate that the prospective effect of ESP IV is not substantially likely to provide the Ohio Companies with significantly excessive earnings during the balance of ESP IV. In addition, the Ohio Companies’ quadrennial review testimony demonstrated that ESP IV continues to be more favorable in the aggregate and during the remaining term of ESP IV as compared to the expected results of a market rate offer. Further, the revised calculations included in the Ohio Companies’ supplemental SEET testimony for calendar years 2017 through 2019 demonstrated that the Ohio Companies did not have significantly excessive earnings, on an individual company basis or on a consolidated basis. On March 31, 2021, Governor DeWine signed House Bill 128, which repeals legislation passed in 2019 that permitted the Ohio Companies to file their SEET results on a consolidated basis instead of on an individual company basis. HB 128 was effective June 30, 2021. Further, the
OCC and another party filed testimony on April 5, 2021, recommending refunds for one or more of the Ohio Companies for calendar years 2017 through 2019. On April 20, 2021, the Ohio Companies filed supplemental testimony in the quadrennial review providing prospective SEET values on an individual company basis, which demonstrate that the Ohio Companies are not projected to have significantly excessive earnings, on an individual company basis, during the balance of ESP IV. On May 28, 2021, the attorney examiner issued a procedural schedule setting hearings for August 30, 2021. No contingency has been reflected in FirstEnergy’s consolidated financial statements with respect to these matters as a loss is neither probable, nor is a loss or range of a loss reasonably estimable.

On May 17, 2021, the Ohio Companies filed their application for the determination of significantly excessive earnings for calendar year 2020. The calculations included in the application demonstrated that the Ohio Companies, on an individual company basis, did not have significantly excessive earnings.

In connection with the audit of the Ohio Companies’ Rider DCR for 2017, the PUCO issued an order on June 16, 2021, directing the Ohio Companies to prospectively discontinue capitalizing certain vegetation management costs and reduce the 2017 Rider DCR revenue requirement by $3.7 million associated with these costs.

On September 8, 2020, the OCC filed motions in the Ohio Companies’ corporate separation audit and DMR audit dockets, requesting the PUCO to open an investigation and management audit, hire an independent auditor, and require FirstEnergy to show it did not improperly use money collected from consumers or violate any utility regulatory laws, rules or orders in its activities regarding HB 6. On December 30, 2020, in response to the OCC's motion, the PUCO reopened the DMR audit docket, and directed PUCO staff to solicit a third-party auditor and conduct a full review of the DMR to ensure funds collected from ratepayers through the DMR were only used for the purposes established in ESP IV. On June 2, 2021, the PUCO selected an auditor, and a final audit report is to be filed by October 29, 2021.

On September 15, 2020, the PUCO opened a new proceeding to review the political and charitable spending by the Ohio Companies in support of HB 6 and the subsequent referendum effort, directing the Ohio Companies to show cause, demonstrating that the costs of any political or charitable spending in support of HB 6, or the subsequent referendum effort, were not included, directly or indirectly, in any rates or charges paid by ratepayers. The Ohio Companies filed a response on September 30, 2020, stating that any political and charitable spending in support of HB 6 or the subsequent referendum were not included in rates or charges paid for by its customers. Several parties requested that the PUCO broaden the scope of the review of political and charitable spending. Discovery is ongoing.

In connection with an ongoing audit of the Ohio Companies’ policies and procedures relating to the code of conduct rules between affiliates, on November 4, 2020, the PUCO initiated an additional corporate separation audit as a result of the FirstEnergy leadership transition announcement made on October 29, 2020, as further discussed below. The additional audit is to ensure compliance by the Ohio Companies and their affiliates with corporate separation laws and the Ohio Companies’ corporate separation plan. The additional audit is for the period from November 2016 through October 2020, with a final audit report to be filed by August 6, 2021. On January 27, 2021, the PUCO selected an auditor, and the auditor’s investigation is ongoing.

On November 24, 2020, the Environmental Law and Policy Center filed motions to vacate the PUCO’s orders in proceedings related to the Ohio Companies’ settlement that provides for the implementation of the first phase of grid modernization plans and for all tax savings associated with the Tax Act to flow back to customers, the Ohio Companies’ energy efficiency portfolio plans for the period from 2013 through 2016, and the Ohio Companies’ application for a two-year extension of the DMR, on the grounds that the former Chairman of the PUCO should have recused himself in these matters. On December 30, 2020, the PUCO denied the motions, and reinstated the requirement under ESP IV that the Ohio Companies file a base distribution rate case by May 31, 2024, the end of ESP IV, which the Ohio Companies had indicated they would not oppose.

In the fourth quarter of 2020, motions were filed with the PUCO requesting that the PUCO amend the Ohio Companies’ riders for collecting charges required by HB 6, which the Ohio Companies are further required to remit to other Ohio electric distribution utilities or to the State Treasurer, to provide for refunds in the event such provisions of HB 6 are repealed. The Ohio Companies contested the motions, which are pending before the PUCO.

On December 7, 2020, the Citizens’ Utility Board of Ohio filed a complaint with the PUCO against the Ohio Companies. The complaint alleges that the Ohio Companies’ new charges resulting from HB 6, and any increased rates resulting from proceedings over which the former PUCO Chairman presided, are unjust and unreasonable, and that the Ohio Companies violated Ohio corporate separation laws by failing to operate separately from unregulated affiliates. The complaint requests, among other things, that any rates authorized by HB 6 or authorized by the PUCO in a proceeding over which the former Chairman presided be made refundable; that the Ohio Companies be required to file a new distribution rate case at the earliest possible date; and that the Ohio Companies’ corporate separation plans be modified to introduce institutional controls. The Ohio Companies are contesting the complaint.

In connection with an ongoing annual audit of the Ohio Companies’ Rider DCR for 2020, and as a result of disclosures in FirstEnergy’s Form 10-K for the year ended December 31, 2020 (filed on February 18, 2021), the PUCO expanded the scope of the audit on March 10, 2021, to include a review of certain transactions that were either improperly classified, misallocated, or
lacked supporting documentation, and to determine whether funds collected from ratepayers were used to pay the vendors, and if so, whether or not the funds associated with those payments should be returned to ratepayers through Rider DCR or through an alternative proceeding. A final audit report is to be filed by August 3, 2021.

See Note 9, "Commitments, Guarantees and Contingencies" for additional details on the government investigations and subsequent litigation surrounding the investigation of HB 6.

PENNSYLVANIA

The Pennsylvania Companies operate under rates approved by the PPUC, effective as of January 27, 2017. These rates were adjusted for the net impact of the Tax Act, effective March 15, 2018. The net impact of the Tax Act for the period January 1, 2018 through March 14, 2018 was separately tracked and its treatment will be addressed in a future rate proceeding. The Pennsylvania Companies operate under DSPs for the June 1, 2019 through May 31, 2023 delivery period, which provide for the competitive procurement of generation supply for customers who do not choose an alternative EGS or for customers of alternative EGSs that fail to provide the contracted service. Under the 2019-2023 DSPs, supply will be provided by wholesale suppliers through a mix of 3, 12 and 24-month energy contracts, as well as two RFPs for 2-year SREC contracts for ME, PN and Penn.

Pursuant to Pennsylvania Act 129 of 2008 and PPUC orders, Pennsylvania EDCs implement energy efficiency and peak demand reduction programs. The Pennsylvania Companies’ Phase III EE&C plans for the June 2016 through May 2021 period, which were approved in March 2016, with expected costs up to $390 million, are designed to achieve the targets established in the PPUC’s Phase III Final Implementation Order with full recovery through the reconcilable EE&C riders. On June 18, 2020, the PPUC entered a Final Implementation Order for a Phase IV EE&C Plan, operating from June 2021 through May 2026. The Final Implementation Order set demand reduction targets, relative to 2007 to 2008 peak demands, at 2.9% MW for ME, 3.3% MW for PN, 2.0% MW for Penn, and 2.5% MW for WP; and energy consumption reduction targets, as a percentage of the Pennsylvania Companies’ historic 2009 to 2010 reference load at 3.1% MWH for ME, 3.0% MWH for PN, 2.7% MWH for Penn, and 2.4% MWH for WP. The Pennsylvania Companies’ Phase IV plans were filed November 30, 2020. A settlement has been reached in this matter, and a joint petition seeking approval of that settlement by the parties was filed on February 16, 2021. On March 25, 2021, the PPUC issued an order approving the settlement without modification.

Pennsylvania EDCs are permitted to seek PPUC approval of an LTIIP for infrastructure improvements and costs related to highway relocation projects, after which a DSIC may be approved to recover LTIIP costs. On January 16, 2020, the PPUC approved the Pennsylvania Companies’ LTIIPs for the five-year period beginning January 1, 2020 and ending December 31, 2024 for a total capital investment of approximately $572 million for certain infrastructure improvement initiatives. On June 25, 2021, the Pennsylvania OCA filed a complaint against Penn’s quarterly DSIC rate, disputing the recoverability of the Companies’ automated distribution management system investment under the DSIC mechanism. Penn responded on July 19, 2021.

Following the Pennsylvania Companies’ 2016 base rate proceedings, the PPUC ruled in a separate proceeding related to the DSIC mechanisms that the Pennsylvania Companies were not required to reflect federal and state income tax deductions related to DSIC-eligible property in DSIC rates, which decision was appealed by the Pennsylvania OCA to the Pennsylvania Commonwealth Court. The Commonwealth Court reversed the PPUC’s decision and remanded the matter to require the Pennsylvania Companies to revise their tariffs and DSIC calculations to include ADIT and state income taxes. On April 7, 2020, the Pennsylvania Supreme Court issued an order granting Petitions for Allowance of Appeal by both the PPUC and the Pennsylvania Companies of the Commonwealth Court’s Opinion and Order. Briefs and Reply Briefs of the parties were filed, and oral argument before the Supreme Court was held on October 21, 2020. An adverse ruling by the Pennsylvania Supreme Court is not expected to result in a material impact to FirstEnergy.

The PPUC issued an order on March 13, 2020, forbidding utilities from terminating service for non-payment for the duration of the COVID-19 pandemic. On May 13, 2020, the PPUC issued a Secretarial letter directing utilities to track all prudently incurred incremental costs arising from the COVID-19 pandemic, and to create a regulatory asset for future recovery of incremental uncollectibles incurred as a result of the COVID-19 pandemic and termination moratorium. On October 13, 2020, the PPUC entered an order lifting the service termination moratorium effective November 9, 2020, subject to certain additional notification, payment procedures and exceptions, and permits the Pennsylvania Companies to create a regulatory asset for all incremental expenses associated with their compliance with the order. On March 19, 2021, the PPUC entered an order lifting the moratorium in total effective March 31, 2021, subject to certain additional guidelines regarding the duration of payment arrangements and reporting obligations.

WEST VIRGINIA

MP and PE provide electric service to all customers through traditional cost-based, regulated utility ratemaking and operate under rates approved by the WVPSC effective February 2015. MP and PE recover net power supply costs, including fuel costs, purchased power costs and related expenses, net of related market sales revenue through the ENEC. MP’s and PE’s ENEC rate is updated annually.
On March 13, 2020, the WVPSC urged all utilities to suspend utility service terminations except where necessary as a matter of safety or where requested by the customer. On May 15, 2020, the WVPSC issued an order to authorize MP and PE to record a deferral of additional, extraordinary costs directly related to complying with the various COVID-19 government shut-down orders and operational precautions, including impacts on uncollectible expense and cash flow related to temporary discontinuance of service terminations for non-payment and any credits to minimum demand charges associated with business customers adversely impacted by shut-downs or temporary closures related to the pandemic. MP and PE resumed disconnection activity for commercial and industrial customers on September 15, 2020, and for residential customers on November 4, 2020.

On August 28, 2020, MP and PE filed with the WVPSC their annual ENEC case requesting a decrease in ENEC rates of $55 million beginning January 1, 2021, representing a 4% decrease in rates compared to those in effect on August 28, 2020. The decrease in the ENEC rates is net of recovering approximately $10.5 million in previously deferred, incremental uncollectible and other related costs resulting from the COVID-19 pandemic. The WVPSC approved a unanimous settlement by the parties on December 16, 2020 with rates effective January 1, 2021.

Also, on August 28, 2020, MP and PE filed with the WVPSC for recovery of costs associated with modernization and improvement program for their coal-fired boilers. The proposed annual revenue increase for these environmental compliance projects is $5 million beginning January 1, 2021. The WVPSC approved a unanimous settlement by the parties on December 16, 2020 approving the recovery of those costs.

On December 30, 2020, MP and PE filed an integrated resource plan with the WVPSC. The plan projects a small capacity deficit but an energy surplus in MP’s and PE’s supply resources when compared with current WV load demand and projects the capacity deficit growing over the next 15 years. The plan does not recommend additional supply-side resources with a possible exception for small utility-scale solar resources and recommends that the capacity deficit be met through the PJM capacity market. MP currently expects to seek approval in 2021 to construct solar generation sources of up to 50 MWs. On July 13, 2021, the WVPSC accepted MP’s and PE’s integrated resource plan and closed the case.

On December 30, 2020, MP and PE filed with the WVPSC a determination of the rate impact of the Tax Act with respect to ADIT. The filing proposes an annual revenue reduction of $2.6 million annually, effective January 1, 2022, with reconciliation and any resulting adjustments incorporated into the annual ENEC proceedings. A hearing is set for August 18, 2021.

FERC REGULATORY MATTERS

Under the FPA, FERC regulates rates for interstate wholesale sales, transmission of electric power, accounting and other matters, including construction and operation of hydroelectric projects. With respect to their wholesale services and rates, the Utilities, AE Supply and the Transmission Companies are subject to regulation by FERC. FERC regulations require JCP&L, MP, PE, WP and the Transmission Companies to provide open access transmission service at FERC-approved rates, terms and conditions. Transmission facilities of JCP&L, MP, PE, WP and the Transmission Companies are subject to functional control by PJM and transmission service using their transmission facilities is provided by PJM under the PJM Tariff.

FERC regulates the sale of power for resale in interstate commerce in part by granting authority to public utilities to sell wholesale power at market-based rates upon showing that the seller cannot exert market power in generation or transmission or erect barriers to entry into markets. The Utilities and AE Supply each have been authorized by FERC to sell wholesale power in interstate commerce at market-based rates and have a market-based rate tariff on file with FERC, although in the case of the Utilities major wholesale purchases remain subject to review and regulation by the relevant state commissions.

