FE · 10-Q · 2026Q1 · Full report

Storm Cost Recovery

FIRSTENERGY CORP · 2026-04-28 · Importance 71 · Surprise 82

Other operating expenses increased in Q1 2026 largely due to storm restoration costs totaling $81 million versus Q1 2025. Of that $81 million, $74 million were deferred for future recovery, indicating regulatory treatment that delays earnings impact and records these costs as regulatory assets. The company states the deferral reduces the immediate earnings effect and will be recovered through future rates subject to regulatory approval and recovery mechanisms in New Jersey. The storm cost amounts materially affected operating expense movements in the quarter and fed into the increase in deferral of regulatory assets.