FE · 10-Q · 2026Q1 · Full report

Rate Structure and Formula Rates

FIRSTENERGY CORP · 2026-04-28 · Importance 44 · Surprise 24

JCP&L derives transmission revenues from forward-looking formula rates that are updated annually based on a projected rate base and projected costs with an annual true-up to actual rate base and costs. The utility procures electric supply for BGS customers through a statewide auction process approved by the New Jersey Board of Public Utilities (NJBPU). JCP&L’s reported results reflect costs of securing and delivering generation and net transmission expenses, including deferral and amortization of certain costs; transmission revenues increased $10 million in Q1 2026 due to higher recovery of transmission operating expenses and a higher rate base from regulated investment programs. The formula-rate framework and NJBPU-approved procurement process therefore directly affect transmission and generation revenue volatility in New Jersey.

Key facts

• JCP&L owns and operates transmission infrastructure that is used to transmit electricity with revenues derived from forward-looking formula rates that are updated annually based on a projected rate base and projected costs and are subject to an annual true-up based on actual rate base and costs.