Federally enforceable mandatory reliability standards apply to the bulk electric system and impose certain operating, record-keeping and reporting requirements on the Utilities, AE Supply, and the Transmission Companies. NERC is the ERO designated by FERC to establish and enforce these reliability standards, although NERC has delegated day-to-day implementation and enforcement of these reliability standards to six regional entities, including RFC. All of the facilities that FirstEnergy operates are located within the RFC region. FirstEnergy actively participates in the NERC and RFC stakeholder processes, and otherwise monitors and manages its companies in response to the ongoing development, implementation and enforcement of the reliability standards implemented and enforced by RFC.

FirstEnergy believes that it is in material compliance with all currently effective and enforceable reliability standards. Nevertheless, in the course of operating its extensive electric utility systems and facilities, FirstEnergy occasionally learns of isolated facts or circumstances that could be interpreted as excursions from the reliability standards. If and when such occurrences are found, FirstEnergy develops information about the occurrence and develops a remedial response to the specific circumstances, including in appropriate cases “self-reporting” an occurrence to RFC. Moreover, it is clear that NERC, RFC and FERC will continue to refine existing reliability standards as well as to develop and adopt new reliability standards. Any inability on FirstEnergy’s part to comply with the reliability standards for its bulk electric system could result in the imposition of financial penalties, or obligations to upgrade or build transmission facilities, that could have a material adverse effect on its financial condition, results of operations and cash flows.
ATSI Transmission Formula Rate

On May 1, 2020, ATSI filed amendments to its formula rate to recover regulatory assets for certain costs that ATSI incurred as a result of its 2011 move from MISO to PJM, certain costs allocated to ATSI by FERC for transmission projects that were constructed by other MISO transmission owners, and certain costs for transmission-related vegetation management programs. Additionally, ATSI proposed certain income tax-related adjustments and certain tariff changes addressing the revenue credit components of the formula rate template. In its filing, ATSI requested recovery of approximately $85 million related to ATSI’s costs to move to PJM, and the MISO transmission project costs that are allocated to ATSI through December 31, 2020; and recovery of future costs associated with the MISO transmission projects. Per prior FERC orders, ATSI included a “cost-benefit study” to support recovery of ATSI’s costs to move to PJM, and the MISO transmission project costs that are allocated to ATSI. Certain intervenors filed protests of the formula rate amendments on May 29, 2020, ATSI filed a reply on June 15, 2020, and certain intervenors filed responses to ATSI’s reply on June 25, and 29, 2020. On June 30, 2020, FERC issued an initial order accepting the tariff amendments subject to refund, suspending the effective date for five months to be effective December 1, 2020, and setting the matter for hearing and settlement proceedings. ATSI is engaged in settlement negotiations with the other parties to this proceeding.

FERC Actions on Tax Act

On March 15, 2018, FERC initiated proceedings on the question of how to address possible changes to ADIT and bonus depreciation as a result of the Tax Act. Such possible changes could impact FERC-jurisdictional rates, including transmission rates. On November 21, 2019, FERC issued a final rule (Order No. 864). Order No. 864 requires utilities with transmission formula rates to update their formula rate templates to include mechanisms to: (i) deduct any excess ADIT from or add any deficient ADIT to their rate base; (ii) raise or lower their income tax allowances by any amortized excess or deficient ADIT; and (iii) incorporate a new permanent worksheet into their rates that will annually track information related to excess or deficient ADIT. Per FERC directives, ATSI submitted its compliance filing on May 1, 2020. MAIT submitted its compliance filing on June 1, 2020. Certain intervenors filed protests of the compliance filings, to which ATSI and MAIT responded. On October 28, 2020, FERC staff requested additional information about ATSI’s proposed rate base adjustment mechanism, and ATSI submitted the requested information on November 25, 2020. On May 4, 2021, FERC staff requested additional information about MAIT’s proposed rate base adjustment mechanism, and MAIT submitted the requested information on June 3, 2021. On June 24, 2021, an intervenor protested the supplemental information that MAIT submitted, to which MAIT responded. On May 15, 2020, TrAIL submitted its compliance filing and on June 1, 2020, PATH submitted its required compliance filing. On May 4, 2021, FERC staff requested additional information about PATH’s proposed rate base adjustment mechanism, and PATH submitted the requested information on June 3, 2021. On July 12, 2021, FERC staff requested additional information about TrAIL’s proposed rate base adjustment mechanism; the due date for TrAIL’s response is August 11, 2021. These compliance filings each remain pending before FERC. MP, WP and PE (as holders of a “stated” transmission rate) are addressing these requirements in the transmission formula rates amendments that were filed on October 29, 2020, and which have been accepted by FERC effective January 1, 2021, subject to refund, pending further hearing and settlement procedures. JCP&L addressed these requirements as part of its transmission formula rate case, which was resolved by a settlement approved by FERC on April 15, 2021, addressed further below.

Transmission ROE Methodology

On May 20, 2021, in a case not involving FirstEnergy, FERC issued Opinion No. 575 in which it reiterated the nationwide ROE methodology set forth in 2020 in Opinion No. 569-A. Under this methodology, FERC employs three financial models – discounted cash flow, capital-asset pricing, and risk premium – to calculate a composite zone of reasonableness. As it has done in other recent ROE cases, FERC rejected the use of the expected earnings methodology in calculating the authorized ROE. A request for clarification or, alternatively, rehearing of Opinion No. 575 was filed on June 21, 2021, and remains pending before FERC. FERC’s Opinion Nos. 569-A and 569-B, upon which Opinion No. 575 is based, have been appealed to the D.C. Circuit. FirstEnergy is not participating in the appeal. Any changes to FERC’s transmission rate ROE and incentive policies for the Utilities would be applied on a prospective basis.

In March 2020, FERC initiated a rulemaking proceeding on the transmission rate incentives provisions of Section 219 of the 2005 Energy Policy Act. FirstEnergy submitted comments through EEI and as part of a consortium of PJM Transmission Owners. In a supplemental rulemaking proceeding that was initiated on April 15, 2021, FERC requested comments on, among other things, whether to require utilities that have been members of an RTO for three years or more and that have been collecting an “RTO membership” ROE incentive adder to file tariff updates that would terminate collection of the incentive adder. Initial comments on the proposed rule were filed on June 25, 2021, and reply comments are due on July 26, 2021. FirstEnergy is a member of PJM and its transmission subsidiaries could be affected by the supplemental proposed rule. FirstEnergy is participating in comments that are to be submitted by various industry trade groups. If there were to be any changes to FirstEnergy transmission incentive ROE, such changes will be applied on a prospective basis.
JCP&L Transmission Formula Rate

On October 30, 2019, JCP&L filed tariff amendments with FERC to convert JCP&L’s existing stated transmission rate to a forward-looking formula transmission rate. JCP&L requested that the tariff amendments become effective January 1, 2020. On December 19, 2019, FERC issued its initial order in the case, allowing JCP&L to transition to a forward-looking formula rate as of January 1, 2020 as requested, subject to refund, pending further hearing and settlement proceedings. JCP&L and the parties to the FERC proceeding subsequently were able to reach settlement, and on February 2, 2021, JCP&L filed an offer of settlement with FERC. On April 15, 2021, FERC approved the settlement agreement as filed, with no changes, effective January 1, 2021. JCP&L submitted a compliance filing on May 14, 2021 to implement aspects of the settlement, which is pending before FERC.

Allegheny Power Zone Transmission Formula Rate Filings

On October 29, 2020, MP, PE and WP filed tariff amendments with FERC to convert their existing stated transmission rate to a forward-looking formula transmission rate, effective January 1, 2021. In addition, on October 30, 2020, KATCo filed a proposed new tariff to establish a forward-looking formula rate and requested that the new rate become effective January 1, 2021. In its filing, KATCo explained that while it currently owns no transmission assets, it may build new transmission facilities in the Allegheny zone, and that it may seek required state and federal authorizations to acquire transmission assets from PE and WP by January 1, 2022. These transmission rate filings were accepted for filing by FERC on December 31, 2020, subject to refund, pending further hearing and settlement procedures and were consolidated into a single proceeding. MP, PE and WP, and KATCo are engaged in settlement negotiations with the other parties to the formula rate proceedings. KATCo will be included in the Regulated Transmission reportable segment.
v3.21.2
Commitments, Guarantees and Contingencies
 6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS, GUARANTEES AND CONTINGENCIES COMMITMENTS, GUARANTEES AND CONTINGENCIES
GUARANTEES AND OTHER ASSURANCES

FirstEnergy has various financial and performance guarantees and indemnifications, which are issued in the normal course of business. These contracts include performance guarantees, stand-by letters of credit, debt guarantees, surety bonds and indemnifications. FirstEnergy enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party.

As of June 30, 2021, outstanding guarantees and other assurances aggregated approximately $1.2 billion, consisting of parental guarantees on behalf of its consolidated subsidiaries ($0.6 billion), other guarantees ($0.1 billion) and other assurances ($0.5 billion).

COLLATERAL AND CONTINGENT-RELATED FEATURES

In the normal course of business, FE and its subsidiaries may enter into physical or financially settled contracts for the sale and purchase of electric capacity, energy, fuel and emission allowances. Certain agreements contain provisions that require FE or its subsidiaries to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon FE’s or its subsidiaries’ credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty.

As of June 30, 2021, $33 million of collateral has been posted by FE or its subsidiaries, of which, $32 million was posted as a result of the credit rating downgrades in the fourth quarter of 2020.

These credit-risk-related contingent features stipulate that if the subsidiary were to be downgraded or lose its investment grade credit rating (based on its senior unsecured debt rating), it would be required to provide additional collateral. The following table discloses the potential additional credit rating contingent contractual collateral obligations as of June 30, 2021:
Potential Collateral ObligationsUtilities and FETFE Total
 (In millions)
Contractual Obligations for Additional Collateral
Upon Further Downgrade $37 $— $37 
Surety Bonds (Collateralized Amount) (1)
56 258 314 
Total Exposure from Contractual Obligations$93 $258 $351 
(1)Surety Bonds are not tied to a credit rating. Surety Bonds’ impact assumes maximum contractual obligations, which is ordinarily 100% of the face amount of the surety bond except with the respect to $39 million of surety bond obligations for which the collateral obligation is capped at 60% of the face amount, and typical obligations require 30 days to cure.
OTHER COMMITMENTS AND CONTINGENCIES

FE is a guarantor under a $120 million syndicated senior secured term loan facility due November 12, 2024, under which Global Holding’s outstanding principal balance was $108 million as of June 30, 2021. Signal Peak, Global Rail, Global Mining Group, LLC and Global Coal Sales Group, LLC, each being a direct or indirect subsidiary of Global Holding, and FE continue to provide their joint and several guaranties of the obligations of Global Holding under the facility.

In connection with the facility, 69.99% of Global Holding’s direct and indirect membership interests in Signal Peak, Global Rail and their affiliates along with FEV’s and WMB Marketing Ventures, LLC’s respective 33-1/3% membership interests in Global Holding, are pledged to the lenders under the current facility as collateral.

ENVIRONMENTAL MATTERS

Various federal, state and local authorities regulate FirstEnergy with regard to air and water quality, hazardous and solid waste disposal, and other environmental matters. While FirstEnergy’s environmental policies and procedures are designed to achieve compliance with applicable environmental laws and regulations, such laws and regulations are subject to periodic review and potential revision by the implementing agencies. FirstEnergy cannot predict the timing or ultimate outcome of any of these reviews or how any future actions taken as a result thereof may materially impact its business, results of operations, cash flows and financial condition.

Clean Air Act

FirstEnergy complies with SO2 and NOx emission reduction requirements under the CAA and SIP(s) by burning lower-sulfur fuel, utilizing combustion controls and post-combustion controls and/or using emission allowances.

CSAPR requires reductions of NOx and SO2 emissions in two phases (2015 and 2017), ultimately capping SO2 emissions in affected states to 2.4 million tons annually and NOx emissions to 1.2 million tons annually. CSAPR allows trading of NOx and SO2 emission allowances between power plants located in the same state and interstate trading of NOx and SO2 emission allowances with some restrictions. On July 28, 2015, the D.C. Circuit ordered the EPA to reconsider the CSAPR caps on NOx and SO2 emissions from power plants in 13 states, including West Virginia. This followed the 2014 U.S. Supreme Court ruling generally upholding the EPA’s regulatory approach under CSAPR but questioning whether the EPA required upwind states to reduce emissions by more than their contribution to air pollution in downwind states. The EPA issued a CSAPR Update on September 7, 2016, reducing summertime NOx emissions from power plants in 22 states in the eastern U.S., including West Virginia, beginning in 2017. Various states and other stakeholders appealed the CSAPR Update to the D.C. Circuit in November and December 2016. On September 13, 2019, the D.C. Circuit remanded the CSAPR Update to the EPA citing that the rule did not eliminate upwind states’ significant contributions to downwind states’ air quality attainment requirements within applicable attainment deadlines.

Also, during this time, in March 2018, the State of New York filed a CAA Section 126 petition with the EPA alleging that NOx emissions from nine states (including West Virginia) significantly contribute to New York’s inability to attain the ozone NAAQS. The petition sought suitable emission rate limits for large stationary sources that are allegedly affecting New York’s air quality within the three years allowed by CAA Section 126. On September 20, 2019, the EPA denied New York’s CAA Section 126 petition. On October 29, 2019, the State of New York appealed the denial of its petition to the D.C. Circuit. On July 14, 2020, the D.C. Circuit reversed and remanded the New York petition to the EPA for further consideration. On March 15, 2021, EPA issued a revised CSAPR Update that addresses, among other things, the remands of the CSAPR Update and the New York Section 126 Petition. Depending on the outcome of any appeals and how the EPA and the states ultimately implement the revised CSAPR Update, the future cost of compliance may materially impact FirstEnergy's operations, cash flows and financial condition.

In February 2019, the EPA announced its final decision to retain without changes the NAAQS for SO2, specifically retaining the 2010 primary (health-based) 1-hour standard of 75 PPB. As of March 31, 2020, FirstEnergy has no power plants operating in areas designated as non-attainment by the EPA.

Climate Change

There are several initiatives to reduce GHG emissions at the state, federal and international level. Certain northeastern states are participating in the RGGI and western states led by California, have implemented programs, primarily cap and trade mechanisms, to control emissions of certain GHGs. Additional policies reducing GHG emissions, such as demand reduction programs, renewable portfolio standards and renewable subsidies have been implemented across the nation.

