FirstEnergy's first goal is to generate and deliver power, but
its second goal is to stay profitable in a market
undergoing deregulation. Its ten utilities provide electricity
to 6 million customers in the Midwest and the
Mid-Atlantic. The company's domestic power plants have a total
generating capacity of more than 17,000 MW, most generated by
coal-fired plants. Subsidiary FirstEnergy Solutions trades energy
commodities in deregulated US markets. FirstEnergy's other
nonregulated operations include electrical and mechanical
contracting and energy planning and procurement.
The company operates and serves customers in an service
area of 65,000 square miles in Illinois, Maryland, Michigan, New
Jersey, New York, Ohio, Pennsylvania, and West Virginia.
FirstEnergy has power regulated generation, transmission,
and distribution operations. Through FirstEnergy Solutions
it is also engaged in competitive generation and
electricity sales. As part of its assets,
FirstEnergy has 2,400 MW of renewable energy (primarily
generated by wind farms) and 24,136 miles of high-voltage
The Regulated Distribution segment distributes electricity
through FirstEnergy's ten utilities which serve 6 million customers
and a combined population of 13.5 million. It purchases power in
Ohio, Pennsylvania, New Jersey and Maryland and controls 3,790 MWs
of generation capacity.
The Regulated Transmission segment transmits electricity through
transmission facilities owned and operated by American Transmission
Systems, Trans-Allegheny Interstate Line Company, and a number of
FirstEnergy's utilities, and the regulatory asset associated with
the abandoned PATH project.
The Competitive Energy Services segment supplies electricity
through retail and wholesale arrangements, including competitive
retail sale to customer primarily in Ohio, Pennsylvania, Illinois,
Michigan, New Jersey and Maryland, and the provision of partial
Provider of Last Resort and default service for some utilities in
Ohio, Pennsylvania and Maryland. It controls 14,068 MW of capacity,
including 885 MWs of capacity scheduled to be deactivated in
In 2014 the company's revenues were restated due to reflect the
divestiture of 11 hydroelectric power stations.
FirstEnergy's 2014 revenues increased by 1% due to higher Regulated
Distribution revenues as the result of a $331 million increase in
wholesale generation sales volumes, resulting from
Harrison/Pleasants asset transfer of 1,476 MW of generation
The company's net income decreased by 24% in 2014 due higher
operating expenses as a result of increase in FirstEnergy's Pension
and OPEB mark-to-market adjustment, partially offset by the absence
of impairment charges on regulatory assets and long lived assets
($1.1 billion recognized in 2013).
Cash inflow increased by 632% as a result of changes in working
capital as a result of changes in receivables, prepayments and
other current assets, and accounts payable.
In 2015, the company planned to focus on to develop the
transmission business, strengthen the regulated utilities, and
manage overall risk within the competitive business The core
of this strategy is the $4.2 billion energizing the Future
investment plan. This program is focused on a large number of small
projects within the existing 24,000 mile service territory that
improve service to customers. The company has identified $15
billion in transmission investment opportunities across its system
In 2015, the company completed multiple transmission projects that
will further enhance electric service for customers throughout
northern Ohio. The new facilities are designed to ensure system
reliability following the retirement of coal-fired power plants in
the region. The company spent nearly $800 million on transmission
projects to support plant retirements along Lake Erie. FirstEnergy
expects to spend $1.2 billion through 2019 on projects related to
plant retirements across its entire transmission system. The
completed projects represent a significant milestone in the
company's Energizing the Future initiative, and include new 138-
and 345-kV transmission lines and new substations.
As part of its ongoing efforts to help enhance service
reliability, in 2014 Mon Power installed new automated switching
equipment on a 47-mile, 69,000 volt transmission line serving
nearly 6,000 customers in the Marlinton and Snowshoe Mountain
Resort areas of Pocahontas County.
To raise cash to pay down debt, in 2014 FirstEnergy sold 11
hydroelectric power stations to Harbor Hydro for $395 million. The
hydroelectric power stations had a total capacity of 527 MW (less
than 3% of FirstEnergy's generation fleet output).
As states push to reduce carbon emissions, FirstEnergy has
been expanding its renewable energy operations and
reducing its fossil-fuel power plants. In 2013 the company
announced plans to deactivate two coal-fired power plants in
Pennsylvania, reducing its overall power generating capacity from
more than 20,000 MW to more than 18,000 MW.