FirstEnergy (FE) 14 Feb 232022 Q4 Earnings call transcript

Greetings, and welcome to the FirstEnergy Corp. Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

to Investor call FirstEnergy Relations like Prezelj, to Corp. now President, Vice and would turn over the Irene I Communications for Thank you. Ms. may Irene you Prezelj, begin.

you. These statements subject uncertainties. regarding full earnings, performance, and quarter Today, Thank are and to will based revenues, our other on prospects earnings expectations matters. we forward-looking and XXXX are call. and various make strategies, to Welcome statements risks year fourth current

these statements that under from by Factors and cause those Investors filings. the to actual the SEC link website be materially differ can section could results Information in our on our found indicated of Earnings

will We section and of be document found supports certain that today's Investors Reconciliations measures. discussion and on in and the the year, between can strategic information financial financial quarter non-GAAP also other highlights our measures, the presentation discuss financial the detailed website. non-GAAP about

We'll and Q&A Vice begin and other presentations and Chair with Officer. the Financial be President Chief executives John Taylor, Board our Several will Jon available from Somerhalder, today's and Chief call for Executive session. our Officer; Interim President Senior

I'll call over to John Now turn Somerhalder. the

make XXXX, Thanks, We had in joining Irene. for are our and in progress more us. we morning, excited year strong Good on a everyone. to goals even Thanks XXXX.

earnings Our our of midpoint and operating full guidance share, per $X.XX slightly range. GAAP year the above earnings which XXXX share are are is $X.XX per

a for thank minute year. Before I their past say take the our I get over to to today, to like efforts all started you would of employees

of have accomplished I'm become. what company we they've proud and

let's this better lot we started. With who are Thank term. efforts the due for so working employees the past get cover of that, serving to XX,XXX this long and progress Our is to today, a our to year our ground have company customers make you. of

organization. of ago, enhance changes remarkable. In some pace of ourselves every strengthen aspect The we these steps we FirstEnergy. and to were of have nearly stride, XXXX, transform years full scope taking our and first to the hit been stretching Two

Just to touch highlights. the on a few of

our the equity This together in was midyear reduce in interest $X billion improvements which significant billion from late financial debt made Transmission billion that deploying common we FirstEnergy $X.X the closed in LLC proceeds XXXX, XX.X% includes to position. to with in First, sale most issuance at by that XXXX, APICORP. nearly closed $X of

debt As company as total a XX% of to the a XX% debt result, lowered end of we percentage at from XXXX. holding

we front, customer model to FE values. to with operational part to transitioned the we we the Company in five-state XXX an At engaged more our core enrich modernize On the new work and way than the deliver program. our a of and same unwavering commitment continue a time, operating projects Forward across our superior as culture to experience

center efficient focus energy entering company work, momentum. forward-thinking move Company employees and XXXX result enabling a year, with we're organization clean of our As working a on forward. more foundation working a this customer to sharing be are transition. that where strong a we and the innovative, to to as the build intend ideas premier is a We're electric This and

month, expected Partners and we which long-term to investments, $X our of Infrastructure this for Super-Core billion $X.X plans interest our This value which incremental Earlier our to LLC an approximately XXXX, will all additional sheet Brookfield's to transaction, in FirstEnergy early agreement capital supports improve for is stakeholders. XX% believe close Transmission announced for billion. we an in drive sell to balance

will critical our regulatory discuss, grid. will reliability investments that electric calendar John as address smarter and And and support the cleaner

impacts our X% it we share, of this $X.XX the per XXXX offsets $X.XX per range represents guidance and are growth from XXXX introducing year. of share. We of original pension midpoint a to midpoint discussed $X.XX last The

quarter guidance first introducing $X.XX XXXX $X.XX also share. of to are per We

In of an growth off to guidance earnings much realize prior this growth rate, addition, which CEO and the based midpoint. represents year affirming X% update are on is process, year-over-year operating moment our spend targeted a provide the I search important annual X% interest I'd there to we in like to topic.

