FIRSTENERGY TRANSMISSION, LLC, 10-Q filed on 5/7/2025
Quarterly Report
v3.25.1
Cover Page
shares in Thousands
 3 Months Ended
Mar. 31, 2025
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Mar. 31, 2025
Document Transition Report false
Entity File Number 333-282554
Entity Registrant Name FIRSTENERGY TRANSMISSION, LLC
Entity Tax Identification Number 20-5763884
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 5001 NASA Boulevard
Entity Address, City or Town Fairmont
Entity Address, State or Province WV
Entity Address, Postal Zip Code 26554
City Area Code (800)
Local Phone Number 736-3402
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Non-accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock Shares Outstanding 0
Entity Central Index Key 0002038118
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2025
Document Fiscal Period Focus Q1
Amendment Flag false
v3.25.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
REVENUES:    
Total revenues $ 468 $ 418
OPERATING EXPENSES:    
Other operating expenses [1] 91 72
Provision for depreciation 87 77
Amortization of regulatory assets, net 1 1
General taxes 73 69
Total operating expenses 252 219
OPERATING INCOME 216 199
OTHER INCOME (EXPENSE):    
Miscellaneous income (expense), net 2 (2)
Capitalized financing costs 16 12
Total other expense (51) (52)
INCOME BEFORE INCOME TAXES 165 147
INCOME TAXES 37 57
NET INCOME 128 90
Income attributable to noncontrolling interest 19 18
EARNINGS ATTRIBUTABLE TO FIRSTENERGY TRANSMISSION, LLC 109 72
Non-affiliates    
REVENUES:    
Total revenues 464 414
OTHER INCOME (EXPENSE):    
Interest expense (70) (58)
Affiliates    
REVENUES:    
Total revenues 4 4
OPERATING EXPENSES:    
Other operating expenses 104 92
OTHER INCOME (EXPENSE):    
Interest income from affiliates 2 1
Interest expense $ (1) $ (5)
[1] $104 million and $92 million, respectively, of affiliated operating expenses were incurred, a portion of which is capitalized.
v3.25.1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Other operating expenses [1] $ 91 $ 72
Affiliates    
Other operating expenses $ 104 $ 92
[1] $104 million and $92 million, respectively, of affiliated operating expenses were incurred, a portion of which is capitalized.
v3.25.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
CURRENT ASSETS:    
Cash and cash equivalents $ 7 $ 8
Receivables-    
Notes receivable from affiliated companies 208 197
Prepaid taxes and other 21 22
Total current assets 335 344
PROPERTY, PLANT AND EQUIPMENT:    
In service 12,995 12,894
Less — Accumulated provision for depreciation 2,661 2,596
Property, plant and equipment in service net of accumulated provision for depreciation 10,334 10,298
Construction work in progress 1,082 914
Total property, plant and equipment 11,416 11,212
INVESTMENTS AND OTHER NONCURRENT ASSETS:    
Goodwill 224 224
Investments 19 19
Regulatory assets 24 18
Property taxes 210 289
Operating lease right-of-use asset [1] 412 412
Other 50 47
Total investments and other noncurrent assets 939 1,009
TOTAL ASSETS 12,690 12,565
CURRENT LIABILITIES:    
Currently payable long-term debt 625 625
Accounts payable - Affiliated companies 153 142
Accrued taxes 314 306
Accrued interest 70 68
Other 15 15
Total current liabilities 1,609 1,458
NONCURRENT LIABILITIES:    
Long-term debt and other long-term obligations 5,240 5,239
Accumulated deferred income taxes 1,436 1,412
Property taxes 140 289
Regulatory liabilities 463 442
Noncurrent operating lease obligation [2] 405 406
Other 9 9
Total noncurrent liabilities 7,693 7,797
TOTAL LIABILITIES 9,302 9,255
MEMBERS' EQUITY:    
Members' equity 2,250 2,250
Retained earnings 345 286
Total members' equity 2,595 2,536
Noncontrolling interest 793 774
TOTAL EQUITY 3,388 3,310
COMMITMENTS, GUARANTEES AND CONTINGENCIES (NOTE 7)
TOTAL LIABILITIES AND EQUITY 12,690 12,565
Affiliates    
Receivables-    
Affiliated companies 2 23
CURRENT LIABILITIES:    
Short-term borrowings- 47 2
Non-affiliates    
Receivables-    
Affiliated companies 97 94
CURRENT LIABILITIES:    
Short-term borrowings- $ 385 $ 300
[1] Includes $409 million as of March 31, 2025 and $410 million as of December 31, 2024 associated with affiliated leases.
[2] Includes $404 million as of March 31, 2025 and December 31, 2024 associated with affiliated leases.
v3.25.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Operating lease right-of-use asset [1] $ 412 $ 412
Noncurrent operating lease obligation [2] 405 406
Affiliated companies    
Operating lease right-of-use asset 409 410
Noncurrent operating lease obligation $ 404 $ 404
[1] Includes $409 million as of March 31, 2025 and $410 million as of December 31, 2024 associated with affiliated leases.
[2] Includes $404 million as of March 31, 2025 and December 31, 2024 associated with affiliated leases.
v3.25.1
CONSOLIDATED STATEMENTS OF MEMBERS' EQUITY - USD ($)
$ in Millions
Total
Total Members' Equity
Members' Equity
Retained Earnings
Noncontrolling Interest
Beginning balance at Dec. 31, 2023 $ 3,175 $ 2,409 $ 2,250 $ 159 $ 766
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 90 72   72 18
Cash distribution declared (45) (45)   (45)  
Ending balance at Mar. 31, 2024 3,220 2,436 2,250 186 784
Beginning balance at Dec. 31, 2024 3,310 2,536 2,250 286 774
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 128 109   109 19
Cash distribution declared (50) (50)   (50)  
Ending balance at Mar. 31, 2025 $ 3,388 $ 2,595 $ 2,250 $ 345 $ 793
v3.25.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 128 $ 90
Adjustments to reconcile net income to net cash from operating activities-    
Depreciation, amortization and impairments 88 76
Deferred income taxes and investment tax credits, net 19 66
Allowance for equity funds used during construction (12) (8)
Transmission revenue collections, net 29 40
Changes in current assets and liabilities-    
Receivables 18 (35)
Prepaid taxes and other current assets 1 (3)
Accounts payable 32 (22)
Accrued taxes (62) (53)
Accrued interest 2 (1)
Other current liabilities 0 (6)
Other 0 4
Net cash provided from operating activities 243 148
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital investments (287) (236)
Loans with affiliated companies, net (11) (44)
Asset removal costs (24) (23)
Other (1) 0
Net cash used for investing activities (323) (303)
New financing-    
Long-term debt 0 150
Short-term borrowings, net 130 307
Redemptions and repayments-    
Short-term borrowings - affiliated companies, net 0 (255)
Distribution payments (50) (45)
Other (1) (1)
Net cash provided from financing activities 79 156
Net change in cash and cash equivalents (1) 1
Cash and cash equivalents, at beginning of period 8 76
Cash and cash equivalents, at end of period 7 77
Significant non-cash transactions:    
Accrued capital investments $ 108 $ 90
v3.25.1
ORGANIZATION AND BASIS OF PRESENTATION
 3 Months Ended
Mar. 31, 2025
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.

