Here are 1-2 brief analogies for FirstEnergy (FE):

• FirstEnergy is like a large, multi-state water or natural gas utility, but for electric power.
• FirstEnergy is essentially the electricity version of a major telecom provider like AT&T or Verizon.

FirstEnergy (FE) primarily provides services related to the electricity utility industry.

• Electricity Generation: FirstEnergy produces electricity using a diverse portfolio of power sources, including fossil fuels, nuclear, hydroelectric, and renewable energy.
• Electricity Transmission: FirstEnergy operates and maintains extensive high-voltage transmission lines that transport electricity from power plants to local distribution networks.
• Electricity Distribution: FirstEnergy manages a vast network of power lines and infrastructure to deliver electricity directly to approximately 6 million residential, commercial, and industrial customers.

FirstEnergy (symbol: FE) is an electricity utility company that primarily sells electricity directly to end-users rather than to a few major corporate customers.

The company serves approximately 6 million customers across Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York.

Its customer base can be broadly categorized into the following three types:

• Residential Customers: Individual households and families who use electricity for their homes.
• Commercial Customers: Businesses of various sizes, including offices, retail stores, restaurants, and other service-oriented establishments.
• Industrial Customers: Large-scale manufacturing plants, factories, and other industrial operations that require significant amounts of electricity.

Brian X. Tierney, Board Chair, President and Chief Executive Officer

Brian X. Tierney joined FirstEnergy in June 2023. Prior to this, he served as a Senior Managing Director and Global Head of Operations and Asset Management for Blackstone Infrastructure Partners, a private equity firm, which he joined in 2021. He spent over 23 years at American Electric Power (AEP) in various senior leadership roles, including Executive Vice President of Strategy and Executive Vice President and Chief Financial Officer from 2009-2020. As CFO at AEP, he oversaw finance, accounting, strategy, procurement, supply chain, and fleet operations. He also held the position of Executive Vice President – AEP Utilities East. Earlier in his career, he worked for a subsidiary of Enron Corp. Tierney also served as a United States Peace Corps Volunteer.

Jon A. Taylor, Senior Vice President and Chief Financial Officer

Jon A. Taylor joined FirstEnergy in 2009. He is responsible for accounting, treasury, investor relations, risk, and strategy. Taylor has held several senior financial positions within FirstEnergy, including Assistant Controller for FirstEnergy Utilities and FirstEnergy Solutions, Vice President and Assistant Controller for FirstEnergy Corp., and Vice President, Controller and Chief Accounting Officer. In March 2018, he was named President of Ohio Operations, and in April 2019, he became Vice President, FirstEnergy Utilities, before being elected Senior Vice President and Chief Financial Officer in May 2020. Before joining FirstEnergy, he worked at PricewaterhouseCoopers, LLP.

Toby L. Thomas, Chief Operating Officer

Toby L. Thomas joined FirstEnergy in November 2023. He is responsible for a wide array of transmission and distribution business functions, including planning and protection, engineering and standards, project and construction management, real-time system operations, support operations, and customer care operations. Before joining FirstEnergy, Thomas was the Senior Vice President, Energy Delivery, for American Electric Power.

Hyun Park, Senior Vice President and Chief Legal Officer

Hyun Park joined FirstEnergy in 2021. He leads the company's legal, internal audit, and ethics and compliance functions. Prior to FirstEnergy, he was a Partner and General Counsel for LimNexus LLP, which he joined in October 2019. Before that, he was Of Counsel at Latham & Watkins LLP. From 2006 to 2017, Park served as Senior Vice President and General Counsel for PG&E Corporation and its principal subsidiary, Pacific Gas and Electric Company. His previous executive leadership roles include Vice President, General Counsel and Secretary of Allegheny Energy, Inc. and Senior Vice President, General Counsel and Secretary of Sithe Energies, Inc. He began his legal career at Latham & Watkins, where he became an equity partner.

Wade Smith, President, FirstEnergy Utilities

Wade Smith joined FirstEnergy in December 2023. In this role, he is responsible for overseeing FirstEnergy's Distribution, Integrated and Stand-Alone Transmission business segments, as well as External Affairs. Smith brings over three decades of experience in utility leadership. Most recently, he served as Chief Operating Officer of Puget Sound Energy. Before his time at Puget Sound Energy, Smith spent nearly 32 years at American Electric Power.

The key risks for FirstEnergy (FE) are primarily centered around ongoing regulatory and legal challenges, the increasing impact of extreme weather events, and its relatively high debt levels.