we we broad looking execute ability front, Late criteria to industry, were that track impeccable six-month with three- last discipline strong we leading always for year, credibility the leadership a and utility have financial record within stakeholders. regulatory and demonstrated shared of executive external operational line. the time to a the anticipated And on

selecting that select among strong. can discussions of process through its been continue. individual has the will its Board since active Board Board I committed beginning process to year interest The announcement to our share forward lead the talented and candidates when to the and the quite and conclusion. you team, the the respect The completes the trust right look has is work. been sharing We we

as to has our since place XXXX taken drive, exciting transformation our many to the path the this In will to the the the Company are that the stronger The with we're management It's their poised passion are new and once meantime, from and to CEO, we is we committed continue the employees execute that time leverage place. FirstEnergy name, making fully have talented strengths well. as the an Board for to strategy expectation and ingenuity. diverse who team assets be in on

appreciate support. your I continued

are and on efforts our as stability success a leading utility. long-term We concentrating

with our last seen the We will years. continue to you've over the few navigate determined same focus path

call Jon over to turn I'll Now, Taylor. the

made perseverance past to us on Thank important us. John our goals. you and their year. conditions Thanks, progress thanking everyone. for commitment John, in joined good challenging and I make for navigate work our possible employees and for morning, Their it joining incredible this

our future of aspirations ahead as we continue additional for year and towards busy driving a us have We our laying groundwork success.

and review remarks results we'll I'll XXXX business with and our regulatory to priorities. XXXX start my of discussion expectations. Then move top a a of financial

Pennsylvania in by midyear, in New We Jersey in and West program, legal rates security electric year. our an distribution calendar we'll infrastructure investment to this have file application an an Then Ohio active plan file in case new this file Maryland entities. New quarter, IIP plan regulatory a an we Jersey. or in rate and to consolidate Virginia, Later for

cases speaking, opportunity we've cases bring the allowed average our was At X.X% end ranged ROEs rate significant states from an in address XX.X%. the our made X.X% the while Broadly XXXX, and since to customer-focused average provide the each rate distribution weighted and equity in last authorized industry the our will to with investments ROE of line returns returns. of

customers. we rates of on residential peers our sensitive to current in serve states below XX% the pressures are Our we XX% inflationary environment and our are the to the current

cases resilient our customers position in support that will affordability the and filing enhancing ensure smarter state. customer grid. Each maintain for will elements critical customers better experience, provide Our we the while a this address further unique electric reliable, and support year investments serve more rate for low-income to

and the for highlight our distribution investment rate the New middle Jersey electric concurrently In will plan highlight our cases of continuation year. plan distribution to For an to New to through example, rate investment reliability rate file of investments. incremental the this our infrastructure case by plans file will Jersey, Maryland surcharge. program in with the case improve Maryland, we And

as coal-fired depreciation II and rate with would the XXXX. upgrades. filed increase depreciation on Power's take Mon with of XXXX and retirement have effect study, in rates assets, dates Any generation which the would the until conclusion case. base based depreciation of such and not investments rate distribution on will to associated rates Virginia, the resiliency reflect our West substation commission update feeder In proposal circuit automation focus case will programs and These reliability, sectionalization recently upcoming

through activity. with our Turning any to strategy. efficiency won't consolidation in simplify is appropriate our of for step represent our state future to new over Pennsylvania the operating electric model, Pennsylvania changes rates legal current structure utilities, increase entity flexibility this and case This as rate combined our will four customers. an be and Those our financing consolidation align of important time

In adjust V ESP generation procurement non-shopping will for the customers expires of year. after current Ohio, May ESP next in our

address and continuation such capital In and as of such the programs other mechanisms filing will addition, AI. DCR existing regulatory writers as this

a dialogue, extend are stakeholder additional broad to efficiency, and as considering income we programs our And low customer-related initiatives. support that we have energy commitment

the filed also was will Ohio experiences forward mod commission, enhance our approved and plan, delivery customer technologies. of the support by to investment emerging offer look grid Phase capital continue advancing X work If $XXX to July. the which million modern safe, power, mod last We grid reliable

As regulatory to we major summary and filing, make each we'll a comprehensive post our website. convenient IR

regulatory You'll find page the on new and the Materials named corner. section site information this a of Investor

to matters. Turning financial

$X.X Brookfield highly utility financing. a with recent financial to growth. attractive, a represents position sustainable long-term will excited equity an premier billion be progress our with transaction agreement in and milestone strong deliver efficient The Our

investment to our improve transaction and XX% $X.XX transaction intend billion interest. debt The an closes, at note structured and $X.XX plans balance of to the FFO XX%. closing further credit with a billion XX-month our due X.XX% deploy to aligned financing at and metrics sheet the targeting to proceeds metrics Once we with our is