FET, a consolidated VIE of FE, is the parent of the FET Subsidiaries and PATH. In March 2024, PATH completed the process of terminating all of its FERC-jurisdictional rates and facilities, with the result that PATH no longer is a “public utility” or subject to FERC jurisdiction. FET and its non-affiliated joint venture partner are completing the process of terminating the PATH corporate entities. Through its subsidiaries, FET owns high-voltage transmission facilities in PJM, which consist of 12,520 circuit miles of transmission lines with nominal voltages of 500 kV, 345 kV, 230 kV, 138 kV, 115 kV, 69 kV and 46 kV in Ohio, Pennsylvania, West Virginia, Maryland and Virginia. FET plans, operates, and maintains its transmission system in accordance with NERC reliability standards and other applicable regulatory requirements. In addition, FET and its subsidiaries comply with the regulations, orders, policies and practices prescribed by FERC and the PUCO, PPUC, WVPSC, MDPSC and VSCC.

As of March 25, 2024, FET owns 100% of MAIT’s equity interests (Class A and Class B). FET presents FE’s ownership of FET’s special purpose membership interest net assets and net income as NCI. NCI is included as a component of equity on FET’s Consolidated Balance Sheets. So long as FE holds the FET special purpose membership interests, it will receive 100% of any Class B distributions made by MAIT.
On May 31, 2022, Brookfield acquired 19.9% of the issued and outstanding membership interests of FET. On March 25, 2024, Brookfield acquired an additional incremental 30% equity interest in FET. As a result of the closing of the transaction, Brookfield’s interest in FET increased from 19.9% to 49.9%, while FE retained the remaining 50.1% ownership interests of FET. FET continues to be consolidated in FirstEnergy’s financial statements. Pursuant to the terms of the FET P&SA II, in connection with the closing, Brookfield, FET and FE entered into the A&R FET LLC Agreement, which amended and restated in its entirety the Third Amended and Restated Limited Liability Company Agreement of FET. The A&R FET LLC Agreement, among other things, provides for the governance, exit, capital and distribution, and other arrangements for FET from and following the closing. Under the A&R FET LLC Agreement, as of the closing, the FET Board consists of five directors, two of whom are appointed by Brookfield and three of whom are appointed by FE.

FET and its subsidiaries follow GAAP and comply with the related regulations, orders, policies and practices prescribed by FERC and the PUCO, PPUC, WVPSC, MDPSC and VSCC. The accompanying interim financial statements as of March 31, 2025, and the three months ended March 31, 2025 and 2024 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 December 31, 2024 Consolidated Balance Sheets were derived from audited 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.

FET and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. 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, 2024.

FET 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. FET and its subsidiaries consolidate a VIE (MAIT) when it is determined to be a primary beneficiary. Investments in affiliates over which FET 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 FET's ownership share of the entity’s earnings is reported in the Consolidated Statements of Income.

Economic Conditions

While supply lead times have not fully returned to pre-pandemic levels, FET and its subsidiaries continue to monitor the situation in light of demand increases across the industry, including due to data center usage, and uncertainty around the imposition of tariffs by the U.S. government and retaliatory tariffs that have been, and may be, imposed in response. FET and its subsidiaries continue to implement mitigation strategies to address supply constraints and do not expect any corresponding service disruptions or any material impact on its capital investment plan. However, the situation remains fluid and a prolonged continuation or further increase in demand, or the continuation of uncertain or adverse macroeconomic conditions, including inflationary pressures and new or increased existing tariffs, could lead to an increase in supply chain disruptions that could, in turn, have an adverse effect on FET’s consolidated results of operations, cash flow and financial condition.
The U.S. presidential administration has announced the imposition of widespread and substantial tariffs on imports, with additional tariffs to potentially be adopted in the future. The imposition of these or any other new or increased tariffs or resultant trade wars could have an adverse effect on FET’s consolidated results of operations, cash flow and financial condition.
Capitalized Financing Costs

For the three months ended March 31, 2025 and 2024, capitalized financing costs on FET’s Consolidated Statements of Income include $12 million and $8 million, respectively, of allowance for equity funds used during construction and $4 million and $4 million, respectively, of capitalized interest.
Investments

Valley Link - On November 25, 2024, FET, Dominion High Voltage MidAtlantic, Inc., an affiliate of VEPCO, and Transource Energy, LLC, formed Valley Link, which is the holding company responsible for managing and executing any projects awarded by PJM, and entered into a limited liability agreement. On February 21, 2025, FET, Dominion HV and Transource entered into the Valley Link LLCA, which amended and restated a provisional operating agreement among the members entered into in November 2024. The Valley Link LLCA establishes the general framework for managing Valley Link, which was formed by FET, Dominion HV, and Transource to accept, design, develop, construct, own, operate and finance the transmission projects awarded by PJM to Valley Link on February 26, 2025, in response to the PJM 2024 Regional Transmission Expansion Plan Long-Term Proposal Window #1. This general framework includes the relationship among the members, confers governance rights to its members so long as certain ownership percentages are maintained, as described below, and defines the list of projects that Valley Link will have the right to develop. Valley Link is the owner of the Valley Link Subsidiaries, which are organized in various states. The Valley Link Subsidiaries comprise the entities that are expected to develop, construct, own, operate and maintain the transmission projects awarded by PJM. As of February 21, 2025, the relative ownership interests of the members are FET (34%), Dominion HV (30%), and Transource (36%), and Valley Link will not be consolidated with FET for financial or tax reporting purposes and expects to be accounted for under equity method accounting. As of March 31, 2025, and December 31, 2024, there were no investment balances recorded on FET’s Consolidated Balance Sheets.

On February 26, 2025, PJM awarded two electric transmission projects to Valley Link, including the construction of (i) approximately 260 miles of 765-kV transmission line and two substations between Putnam County, West Virginia and Frederick County, Maryland; (ii) approximately 155 miles of 765-kV transmission line and a substation between Campbell County, Virginia and Fauquier County, Virginia; and (iii) a new substation in Caroline County, Virginia. The total cost of these projects is estimated to be approximately $3.0 billion with FET’s estimated share will be approximately $1.020 billion.
PATH WV - PATH, a proposed transmission line from West Virginia through Virginia into Maryland, which PJM cancelled in 2012, is a series limited liability company that is comprised of multiple series, each of which has separate rights, powers and duties regarding specified property and the series profits and losses associated with such property. A subsidiary of FE owns 100% of the Allegheny Series (PATH-Allegheny) and 50% of the West Virginia Series (PATH-WV), which is a joint venture with a subsidiary of AEP. FET is not the primary beneficiary of PATH-WV, as it does not have control over the significant activities affecting the economics of PATH-WV. FET's ownership interest in PATH-WV is subject to the equity method of accounting. As of March 31, 2025 and December 31, 2024, the carrying value of the equity method investment was $17 million, which is expected to be recovered through a distribution.

