Slide 1: 3Q 2023 Strategic & Financial Highlights
3Q 2023 Strategic & Financial Highlights Brian X. Tierney, President & CEO K. Jon Taylor, SVP & CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements: This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such statements are subject to certain risks and uncertainti
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including, among others, Operating earnings (loss) and Operating earnings (loss) per share (“EPS”), including by segment, and the impact of special items on the following measures, Total revenues, Total o
Slide 4: Focus of Today's Call
Focus of Today’s Call Brian X. Tierney – President and Chief Executive Officer ■ Strengthened balance sheet, strong financial discipline, and continuous improvement to ensure a bright future ■ Strong financial flexibility in current interest rate environment ■ Organizing company to facilitate greate
Slide 5: Financial Overview
Financial Overview Key Highlights 2023 vs 2022 Results Delivered 3Q23 Operating earnings at Third Quarter YTD September upper end of 3Q guidance range $1.94 $1.91 $0.88 $0.79 $0.74 $1.66 Strong financial flexibility in current $0.58 interest rate environment $1.42 Increasing 2023 investment plan to
Slide 6: Our Bright Future
Our Bright Future Key Developments In September, our Board declared a quarterly dividend of $0.41/sh, payable December 1st, Dividend Increase representing a 5% increase Our active regulatory calendar supports our investment plan to improve reliability, resiliency, and the customer experience • Maryl
Slide 7: Delivering Financial Results: 3Q 2023 Earnings Summary
Delivering Financial Results 3Q 2023 Earnings Summary Quarter-over-Quarter Operating EPS Summary 3Q23 GAAP Earnings from Continuing Operations $0.74 per share (vs. $0.58 per share in 3Q22) – 3Q 2023 results include ($0.14) of special items, including Enhanced employee retirement and other related co
Slide 8: Delivering Financial Results: YTD September 2023 Earnings Summary
Delivering Financial Results YTD September 2023 Earnings Summary Year-over-Year Operating EPS Summary YTD GAAP Earnings from Continuing Operations $1.66 per share (vs. $1.42 per share in YTD 22) – YTD 2023 results include ($0.28) of special items, including Debt-related costs ($0.05), Enhanced emplo
Slide 9: Focused on Financial Commitments
Focused on Financial Commitments ■ Narrowing 2023 Operating Earnings Guidance of $2.49-$2.59/sh Increased 2023 investment plan by ~9% to ~$3.7B (from $3.4B) Segment Ranges RD $1.62 - $1.66 +$0.09 Pension RT $0.87 - $0.89 +$0.04 ST Debt Expect base O&M to be ~15% below 2022A and ~4% below plan Corp $
Slide 10: Executing on Our Regulatory Strategy
Executing on Our Regulatory Strategy NJ (Filed 3/16) Engaged in settlement discussions OH (May) MD (Filed 3/22) Revenue increase of $28M; new rates effective 10/19/2023 PA (1Q24) WV (Filed 5/31) 2023 Hearings to begin 1/24/24; new rates expected in March 2024 2024 Base Rate Case Filings Base Rate Ca
Slide 11: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community TABLE OF CONTENTS (Slide) 12. 3Q Earnings Summary and Reconciliation 13. 3Q Earnings Drivers by Segment 14. YTD Earnings Summary and Reconciliation 15. YTD Earnings Drivers by Segment 16. Special Items Descriptions 17. 3Q 2023 Earnings Results 18. 3Q 20
Slide 12: Quarterly Summary and Reconciliation
Quarterly Summary 3Q 2023 3Q 2022 Change GAAP Earnings from Continuing Operations Per Basic Share $0.74 $0.58 $0.16 Special Items $0.14 $0.21 $(0.07) Operating (Non-GAAP) Earnings Per Share $0.88 $0.79 $0.09 Quarterly Reconciliation EPS Variance Analysis Regulated Regulated Corporate / FirstEnergy C
