FE · 10-Q · 2026Q1 · Full report

Interest Expense and New Debt

FIRSTENERGY CORP · 2026-04-28 · Importance 24 · Surprise 14

Total other expenses increased $5 million in Q1 2026 versus Q1 2025, primarily due to higher interest expense from new debt issued since Q1 2025. The increase in interest expense was partially offset by higher capitalized interest and higher pension & OPEB non-service credits, which mitigated the net expense impact. The disclosure indicates incremental financing activity (new debt issuances) between Q1 2025 and Q1 2026 that raised interest expense levels. The net $5 million increase in other expenses therefore reflects financing activity and offsetting capitalized interest benefits.

Key facts

• Stand-Alone Transmission other expense increased $5 million in the first three months of 2026 compared with the same period of 2025, primarily due to higher interest expenses from new long-term debt issuances, partially offset by higher capitalized financing costs.
• As of March 31, 2026, the spot rate used in estimation was 5.87% for pension obligations and 5.68% for OPEB obligations.
• As of December 31, 2025, the spot rate used in estimation was 5.59% for pension obligations and 5.37% for OPEB obligations.

Impact estimates