In March 2024, PATH completed the process of terminating all of its FERC-jurisdictional rates and facilities, with the result that PATH no longer is a “public utility” and no longer is subject to FERC jurisdiction. FET and its non-affiliated joint venture partner are completing the process of terminating the PATH corporate entities.
Segment Information
FET has one operating segment, which is the entire entity. FET's Consolidated Statements of Income are consistent with the internal financial reports used by FET's President, its CODM. FET's CODM uses earnings attributable to FET to assess performance and considers budget versus actual results on a monthly basis when making decisions about allocating resources. FET considers Other operating expenses, Provision for depreciation, General taxes, Interest expense and Income taxes to be significant expenses. See the Consolidated Statements of Income.
New Accounting Pronouncements

Recently Issued Pronouncements - The following new authoritative accounting guidance issued by the FASB has not yet been adopted. Unless otherwise indicated, FET and its subsidiaries are currently assessing the impact such guidance may have on its financial statements and disclosures, as well as the potential to early adopt where applicable. FET and its subsidiaries have assessed other FASB issuances of new standards not described below based upon the current expectation that such new standards will not significantly impact FET and its subsidiaries’ financial reporting.

ASU 2023-09, "Income taxes (Topic 280): Improvements to Income Tax Disclosures " (Issued in December 2023): ASU 2023-09 enhances disclosures primarily related to existing rate reconciliation and income taxes paid information to help investors better
assess how a company’s operations and related tax risks and tax planning and operational opportunities affect the tax rate and prospects for future cash flows. Disclosure requirements include a tabular reconciliation using both percentages and amounts, separated out into specific categories with certain reconciling items at or above 5% of the statutory tax as well as by nature and/or jurisdiction. In addition, entities will be required to disclose income taxes paid (net of refunds received), broken out between federal, state/local and foreign, and amounts paid to an individual jurisdiction when 5% or more of the total income taxes are paid to such jurisdiction. For public companies, the guidance will be effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments within ASU 2023-09 are to be applied on a prospective basis, with retrospective application permitted.

ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)" (Issued in November 2024 and subsequently updated within ASU 2025-01): ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for public companies for the first annual reporting period beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance is permitted to be applied prospectively, and comparative disclosures are not required for reporting periods beginning before the effective date. Entities can elect to apply the new standard retrospectively to any or all prior periods presented in the financial statements.
v3.25.1
REVENUE
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
FET and its subsidiaries account for revenue 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.

The following table represents a disaggregation of revenue from contracts with regulated transmission customers for the three months ended March 31, 2025 and 2024, by transmission owner:
Revenues from Contracts with Customers by Transmission Asset OwnerFor the Three Months Ended March 31,
20252024
(In millions)
ATSI$263 $243 
TrAIL70 67 
MAIT131 104 
Total Revenue from Contracts with Customers464 414 
Other revenue unrelated to contracts with customers
4 4 
Total revenues$468 $418 
v3.25.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
FET and its subsidiaries’ interim effective income tax rates reflect the estimated annual effective income tax rates for 2025 and 2024. These tax rates are affected by estimated annual permanent items, such as AFUDC equity and other flow-through items, as well as certain discrete items. The following table reconciles the effective income tax rate to the federal income tax statutory rate for the three months ended March 31, 2025 and 2024:

For the Three Months Ended March 31,
20252024
(In millions)
Income before income taxes$165 $147 
Federal income tax expense at the 21% statutory rate$35 $31 
Increases (reductions) in tax expense resulting from:
State income taxes, net of federal tax benefit7 7 
AFUDC equity and other flow-through(3)(2)
Taxes related to the FET Equity Interest Sale, net— 23 
Excess deferred tax amortization(1)(1)
Other, net(1)(1)
Total income taxes$37 $57 
Effective income tax rate22.4 %38.8 %

In the first quarter of 2024, FET recognized an income tax charge of approximately $23 million relating to the FET Equity Interest Sale.

In May 2022, FET elected corporate status for federal income tax purposes, whereas previously it had been treated as a disregarded entity. FET and its subsidiaries' consolidated financial statements include its allocated amount of current and deferred tax expense for all years presented. FET and its subsidiaries are parties to an intercompany income tax allocation agreement with FirstEnergy that provides for the allocation of consolidated tax liabilities. For periods subsequent to the closing of the FET Equity Interest Sale, FET and its subsidiaries no longer are members of the FirstEnergy consolidated group for federal income tax purposes and, instead, will file their own consolidated federal income tax return and have their own income tax allocation agreement.

The IRA of 2022, among other things, imposes a new 15% corporate AMT based on AFSI applicable to corporations with a three-year average AFSI over $1 billion. The AMT is effective for the 2023 tax year and, if applicable, corporations must pay the greater of the regular corporate income tax or the AMT. The IRA of 2022 requires the U.S. Treasury to provide regulations and other guidance necessary to administer the AMT, including further defining allowable adjustments to determine AFSI, which directly impacts the amount of AMT to be paid. On September 12, 2024, the U.S. Treasury issued proposed regulations for the AMT for comments. FET is assessing the proposed regulations but continues to believe that it is more likely than not it will be subject to AMT, however, the completion of the U.S. Treasury’s rulemaking process and the future issuance of final regulations, as well as potential future federal tax legislation, could significantly change FET’s AMT estimates or the conclusion as to whether it is an AMT payer at all. Although FET and its subsidiaries constitute a separate federal consolidated tax group, as described above, because FET is a majority-owned subsidiary of FE, the AMT may be applicable to FET and its subsidiaries. Additionally, the regulatory treatment of the impacts of the IRA of 2022 may also be subject to regulation by FERC. Any adverse development in the IRA of 2022, including guidance from the U.S. Treasury and/or the IRS or unfavorable regulatory treatment, could negatively impact FET's or its subsidiaries' cash flows, results of operations, and financial condition.
v3.25.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
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, FET 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 net unamortized debt issuance costs, premiums and discounts as of March 31, 2025 and December 31, 2024:

March 31, 2025December 31, 2024
(In millions)
Carrying value$5,900 $5,900 
Fair value$5,616 $5,522 

The fair values of long-term debt reflects 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 FET and the FET Subsidiaries. FET and the FET Subsidiaries classified short-term borrowings and long-term debt as Level 2 in the fair value hierarchy as of March 31, 2025, and December 31, 2024.
On April 16, 2025, TrAIL issued $600 million of senior notes due 2031 at 5.00%. Proceeds are expected to be used to redeem senior notes that will be coming due in 2025 and repay short-term borrowings, as well as to fund capital investments, working capital and other corporate purposes.
v3.25.1
VARIABLE INTEREST ENTITIES
 3 Months Ended
Mar. 31, 2025
Variable Interest Entities [Abstract]  
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES
FET and its subsidiaries perform qualitative analyses based on control and economics to determine whether a variable interest classifies FET or its subsidiaries as the primary beneficiary (a controlling financial interest) of a VIE. An enterprise has a controlling financial interest if it has both power and economic control, such that an entity has: (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. FET consolidates a VIE when it is determined that it is the primary beneficiary.

