Slide 1: 1Q 2023 Strategic & Financial Highlights
1Q 2023 Strategic & Financial Highlights John W. Somerhalder II, Interim President & CEO & Chair of the FE Board 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), Operating earnings (loss) per share (“EPS”), and Operating EPS by segment, and presents the impact of special items on the following measures, Total rev
Slide 4: Advancing our Business Strategy
Advancing our Business Strategy Focus of Today’s Call ■ Regulatory and business updates ■ Customer-focused, sustainable growth ■ Financial and operational performance Reported 1Q23 GAAP earnings of $0.51/sh and Operating (non-GAAP) earnings of $0.60/sh Brian X. Tierney, President & CEO ■ Effective J
Slide 5: Supporting the Energy Transition
Supporting the Energy Transition ■ Expanded partnership with Brookfield, who previously purchased a 19.9% interest in FET (closed May 2022) – Plan to file for FET 30% interest sale approval with PA PUC, VA SCC, and FERC by May 5, 2023 – Brookfield’s partnership supports our substantial long-term inv
Slide 6: Remain Confident in Our Regulated Growth Plans
Remain Confident in Our Regulated Growth Plans ■ Reaffirming 2023 Operating (non-GAAP) earnings guidance of $2.44- $2.64 per share and long-term 6-8% annual Operating EPS growth rate(1) – Expect Signal Peak earnings contribution of less than 15% of Operating EPS guidance midpoint in 2023 and less th
Slide 7: Executing on Our Regulatory Strategy
Executing on Our Regulatory Strategy NJ (Filed 3/16) OH (May) MD (Filed 3/22) WV (2Q) PA (1Q24) 2023 2024 Base Rate Case Filings Base Rate Case Filings J F M A M J J A S O N D J F M A M J J A Additional Filings NJ: Plan to file IIP in summer 2023 PA: Plan to file LTIIP PA / VA / FERC: Plan to file f
Slide 8: Delivering Financial Results
Delivering Financial Results 1Q 2023 Earnings Summary ■ Reported 1Q23 GAAP earnings of $0.51 per share vs. $0.51 per share in 1Q22 – 1Q 2023 results include ($0.09) of special items, including FE Forward cost to achieve ($0.05), investigation and other related costs ($0.03), and regulatory charges (
Slide 9: Earnings Supplement to the Financial Community
Earnings Supplement to the Financial Community TABLE OF CONTENTS (Slide) 10. 1Q Earnings Summary and Reconciliation 11. 1Q Earnings Drivers by Segment 12. Special Items Descriptions 13. 1Q 2023 Earnings Results 14. 1Q 2022 Earnings Results 15. Quarter-over-Quarter Earnings Comparison Irene M. Prezel
Slide 10: First Quarter Summary and Reconciliation
First Quarter Summary 2023 2022 Change GAAP Earnings Per Basic Share $0.51 $0.51 $— Special Items $0.09 $0.09 $— Operating (Non-GAAP) Earnings Per Share $0.60 $0.60 $— First Quarter Reconciliation EPS Variance Analysis Regulated Regulated Corporate / FirstEnergy Corp. (in millions, except per share
Slide 11: Earnings Drivers: 1Q 2023 vs. 1Q 2022
Earnings Drivers: 1Q 2023 vs. 1Q 2022 Regulated Distribution (RD) ▪ Investments +$0.02: Higher revenues from formula rate investment programs across our five-state footprint ▪ Customer demand ($0.06): Primarily due to lower weather-related demand ($0.12), partially offset by higher weather-adjusted
Slide 12: Special Items Descriptions
Special Items Descriptions ▪ Regulatory charges: Primarily reflects the impact of regulatory agreements, proceedings, audits, concessions or orders requiring certain commitments, refunds, and/or disallowing the recoverability of costs, net of related credits. ▪ State tax legislative changes: Primari
Slide 13: 1Q 2023 Earnings Results
1Q 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 $ 2,772 $ 460 $ (43) $ 3,189 $ — $ 7 (a) $ — $ 7 $ 2,772 $ 467 $ (43) $ 3,196 (2) Other 54 1 (13) 42 — — — — 54 1 (13) 42 (3) Total Revenues 2,826
Slide 14: 1Q 2022 Earnings Results
1Q 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 $ 2,532 $ 451 $ (39) $ 2,944 $ — (a) $ 2 (a) $ — $ 2 $ 2,532 $ 453 $ (39) $ 2,946 (2) Other 57 2 (14) 45 — — — — 57 2 (14) 45 (3) Total Revenues 2,
Slide 15: 1Q 2023 vs 1Q 2022