In September 2016, the U.S. joined in adopting the agreement reached on December 12, 2015, at the United Nations Framework Convention on Climate Change meetings in Paris to reduce GHG. The Paris Agreement’s non-binding obligations to limit global warming to below two degrees Celsius became effective on November 4, 2016. On June 1, 2017, the Trump Administration announced that the U.S. would cease all participation in the Paris Agreement. On January 20, 2021, President Biden signed an executive order re-adopting the agreement on behalf of the U.S. In November 2020, FirstEnergy published its Climate Story which includes its climate position and strategy, as well as a new comprehensive and ambitious GHG emission goal. FirstEnergy
pledged to achieve carbon neutrality by 2050 and set an interim goal for a 30% reduction in GHG within FirstEnergy’s direct operational control by 2030, based on 2019 levels. FirstEnergy cannot currently estimate the financial impact of climate change policies, although potential legislative or regulatory programs restricting CO2 emissions, or litigation alleging damages from GHG emissions, could require material capital and other expenditures or result in changes to its operations.

In December 2009, the EPA released its final “Endangerment and Cause or Contribute Findings for GHG under the Clean Air Act,” concluding that concentrations of several key GHGs constitute an "endangerment" and may be regulated as "air pollutants" under the CAA and mandated measurement and reporting of GHG emissions from certain sources, including electric generating plants. Subsequently, the EPA released its final CPP regulations in August 2015 to reduce CO2 emissions from existing fossil fuel-fired EGUs and finalized separate regulations imposing CO2 emission limits for new, modified, and reconstructed fossil fuel-fired EGUs. Numerous states and private parties filed appeals and motions to stay the CPP with the D.C. Circuit in October 2015. On February 9, 2016, the U.S. Supreme Court stayed the rule during the pendency of the challenges to the D.C. Circuit and U.S. Supreme Court. On March 28, 2017, an executive order, entitled “Promoting Energy Independence and Economic Growth,” instructed the EPA to review the CPP and related rules addressing GHG emissions and suspend, revise or rescind the rules if appropriate. On June 19, 2019, the EPA repealed the CPP and replaced it with the ACE rule that established guidelines for states to develop standards of performance to address GHG emissions from existing coal-fired power plants. On January 19, 2021, the D.C. Circuit vacated and remanded the ACE rule declaring that the EPA was “arbitrary and capricious” in its rule making and, as such, the ACE rule is no longer in effect and all actions thus far taken by states to implement the federally mandated rule are now null and void. The D.C. Circuit decision is subject to legal challenge. Depending on the outcomes of further appeals and how any final rules are ultimately implemented, the future cost of compliance may be material.

Clean Water Act

Various water quality regulations, the majority of which are the result of the federal CWA and its amendments, apply to FirstEnergy’s facilities. In addition, the states in which FirstEnergy operates have water quality standards applicable to FirstEnergy’s operations.

On September 30, 2015, the EPA finalized new, more stringent effluent limits for the Steam Electric Power Generating category (40 CFR Part 423) for arsenic, mercury, selenium and nitrogen for wastewater from wet scrubber systems and zero discharge of pollutants in ash transport water. The treatment obligations were to phase-in as permits are renewed on a five-year cycle from 2018 to 2023. However, on April 13, 2017, the EPA granted a Petition for Reconsideration and on September 18, 2017, the EPA postponed certain compliance deadlines for two years. On August 31, 2020, the EPA issued a final rule revising the effluent limits for discharges from wet scrubber systems, retaining the zero-discharge standard for ash transport water, (with some limited discharge allowances), and extending the deadline for compliance to December 31, 2025 for both. In addition, the EPA allows for less stringent limits for sub-categories of generating units based on capacity utilization, flow volume from the scrubber system, and unit retirement date. Depending on the outcome of appeals, how final rules are ultimately implemented and the compliance options MP elects to take with the new rules, the compliance with these standards, which could include capital expenditures at the Ft. Martin and Harrison power stations, may be substantial and changes to MP’s operations at those power stations may also result.

On September 29, 2016, FirstEnergy received a request from the EPA for information pursuant to CWA Section 308(a) for information concerning boron exceedances of effluent limitations established in the NPDES Permit for the former Mitchell Power Station’s Mingo landfill, owned by WP. On November 1, 2016, WP provided an initial response that contained information related to a similar boron issue at the former Springdale Power Station’s landfill, also owned by WP. The EPA requested additional information regarding the Springdale landfill and on November 15, 2016, WP provided a comprehensive response for both facilities and has fully complied with the Section 308(a) information request. On March 3, 2017, WP proposed to the PA DEP a re-route of its wastewater discharge to eliminate potential boron exceedances at the Springdale landfill and on January 29, 2018, WP submitted an NPDES permit renewal application to PA DEP proposing to re-route its wastewater discharge to eliminate potential boron exceedances at the Mingo landfill. On February 20, 2018, the Department of Justice issued a letter and tolling agreement to WP on behalf of the EPA alleging violations of the CWA at the Springdale and Mingo landfills and seeking to enter settlement negotiations in lieu of filing a complaint. To settle alleged past boron exceedances at both facilities, WP has agreed to a penalty amount of $610,000 to be paid over two years. It is expected that the parties will sign a Consent Decree memorializing the pipeline construction milestones and the civil penalty payments in the third quarter of 2021.

Regulation of Waste Disposal

Federal and state hazardous waste regulations have been promulgated as a result of the RCRA, as amended, and the Toxic Substances Control Act. Certain CCRs, such as coal ash, were exempted from hazardous waste disposal requirements pending the EPA’s evaluation of the need for future regulation.

In April 2015, the EPA finalized regulations for the disposal of CCRs (non-hazardous), establishing national standards for landfill design, structural integrity design and assessment criteria for surface impoundments, groundwater monitoring and protection procedures and other operational and reporting procedures to assure the safe disposal of CCRs from electric generating plants. On September 13, 2017, the EPA announced that it would reconsider certain provisions of the final regulations. On July 17, 2018, the EPA Administrator signed a final rule extending the deadline for certain CCR facilities to cease disposal and commence
closure activities, as well as, establishing less stringent groundwater monitoring and protection requirements. On August 21, 2018, the D.C. Circuit remanded sections of the CCR Rule to the EPA to provide for additional safeguards for unlined CCR impoundments that are more protective of human health and the environment. On December 2, 2019, the EPA published a proposed rule accelerating the date that certain CCR impoundments must cease accepting waste and initiate closure to August 31, 2020. The proposed rule allowed for an extension of the closure deadline based on meeting proscribed site-specific criteria. On July 29, 2020, the EPA published a final rule again revising the date that certain CCR impoundments must cease accepting waste and initiate closure to April 11, 2021. The final rule also allows for an extension of the closure deadline based on meeting proscribed site-specific criteria. On November 30, 2020, AE Supply submitted a closure deadline extension request to the EPA seeking to extend the closure date of McElroy's Run CCR impoundment facility until 2024. AE Supply continues to operate McElroy’s Run as a disposal facility for EH’s Pleasants Power Station.

FE or its subsidiaries have been named as potentially responsible parties at waste disposal sites, which may require cleanup under the CERCLA. Allegations of disposal of hazardous substances at historical sites and the liability involved are often unsubstantiated and subject to dispute; however, federal law provides that all potentially responsible parties for a particular site may be liable on a joint and several basis. Environmental liabilities that are considered probable have been recognized on the Consolidated Balance Sheets as of June 30, 2021, based on estimates of the total costs of cleanup, FirstEnergy’s proportionate responsibility for such costs and the financial ability of other unaffiliated entities to pay. Total liabilities of approximately $101 million have been accrued through June 30, 2021, of which, approximately $67 million are for environmental remediation of former MGP and gas holder facilities in New Jersey, which are being recovered by JCP&L through a non-bypassable SBC. FE or its subsidiaries could be found potentially responsible for additional amounts or additional sites, but the loss or range of losses cannot be determined or reasonably estimated at this time.
OTHER LEGAL PROCEEDINGS

United States v. Larry Householder, et al.

On July 21, 2020, a complaint and supporting affidavit containing federal criminal allegations were unsealed against the now former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder. Also, on July 21, 2020, and in connection with the investigation, FirstEnergy received subpoenas for records from the U.S. Attorney’s Office for the S.D. Ohio. FirstEnergy was not aware of the criminal allegations, affidavit or subpoenas before July 21, 2020.

On July 21, 2021, FE entered into a three-year DPA with the U.S. Attorney’s Office that, subject to court proceedings, resolves this matter. Under the DPA, FE has agreed to the filing of a criminal information charging FE with one count of conspiracy to commit honest services wire fraud. The DPA requires that FirstEnergy, among other obligations: (i) continue to cooperate with the U.S. Attorney’s Office in all matters relating to the conduct described in the DPA and other conduct under investigation by the U.S. government; (ii) pay a criminal monetary penalty totaling $230 million within sixty days, which shall consist of (x) $115 million paid by FE to the United States Treasury and (y) $115 million paid by FE to the ODSA to fund certain assistance programs, as determined by the ODSA, for the benefit of low-income Ohio electric utility customers; (iii) publish a list of all payments made in 2021 to either 501(c)(4) entities or to entities known by FirstEnergy to be operating for the benefit of a public official, either directly or indirectly, and update the same on a quarterly basis during the term of the DPA; (iv) issue a public statement, as dictated in the DPA, regarding FE’s use of 501(c)(4) entities; and (v) continue to implement and review its compliance and ethics program, internal controls, policies and procedures designed, implemented and enforced to prevent and detect violations of the U.S. laws throughout its operations, and to take certain related remedial measures. The $230 million payment will neither be recovered in rates or charged to FirstEnergy customers nor will FirstEnergy seek any tax deduction related to such payment. The entire amount of the monetary penalty was recognized as expense in the second quarter of 2021. Under the terms of the DPA, the criminal information will be dismissed after FirstEnergy fully complies with its obligations under the DPA.

Legal Proceedings Relating to United States v. Larry Householder, et al.

On August 10, 2020, the SEC, through its Division of Enforcement, issued an order directing an investigation of possible securities laws violations by FE, and on September 1, 2020, issued subpoenas to FE and certain FE officers. On April 28, 2021, the SEC issued an additional subpoena to FE. While no contingency has been reflected in its consolidated financial statements, FE believes that it is probable that it will incur a loss in connection with the resolution of the SEC investigation. Given the ongoing nature and complexity of the review, inquiries and investigations, FE cannot yet reasonably estimate a loss or range of loss that may arise from the resolution of the SEC investigation.

In addition to the subpoenas referenced above under “—United States v. Larry Householder, et. al.” and the SEC investigation, certain FE stockholders and FirstEnergy customers filed several lawsuits against FirstEnergy and certain current and former directors, officers and other employees, and the complaints in each of these suits is related to allegations in the complaint and supporting affidavit relating to HB 6 and the now former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder. The plaintiffs in each of the below cases seek, among other things, to recover an unspecified amount of damages (unless otherwise noted). No contingency has been reflected in FirstEnergy’s consolidated financial statements with respect to these lawsuits as a loss is neither probable, nor is a loss or range of a loss reasonably estimable.

•Owens v. FirstEnergy Corp. et al. and Frand v. FirstEnergy Corp. et al. (Federal District Court, S.D. Ohio); on July 28, 2020 and August 21, 2020, purported stockholders of FE filed putative class action lawsuits alleging violations of the federal securities laws. Those actions have been consolidated and a lead plaintiff, the Los Angeles County Employees Retirement Association, has been appointed by the court. A consolidated complaint was filed on February 26, 2021. The consolidated complaint alleges, on behalf of a proposed class of persons who purchased FE securities between February 21, 2017 and July 21, 2020, that FE and certain current or former FE officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing misrepresentations or omissions concerning FE’s business and results of operations. The consolidated complaint also alleges that FE, certain current or former FE officers and directors, and a group of underwriters violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 as a result of alleged misrepresentations or omissions in connection with offerings of senior notes by FE in February and June 2020.
•Gendrich v. Anderson, et al. and Sloan v. Anderson, et al. (Common Pleas Court, Summit County, OH); on July 26, 2020 and July 31, 2020, respectively, purported stockholders of FE filed shareholder derivative action lawsuits against certain FE directors and officers, alleging, among other things, breaches of fiduciary duty. These actions have been consolidated.
•Miller v. Anderson, et al. (Federal District Court, N.D. Ohio); Bloom, et al. v. Anderson, et al.; Employees Retirement System of the City of St. Louis v. Jones, et al.; Electrical Workers Pension Fund, Local 103, I.B.E.W. v. Anderson et al.; Massachusetts Laborers Pension Fund v. Anderson et al.; The City of Philadelphia Board of Pensions and Retirement v. Anderson et al.; Atherton v. Dowling et al; Behar v. Anderson, et al. (U.S. District Court, S.D. Ohio, all actions have been consolidated); beginning on August 7, 2020, purported stockholders of FE filed shareholder derivative actions alleging the board and officers breached their fiduciary duties and committed violations of Section 14(a) of the Securities Exchange Act of 1934. The cases in the S.D. Ohio have been consolidated and co-lead plaintiffs have been appointed by the court. On May 11, 2021, the court denied the defendants’ motion to dismiss in the consolidated
derivative proceedings in the S.D. Ohio. As previously disclosed, on June 29, 2021, the Board established a Special Litigation Committee, effective July 1, 2021. The Special Litigation Committee has been delegated full authority by the Board to take all actions as the Special Litigation Committee deems advisable, appropriate, and in the best interests of FirstEnergy and its shareholders with respect to pending shareholder derivative litigation and demands. On July 20, 2021, the Special Litigation Committee filed motions to stay proceedings in each of the shareholder derivative actions pending in the Northern and Southern Districts of Ohio and in Summit County, Ohio, while the Special Litigation Committee investigates the matters asserted in the lawsuits.
•Smith v. FirstEnergy Corp. et al., Buldas v. FirstEnergy Corp. et al., and Hudock and Cameo Countertops, Inc. v. FirstEnergy Corp. et al. (Federal District Court, S.D. Ohio); on July 27, 2020, July 31, 2020, and August 5, 2020, respectively, purported customers of FirstEnergy filed putative class action lawsuits against FE and FESC, as well as certain current and former FirstEnergy officers, alleging civil Racketeer Influenced and Corrupt Organizations Act violations and related state law claims. These actions have been consolidated, and the court denied FirstEnergy’s motions to dismiss and stay discovery on February 10 and 11, 2021, respectively. The defendants submitted answers to the complaint on March 10, 2021. Discovery is proceeding.
•State of Ohio ex rel. Dave Yost, Ohio Attorney General v. FirstEnergy Corp., et al. and City of Cincinnati and City of Columbus v. FirstEnergy Corp. (Common Pleas Court, Franklin County, OH); on September 23, 2020 and October 27, 2020, the OAG and the cities of Cincinnati and Columbus, respectively, filed complaints against several parties including FE, each alleging civil violations of the Ohio Corrupt Activity Act in connection with the passage of HB 6. On January 13, 2021, the OAG filed a motion for a temporary restraining order and preliminary injunction against FirstEnergy seeking to enjoin FirstEnergy from collecting the Ohio Companies' decoupling rider. On January 31, 2021, FE reached a partial settlement with the OAG and the cities of Cincinnati and Columbus with respect to the temporary restraining order and preliminary injunction request and related issues. In connection with the partial settlement, the Ohio Companies filed an application on February 1, 2021, with the PUCO to set their respective decoupling riders (CSR) to zero. On February 2, 2021, the PUCO approved the application of the Ohio Companies setting the rider to zero and no additional customer bills will include new decoupling rider charges after February 8, 2021. The cities of Dayton and Toledo have also been added as plaintiffs to the action. These actions have been consolidated. The cases are stayed pending final resolution of the United States v. Larry Householder, et al criminal proceeding described above.
•Emmons v. FirstEnergy Corp. et al. (Common Pleas Court, Cuyahoga County, OH); on August 4, 2020, a purported customer of FirstEnergy filed a putative class action lawsuit against FE, FESC, OE, TE and CEI, along with FES, alleging several causes of action, including negligence and/or gross negligence, breach of contract, unjust enrichment, and unfair or deceptive consumer acts or practices. On October 1, 2020, plaintiffs filed a First Amended Complaint, adding as a plaintiff a purported customer of FirstEnergy and alleging a civil violation of the Ohio Corrupt Activity Act and civil conspiracy against FE, FESC and FES. On May 4, 2021, the court granted the defendants’ motion to dismiss plaintiffs’ breach of contract claims and denied the remainder of the motions to dismiss. The defendants submitted answers to the complaint on June 1, 2021. Discovery is proceeding.

