Firstenergy Corp. · NYSE:FE
Firstenergy — Investor Presentation (February 2025)
54 slides from Firstenergy's investor presentation, Feb 26, 2025
Slide 1: Focused on Our Future: Annual Investor FactBook
Focused on Our Future Annual Investor FactBook Published February 26, 2025
Slide 2: Table of Contents
Table of Contents Investor FactBook - Published Feb. 26, 20252 5 Stand-Alone Transmission Segment 37 - 44 3 Distribution Segment 26 - 30 4 Integrated Segment 31 - 36 6 Additional Information & IR Contacts 45 - 54 2 Financial Guidance 10 - 25 1 FirstEnergy Overview 3 - 9 Unless otherwise noted, all n
Slide 3: FirstEnergy Overview
$4.6, 17% $6.9, 25% $5.3, 19% $5.2, 19% $5.7, 20%OH PA NJ WV/MD FirstEnergy Overview Investor FactBook - Published Feb. 26, 20253 $52B Total Assets 6M+ Total Customers 24K Transmission Miles Square Miles of Service Territory 12K Employees We invest in and operate our electric system to improve relia
Slide 4: Highlighting FirstEnergy's Core Earnings Growth
Highlighting FirstEnergy’s Core Earnings Growth Investor FactBook - Published Feb. 26, 20254 ▪ Beginning in 2025 we will provide Core earnings(1) guidance – Core EPS consists of Operating earnings for our Distribution, Integrated and Stand-Alone Transmission business segments and Corporate operation
Slide 5: Our Value Proposition
Our Value Proposition Investor FactBook - Published Feb. 26, 20255 (1) Core EPS consists of our three business segments and Corporate operations, excluding Signal Peak and Net Pension/OPEB credits. With respect to Core EPS guidance, the Company is unable to reconcile this forward-looking non-GAAP in
Slide 6: Our Strategy to Transform FirstEnergy into a Premier Electric Company
Our Strategy to Transform FirstEnergy into a Premier Electric Company Investor FactBook - Published Feb. 26, 20256 • Focused on safety, reliability, and customer experience • Continuous improvement mindset • Leveraging technology and data to drive a best-in-class customer experience • Executing inve
Slide 7: Key Accomplishments Supporting a Strong Foundation
Key Accomplishments Supporting a Strong Foundation Investor FactBook - Published Feb. 26, 20257 ▪ Transitioned to new business unit organizational structure and simplified segment reporting • Continued adding and promoting key leaders to shift decision-making and accountability closer to the custome
Slide 8: 2025 Key Regulatory Proceedings by Jurisdiction
2025 Key Regulatory Proceedings by Jurisdiction Investor FactBook - Published Feb. 26, 20258 (1) Includes DCR/DMR, Political and Charitable Spending, and Corporate Separation audits. Ohio, 17% Pennsylvania, 25% New Jersey, 19% West Virginia, 15% Maryland, 4% FERC, 20% We plan to enhance the customer
Slide 9: Commitment to Affordability
Commitment to Affordability Investor FactBook - Published Feb. 26, 20259 ■ Energy Efficiency Programs (and proposals) include: ■ PA Phase IV EE: 2021-2026 ■ NJ EE&C: 2nd triennium (Jan ‘25-Jun ’27) ■ MD EmPOWER: 2024-2026 ■ OH: Proposal to continue EE programs approved in ESP V as part of ESP VI fil
Slide 10: Financial Guidance Overview
Financial Guidance Overview Investor FactBook - Published Feb. 26, 202510 2025-2029 GUIDANCE 2025 GUIDANCE 9% Rate Base Growth (2025-2029 CAGR) 6-8% Core EPS Growth (2025-2029 CAGR) 60-70% Targeted Dividend Payout Ratio of Core EPS $28B Base Investment Plan 75% Formula investments No Equity No equit
Slide 11: $28B Base Investment Plan Summary (2025-2029)
Fossil Generation Infrastructure Renewal Grid Modernization Clean Energy Transmission $28B 2025-2029 $28B Base Investment Plan Summary (2025-2029) 11 Reliability, Resiliency, and Energy Transition (75%): • Transmission: ‒ Operational Flexibility Projects (build capacity for new demand/data centers a
Slide 12: $28B Base Investment Plan by Segment & Year
Formula Rate % $28B Base Investment Plan by Segment & Year (2025-2029) Investor FactBook - Published Feb. 26, 202512 $1.3 $1.4 $1.4 $1.5 $1.5 $1.6 $1.7 $1.9 $1.9 $2.1 $2.4 $2.5 $1.4 $1.7 $1.8 $1.9 $2.0 $2.2$4.5B $5.0B $5.2B $5.6B $6.0B $6.4B 2024A ~70% 2025F ~75% 2026F ~75% 2027F ~75% 2028F ~75% 202
Slide 13: FE-Owned Rate Base Summary
$11.0 $11.5 $12.3 $13.0 $13.8 $14.7 $9.6 $10.5 $11.5 $12.8 $14.1 $15.7$5.3 $5.7 $6.3 $6.8 $7.6 $8.4 $25.9B $27.7B $30.1B $32.6B $35.5B $38.8B 2024A 2025F 2026F 2027F 2028F 2029F Distribution Integrated Stand-Alone Transmission FE-Owned Rate Base Summary End of Year Investor FactBook - Published Feb.
