Financial Data and Key Metrics Changes - The company reported third-quarter GAAP earnings of $0.76 per share, an increase from $0.73 in the same quarter last year [4] - Core earnings for the quarter were $0.83 per share, compared to $0.76 in Q3 2024, and year-to-date core earnings reached $2.02 per share, up 15% from $1.76 in 2024 [4][18] - The company invested $4 billion in capital for regulated utilities in the first nine months of 2025, a 30% increase compared to the previous year [4][22] - The updated guidance for 2025 is raised to a midpoint of $2.53 per share, with a range of $2.50-$2.56 [5][16] Business Line Data and Key Metrics Changes - Distribution business earnings improved by 20% year-to-date due to a $225 million annual rate adjustment in Pennsylvania and higher customer demand [19] - Integrated segment earnings increased by $0.05 per share, or 7%, driven by formula rate investments in transmission systems [19] - Standalone transmission business earnings rose approximately 7%, supported by a strong capital investment program [19] Market Data and Key Metrics Changes - The contracted customer demand from data centers increased by over 30% since the last earnings call, with expectations for FirstEnergy's system peak load to rise by 15 GW by 2035 [7] - The overall sales were 1% higher than last year, remaining flat on a weather-adjusted basis [21] Company Strategy and Development Direction - The company is increasing its 2025 capital investment program by 10% to $5.5 billion, focusing on system reliability and resiliency [5][12] - A long-term integrated resource plan in West Virginia aims to add 70 MW of utility-scale solar and 1.2 GW of natural gas generation by 2031 [9][10] - The company is committed to maintaining affordability for customers, with average bills 19% below in-state peers [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a core earnings compound annual growth rate of 6%-8% through 2029, supported by increased capital investments [16][18] - The company is actively engaging with regulators to address rising consumer energy costs and advocating for changes in capacity auctions [62][80] Other Important Information - The company successfully completed its 2025 financing plan with nearly $6 billion in debt financing, demonstrating a strong credit profile [24] - The company expects an order in the Ohio base rate case in November, followed by a multi-year rate plan filing [25] Q&A Session Summary Question: Discussion on West Virginia generation and capital recovery - Management explained that for build-own-transfer scenarios, capital recovery would occur during construction, with significant earnings coming once the asset is operational [32] Question: Thoughts on increased CapEx opportunities - Management indicated that increased CapEx would support the 6%-8% earnings per share growth outlook, with confidence in achieving the upper end of that range [38][83] Question: Data center pipeline activity - Management confirmed that there is currently about $1 billion of CapEx associated with transmission interconnection requests from large load customers [41] Question: Affordability pressures in New Jersey - Management acknowledged that generation costs are driving bill increases and emphasized efforts to mitigate these impacts for customers [62] Question: Transmission upside and open window outcomes - Management stated that the 30% increase in transmission CapEx is based on incremental work rather than inflation, with a modest amount from pending PJM open window projects included in the plan [66][68]

Financial Data and Key Metrics Changes - Third-quarter GAAP earnings were reported at $0.76 per share, an increase from $0.73 in the same quarter last year [4] - Core earnings for the quarter were $0.83 per share, compared to $0.76 in Q3 2024, with year-to-date core earnings at $2.02 per share, up 15% from $1.76 in 2024 [4][18] - The company invested $4 billion in capital for regulated utilities in the first nine months of 2025, a 30% increase compared to the previous year [4][21] - The 2025 capital investment program was increased by 10% to $5.5 billion [5] Business Line Data and Key Metrics Changes - Distribution business saw a 20% improvement in year-to-date earnings due to a $225 million annual rate adjustment in Pennsylvania and higher customer demand [19] - Integrated segment earnings improved by $0.05 per share, or 7%, primarily from formula rate investments in transmission systems [19] - Standalone transmission business earnings increased approximately 7%, driven by a strong capital investment program [19] Market Data and Key Metrics Changes - Load growth from data centers is expected to increase FirstEnergy's system peak load by 15 gigawatts, nearly 50% from 33.5 gigawatts this year to 48.5 gigawatts by 2035 [6] - Across PJM, peak load projections are forecasted to increase by nearly 48 gigawatts by 2035, representing 30% of the current peak load of 162 gigawatts [6] Company Strategy and Development Direction - The company is focused on customer-focused investments to enhance system reliability and resiliency [5][12] - An integrated resource plan was submitted in West Virginia, outlining recommendations for maintaining affordable and reliable power over the next decade [8] - The company plans to roll out a higher