In letters dated January 26, and February 22, 2021, staff of FERC's Division of Investigations notified FirstEnergy that the Division is conducting an investigation of FirstEnergy’s lobbying and governmental affairs activities concerning HB 6, and staff directed FirstEnergy to preserve and maintain all documents and information related to the same as such have been developed as part of an ongoing non-public audit being conducted by FERC's Division of Audits and Accounting. While no contingency has been reflected in its consolidated financial statements, FirstEnergy believes that it is probable that it will incur a loss in connection with the resolution of the FERC investigation. Given the ongoing nature and complexity of the review, inquiries and investigations, FirstEnergy cannot yet reasonably estimate a loss or range of loss that may arise from the resolution of the FERC investigation.

The outcome of any of these lawsuits, governmental investigations and audit are uncertain and could have a material adverse effect on FE’s or its subsidiaries’ reputation, business, financial condition, results of operations, liquidity, and cash flows.

Internal Investigation Relating to United States v. Larry Householder, et al.

As previously disclosed, a committee of independent members of the Board of Directors has been directing an internal investigation related to ongoing government investigations. In connection with FirstEnergy’s internal investigation, such committee determined on October 29, 2020, to terminate FirstEnergy’s Chief Executive Officer, Charles E. Jones, together with two other executives: Dennis M. Chack, Senior Vice President of Product Development, Marketing, and Branding; and Michael J. Dowling, Senior Vice President of External Affairs. Each of these terminated executives violated certain FirstEnergy policies and its code of conduct. These executives were terminated as of October 29, 2020. Such former members of senior management did not maintain and promote a control environment with an appropriate tone of compliance in certain areas of FirstEnergy’s business, nor sufficiently promote, monitor or enforce adherence to certain FirstEnergy policies and its code of conduct. Furthermore, certain former members of senior management did not reasonably ensure that relevant information was communicated within our organization and not withheld from our independent directors, our Audit Committee, and our independent auditor. Among the matters considered with respect to the determination by the committee of independent members of the Board of Directors that certain former members of senior management violated certain FirstEnergy policies and its code of conduct related to a payment of approximately $4 million made in early 2019 in connection with the termination of a purported consulting agreement, as amended, which had been in place since 2013. The counterparty to such agreement was an entity associated with an individual who subsequently was appointed to a full-time role as an Ohio government official directly involved
in regulating the Ohio Companies, including with respect to distribution rates. Additionally, on November 8, 2020, the Senior Vice President and Chief Legal Officer, and the Vice President, General Counsel, and Chief Ethics Officer, were separated from FirstEnergy due to inaction and conduct that the Board determined was influenced by the improper tone at the top. Subsequently, effective May 26, 2021, the Vice President, Rates and Regulatory Affairs, and Acting Vice President, External Affairs was separated from FirstEnergy related to her inaction regarding an amendment in 2015 of the purported consulting agreement discussed above.

Additionally, on February 17, 2021, the Board appointed Mr. John W. Somerhalder II to the positions of Vice Chairperson of the Board and Executive Director of FE, each effective as of March 1, 2021. Mr. Donald T. Misheff will continue to serve as Non-Executive Chairman of the Board. Mr. Somerhalder will help lead efforts to enhance FirstEnergy’s reputation. On March 7, 2021, the Board appointed Mr. Steven E. Strah to the position of Chief Executive Officer of FirstEnergy, effective as of March 8, 2021. On March 7, 2021, at the recommendation of the FirstEnergy Corporate Governance and Corporate Responsibility Committee, the Board also elected Mr. Strah as a Director of FirstEnergy, effective as of March 8, 2021.

Also, in connection with the internal investigation, FirstEnergy identified certain transactions, which, in some instances, extended back ten years of more, including vendor service, that were either improperly classified, misallocated to certain of the Utilities and Transmission Companies, or lacked proper supporting documentation. These transactions resulted in amounts collected from customers that were immaterial to FirstEnergy. The Utilities and Transmission Companies are working with the appropriate regulatory agencies to address these amounts.

The internal investigation has revealed no new material issues since FirstEnergy’s Form 10-K was filed on February 18, 2021. The focus of the internal investigation has transitioned from a proactive investigation to continued cooperation with the ongoing government investigations.

Nuclear Plant Matters

On October 15, 2019, JCP&L, ME, PN and GPUN executed an asset purchase and sale agreement with TMI-2 Solutions, LLC, a subsidiary of EnergySolutions, LLC, concerning the transfer and dismantlement of TMI-2. This transfer of TMI-2 to TMI-2 Solutions, LLC will include the: (i) transfer of the ownership and operating NRC licenses for TMI-2; (ii) transfer of the external trusts for the decommissioning and environmental remediation of TMI-2; and (iii) assumption by TMI-2 Solutions, LLC, of certain liabilities, including all responsibility for the TMI-2 site, full decommissioning of TMI-2 and ongoing management of core debris material not previously transferred to the DOE. On August 10, 2020, JCP&L, ME, PN, GPUN, TMI-2 Solutions, LLC, and the PA DEP reached a settlement agreement regarding the decommissioning of TMI-2. On December 2, 2020, the NJBPU issued an order approving the transfer and sale under the conditions requested by NJ Rate Counsel and agreed to by JCP&L. Those conditions will restrict JCP&L from seeking recovery from its ratepayers for any future liabilities JCP&L could incur with respect to TMI-2. Also, on December 2, 2020, the NRC issued its order approving the license transfer as requested. With the receipt of all required regulatory approvals, the transaction was consummated on December 18, 2020.

Other Legal Matters

There are various lawsuits, claims (including claims for asbestos exposure) and proceedings related to FirstEnergy’s normal business operations pending against FE or its subsidiaries. The loss or range of loss in these matters is not expected to be material to FE or its subsidiaries. The other potentially material items not otherwise discussed above are described under Note 8, “Regulatory Matters.”

FirstEnergy accrues legal liabilities only when it concludes that it is probable that it has an obligation for such costs and can reasonably estimate the amount of such costs. In cases where FirstEnergy determines that it is not probable, but reasonably possible that it has a material obligation, it discloses such obligations and the possible loss or range of loss if such estimate can be made. If it were ultimately determined that FE or its subsidiaries have legal liability or are otherwise made subject to liability based on any of the matters referenced above, it could have a material adverse effect on FE’s or its subsidiaries’ financial condition, results of operations and cash flows.
v3.21.2
Segment Information
 6 Months Ended
Jun. 30, 2021
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.

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 POLR, SOS, SSO 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. Included within the segment is $45 million of assets classified as held for sale as of December 31, 2020, associated with the asset purchase agreement with Yards Creek; see Note 8, “Regulatory Matters,” for additional information.
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 at the Transmission Companies and JCP&L as well as stated transmission rates at MP, PE and WP; although as explained in Note 8, “Regulatory Matters,” effective January 1, 2021, subject to refund, MP’s, PE’s and WP’s existing stated rates became forward-looking formula rates. JCP&L previously had stated transmission rates; however, effective January 1, 2020, JCP&L implemented forward-looking formula rates, which were approved by FERC on April 15, 2021. Both forward-looking formula and stated rates recover costs that FERC determines are permitted to be recovered and provide a return on transmission capital investment. 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 costs. Revenue requirements under stated rates are calculated annually by multiplying the highest one-hour peak load in each respective transmission zone by the approved, stated rate in that zone. The segment’s results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy’s transmission facilities.
Corporate/Other reflects corporate support and other costs not charged to FE’s subsidiaries, including FE’s retained Pension and OPEB assets and liabilities of the FES Debtors, interest expense on FE’s holding company debt and other businesses that do not constitute an operating segment. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the following table of Segment Financial Information. As of June 30, 2021, 67 MWs of electric generating capacity, representing AE Supply’s OVEC capacity entitlement, was included in continuing operations of Corporate/Other. As of June 30, 2021, Corporate/Other had approximately $7.9 billion of FE holding company debt.

















Financial information for each of FirstEnergy’s reportable segments is presented in the tables below:
Segment Financial Information
For the Three Months EndedRegulated DistributionRegulated TransmissionCorporate/ OtherReconciling AdjustmentsFirstEnergy Consolidated
(In millions)
June 30, 2021
External revenues$2,208 $411 $3 $— $2,622 
Internal revenues50 8 — (58)— 
Total revenues$2,258 $419 $3 $(58)$2,622 
Depreciation229 77 1 16 323 
Amortization of regulatory assets, net43 6 — — 49 
DPA penalty— — 230 — 230 
Miscellaneous income (expense), net88 11 14 (5)108 
Interest expense131 63 98 (5)287 
Income taxes (benefits)71 37 (12)— 96 
Income (loss) from continuing operations274 116 (332)— 58 
Property additions$346 $257 $19 $— $622 
June 30, 2020
External revenues$2,140 $380 $2 $— $2,522 
Internal revenues48 4 — (52)— 
Total revenues$2,188 $384 $2 $(52)$2,522 
Depreciation226 78 — 17 321 
Amortization of regulatory assets, net10 3 — — 13 
Miscellaneous income (expense), net90 8 7 (2)103 
Interest expense123 55 87 (2)263 
Income taxes (benefits)67 34 (35)— 66 
Income (loss) from continuing operations251 114 (58)— 307 
Property additions$386 $270 $20 $— $676 
For the Six Months Ended
June 30, 2021
External revenues$4,529 $812 $7 $— $5,348 
Internal revenues99 12 — (111)— 
Total revenues$4,628 $824 $7 $(111)$5,348 
Depreciation455 158 2 31 646 
Amortization of regulatory assets, net130 11 — — 141 
DPA penalty— — 230 — 230 
Miscellaneous income (expense), net195 22 36 (10)243 
Interest expense259 124 199 (10)572 
Income taxes (benefits)153 70 (40)— 183 
Income (loss) from continuing operations587 225 (419)— 393 
Property additions$667 $530 $29 $— $1,226 
June 30, 2020
External revenues$4,451 $777 $3 $— $5,231 
Internal revenues95 8 — (103)— 
Total revenues$4,546 $785 $3 $(103)$5,231 
Depreciation449 154 2 33 638 
Amortization of regulatory assets, net59 6 — — 65 
Miscellaneous income (expense), net165 14 32 (8)203 
Interest expense250 107 177 (8)526 
Income taxes (benefits)35 68 (97)— 6 
Income (loss) from continuing operations387 231 (287)— 331 
Property additions$724 $539 $29 $— $1,292 
As of June 30, 2021
Total assets$30,943 $12,779 $641 $— $44,363 
Total goodwill$5,004 $614 $— $— $5,618 
As of December 31, 2020
Total assets$30,855 $12,592 $1,017 $— $44,464 
Total goodwill$5,004 $614 $— $— $5,618 
v3.21.2
Organization and Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Accounting
These interim financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements and notes prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim financial statements should be read in conjunction with the financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2020.

FE and its subsidiaries follow GAAP and comply with the related regulations, orders, policies and practices prescribed by the SEC, FERC, and, as applicable, the PUCO, the PPUC, the MDPSC, the NYPSC, the WVPSC, the VSCC and the NJBPU. The accompanying interim financial statements are unaudited, but reflect all adjustments, consisting of normal recurring adjustments, that, in the opinion of management, are necessary for a fair statement of the financial statements. The preparation of financial statements in conformity with GAAP requires management to make periodic estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not necessarily indicative of results of operations for any future period. FE and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
Consolidation Policy FE and its subsidiaries consolidate all majority-owned subsidiaries over which they exercise control and, when applicable, entities for which they have a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation as appropriate and permitted pursuant to GAAP. FE and its subsidiaries consolidate a VIE when it is determined that it is the primary beneficiary. Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but do not have a controlling financial interest, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and the percentage of FE’s ownership share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income.
Customer Receivables
Customer Receivables

Receivables from customers include distribution services and retail generation sales to residential, commercial and industrial customers of the Utilities. The allowance for uncollectible customer receivables is based on historical loss information comprised of a rolling 36-month average net write-off percentage of revenues, in conjunction with a qualitative assessment of elements that impact the collectability of receivables to determine if allowances for uncollectible accounts should be further adjusted in accordance with the accounting guidance for credit losses.

