FirstEnergy (FE) 26 Apr 242024 Q1 Earnings call transcript

Hello, and welcome to the FirstEnergy Corp.

First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Irene Prezelj, Vice President, Investor Relations and Communications. Please go ahead, Irene.

you. Thank and First everyone, Review. XXXX to welcome morning, Quarter FirstEnergy's Earnings Good

Jon Vice President Brian he today, by Officer, Chief will our will joined Our Executive call Tierney, and Financial and President Chief lead our be Taylor, Officer. Senior and

presentation release, financial related website and on information firstenergycorp.com. slides available our earnings Our are at

SEC Factors from will our our results cause measures. include non-GAAP The those Today's found could statements filings. use discussion be financial measures non-GAAP today's supplemental differ materially of that of the and forward-looking can the financial forward-looking presentation statements. along information, appendix to reconciliation in includes of with

it's Now to over call to the Brian. my pleasure turn

Thank the regulatory developments today review some I proposition. you, for key will you your first updates morning, performance on FirstEnergy's review This joining Thank and highlights morning, quarter, and financial Irene. provide for us interest value shareholder Good everyone. and for in FirstEnergy.

first $X.XX quarter higher per midpoint GAAP per quarter, share, $X.XX guidance earnings than For in delivered last year. were share per $X.XX $X.XX earnings the for share Operating per of of FirstEnergy $X.XX the to versus the compared share XXXX.

to important better our compared higher quality additional earnings decrease expected provide details and earnings in revenues note from Peak resulted serve higher weather were for investments call. higher will to utility expenses more to favorable offset later year Jon the and that customers last the by is O&M It in planned the in quarter. Signal

combined ongoing updates we us improvement our customers, X% as investment to the continuous X% our program to last our program, operating branded earnings rate. billion regulatory affirm call, plan, That confidence better growth During our announced long-term our give $XX X-year the to and EnergizeXXX. serve with

per We for are XXXX. share $X.XX of earnings to affirming range also guidance $X.XX operating our

providing of to year. for guidance quarter of $X.XX this second are $X.XX share the per We

in On to in per Our confidence increase share our gave again to June. us of an this X.XX% an would in opportunity represent annual dividends dividend $X.XXX increase future XXXX. declared the basis, payable the versus

continuing run our X on to and We hiring make recruiting are progress primary businesses. executives to

make We in expect the to announcements near-term.

announced an was and the Chief our of him and person background as Combs at Technology President recently deep financial John most leadership Shared cybersecurity his organizations. our supply Chase. IT, flight Officer we hiring make corporate technology of month, perfect SVP acumen, Services. Senior in operations well John's as this Earlier John and and to lead the as chain, Vice JPMorgan

are welcome We to thrilled the John team. to

on balance that $X the of to the billion fuel improve proceeds billion multiyear of are in be balance billion this We to our expected interest-bearing year. raise notes received On March repaid phase final FirstEnergy $X.X our $X.X closed a equity our XX, sheet with and growth.

truly partner remarkable size. sheet in of as as equity phase the March to billion company the XX. the have on The FirstEnergy's We fast-growing business. balance equity cannot transaction be ended impact of That's this transmission our our final for raise, months Brookfield overstated. of $X total segment increased of are excited The the in a X on XX% FirstEnergy, the

reliability in time utility are wires, we sheet organic investment enables balance For the this first to a in with company's fully strong regulated, companies mostly that improve experience. our history, our customers' and

to On corporate FirstEnergy's Corp.'s business impact strength FirstEnergy. rating excited and outlook. The investment senior senior to clean me grade. balance investment the unsecured a sheet this a to our with slide Tuesday, closing upgraded S&P credit of and capture rating on what represented grade lot model positive unsecured about the come the to company upgrading transaction, the to BBB rating by Moody's recognized Following of FirstEnergy

plan. I are and Let asked reasonable People us where know we our to they outcomes. for fair how them when making have initiatives. regulatory tell will regulatory key regulatory look getting some me provide we progress updates milestones on are on

regulatory jurisdictions. obtain we can that outcomes across we our proved quarter, the During constructive

We a increase, received rates our rate New equity approval our Even of and XX% X.X% case below this JCP&L's with ratio. remain capitalization XX% a settlement in-state Jersey, in authorizing peers. ROE

Public Virginia case West Service approved constructive The base Commission and depreciation settlements. rate