Slide 14: 6-8% Core EPS CAGR Guidance
6-8% Core EPS(1) CAGR Guidance ■ Rate Base CAGR of 9%, including ~75% of investments in formula rate programs ■ Base rates to support recovery and return on investments through regular cadence of base rate case filings ■ Modest customer demand growth – Weather-adj sales: avg. increase of ~2%+ primar
Slide 15: Dividend Overview
Dividend Overview Investor FactBook - Published Feb. 26, 202515 Dividend payments are subject to declaration by the Board of Directors $1.60/sh $1.70/sh $1.78/sh $2.20/sh $2.37/sh $2.50/sh 2023A 2024A 2025F 2029F Annual Dividend Core EPS Annual Dividends Per Share (Declared) Targeted Dividend Payout
Slide 16: 2025 Core EPS Guidance: $2.40 - $2.60
2025 Core EPS(1) Guidance: $2.40 - $2.60 Investor FactBook - Published Feb. 26, 202516 2025F Segment Core EPS Ranges Distribution $1.29 - $1.37 Integrated $0.91 - $0.97 Stand-Alone Transmission $0.57 - $0.59 Corp/Other ($0.37) - ($0.33) FE $2.40 - $2.60 (1) See slide 48 for 2024 GAAP to Non-GAAP rec
Slide 17: Base Load Forecast
Base Load Forecast Only includes active and contracted data center load Investor FactBook - Published Feb. 26, 2025 17 Note: Commercial includes street lighting and reflects a reclassification (in 3Q 2024) of certain customers from Industrial to Commercial. Industrial 36% Commercial 26% Residential
Slide 18: Data Center Growth
Data Center Growth Investor FactBook - Published Feb. 26, 202518 2,190 2,495 2,985 6,115 2024A 2025F 2026F 2027F 2028F 2029F Beyond 2029F Active Customers Contracted Pipeline 5,575 9,010 MW 3GWs of load in the pipeline through 2029 represents potential incremental transmission investment of ~$350M(1
Slide 19: Controlling Baseline O&M
Controlling Baseline O&M(1) Investor FactBook - Published Feb. 26, 202519 (1) See slide 52 for 2023-2024 GAAP to Non-GAAP Baseline O&M Reconciliation. $1,492M $1,280M $1,283M $1,365M 2022A 2023A 2024A 2025F Controlling Baseline O&M is critical to reduce regulatory lag, enable our investment plan, an
Slide 20: Improving Earned ROEs
Improving Earned ROEs Investor FactBook - Published Feb. 26, 202520 8.8% 9.4% 2023A 2024A Targeting FE Consolidated ROE of 9.5%-10% Segment Legend Stand-Alone Tx Integrated Distribution Equity Layer 52% 53% YE Rate Base $26.5B $25.9B 4.7% 9.0% 9.3% 8.4% 8.3% 10.4% 10.45% OH PA NJ WV MD FET KATCo As
Slide 21: 2025 Financing Plan
■ No equity issuances (beyond Employee Benefit programs of up to ~$100M annually) ■ $3.6B of Long-term debt issuances planned at 5.5% interest rate; Net long-term debt increase of $2B 2025 Financing Plan Investor FactBook - Published Feb. 26, 202521 Distribution Segment Issuances Redemptions Notes O
Slide 22: Consolidated Long-Term Debt Maturities
3 0 0 1 ,2 0 0 8 0 0 3 0 0 2 7 5 6 0 0 1 2 5 6 5 0 3 0 0 5 2 5 1 0 0 1 5 0 1 0 0 3 7 5 5 0 5 0 2 5 0 6 5 0 4 5 0 1 0 0 2 0 5 5 0 5 7 5 4 0 0 7 0 0 2 0 0 3 0 0 6 0 0 2 0 0 1 4 5 1 5 5 4 5 1 0 06 2 5 7 5 1 ,1 0 0 5 0 0 1 0 0 8 7 5 3 2 5 4 0 0 7 2 5 8 0 0 7 5 5 0 0 3 0 0 1 ,8 0 0 1 ,5 0 0 1 ,0 5 0 6 0