FirstEnergy reviews its allowance for uncollectible customer receivables utilizing a quantitative and qualitative assessment. Management contemplates available current information such as changes in economic factors, regulatory matters, industry trends, customer credit factors, amount of receivable balances that are past-due, payment options and programs available to customers, and the methods that the Utilities are able to utilize to ensure payment. This analysis includes consideration of the outbreak of COVID-19 and the impact on customer receivable balances outstanding since the pandemic began.
Beginning March 13, 2020, FirstEnergy temporarily suspended customer disconnections for nonpayment and ceased collection activities as a result of the ongoing pandemic and in accordance with state regulatory requirements. The temporary suspension of disconnections for nonpayment and ceasing of collection activities extended into the fourth quarter of 2020 but resumed for most customers before the end of 2020. Customers are subject to each state's applicable regulations on winter moratoriums for residential customers, which begin as early as November 1, 2020, and were in effect until April 15, 2021. During 2021, FirstEnergy reviewed its allowance for uncollectible customer receivables based on this qualitative assessment and has experienced a reduction in customer accounts that are past due by greater than 30 days since the end of 2020. Additionally, customer accounts in arrears continue to decrease in 2021; however customer accounts being moved to the final stage of the collection process have begun to increase. Furthermore, other factors were also considered in the quarterly analysis, such as certain state funding being made available to assist with past due utility bills and vaccine distribution. As a result of this analysis, FirstEnergy did not recognize any incremental uncollectible expense in the six months ended June 30, 2021.
Receivables from customers also include PJM receivables resulting from transmission and wholesale sales. FirstEnergy’s credit risk on PJM receivables is reduced due to the nature of PJM’s settlement process whereby members of PJM legally agree to share the cost of defaults and as a result there is no allowance for doubtful accounts
New Accounting Pronouncements
New Accounting Pronouncements

Recently Adopted Pronouncements

ASU 2019-12, "Simplifying the Accounting for Income Taxes" (Issued in December 2019): ASU 2019-12 enhances and simplifies various aspects of the income tax accounting guidance, including the elimination of certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. FirstEnergy adopted the guidance as of January 1, 2021, with no material impact to the financial statements.

Recently Issued Pronouncements - FirstEnergy has assessed new authoritative accounting guidance issued by the FASB that has not yet been adopted and none are currently expected to have a material impact to the financial statements.
Revenue
FirstEnergy accounts for revenues from contracts with customers under ASC 606, “Revenue from Contracts with Customers.” Revenue from leases, financial instruments, other contractual rights or obligations and other revenues that are not from contracts with customers are outside the scope of the standard and accounted for under other existing GAAP.

FirstEnergy has elected to exclude sales taxes and other similar taxes collected on behalf of third parties from revenue as prescribed in the standard. As a result, tax collections and remittances are excluded from recognition in the income statement and instead recorded through the balance sheet. Excise and gross receipts taxes that are assessed on FirstEnergy are not subject to the election and are included in revenue. FirstEnergy has elected the optional invoice practical expedient for most of its revenues and utilizes the optional short-term contract exemption for transmission revenues due to the annual establishment of revenue requirements, which eliminates the need to provide certain revenue disclosures regarding unsatisfied performance obligations.
FirstEnergy’s revenues are primarily derived from electric service provided by the Utilities and Transmission Companies.
Earnings Per Share
Basic EPS available to common stockholders is computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted EPS of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised.

Diluted EPS reflects the dilutive effect of potential common shares from share-based awards The dilutive effect of outstanding share-based awards was computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of the award would be used to purchase common stock at the average market price for the period.
Investments
INVESTMENTS

All temporary cash investments purchased with an initial maturity of three months or less are reported as cash equivalents on the Consolidated Balance Sheets at cost, which approximates their fair market value. Investments other than cash and cash equivalents include equity securities, AFS debt securities and other investments. FirstEnergy has no debt securities held for trading purposes.
Generally, unrealized gains and losses on equity securities are recognized in income whereas unrealized gains and losses on AFS debt securities are recognized in AOCI. However, the spent nuclear fuel disposal trusts and NDTs of JCP&L, ME and PN are subject to regulatory accounting with all gains and losses on equity and AFS debt securities offset against regulatory assets. On October 15, 2019, JCP&L, ME, PN and GPUN executed an asset purchase and sale agreement with TMI-2 Solutions, LLC, a subsidiary of EnergySolutions, LLC, concerning the transfer and dismantlement of TMI-2. With the receipt of all required regulatory approvals, the transaction was consummated, including the transfer of external trusts for the decommissioning and environmental remediation of TMI-2, on December 18, 2020. Please see Note 9, "Commitments, Guarantees and Contingencies," for further information.
Long-Term Debt and Other Long-Term Obligations LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONSAll borrowings with initial maturities of less than one year are defined as short-term financial instruments under GAAP and are reported as Short-term borrowings on the Consolidated Balance Sheets at cost. Since these borrowings are short-term in nature, FirstEnergy believes that their costs approximate their fair market value.
v3.21.2
Organization and Basis of Presentation (Tables)
 6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Activity in the allowance for uncollectible accounts on customer receivables
Activity in the allowance for uncollectible accounts on customer receivables for the six months ended June 30, 2021 and for the year ended December 31, 2020 are as follows:
(In millions)
Balance, January 1, 2020$46 
Charged to income (1)
174 
Charged to other accounts (2)
46 
Write-offs(102)
Balance, December 31, 2020$164 
Charged to income11 
Charged to other accounts (2)
23 
Write-offs(41)
Balance, June 30, 2021$157 
(1) $103 million of which was deferred for future recovery in the twelve months ended December 31, 2020.
(2) Represents recoveries and reinstatements of accounts written off for uncollectible accounts.
v3.21.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables represent a disaggregation of revenue from contracts with customers for the three and six months ended June 30, 2021 and 2020, by type of service from each reportable segment:
For the Three Months Ended June 30, 2021
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $1,304 $— $(26)$1,278 
Retail generation831 — (13)818 
Wholesale sales74 — 3 77 
Transmission — 411 — 411 
Other26 — — 26 
Total revenues from contracts with customers$2,235 $411 $(36)$2,610 
ARP— — — — 
Other non-customer revenue 23 8 (19)12 
Total revenues$2,258 $419 $(55)$2,622 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.

For the Three Months Ended June 30, 2020
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $1,241 $— $(22)$1,219 
Retail generation826 — (15)811 
Wholesale sales50 — 2 52 
Transmission — 380 — 380 
Other31 — — 31 
Total revenues from contracts with customers$2,148 $380 $(35)$2,493 
ARP (2)
15 — — 15 
Other non-customer revenue 25 4 (15)14 
Total revenues$2,188 $384 $(50)$2,522 

(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
(2) ARP revenue for the three months ended June 30, 2020, is primarily related to the reconciliation of Ohio decoupling rates that became effective on February 1, 2020. See Note 8, “Regulatory Matters,” for further discussion on Ohio decoupling rates.
For the Six Months Ended June 30, 2021
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $2,643 $— $(52)$2,591 
Retail generation1,766 — (25)1,741 
Wholesale sales143 — 7 150 
Transmission— 812 — 812 
Other59 — — 59 
Total revenues from contracts with customers$4,611 $812 $(70)$5,353 
ARP (2)
(27)— — (27)
Other non-customer revenue 44 12 (34)22 
Total revenues$4,628 $824 $(104)$5,348 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
(2) Reflects amount the Ohio Companies will collectively refund to customers that was previously collected under decoupling mechanisms, with interest. See Note 8, “Regulatory Matters,” for further discussion on Ohio decoupling rates.

For the Six Months Ended June 30, 2020
Revenues by Type of ServiceRegulated DistributionRegulated Transmission
Corporate/Other and Reconciling Adjustments (1)
Total
(In millions)
Distribution services $2,497 $— $(43)$2,454 
Retail generation1,730 — (30)1,700 
Wholesale sales121 — 3 124 
Transmission— 777 — 777 
Other67 — — 67 
Total revenues from contracts with customers$4,415 $777 $(70)$5,122 
ARP (2)
83 — — 83 
Other non-customer revenue 48 8 (30)26 
Total revenues$4,546 $785 $(100)$5,231 
(1) Includes eliminations and reconciling adjustments of inter-segment revenues.
(2) ARP revenue for the six months ended June 30, 2020, is primarily related to the reconciliation of Ohio decoupling rates that became effective on February 1, 2020. See Note 8, “Regulatory Matters,” for further discussion on Ohio decoupling rates.
The following table represents a disaggregation of the Regulated Distribution segment revenue from contracts with distribution service and retail generation customers for the three and six months ended June 30, 2021 and 2020, by class:
For the Three Months Ended June 30,For the Six Months Ended June 30,
Revenues by Customer Class 2021202020212020
(In millions)
Residential$1,287 $1,280 $2,744 $2,599 
Commercial562 507 1,103 1,051 
Industrial268 259 526 536 
Other18 21 36 41 
Total Revenues$2,135 $2,067 $4,409 $4,227 
The following table represents a disaggregation of revenue from contracts with regulated transmission customers for the three and six months ended June 30, 2021 and 2020, by transmission owner:
For the Three Months Ended June 30,For the Six Months Ended June 30,
Transmission Owner2021202020212020
(In millions)
ATSI$193 $192 $398 $394 
TrAIL57 57 117 121 
MAIT80 58 147 117 
JCP&L46 39 85 77 
MP, PE and WP 35 34 65 68 
Total Revenues$411 $380 $812 $777 
v3.21.2
Discontinued Operations (Tables)
 6 Months Ended
Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
Summarized results of discontinued operations for the three and six months ended June 30, 2021 and 2020, were as follows:
For the Three Months Ended June 30,For the Six Months Ended June 30,
(In millions)2021202020212020
Revenues$— $— $— $7 
Fuel — — — (6)
Other operating expenses— — — (6)
Other income— — — 5 
Income from discontinued operations, before tax— — — — 
Income tax expense— — — — 
Income from discontinued operations, net of tax— — — — 
Settlement consideration — 3 — (1)
Accelerated net pension and OPEB prior service credits— — — 18 
Gain on disposal of FES and FENOC, before tax— 3 — 17 
Income taxes (benefits), including worthless stock deduction — 1 (35)
Gain on disposal of FES and FENOC, net of tax— 2 — 52 
Income from discontinued operations$— $2 $— $52 
v3.21.2
Earnings Per Share Of Common Stock (Tables)
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Reconciliation of Basic and Diluted Earnings Per Share
The following table reconciles basic and diluted EPS of common stock:
For the Three Months Ended June 30,For the Six Months Ended June 30,
Reconciliation of Basic and Diluted EPS of Common Stock2021202020212020
(In millions, except per share amounts)
EPS of Common Stock
Income from continuing operations$58 $307 $393 $331 
Discontinued operations, net of tax— 2 — 52 
Income available to common stockholders$58 $309 $393 $383 
Share count information:
Weighted average number of basic shares outstanding544 542 544 541 
Assumed exercise of dilutive stock options and awards1 1 1 2 
Weighted average number of diluted shares outstanding545 543 545 543 
Income available to common stockholders, per common share:
Income from continuing operations, basic$0.11 $0.57 $0.72 $0.61 
Discontinued operations, basic — — — 0.10 
Income available to common stockholders, basic $0.11 $0.57 $0.72 $0.71 
Income from continuing operations, diluted$0.11 $0.57 $0.72 $0.61 
Discontinued operations, diluted— — — 0.10 
Income available to common stockholders, diluted$0.11 $0.57 $0.72 $0.71 
v3.21.2
Pension and Other Post-Employment Benefits (Tables)
 6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Costs
The components of the consolidated net periodic costs (credits) for pension and OPEB were as follows:
Components of Net Periodic Benefit Costs (Credits)PensionOPEB
For the Three Months Ended June 30,2021202020212020
 (In millions)
Service costs $48 $48 $1 $1 
Interest costs 57 70 2 4 
Expected return on plan assets(163)(155)(7)(8)
Amortization of prior service costs (credits)(1)
1 1 (5)(5)
Net periodic credits, including amounts capitalized$(57)$(36)$(9)$(8)
Net periodic credits, recognized in earnings$(85)$(62)$(10)$(8)
(1) The income tax benefits associated with pension and OPEB prior service costs amortized out of AOCI were $1 million both for the three months ended June 30, 2021 and 2020, respectively.