'XX and target also XXXX the average this CapEx plans. proceeds We're billion into growth and Through X% we're more The capital increase XXXX $X rate to more plan, XXXX in our our in nearly the investments XX% beginning XX% billion period. brining base supported investment rate annual using XXXX. $XX over than to plan, targeting formula approximately than

taxes the federal to taxable existing $XX approximately a of at offset on million. we in in and will the million $XXX cash credits We taxpayer use annually. transaction, XXXX NOLs tax moving cash and be expected to resulting expect most forward, approximately an of Beginning gain

FET XX.X% a GAAP completed $XXX was in recognized XX% that triggered prior agreement sell on a Our sale million deferred We fourth in to 'XX additional charge our quarter in gain interest result, the we XXXX. results. an a non-cash As

fourth include to compared the changes, customers Fourth XXXX transactions. earnings unique to and basis, rate share per XX% were credits quarter the in operating impact $X.XX $X.XX share Ohio year, drivers increased earnings the and provided per adjusted Operating this excluding financing which period equity of or an for of same XXXX. quarter on accounting

from nearly maintenance fourth material programs. associated impact storm work, with distribution our capital primarily and weather-related higher of incremental and quarter reliability activities offset operating results higher investment with certain benefited our business, In expenses, along the planned demand, accelerating results These costs.

the customers. increased norms quarter basis. weather-adjusted but very fourth from mild XXXX quarter distribution X%, the XXXX, fourth industrial decreased sales of from compared demand increased from historic weather to was slightly of to increased and Total X% a on closer deliveries resulting Residential that

residential X% higher our up to the a In the were October prior call, almost and with about the fourth slightly deliveries quarter observations decreased sector, due basis. remain levels. commercial pre-pandemic weather-adjusted weather sales Consistent on year to than customers X% on from

commercial lag to XXXX, overall to increased sales in more XXXX X%. customers they than by continue While slightly levels

and metals increased fourth X% fabricated to customers continued by in steel nearly led industrial to compared sectors. automotive, XXXX, sales the the Finally, of quarter recovery mining,

closer less industrial trending with XXXX than Overall, below our full sales transmission flat costs. as XXXX X% XXXX In fourth rate growth year-over-year and continued sales as year results levels sales lower X% XXXX well are the with to quarter program business, benefited formula investment associated levels. from to Energizing Future quarter pre-pandemic our base financing of fourth

I nearly $X.X to billion recognize and want quick chain and a who and materials to supply in reliability chain operations other in to significant projects supply grid our investing transmission, take issues improve overcame resiliency. second teams, XXXX,

for For first segment transmission service that a Ohio. reliability example, in we XX-mile will Eastern customers completed the successfully line of enhance rebuild

finally, redemptions investment is pipeline year. only transmission New plan corporate lower and projects and from XX in XXXX, we the us transmission costs will earlier $X.X Central a and ahead the investment project XX,XXX that billion, In customers. Peak segment two benefited construction associated long lines And upgrade Jersey, from earnings debt premium is financing in benefit of our with higher operation miles And have our mining this holding company business. this of Signal on

non-cash year-over-year full $X.XX of growth. above and midpoint mentioned year Again, compared transactions, on which GAAP operating of were $X.XX accounting I operating XXXX the improvement XXXX, the share, earnings basis, adjusted we per earnings achieved the we largely credits rate Ohio a $X.XX represents year, our equity an per to in changes, earlier. guidance. XX% excluding reported Full For charge reflecting the slightly earnings share, tax

expectations, financial plan billion. execute and solid Our $X.X resulted XXXX regulated capital cash $X.X year, $X.X of made investments billion investment operations which in from is more customer-focused last and performance than plan in our with our to in we billion in line

outlook our forecast contain plan. It's Fitch our and met debt executed year. beyond investment-grade received to that target, expectation FFO capital a S&P. extend we The with XXXX website credit achieved our financing an materials our through and yesterday updated afternoon we plan recently posted including will And outlook financial later XXXX, our from outlook ratings plan, XXXX to just our and positive financing load this

plan. As $X.XX to $X.XX enormous overcoming was impact projection for lower interest per a accelerating year-over-year John challenge face into to of pension, our earnings reflects the XXXX together $X.XX our from Signal XXXX year-over-year midpoint. The mentioned, share guidance debt XXXX expense support combination at and which earnings of guidance related reductions the O&M X% with the our resulting from we growth to