1Q 2023 vs Q1 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 $ 240 $ 9 $ (4) $ 245 $ — $ 5 $ — $ 5 $ 240 $ 14 $ (4) $ 250 (2) Other (3) (1) 1 (3) — — — — (3) (1) 1 (3) (3) Total Revenues 237 8 (3)
Slide 16: Quarterly Support
Quarterly Support TABLE OF CONTENTS (Slide) Strategic & Regulatory Quarterly Support 17. 2023 Regulatory Calendar 22. TTM Actual Sales by Class 18. TTM ROE 23. TTM Weather-Adjusted Sales 19. JCP&L Base Rate Case 24. TTM Weather Impacts 20. Maryland Base Rate Case 25. Credit Ratings Summary 21. Ohio
Slide 17: 2023 Regulatory Calendar
2023 Regulatory Calendar Select Proceedings Jurisdiction Regulatory Matter Key Dates • OH Grid Mod II • Application filed 7/15/22; Pending procedural schedule Ohio • Electric Security Plan (ESP V) • Filed on 4/5/23; Technical conference on 5/10/23 • HB6 Related Investigations • On 3/8/23, PUCO grant
Slide 18: RD Segment – State ROEs
RD Segment – State ROEs TTM 3/31/2023 As filed in pending rate case As reported as of 12/31/22. As filed in pending rate case using test year ending in An update will be provided using historical test year June 2023. once rate case is filed. ending in 12/31/2022. 10% 8.3% 8.2% 6.6% 5.1% 4.1% 5% 0% (
Slide 19: JCP&L Base Rate Case Filing
JCP&L Base Rate Case Filing Filed 03/16/23 (Docket Number: ER23030144) Key Key Statistics 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 20: MD Base Rate Case Filing
MD Base Rate Case Filing Filed 03/22/23 (Case No. 9695) Key Statistics Proposed rate adjustment supports investments to build on recent reliability investment through additional energy grid Proposed Current Filing upgrades, ongoing tree trimming, inspections of lines, poles Distribution Rate Base $7
Slide 21: Electric Security Plan (ESP) V Regulatory Filing
Electric Security Plan (ESP) V Regulatory Filing Filed 04/05/23 (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 default
Slide 22: Actual Sales by Class
Actual Sales by Class Percent change vs. prior year 2Q22 3Q22 4Q22 1Q23 TTM 3.1% 2.4% 1.8% 1.7% 2.0% 1.5% 1.4% 0.7% 0.6% 0.0% -0.5% -0.7% -1.0% -1.3% -1.6% -1.7% -2.2% -5.3% -7.1% -8.4% Residential Commercial Industrial Total (MWh in thousands) 2Q21 2Q22 3Q21 3Q22 4Q21 4Q22 1Q22 1Q23 TTM 1Q22 TTM 1Q
Slide 23: Actual Weather-Adjusted Sales by Class
Actual Weather-Adjusted Sales by Class Percent change vs. prior year 2Q22 3Q22 4Q22 1Q23 TTM 5.4% 2.4% 2.3% 1.9% 1.8% 1.7% 1.5% 1.4% 1.3% 0.8% 0.8% 0.1% 0.0% -0.4% -0.4% -0.6% -0.5% -1.7% -1.6% -1.6% Residential Commercial Industrial Total (MWh in thousands) 2Q21 2Q22 3Q21 3Q22 4Q21 4Q22 1Q22 1Q23 T
Slide 24: Weather Impacts
Weather Impacts 500 400 300 200 100 0 150 400 650 900 1,150 HDD CDD HDD Norm CDD Norm 1,400 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 OH PA NJ WV MD Total Days % Days % Days % Days % Days % Days % EPS Impact HDD vs Normal -553 -18% -466
Slide 25: Credit Ratings
Credit Ratings As of April 24, 2023 Issuer/Corporate Family Senior Secured Senior Unsecured Outlook/Watch 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 Allegheny Generating Co. BB+ Baa2 BBB P S S American Transmission S
Slide 26: Credit Profile
Credit Profile As of April 24, 2023 Focused on Investment-Grade ratings Strong Liquidity ▪ FFO/Debt target of ~14%-15% ▪ Available Liquidity: $3.9B, includes ~$130M of cash and cash ▪ Remain focused on lowering FE Corp. Holdco debt as a equivalents percentage of total Balance Sheet debt ▪ $4.5B Revo
Slide 27: 2023F GAAP to Operating (Non-GAAP) Earnings Reconciliation
2023F GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 2023F Regulated Regulated Corporate/ FirstEnergy (In $M, except per share amounts) Distribution Transmission Other Consolidated 2023F Earnings (Loss) Attributable to FirstEnergy Corp. (GAAP) $895 – $965 $495 – $505 ($40) – ($5) $1,350 – $
Slide 28: 2023 Special Items
2023 Special Items(1) ■ Regulatory Charges – Primarily reflects the impact of regulatory agreements, proceedings, audits, concessions or orders requiring certain commitments, refunds, and/or disallowing the recoverability of costs, net of related credits. ■ Debt-Related Costs – Primarily reflects co