Components of Net Periodic Benefit Costs (Credits)PensionOPEB
For the Six Months Ended June 30,2021202020212020
 (In millions)
Service costs $97 $100 $2 $2 
Interest costs 113 145 5 8 
Expected return on plan assets(326)(308)(17)(16)
Amortization of prior service costs (credits)(1) (2)
2 11 (9)(38)
One-time termination benefit (3)
— 8 — — 
Pension and OPEB mark-to-market adjustment — 386 — 37 
Net periodic costs (credits), including amounts capitalized$(114)$342 $(19)$(7)
Net periodic costs (credits), recognized in earnings$(163)$296 $(20)$(7)
(1) 2020 includes the acceleration of $18 million in net credits as a result of the FES Debtors’ emergence during the first quarter of 2020 and is a component of discontinued operations in FirstEnergy’s Consolidated Statements of Income.
(2) The income tax benefits associated with pension and OPEB prior service costs amortized out of AOCI were $2 million and $6 million for the six months ended June 30, 2021 and 2020, respectively.
(3) Costs represent additional benefits provided to FES and FENOC employees under the approved settlement agreement and are a component of discontinued operations in FirstEnergy’s Consolidated Statements of Income.
v3.21.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured on Recurring Basis
The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy:
June 30, 2021December 31, 2020
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets(In millions)
Derivative assets FTRs(1)
$— $— $5 $5 $— $— $3 $3 
Equity securities2 — — 2 2 — — 2 
U.S. state debt securities— 269 — 269 — 276 — 276 
Cash, cash equivalents and restricted cash(2)
1,312 — — 1,312 1,801 — — 1,801 
Other(3)
— 45 — 45 — 41 — 41 
Total assets$1,314 $314 $5 $1,633 $1,803 $317 $3 $2,123 
Liabilities
Derivative liabilities FTRs(1)
$— $— $(2)$(2)$— $— $— $— 
Total liabilities$— $— $(2)$(2)$— $— $— $— 
Net assets (liabilities)(4)
$1,314 $314 $3 $1,631 $1,803 $317 $3 $2,123 
(1)Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.
(2)Restricted cash primarily relates to cash collected from JCP&L, MP, PE and the Ohio Companies’ customers that is specifically used to service debt of their respective funding companies.
(3)Primarily consists of short-term investments.
(4)Excludes $1 million as of December 31, 2020, of net receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
Quantitative Information for Level 3 Valuation
The following table provides quantitative information for FTRs contracts that are classified as Level 3 in the fair value hierarchy for the period ended June 30, 2021:
Fair Value, Net (In millions)Valuation
Technique		Significant InputRangeWeighted AverageUnits
FTRs$3 ModelRTO auction clearing prices$(0.10)to$1.90 $0.90Dollars/MWH
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, 2021, and December 31, 2020:
June 30, 2021(1)
December 31, 2020(2)
Cost BasisUnrealized GainsUnrealized LossesFair ValueCost BasisUnrealized GainsUnrealized LossesFair Value
(In millions)
Debt securities$272 $4 $(7)$269 $275 $7 $(6)$276 
(1) Excludes short-term cash investments of $15 million.
    (2) Excludes short-term cash investments of $9 million.
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, 2021 and 2020, were as follows:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2021
2020(1)
2021
2020(1)
(In millions)
Sale proceeds$8 $26 $13 $39 
Realized gains— — — 4 
Realized losses(1)(2)(1)(7)
Interest and dividend income2 9 5 14 
(1) Includes amounts associated with NDTs that were previously held by JCP&L, ME, and PN. See above for additional information.
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, 2021 and December 31, 2020:
June 30, 2021December 31, 2020
(In millions)
Carrying value (1)
$23,844 $22,377 
Fair value$26,802 $25,465 
Schedule of Long-term Debt Instruments
During the six months ended June 30, 2021, the following long-term debt was issued:
Company Interest RateMaturity AmountUse of proceeds
FET2.866%2028$500 millionRepay short-term borrowings under the FET Revolving Facility.
MP3.55%2027$200 millionFund MP’s ongoing capital expenditures, for working capital needs and for other general corporate purposes.
TE2.65%2028$150 millionRepay short-term borrowings, fund TE’s ongoing capital expenditures and for other general corporate purposes.
MAIT4.10%2028$150 millionRepay borrowings outstanding under FirstEnergy’s regulated company money pool, fund MAIT’s ongoing capital expenditures, to fund working capital and for other general corporate purposes.
JCP&L2.75%2032$500 million
Repay $450 million of short-term debt under the FE Revolving Facility, storm recovery and restoration costs and expenses, to fund JCP&L’s ongoing capital expenditures, working capital requirements and for other general corporate purposes.
v3.21.2
Commitments, Guarantees and Contingencies (Tables)
 6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Guarantor Obligations
These credit-risk-related contingent features stipulate that if the subsidiary were to be downgraded or lose its investment grade credit rating (based on its senior unsecured debt rating), it would be required to provide additional collateral. The following table discloses the potential additional credit rating contingent contractual collateral obligations as of June 30, 2021:
Potential Collateral ObligationsUtilities and FETFE Total
 (In millions)
Contractual Obligations for Additional Collateral
Upon Further Downgrade $37 $— $37 
Surety Bonds (Collateralized Amount) (1)
56 258 314 
Total Exposure from Contractual Obligations$93 $258 $351 
(1)Surety Bonds are not tied to a credit rating. Surety Bonds’ impact assumes maximum contractual obligations, which is ordinarily 100% of the face amount of the surety bond except with the respect to $39 million of surety bond obligations for which the collateral obligation is capped at 60% of the face amount, and typical obligations require 30 days to cure.
v3.21.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Financial Information
Financial information for each of FirstEnergy’s reportable segments is presented in the tables below:
Segment Financial Information
For the Three Months EndedRegulated DistributionRegulated TransmissionCorporate/ OtherReconciling AdjustmentsFirstEnergy Consolidated
(In millions)
June 30, 2021
External revenues$2,208 $411 $3 $— $2,622 
Internal revenues50 8 — (58)— 
Total revenues$2,258 $419 $3 $(58)$2,622 
Depreciation229 77 1 16 323 
Amortization of regulatory assets, net43 6 — — 49 
DPA penalty— — 230 — 230 
Miscellaneous income (expense), net88 11 14 (5)108 
Interest expense131 63 98 (5)287 
Income taxes (benefits)71 37 (12)— 96 
Income (loss) from continuing operations274 116 (332)— 58 
Property additions$346 $257 $19 $— $622 
June 30, 2020
External revenues$2,140 $380 $2 $— $2,522 
Internal revenues48 4 — (52)— 
Total revenues$2,188 $384 $2 $(52)$2,522 
Depreciation226 78 — 17 321 
Amortization of regulatory assets, net10 3 — — 13 
Miscellaneous income (expense), net90 8 7 (2)103 
Interest expense123 55 87 (2)263 
Income taxes (benefits)67 34 (35)— 66 
Income (loss) from continuing operations251 114 (58)— 307 
Property additions$386 $270 $20 $— $676 
For the Six Months Ended
June 30, 2021
External revenues$4,529 $812 $7 $— $5,348 
Internal revenues99 12 — (111)— 
Total revenues$4,628 $824 $7 $(111)$5,348 
Depreciation455 158 2 31 646 
Amortization of regulatory assets, net130 11 — — 141 
DPA penalty— — 230 — 230 
Miscellaneous income (expense), net195 22 36 (10)243 
Interest expense259 124 199 (10)572 
Income taxes (benefits)153 70 (40)— 183 
Income (loss) from continuing operations587 225 (419)— 393 
Property additions$667 $530 $29 $— $1,226 
June 30, 2020
External revenues$4,451 $777 $3 $— $5,231 
Internal revenues95 8 — (103)— 
Total revenues$4,546 $785 $3 $(103)$5,231 
Depreciation449 154 2 33 638 
Amortization of regulatory assets, net59 6 — — 65 
Miscellaneous income (expense), net165 14 32 (8)203 
Interest expense250 107 177 (8)526 
Income taxes (benefits)35 68 (97)— 6 
Income (loss) from continuing operations387 231 (287)— 331 
Property additions$724 $539 $29 $— $1,292 
As of June 30, 2021
Total assets$30,943 $12,779 $641 $— $44,363 
Total goodwill$5,004 $614 $— $— $5,618 
As of December 31, 2020
Total assets$30,855 $12,592 $1,017 $— $44,464 
Total goodwill$5,004 $614 $— $— $5,618 
v3.21.2
Organization and Basis of Presentation - Narrative (Details)
mi in Thousands, customer in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
USD ($)
company
agreement
transmissionCenter
MW
Jun. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
customer
transmissionCenter
company
agreement
mi
MW
Jun. 30, 2020
USD ($)
Property, Plant and Equipment [Line Items]        
Length of transmission lines | mi     24  
Number of regional transmission centers | transmissionCenter 2   2  
Capitalized cost of equity $ 14,000,000 $ 12,000,000 $ 21,000,000 $ 23,000,000
Capitalized interest $ 7,000,000 $ 6,000,000 $ 13,000,000 $ 13,000,000
Revolving Credit Facility | Line of Credit        
Property, Plant and Equipment [Line Items]        
Number of agreements | agreement 2   2  
Maximum amount borrowed under revolving credit facility $ 3,500,000,000   $ 3,500,000,000  
Revolving Credit Facility | Line of Credit | FirstEnergy        
Property, Plant and Equipment [Line Items]        
Maximum amount borrowed under revolving credit facility 2,500,000,000   2,500,000,000  
Revolving Credit Facility | Line of Credit | FET Sub-limits        
Property, Plant and Equipment [Line Items]        
Maximum amount borrowed under revolving credit facility $ 1,000,000,000.0   $ 1,000,000,000.0  
PN | Waverly, New York        
Property, Plant and Equipment [Line Items]        
Number of customers served by utility operating companies | customer     4  
Parent, the Utilities, FET and Certain Subsidiaries | Revolving Credit Facility | Line of Credit        
Property, Plant and Equipment [Line Items]        
Debt term     5 years  
Regulated Distribution        
Property, Plant and Equipment [Line Items]        
Number of existing utility operating companies | company 10   10  
Number of customers served by utility operating companies | customer     6,000  
Plant capacity (in MW's) | MW 3,580   3,580  
v3.21.2
Organization and Basis of Presentation - Activity in Uncollectable Accounts (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance $ 164 $ 46
Charged to income 11 174
Charged to other accounts 23 46
Write-offs (41) (102)
Ending balance $ 157 164
Deferred for recovery   $ 103
v3.21.2
Revenue (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
USD ($)
company
MW
Jun. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
company
MW
Jun. 30, 2020
USD ($)
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers $ 2,610 $ 2,493 $ 5,353 $ 5,122
Total revenues [1] 2,622 2,522 5,348 5,231
Other Non-Customer Revenue        
Disaggregation of Revenue [Line Items]        
Late payment charges 9 6 18 16
Distribution services        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 1,278 1,219 2,591 2,454
Retail generation        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 818 811 1,741 1,700
Wholesale sales        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 77 52 150 124
Transmission        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 411 380 812 777
Other        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 26 31 59 67
ARP        
Disaggregation of Revenue [Line Items]        
Total revenues 0 15 (27) 83
Other non-customer revenue        
Disaggregation of Revenue [Line Items]        
Total revenues 12 14 22 26
Derivative revenue | Other Non-Customer Revenue        
Disaggregation of Revenue [Line Items]        
Late payment charges 2 6 2 6
Regulated Distribution        
Disaggregation of Revenue [Line Items]        
Total revenues $ 2,135 2,067 $ 4,409 4,227
Number of existing utility operating companies | company 10   10  
Megawatts of net demonstrated capacity of competitive segment | MW 3,580   3,580  
Utility customer payment period     30 days  
Regulated Distribution | Residential        
Disaggregation of Revenue [Line Items]        
Total revenues $ 1,287 1,280 $ 2,744 2,599
Regulated Distribution | Commercial        
Disaggregation of Revenue [Line Items]        
Total revenues 562 507 1,103 1,051
Regulated Distribution | Industrial        
Disaggregation of Revenue [Line Items]        
Total revenues 268 259 526 536
Regulated Distribution | Other        
Disaggregation of Revenue [Line Items]        
Total revenues 18 21 36 41
Regulated Transmission        
Disaggregation of Revenue [Line Items]        
Total revenues 411 380 812 777
Regulated Transmission | ATSI        
Disaggregation of Revenue [Line Items]        
Total revenues 193 192 398 394
Regulated Transmission | TrAIL        
Disaggregation of Revenue [Line Items]        
Total revenues 57 57 117 121
Regulated Transmission | MAIT        
Disaggregation of Revenue [Line Items]        
Total revenues 80 58 147 117
Regulated Transmission | JCP&L        
Disaggregation of Revenue [Line Items]        
Total revenues 46 39 85 77
Regulated Transmission | MP, PE and WP        
Disaggregation of Revenue [Line Items]        
Total revenues 35 34 65 68
Operating Segments | Regulated Distribution        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 2,235 2,148 4,611 4,415
Total revenues 2,258 2,188 4,628 4,546
Operating Segments | Regulated Distribution | Distribution services        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 1,304 1,241 2,643 2,497
Operating Segments | Regulated Distribution | Retail generation        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 831 826 1,766 1,730
Operating Segments | Regulated Distribution | Wholesale sales        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 74 50 143 121
Operating Segments | Regulated Distribution | Transmission        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 0 0 0 0
Operating Segments | Regulated Distribution | Other        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 26 31 59 67
Operating Segments | Regulated Distribution | ARP        
Disaggregation of Revenue [Line Items]        
Total revenues 0 15 (27) 83
Operating Segments | Regulated Distribution | Other non-customer revenue        
Disaggregation of Revenue [Line Items]        
Total revenues 23 25 44 48
Operating Segments | Regulated Transmission        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 411 380 812 777
Total revenues 419 384 824 785
Operating Segments | Regulated Transmission | Distribution services        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 0 0 0 0
Operating Segments | Regulated Transmission | Retail generation        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 0 0 0 0
Operating Segments | Regulated Transmission | Wholesale sales        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 0 0 0 0
Operating Segments | Regulated Transmission | Transmission        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 411 380 812 777
Operating Segments | Regulated Transmission | Other        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 0 0 0 0
Operating Segments | Regulated Transmission | ARP        
Disaggregation of Revenue [Line Items]        
Total revenues 0 0 0 0
Operating Segments | Regulated Transmission | Other non-customer revenue        
Disaggregation of Revenue [Line Items]        
Total revenues 8 4 12 8
Corporate/Other and Reconciling Adjustments        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers (36) (35) (70) (70)
Total revenues (55) (50) (104) (100)
Corporate/Other and Reconciling Adjustments | Distribution services        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers (26) (22) (52) (43)
Corporate/Other and Reconciling Adjustments | Retail generation        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers (13) (15) (25) (30)
Corporate/Other and Reconciling Adjustments | Wholesale sales        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 3 2 7 3
Corporate/Other and Reconciling Adjustments | Transmission        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 0 0 0 0
Corporate/Other and Reconciling Adjustments | Other        
Disaggregation of Revenue [Line Items]        
Total revenues from contracts with customers 0 0 0 0
Corporate/Other and Reconciling Adjustments | ARP        
Disaggregation of Revenue [Line Items]        
Total revenues 0 0 0 0
Corporate/Other and Reconciling Adjustments | Other non-customer revenue        