At its inception, MAIT issued Class A membership interests to FET and Class B membership interests to FE PA predecessors (PN and ME). The Class A interests represent the functional equivalent of managing interests, providing FET with the power to direct the activities that most significantly impact MAIT’s performance. The Class B interests represent the functional equivalent of economic interest conveying no kick-out or participating rights over the Class A membership interests. Management concluded that MAIT is a VIE and that FET is the primary beneficiary because FET has exposure to the economics of MAIT and the power to direct the significant activities of MAIT through its ownership of the Class A membership interests. On January 1, 2024, FE PA, as successor-in-interest to PN and ME, transferred their respective Class B equity interests of MAIT to FE. FE ultimately contributed the MAIT Class B equity interests to FET in exchange for a special purpose membership interest in FET. The transfer of the Class B membership interests to FET during the first quarter of 2024 had no impact on MAIT’s classification as a VIE.
The following shows the carrying amounts and classification of the MAIT assets and liabilities included in the consolidated financial statements as of March 31, 2025, and December 31, 2024. Amounts exclude intercompany balances which were eliminated in consolidation. FET has not provided any guarantees or other credit support for the benefit of MAIT or MAIT’s creditors.

Assets
March 31, 2025
December 31, 2024
(In millions)
Receivables$31 $32 
Notes receivable from affiliated companies— 5 
Prepaid taxes and other current assets 1 2 
Total current assets 32 39 
Property, plant and equipment, net3,678 3,558 
Goodwill224 224 
Regulatory assets24 18 
Operating lease right-of-use asset1 1 
Other noncurrent assets14 14 
Total noncurrent assets 3,941 3,815 
TOTAL ASSETS$3,973 $3,854 

Liabilities
March 31, 2025
December 31, 2024
(In millions)
Short-term borrowings$45 $— 
Accounts payable91 90 
Accrued interest21 11 
Accrued taxes6 7 
Other current liabilities8 8 
Total current liabilities 171 116 
Long-term debt and other long-term obligations1,276 1,276 
Accumulated deferred income taxes380 366 
Other noncurrent liabilities 2 2 
Total noncurrent liabilities 1,658 1,644 
TOTAL LIABILITIES$1,829 $1,760 
v3.25.1
REGULATORY MATTERS
 3 Months Ended
Mar. 31, 2025
Regulated Operations [Abstract]  
REGULATORY MATTERS REGULATORY MATTERS
FERC REGULATORY MATTERS

With respect to their transmission services and rates, the FET Subsidiaries are subject to regulation by FERC. Under the FPA, FERC regulates rates for transmission of electric power, accounting and other matters. FERC regulations require the FET Subsidiaries to provide open access transmission service at FERC-approved rates, terms and conditions. Transmission facilities of the FET Subsidiaries are subject to functional control by PJM, and transmission service using the FET Subsidiaries transmission facilities is provided by PJM under the PJM Tariff.

Federally enforceable mandatory reliability standards apply to the bulk electric system and impose certain operating, record-keeping and reporting requirements on the FET Subsidiaries. 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 the FET Subsidiaries operate are located within RFC. FET actively participates in the NERC and RFC stakeholder processes, and otherwise monitors and manages its companies, including the FET Subsidiaries, in response to the ongoing development, implementation and enforcement of the reliability standards implemented and enforced by RFC.

FET and the FET Subsidiaries believe that they are in material compliance with all currently-effective and enforceable reliability standards. Nevertheless, in the course of operating its extensive electric utility systems and facilities FET and/or the FET Subsidiaries occasionally learns of isolated facts or circumstances that could be interpreted as excursions from the reliability standards. If and when such occurrences are found, FET and the FET Subsidiaries 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 FET's and/or the FET Subsidiaries' 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 FET's and/or the FET Subsidiaries' financial condition, results of operations and cash flows.

FERC Audit

FERC’s Division of Audits and Accounting initiated a nonpublic audit of FESC in February 2019. Among other matters, the audit is evaluating FirstEnergy’s compliance with certain accounting and reporting requirements under various FERC regulations. On February 4, 2022, FERC filed the final audit report for the period of January 1, 2015 through September 30, 2021, which included several findings and recommendations that FirstEnergy has accepted. The audit report included a finding and related recommendation on FirstEnergy’s methodology for allocation of certain corporate support costs to regulatory capital accounts under certain FERC regulations and reporting. Effective in the first quarter of 2022 and in response to the finding, FirstEnergy implemented a new methodology for the allocation of these corporate support costs to regulatory capital accounts for its regulated distribution and transmission companies on a prospective basis. With the assistance of an independent outside firm, FirstEnergy completed an analysis during the third quarter of 2022 of these costs and how it impacted certain FERC-jurisdictional wholesale transmission customer rates for the audit period of 2015 through 2021. As a result of this analysis, FET reclassified certain transmission capital assets to operating expenses for the audit period. FET fully recovered approximately $91 million of the above costs reclassified to operating expenses in its transmission formula rate revenue requirements as of December 31, 2024.

On December 8, 2023, FERC audit staff issued a letter advising that two unresolved audit matters, primarily related to FirstEnergy’s plan to recover the reclassified operating expenses in formula transmission rates, were being referred to other offices within FERC for further review. On July 5, 2024 and September 26, 2024, the FERC Office of Enforcement issued additional data requests related to the 2022 reclassification of operating expenses, to which FirstEnergy replied. On September 10, 2024 and January 13, 2025, the FERC Office of Enforcement issued further data requests related to a matter unrelated to FET, to which FirstEnergy responded. If the FERC Office of Energy Market Regulation and the FERC Office of Enforcement were to successfully challenge the recovery of the 2022 reclassified operating expenses and formula transmission rates it could have a material adverse effect on the FET Subsidiaries' financial conditions, result of operations, and cash flows.

Transmission ROE Incentive

On February 24, 2022, the OCC filed a complaint with FERC against ATSI, AEP’s Ohio affiliates and American Electric Power Service Corporation, and Duke Energy Ohio, LLC asserting that FERC should reduce the ROE utilized in the utilities’ transmission formula rates by eliminating the 50 basis point adder associated with RTO membership, effective February 24, 2022. The OCC contends that this result is required because Ohio law mandates that transmission owning utilities join an RTO and that the 50 basis point adder is applicable only where RTO membership is voluntary. On December 15, 2022, FERC denied the complaint as to ATSI and Duke, but granted it as to AEP. AEP and OCC appealed FERC’s orders to the Sixth Circuit. On January 17, 2025, the Sixth Circuit ruled that the 50 basis point adder is available only where RTO membership is voluntary, that Ohio law requires Ohio’s transmission utilities to be members of an RTO, and that it was unlawful for FERC to excise the adder from AEP rates, but not from the Duke and ATSI rates. During 2024, as a result of the ruling, ATSI recognized a $46 million pre-tax charge, with interest, of which $42 million is reported in “Transmission Revenues” and $4 million is reported in “Miscellaneous income, net” on the Consolidated Statements of Income to reflect the expected refund owed to transmission customers back to February 24, 2022. On March 3, 2025, FirstEnergy filed for rehearing en banc, and Duke and AEP also filed for rehearing, which was denied by the Sixth Circuit on March 26, 2025. On April 16, 2025, the Sixth Circuit agreed to hold the case pending further appeal to the Supreme Court of the U.S. The deadline to file for review at the Supreme Court of the U.S is June 25, 2025.