In net approved XXXX recovery expanded $X.XX no an disallowances. of with billion settlement charge energy addition, about they fuel for through

results fair that FirstEnergy examples Jon looking the investors For detail quarter. during we on reasonable remarks. regulatory provide for provided milestones and the can several additional in obtain his will outcomes,

of noncontroversial filed case, to over settlement For II X. Approval asking meter Ohio, opportunity A us this we in-state schedule. will is we year, complete of rollout have our In the to the our parity with an advanced years. active scheduled hearing peers. bring for for our settlement the Mod infrastructure balance a Grid regulatory in X June

the We month. approval since Pennsylvania, rate case. next in base case rate and riders of Earlier case filed this of V base this filing month, are number XX.X% a file requesting ESP we an a That XX.X% and case we seek a base expecting but will our base rate a modest in ratio. reset equity last quarter, increase ROE rates, we'll a will

December, a of effective in January in expect with next rates We year. decision

Before I offers to to shareholders. John, turn would the highlight FirstEnergy value I to the proposition over call like that

sheet of both have completed Moody's our investment-grade overhaul have at and achieved We and the S&P. multiyear status balance

do many fund from industry sheet and anticipate of billion not plan. peers needs $XX FirstEnergy our that we Our equity differentiates strong incremental investment balance to our

rate, of represent earnings potential dividend a operating shareholder Our total long-term with annual return our to yield, XX%. XX% combined growth

affordability throughout is earnings by period. our investment strong regulated improved, core Our our vastly quality growth driven the customers' in and businesses remains

the of represents by value our to FirstEnergy and high-quality Board proposition Directors business a At our shareholders. led attractive team, significant management risk transition of and end a

call turn will With that, the to Jon. I over

X% Despite we start this team Thank you, resulted above execution morning, that earnings in discipline a earnings operating our year another financial increase guidance. $X.XX year off the and from guidance XXXX the Brian, we versus our full and range everyone. a midpoint good midpoint to good of a $X.XX with are are And of winter, to guidance. operating represents strong of which mild our reaffirming share, our

initiatives our details quarter, around performance on and financial review sheet. regulatory some strategic progress key the balance the with I'll for close Today,

financial our temperatures share, were winter guidance operating in the to as XXXX of on earnings is the quarter. $X.XX mild and which of quarter a discussed at quarter $X.XX fourth despite above share. This the planned performance Operating impacted our first call. retail a operating increase Looking that midpoint this a for compares earnings includes sales expenses the

on planned the expenses increases cases maintenance in West the the of in timing operating we this Jersey, growth fourth earnings back-end year be and associated quarter half New in dates this first and year of also As effective given rate mentioned call, loaded, of the work. will with Virginia

document financial and last Our first detailed are IR night. results website we the our to in posted quarter strategic highlights

versus normal, At operating primarily in higher And Signal although a level, XXXX, given impacting plan. earnings expenses base were expected an not of sales per year-over-year days increases growth consolidated share rate quarter Peak, improved rate offset from that XX% $X.XX first base customer new below first versus winter demand were planned X% degree was programs. down earnings retail a with from our quality results decrease in were by the formula heating a associated impacted planned, driver partially the earnings rates of quarter significant mild $X.XX and and by share in from by

results, you presentation, a consistent notice how filings our take our the also let's few managing minutes to segment review which will with in segment we're business. reporting So and change, the

entire reporting corporate. We places streamlined transmission stand-alone are companies organized and and simplifying reporting of and easy-to-follow now and This eliminating segments into transparent segments, distribution, individual integrated reconciliations.

in expenses mentioned $X.XX an vegetation were share a planned work, per lower our operating management specifically in around of Ohio. operating rate in impacted last share in In partially by business, the year, versus offset first earnings earlier, and programs by quarter capital rates investment the Distribution from $X.XX increase largely increase I credits

formula including $X.XX our of $X.XX programs, jurisdictions a investments, Integrated earnings were by rates expenses. in growth first planned rate quarter operating transmission all Results base and in compared rate business year. segment, to the increased In to due in the offset in base implementation integrated in share of share largely last X per increases partially this operating

share the resulting a rate base transmission in from segment, our capital $X.XX formula stand-alone our a investment program. per from In $X.XX transmission rate growth operating quarter XXXX, share of versus year-over-year X% first were earnings

versus of And in from contribution earnings finally, in per this share in were last share $X.XX XXXX, share the our first per $X.XX the Peak in operation, planned share quarter $X.XX interest decreasing primarily first to per mining corporate of of quarter per first quarter in X/X $X.XX year segment, ownership the Signal lower losses the from year. reflecting the our

