FirstEnergy Corp. · NYSE:FE
FirstEnergy — Q3 2020 Earnings Presentation
77 slides from FirstEnergy's earnings presentation, Nov 2, 2020
Slide 1: Investor FactBook 3Q 2020
Investor FactBook 3Q 2020 Published November 2, 2020
Slide 2: Table of Contents
Table of Contents 1. FirstEnergy Overview…………………...3-9 2. Regulated Transmission……………..10-20 3. Regulated Distribution………………. 21-39 4. Corporate Responsibility……………. 40-45 5. Quarterly Updates…………………… 46-54 6. Guidance and Financials…………….55-69 7. Other Materials………………………. 70-77 Unless otherwise not
Slide 3: FirstEnergy Overview
FirstEnergy Overview 3 Published November 2, 2020
Slide 4: Forward-thinking electric utility overview
We are a forward-thinking electric utility powered by a diverse team of employees committed to making customers’ lives brighter, the environment better and our communities stronger $43 B 6 M 24.5K Total Customers in Transmission Total Assets Six States Miles 65 K $23 B 12 K Square Miles of 2020F Rat
Slide 5: FE's Value Proposition
FE’s Value Proposition Ticker: FE A premier customer-focused, pure-play regulated utility Driving sustainable, long-term regulated Focus on maintaining balance sheet strength and earnings growth and a competitive dividend flexibility 10 distribution utilities, Operating EPS CAGR Proven track record
Slide 6: Balance Sheet Overview & Strategy
Balance Sheet Overview & Strategy Low Business Risk Focused on Financial Flexibility Continuous Improvement • Fully regulated; substantially all T&D • Baa3 | BB+ | BBB- • FE HoldCo debt as a % of total assets (FE Corp. Sr. Unsecured: Moody’s, S&P, Fitch) debt expected to decline over time • Geograph
Slide 7: Corporate structure of subsidiaries
FirstEnergy Metropolitan Monongahela Ohio Edison Co. Transmission, LLC Edison Co. Power Co. (OE) (FET) (ME) (MP) American Pennsylvania Pennsylvania Allegheny Transmission Power Co. Electric Co. Generating Co. Systems Inc. (PP) (PN) (AGC) (ATSI) Trans-Allegheny Cleveland Electric West Penn Potomac In
Slide 8: Political Overview
(P) President Political Overview (C) Chair (VC) Vice Chair Governor Governor Governor Michael DeWine R 2023 Thomas W. Wolf D 2023 Phillip D. Murphy D 2022 PUCO PA PUC NJ BPU Samuel Randazzo (C) I 2024 Gladys Dutrieuille (C) D 2023 Joseph L. Fiordaliso (P) D 2025 M. Beth Trombold (VC) I 2023 David W.
Slide 9: Regulatory Calendar
Regulatory Calendar Key Proceedings Jurisdiction Key Dates OHIO • ESP IV Quadrennial Review Testimony…………………………………………………………………………………….... By March 1, 2021 • ESP IV ends……………………………...……………………………….………........................................................................... May 2024 NEW JERSEY • JCP&
Slide 10: Regulated Transmission
Regulated Transmission 10 Published November 2, 2020
Slide 11: Regulated Transmission: A Premier, Fast-Growing Business
REGULATED TRANSMISSION A PREMIER, FAST-GROWING TRANSMISSION BUSINESS One of the largest transmission systems in PJM with 24.5K miles of transmission lines. Focused on Energizing the Future and improving the reliability of our nation’s electric grid. FERC-regulated, forward-looking rates at ATSI, TrA
Slide 12: Energizing the Future
Energizing the Future A PREMIER TRANSMISSION INVESTMENT PROGRAM Responsibly Modernizing the Grid ~24,500 Miles ▪ Investing between $1.2B-1.45B annually through of transmission lines, comprising one of 2023 on customer-focused initiatives the largest transmission systems in the PJM interconnection ▪
