FirstEnergy(US:FE)2025-10-28 21:17Financial Performance - FirstEnergy's revenues for Q3 2025 were $4,148 million, an increase of 11% from $3,729 million in Q3 2024[270]. - Earnings attributable to FirstEnergy in Q3 2025 were $441 million or $0.76 per share, up 5% from $419 million or $0.73 per share in Q3 2024[270]. - For the first nine months of 2025, revenues reached $11,293 million, a 10% increase from $10,296 million in the same period of 2024[274]. - Earnings attributable to FirstEnergy for the first nine months of 2025 were $1,069 million or $1.85 per share, a 49% increase from $717 million or $1.25 per share in the first nine months of 2024[274]. - FirstEnergy's total revenues for Q3 2025 were $4,148 million, compared to $4,020 million in Q3 2024, reflecting an increase in electric revenues[297]. - Earnings attributable to FirstEnergy for Q3 2025 were $441 million, compared to $230 million in Q3 2024, indicating a positive growth trend[297]. - Total revenues for FirstEnergy in the first nine months of 2025 were $11,293 million, an increase from $10,296 million in the same period of 2024[321][322]. Capital Investments - FirstEnergy's planned capital investments for 2025 have been increased to $5.5 billion, a 10% rise from the original plan of $5.0 billion[279]. - The company expects a 30% increase in planned transmission capital investments for the 2026-2030 period compared to the current 5-year plan[279]. - The integrated resource plan filed by MP and PE includes a capital investment of approximately $2.5 billion for 70 MWs of solar generation by 2028 and 1,200 MWs of natural gas combined cycle generation by 2031[294]. - Capital investments in the Integrated Segment totaled $1,336 million in 2025, up from $1,045 million in 2024, an increase of $291 million[387]. - The Distribution Segment saw capital investments rise to $976 million in 2025, compared to $758 million in 2024, an increase of $218 million[387]. Operating Expenses - Operating expenses for FirstEnergy in Q3 2025 totaled $3,318 million, with significant costs in purchased power at $1,341 million and other operating expenses at $976 million[297]. - Total operating expenses increased by $152 million in Q3 2025, mainly due to a $110 million rise in purchased power costs[303]. - Total operating expenses for Stand-Alone Transmission increased by $5 million, primarily due to higher depreciation and property tax expenses[342]. Customer and Revenue Trends - Electric distribution MWh deliveries for residential customers in Q3 2025 were 15,448, a slight increase of 0.2% from 15,415 in Q3 2024[273]. - Total electric distribution MWh deliveries for the first nine months of 2025 were 112,395, a 0.5% increase from 111,834 in the same period of 2024[277]. - Distribution segment's total revenues increased by $399 million to $5,631 million for the nine months ended September 30, 2025, compared to $5,232 million in 2024[325]. - Generation sales revenues increased by $96 million in Q3 2025, attributed to higher retail generation sales and increased auction rates in Pennsylvania[302]. Regulatory and Legislative Developments - The Ohio Governor signed legislation eliminating ESPs and requiring triennial base rate cases, effective August 14, 2025, which may impact future regulatory strategies[292]. - The Ohio Companies requested a net increase in base distribution revenues of approximately $94 million, representing a 1.5% average residential monthly bill increase[291]. - The PUCO approved the Ohio Companies' proposal to return to ESP IV, effective February 1, 2025, after withdrawing ESP V[440]. - The NJBPU issued an Order to Show Cause regarding JCP&L's reliability performance, alleging failures to meet minimum reliability levels for 2022, 2023, and 2024[438]. Debt and Liquidity - FirstEnergy's outstanding short-term borrowings were $291 million as of September 30, 2025, down from $550 million as of December 31, 2024[371]. - FirstEnergy's total available liquidity from external sources as of October 27, 2025, was $6,242 million, including $775 million in cash and cash equivalents[371]. - The company executed a lift-out transaction with MetLife in January 2025, transferring approximately $640 million of plan assets and $652 million of plan obligations[365]. - FirstEnergy's average interest rates for regulated companies' money pools decreased to 4.35% for the three months ended September 30, 2025, compared to 5.43% for the same period in 2024[376]. Tax and Regulatory Liabilities - The effective tax rate for the distribution segment was 17.3% in Q3 2025, up from 15.0% in Q3 2024, reflecting a lesser impact of permanent tax benefits[305]. - FirstEnergy's regulatory assets not earning a current return increased by $138 million, totaling $1,381 million as of September 30, 2025[358]. - The company expects to rely on external sources of funds to meet long-term cash needs, including the issuance of long-term debt[361]. Environmental and Efficiency Initiatives - The Ohio Companies aim to reduce CO2 emissions by 90% below 2005 levels by 2045[440]. - The MDPSC approved a $311 million scenario for the EmPOWER Maryland program, with a revised plan for 2024-2026 totaling $314 million approved on December 27, 2024[428]. - JCP&L's proposal for offshore wind transmission infrastructure includes approximately $723 million in investments, with an expected investment ROE of 10.2%[432].