FirstEnergy Corp. · NYSE:FE
FirstEnergy — Q1 2020 Earnings Presentation
79 slides from FirstEnergy's earnings presentation, Apr 23, 2020
Slide 1: Investor FactBook 1Q 2020
Investor FactBook 1Q 2020 Published April 23, 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……………. 40-49 5. Quarterly Updates…………………… 50-56 6. Guidance and Financials…………….57-73 7. Other Materials………………………. 74-79 Unless otherwise not
Slide 3: FirstEnergy Overview
FirstEnergy Overview 3 Published April 23, 2020
Slide 4: Forward-thinking electric utility at a glance
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 $42 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 Well-positioned in a COVID-19 environment A premier customer-focused, pure-play regulated utility Driving sustainable, long-term regulated Improving balance sheet with investment-grade earnings growth and a competitive dividend credit ratings 10 distribution utiliti
Slide 6: Balance Sheet Overview & Strategy
Balance Sheet Overview & Strategy Low Business Risk Investment Grade Continuous Improvement • Fully regulated; substantially all T&D • Positive momentum; stable outlook • FE HoldCo debt as a % of total assets • Baa3 | BBB- | BBB debt expected to decline over time • Geographic diversity (Sr. Unsecure
Slide 7: Corporate legal entity structure
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 • PUCO Approval of Decoupling Filing………………………………….………................................................................ January 15, 2020 • ESP IV ends……………………………...……………………………….………..........................................................
Slide 10: Regulated Transmission
Regulated Transmission 10 Published April 23, 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 ~$855M | ~11% JCP&L ~$1,005M | ~12% ATSI ~$2,600-2,975M | ~38% $7.2-7.9B ~$1,200-1,450M CapEx per year 2018-2023 MAIT ~$2,480-2,850M | ~36% TrAILCo ~$215M | ~3% $ 20 FUTURE B+ OPPORTUNITIES beyond 2023… 13 Published April 23, 2020
Slide 14: Regulated Transmission Capital Plan (2018-2023)
Regulated Transmission Capital Plan (2018-2023) Energizing the Future Plan ~$7.2-7.9B in capital investments ($M) 2018A 2019A 2020F 2021F 2022F 2023F ATSI $465 $471 $405 $405-530 $435-560 $420-545 TrAILCo 35 40 60 40 20 20 MAIT 409 424 405 395-520 430-555 415-540 JCP&L 107 134 175 180 185 225 WPP, M
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 6,990 900 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 $3.2B(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 $1.3B(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 115 kV 138 kV 230 kV Jurisdiction FERC 345 kV 500 kV Rate Base $690M West Penn Power Mon Power Potomac Edison Location WPP, MP, PE ■ Represents the transmission systems of WPP, MP and PE which comprise the Allegheny Power Zone in PJM ■ Stated rate updated effective
Slide 21: Regulated Distribution
Regulated Distribution 21 Published April 23, 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) $10.1B in capital investments 2018-2023 ($M) 2018A 2019A 2020F 2021F 2022F 2023F Ohio Ohio $370 $400 $540 $585 $560 $560 Stated 85 70 70 70 70 70 Formula 285 330 470 515 490 490 Pennsylvania Pennsylvania $666 $684 $585 $550 $565 $565 Stated 446 457 405
Slide 24: 2018A-2020F Regulated Distribution Capital Expenditures
2018A-2020F Regulated Distribution Capital Expenditures ($M) 2018A 2019A 2020F Ohio Ohio $370 $400 $540 CEI 156 161 220 OE 165 180 235 TE 49 59 85 Pennsylvania Pennsylvania $666 $684 $585 ME 194 207 175 PN 191 178 180 PP 54 56 50 WPP 227 243 180 New New Jersey Jersey (JCP&L) (JCP&L) $268 $299 $260 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 14,815 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 % Sub- 53.4 53.6 53.1 52.8 52.8 52.8 -0.4% -0.2% Total Deliveries(1) Total M MWHs Residential OH 17.0 16.9 16.9 16.8 16.9 16.9 -0.4% -0.1% PA 18.5 18.6 18.1 18.0 18.0 18.0 -0.9% -0.5% WV 5.4 5.5 5.