Slide 13: Regulated Transmission Capital Deployment Plan
Regulated Transmission Capital Deployment Plan WPP, MP, PE ~$835M | ~11% JCP&L ~$1,005M | ~13% ATSI ~$2,605-2,855M | ~38% $7.1-7.6B ~$1,200-1,450M CapEx per year 2018-2023 MAIT ~$2,450-2,700M | ~35% TrAILCo ~$240M | ~3% $ 20 FUTURE B+ OPPORTUNITIES beyond 2023… 13 Published November 2, 2020
Slide 14: Regulated Transmission Capital Plan (2018-2023)
Regulated Transmission Capital Plan (2018-2023) Energizing the Future Plan ~$7.1-7.6B in capital investments ($M) 2018A 2019A 2020F 2021F 2022F 2023F ATSI $465 $471 $410 $405 $435-560 $420-545 TrAILCo 35 40 85 40 20 20 MAIT 409 424 375 395 430-555 415-540 JCP&L 107 134 175 180 185 225 WPP, MP, PE 14
Slide 15: Regulated Transmission Rate Base Growth (2018-2023)
Regulated Transmission Rate Base Growth (2018-2023) ~10% Expected $M Rate Base CAGR 10,000 9,570 9,010 9,000 2019A 940 8,330 6,945 900 8,000 7,640 1,250 790 6,915 1,150 690 7,000 1,050 6,030 635 945 1,355 1,400 6,000 455 845 1,415 830 1,465 5,000 2,295 1,490 1,995 4,000 1,450 1,695 1,320 1,020 3,000
Slide 16: ATSI Overview
ATSI Overview Jurisdiction FERC Test Year Forward-Looking Term January – December Filing Month October Allowed ROE 10.38% Rate Base $3.5B(1) Cap Structure 40% Debt / 60% Equity(1) Location OE, PP, CEI, and TE 69 kV Ohio Edison True-Up Mechanism Yes 138 kV Penn Power 345 kV The Illuminating Company (
Slide 17: TrAILCo Overview
TrAILCo Overview Jurisdiction FERC Test Year Forward-Looking OH PA Term June – Following May Filing Month May MD 12.7% (TrAIL the Line & Black Oak SVC) Allowed ROE 11.7% (All other projects) VA WV Rate Base $1.5B(1) Cap Structure 40% Debt / 60% Equity(1) WPP, MP, and PE as well as Location some port
Slide 18: MAIT Overview
MAIT Overview Jurisdiction FERC Test Year Forward-Looking Term January – December Filing Month October Allowed ROE 10.3% Rate Base $1.6B(1) Cap Structure 40% Debt / 60% Equity(1) Location ME, PN 46 kV 230 kV Penelec 69 kV 345 kV Met-Ed True-Up Mechanism Yes 115 kV 500 kV (1) Represents projected ave
Slide 19: JCP&L Transmission Overview
JCP&L Transmission Overview ■ On October 30, 2019, JCP&L filed to implement a forward-looking formula rate, requesting rates to be effective January 1, 2020 ■ On December 19, 2019, FERC issued an order accepting JCP&L’s proposed revisions, for rates that became effective January 1, 2020, subject to
Slide 20: WPP, MP, PE Transmission Overview
WPP, MP, PE Transmission Overview ■ Represents the transmission systems of WPP, MP and PE(1) which comprise the Allegheny Power Zone in PJM ■ On October 29, filed to move to a forward-looking formula rate, requesting rates to be effective January 1, 2021 ■ Keystone Appalachian Transmission Company (
Slide 21: Regulated Distribution
Regulated Distribution 21 Published November 2, 2020
Slide 22: Regulated Distribution
REGULATED DISTRIBUTION A DIVERSE COLLECTION OF UTILITIES DELIVERING SUSTAINABLE GROWTH Territory spans 65k sq. mi. across the Midwest & Mid-Atlantic regions - one of the largest contiguous territories in the USA. Focused on investments that customers value and are willing to pay for while providing
Slide 23: Regulated Distribution Capital Plan (2018-2023)
Regulated Distribution Capital Plan (2018-2023) $10.2B in capital investments 2018-2023 ($M) 2018A 2019A 2020F 2021F 2022F 2023F Ohio Ohio $370 $400 $530 $585 $560 $560 Stated 85 70 70 70 70 70 Formula 285 330 460 515 490 490 Pennsylvania Pennsylvania $666 $684 $585 $550 $565 $565 Stated 446 457 415