Slide 23: Investment-Grade Credit Profile with Continued Positive Momentum
Investment-Grade Credit Profile with Continued Positive Momentum Investor FactBook - Published Feb. 26, 202523 (1) Based on Moody’s methodology Committed to balance sheet; achieving and maintaining BBB credit profile 9% 11% 13% 15% 2022 2023 2024 FE FFO/Debt: Moody’s View(1) FFO/Debt UG Threshold to
Slide 24: Pension/OPEB Summary
Pension/OPEB Summary ■ FE is the sponsor of the benefit plans for employees at FE’s subsidiaries ■ FE uses the Mark-to-Market (MTM) method for Pension/OPEB costs – Preferred method of accounting under GAAP; recognizes gains and losses in the year incurred, instead of being amortized over time – Each
Slide 25: 2025F Guidance Earnings Sensitivities
Sensitivity (+/-) Full-Year EPS Impact (+/-) Sales Residential 1% ~$0.03 Commercial 1% ~$0.01 Industrial 1% < $0.01 Weather HDD 75 HDD vs. normal (Dec-Mar) ~$0.01 CDD 25 CDD vs. normal (June-Sept) ~$0.01 ROE Distribution: OH PA 1% (100 bps) ~$0.04 ~$0.07 Integrated: NJ (Dx / Tx) WV/MD (Dx&Gx / Tx) 1
Slide 26: Distribution Segment Overview
Investor FactBook - Published Feb. 26, 202526 Modernizing and upgrading our system for a clean energy future. Increasing investments to enhance the customer experience. Providing safe, reliable and affordable energy every day. Delivering Customer-Focused Growth and Enhancing Reliability 4M+ Customer
Slide 27: Distribution Investment
$564 $555 $585 $595 $670 $705 $721 $850 $805 $865 $870 $940 2024A 2025F 2026F 2027F 2028F 2029F PA OH Distribution Investment Investor FactBook - Published Feb. 26, 202527 $1.6B $1.3B $1.4B $1.4B $M $1.5B$1.5B ■ Investment Plan of $7.4B over 2025-2029 – Distribution only ■ Increasing investments by
Slide 28: Distribution Rate Base
Distribution Rate Base Investor FactBook - Published Feb. 26, 202528 $4.4 $4.6 $4.9 $5.1 $5.4 $5.8 $6.6 $6.9 $7.4 $7.8 $8.4 $8.9 2024A 2025F 2026F 2027F 2028F 2029F PA OH $13.8B $14.7B $11.0B $13.0B $12.3B $11.5B Note: Rate Base amounts exclude CWIP balances of ~$0.5B to ~$0.6B per year that earn AF
Slide 29: Ohio Overview
Torrence Hinton President of Ohio Rate Case Statistics (Update Filing 7/31/24) Dx Rate Base $4.4B Filed ROE 10.8% Filed Debt / Equity ~45%/55% Test Year 2024 Ohio Overview Investor FactBook - Published Feb. 26, 202529 Key Regulatory Updates • ESP: Withdrawal of ESP V approved 12/18/24 • Reverted to
Slide 30: Pennsylvania Overview
Investor FactBook - Published Feb. 26, 202530 Data Center Activity (MW) Includes active, under agreement and data centers in the pipeline Recovery Mechanisms Affordability Average Customer Bills, as of 1/1/2025 Political Overview Pennsylvania Overview John Hawkins President of Pennsylvania 63% 37% B
Slide 31: Integrated Segment Overview