Transmission ROE Methodology

A proposed rulemaking proceeding concerning transmission rate incentives provisions of Section 219 of the 2005 Energy Policy Act was initiated in March of 2020 and remains pending before FERC. Among other things, the rulemaking explored whether utilities should collect an “RTO membership” ROE incentive adder for more than three years. FirstEnergy is a member of PJM, and its transmission subsidiaries could be affected by the proposed rulemaking. FirstEnergy participated in comments on the supplemental rulemaking that were submitted by a group of PJM transmission owners and by various industry trade groups. If there were to be any changes to the FET Subsidiaries' transmission incentive ROE, such changes will be applied on a prospective basis; provided however, due to the Sixth Circuit’s ruling in the “Transmission ROE Incentive” matter described above, ATSI is collecting the ROE incentive adder subject to refund.

Transmission Planning Supplemental Projects

On September 27, 2023, the OCC filed a complaint against ATSI, PJM and other transmission utilities in Ohio alleging that the PJM Tariff and operating agreement are unjust, unreasonable, and unduly discriminatory because they include no provisions to ensure PJM’s review and approval for the planning, need, prudence and cost-effectiveness of the PJM Tariff Attachment M-3 “Supplemental Projects.” Supplemental Projects are projects that are planned and constructed to address local needs on the transmission system. The OCC demands that FERC: (i) require PJM to review supplemental projects for need, prudence and cost-effectiveness; (ii) appoint an independent transmission monitor to assist PJM in such review; and (iii) require that Supplemental Projects go into rate base only through a “stated rate” procedure whereby prior FERC approval would be needed
for projects with costs that exceed an established threshold. Subsequently, intervenors expanded the scope of this proceeding to all of the transmission utilities in PJM. The FET Subsidiaries and the other transmission utilities in Ohio and PJM filed comments.

Local Transmission Planning Complaint

On December 19, 2024, the Industrial Energy Consumers of America, a group representing large industrial customers, and state consumer advocates filed a complaint at FERC that asserts that transmission owners are overbuilding “local transmission facilities” with corresponding unjustified increases in transmission rates. The complaint demands that FERC: (i) prohibit transmission owners from planning “local transmission facilities” that are rated at 100kV or higher, (ii) appoint “independent transmission monitors” to conduct such planning, and (iii) condition construction of local transmission facilities on the facility having been planned by the “independent transmission monitor.” FirstEnergy is participating in this matter through a consortium of PJM transmission owners and through certain trade groups, including EEI. FirstEnergy together with the PJM transmission owners filed a motion to dismiss the complaint on March 20, 2025, which is pending before FERC. FET is unable to predict the outcome or estimate the impact that this complaint may have on the FET Subsidiaries, however, whether this lawsuit moves forward could have a material impact on FET’s transmission capital investment strategy.

Valley Link Formula Transmission Rate

Valley Link is a joint venture between FET, AEP and Dominion, and was formed to submit applications to construct transmission solutions to identified transmission reliability issues. In 2024, Valley Link submitted a portfolio of transmission solutions to the reliability issues that were the subject of the PJM 2024 RTEP Window 1 planning process. On February 26, 2025, PJM selected approximately $3.0 billion of the transmission solutions proposed by Valley Link for construction through PJM’s “baseline” RTEP process. On March 14, 2025, the Valley Link joint venture filed an application for forward-looking formula transmission rates to provide for cost recovery for the portfolio of selected projects. Among other things, the transmission rate application provides for a capital structure of 40% debt and 60% equity, and a base ROE of 10.9% with associated templates and protocols, as well as transmission rate incentives, including the abandonment rate incentive, the construction work in progress rate incentive, the RTO participation adder incentive, the hypothetical capital structure incentive, and the regulatory asset incentive. On April 4, 2025, certain parties filed protests of certain elements of the proposed formula rate and requested transmission incentives, to which Valley Link responded on April 21, 2025. On April 8, 2025, PJM also sought to intervene in the matter. FERC is expected to issue an initial order by May 13, 2025.
v3.25.1
COMMITMENTS, GUARANTEES AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS, GUARANTEES AND CONTINGENCIES COMMITMENTS, GUARANTEES AND CONTINGENCIES
GUARANTEES AND OTHER ASSURANCES

FET has various financial and performance guarantees and indemnifications, which can be issued in the normal course of business. These contracts include stand-by LOCs and surety bonds. FET enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. The maximum potential amount of future payments FET and the FET Subsidiaries could be required to make under these guarantees as of March 31, 2025 was $31 million, as summarized below:

Guarantees and Other AssurancesMaximum Exposure
 (In millions)
Surety Bonds(1)
$25 
LOCs6 
Total Guarantees and Other Assurances$31 
(1) Surety Bonds are not tied to a credit rating, and their impact assumes maximum contractual obligations, which is ordinarily 100% of the face amount of the surety bond except with respect to $1 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.

COLLATERAL AND CONTINGENT-RELATED FEATURES

In the normal course of business, FET and the FET Subsidiaries may enter into physical or financially settled contracts. Certain agreements contain provisions that require FET or the FET Subsidiaries to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon FET’s or the FET Subsidiaries’ credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. FET has posted $6 million of collateral, in the form of LOCs, as of March 31, 2025.

ENVIRONMENTAL MATTERS

Various federal, state and local authorities regulate FET with regard to air and water quality, hazardous and solid waste disposal, and other environmental matters. While FET’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. FET 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.

OTHER LEGAL PROCEEDINGS

There are various lawsuits, claims and proceedings related to FET's normal business operations pending against FET or its subsidiaries. The loss or range of loss in these matters is not expected to be material to FET or its subsidiaries. The other potentially material items not otherwise discussed above are described under Note 6, "Regulatory Matters," of the Notes to Consolidated Financial Statements.

FET 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 FET 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 FET 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 FET's or its subsidiaries' financial condition, results of operations and cash flows.
v3.25.1
TRANSACTIONS WITH AFFILIATES
 3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
TRANSACTIONS WITH AFFILIATES TRANSACTIONS WITH AFFILIATES
In addition to the intercompany income tax allocation and the short-term borrowing arrangement, FET and its subsidiaries have revenues, operating expense and interest expense transactions with affiliated companies, primarily FESC and the Electric Companies. The affiliated company transactions during the three months ended March 31, 2025 and 2024, are as follows:
For the Three Months Ended March 31,
20252024
(In millions)
Revenues$4 $4 
Other operating expenses:
   Ground lease expense6 6 
   FESC support services (1)
65 58 
Other affiliate support services (1)
33 28 
Interest income2 1 
Interest expense1 5 
(1) Includes amounts capitalized.

FE does not bill directly or allocate any of its costs to any subsidiary company. FESC provides corporate support and other services, including executive administration, accounting and finance, risk management, human resources, corporate affairs, communications, information technology, legal services and other similar services at cost, in accordance with its cost allocation manual, to affiliated FirstEnergy companies under FESC agreements. Allocated costs are for services that are provided on behalf of more than one company, or costs that cannot be precisely identified and are allocated using formulas developed by FESC. Intercompany transactions are generally settled under commercial terms within thirty days.

As FET and its subsidiaries do not have employees, employees from the Electric Companies perform maintenance and project work in support of FET and its subsidiaries. Labor and overhead costs associated with these activities are charged by the affiliates to FET's subsidiaries at cost.