Our strong regulated long-term to our plan utility our by growth X% earnings transmission drive resulting focus on distribution to increasing is anchored executing X% investments. and growth, outlook, in

and with near by management T&D the significant have our by we improve improving team Peak core to earnings replacing complicated the as balance with and over story, pension earnings provided are growth Peak While positive our term the from and sheet. associated Signal earnings in pension a the offset quality Signal high-quality time benefits the laser-focused earnings

expectation terms from distribution businesses are continued part customers the cost will area of we investments million for and the an investors. is an the discuss where drivers, into pressures. we growth inflationary dividend with transmission we improvement keep work for eye strong on Board this In recent an we're meeting, of fresh our on XXXX, XXXX another driven by in positive we And ending in our in accelerated need to our the making is respect our structure, X and a importance the other certainly our off to but to note,

to XX% from Board for dividend up resume payable to also XX% targeted growth late approval a new approved previously. to to XX% payout to And Board policy we raises ratio XX% year. that our The this expect subject dividend dividends

reflects peers, we've improve Our taken new steps payout value credit profile enhancing and our and with commitment to ratio is more investors. for to in line our the our

in announcement moved S&P this We're future. this credit the with recognize outlook the I on our commitments. And to which our and action, strategy deliver Friday, sale a I'm use excited proceeds and the a mentioned on Energy asset year supportive based to manner. positive of as First on for our for those to work about pleased plans our

the shareholders changes, years steps the move range of past areas We've momentum of for value We the feel a to of execution our broad Company taken over future like regulatory on on and our and strategy cultural we all profile benefiting our from improvement have great and focused focused on significant customers. the delivering for our stakeholders. in the our forward credit few financial the customers,

and As always, interest thank FirstEnergy. your you in for your time

Before the we take I'm to turn to your questions, call back over going John.

have We'll I take another to to your progress. of John. am pleased wanted with Thanks, how I say opportunity time for FirstEnergy's plenty questions, but

exemplified has morning, and performance have this and goals. about excited are we They diligently you've this As team future. a heard I'm where our have to proud they company, our on excellence. delivered plan, executed commitment of I'm our as our

Now, let's open Q&A. to

question comes Instructions] a with Suisse. Please Thank Our proceed question. first Credit now from with [Operator of Nick question-and-answer Campanella conducting your the We'll session. be you. line

disclosures, the in here. lot the a all deck Appreciate

John, you now? the guess, on you expectation more? down us line, just second the you us I understand time the is time that on call? for what of someone little can narrow have So kind bit help Can help line Should before announced the quarter a CEO

related we're what talked the which the that of what line that with the so Consistent year. search Nick. continues six Everything Thanks been remarks, talked quite as tell you this far very earlier, as now. that. with we're active the criteria, part looking to still process we've consistent we speak of not months. viewing had three only a bit I is that about talked that and we right activity we and time we've now Board It's about to about Yes. for, is can prepared

saying CEO we've think we through FET like were on a that's do continued the a to Board that getting search now we we that the execute that's of active concluding priority to right very see company, focused individual. issue, progress, execute though couple on high I going positives has address search. the that, transactions, that because this and But very things good process we we that on has are as what the indicated to a we continue realize even been Also, and right a Board been positive. the the is very want

And just right. remarks, prepared acknowledging I a cyclical All probably the material more see guys then, Okay. guess, and have are you done those earnings, pension the good offsetting headwind do like with job earnings. Peak type your which Signal

So there, fact part that 'XX, earnings the and the in just be identified kind fact year, us Peak X% just trajectory that maybe share of offsets this extend plan anything? to that later kind may keep you're think as can to you've are -- annual with if Signal not the we coming the the going that you of X% within what that of about by you the growth

is John Nick, Taylor. this

let a maybe So thinking long about few me term. minutes to we're of the how explain kind take

XXXX in obviously you the Peak, ex earnings we maintenance year. plans expenses the because if be of for improvement accelerate the think mainly put that year-over-year that this pension and and place business, controls additional going cost of the actions ex-Signal took about year to we last to So there's in significant

XX% this Signal in offset the from as the holding business. benefits sheet projected those in XX% about our And well for now in be balance transmission the as year of expense more earnings XXXX. interest continued decline of items to XXXX. earnings was improving that The and pension our company And growth Peak to our as is in than close

Peak FET growth capital from spend above-average distribution and organic think what the business in So, new from EPS the see our transmission our forward, business plan the the and continued we're accretive if the in going then deploy growth about way think program how rates companies, going to ex-Signal ex-pension, base an proceeds is transaction. from you'll I formula I from

current Company. And of plan, earnings of less in total those is outer pension years, the probably representing be the going Peak Signal to XX% so our around contribution a of

for year-over-year regulatory drive So obviously, drive growth outcomes, our is continuing will us important. is to what's important Company. that, transmission going with of the the And going be overall significant to very to business along control be earnings cost

Thank you.