Turning briefly investments. to capital

infrastructure plan our of increase XXXX on just transmission businesses, ahead grid $XXX investments. versus totaled of our across slightly under an CapEx levels quarter renewal each First modernization, and nearly focusing and XX% of million,

billion CapEx As is $X.X a for year in reminder, versus this XXXX. billion at planned $X.X

Turning to activity. regulatory

very customers are to solid with We rates capital EnergizeXXX our recent our energy our for affordable customers. our transition program. orders, allows base returns the rate outcomes while investment we're through and pleased support for And to in consistent regulated investors enhance with the keeping that plan case and for committed the our reliability communities performance

ROE X billion, our system. rate $X and peer be million we ratio. in currently aimed Jersey As our will continue case. rate on a XX% over adjustment X capitalization over order initially an Brian JCP&L's final base working years November, average, mentioned, improvement see new customers are to $XX on and filed June including a Energize through mid-February, issued effective X.X% capital rates, the to enhance investments rate $XXX BPU the million which New in reliability Jersey of an in modernize represent below base The proposal New totaling equity in-state and well distribution And infrastructure

Virginia, peers. an West The on from our million Rates base XX. of order base resulted March a below remain Public ratio. rate on about ROE In Commission our adjustment $X.X and in case final for with X.X% of March rates billion, received West we the XX% Service a a case allowed equity customers $XXX Virginia effective on rate in-state XX, our XX.X% rate

West for as an increase an ENEC of Additionally, Brian case we received Virginia, order our $XX on in million. mentioned,

We with by XXXX. successful down $XXX deferral to reducing in the million million have recovery full been $XXX expected

case $X.X rate XX.X% on billion, energy enhancements to of filed in on case we and this grid modern base a The month, Now ratio. requesting on activity comparable a our rates current keeping while to programs rate with Earlier Pennsylvania let's proposed additional Pennsylvania. on state with utilities. million equity equity a an move return customer-focused in a XX.X% investments and base reliability service $XXX adjustment builds smart, rate capitalization the other

include outage reduce restoration of vegetation costs, reduce tree outages, enhanced associated and changing on amortization Key to the with a major the implementing conversions management streetlight which traditional recognized XX-year recovery expense method, time components LED pension caused recognition case maintenance pension of and reduce to is and program future storms, based losses. previously OPEB cumulative and costs actuarial COVID-XX recovery delayed with of

blended a to includes rates. tax also to XX%, federal state federal case provide previous rate statutory continues state The from customer savings also of tax and changes but approximately

pension the application and test Additionally, year actual using method. recognition a between differences defer mechanism delayed and proposes to OPEB normalization the track expense

the of to improvement phase third we rate improve reliability will programs investment addition base In case, plan summer, infrastructure our customers the a file for program of include which Pennsylvania. capital this long-term to to

capital continue to the Grid system Mod X.X our X-year settlement distribution includes settlement turning completing smart modernization II. deployment a The to for phase million customers Earlier plan, we Ohio. $XXX of to of distribution this grid investment electric a in meters the by And the Ohio. filed million modernizing month, our program finally, second

of schedules Finally, supporting notice full to prefiling a we Ohio of next a application by our plan rate May. week, with and case the base end file

all with the billion of to the capital recover riders Key the and equity capitalization Grid case those companies, plan revenues riders' actual case and over highlights total which the ratio test of months. base is modest reset rate overall Mod pension year a of of other and reflecting AMI, rates a of features pension impact than same includes an across over tracking and to including a we mechanisms. compared coming million proposal that other less $XXX than expectation in revenues average XXXX and which in in rate base investments will refined of in X% the increase to The of current investments some include recovery an current will be the X applications, $X.X included to and less customers DCR customers net structure capital a

but work And goes we a pleased balance team this finally, touch results. just like was closing with hard effort, the sheet FET the into be to the of transaction on a and this, and of any transaction. lot the couldn't more Obviously, great

of billion long-term our $XXX at $X.X in Corp. short-term of to was off debt totaling the $X.X March million close was received debt billion to was billion, and $X.X Of to with end FE and total pay deployed proceeds, plan consistent immediately, the redeem which at

receive on remaining to billion our this market conditions. $X.X which will expect the management, depending liability be used programs additional capital fund to We year, later and

to This resulted appreciate are this respect utilities. years over of long-term credit would $X have pay an rating off in at debt that over otherwise billion that all pleased agencies last debt transaction Corp., the all understand and to X.X be billion rating and been in short-term investment-grade And to with our importance completes X stakeholders. a we series redemptions the transactions to billion with financed close of back FE with $X our long-term high-cost of and and utility $X debt at debt redemptions in

