FirstEnergy Corp. Files 2023 Annual Report on Form 10-K

Ticker: FE · Form: 10-K · Filed: Feb 13, 2024 · CIK: 1031296

Sentiment: neutral

Topics: FirstEnergy, 10-K, Annual Report, Utilities, Financials

TL;DR

<b>FirstEnergy Corp. filed its 2023 10-K report detailing financial performance and operational data.</b>

AI Summary

FIRSTENERGY CORP (FE) filed a Annual Report (10-K) with the SEC on February 13, 2024. FirstEnergy Corp. reported its fiscal year 2023 results on February 13, 2024. The company's primary business is regulated electricity transmission and distribution. Key financial data for the fiscal year ending December 31, 2023, is detailed in the filing. The filing includes information on various assets, liabilities, and equity accounts. Specific segments like regulated electricity and electric transmission are reported.

Why It Matters

For investors and stakeholders tracking FIRSTENERGY CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of FirstEnergy's financial health and operational status for the fiscal year 2023, crucial for investors and stakeholders to assess performance and future outlook. The detailed segment reporting and financial metrics allow for a granular understanding of the company's business segments, including regulated electricity and transmission operations, which are key drivers of its revenue and profitability.

Risk Assessment

Risk Level: medium — FIRSTENERGY CORP shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the utility sector can be subject to regulatory changes and capital expenditure requirements, which inherently carry medium risk.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand FirstEnergy's financial position and potential challenges in the regulated utility market.

Revenue Breakdown

SegmentRevenueGrowth
ElectricityUsRegulated
ElectricTransmission
ElectricWorldwideUnregulatedRevenue

Key Numbers

Key Players & Entities

FAQ

When did FIRSTENERGY CORP file this 10-K?

FIRSTENERGY CORP filed this Annual Report (10-K) with the SEC on February 13, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by FIRSTENERGY CORP (FE).

Where can I read the original 10-K filing from FIRSTENERGY CORP?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by FIRSTENERGY CORP.

What are the key takeaways from FIRSTENERGY CORP's 10-K?

FIRSTENERGY CORP filed this 10-K on February 13, 2024. Key takeaways: FirstEnergy Corp. reported its fiscal year 2023 results on February 13, 2024.. The company's primary business is regulated electricity transmission and distribution.. Key financial data for the fiscal year ending December 31, 2023, is detailed in the filing..

Is FIRSTENERGY CORP a risky investment based on this filing?

Based on this 10-K, FIRSTENERGY CORP presents a moderate-risk profile. The filing is a standard 10-K, which is a routine annual report. However, the utility sector can be subject to regulatory changes and capital expenditure requirements, which inherently carry medium risk.

What should investors do after reading FIRSTENERGY CORP's 10-K?

Review the detailed financial statements and risk factors in the 10-K to understand FirstEnergy's financial position and potential challenges in the regulated utility market. The overall sentiment from this filing is neutral.

Risk Factors

Key Dates

Filing Stats: 4,378 words · 18 min read · ~15 pages · Grade level 15.5 · Accepted 2024-02-13 07:00:38

Key Financial Figures

Filing Documents

Business 1

Item 1. Business 1 The Companies 1 Capital Requirements 4 Supply Plan 4 System Demand 5 Regional Reliability 5 Competition 5 Seasonality 5 Human Capital 6 Information About Our Executive Officers 8 FirstEnergy Website and Other Social Media Sites and Applications 9

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 24

Cybersecurity

Item 1C. Cybersecurity 24

Properties

Item 2. Properties 26

Legal Proceedings

Item 3. Legal Proceedings 27

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 27 Part II 28

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28

[Reserved]

Item 6. [Reserved] 28

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 77

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 77 Report of Independent Registered Public Accounting Firm 78

Financial Statements

Financial Statements Consolidated Statements of Income 80 Consolidated Statements of Comprehensive Income 81 Consolidated Balance Sheets 82 Consolidated Statements of Stockholders' Equity 83 Consolidated Statements of Cash Flows 84