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: Average Customer Bills
Average Customer Bills Rates Effective July 1, 2019 OHIO PENNSYLVANIA [state avg $93] [state avg $132] AEP AEP ME PN PP WPP DUQ PECO PPL CEI OE TE (CS) (OP) DP&L DUK $156 $99 $100 $101 $141 $142 $135 $90 $90 $88 $119 $121 $84 $111 NEW JERSEY WEST VIRGINIA MARYLAND [state avg $117] [state avg $116] [
Slide 29: Capital and O&M Benchmarking
Capital and O&M Benchmarking Distribution Distribution Capital O&M MEASURE QUARTILE / RANK QUARTILE / RANK Per Circuit Mile 3rd 2nd Per Customer 7th 4th Per Substation 2nd 5th Per Pole 5th 2nd Performance Quartile Key 1st 2nd 3rd 4th CAPITAL O&M Capital costs of the Distribution system support O&M c
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 13.9% 12.2% Rider Overview Reconciled 10.2% 8.8% Recovers return on/of incremental rate base since 7.4% 6.9% 6.3% 6.2% DCR Quarterly 5.8% last rate case; subject to annual revenue caps 4.4% 4.2% 3.4% Decouples residential and co
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% 8.5% 8.2% 8.1% 7.9% 7.8% 7.8% 7.7% 7.6% 7.2% 7.1% 7.1% 6.9% 6.6% 6.0% 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 ❑ Continuously review considerations and timing of future rate cases Manufacturing, Plastic & Rubber ❑ NJ BPU approved IIP settlement on May 8, 2019 for 2 years, $97M ▪ W
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 on Non-Utility Gener
Slide 36: West Virginia Overview (1 of 2)
West Virginia Overview (1 of 2) CUSTOMERS: 535K 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 10.6% 10.7% 10.7% Rider Overview Reconciled 9.9% 9.3% 9.3% 9.1% 9.1% 8.9% 8.8% 8.7% 8.5% Recovers generation-related fuel, purchased ENEC power, and PJM costs, net of revenue credits Annually Recovers vegetation control
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 base rates approved March 2019 ▪ Includes new Electric Distribution Investment Surcharge (EDIS) for LAST APPROVED RATE CASE 2019-202
Slide 39: Maryland Overview (2 of 2)
Maryland Overview (2 of 2) ROE TRENDS – REGULATORY VIEW RECOVERY MECHANISMS 7.2% 6.4% 6.0% Rider Overview Reconciled 5.7% 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 April 23, 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: Corporate Responsibility – Facts at a Glance
Corporate Responsibility – Facts at a Glance Environmental Focusing on making the environment better by minimizing the impact of our operations and finding opportunities to enhance our ecosystem As of Feb. 29, 2020, achieved 80% Implemented a corporate waste Installed four osprey nesting reduction i
Slide 43: Corporate Responsibility Accountability Spans Entire Organization
Corporate Responsibility Accountability Spans Entire Organization “A company’s ability to manage ■ Corporate Governance and Corporate environmental, social, and governance Responsibility Board Committee has matters demonstrates the leadership oversight of FirstEnergy’s Corporate and good governance
Slide 44: 2019 Corporate Responsibility Internal Initiatives
2019 Corporate Responsibility Internal Initiatives COMMUNITY WHAT: A program that provides employees with paid time off to volunteer in the community WHY: Aligning to our employees’ passions while having the ability to track the number of hours our employees EMPLOYEE volunteer and better understand
Slide 45: Creating Value Through Increased Transparency
Creating Value Through Increased Transparency Initial Disclosures Added in 2019 Potential Future Disclosures Future disclosures are being evaluated using FirstEnergy’s strategic planning process 45 Published April 23, 2020
Slide 46: FirstEnergy's Climate Report
FirstEnergy’s Climate Report Two-Degree ■ Two-Degree Scenario (2DS) Analysis – Based on the International Energy Agency’s 2DS Scenario Analysis – Developed state-level detail for the five states where FE primarily operates to study potential impacts to and Implications company – Results show signifi