Thank you a We're your stronger execution a start today. fuel balance to this with time solid for to going strong forward. growth significantly off our and sheet year

the call Q&A. open let's to Now

Guggenheim Instructions] is first Shar Our [Operator Partners. coming Pourreza from from question

I Jon I likely think I for of Ohio look, the on questions the touched it on sort to So had But thanks know become is state obviously, of for and color epicenter Brian, some that. case, on Brian this hyperscalers. going the the

for going maybe balance kind sort design of a other or filings customers as So to with trying the I to opportunities, to is center-focused of data the in in case especially while this be curious guess then to general? dialogue there, data these if kind this And tariff I'm any rate account there's Brian, of impact maybe follow-up business? track trying just how centers to to going

out amazing been what Snowhorn, The So to with We've Josh let and It's they Quantum data of to have Frederick, positive. on see going outside me the team Loophole fascinating centers second of kind start is it's of right with really dialogue one. there. out his see. Maryland,

where center We end be team field there and used lines that were huge building have XXX X that complex. kV open Josh an and to aluminum smelter his in now an data

one and hubs They like data be of also So time from with Northern we're dialogue direct that biggest them. to forward as in expand things dialogue. We're seeing will center our look customers continuing from over Virginia. out

And we're of our the thing the same Panhandle territory Quantum Ohio, the out well. where Loophole used We're as from folks. seeing coming the expand and interest things in to seeing I service place Central you're Now Maryland, in And seeing it's in Pennsylvania. also Ohio. work, into up as

available what's a connectivity transmission high-voltage are territory our the Given have ample plant has land with over sites happened service number that years, power retirements and the system. -- brownfield to of

fund we center given attract these? doing as we growth. So that are for to $XXX don't about set The well we're help that are up know, We're we able we to think enable positioned continuing the going that invest tariff-wise have? forward. some excited to open million tariffs anything well Or the we PJM data opportunity We're of that I go we're about forward. Jon, growth. to X

question. Shar, that's a good really

I take that think look over a something will at time. it's we

up Our such of these be customers transmission-related tariffs customers. are that would set or some

So by residential distribution significant as see the that's maybe design. be you and companies the revenue uplift a customer, wouldn't in as would to

for. time at look will we'll well utilities planning point But take over I'm have that that as at. sure in other as don't think anything we So it a this something is I a time, at look we're take

be in lastly queue with angst Brian, some on any in bit I guess from Okay. ongoing how investigations is do potential of morning this a it's the book read-throughs the to knock-on of material. you I know, of investors. on OOCIC, coming sorry, kind of I effects PUCO causing got fines of There's there? language the That's the obviously, perfect. but kind to mentioning sort new the then, little me is for this, language range and outcomes And there? But ask investigations there going or not any other or super

are things so, the talked aware we we the was disclosure, we of outside think new of have about for traditionally was DPA. the disclosure. in Shar. talked raised There about being there beginning that that OOCIC at don't we of were that nothing question. X the One Thanks -- that I

component that investigation quarter, those against to obtained little the other nothing And the during indictments on to that. civil indictments bit found we like OOCIC-brought that DPA, have table and were regards to money us is put the Well, which unaware the do that in for householder We'd they the the had things against do and both the as to well with on. has and to Attorney we of may a of put company. as past suit a General activity,

we'd think to be it those and it a both don't on. to period we relates material, So put like will but move the on issues company as

I think saw that some as of company complemented the office, the when prior on the you he language his its with the place. that in viewed victim took Attorney indictments used General the a of cooperation offenses us and

So relationship, there. move we think like it's we to it period a and a from constructive on on put and just

Michael Your from next today Research. Sullivan is from Wolfe question coming

I low of you appreciate I on this in all year so kind to Maybe being and for hike so long? you you're if are upfront rate after out about able on Ohio just the how the Ohio. just a could -- file give keep detail But little to know maybe more request