Disaggregation of Revenue [Line Items]        
Total revenues $ (19) $ (15) $ (34) $ (30)
[1] Includes excise and gross receipts tax collections of $85 million and $84 million during the three months ended June 30, 2021 and 2020, respectively, and $180 million and $176 million during the six months ended June 30, 2021 and 2020, respectively.
v3.21.2
Discontinued Operations - Narrative (Details) - USD ($)
$ in Millions
 6 Months Ended
Feb. 27, 2020
Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Worthless stock deduction $ 4,900  
Unrecognized tax benefits from worthless stock deduction 316  
Worthless stock deduction, net of tax 1,100  
Unrecognized tax benefits from worthless stock deduction, net of tax 68  
Discontinued Operations, Disposed of by Means Other than Sale | FES and FENOC    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Cash flows from operating activities, discontinued operations   $ 52
FES Key Creditor Groups | Affiliated Companies | FES    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Settlement of claims upon emergence 853  
IT Access Agreement | Affiliated Companies | FES    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Settlement of claims upon emergence 125  
State and Local Jurisdiction    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Worthless stock deduction, net of tax $ 19  
v3.21.2
Discontinued Operations - Summarized Results (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Income tax expense   $ 1   $ (35)
Income from discontinued operations, net of tax     $ 0 52
Income from discontinued operations [1] $ 0 2 0 52
FES and FENOC | Discontinued Operations, Disposed of by Means Other than Sale        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Revenues 0 0 0 7
Fuel 0 0 0 (6)
Other operating expenses 0 0 0 (6)
Other income 0 0 0 5
Income from discontinued operations, before tax 0 0 0 0
Income tax expense 0 0 0 0
Income from discontinued operations, net of tax 0 0 0 0
Settlement consideration 0 3 0 (1)
Accelerated net pension and OPEB prior service credits 0 0 0 18
Gain on disposal of FES and FENOC, before tax 0 3 0 17
Income taxes (benefits), including worthless stock deduction 0 1 (35)
Gain on disposal of FES and FENOC, net of tax 0 2 0 52
Income from discontinued operations $ 0 $ 2 $ 0 $ 52
[1] Net of income tax expense (benefits) of $1 million and $(35) million for the three and six months ended June 30, 2020, respectively.
v3.21.2
Earnings Per Share Of Common Stock (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
EPS of Common Stock        
Income from continuing operations $ 58 $ 307 $ 393 $ 331
Discontinued operations, net of tax [1] 0 2 0 52
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 58 $ 309 $ 393 $ 383
Share count information:        
Weighted average number of basic shares outstanding (in shares) 544,000 542,000 544,000 541,000
Assumed exercise of dilutive stock options and awards (in shares) 1,000 1,000 1,000 2,000
Weighted average number of diluted shares outstanding 545,000 543,000 545,000 543,000
Income available to common stockholders, per common share:        
Income from continuing operations, basic (in dollars per share) $ 0.11 $ 0.57 $ 0.72 $ 0.61
Discontinued operations, basic (in dollars per share) 0 0 0 0.10
Basic - Net Income Attributable to Common Stockholders (in dollars per share) 0.11 0.57 0.72 0.71
Income from continuing operations, diluted (in dollars per share) 0.11 0.57 0.72 0.61
Discontinued operations, diluted (in dollars per share) 0 0 0 0.10
Diluted - Net Income Attributable to Common Stockholders (in dollars per share) $ 0.11 $ 0.57 $ 0.72 $ 0.71
Stock Options        
Income available to common stockholders, per common share:        
Shares excluded from the calculation of diluted shares outstanding, in shares 0 0 0 0
[1] Net of income tax expense (benefits) of $1 million and $(35) million for the three and six months ended June 30, 2020, respectively.
v3.21.2
Pension and Other Post-Employment Benefits (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 11, 2021
Jun. 30, 2021
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2021
Jun. 30, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]            
Pension and OPEB prior service costs amortized out of AOCI   $ 1 $ 1   $ 2 $ 6
Mark-to-market adjustment       $ 423    
Pension            
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]            
Service costs   48 48   97 100
Interest costs   57 70   113 145
Expected return on plan assets   (163) (155)   (326) (308)
Amortization of prior service costs (credits)   1 1   2 11
One-time termination benefit         0 8
Pension and OPEB mark-to-market adjustment         0 386
Net periodic credits, including amounts capitalized   (57) (36)   (114) 342
Net periodic credits, recognized in earnings   (85) (62)   (163) 296
Net accelerated credits       $ 18    
Estimated return 7.50%          
OPEB            
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]            
Service costs   1 1   2 2
Interest costs   2 4   5 8
Expected return on plan assets   (7) (8)   (17) (16)
Amortization of prior service costs (credits)   (5) (5)   (9) (38)
One-time termination benefit         0 0
Pension and OPEB mark-to-market adjustment         0 37
Net periodic credits, including amounts capitalized   (9) (8)   (19) (7)
Net periodic credits, recognized in earnings   $ (10) $ (8)   $ (20) $ (7)
v3.21.2
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Tax Examination [Line Items]          
Effective tax rate (percent) 62.30% 17.70%   31.80% 1.80%
Benefits from accelerated amortization of certain investment tax credits   $ 10      
Change in amount of valuation allowance     $ 52    
Unrecognized tax benefits period increase (decrease) $ (7)     $ 4  
Unrecognized tax benefits, portion expected to be resolved in the next fiscal year 55     55  
Unrecognized tax benefits that would impact effective tax rate 53     $ 53  
State and Local Jurisdiction | West Virginia          
Income Tax Examination [Line Items]          
Change in enacted tax rate $ 9        
v3.21.2
Fair Value Measurements - Recurring Assets and Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Liabilities    
Investment excludes receivables, payables and accrued income   $ 1
Recurring    
Assets    
Fair value, assets $ 1,633 2,123
Liabilities    
Fair value, liabilities (2) 0
Net assets (liabilities) 1,631 2,123
Recurring | FTRs | Derivative Liabilities    
Liabilities    
Fair value, liabilities (2) 0
Recurring | FTRs | Derivative Assets    
Assets    
Fair value, assets 5 3
Recurring | Equity securities    
Assets    
Fair value, assets 2 2
Recurring | U.S. state debt securities    
Assets    
Fair value, assets 269 276
Recurring | Cash, cash equivalents and restricted cash    
Assets    
Fair value, assets 1,312 1,801
Recurring | Other    
Assets    
Fair value, assets 45 41
Recurring | Level 1    
Assets    
Fair value, assets 1,314 1,803
Liabilities    
Fair value, liabilities 0 0
Net assets (liabilities) 1,314 1,803
Recurring | Level 1 | FTRs | Derivative Liabilities    
Liabilities    
Fair value, liabilities 0 0
Recurring | Level 1 | FTRs | Derivative Assets    
Assets    
Fair value, assets 0 0
Recurring | Level 1 | Equity securities    
Assets    
Fair value, assets 2 2
Recurring | Level 1 | U.S. state debt securities    
Assets    
Fair value, assets 0 0
Recurring | Level 1 | Cash, cash equivalents and restricted cash    
Assets    
Fair value, assets 1,312 1,801
Recurring | Level 1 | Other    
Assets    
Fair value, assets 0 0
Recurring | Level 2    
Assets    
Fair value, assets 314 317
Liabilities    
Fair value, liabilities 0 0
Net assets (liabilities) 314 317
Recurring | Level 2 | FTRs | Derivative Liabilities    
Liabilities    
Fair value, liabilities 0 0
Recurring | Level 2 | FTRs | Derivative Assets    
Assets    
Fair value, assets 0 0
Recurring | Level 2 | Equity securities    
Assets    
Fair value, assets 0 0
Recurring | Level 2 | U.S. state debt securities    
Assets    
Fair value, assets 269 276
Recurring | Level 2 | Cash, cash equivalents and restricted cash    
Assets    
Fair value, assets 0 0
Recurring | Level 2 | Other    
Assets    
Fair value, assets 45 41
Recurring | Level 3    
Assets    
Fair value, assets 5 3
Liabilities    
Fair value, liabilities (2) 0
Net assets (liabilities) 3 3
Recurring | Level 3 | FTRs | Derivative Liabilities    
Liabilities    
Fair value, liabilities (2) 0
Recurring | Level 3 | FTRs | Derivative Assets    
Assets    
Fair value, assets 5 3
Recurring | Level 3 | Equity securities    
Assets    
Fair value, assets 0 0
Recurring | Level 3 | U.S. state debt securities    
Assets    
Fair value, assets 0 0
Recurring | Level 3 | Cash, cash equivalents and restricted cash    
Assets    
Fair value, assets 0 0
Recurring | Level 3 | Other    
Assets    
Fair value, assets $ 0 $ 0
v3.21.2
Fair Value Measurements - Level 3 Quantitative Information (Details) - Model - Level 3 - FTRs
$ in Millions
 6 Months Ended
Jun. 30, 2021
USD ($)
$ / MWh
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]  
Fair Value | $ $ 3
Minimum  
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]  
Fair Value Inputs, RTO Auction Clearing Prices (in $/MWH) (0.10)
Maximum  
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]  
Fair Value Inputs, RTO Auction Clearing Prices (in $/MWH) 1.90
Weighted Average  
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]  
Fair Value Inputs, RTO Auction Clearing Prices (in $/MWH) 0.90
v3.21.2
Fair Value Measurements - Investments Held in Trusts (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Short-term cash investments $ 15 $ 9
Debt securities    
Debt Securities, Available-for-sale [Line Items]    
Cost Basis 272 275
Unrealized Gains 4 7
Unrealized Losses (7) (6)
Fair Value $ 269 $ 276
v3.21.2
Fair Value Measurements - Proceeds from the Sale of Investments (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Proceeds from the sale of investments in available-for-sale securities, realized gains and losses on those sales, and interest and dividend income        
Sale proceeds $ 8 $ 26 $ 13 $ 39
Realized gains 0 0 0 4
Realized Losses (1) (2) (1) (7)
Interest and dividend income $ 2 $ 9 $ 5 $ 14
v3.21.2
Fair Value Measurements - Carrying Amounts of Long-term Debt (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Fair value and related carrying amounts of long-term debt and other long-term obligations      
Debt issuances $ 1,500 $ 3,175  
Debt redemptions 33 $ 1,082  
Carrying Value      
Fair value and related carrying amounts of long-term debt and other long-term obligations      
Long-term debt and other long-term obligations 23,844   $ 22,377
Fair Value      
Fair value and related carrying amounts of long-term debt and other long-term obligations      
Long-term debt and other long-term obligations $ 26,802   $ 25,465
v3.21.2
Fair Value Measurements - Schedule of Long Term Debt (Details)
Jun. 30, 2021
USD ($)
FET | Promissory Notes | 2.866%, 500 Million Notes Maturing 2028  
Debt Instrument [Line Items]  
Face amount of debt $ 500,000,000
Interest Rate 2.866%
MP | Promissory Notes | 3.55%, 200 Million Notes Maturing 2027  
Debt Instrument [Line Items]  
Face amount of debt $ 200,000,000
Interest Rate 3.55%
TE | Promissory Notes | 2.65%, 150 Million Notes Maturing 2028  
Debt Instrument [Line Items]  
Face amount of debt $ 150,000,000
Interest Rate 2.65%
MAIT | Promissory Notes | 4.10%, 150 Million Notes Maturing 2028  
Debt Instrument [Line Items]  
Face amount of debt $ 150,000,000
Interest Rate 4.10%
JCP&L | Promissory Notes | 2.75%, 500 Million Notes Maturing 2032  
Debt Instrument [Line Items]  
Face amount of debt $ 500,000,000
Interest Rate 2.75%
JCP&L | Line of Credit | Revolving Credit Facility  
Debt Instrument [Line Items]  
Amount outstanding $ 450,000,000
v3.21.2
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Fair Value of Financial Instruments [Line Items]    
Investments not required to be disclosed $ 338 $ 322
NUG contracts    
Fair Value of Financial Instruments [Line Items]    
Period of future observable data to determine contract price 2 years  
v3.21.2
Regulatory Matters - Maryland and New Jersey (Details)
meter in Millions, $ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Nov. 01, 2021
Jun. 16, 2021
USD ($)
May 26, 2021
USD ($)
Apr. 23, 2021
USD ($)
Mar. 05, 2021
USD ($)
Mar. 01, 2021
USD ($)
program
Jan. 29, 2021
USD ($)
Jan. 01, 2021
USD ($)
Dec. 18, 2020
USD ($)
Oct. 28, 2020
USD ($)
Sep. 25, 2020
USD ($)
program
Aug. 27, 2020
USD ($)
meter
Jun. 10, 2020
Apr. 06, 2020
USD ($)
MW
Mar. 22, 2019
USD ($)
program
Jun. 30, 2021
USD ($)
MW
Jun. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
MW
Jun. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Regulatory Matters [Line Items]                                        
Gain on sale of Yards Creek (Note 8)                               $ 0.0 $ 0.0 $ 109.0 $ 0.0  
Regulated Distribution                                        
Regulatory Matters [Line Items]                                        
Plant capacity (in MW's) | MW                               3,580   3,580    
PE | Maryland                                        
Regulatory Matters [Line Items]                                        
Incremental energy savings goal per year (percent)                                   0.20%    
Incremental energy savings goal thereafter (percent)                                   2.00%    
Recovery period for expenditures for cost recovery program                 3 years                 3 years    
Expenditures for cost recovery program                                   $ 116.0    
Amortization period                                   5 years    
Amount of requested rate increase (decrease)                 $ 148.0                      
PE | MPSC | Maryland                                        
Regulatory Matters [Line Items]                                        
Amount of approved annual rate increase                             $ 6.2          
Number of enhanced service reliability programs | program                             3          
Enhanced service reliability program term                             4 years          
Period to file new depreciation study                             18 months          
Enhanced service reliability program renewal period                             4 years          
Distribution reporting of COVID relief funds   $ 4.0                                    
PE | MPSC | Depreciation Expense Study | Maryland                                        
Regulatory Matters [Line Items]                                        
Amount of requested rate increase (decrease)             $ (9.6)                          
PE | Maryland Office of People's Counsel | Depreciation Expense Study | Maryland                                        
Regulatory Matters [Line Items]                                        
Amount of requested rate increase (decrease)             $ (10.8)                          
Approved amount of annual increase     $ (2.1)                                  
JCP&L | New Jersey | Yard's Creek Energy                                        
Regulatory Matters [Line Items]                                        
Plant capacity (in MW's) | MW                           210            
Purchase price                           $ 155.0            
JCP&L | New Jersey | Regulated Distribution | Yard's Creek Energy                                        
Regulatory Matters [Line Items]                                        
Book value                                       $ 45.0
Gain on sale of Yards Creek (Note 8)         $ 109.0                              
JCP&L | Advanced Metering Infrastructure | New Jersey | Regulated Distribution                                        
Regulatory Matters [Line Items]                                        
Amount of requested rate increase (decrease)                       $ 732.0                
JCP&L | NJBPU | New Jersey                                        
Regulatory Matters [Line Items]                                        
Amount of revenue increase                   $ 94.0                    
Decrease in regulatory liability               $ 86.0                        
JCP&L | NJBPU | New Jersey | Forecast                                        
Regulatory Matters [Line Items]                                        
Requested increase to ROE 9.60%                                      
