FE · 10-Q · 2026Q1 · Full report

Energy Efficiency Cost Recovery (PA)

FIRSTENERGY CORP · 2026-04-28 · Importance 54 · Surprise 24

Pursuant to Pennsylvania Act 129 and PPUC orders, the Pennsylvania Companies implemented multi-phase energy efficiency and peak demand reduction programs; the approved Phase IV (June 1, 2021–May 31, 2026) provides cost recovery of approximately $390 million to be recovered through Phase IV Riders for each FE PA rate district. FE PA filed a Phase V Energy Efficiency and Conservation Plan on November 26, 2025 proposing demand reduction and energy consumption targets and cost recovery of approximately $390 million for a five-year period beginning June 1, 2026 through May 31, 2031. Hearings were held January 29, 2026, the parties reached a settlement in principle filed February 19, 2026, and the PPUC approved the settlement with limited modifications March 12, 2026 requiring revisions which FE PA filed on April 15, 2026. The approved cost recovery mechanisms and ongoing regulatory proceedings will determine the timing and recovery of these ~ $390 million program costs.