Investor FactBook - Published Feb. 26, 202531 Modernizing and upgrading our system to support the energy transition. Increasing investments to support infrastructure renewal and enhance system performance. Providing safe, reliable and affordable energy every day. Delivering Customer-Focused Growth a
Slide 32: Integrated Investment
Investment Plan Average (’25-’29) Integrated Investment Investor FactBook - Published Feb. 26, 202532 ■ Investment Plan of $10.8B over 2025-2029 period includes ~45% Transmission investments ■ Increasing investments by 38% across planning period, from $1.8B in 2024 to $2.5B in 2029 – Distribution in
Slide 33: Integrated Rate Base
Rate Base Average (2025-2029) Investor FactBook - Published Feb. 26, 202533 $B $3.3 $3.7 $4.0 $4.4 $4.8 $5.2 $4.1 $4.3 $4.3 $4.4 $4.4 $4.7 $1.4 $1.6 $1.8 $2.4 $2.7 $3.2 $0.8 $0.9 $1.3 $1.6 $2.3 $2.7 $4.7 $5.3 $5.8 $6.8 $7.5 $8.3 $4.9 $5.2 $5.6 $6.0 $6.7 $7.4 2024A 2025F 2026F 2027F 2028F 2029F 2024A
Slide 34: New Jersey Overview
Investor FactBook - Published Feb. 26, 202534 Data Center Activity (MW) Includes active, under agreement and data centers in the pipeline Recovery Mechanisms Affordability Average Customer Bills, as of 1/1/2025 Political Overview New Jersey Overview Doug Mokoid President of New Jersey 34.5kV 115 kV
Slide 35: West Virginia & Maryland Overview
47% 13% 40% Base Rates Dx/Gx Formula Tx Formula Investor FactBook - Published Feb. 26, 202535 Key Regulatory Updates WV Base Rate Case: Settlement approved 3/26/24, rates effective 3/27/24 • Net annual revenue increase of $105M WV ENEC: Received WVPSC approval of settlement with rates effective 3/27
Slide 36: 2025 West Virginia Generation (MP)
Investor FactBook - Published Feb. 26, 2025 West Virginia Generation (MP) PJM Zone State Fuel Type Units Net Max Cap (MW) Year Plant Comm 2024 Output M MWH Bath Co. Dominion VA Hydro 6 487(2) 1985 1.0 Ft. Martin(1) APS WV Coal 2 1,098 1967 3.9 Harrison(1) APS WV Coal 3 1,984 1972 10.6 OVEC Rest of R
Slide 37: Stand-Alone Transmission Segment Overview
Stand-Alone Transmission Segment Overview FET (ATSI, TrAILCo, MAIT) and KATCo 10% Rate Base Growth (2025-2029) Investor FactBook - Published Feb. 26, 202537 A premium business with a continued long-term pipeline of transmission investment opportunities Focused on investments that improve grid reliab
Slide 38: Stand-Alone Transmission Investment
Stand-Alone Transmission Investment Investor FactBook - Published Feb. 26, 202538 Note: Consolidated plan including Brookfield’s ownership percentage $624 $760 $800 $870 $885 $950 $638 $725 $805 $815 $830 $895 $55 $35 $40 $50 $50 $55 $110 $130 $145 $150 $215 $280 2024A 2025F 2026F 2027F 2028F 2029F
Slide 39: Stand-Alone Transmission Rate Base
$2.2 $2.3 $2.6 $2.7 $3.1 $3.3 $1.9 $2.2 $2.4 $2.7 $3.0 $3.4 $0.7 $0.7 $0.7 $0.7 $0.7 $0.7 $0.5 $0.5 $0.6 $0.7 $0.9 $1.0 2024A $9.0B 2025F $9.8B 2026F $10.9B 2027F $11.8B 2028F $13.2B 2029F $14.5B ATSI MAIT TrAIL KATCo $7.6B $8.4B Stand-Alone Transmission Rate Base Investor FactBook - Published Feb.