Slide 24: 2018A-2020F Regulated Distribution Capital Expenditures
2018A-2020F Regulated Distribution Capital Expenditures ($M) 2018A 2019A 2020F Ohio Ohio $370 $400 $530 CEI 156 161 205 OE 165 180 245 TE 49 59 80 Pennsylvania Pennsylvania $666 $684 $585 ME 194 207 180 PN 191 178 180 PP 54 56 50 WPP 227 243 175 New New Jersey Jersey (JCP&L) (JCP&L) $268 $299 $300 W
Slide 25: Regulated Distribution Rate Base Growth (2018-2023)
Regulated Distribution Rate Base Growth (2018-2023) ~4% Expected $M Rate Base CAGR 18,000 2019A 17,050 17,620 14,820 16,360 550 15,560 525 16,000 505 14,800 3,200 14,345 490 3,100 440 2,985 14,000 505 2,850 2,765 2,760 2,840 12,000 2,785 2,725 2,625 10,000 2,505 2,430 8,000 6,290 5,885 6,115 5,415 5
Slide 26: Weather-Adjusted Distribution Deliveries
Weather-Adjusted Distribution Deliveries ‘18A-’21F ‘18A-’23F ‘18A ‘19A ‘20F ‘21F ‘22F ‘23F CAGR % CAGR % ■ Load forecast updated to reflect the impact Sub- 53.4 53.6 56.2 53.1 52.6 52.6 -0.2% -0.3% Total of COVID-19, economic conditions, and Residential OH 17.0 16.9 17.7 16.5 16.3 16.3 -0.8% -0.7% r
Slide 27: Regulated Distribution Guidance Sensitivities
Regulated Distribution Guidance Sensitivities Weather Impact on Residential/Commercial Sales Volumes + / - 113 HDD vs. normal (Dec-Mar) ~$0.01/share + / - 37 CDD vs. normal (June-Sept) ~$0.01/share 202019 ANNUAL BASE DISTRIBUTION REVENUES Estimated Impact of Annual Retail Sales Volumes 19% 9% + / -
Slide 28: Commercial and Industrial Billing Demands
Commercial and Industrial Billing Demands ■ Customers’ bills are based on the greater of – Maximum measured demand – Minimum billing demand – Contract Demand – Revenue minimums ■ Billing demand provisions help mitigate short-term energy usage changes – Customer billed for the maximum amount of usage
Slide 29: Average Customer Bills
Average Customer Bills Rates Effective January 1, 2020 OHIO PENNSYLVANIA [state avg $87] [state avg $137] AEP AEP ME PN PP WPP DUQ PECO PPL CEI OE TE (CS) (OP) DP&L DUK $88 $90 $94 $94 $89 $149 $155 $85 $135 $142 $134 $130 $71 $114 NEW JERSEY WEST VIRGINIA MARYLAND [state avg $118] [state avg $117]
Slide 30: Ohio Overview (1 of 2)
Ohio Overview (1 of 2) CUSTOMERS: 2.1M INDUSTRIES SERVED: Primary and Fabricated REGULATORY STRATEGY Metals, Chemical, Automotive, Petroleum, Plastics & Rubber ❑ Utilities are required to file applications to establish either an Electric Security Plan (ESP) or a Market Rate Offer to provide customer
Slide 31: Ohio Overview (2 of 2)
Ohio Overview (2 of 2) ROE TRENDS - REGULATORY VIEW RECOVERY MECHANISMS 10.9% Rider Overview Reconciled 8.8% 7.4% Recovers return on/of incremental rate base since 6.2% DCR Quarterly last rate case; subject to annual revenue caps Decouples residential and commercial customers’ base distribution reve
Slide 32: Pennsylvania Overview (1 of 2)
Pennsylvania Overview (1 of 2) CUSTOMERS: 2.1M INDUSTRIES SERVED: Primary and Fabricated REGULATORY STRATEGY Metals, Shale Gas, Chemical, Coal Mining, Electric Equipment ❑ Continuously review considerations and timing of future rate cases Manufacturing ❑ LTIIPs for the 2020-2024 period were approved
Slide 33: Pennsylvania Overview (2 of 2)
Pennsylvania Overview (2 of 2) ROE TRENDS – REGULATORY VIEW RECOVERY MECHANISMS Rider Overview Reconciled 9.3% 8.8% 8.7% 8.5% 8.3% 8.0% 7.9% 7.9% 7.8% 7.8% 7.1% 6.9% 6.7% 6.6% 5.5% 5.5% Recovers acceleration of the repair, DSIC improvement, and replacement of existing aging Quarterly infrastructure