Yes.

that taking during been in activity handled riders rates. the putting it of that lot a in and period So base interim is doing that have we're things

rates. base in So things but that paying for, always customers they weren't were

million we're the that the customer increase, gross some on and to things So less ROE, we there's those $XXX of customer at structures, expect cost less and in net impact we And anticipate refreshing increase will than that. terms be no X%. be rates or associated then looking with

bit. Michael, Yes, I'll little just expand a

alone think for been years. now over DCR, all XX years And earn of able you our you If those of few with to look sense got then And off over implementation, $XXX Mod I magnitude, in place investments been distribution to we've to that's ago Mod XX that in you Grid that at system the rider a on pretty about and rider, much million. give annually. Grid close is kicked our a to years the $XXX probably if million close it's rider

the been over able changed base through the though this investments increase moving we've to over on And in base XX-plus case years, riders. rates. rates So just lot is riders into years, those haven't even of returns our a those

That's helpful. super Okay.

respect Just here the you next and outcome month are follow-up the any how a impact V quick to in there on how filing? riders, approach that. ESP rate does have riders base With on the the in treated case

spent. prudently No, I mean, has this is on distribution that don't think Michael. been been reliability. It's so, capital I

I think it's the past. in subject been to audits

into at deployed other moving straightforward don't any that capital simply past jurisdictions, from And in in with that think you That's in rates. to an the moved you've rate have if rates. type I going riders proceeding. be you is really the issue So those look fairly base of base riders typically in

for sense. And last Jon. Okay. Makes me, one

for and potential just both on it. prospects what IG getting the for it -- there? back to metrics agencies Is the doable and like support Just and at have timing mid-BBB, you congrats sounds timing we maybe even are to thinking

this left of July a on but S&P positive And looking which Yes. prosecution expiration I in I'm be for will for the speak deferred agreement, of outlook. to the year. not us think the agencies, they're going

do hitting record going I need forecast, that's time that. think a some to and think to build take track I we also of to our

what plan looking And what they're our so I that's that's for is. and think

from from Next Jeremy JPMorgan. question is coming Tonet

Just base, guess, realign being wanted changing? I is of on progressing assigned of How bring new you on How against things the Just touch and to culture wondering organization, down see, received? further initiatives that's are that in decentralized the kind guess, I do how the decision-making any strategic how progressing? KPIs structure. thoughts kind to hires,

well. Jeremy. Thank progressing you question, for It's really that

the away. head John just we Toby coming making announced hitting of as in. Chief FE added impact right folks we've And and the an Wade Thomas Officer; the are Utilities; Operating Smith, So these ground as Combs running,

how If like to companies by planned we're we're that at the reporting is way that those company, EnergizeXXX, we're you according managing those in we it look units. now operating and it X things managing major organized segments have. major the business And

those the the plans have And benefit summarize business for $XX to are that of unit. units. the that our work capital So by customers billion over X spend years, major to up from that put business plans coming to all they

we And customer the that's our our just water. gives the without treading to way CapEx the transitioned making so time. through it's Jon fix, to that, customers we're I kind talked and and improve kind that a And rather that had make the capital of reliability that both one right? in in us break thought than talking remarks, it over we've the about in enables working repair It's the would. -- that ahead type experience strong of transaction from the terms we've sheet investments opportunity raises of balance about You can't gets

this everything unit it the The plans out and to strong. X 'XX, put 'XX So it together And have is years to we for well from should. have by we to ] seeing to happen. in money work, the as is plans [ The business you're balance the make going door. coming as sheet and working and come dollars is additional

working the we're envision it's should, it, it and the way running. we off So way and

a bit That's work that little plan? where following within that putting just see how and efficiency, time, initiatives over it. the there. go walk regards And solar overall with energy plan. maybe unfolding? through energy guess? wondering more energy the the storage, that EnergizeXXX CapEx down to to that infrastructure, EV breaks I for timeline clean Got how to see you up dollars helpful. And could between Could the And part you on Good different the

on is to Jeremy, that of energy wire side lot some the a transition. doing enable things it the we're So

PJM Window New to you've other component of the that. the One X million transmission putting to million able major wind And put seen over So We're offshore to $XXX was we're pieces $XXX Jersey work. X. where Open is work. the

well in rounding what West Virginia with significant initiatives, have components solar more XX-megawatt the would side a as those there in we're our to and addition on a than on billion see over $XX further So to XX-megawatt out commitment of doing way is the of billion that in to generation it wires X we of $X spend like the those state we commitments subscriptions. But to get on lot the being that really generation that's of business, rather is where component be. going bulk of and the