JCP&L | NJBPU | New Jersey | Yard's Creek Energy                                        
Regulatory Matters [Line Items]                                        
Ownership interest acquired                           50.00%            
JCP&L | NJBPU | JCP&L Reliability Plus | New Jersey                                        
Regulatory Matters [Line Items]                                        
Approved amount of annual increase                                       $ 95.0
JCP&L | NJBPU | Advanced Metering Infrastructure | New Jersey | Regulated Distribution                                        
Regulatory Matters [Line Items]                                        
Meter deployment period                       3 years                
Number of meters to be deployed | meter                       1.2                
Expected cost of the program                       $ 418.0                
Time period of the program                       20 years                
JCP&L | NJBPU | Energy Efficiency and Peak Demand Reduction | New Jersey | Regulated Distribution                                        
Regulatory Matters [Line Items]                                        
Amortization period                         10 years              
Amount of requested rate increase (decrease)                     $ 230.0                  
Approved amount of annual increase       $ 203.0                                
Approved period of rate plan       3 years                                
Number of programs | program                     11                  
JCP&L | NJBPU | Electrical Vehicle Program | New Jersey | Regulated Distribution                                        
Regulatory Matters [Line Items]                                        
Amount of requested rate increase (decrease)           $ 50.0                            
Number of programs | program           6                            
Electric vehicle program period           4 years                            
Amount of requested return on capital           $ 16.0                            
Requested amount for operations and maintenance expense           $ 34.0                            
v3.21.2
Regulatory Matters - Ohio (Details) - OHIO - PUCO - USD ($)
$ in Millions
 6 Months Ended
Jun. 16, 2021
Nov. 24, 2020
Jul. 17, 2019
Jul. 15, 2019
Jun. 01, 2016
Jun. 30, 2021
Dec. 31, 2020
Regulatory Matters [Line Items]              
Proposed goal to reduce CO2 pollution (percent)         90.00%    
Energy Conservation, Economic Development and Job Retention              
Regulatory Matters [Line Items]              
Contribution amount         $ 51.0    
Distribution Modernization Rider              
Regulatory Matters [Line Items]              
Requested plan extension period   2 years          
Delivery Capital Recovery Rider              
Regulatory Matters [Line Items]              
Annual revenue cap for rider for years three through six         20.0    
Annual revenue cap for rider for years six through eight         $ 15.0    
OCC DMR Refund | The Ohio Companies              
Regulatory Matters [Line Items]              
Loss contingency, damages sought       $ 42.0      
Distribution Platform Modernization Plan              
Regulatory Matters [Line Items]              
Approved amount of annual increase (decrease)     $ (516.0)        
Period of grid modernization plan     3 years        
Decoupling Rider | The Ohio Companies              
Regulatory Matters [Line Items]              
Amount of refunds announced           $ 27.0  
Rider CSR | The Ohio Companies              
Regulatory Matters [Line Items]              
Pre-tax impairment of regulatory asset             $ 108.0
Impairment of regulatory asset, net             84.0
Lost distribution revenue             $ 77.0
Rider DCR | The Ohio Companies              
Regulatory Matters [Line Items]              
Approved amount of annual increase (decrease) $ 3.7            
v3.21.2
Regulatory Matters - Pennsylvania and West Virginia (Details)
$ in Millions
 1 Months Ended 6 Months Ended
Dec. 30, 2020
USD ($)
MW
Aug. 28, 2020
USD ($)
May 01, 2020
USD ($)
Jan. 16, 2020
USD ($)
Mar. 31, 2016
USD ($)
Jun. 30, 2021
proposal
Jun. 18, 2020
ATSI | FERC | Transmission Related Vegetation Management Programs              
Regulatory Matters [Line Items]              
Amended amount of rate increase     $ 85.0        
Pennsylvania | DSP June 2019- May 2023              
Regulatory Matters [Line Items]              
Number of RFP's | proposal           2  
RFP term           2 years  
Pennsylvania | Three month period | DSP June 2019- May 2023              
Regulatory Matters [Line Items]              
Term of energy contract           3 months  
Pennsylvania | Twelve month period | DSP June 2019- May 2023              
Regulatory Matters [Line Items]              
Term of energy contract           12 months  
Pennsylvania | Twenty-four month period | DSP June 2019- May 2023              
Regulatory Matters [Line Items]              
Term of energy contract           24 months  
Pennsylvania | Pennsylvania Companies | PPUC | EE&C Phase III              
Regulatory Matters [Line Items]              
Approved amount of annual increase         $ 390.0    
Pennsylvania | Pennsylvania Companies | PPUC | New LTIIPs              
Regulatory Matters [Line Items]              
Amount of requested rate increase (decrease)       $ 572.0      
Recovery period       5 years      
Pennsylvania | ME | PPUC | EE&C Phase IV              
Regulatory Matters [Line Items]              
Demand reduction targets             2.90%
Energy consumption reduction targets             3.10%
Pennsylvania | PN | PPUC | EE&C Phase IV              
Regulatory Matters [Line Items]              
Demand reduction targets             3.30%
Energy consumption reduction targets             3.00%
Pennsylvania | Penn | PPUC | EE&C Phase IV              
Regulatory Matters [Line Items]              
Demand reduction targets             2.00%
Energy consumption reduction targets             2.70%
Pennsylvania | WP | PPUC | EE&C Phase IV              
Regulatory Matters [Line Items]              
Demand reduction targets             2.50%
Energy consumption reduction targets             2.40%
West Virginia | MP and PE | WVPSC | ENEC              
Regulatory Matters [Line Items]              
Amount of requested rate increase (decrease)   $ (55.0)          
Amount of requested rate increase (decrease) (percent)   (4.00%)          
Recovery of deferred, incremental uncollectible and other related costs   $ 10.5          
Amount of requested rate decrease $ 2.6            
West Virginia | MP and PE | WVPSC | Modernization and Improvement Program For Coal-Fired Boilers              
Regulatory Matters [Line Items]              
Amount of requested rate increase (decrease)   $ 5.0          
West Virginia | MP and PE | WVPSC | Integrated Resource Plan              
Regulatory Matters [Line Items]              
Project period 15 years            
Capacity of plant to be constructed (in MW's) | MW 50            
v3.21.2
Commitments, Guarantees and Contingencies - Potential Collateral Obligations (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2021
USD ($)
Guarantor Obligations [Line Items]  
Guarantor obligations $ 351
Percent of face amount of debt 100.00%
Curing period 30 days
Upon Further Downgrade  
Guarantor Obligations [Line Items]  
Guarantor obligations $ 37
Surety Bond (Collateralized Amount)  
Guarantor Obligations [Line Items]  
Guarantor obligations $ 314
Percent of face amount of debt 60.00%
Capped portion of surety bond obligations $ 39
Utilities and FET  
Guarantor Obligations [Line Items]  
Guarantor obligations 93
Utilities and FET | Upon Further Downgrade  
Guarantor Obligations [Line Items]  
Guarantor obligations 37
Utilities and FET | Surety Bond (Collateralized Amount)  
Guarantor Obligations [Line Items]  
Guarantor obligations 56
FirstEnergy  
Guarantor Obligations [Line Items]  
Guarantor obligations 258
FirstEnergy | Upon Further Downgrade  
Guarantor Obligations [Line Items]  
Guarantor obligations 0
FirstEnergy | Surety Bond (Collateralized Amount)  
Guarantor Obligations [Line Items]  
Guarantor obligations $ 258
v3.21.2
Commitments, Guarantees and Contingencies - Narrative (Details)
T in Millions
 6 Months Ended 12 Months Ended
Jul. 21, 2021
USD ($)
Feb. 20, 2018
USD ($)
Jun. 30, 2021
USD ($)
phase
T
Dec. 31, 2019
USD ($)
Guarantor Obligations [Line Items]        
Outstanding guarantees and other assurances aggregated     $ 1,200,000,000  
Company posted collateral related to net liability positions     33,000,000  
Collateral posted due to credit rating downgrade     $ 32,000,000  
Goal to reduce in GHG emissions     30.00%  
Amount of code of conduct payment       $ 4,000,000
Regulation of Waste Disposal        
Guarantor Obligations [Line Items]        
Accrual for environmental loss contingencies     $ 101,000,000  
Environmental liabilities former gas facilities     $ 67,000,000  
National Ambient Air Quality Standards        
Guarantor Obligations [Line Items]        
Capping of SO2 Emissions Under CSAPR | T     2.4  
Capping of NOx emissions under CSAPR | T     1.2  
National Ambient Air Quality Standards | CSAPR        
Guarantor Obligations [Line Items]        
Number of phases under the EPA’s CAIR for reductions of Sulfur Dioxide and Mono-Nitrogen Oxides | phase     2  
Global Holding | Senior Secured Term Loan | Senior Loans | Signal Peak, Global Rail and Affiliates        
Guarantor Obligations [Line Items]        
Investment ownership percentage     69.99%  
FEV | Senior Secured Term Loan | Senior Loans | Signal Peak | Global Holding        
Guarantor Obligations [Line Items]        
Investment ownership percentage     33.33%  
WMB Marketing Ventures, LLC | Senior Secured Term Loan | Senior Loans | Signal Peak | Global Holding        
Guarantor Obligations [Line Items]        
Investment ownership percentage     33.33%  
FE        
Guarantor Obligations [Line Items]        
Outstanding guarantees and other assurances aggregated     $ 600,000,000  
Other Guarantee        
Guarantor Obligations [Line Items]        
Outstanding guarantees and other assurances aggregated     108,000,000  
Other Assurances        
Guarantor Obligations [Line Items]        
Outstanding guarantees and other assurances aggregated     500,000,000  
Term Loan Facility due November 2024 | Line of Credit | Global Holding        
Guarantor Obligations [Line Items]        
Face amount of debt     $ 120,000,000  
EPA | Clean Water Act        
Guarantor Obligations [Line Items]        
Amount awarded to other party   $ 610,000    
Term of payments   2 years    
U.S. Attorney's Office | United States v. Householder, et al. | Subsequent Event        
Guarantor Obligations [Line Items]        
Term of payments 60 days      
Term of DPA 3 years      
Loss in period $ 230,000,000      
United States Treasury | United States v. Householder, et al. | Subsequent Event        
Guarantor Obligations [Line Items]        
Amount awarded to other party 115,000,000      
Ohio Development Service | United States v. Householder, et al. | Subsequent Event        
Guarantor Obligations [Line Items]        
Amount awarded to other party $ 115,000,000      
v3.21.2
Segment Information - Narrative (Details)
mi² in Thousands, customer in Millions, $ in Millions
 6 Months Ended
Jun. 30, 2021
USD ($)
mi²
customer
company
MW
Dec. 31, 2020
USD ($)
Regulated Distribution    
Segment Reporting Information [Line Items]    
Number of existing utility operating companies | company 10  
Number of customers served by utility operating companies | customer 6  
Number of square miles in service area | mi² 65  
Megawatts of net demonstrated capacity of competitive segment | MW 3,580  
Other/Corporate | OVEC    
Segment Reporting Information [Line Items]    
Megawatts of net demonstrated capacity of competitive segment | MW 67  
FirstEnergy | Other/Corporate    
Segment Reporting Information [Line Items]    
Long-term debt and other long-term obligations | $ $ 7,900  
Held-for-sale | Yard Creek Generating Facility | Regulated Distribution    
Segment Reporting Information [Line Items]    
Investments - held for sale | $   $ 45
v3.21.2
Segment Information - Financial Data (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Segment Financial Information          
Revenues [1] $ 2,622 $ 2,522 $ 5,348 $ 5,231  
Depreciation 323 321 646 638  
Amortization of regulatory assets, net 49 13 141 65  
DPA penalty (Note 9) 230 0 230 0  
Miscellaneous income (expense), net 108 103 243 203  
Interest expense 287 263 572 526  
Income taxes (benefits) 96 66 183 6  
Income (loss) from continuing operations 58 307 393 331  
Property additions 622 676 1,226 1,292  
Total assets 44,363   44,363   $ 44,464
Goodwill 5,618   5,618   5,618
External Customers          
Segment Financial Information          
Revenues 2,622 2,522 5,348 5,231  
Internal Customers          
Segment Financial Information          
Revenues 0 0 0 0  
Regulated Distribution          
Segment Financial Information          
Revenues 2,135 2,067 4,409 4,227  
Regulated Transmission          
Segment Financial Information          
Revenues 411 380 812 777  
Operating Segments | Regulated Distribution          
Segment Financial Information          
Revenues 2,258 2,188 4,628 4,546  
Depreciation 229 226 455 449  
Amortization of regulatory assets, net 43 10 130 59  
DPA penalty (Note 9) 0   0    
Miscellaneous income (expense), net 88 90 195 165  
Interest expense 131 123 259 250  
Income taxes (benefits) 71 67 153 35  
Income (loss) from continuing operations 274 251 587 387  
Property additions 346 386 667 724  
Total assets 30,943   30,943   30,855
Goodwill 5,004   5,004   5,004
Operating Segments | Regulated Distribution | External Customers          
Segment Financial Information          
Revenues 2,208 2,140 4,529 4,451  
Operating Segments | Regulated Distribution | Internal Customers          
Segment Financial Information          
Revenues 50 48 99 95  
Operating Segments | Regulated Transmission          
Segment Financial Information          
Revenues 419 384 824 785  
Depreciation 77 78 158 154  
Amortization of regulatory assets, net 6 3 11 6  
DPA penalty (Note 9) 0   0    
Miscellaneous income (expense), net 11 8 22 14  
Interest expense 63 55 124 107  
Income taxes (benefits) 37 34 70 68  
Income (loss) from continuing operations 116 114 225 231  
Property additions 257 270 530 539  
Total assets 12,779   12,779   12,592
Goodwill 614   614   614
Operating Segments | Regulated Transmission | External Customers          
Segment Financial Information          
Revenues 411 380 812 777  
Operating Segments | Regulated Transmission | Internal Customers          
Segment Financial Information          
Revenues 8 4 12 8  
Corporate/Other          
Segment Financial Information          
Revenues 3 2 7 3  
Depreciation 1 0 2 2  
Amortization of regulatory assets, net 0 0 0 0  
DPA penalty (Note 9) 230   230    
Miscellaneous income (expense), net 14 7 36 32  
Interest expense 98 87 199 177  
Income taxes (benefits) (12) (35) (40) (97)  
Income (loss) from continuing operations (332) (58) (419) (287)  
Property additions 19 20 29 29  
Total assets 641   641   1,017
Goodwill 0   0   0
Corporate/Other | External Customers          
Segment Financial Information          
Revenues 3 2 7 3  
Corporate/Other | Internal Customers          
Segment Financial Information          
Revenues 0 0 0 0  
Reconciling Adjustments          
Segment Financial Information          
Revenues (58) (52) (111) (103)  
Depreciation 16 17 31 33  
Amortization of regulatory assets, net 0 0 0 0  
DPA penalty (Note 9) 0   0    
Miscellaneous income (expense), net (5) (2) (10) (8)  
Interest expense (5) (2) (10) (8)  
Income taxes (benefits) 0 0 0 0  
Income (loss) from continuing operations 0 0 0 0  
Property additions 0 0 0 0  
Total assets 0   0   0
Goodwill 0   0   $ 0
Reconciling Adjustments | External Customers          
Segment Financial Information          
Revenues 0 0 0 0  
Reconciling Adjustments | Internal Customers          
Segment Financial Information          
Revenues $ (58) $ (52) $ (111) $ (103)  
[1] Includes excise and gross receipts tax collections of $85 million and $84 million during the three months ended June 30, 2021 and 2020, respectively, and $180 million and $176 million during the six months ended June 30, 2021 and 2020, respectively.