Slide 34: New Jersey Overview (1 of 2)
New Jersey Overview (1 of 2) CUSTOMERS: 1.1M INDUSTRIES SERVED: REGULATORY STRATEGY Chemical, Primary and Fabricated Metals, Food ❑ Base Rate Case filed on February 18, 2020; BPU approved settlement on Manufacturing, Plastic & October 28, 2020 Rubber ▪ $94M annual increase in distribution revenue ▪
Slide 35: New Jersey Overview (2 of 2)
New Jersey Overview (2 of 2) REGULATORY VIEW RECOVERY MECHANISMS ❑ IIP rate filings require an earnings test, which calculates a Rider Overview Reconciled book return based on FERC Form 1 and including limited Recover the above-market portion of payments adjustments NGC Annually ROE on Non-Utility G
Slide 36: West Virginia Overview (1 of 2)
West Virginia Overview (1 of 2) CUSTOMERS: 540K INDUSTRIES SERVED: Chemical, Coal Mining, Non-Metallic Minerals, Primary and Fabricated REGULATORY STRATEGY Metals, Oil & Gas Extractions ❑ Continuously review considerations and timing of future rate cases LAST APPROVED RATE CASE ❑ Integrated Resource
Slide 37: West Virginia Overview (2 of 2)
West Virginia Overview (2 of 2) ROE TRENDS – REGULATORY VIEW RECOVERY MECHANISMS 10.7% Rider Overview Reconciled 9.9% 9.8% 9.3% 9.2% 8.9% 8.8% 8.7% 8.6% 8.5% 7.9% Recovers generation-related fuel, purchased 4.4% ENEC power, and PJM costs, net of revenue credits Annually Recovers vegetation control p
Slide 38: Maryland Overview (1 of 2)
Maryland Overview (1 of 2) CUSTOMERS: 275K INDUSTRIES SERVED: Chemical, Coal Mining, Non- REGULATORY STRATEGY Metallic Minerals, Plastics and Rubber Products ❑ Current distribution base rates approved March 2019 ▪ Includes new Electric Distribution Investment Surcharge (EDIS) for LAST APPROVED RATE
Slide 39: Maryland Overview (2 of 2)
Maryland Overview (2 of 2) ROE TRENDS – REGULATORY VIEW RECOVERY MECHANISMS Rider Overview Reconciled 7.8% 7.2% 6.9% 6.0% Recovery for incremental investments of reliability programs for distribution automation, accelerated EDIS Annually underground cable replacement, and substation reclosers PE-MD
Slide 40: Corporate Responsibility
Corporate Responsibility 40 Published November 2, 2020
Slide 41: Corporate Responsibility
CORPORATE RESPONSIBILITY A FORWARD-THINKING ELECTRIC UTILITY Committed to making our customers’ lives brighter, the environment better and our communities stronger. Seek to inform and engage our stakeholders, while at the same time setting and achieving goals. Led by a dedicated team, along with Exe
Slide 42: ESG: Environmental Highlights
ESG: Environmental Highlights ■ 100% of new purchases for light-duty and aerial truck fleet to be electric or hybrid vehicles ■ Continue to implement Integrated Vegetation Management practices on transmission corridors to promote biological and ecological diversity ■ Helping customers reduce energy
Slide 43: ESG: Social Highlights
ESG: Social Highlights Employee-Focused ■ Continue to focus on safety culture – Experienced zero Systemwide Life Changing Events year-to-date ■ ~7,000 employees transitioned to work from home without interruptions due to COVID-19 ■ Support Diversity and Inclusion initiatives and business objectives
Slide 44: ESG: Governance Highlights
ESG: Governance Highlights ■ Strive to maintain a well-rounded and diverse Board of Directors – All Directors are independent 40% Diverse * 6.5 years (gender, race, ethnicity) 30% Female* Average Tenure* ■ Annual Key Performance Indicators (KPIs) have strong ties to Environmental Safety Diversity &