Slide 13: Earnings Drivers: 3Q 2023 vs. 3Q 2022
Earnings Drivers: 3Q 2023 vs. 3Q 2022 Regulated Distribution (RD) ▪ Rates & Investments +$0.04: Higher revenues from formula rate investment programs in Ohio, Pennsylvania, New Jersey, and Maryland, as well as lower Ohio rate credits ▪ Customer demand ($0.04): Primarily due to lower weather-related
Slide 14: YTD September Summary and Reconciliation
YTD September Summary 2023 2022 Change GAAP Earnings from Continuing Operations Per Basic Share $1.66 $1.42 $0.24 Special Items $0.28 $0.49 $(0.21) Operating (Non-GAAP) Earnings Per Share $1.94 $1.91 $0.03 YTD September Reconciliation EPS Variance Analysis Regulated Regulated Corporate / FirstEnergy
Slide 15: Earnings Drivers: YTD September 2023 vs. YTD September 2022
Earnings Drivers:YTD September 2023 vs. YTD September 2022 Regulated Distribution (RD) ▪ Rates & Investments +$0.07: Higher revenues from formula rate investment programs across all states, as well as lower Ohio rate credits ▪ Customer demand ($0.17): Primarily due to lower weather-related demand ($
Slide 16: Special Items Descriptions
Special Items Descriptions ▪ Debt-related costs: Primarily reflects costs associated with the redemption and early retirement of debt. ▪ Elimination of intersegment interest on FET proceeds: Intercompany interest expense/income between RT and Corp/Other associated with the proceeds from the FET 19.9
Slide 17: 3rd Quarter 2023
3rd Quarter 2023 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 2,979 $ 508 $ (44) $ 3,443 $ — $ — $ — $ — $ 2,979 $ 508 $ (44) $ 3,443 (2) Other 55 1 (12) 44 — — — — 55 1 (12) 44 (3) Total Revenues 3
Slide 18: 3rd Quarter 2022
3rd Quarter 2022 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 2,972 $ 502 $ (39) $ 3,435 $ — $ 58 (f) $ — $ 58 $ 2,972 $ 560 $ (39) $ 3,493 (2) Other 51 1 (12) 40 — — — — 51 1 (12) 40 (3) Total Reve
Slide 19: 3rd Quarter 2023 vs 3rd Quarter 2022
3rd Quarter 2023 vs 3rd Quarter 2022 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 7 $ 6 $ (5) $ 8 $ — $ (58) $ — $ (58) $ 7 $ (52) $ (5) $ (50) (2) Other 4 — — 4 — — — — 4 — — 4 (3) Total Revenues 1
Slide 20: YTD September 2023
YTD September 2023 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 8,233 $ 1,486 $ (130) $ 9,589 $ — $ 7 (g) $ — $ 7 $ 8,233 $ 1,493 $ (130) $ 9,596 (2) Other 169 4 (38) 135 — — — — 169 4 (38) 135 (3)
Slide 21: YTD September 2022
YTD September 2022 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 7,878 $ 1,393 $ (115) $ 9,156 $ — $ 61 (f) $ — $ 61 $ 7,878 $ 1,454 $ (115) $ 9,217 (2) Other 160 4 (38) 126 — — — — 160 4 (38) 126 (3
Slide 22: YTD September 2023 vs YTD September 2022
YTD September 2023 vs YTD September 2022 (in millions, except for per share amounts) GAAP Special Items Operating (Non-GAAP) RD RT Corp FE RD RT Corp FE RD RT Corp FE (1) Electric sales $ 355 $ 93 $ (15) $ 433 $ — $ (54) $ — $ (54) $ 355 $ 39 $ (15) $ 379 (2) Other 9 — — 9 — — — — 9 — — 9 (3) Total
Slide 23: Quarterly Support
Quarterly Support TABLE OF CONTENTS (Slide) Strategic & Regulatory Quarterly Support 24. 2023 Regulatory Calendar 31. TTM Actual Sales by Class 25. RD Segment- State ROEs 32. TTM Weather-Adjusted Sales 26. JCP&L Base Rate Case 33. TTM Weather Impacts 27. Maryland Base Rate Case 34. Credit Ratings Su
Slide 24: 2023 Regulatory Calendar
2023 Regulatory Calendar Select Proceedings Jurisdiction Regulatory Matter Key Dates • OH Grid Mod II • Application filed 7/15/22; Intervenor testimony filed on 10/20/23; PUCO Staff testimony due 11/3/23; Hearing to begin 12/11/23 Ohio • Electric Security Plan (ESP V) • Filed on 4/5/23; Intervenor t