Slide 47: FirstEnergy's Corporate Responsibility Report
FirstEnergy’s Corporate Responsibility Report ■ Corporate Responsibility Website Energy for A – Provide external stakeholders with comprehensive information about our company in a single, easy to Brighter Future navigate location ■ Executive Summary – Provides an overview of our commitment to Corpor
Slide 48: FirstEnergy's Strategic Plan
FirstEnergy’s Strategic Plan Energized by ■ Clearly articulates our vision for the next five years, with our core values serving as the Possibility foundation – Provides transparency for our customers, employees, investors and other stakeholders about our path forward in an evolving electric utility
Slide 49: Frequently Asked Questions
Frequently Asked Questions Does FirstEnergy plan to report metrics using SASB guidance? Yes, we expect to use SASB guidance to refresh our Corporate Responsibility Report in April 2020. Has FirstEnergy disclosed climate related risks, including possible physical risks, in line with the TCFD’s recomm
Slide 50: Quarterly Updates
Quarterly Updates 50 Published April 23, 2020
Slide 51: Sales by Class
Sales by Class Percent change vs. prior year 2Q19 3Q19 4Q19 1Q20 TTM -1.0% -2.2% -2.2% -2.4% -2.4% -3.1% -3.2% -3.0% -3.4% -3.4% -3.8% -4.3% -4.7% -4.6% -5.6% -6.8% -7.4% -7.8% -9.7% -12.6% Residential Commercial Industrial Total (MWh in thousands) 2Q18 2Q19 3Q18 3Q19 4Q18 4Q19 1Q19 1Q20 TTM 1Q19 TT
Slide 52: Weather Adjusted GWh Sales by Class
Weather Adjusted GWh Sales by Class Percent change vs. prior year RESIDENTIAL COMMERCIAL 0.1% 0.1% -0.8% -0.9% -1.3% -1.6% -2.4% -2.2% -2.7% -3.5% 2Q19 3Q19 4Q19 1Q20 TTM 2Q19 3Q19 4Q19 1Q20 TTM INDUSTRIAL TOTAL -1.1% -1.1% -1.8% -1.7% -1.7% -2.4% -2.2% -2.2% -2.4% -3.3% 2Q19 3Q19 4Q19 1Q20 TTM 2Q19
Slide 53: Weather Impacts
Weather Impacts 400 300 200 100 0 250 500 750 1,000 HDD CDD HDD Norm CDD Norm 1,250 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 OH PA NJ WV MD Total Days % Days % Days % Days % Days % Days % HDD vs Normal -527 -17% -486 -17% -500 -20% -572
Slide 54: Ohio Decoupling Rider CSR
Ohio Decoupling Rider CSR ■ Filed November 21, 2019 pursuant to House Bill 6 ■ Approved by the PUCO on January 15, 2020 ■ Decouples residential and commercial customer base distribution revenue and lost distribution revenue as of the twelve-month period ending on December 31, 2018 (2018 Baseline Rev
Slide 55: Pennsylvania DSIC Rider
Pennsylvania DSIC Rider ■ Rider set to zero when new rates implemented on January 27, 2017 – Restarts when gross plant balances exceed the amount recovered in base rates and if reported ROE does not exceed the PA PUC published benchmark of 9.45% (subject to change) PP / WPP April 1, 2018 DSIC Rider
Slide 56: 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 ■ Requested rate increase of $187M to recover money spent on reliability enhancements as well as deferred storm costs following severe storms in recent years – Invested over $1B of capital since la
Slide 57: Guidance and Financials
10Operating Companies 6 States Guidance and Financials 6M Customers 57 Published April 23, 2020
Slide 58: 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 2020F 8% 5% $2.50 [
Slide 59: 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 60: Dividend Overview
Dividend Overview Continuing Annual Dividend Growth Enhancing Shareholder Returns $1.56/sh Approved by the Board of Directors on November 8, 2019 and effective beginning $1.52/sh with the March 1, 2020 dividend: ▪ A $0.01 per share increase; quarterly dividend will be $0.39 per share or $1.56 annual
Slide 61: Debt Financing Plan (2020-2023)
Debt Financing Plan (2020-2023) Committed to maintaining investment-grade credit ratings 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 2020F ✓ FE Corp $1.75B maturing in 2020 and 2021 and made
Slide 62: Pension/OPEB Overview