Slide 45: ESG: Frequently Asked Questions
ESG: Frequently Asked Questions Does FirstEnergy plan to report metrics using SASB guidance? Yes, our April 2020 Corporate Responsibility Report refresh includes SASB data tables. Has FirstEnergy disclosed climate related risks, including possible physical risks, in line with the TCFD’s recommendati
Slide 46: Quarterly Updates
Quarterly Updates 46 Published November 2, 2020
Slide 47: Sales by Class
Sales by Class Percent change vs. prior year 4Q19 1Q20 2Q20 3Q20 TTM 17.1% 5.1% 0.6% -2.4% -1.7% -3.1% -3.2% -3.0% -3.1% -4.3% -4.0% -5.5% -6.3% -5.8% -7.4% -7.8% -7.9% -11.7% -12.6% -14.4% Residential Commercial Industrial Total (MWh in thousands) 4Q18 4Q19 1Q19 1Q20 2Q19 2Q20 3Q19 3Q20 TTM 3Q19 TT
Slide 48: Weather Adjusted Sales by Class
Weather Adjusted Sales by Class Percent change vs. prior year 4Q19 1Q20 2Q20 3Q20 TTM 14.8% 5.3% 4.1% 0.1% -1.8% -1.3% -1.6% -1.7% -1.8% -2.4% -2.2% -2.2% -3.5% -3.8% -5.5% -6.2% -5.7% -6.4% -11.7% -14.5% Residential Commercial Industrial Total (MWh in thousands) 4Q18 4Q19 1Q19 1Q20 2Q19 2Q20 3Q19 3
Slide 49: Weather Impacts
Weather Impacts 400 300 200 100 0 250 500 750 1,000 1,250 HDD CDD HDD Norm CDD Norm Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 OH PA NJ WV MD Total Days % Days % Days % Days % Days % Days % CDD vs Normal 142 25% 144 23% 111 12% 184 31% 15
Slide 50: Bad Debt and COVID-19 Costs
Bad Debt and COVID-19 Costs Approval to Resume Detailed Tracking of Deferral of Incremental Disconnections on: COVID-19 Costs Bad Debt Expense Residential Non-Residential OH 10/5/2020 PA 11/9/2020 NJ 3/15/2021 10/15/2020 WV 11/4/2020 9/15/2020 MD 11/15/2020 10/1/2020 Notes: • To date, the NJBPU, WVP
Slide 51: Ohio Regulatory Proceedings Related to House Bill 6
Ohio Regulatory Proceedings Related to House Bill 6 ■ Show Cause Case – On September 15, 2020, the PUCO opened a new case directing the Ohio Companies to demonstrate that the costs of any political or charitable spending in support of House Bill 6, or the subsequent referendum effort, were not inclu
Slide 52: JCP&L Distribution Base Rate Case
JCP&L Distribution Base Rate Case ■ On February 18, 2020, JCP&L filed a base rate case with the NJ BPU ■ On October 28, 2020, NJ BPU approved JCP&L rate settlement Filing Settlement Revenue Increase $187M $94M ROE 10.15% 9.6% JCP&L’s residential rates remain the lowest Rate Base $2,599M $2,623M amon
Slide 53: JCP&L Advanced Metering Infrastructure (AMI) Filing
JCP&L Advanced Metering Infrastructure (AMI) Filing ■ On August 27, 2020, JCP&L filed for the installation of ~1.2M advanced meters and related infrastructure over three years with the NJ BPU 3-Year Deployment Budget (Capital / O&M) (1) $418M ($342M / $76M) Installation ~1.2M Advanced Meters and Inf
Slide 54: JCP&L Energy Efficiency and Conservation Plan
JCP&L Energy Efficiency and Conservation Plan (EE&C) ■ On September 25, 2020, JCP&L filed its Energy Efficiency and Conservation Plan with the NJ BPU EE&C Overview Programs 10 Energy Efficiency programs and 1 Peak Demand program Timeframe July 1, 2021 – June 30, 2024 Residential, multi-family, comme
Slide 55: Guidance and Financials
10 Operating Companies 6 States Guidance and Financials 6M Customers 55 Published November 2, 2020
Slide 56: 2018-2023 Operating EPS CAGR