As regulated money pool participants, the FET Subsidiaries have the ability to borrow from each other, regulated affiliates and the FE holding company to meet their short-term working capital requirements. FET had a similar but separate arrangement with FE's unregulated money pool participants. As of June 1, 2024, FET is no longer participating in the unregulated money pool. Affiliated company notes receivables and payables related to the money pool are reported as "Notes receivable from affiliated companies" or "Short-term borrowings - affiliated companies" on the Consolidated Balance Sheets. Affiliate accounts receivable and accounts payable balances relate to intercompany transactions that have not yet settled through the money pool.

FET and its subsidiaries are parties to an intercompany income tax allocation agreement with FirstEnergy that provides for the allocation of consolidated tax liabilities. For periods subsequent to the closing of the FET Equity Interest Sale, FET and its subsidiaries no longer are members of the FirstEnergy consolidated group for federal income tax purposes and, instead, will file their own consolidated federal income tax return and have their own income tax allocation agreement. See Note 3, "Income Taxes," of the Notes to Consolidated Financial Statements for additional information.
In addition to service costs, interest on obligations, expected return on plan assets, and prior service costs, FirstEnergy recognizes in net periodic benefit costs a pension and OPEB mark-to-market adjustment for the change in the 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 a remeasurement. FET's subsidiaries are allocated a portion of net periodic benefit costs from affiliates. These amounts are expected to be refunded or recovered through formula transmission rates. Additionally, other pension and OPEB net periodic costs (credits) allocated to FET's subsidiaries from affiliates were approximately $3 million as of March 31, 2025 and 2024.
FET presents FE’s ownership of FET’s special purpose membership interest net assets and net income as NCI, which is included as a component of equity on FET’s Consolidated Balance Sheets.
ATSI has a ground lease with the Ohio Companies and FE PA under an operating lease agreement. Land use is rented to ATSI under the terms and conditions of a ground lease. ATSI, the Ohio Companies and FE PA reserve the right to use (and to permit authorized others to use) the land for any purpose that does not cause a violation of electrical safety code or applicable law, or does not impair ATSI's ability to satisfy its service obligations. Additional uses of such land for ATSI's facilities requires prior written approval from the applicable operating companies. ATSI purchases directly any new property acquired for transmission use. ATSI makes fixed quarterly lease payments for the ground lease through December 31, 2049, unless terminated prior to maturity, or extended by ATSI for up to 10 additional successive periods of 50 years each.
MAIT has a ground lease with FE PA under an operating lease agreement. FE PA reserves the right to use (and to permit authorized others to use) the land for any purpose that does not cause a violation of electrical safety code or applicable law, or does not impair MAIT's ability to satisfy its service obligations. Additional uses of such land for MAIT's facilities require prior written approval from the applicable operating company. MAIT purchases directly any new property acquired for transmission use. MAIT makes variable quarterly lease payments through January 1, 2043, unless terminated prior to maturity, or extended by MAIT for up to two additional successive periods of 25 years each and one successive term of 24 years.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net Income (Loss) $ 109 $ 72
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
ORGANIZATION AND BASIS OF PRESENTATION (Policies)
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Accounting FET and its subsidiaries follow GAAP and comply with the related regulations, orders, policies and practices prescribed by FERC and the PUCO, PPUC, WVPSC, MDPSC and VSCC.
Use of Estimates 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.
Consolidation FET 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. FET and its subsidiaries consolidate a VIE (MAIT) when it is determined to be a primary beneficiary. Investments in affiliates over which FET 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 FET's ownership share of the entity’s earnings is reported in the Consolidated Statements of Income.
Segment Information
Segment Information
FET has one operating segment, which is the entire entity. FET's Consolidated Statements of Income are consistent with the internal financial reports used by FET's President, its CODM. FET's CODM uses earnings attributable to FET to assess performance and considers budget versus actual results on a monthly basis when making decisions about allocating resources. FET considers Other operating expenses, Provision for depreciation, General taxes, Interest expense and Income taxes to be significant expenses. See the Consolidated Statements of Income.
New Accounting Pronouncements
New Accounting Pronouncements

Recently Issued Pronouncements - The following new authoritative accounting guidance issued by the FASB has not yet been adopted. Unless otherwise indicated, FET and its subsidiaries are currently assessing the impact such guidance may have on its financial statements and disclosures, as well as the potential to early adopt where applicable. FET and its subsidiaries have assessed other FASB issuances of new standards not described below based upon the current expectation that such new standards will not significantly impact FET and its subsidiaries’ financial reporting.

ASU 2023-09, "Income taxes (Topic 280): Improvements to Income Tax Disclosures " (Issued in December 2023): ASU 2023-09 enhances disclosures primarily related to existing rate reconciliation and income taxes paid information to help investors better
assess how a company’s operations and related tax risks and tax planning and operational opportunities affect the tax rate and prospects for future cash flows. Disclosure requirements include a tabular reconciliation using both percentages and amounts, separated out into specific categories with certain reconciling items at or above 5% of the statutory tax as well as by nature and/or jurisdiction. In addition, entities will be required to disclose income taxes paid (net of refunds received), broken out between federal, state/local and foreign, and amounts paid to an individual jurisdiction when 5% or more of the total income taxes are paid to such jurisdiction. For public companies, the guidance will be effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments within ASU 2023-09 are to be applied on a prospective basis, with retrospective application permitted.

ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)" (Issued in November 2024 and subsequently updated within ASU 2025-01): ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for public companies for the first annual reporting period beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance is permitted to be applied prospectively, and comparative disclosures are not required for reporting periods beginning before the effective date. Entities can elect to apply the new standard retrospectively to any or all prior periods presented in the financial statements.
Long-Term Debt and Other Long-Term Obligations
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, FET believes that their costs approximate their fair market value.
v3.25.1
REVENUE (Tables)
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table represents a disaggregation of revenue from contracts with regulated transmission customers for the three months ended March 31, 2025 and 2024, by transmission owner:
Revenues from Contracts with Customers by Transmission Asset OwnerFor the Three Months Ended March 31,
20252024
(In millions)
ATSI$263 $243 
TrAIL70 67 
MAIT131 104 
Total Revenue from Contracts with Customers464 414 
Other revenue unrelated to contracts with customers
4 4 
Total revenues$468 $418 
v3.25.1
INCOME TAXES (Tables)
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation The following table reconciles the effective income tax rate to the federal income tax statutory rate for the three months ended March 31, 2025 and 2024:
For the Three Months Ended March 31,
20252024
(In millions)
Income before income taxes$165 $147 
Federal income tax expense at the 21% statutory rate$35 $31 
Increases (reductions) in tax expense resulting from:
State income taxes, net of federal tax benefit7 7 
AFUDC equity and other flow-through(3)(2)
Taxes related to the FET Equity Interest Sale, net— 23 
Excess deferred tax amortization(1)(1)
Other, net(1)(1)
Total income taxes$37 $57 
Effective income tax rate22.4 %38.8 %
v3.25.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value and Related Carrying Amounts of Long-term Debt The following table provides the approximate fair value and related carrying amounts of long-term debt, which excludes net unamortized debt issuance costs, premiums and discounts as of March 31, 2025 and December 31, 2024:
March 31, 2025December 31, 2024
(In millions)
Carrying value$5,900 $5,900 
Fair value$5,616 $5,522 
v3.25.1
VARIABLE INTEREST ENTITIES (Tables)
 3 Months Ended
Mar. 31, 2025
Variable Interest Entities [Abstract]  
Schedule of Variable Interest Entities
The following shows the carrying amounts and classification of the MAIT assets and liabilities included in the consolidated financial statements as of March 31, 2025, and December 31, 2024. Amounts exclude intercompany balances which were eliminated in consolidation. FET has not provided any guarantees or other credit support for the benefit of MAIT or MAIT’s creditors.