Pension/OPEB Overview Key assumptions for expense 2019 2020(1) Expected Return on Assets 7.50% 7.50% Overview Pension Discount Rate 4.44% 2.96% ■ FE is the sponsor of the benefit plans for employees at all of FE’s subsidiaries OPEB Discount Rate 4.30% 2.80% ■ Pension Status is Open (1) Updated as of
Slide 63: 2019 Pension/OPEB Summary
2019 Pension/OPEB Summary Pension/OPEB Funded Status (PBO): Year-End 2019A ($M) Corp FEU FES/FENOC Total Notes Qualified Pension ($807) ($356) ($1,040) ($2,203) 79% funded at 12/31/19 Non-Qualified Pension (217) (170) (65) (452) No minimum funding requirements OPEB 48 (343) 99 (196) No minimum fundi
Slide 64: 2018-2023 Qualified Pension Funding
2018-2023 Qualified Pension Funding Qualified Pension Plan Projected Funding Status(1) – Qualified Pension Plan ■ Pension Contributions ($M) PBO Plan Assets – January 2018: $1,250M $12,000 – February 2019: $500M $11,000 $10,598 $10,458 $10,397 $10,307 $10,209 ■ Required contributions: $9,747 $10,000
Slide 65: Capital Expenditures Forecast Summary
Capital Expenditures Forecast Summary $18-19B in capital investments; with majority on formula rates Annually 2019A 2020F – 2023F FE Consolidated Total $3.0B $3.0-3.3B ($M) 2018A 2019A 2020F 2021F 2022F 2023F Regulated Distribution (~40% formula rates) $1,635 $1,698 $1,700 $1,700 $1,700 $1,700 State
Slide 66: 2020 FFO and Free Cash Flow
2020 FFO and Free Cash Flow FE Consolidated ($M) 2020F Cashfrom Cash from Operations Operations (GAAP) (GAAP) $1,840 - $2,040 Working Capital (1) 2 - (28) Pension Contributions (2) - FES Bankruptcy Settlement Agreement (3) $853 Fundsfrom Funds from Operations Operations(FFO) (Non-GAAP) (FFO) (Non-GA
Slide 67: Credit Ratings
Credit Ratings As of April 23, 2020 Corporate Credit Rating Senior Secured Senior Unsecured Outlook S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch FirstEnergy Corp.(*) BBB Baa3 BBB BBB- Baa3 BBB S S S Allegheny Generating Co. BBB- Baa2 BBB S S S American Transmission Systems
Slide 68: Financial Updates
Financial Updates Since February 7, 2020 (4Q 2019 Earnings Release) ■ Dividend: – On March 17, 2020, Board declared a quarterly dividend of $0.39 per share of outstanding common stock Declaration Date Payable Record Date 3/17/2020 6/1/2020 5/7/2020 ■ Financing Activities: FE Corp. MAIT PN Date 2/20/
Slide 69: Credit Profile
Credit Profile $3.5B $750M $4.5B Credit Commitment $3.5B Revolving Credit Term Loan Credit Available Liquidity Facilities (RCF) Agreements from 24 Financial Institutions (as of 4/20/2020) 10% 11% Investment-grade credit ratings at FirstEnergy Corp and all subsidiaries. FFO/Debt CFO pre-WC/Debt thres
Slide 70: Bank Covenant View of Debt-to-Cap Ratio
Bank Covenant View of Debt-to-Cap Ratio Compliant with RCF covenant; $6.5B of additional debt capacity or $3.5B of equity decrease capacity Debt to Total Capitalization Ratio as 3/31/2020 12/31/2019 defined under the FE Credit Facility: $M % $M % Total Stockholders’ Equity (GAAP) $ 6,814 19% $ 6,975
Slide 71: Consolidated Long-Term Debt Maturities
71 $M 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 - 2020 300 2021 74 FEU 2022 200 400 500 Excludes securitization bonds 2023 300 850 Published April 23, 2020 2024 1,200 2025 450 1,225 300 2026 650 75 4.77% 4.47% 4.49% AVG RATES FET CORP 2027 250 1,500 2028 650 450 2029 1,005 2030 300 100 600
Slide 72: 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 73: 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 74: 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 75: 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 76: 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) $1,000 – $1,075 $460 – $485 ($440)
Slide 77: 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 78: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements: This FactBook includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Unless the context requires otherwise, as used herein, reference
Slide 79: 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