FE · 10-Q · 2026Q1 · Full report
Regulatory Assets and Deferrals
FIRSTENERGY CORP · 2026-04-28 · Importance 91 · Surprise 92
FirstEnergy reported regulatory assets of $1,092 million (March 31, 2026) versus $829 million (Dec 31, 2025) and regulatory liabilities of $877 million versus $1,185 million for the same dates, reflecting material deferrals and refunds. The company discloses significant storm-related deferrals (e.g., storm-related costs of $1,271 million in a described table) and that approximately $943 million of regulatory assets not earning a current return are currently being recovered through rates. Specific items include customer payables for future income taxes, spent nuclear fuel disposal, asset removal, deferred transmission and generation costs, energy-efficiency program costs and Ohio settlement charges tied to the PUCO-approved settlement. Management reviews probability of recovery of regulatory assets each period, and changes in the regulatory environment could materially affect future earnings and rate recoveries.
Key facts
- Approximately $659 million of FirstEnergy storm-related costs were being recovered through rates as of March 31, 2026 compared to approximately $335 million being recovered as of December 31, 2025.
- FirstEnergy has regulatory assets of $1,092 million and $829 million, and regulatory liabilities of $877 million and $1,185 million as of March 31, 2026 and December 31, 2025, respectively.
- FirstEnergy’s regulatory assets not earning a current return were $1,643 million as of March 31, 2026 and $1,425 million as of December 31, 2025, a change of $218 million.
- Approximately $943 million of FirstEnergy’s regulatory assets not earning a current return were currently being recovered through rates as of March 31, 2026 (compared to $802 million as of December 31, 2025).
- Distribution deferred regulatory assets increased $235 million in the first three months of 2026 compared with the same period of 2025.
- Integrated segment deferral of regulatory assets increased $213 million in the first three months of 2026 compared with the same period of 2025.
- Deferral of regulatory assets, net increased $86 million in the first three months of 2026 compared with the same period of 2025, primarily due to a $74 million increase from higher deferral of storm restoration costs and $12 million related to net increases in other deferrals.
- Approximately $80 million of JCP&L storm-related costs were being recovered through rates as of March 31, 2026 compared to approximately $73 million being recovered as of December 31, 2025.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +0.6% | Approximately $659 million of FirstEnergy storm-related costs were being recovered through rates as of March 31, 2026 compared to… |
| liability | positive | realized | +0.5% | FirstEnergy has regulatory assets of $1,092 million and $829 million, and regulatory liabilities of $877 million and $1,185 million as of… |
| assets | positive | realized | +0.5% | FirstEnergy has regulatory assets of $1,092 million and $829 million, and regulatory liabilities of $877 million and $1,185 million as of… |
| assets | positive | realized | +0.4% | Distribution deferred regulatory assets increased $235 million in the first three months of 2026 compared with the same period of 2025. |
| assets | positive | realized | +0.4% | FirstEnergy’s regulatory assets not earning a current return were $1,643 million as of March 31, 2026 and $1,425 million as of December… |
| assets | positive | realized | +0.4% | Integrated segment deferral of regulatory assets increased $213 million in the first three months of 2026 compared with the same period of… |
| assets | positive | realized | +0.3% | Approximately $943 million of FirstEnergy’s regulatory assets not earning a current return were currently being recovered through rates as… |
| assets | positive | realized | +0.1% | Deferral of regulatory assets, net increased $86 million in the first three months of 2026 compared with the same period of 2025,… |
| assets | positive | realized | +0.0% | Approximately $80 million of JCP&L storm-related costs were being recovered through rates as of March 31, 2026 compared to approximately… |