Assets
March 31, 2025
December 31, 2024
(In millions)
Receivables$31 $32 
Notes receivable from affiliated companies— 5 
Prepaid taxes and other current assets 1 2 
Total current assets 32 39 
Property, plant and equipment, net3,678 3,558 
Goodwill224 224 
Regulatory assets24 18 
Operating lease right-of-use asset1 1 
Other noncurrent assets14 14 
Total noncurrent assets 3,941 3,815 
TOTAL ASSETS$3,973 $3,854 

Liabilities
March 31, 2025
December 31, 2024
(In millions)
Short-term borrowings$45 $— 
Accounts payable91 90 
Accrued interest21 11 
Accrued taxes6 7 
Other current liabilities8 8 
Total current liabilities 171 116 
Long-term debt and other long-term obligations1,276 1,276 
Accumulated deferred income taxes380 366 
Other noncurrent liabilities 2 2 
Total noncurrent liabilities 1,658 1,644 
TOTAL LIABILITIES$1,829 $1,760 
v3.25.1
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Tables)
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Potential Collateral Obligations The maximum potential amount of future payments FET and the FET Subsidiaries could be required to make under these guarantees as of March 31, 2025 was $31 million, as summarized below:
Guarantees and Other AssurancesMaximum Exposure
 (In millions)
Surety Bonds(1)
$25 
LOCs6 
Total Guarantees and Other Assurances$31 
(1) Surety Bonds are not tied to a credit rating, and their impact assumes maximum contractual obligations, which is ordinarily 100% of the face amount of the surety bond except with respect to $1 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.
v3.25.1
TRANSACTIONS WITH AFFILIATES (Tables)
 3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
Schedule of Transactions with Affiliated Companies The affiliated company transactions during the three months ended March 31, 2025 and 2024, are as follows:
For the Three Months Ended March 31,
20252024
(In millions)
Revenues$4 $4 
Other operating expenses:
   Ground lease expense6 6 
   FESC support services (1)
65 58 
Other affiliate support services (1)
33 28 
Interest income2 1 
Interest expense1 5 
(1) Includes amounts capitalized.
v3.25.1
ORGANIZATION AND BASIS OF PRESENTATION (Details)
$ in Millions
 3 Months Ended
Feb. 26, 2025
USD ($)
substation
transmission_project
mi
kV
Mar. 31, 2025
USD ($)
segment
mi
kV
Mar. 31, 2024
USD ($)
Dec. 31, 2024
USD ($)
Mar. 25, 2024
director
May 31, 2022
Regulatory Asset [Line Items]            
Service area | mi   12,520        
Nominal voltage (in kV)   500        
Nominal voltage (in kV)   345        
Nominal voltage (in kV)   230        
Nominal voltage (in kV)   138        
Nominal voltage (in kV)   115        
Nominal voltage (in kV)   69        
Nominal voltage (in kV)   46        
Number of directors | director         5  
Capitalized cost of equity | $   $ 12 $ 8      
Capitalized interest | $   $ 4 $ 4      
Number of operating segments | segment   1        
PJM Interconnection, LLC | Equity Method Investment, Nonconsolidated Investee or Group of Investees            
Regulatory Asset [Line Items]            
Expected cost of the program | $ $ 3,000          
Brookfield            
Regulatory Asset [Line Items]            
Number of directors | director         2  
Equity contribution from FE            
Regulatory Asset [Line Items]            
Number of directors | director         3  
Valley Link            
Regulatory Asset [Line Items]            
Equity method investment, ownership percentage         34.00%  
Equity method investments | $   $ 0   $ 0    
Valley Link | PJM Interconnection, LLC            
Regulatory Asset [Line Items]            
Number of transmission projects | transmission_project 2          
Expected cost of the program | $ $ 1,020          
Brookfield | FET            
Regulatory Asset [Line Items]            
Sale of ownership interest by parent         30.00%  
Brookfield | FET | North American Transmission Company II LLC            
Regulatory Asset [Line Items]            
Equity method investment, ownership percentage         49.90% 19.90%
Dominion HV | Valley Link            
Regulatory Asset [Line Items]            
Equity method investment, ownership percentage         30.00%  
Transource Energy, LLC | Valley Link            
Regulatory Asset [Line Items]            
Equity method investment, ownership percentage         36.00%  
Variable Interest Entity, Not Primary Beneficiary | Path WV            
Regulatory Asset [Line Items]            
Equity method investments | $   $ 17   $ 17    
Variable interest entities percentage of high voltage transmission line project owned By variable interest entity one in joint venture party one   100.00%        
Variable interest entities percentage of high voltage transmission line project owned by variable interest entity one in joint venture party two   50.00%        
Common Class B | MAIT            
Regulatory Asset [Line Items]            
Special purpose membership interest held, percentage of distributions   1        
MAIT | Common Class A            
Regulatory Asset [Line Items]            
Ownership percentage by parent         100.00%  
MAIT | Common Class B            
Regulatory Asset [Line Items]            
Ownership percentage by parent         100.00%  
FET | Equity contribution from FE            
Regulatory Asset [Line Items]            
Ownership percentage by parent         50.10%  
Putnam County West Virginia and Frederick County Maryland | Valley Link | PJM Interconnection, LLC            
Regulatory Asset [Line Items]            
Transmission line length | mi 260          
Transmission line electrical potential 765          
Number of substations | substation 2          
Campbell County Virginia and Fauquier County, Virginia | Valley Link | PJM Interconnection, LLC            
Regulatory Asset [Line Items]            
Transmission line length | mi 155          
Transmission line electrical potential 765          
v3.25.1
REVENUE (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Disaggregation of Revenue [Line Items]    
Total Revenue from Contracts with Customers $ 464 $ 414
Other revenue unrelated to contracts with customers 4 4
Total revenues 468 418
ATSI    
Disaggregation of Revenue [Line Items]    
Total Revenue from Contracts with Customers 263 243
TrAIL    
Disaggregation of Revenue [Line Items]    
Total Revenue from Contracts with Customers 70 67
MAIT    
Disaggregation of Revenue [Line Items]    
Total Revenue from Contracts with Customers $ 131 $ 104
v3.25.1
INCOME TAXES - Reconciliation of Federal Income Tax Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes    
Income before income taxes $ 165 $ 147
Federal income tax expense at the 21% statutory rate 35 31
Increases (reductions) in tax expense resulting from:    
State income taxes, net of federal tax benefit 7 7
AFUDC equity and other flow-through (3) (2)