Slide 40: Transmission Overview
Transmission Overview Investor FactBook - Published Feb. 26, 202540 Mark Mroczynski President of Transmission MAIT TrAILCo 100% FERC-regulated, forward-looking rates 9.88%(1) -12.7% Allowed ROEs $5.7B FE Rate Base (2025F) Stand-Alone Transmission Segment Overview • Segment currently includes FET and
Slide 41: ATSI Overview
56% 34% 1% 9% Update System Condition Enhance System Performance Operational Flexibility Regulatory Required ATSI Overview Ownership: FE 50.1% / Brookfield 49.9% Investor FactBook - Published Feb. 26, 202541 69 kV 138 kV 345 kV Jurisdiction FERC Test year Forward-looking Term January-December Filing
Slide 42: MAIT Overview
MAIT Overview Ownership: FE 70% / Brookfield 30% Investor FactBook - Published Feb. 26, 202542 (1) MAIT’s equity ownership consists of Class A and Class B shares. As of 12/31/24, MAIT’s equity breakdown is 60% Class A and 40% Class B shares. Class A shares are fully owned by FET, LLC and subject to
Slide 43: TrAILCo Overview
TrAILCo Overview Ownership: FE 50.1% / Brookfield 49.9% Investor FactBook - Published Feb. 26, 202543 12.7% 11.7% Allowed ROE $1.4B ($0.7B) Total Rate Base (FE-owned) 40% / 60% Capital structure (Debt / Equity) (TrAIL the Line & Black Oak SVC) (All other projects) Jurisdiction FERC Test year Forward
Slide 44: KATCo Overview
KATCo Overview 100% FE Ownership Investor FactBook - Published Feb. 26, 202544 Jurisdiction FERC Test year Forward-looking Term January-December Filing month October True-up mechanism Yes 345 kV 500 kV 138 kV115 kV 230 kV FE Utility Service Territory 10.45% Allowed ROE (Settled) $0.5B Rate Base 51%
Slide 45: Additional Information & Investor Relations Contacts
Investor FactBook - Published Feb. 26, 202545 10.2-10.5% Tx 9.5-9.8% DX Keep and Update Additional Information & Investor Relations Contacts For our email distribution list, please contact: Delinda Herman, Executive Assistant to Vice President dherman@firstenergycorp.com 330.384.5584 Retail Sharehol
Slide 46: Industry Awards & Recognition
Industry Awards & Recognition Investor FactBook - Published Feb. 26, 202546 Recognized in 2024 by the ROW Stewardship Council as a fully accredited ROW Utility Steward Awarded Military Friendly Employer, Company, Spouse Employer, and Supply Chain by Military Friendly Survey Ethisphere designated Fir
Slide 47: Commonly Used Terms & Acronyms
Commonly Used Terms & Acronyms Investor FactBook - Published Feb. 26, 202547 ADIT Accumulated Deferred Income Taxes FEU FirstEnergy Utilities RTO Regional Transmission Organization AFUDC Allowance for Funds Used During Construction Fitch Fitch Ratings Service S&P Standard & Poor’s Rating Service AMI
Slide 48: 2024 GAAP to Non-GAAP Earnings Reconciliation
2024 GAAP to Non-GAAP Earnings Reconciliation Investor FactBook - Published Feb. 26, 202548 Per share amounts for the special items, Signal Peak and Net Pension/OPEB credits adjustments above are based on the after-tax effect of each item divided by the number of shares outstanding for the period. T
Slide 49: 2023 GAAP to Non-GAAP Earnings Reconciliation
2023 GAAP to Non-GAAP Earnings Reconciliation Investor FactBook - Published Feb. 26, 202549 Full Year 2023 (In $M, except per share amounts) Dx Int Tx Corp FE Cons 2023 Earnings (Loss) Attributable to FE Corp. from Continuing Operations (GAAP) $587 $300 $399 ($163) $1,123 2023 Earnings (Loss) Per Sh
Slide 50: 2022 GAAP to Non-GAAP Earnings Reconciliation
2022 GAAP to Non-GAAP Earnings Reconciliation Investor FactBook - Published Feb. 26, 202550 Per share amounts for the special items, Signal Peak and Net Pension/OPEB credits adjustments above are based on the after-tax effect of each item divided by the number of shares outstanding for the period. T
Slide 51: 2022-2024 Special Item Descriptions
2022-2024 Special Item Descriptions ▪ ARO regulatory change: Primarily related to increases in asset retirement obligations, primarily associated with the planned transfer of the McElroy’s Run coal ash disposal site to a third party and an estimate for new remediation obligations for various legacy
Slide 52: 2023-2024 GAAP to Non-GAAP Baseline O&M Reconciliations
2023-2024 GAAP to Non-GAAP Baseline O&M Reconciliations Investor FactBook - Published Feb. 26, 202552 (1) As reported in the Consolidated Statement of Income (2) 2024 amount primarily due to $62M impairment charge related to the Akron general office in 3Q24 (3) Refer to slides 48-49 for more informa
Slide 53: Forward-Looking Statements
Forward-Looking Statements 53 This FactBook includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These stat
Slide 54: Non-GAAP Financial Matters
Non-GAAP Financial Matters 54 This presentation contains references to certain financial measures including Baseline O&M, Core earnings per share (“Core EPS”) and Operating earnings per share (“Operating EPS”), as “non-GAAP financial measures,” which are not calculated in accordance with U.S. Genera