FE · 10-Q · 2026Q1 · Full report

State‑mandated Program Cost Recovery

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

Energy efficiency and other state‑mandated program costs increased by $10 million in Q1 2026 versus Q1 2025, and these costs were deferred for future recovery. Management states the deferral resulted in no material impact to earnings for the period. These are program costs required by state policy in New Jersey and are being recorded as regulatory deferrals to be recovered through future rate mechanisms. The treatment limits near‑term earnings volatility while preserving future recoverability via regulated riders or rate mechanisms.

Key facts

• Energy efficiency and other state mandated program costs increased $10 million in the first three months of 2026 compared with the same period of 2025 and were deferred for future recovery, resulting in no material impact to earnings.