FE · 10-Q · 2026Q1 · Full report

Prior Period Correction - AMI Smart Meters

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

During Q4 2025 JCP&L identified an error in recording certain expenses for smart meter cost of removal related to its AMI deployment, which caused an understatement of expense and regulatory assets/liabilities back to 2023. The company evaluated the error and determined each affected prior period was not individually material but the cumulative impact warranted revision of previously issued financial statements. As a result, JCP&L revised its previously issued interim Results of Operations for the three months ended March 31, 2025 and also corrected other immaterial errors. The correction relates specifically to legacy smart meter removal costs recorded since 2023 and ties to subsequent amortization and depreciation reporting.

Key facts

• During the fourth quarter of 2025 JCP&L identified an error in the recording of certain expenses for smart meter cost of removal associated with the deployment of its AMI program that resulted in an understatement of expense on the Statements of Income and Comprehensive Income and Regulatory assets/liabilities on the Balance Sheets since 2023.
• As a result of the cumulative impact of the AMI cost-of-removal error, JCP&L determined it should revise previously issued financial statements and revised the previously issued interim Results of Operations for the three months ended March 31, 2025.