FE · 10-Q · 2026Q1 · Full report

EmPOWER Maryland Program

FIRSTENERGY CORP · 2026-04-28 · Importance 58 · Surprise 42

PE describes the EmPOWER Maryland program driven by the Climate Solutions Now Act of 2022, which established escalating annual incremental energy efficiency targets through 2027 and beyond, and PE submitted multi‑scenario three‑year program plans with projected costs of $311 million, $354 million and $510 million; the MDPSC approved the $311 million scenario and later approved a revised $314 million plan for the remainder of the 2024‑2026 cycle. PE recovers EmPOWER program costs with carrying costs on unamortized balances through an annually reconciled surcharge, but pursuant to an MDPSC order PE is required to expense 100% of EmPOWER Maryland program costs in 2026 and beyond while previously unamortized costs are to be collected by the end of 2030. PE estimates that legislation effective July 1, 2024 will reduce carrying costs on the EmPOWER unamortized balances by $25 to $30 million over 2024‑2030 and has filed a judicial challenge to aspects of the law; the matter has had subsequent appeals and briefs filed through January 21, 2026.

Key facts

• Consistent with an MDPSC order dated December 29, 2022, PE is required to expense 100% of its EmPOWER Maryland program costs in 2026 and beyond.
• Following passage of the Climate Solutions Now Act of 2022, EmPOWER Maryland required annual incremental energy efficiency targets of 2% per year from 2022 through 2024, 2.25% per year in 2025 and 2026, and 2.5% per year in 2027 and thereafter.

Impact estimates