Taxes related to the FET Equity Interest Sale, net 0 23
Excess deferred tax amortization (1) (1)
Other, net (1) (1)
Total income taxes $ 37 $ 57
Effective income tax rate 22.40% 38.80%
v3.25.1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Tax Disclosure [Abstract]    
Taxes related to the FET equity interest sale, net $ 0 $ 23
v3.25.1
FAIR VALUE MEASUREMENTS - Schedule of Fair Value and Related Carrying Amounts of Long-term Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Carrying value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt and other long-term obligations $ 5,900 $ 5,900
Fair value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt and other long-term obligations $ 5,616 $ 5,522
v3.25.1
FAIR VALUE MEASUREMENTS - Narrative (Details) - Senior Notes - Subsequent Event - TrAIL - Senior Notes due 2031 at 5.00%
$ in Millions
Apr. 16, 2025
USD ($)
Fair Value of Financial Instruments [Line Items]  
Issuance interest rate 5.00%
Face amount of debt $ 600
v3.25.1
VARIABLE INTEREST ENTITIES (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Current Assets    
Notes receivable from affiliated companies $ 208 $ 197
Prepaid taxes and other current assets 21 22
Total current assets 335 344
Goodwill 224 224
Regulatory assets 24 18
Operating lease right-of-use asset [1] 412 412
Other noncurrent assets 50 47
TOTAL ASSETS 12,690 12,565
Current Liabilities    
Accrued interest 70 68
Accrued taxes 314 306
Other current liabilities 15 15
Total current liabilities 1,609 1,458
Long-term debt and other long-term obligations 5,240 5,239
Accumulated deferred income taxes 1,436 1,412
Other noncurrent liabilities 9 9
Total noncurrent liabilities 7,693 7,797
TOTAL LIABILITIES 9,302 9,255
Variable Interest Entity, Primary Beneficiary    
Current Assets    
Receivables 31 32
Notes receivable from affiliated companies 0 5
Prepaid taxes and other current assets 1 2
Total current assets 32 39
Property, plant and equipment, net 3,678 3,558
Goodwill 224 224
Regulatory assets 24 18
Operating lease right-of-use asset 1 1
Other noncurrent assets 14 14
Total noncurrent assets 3,941 3,815
TOTAL ASSETS 3,973 3,854
Current Liabilities    
Short-term borrowings 45 0
Accounts payable 91 90
Accrued interest 21 11
Accrued taxes 6 7
Other current liabilities 8 8
Total current liabilities 171 116
Long-term debt and other long-term obligations 1,276 1,276
Accumulated deferred income taxes 380 366
Other noncurrent liabilities 2 2
Total noncurrent liabilities 1,658 1,644
TOTAL LIABILITIES $ 1,829 $ 1,760
[1] Includes $409 million as of March 31, 2025 and $410 million as of December 31, 2024 associated with affiliated leases.
v3.25.1
REGULATORY MATTERS - FERC Audit (Details) - FERC - Transmission Related Vegetation Management Programs
$ in Millions
Dec. 08, 2023
auditMatter
Dec. 31, 2024
USD ($)
Regulatory Matters [Line Items]    
Costs reclassified to operating expenses which have been recovered | $   $ 91
Number of unresolved audit matters referred to other offices | auditMatter 2  
v3.25.1
REGULATORY MATTERS - Transmission ROE Incentive (Details) - FERC
$ in Millions
 12 Months Ended
Jan. 17, 2025
Feb. 24, 2022
Dec. 31, 2024
USD ($)
Transmission Related Vegetation Management Programs      
Regulatory Matters [Line Items]      
Basis point adder associated with RTO membership   0.0050  
Transmission ROE Incentive      
Regulatory Matters [Line Items]      
Basis point adder associated with RTO membership 0.0050    
Pre-tax charge with interest recorded     $ 46
Transmission ROE Incentive | Miscellaneous Income      
Regulatory Matters [Line Items]      
Pre-tax charge with interest recorded     4
Transmission ROE Incentive | Revenues from affiliates | Transmission Revenues      
Regulatory Matters [Line Items]      
Pre-tax charge with interest recorded     $ 42
v3.25.1
REGULATORY MATTERS - Valley Link Transmission Rate (Details) - USD ($)
$ in Millions
Mar. 14, 2025
Feb. 26, 2025
PJM Interconnection, LLC | Equity Method Investment, Nonconsolidated Investee or Group of Investees    
Regulatory Matters [Line Items]    
Expected cost of the program   $ 3,000
Valley Link | PJM Interconnection, LLC    
Regulatory Matters [Line Items]    
Expected cost of the program   $ 1,020
PJM 2024 RTEP Window 1 | PJM Interconnection, LLC    
Regulatory Matters [Line Items]    
Approved ROE 10.90%  
PJM 2024 RTEP Window 1 | Valley Link Transmission Rate    
Regulatory Matters [Line Items]    
Capital structure, percentage 40.00%  
Equity ratio, percentage 60.00%  
v3.25.1
COMMITMENTS, GUARANTEES AND CONTINGENCIES - Potential Amount of Future Payments (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
Guarantor Obligations [Line Items]  
Total Guarantees and Other Assurances $ 31
Surety Bonds  
Guarantor Obligations [Line Items]  
Total Guarantees and Other Assurances $ 25
Percent of face amount of debt 100.00%
Capped portion of surety bond obligations $ 1
Curing period 30 days
Maximum capped percentage of face amount of debt 60.00%
LOCs  
Guarantor Obligations [Line Items]  
Total Guarantees and Other Assurances $ 6
v3.25.1
COMMITMENTS, GUARANTEES AND CONTINGENCIES - Narrative (Details)
$ in Millions
Mar. 31, 2025
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Company posted collateral related to net liability positions $ 6
v3.25.1
TRANSACTIONS WITH AFFILIATES - Schedule of Transactions with Affiliated Companies (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Related Party Transaction [Line Items]    
Revenues $ 468 $ 418
Other operating expenses [1] 91 72
Affiliates    
Related Party Transaction [Line Items]    
Revenues 4 4
Other operating expenses 104 92
Interest income 2 1
Interest expense 1 5
Ground lease expense | Affiliates    
Related Party Transaction [Line Items]    
Other operating expenses 6 6
FESC support services | Affiliates    
Related Party Transaction [Line Items]    
Other operating expenses 65 58
Other affiliate support services | Affiliates    
Related Party Transaction [Line Items]    
Other operating expenses $ 33 $ 28
[1] $104 million and $92 million, respectively, of affiliated operating expenses were incurred, a portion of which is capitalized.
v3.25.1
TRANSACTIONS WITH AFFILIATES - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
extension
Mar. 31, 2024
USD ($)
ATSI    
Related Party Transaction [Line Items]    
Number of additional successive periods 10  
Renewal term of lease yet to be commenced 50 years  
MAIT    
Related Party Transaction [Line Items]    
Number of additional successive periods 2  
Renewal term of lease yet to be commenced 25 years  
Number of additional renewal options 1  
Additional successive term 24 years  
Affiliates    
Related Party Transaction [Line Items]    
Defined benefit plan, plan assets, other pension and OPEB net periodic costs (credits) | $ $ 3 $ 3