1. Regulatory and Legal Risks: FirstEnergy faces significant and ongoing risks stemming from regulatory scrutiny and legal actions, particularly those related to the House Bill 6 (HB6) bribery scandal. This scandal involved a scheme to secure a nuclear plant bailout, leading to federal investigations, civil lawsuits, and substantial financial settlements. The company continues to navigate ongoing state regulatory investigations related to HB6, which can impact its business operations and financial condition. Heightened regulatory oversight and evolving federal and state regulations could affect FirstEnergy's ability to recover costs and influence its financial performance.
2. Extreme Weather Events and Climate Change Physical Risks: As an electric utility, FirstEnergy is highly susceptible to the increasing frequency and intensity of extreme weather events, which pose significant operational and financial challenges. Severe windstorms, for example, have recently caused widespread power outages, requiring extensive repair efforts and incurring substantial expenses. These physical risks, including events like flooding and wildfires, can negatively impact FirstEnergy's generation, transmission, and distribution infrastructure, potentially disrupting supply chains and operational efficiency. The company is responding with substantial capital investments in grid modernization to enhance resilience, but the costs and impacts remain a critical risk.
3. High Leverage/Debt: FirstEnergy carries a notable level of debt, which presents a financial risk compared to its industry peers. As of March 31, 2023, the company reported a net debt of $22.549 billion against shareholders' equity of $10.731 billion, resulting in a net debt-to-equity ratio of 2.10. This higher reliance on debt can impact the company's financial flexibility, increase its cost of capital, and potentially raise concerns regarding compliance with debt covenants.

The clear emerging threat for FirstEnergy is the proliferation of customer-sited distributed generation and energy storage technologies. This includes rooftop solar panels combined with battery storage systems, which enable customers to generate and store their own electricity. This trend directly threatens FirstEnergy's traditional business model by reducing customer reliance on its centralized generation, transmission, and distribution infrastructure, thereby decreasing electricity sales and volumetric revenue.

The addressable markets for FirstEnergy's main products and services, electricity generation, transmission, and distribution, are represented by the total electricity sales or revenue within their operating regions in the United States. Based on the most recent available data, the market sizes for these regions are as follows:

• Ohio: The total retail electricity sales in Ohio were approximately 153,707,376 MWh in 2024.
• Pennsylvania: The total retail electricity sales in Pennsylvania were approximately 134,609,781 MWh in 2023.
• West Virginia: The total retail electricity sales in West Virginia were approximately 32,990,570 MWh in 2024.
• Maryland: The total retail electricity sales in Maryland were approximately 59,018,688 MWh in 2024.
• New Jersey: The total electricity end-use consumption in New Jersey was approximately 71,096,289 MWh in 2023, converted from 242.6 trillion British thermal units (Btu).
• New York: The annual electricity utility revenue in New York was approximately $27.62 billion in 2024.

FirstEnergy (NYSE: FE) is expected to drive future revenue growth over the next two to three years through several key initiatives:

• Extensive Capital Investment Programs: FirstEnergy's "Energize365" capital investment plan is a primary driver. The company has announced a $36 billion program for 2026-2030, which represents a nearly 30% increase over its previous five-year plan. These investments are directed towards distribution infrastructure renewal, grid modernization, and significant reliability and resiliency enhancements to the high-voltage transmission system.
• Growth in Rate Base and Transmission Investments: The substantial capital investments under Energize365 are projected to result in a 10% compounded annual rate base growth through 2030. A significant portion of this, over $19 billion, is allocated to transmission investments, which are largely recovered through formula rate mechanisms and are expected to drive higher transmission-related earnings. FirstEnergy Transmission has also been awarded projects by PJM Interconnection totaling approximately $950 million to enhance grid reliability and address rising customer demand in Ohio and Pennsylvania.
• Increased Customer Demand: The company anticipates stronger distribution sales and benefits from increased customer demand, including a projected 2% customer demand growth with a 5% increase from industrial customers. This is further supported by the growing electricity demands driven by economic development, the electrification of homes and businesses, and a surge in data center expansion, particularly in the PJM Interconnection regions covering FirstEnergy's service areas.
• Constructive Regulatory Outcomes and New Base Rates: The implementation of new base rates in various jurisdictions, such as Pennsylvania in 2025, has already contributed to core earnings growth. Future revenue growth will continue to be supported by ongoing regulatory strategies that facilitate the recovery of investments and ensure favorable rate adjustments across FirstEnergy's service territories, including recent settlements on grid modernization plans like Grid Mod II in Ohio.

Share Issuance

• FirstEnergy expects to rely on up to $2 billion in equity or equity-like securities to help fund its $36 billion capital plan for 2026-2030.
• The number of shares outstanding increased slightly from 575 million in 2024 to 577 million in 2025.

Inbound Investments

• In March 2024, FirstEnergy completed the sale of an additional 30% ownership interest in its FirstEnergy Transmission, LLC (FET) business to Brookfield Super-Core Infrastructure Partners for $3.5 billion in an all-cash deal.
• This transaction increased Brookfield's ownership interest in FET from 19.9% to 49.9%, with FirstEnergy retaining a 50.1% interest.

Outbound Investments

• FirstEnergy is pursuing a planned $2.5 billion investment in a 1.2 GW natural gas combined cycle facility in West Virginia, with anticipated commercial operation in 2031.
• The company has been awarded $5 billion in competitive transmission projects since 2022, with expectations for further awards in 2027.

Capital Expenditures

• FirstEnergy's "Energize365" capital investment plan for 2026 through 2030 totals $36 billion, representing a nearly 30% increase compared to its previous five-year investment plan.
• The company deployed $5.6 billion in system investments in 2025 and plans to invest $6 billion in 2026.
• These capital expenditures are primarily focused on distribution infrastructure renewal, grid modernization, and significant reliability and resiliency enhancements to the high-voltage transmission system, with more than $19 billion allocated to transmission investments within the 2026-2030 plan.