FE · 10-Q · 2026Q1 · Full report
Storm Restoration and Regulatory Deferrals
FIRSTENERGY CORP · 2026-04-28 · Importance 46 · Surprise 42
Other operating expenses rose $79 million in Q1 2026, primarily driven by higher storm restoration expenses of $81 million, of which $74 million was deferred for future recovery. As a result, deferral of regulatory assets, net increased $86 million in Q1 2026, driven by the $74 million storm restoration deferral and $12 million of other deferrals, shifting costs to regulatory recovery mechanisms rather than immediate earnings impact. The scale of storm costs and the related regulatory deferrals affects future rate recovery and regulatory asset balances in New Jersey.
Key facts
- Storm restoration expenses increased $81 million in the first three months of 2026 compared with the same period of 2025, of which $74 million were deferred for future recovery.
- The decrease in net cash provided from operating activities in Q1 2026 was primarily due to higher storm restoration costs.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -1.9% | Storm restoration expenses increased $81 million in the first three months of 2026 compared with the same period of 2025, of which $74… |