FE · 10-Q · 2026Q1 · Full report

Depreciation and Smart Meter Amortization

FIRSTENERGY CORP · 2026-04-28 · Importance 18 · Surprise 14

Depreciation expense decreased $4 million in Q1 2026 versus Q1 2025. The decrease was primarily due to accelerated amortization of legacy smart meters in New Jersey, which concluded in December 2025. The accelerated amortization reduced ongoing depreciation expense in Q1 2026, although this was partially offset by a higher asset base from regulated investments. The net $4 million reduction reflects the tailing off of legacy AMI-related amortization after the December 2025 completion.

Key facts

• Depreciation expense decreased $4 million in the first three months of 2026 compared with the same period of 2025, primarily due to the accelerated amortization of legacy smart meters in New Jersey which concluded in December 2025, partially offset by a higher asset base.