Firstenergy Corp. · NYSE:FE
Firstenergy — CEO Energy-Power Conference 2016
14 slides from Firstenergy's conference presentation, Sep 8, 2016
Slide 1: CEO Energy-Power Conference
CEO Energy-Power Conference James F. Pearson, EVP and CFO September 8, 2016
Slide 2: Forward-Looking Statement
Forward-Looking Statement September 8, 2016 CEO Energy-Power Conference This presentation includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding manage
Slide 3: Non-GAAP Financial Matters
Non-GAAP Financial Matters This presentation contains references to non-GAAP financial measures including, among others, Operating earnings. In addition, Basic EPS and Basic EPS-Operating, each calculated on a segment basis, are also non-GAAP financial measures. Generally, a non- GAAP financial meas
Slide 4: Agenda
Agenda ■ FirstEnergy Overview ■ Regulatory and Business Update – Regulated Distribution – Regulated Transmission – Competitive Energy Services ■ Financial Update ■ Continued Focus in 2016 September 8, 2016 CEO Energy-Power Conference 4
Slide 5: FirstEnergy Overview: Strength in Our Diversity and Scale
FirstEnergy Overview Strength in Our Diversity and Scale September 8, 2016 CEO Energy-Power Conference 5 OH VA WV PA MD NJ MI IN IL Utility footprint Competitive retail footprint Jointly Owned Plant Regulated Plants Competitive Generating Plants 230, 345 and 500 kV Transmission Lines Regulated Distr
Slide 6: Regulated Distribution: Customer-Focused Growth
Regulated Distribution Customer-Focused Growth ■ Pennsylvania Rate Cases – April 28: Filed requested revenue increase of $439M across four PA utilities – Proposed new base rates include revenue associated with a portion of Long-Term Infrastructure Improvement Plan Capital of $245M over 5 years; the
Slide 7: Regulated Transmission: Growth through Energizing the Future
Regulated Transmission Growth through Energizing the Future ■ Energizing the Future – $4.2B over 2014-2017 – Projects designed to make our system more reliable, robust, secure and resistant to extreme weather events, with improved operational flexibility – Program, now in its third year, remains on
Slide 8: Competitive Energy Services: Risk-mitigated approach focused on cash
Competitive Energy Services Risk-mitigated approach focused on cash ■ 2019/2020 PJM Base Residual Auction results – Expect capacity revenues of ~$352M for 2019/2020 planning year – 85% of all CES units cleared – totaling 9,671 MW – 97% cleared as Capacity Performance (CP) – totaling 9,389 MW – CP Pr
Slide 9: Financial Update
Financial Update ■ 2016 Earnings* ■ Financial Plan – Completed ~$371M tax exempt bond remarketings and have a commitment to close on additional $100M in mid-September ■ Cash Flow Improvement Plan – Remain on track to capture initial savings of $155M in 2016 and $240M annually by 2017 – Results from
Slide 10: Continued Focus in 2016
Continued Focus in 2016 ■ Safety is our top priority ■ Strong focus on customer service-driven regulated growth ■ Operational excellence across FirstEnergy ■ Continue implementation of Cash Flow Improvement Plan ■ Achieve solid financial performance ■ Improve financial health of FirstEnergy ■ Commit
Slide 11: Appendix
September 8, 2016 CEO Energy-Power Conference 11 Appendix
Slide 12: 2016F GAAP to Operating (Non-GAAP) Earnings Reconciliation
2016F GAAP to Operating (Non-GAAP) Earnings1 Reconciliation (In millions, except per share amounts) September 8, 2016 CEO Energy-Power Conference 12 2016 Forecast FirstEnergy Consolidated Regulated Distribution Regulated Transmission Competitive Energy Services Corporate/ Other Net Income (Loss) – G
Slide 13: 2016 Forecast Special Items by Segment
2016 Forecast FirstEnergy Consolidated Regulated Distribution Regulated Transmission Competitive Energy Services Corporate/ Other Pre-Tax After-Tax EPS Pre-Tax After-Tax EPS Pre-Tax After-Tax EPS Pre-Tax After-Tax EPS Pre-Tax After-Tax EPS Regulatory Charges $89 $57 $0.13 $89 $57 $0.13 - - - - - - -
Slide 14: 3Q 2016F GAAP to Operating (Non-GAAP) Earnings Reconciliation and Special Items
3Q 2016F GAAP to Operating (Non-GAAP) Earnings1 Reconciliation and Special Items (In millions, except per share amounts) September 8, 2016 CEO Energy-Power Conference 14 1 Operating earnings exclude special items as described in the reconciliation table above and is a non-GAAP financial measure 2 Pe