capital expenditure plan for the 2026 through 2030 planning period early next year [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about opportunities ahead, reaffirming a core earnings compound annual growth rate of 6% to 8% [5][16] - The company is advocating for changes in state leadership to address rising customer bills, particularly in deregulated states [14][62] - Management highlighted the importance of maintaining affordability for customers while pursuing significant capital investments [13][16] Other Important Information - The company expects a consolidated return on equity of 10.1%, slightly above the targeted range of 9.5% to 10% [22] - Cash from operations was reported at $2.6 billion, an increase of over $700 million compared to 2024 [23] - The company is preparing to file a multi-year rate plan in Ohio following the expected order in the base rate case [24] Q&A Session Summary Question: Discussion on West Virginia generation and capital recovery - Management explained that for a build-own-transfer scenario, capital recovery would occur during construction, with significant earnings coming once the asset is operational [28][29] Question: Rate case strategy for 2026 - Management indicated that they would follow a similar cadence as previous years, focusing on timely recovery through base rate increases [30][31] Question: Impact of increased CapEx on earnings growth outlook - Management believes the increased CapEx opportunities will solidify their ability to remain within the 6% to 8% earnings per share growth range [33] Question: Data center pipeline and transmission CapEx - Management noted that there is approximately $1 billion of CapEx associated with transmission interconnection requests due to strong data center activity [34][35] Question: Affordability pressures in New Jersey - Management acknowledged that generation costs are driving bill increases and emphasized their efforts to mitigate these impacts [51][52]

Financial Data and Key Metrics Changes - Core earnings per share for Q2 2025 were $0.31, with a year-to-date total of $0.64, down from the previous year, but consistent with internal plans [5][22] - The full-year guidance range for earnings per share is reaffirmed at $1.48 to $1.52, representing a 10% increase over 2024 [5][22] - The company is targeting a 20% dividend payout by 2028, with no further equity issuance planned through that year [11][26] Business Line Data and Key Metrics Changes - The data center pipeline has grown to 10 gigawatts, a nearly threefold increase from the previous year, with over 50 projects in various stages [18][19] - The company has executed four Public Safety Power Shutoff (PSPS) events in 2025, indicating proactive measures in wildfire risk management [13] Market Data and Key Metrics Changes - Residential combined bills are forecasted to remain flat for the remainder of 2025 and decrease in 2026, with a potential for lower bills in 2027 [15][17] - The company is seeing beneficial load growth from data centers, which could reduce electric bills by 1% to 2% for every gigawatt brought online [21] Company Strategy and Development Direction - The company is focused on a "simple affordable model" to stabilize customer bills while making necessary capital investments [10][11] - Legislative efforts are underway to improve wildfire risk management and affordability, with the company advocating for effective solutions [6][8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth under various legislative outcomes, emphasizing the importance of affordability legislation [34][39] - The company is committed to improving physical risk mitigation and maintaining a strong balance sheet to support future growth [34][35] Other Important Information - The company has identified nearly 100 initiatives aimed at operational and maintenance savings, contributing to overall cost reduction efforts [22][25] - The company plans to file a ten-year undergrounding plan by year-end, emphasizing the importance of undergrounding in wildfire mitigation [90] Q&A Session Summary Question: Concerns about legislative outcomes affecting growth - Management reassured that they have modeled various legislative scenarios and remain confident in their guidance through 2028, emphasizing that securitization proposals would not be supported as they could increase bills [39][40] Question: Balance sheet capacity and funding - Management indicated that there is no need for a large upfront contribution to the wildfire fund, as claims typically take years to pay out, and they have sufficient flexibility in their plans [46][50] Question: Data center pipeline and load growth benefits - Management highlighted that construction for data center projects in San Jose is expected to start in late 2026 or early 2027, with load materializing predominantly in 2027 [70][71] Question: Affordability solutions in the legislature - Management expressed optimism about achieving affordability solutions in the current legislative session, noting that 30-40% of bills are policy-driven and that there are good ideas on the table [75][76] Question: Wildfire fund and legislative package - Management stated that any legislative package must be net better for customers and investors, emphasizing the importance of the wildfire fund's durability [83][84]