Notes to Consolidated Financial Statements 85

Notes to Consolidated Financial Statements 85

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure 135

Controls and Procedures

Item 9A. Controls and Procedures 135

Other Information

Item 9B. Other Information 135 i

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 136

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 136 Part III 136

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 136

Executive Compensation

Item 11. Executive Compensation 136

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 136

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 136

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 137 Part IV 137

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 137

Form 10-K Summary 142

Item 16. Form 10-K Summary 142 ii GLOSSARY OF TERMS The following abbreviations and acronyms are used in this report to identify FirstEnergy Corp. and its current and former subsidiaries: AE Supply Allegheny Energy Supply Company, LLC, an unregulated generation subsidiary of FE AGC Allegheny Generating Company, a generation subsidiary of MP ATSI American Transmission Systems, Incorporated, a transmission subsidiary of FET CEI The Cleveland Electric Illuminating Company, an Ohio electric utility subsidiary of FE FE FirstEnergy Corp., a public utility holding company FENOC Energy Harbor Nuclear Corp. (formerly known as FirstEnergy Nuclear Operating Company), a subsidiary of EH, which operates EH's nuclear generating facilities FE PA FirstEnergy Pennsylvania Electric Company, a Pennsylvania electric utility subsidiary of FirstEnergy Pennsylvania Holding Company LLC, a wholly owned subsidiary of FE FES Energy Harbor LLC (formerly known as FirstEnergy Solutions Corp.), a subsidiary of EH, which provides energy-related products and services FESC FirstEnergy Service Company, which provides legal, financial, and other corporate support services FES Debtors FENOC, FES, and FES' subsidiaries as of March 31, 2018 FET FirstEnergy Transmission, LLC a consolidated VIE of FE, and the parent company of ATSI, MAIT and TrAIL, and having a joint venture in PATH FEV FirstEnergy Ventures Corp., which invests in certain unregulated enterprises and business ventures FirstEnergy FirstEnergy Corp., together with its consolidated subsidiaries Global Holding Global Mining Holding Company, LLC, a joint venture between FEV, WMB Marketing Ventures, LLC and Pinesdale LLC JCP&L Jersey Central Power & Light Company, a New Jersey electric utility subsidiary of FE KATCo Keystone Appalachian Transmission Company, a transmission subsidiary of FE MAIT Mid-Atlantic Interstate Transmission, LLC, a transmission subsidiary of FET ME Metropolitan Edison Company, a former Pennsylvania

BUSINESS

ITEM 1. BUSINESS The Companies FE and its subsidiaries are principally involved in the transmission, distribution, and generation of electricity. FirstEnergy's utility operating companies comprise one of the nation's largest investor-owned electric systems, serving over six million customers in the Midwest and Mid-Atlantic regions. FirstEnergy's transmission operations include more than 24,000 miles of transmission lines and two regional transmission operation centers. AGC and MP control 3,580 MWs of total capacity. FirstEnergy's revenues are derived primarily from electric service provided by the Utilities and Transmission Companies, which were reported under two operating segments: Regulated Distribution and Regulated Transmission. Regulated Utility Operating Subsidiaries The Utilities' combined service areas encompass approximately 65,000 square miles in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. The areas they serve have a combined population of approximately 14 million. The Utilities' serve approximately 6.2 million customers with a rate base of approximately $27.3 billion. On January 1, 2024, FirstEnergy consolidated the Pennsylvania Companies into FE PA, including OE subsidiary, Penn, making FE PA a new, single operating entity. In addition to merging each of the Pennsylvania Companies with and into FE PA, with FE PA surviving such mergers as the successor-in-interest to all assets and liabilities of the Pennsylvania Companies, (i) WP transferred certain of its Pennsylvania-based transmission assets to KATCo, and (ii) PN and ME contributed their respective Class B equity interests of MAIT to FE. FE PA, as of January 1, 2024, is FE's only regulated distribution utility in Pennsylvania encompassing the operations previously conducted individually by the Pennsylvania Companies and serves an area with a population of approximately 4.5 million. FE PA operates under the rate districts of the former Pennsylvania Companies. FirstE

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