Our line your of Andy next with Please question. with Storozynski the question from Seaport Global. comes proceed

CEO the search. to So ask just about wanted

there's going with So John, that current stick appointee an the to from is the strategy. Board you new mentioned that I think the expectation

that does shouldn't expect EPS least we CEO? changes XX% that So target, at mean any new your to by growth the

Yes. we that as view straightforward. related business, mean strongly strategy. to I in very controlling very strongly we're strategy management to on that strategy. focus supports the our very Board our cost, executing What supports that team the investment The strategy, on going

So that a able for yes, and looking to would be strategy. we're on execute in much CEO be that very line

other, in the -- the if how then John, two And expectations then you I'm the mean, do those you is -- distribution earnings the to potential and ESP -- X? for the ongoing to Ohio, state Okay. investigations and the wondering related have given HP backdrop I in then related about just the any case proceedings? impacts think

significant the focused some companies base such continue ESP from that's the the that, right? services on plan, Yes. and how I Having rider generation nearly important as programs said as difference But of to distribution I are extraordinary. And the ask those capital so ESP in rate between a for on not base We're to case. that's to there's the primarily our that consistent our a my for not kind would ESP we that's planning you main, us. So file don't with peer will rider anything and state. shop. future. of recovery plan our tell are perspective, we're that customers the in guess a procurement there ESP we in in an going the distribution for is as case, those

if And midyear, are the soon I bit you maybe I a dividend, as understand later. correctly, lastly, little mean, growing Okay. maybe as the

for account you dividend when So targets, fact FFO already start growing. to debt that the those the the talk about will

in our all Andy, that's correct. Yes, that's plan. Yes,

Thank you.

comes Please Wolfe from Steve question. your question line with the next with Fleishman Our of Research. proceed

Yes, hi. Thank you.

So a question. just to follow prior up with

earnings growing you then say and when is while to kind fair be the X% to should outlook, the better than it of the So earnings utility the parent X%, the… summarize that essentially

Finish up. Steve. ahead, Go Yes.

Yes.

I -- other what it next Now guess, got Is situation then that exceed base you the years? going under-earning improve because few over and -- part just the to you've the growth be you'll and -- you're shrinks. to, rate this improve is able

right. Right,

file return for of if year, me, at this Virginia, that New -- year, low mean, Maryland, them, the just look all equity. I cases you Jersey, fairly next or West we'll have except excuse So Maryland, New on

programs Ohio, we're IIP in business So X.X%, X%, New for going file in in distribution for program grid the Jersey West Virginia, to New filing also with we're mod capital Jersey. an the

provide will the to that of significant distribution all growth So, business.

incurred You into know we reduce about sheet proceeds the the FET will the that robustness transmission business deploy the otherwise company how then expense. and from the of transaction interest and balance

as Peak, so ex-Signal growth. see business look at we ex-pension, above-average And you'll the

Okay. then a guess question John or Somerhalder. And I

on you're strategic it too? search, options also this, the question are from still the there same other beginning? separately reviewing Is as Just characteristics CEO longer. guess, you any chance like takes looking mentioned the I that of is for part And you the

consistent looking are Yes. requirements, about. The Steve, talked with what we're we've for, what very

We have changed that. not

we've good that are is, on earlier tell we've focused execute on CEO what the from that that said can had consistent truly really Board As I and we've said, supports right you, individuals plan, in plan. and can the with we What interest the believes finding have that.

that Board down. path is So, the the is headed that

Thank you.