Slide 25: RD Segment – State ROEs
RD Segment – State ROEs TTM 9/30/23 As updated in As filed in As updated in pending rate case pending rate case pending rate case 10% 9.0% 6.2% 7.7% 5% 4.1% 4.0% 0% (2) (2) (2) OH PA NJ WV MD Rate base at 9/30/23 $4.2B $6.5B $3.1B $3.2B $0.7B Equity/Total Capitalization(1) 49% 49% 52% 49% 54% ROE EP
Slide 26: JCP&L Base Rate Case Filing
JCP&L Base Rate Case Filing Filed 3/16/23; Updated 6/2/23 (Docket Number: ER23030144) Key Statistics Proposed rate adjustment supports investments that strengthen the energy grid, enhance the customer Proposed Proposed Current Current Filing experience and fund new low-income and senior citizen Dist
Slide 27: MD Base Rate Case Summary
MD Base Rate Case Summary Filed 3/22/23; Updated 5/16/23; Order issued 10/18/23 (Case No. 9695) Key Statistics Approved Prior Rate adjustment supports recent reliability investments, Distribution Rate Base $682M $462M Summary ongoing tree trimming, and inspections of lines, poles and substations, wh
Slide 28: Ohio Electric Security Plan (ESP) V Regulatory Filing
Ohio Electric Security Plan (ESP) V Regulatory Filing Filed 4/5/23 (Case Record: 23-0301-EL-SSO) Background Filing Summary • Utilities are required to file applications to establish either an ESP or a Market Rate Offer to • Focus on reliability, affordability, and stewardship provide customers defau
Slide 29: WV Regulatory Filing
WV Regulatory Filing Filed 5/31/23 (Case No: 23-0460-E-42T) Key Statistics Proposed rate adjustment supports distribution and generation investments, addresses depreciation rates for Proposed Current Filing generation assets and provides for additional funding for a Rate Base $3.2B(1) $2.5B(1) Summa
Slide 30: PA Legal Entity Consolidation Summary
PA Legal Entity Consolidation Summary Settlement Filed 8/30/23 Overview ■ FE’s 4 PA subsidiaries Met-Ed (ME), Penelec (PN), Penn Power (PP), and West Penn Power (WPP) filed a settlement agreement to merge into FirstEnergy Pennsylvania PA Consolidation provides regulatory, Electric Company (FE PA), a
Slide 31: Actual Sales by Class
Actual Sales by Class Percent change vs. prior year 4Q22 1Q23 2Q23 3Q23 TTM 3.1% 1.7% 2.0% 1.3% 0.6% 0.6% 0.0% -0.5% -1.2% -1.7% -2.5% -3.5% -3.5% -4.9% -4.9% -5.3% -6.4% -7.1% -8.4% -10.8% Residential Commercial Industrial Total (MWh in thousands) 4Q21 4Q22 1Q22 1Q23 2Q22 2Q23 3Q22 3Q23 TTM 3Q22 TT
Slide 32: Actual Weather-Adjusted Sales by Class
Actual Weather-Adjusted Sales by Class Percent change vs. prior year 4Q22 1Q23 2Q23 3Q23 TTM 5.4% 2.3% 2.3% 1.7% 1.5% 1.5% 1.3% 1.2% 1.2% 0.6% 0.7% 0.1% 0.0% -0.4% -0.5% -0.4% -1.1% -1.6% -2.4% -3.1% Residential Commercial Industrial Total (MWh in thousands) 4Q21 4Q22 1Q22 1Q23 2Q22 2Q23 3Q22 3Q23 T
Slide 33: Weather Impacts
Weather Impacts 500 400 300 200 100 0 150 400 650 900 1,150 HDD CDD HDD Norm CDD Norm 1,400 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Total EPS Impact OH PA NJ WV MD Total 3Q YTD Days % Days % Days % Days % Days % Days % HDD vs Weather v
Slide 34: Credit Ratings
Credit Ratings As of 10/23/23 Issuer/Corporate Family Senior Secured Senior Unsecured Outlook/Watch Most Recent Ratings Actions S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch FirstEnergy Corp.(*) BBB- Ba1 BBB- BB+ Ba1 BBB- P P S • On February 10, 2023, S&P changed the outloo
Slide 35: Credit Profile
Credit Profile As of 10/23/23 Focused on Investment-Grade ratings Strong Liquidity • FFO/Debt target of ~14%-15% • Available Liquidity: $5.3B, includes ~$106M of cash and cash • Remain focused on lowering FE Corp. Holdco debt as a equivalents percentage of total Balance Sheet debt • $5.65B Revolving