Contributing Factors to CAGR Range 2018-2023 Operating EPS CAGR Cost Management Load Changes Excludes DMR and impact of weather Rate Strategy Storms Cap-Ex Levels Interest Rates Equity Pension Performance 6-8% Operating EPS(1) CAGR 2018-2021; 5-7% CAGR through 2023 $3.00 7% $2.75 8% 5% 2020F $2.40-$
Slide 57: 2020 Operating EPS Guidance
2020 Operating EPS(1) Guidance Remain on track to achieving 6-8% Operating EPS CAGR Original 2019 Guidance Range $2.45 - $2.75 ($2.35 Midpt, excl. DMR) 2020 Operating EPS Guidance Range 2020 Guidance Range Revised 2019 Guidance Range $2.50 - $2.60 Regulated Distribution $2.13 – $2.27 $2.40 - $2.60 R
Slide 58: Dividend Overview
Dividend(1) Overview Dividend TARGETED PAYOUT RATIO: Policy 55-65% Goal to continue dividend growth, as earnings increase, within the payout ratio Annual Dividends Per Share $1.56/sh $1.56/sh ▪ 2019: ~6% dividend increase $1.52/sh – Quarterly increase of $0.02 per share $1.44/sh ▪ 2020: ~3% dividend
Slide 59: Debt Financing Plan (2020-2023)
Debt Financing Plan (2020-2023) FE CORP REGULATED DISTRIBUTION Year Entity Amount Purpose Year Entity Amount Purpose Refinanced $1B of Term Loans ✓ PN $250M $250M at 5.2% matured 4/1/20 ✓ FE Corp $1.75B maturing in 2020 and 2021 and made 2020F ✓ PE $175M New Issuance 2020F FES settlement payment ✓ C
Slide 60: Pension/OPEB Overview
Pension/OPEB Overview Key assumptions for expense 2019 2020(1) Expected Return on Assets 7.50% 7.50% Overview Pension Discount Rate 4.44% 2.96% ■ FE is the sponsor of the benefit plans for employees at all of FE’s subsidiaries OPEB Discount Rate 4.30% 2.80% ■ Pension Status is Open (1) Updated as of
Slide 61: 2019 Pension/OPEB Summary
2019 Pension/OPEB Summary Pension/OPEB Funded Status (PBO): Year-End 2019A ($M) Corp FEU FES/FENOC Total Notes Qualified Pension ($807) ($356) ($1,040) ($2,203) 79% funded at 12/31/19 Non-Qualified Pension (217) (170) (65) (452) No minimum funding requirements OPEB 48 (343) 99 (196) No minimum fundi
Slide 62: Qualified Pension Funding
Qualified Pension Funding Qualified Pension Plan Funding Status – Qualified Pension Plan ■ Pension Contributions ($M) PBO Plan Assets – January 2018: $1,250M $12,000 $11,346 – February 2019: $500M $11,000 $10,598 ■ Required contributions: $9,747 $10,000 $ Millions 2020 2021 2022 2023 $9,077 77% As o
Slide 63: Capital Expenditures Forecast Summary
Capital Expenditures Forecast Summary $18B+ in capital investments; with majority on formula rates Annually Annually 2019A 2020F – 2021F 2022F – 2023F FE Consolidated Total $3.0B $3.0B $3.0-3.3B ($M) 2018A 2019A 2020F 2021F 2022F 2023F Regulated Distribution (~40% formula rates) $1,635 $1,698 $1,730
Slide 64: 2020 FFO and Free Cash Flow
2020 FFO and Free Cash Flow FE Consolidated ($M) 2020F Cash from Cash from Operations Operations (GAAP) (GAAP) $1,475 - $1,675 Working Capital/FES Tax Sharing Settlement(1) 92 - 62 Pension Contributions (2) - FES Bankruptcy Settlement Agreement (3) $853 Funds from Funds fromOperations Operations(FFO
Slide 65: Credit Ratings
Credit Ratings As of November 1, 2020 65 Published November 2, 2020
Slide 66: Financial Updates
Financial Updates Since July 24, 2020 (2Q 2020 Earnings Release) ■ Dividend: – On September 15, 2020, Board declared a quarterly dividend of $0.39 per share of outstanding common stock Declaration Date Payable Record Date 9/15/2020 12/1/2020 11/6/2020 ■ Rating Agency Actions: – On 10/30, Fitch Ratin
Slide 67: Credit Profile