Pourreza proceed with your question. Securities. Shahriar with comes line Our Guggenheim the next question from of Please

are on How Ward Shar. James for you? It's

How you doing? James. Hi,

the repayment, towards or flexibility yield to benefits earnings. slides the debt recurring growth of my deploying rate rate continued of XXXX, glad beyond to in well. as you you base Thank terms for that transaction a to both mentioned, obviously you either lot see doing taking of which gives X% X% the growth announced Hi, target question. recently annual We're FET in capital,

But 'XX? growth thinking we from target specifically to and and continuing be post the investment 'XX, like X% you've on rate is X% annual just X% the XXXX, X% to highlighted base the 'XX in in XX% step-up assuming EPS side, that annual expectation X% or XX% should sure X% the point trying make correctly guiding drivers this you're we're to post plan even rate in base terms about of growth a level. in Just also of officially applies Just that time? earnings 'XX period, not beyond high in capital at annually though

Yes, James.

from is So get to CapEx the year perspective, my decade. $X.X billion continuing into billion $X I time think the the over I that plan to XXXX. increasing frankly, back last the out half quite from of by see we trend And

XXXX, plan. So you a longer-term details more once post announce we'll of much obviously, way in the we provide

really do industries, need XXXX significant our capital transmission support investments electrification see program. to the support resiliency, CapEx the I to continuation But for reliability post of different of

the of decade. more see and that the half back I through increasing do level So

you. Thank

with Please comes line Stanley. question question. the of proceed next Our from with Arcaro David your Morgan

was wondering potentially the Pleasants plant the factor the how resource state? I West Virginia, to speak if just considerations in and planning plant there into acquiring around that outlook it in the could you could

part of the to some has support our we West the our could facilities. Pleasants least at own controls generation Virginia customer of plant that as to it at continue to operate that load. commission us asked environmental to sense the David, would improved -- in make has Yes, one plant compared look to And

asked by commission. what the been with consistent we've are We

are we'll evaluating late this We have And in March decision. that think some results at that that will inform time. I

for load and the economy customers the and there Virginia keen West the interest. are

on result could hard faith at if comply steps can't sense, I that be. able to work as And what time a next do take that that make prejudge depending we'll what you we will could be know could will But be the evaluation. there to if what do evaluate this that with further to to conclude let we're the see commission additional to we or analysis what sense. the asked we steps the but So, make may and may good see

I of Okay. Great. that offset. in was That's was you that or then the the planned helpful. dug pension just if $X.XX, the of of control source for offsets is -- any wondering I much forward would to and into up XXXX, that, you doesn't a that going And the that was as how wondering as $X.XX I ends -- there's terms recur in what's see of kind your of curious sustainable one-time recurring a being nature earnings? to you more in in there

Yes, David.

in the we accelerated into So about coming tender permanent would plan, if as is as that $X.XX, open of that from our market OpEx of you repurchases just I year. executed well XX% say would the probably debt 'XX, that from 'XX think back financing year-over-year, the which we half be the last

driving costs the I'll aren't continue timing Signal are of sustainable put is and other to initiatives Peak in place organization. that is out trying round controls out a some to difference. to programs entire in future, into benefits benefits and the throughout or some necessarily call, what contribution we we're the -- those other, but that drive to towards the $X.XX some offset and cost then There

it point the we're this kind that's at about way So of thinking time. that in

you. Thank

of comes line Julien Dumoulin-Smith with of Please question. proceed next Lynch. Our Bank the with question America from Merrill your

base Listen, just coming the back to growth rate question.

comments, yourself growth some to your And just little you of expect how some you to reconcile accelerating how to a rate when here alluded revisit think to to base I do to think much that you is about relative that accelerate just to X%? later the growth the growth net know bit the terms how from year of you alternatively, wanted But in I outlook said and earlier. to here? of under-earning growth might about the potentially. rate of back X% to is improvement the think you baseline about in by this Just net core the the X% to base that how X% like more what like driven understand the disclosed. X% understand Or

it answer I'll maybe way. this Well,

the capital post some incremental support electrification earnings on we look capital last supports X% X% so, and through of of work initiatives. based type and and that we that the continue the we've year done at over to program to rate And 'XX support to the So the believe the time XXXX base resiliency that period. there's and plans or support growth, even other to X% reliability EVs 'XX

that think we're number said, do beginning But increase would when you provide annual you all I ready. in color XXXX. like -- could in that we'll to that see detail So, start I CapEx

later alluding that, And related just delta to the to event base what's FET a just to? Just that terms ready, in owned that the you're the not that year that's clarify And as rate to of this X%, sell-down? baseline. the clarify, when that's then growth, you're

we so So so the transmission so total by have time business sell -- let's $XX that that the billion would in base. off or XX%, yes, say when rate

by So owned XX% effectively. be Brookfield of that would

about different a of we that's XX% the XX% XX%. If sell additional our off represents Yes, XX.X% plus transmission. total

math the XX%s. two So works but John just like different indicated,

expectations update 'XX to accelerating later onwards? CapEx that show And will a roll outlook to it. beyond 'XX this an CapEx budget year. like updated forward just here, going that for look would this the include later look Got trying provide should to But set year on you're what reconcile just an that

to hard we're going Julien, exactly going the provide mean, you. what -- it's to I what is mean, tell I to you outlook

the provide until can of to ask going But kind that we when that outlook, to see provide extend the provide the extend normal I we the just wait think, that we and typically then you just we detail. I we'll time, and detail we would wait all are -- outlook.

