Analyst Report: Firstenergy Corp.

Summary

FirstEnergy is a diversified energy company based in Akron, Ohio. It is one of the nation's largest investor-owned electric systems, with 10 regulated subsidiaries. The company has small regulated generating capacity, under 4,000 MW. FE's focus is on transmission and distribution; however, the company has been selling portions of its transmission business and expects about 20% of 2024 earnings to be from transmission operations. The company serves 6 million customers, including 2.3 million in Ohio, 1.8 million in Pennsylvania, and 2 million more in other mid-Atlantic states. FE does not have natural gas operations, and regulated electricity distribution accounted for about 85% of total 2023 revenues. FE's generation mix is carbon-neutral nuclear (53%), scrubbed baseload coal (35%), natural gas and oil (4%), and pumped-storage hydro and other renewables (8%). We believe that the company is at a disadvantage versus its peers given its heavy reliance on coal generation. FE has pledged to reduce GHG emissions by 30%