FirstEnergy(US:FE)2025-10-23 14:02Financial 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]