Credit Profile $3.5B 59% $3.7B Credit Commitment $3.4B Revolving Credit Debt-to-Cap Available Liquidity Facilities (RCF) Covenant View from 24 Financial Institutions (as of 10/26/2020) 10% 11% Investment-grade, issue-level ratings at all utilities FFO/Debt CFO pre-WC/Debt threshold threshold Strong
Slide 68: Bank Covenant View of Debt-to-Cap Ratio
Bank Covenant View of Debt-to-Cap Ratio Compliant with RCF covenant; could incur $6.6B of additional debt capacity or $3.5B of equity decrease capacity Debt to Total Capitalization Ratio as 9/30/2020 12/31/2019 defined under the FE Credit Facility: $M % $M % Total Stockholders’ Equity (GAAP) $ 7,188
Slide 69: Consolidated Long-Term Debt Maturities
69 $M 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 - 2021 74 2022 200 400 500 2023 300 850 2024 1,200 FEU Excludes securitization bonds 2025 450 1,225 300 Published November 2, 2020 2026 650 75 300 2027 250 1,500 2028 650 450 4.64% 4.47% 4.25% AVG RATES FET CORP 2029 1,005 2030 300 100 1,050
Slide 70: Investor Relations Contact Info
Investor Relations Contact Info Irene M. Prezelj, Vice President Gina E. Caskey, Senior Advisor Jake M. Mackin, Consultant prezelji@firstenergycorp.com caskeyg@firstenergycorp.com mackinj@firstenergycorp.com 330.384.3859 330.761.4185 330.384.4829 For our e-mail distribution list, please contact: Sha
Slide 71: Commonly Used Terms & Acronyms
Commonly Used Terms & Acronyms ADIT Accumulated Deferred Income Taxes NGC Non-Utility Generation Charge AFUDC Allowance for Funds Used During Construction NMB Non-Market Based AMI Advanced Metering Infrastructure NOL Net Operating Loss BGS Basic Generation Service OSHA Occupational Safety and Health
Slide 72: 2018A GAAP to Operating (Non-GAAP) Earnings Reconciliation
2018A GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 2018 Actual Regulated Regulated Corporate/ FirstEnergy (In $M, except per share amounts) Distribution Transmission Other Consolidated 2018A Net Income (Loss) attributable to Common Stockholders (GAAP) $1,242 $397 ($658) $981 2018A Basic E
Slide 73: 2019A GAAP to Operating (Non-GAAP) Earnings Reconciliation
2019A GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 2019 Actual Regulated Regulated Corporate/ FirstEnergy (In $M, except per share amounts) Distribution Transmission Other Consolidated 2019A Net Income (Loss) attributable to Common Stockholders (GAAP) $1,076 $447 ($615) $908 2019A Earning
Slide 74: 2020F GAAP to Operating (Non-GAAP) Earnings Reconciliation
2020F GAAP to Operating (Non-GAAP) Earnings(1) Reconciliation 2020 Forecast Regulated Regulated Corporate/ FirstEnergy (In $M, except per share amounts) Distribution Transmission Other Consolidated 2020F Net Income (Loss) attributable to Common Stockholders (GAAP) $755 – $1,065 $460 – $485 ($515) –
Slide 75: 2018A, 2019A, and 2020F Special Items
2018A, 2019A, and 2020F Special Items(1) ■ Regulatory charges – Primarily reflects the impact of regulatory agreements or orders requiring certain commitments and/or disallowing the recoverability of costs, net of related credits. ■ Mark-to-market adjustments: Pension/OPEB actuarial assumptions – Pr
Slide 76: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements: 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-looki
Slide 77: Non-GAAP Financial Matters
Non-GAAP Financial Matters This FactBook contains references to non-GAAP financial measures including, among others, Operating earnings (loss), Operating earnings (loss) per share, Operating earnings (loss) per share by segment, Adjusted Equity, Adjusted Debt, Adjusted Capitalization, Funds from Ope