Thank you.

question. the from of Our Please Sophie with comes Capital KeyBanc your next proceed Karp with Markets. question line

been have of questions high-level ask I answered, but you a All can question maybe here. my

your really stated peers rate some Ohio, jurisdictions, peers jurisdictions are with and growth. by of growth your what where growing guys so forecast operate your consistent you base characterized growth EPS Pennsylvania, targets not population also are higher And much your So -- higher right? in

about local right? do pressure the how Maybe population forward, what growing mind, how something you you So that? that do And comment you we tailwind have not the growth that on that And think missing. pain, considering of necessarily in about are can so economy, will that with and supports ground? help to build about feel going maybe you spread that

Yes.

states, were good peer rates yes, The Sophie, we to different start those up point. XX% the more approaching single compare anywhere affordable our we affordable all news from digit that's in in of out key to very states, states. when our is in a

So it everyone as knows, ability and invest our does us in give we've the some underinvested of jurisdictions. -- to

really need a there's reliability the to so benefit other things and for And that customers. invest

of reliability from of because jurisdictions where some even because we're you customer have as starting some manageable and rates the starting very on So customer we're without feel other, count, we other that. needs growth usage these for like affordable with said, very high we that's

see out plan as growth see, see And then, we do first load we out transportation, we later that the will that XX-year move help electrification in we support with X- to can additional the of through do period, investments.

issues and affordable we view capital that it, that's deal affordability that's we and robust how even can how this So, with remain more plan. we our with customers' view

it. in remind diminish impairment going kind what impact? to there's to you reiterate it? what then -- to on you if is it Do is exit naturally it, a just And of if if over maybe can what and balance your it of of Peak, is could is Signal Got time? you book Or earnings I plan value you are sell the path if And may, can planning your sell here? sheet us possibility profile and just the

Yes.

does the Peak. I Signal contribution for earnings So plan call mean, from diminishing

monetizing sheet. the we've As not but the to the do continue have future. from that to sheet And at of perspective, before, a we'll look is we balance opportunities, I talked difficult investment significant balance continue those -- been for our looked million, into that the investment we given size has our $XX so think and about about sheet on balance

Thank you.

of next question. comes question Anthony with Securities. proceed Mizuho from Please the Our line with Crowdell your

on up two One housekeeping following I guess, question. Sophie's maybe quick Just questions. is,

what assumption in XXXX, for is pension your Peak Just in Signal earnings?

represents $X.XX about earnings of the it XX% the So, midpoint. of total

on this Peak you talking question, rates be Signal ramping think will Steve's Steve I earnings utility was and up decline. then the -- were pension maybe as earlier, And I Great. question earnings growth answered think

rider additional eligible maybe going of refund recovery is eligible much a how that versus for that the for utility Just into is filing. capital rate rider a

Yes.

we're up you business. formula of we to rate transmission the trying in ramp is time think XXX% formula in out So, our XX% business at look plan, the at we're 'XX to our the the I CapEx overall think about I distribution get if and capital rate, XX% targeting by

amount in CapEx of the significant plan. rate fairly formula a So

could question, I if lastly, bandwagon. CEO the on just jump And

some in last has for four Company made the or months, over strides or transitioning transformation Company. the Just three the great

does to like -- move on John, CEO? title full-time the thoughts, from Just interim

that we thoughts wasn't I interest. are question. strong expecting My have

me thoughts are the So we're and on my that focused Board my thoughts as transitioning are. back concluding that to what

gentlemen, and Ladies session. turn you. Mr. concludes our the back to that floor question-and-answer I'll Thank

any final for Sommerholder comments.

Thank much all joining in and Thank thank your for very We you, of you. appreciate support and you today. interest FirstEnergy. us

Thank today's conference. you. concludes This

your You may your at participation. this lines Thank disconnect for time. you