FE · 10-Q · 2026Q1 · Full report

Rate Mechanism and BGS Auction

FIRSTENERGY CORP · 2026-04-28 · Importance 36 · Surprise 6

JCP&L’s transmission and distribution revenues are governed by 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 to actual rate base and costs. JCP&L procures electric supply for its BGS customers through a statewide auction process approved by the New Jersey Board of Public Utilities (NJBPU). The company records net transmission expenses and defers certain costs related to securing and delivering generation and transmission service, which affects regulatory assets/liabilities and future rate recovery. The framework and NJ jurisdictional auction process directly determine timing and recovery of costs and revenues for JCP&L in New Jersey.

Key facts

• On April 23, 2025, the NJBPU directed New Jersey’s four EDCs to submit proposals to mitigate significant rate increases from BGS auction results effective June 1, 2025, and by June 18, 2025 the NJBPU approved JCP&L’s stipulation including the temporary $30 credits.