I'd just bit. would Yes, little on add Jeremy, a

the at West make of look just usage. New $XX of a the like consumption little less And billion, component that is need in energy we total you of as the the Virginia of the energy said, Brian state portfolio. with than hit it's on of XX% lot to the to a If investments state-required the additional in efficiency expected Jersey as build-out that well goals solar clean

sometime have now we're we this in speak. as through on that I think, efficiency year program CapEx later New And So the this working we should year. energy right later clarity, Jersey

the made distributed also, to DOE projects they or the management, One and grid piece program AMI, X grid and everything we've asked and on DOE by like that. smart is X we've energy We not that proceed. proposed Jeremy, of questions resilience, include for them we And final whether storage. gotten GRIP were applications that

projects And forward in positive on program so we're million to later hope summer. and about the of with $XXX results some GRIP that get worth moving this

part one, very BLM and one here. Signal I there, regarding last the has operations helpful. that it's a there been how Peak I over impacts Got certain time plan shut the some just a and it out at recognize But think shrinking whether just And time. to delays line down there's it. could, That's if of reports about

Just you there? could with share wondering any us thoughts

aware the No disruptions we're that in of. mine

plan for contributed the earnings quarter. in contribution we in about first have the of the They $X.XX fact, year. In $X.XX

So track with they're their on plan.

So...

Carly today Sachs. Your next question from Goldman coming is from Davenport

on the the volatility so good relative Pennsylvania that mechanism normalization recovery in and just impact rate Maybe done see like around pension you to what things OPEB case you've the volatility, going you've how and far, the forward? pension got the levels proposals

Well, get the deferred that balance be year balance the essentially, tracking positive expense way and you changes or deferring sheet. sheet would would forward, negative to successfully test volatility if tracking long pension we're to to in able because on on the be to from the point your a any mechanism, both goes that that

would pension mechanisms. significantly if achieve able some So reduced to the volatility you're those be tracking of

And lift-out of volatility in XX%. former that plan a a about manage our by do the But favorable X%, Now last us also we've we the the applied time half of unsuccessful for year. in of towards did either West apply year. plan we it's we at Ohio if that sure this about pension and year and is even is X% after reduces it mechanisms think We'll for pension were the mean in or Last year, lift-out, the the there. accordingly. I something other important Virginia, did to go that I to XX% we Maryland another year we out at New pricing, volatility we're and make about about not that this par, successful Pennsylvania where we because that competitive which year, looked this later some Jersey. for those lifted in liability we'll pension discount, a thing at continually point end business

we're So looking something at that right now.

always wrong, true-up. Carly, regulator is like the there's beauty of that the is tracking that never the mechanism

rates, And right more on and for asking in never always we're so numbers. than amount the what based we're because making the less it's or it's

to we and it others virtue be think in cases a our as that should well. So the has appealing regulators

then And sheet, balance latter there FET beyond are about maybe this helpful. the should of as those we factors any super part just That's push remaining the that the about think of proceeds Great. thinking it. Got year? could you receipt be that

they've asked and for for filed last already co-investor they've application accelerated So approval. with the

So in I'm that. any anticipating delay not

we year. So is the my that get expectation this later proceeds should

today Arcaro from question Stanley. is Morgan David Next from coming

back for or anything you Maybe might that bring was new any should case, to this would we Ohio into like that there I but mechanisms the new on watch it, sound come new rate capital filling? wondering, didn't that plan the It case? programs are with

David, enhancements. will of the the in case. of covers specifically really a I targeting no, distribution obviously, all traditional have base capital more mean, reliability most this the which companies, rate we in Ohio place, be DCR

we'll So have Grid well. the Mod program as

in proceeding. this new particular So programs no capital

I do a little settlement in-state peers noncontroversial we over the with which on $XXX that Akron. bought AMI house have allow we're that's be got to in just hope our XX-year Mod, able million be and which get not controversial. us that in will in old get. Grid in analog just It nice house. parity and implementation, I've to would on to AMI have my doing that to here a place, meter is a we technology

distribution The advance more ask we've work then later other asked I to the got is Grid able to back to come in automation program from at be in we able Mod And case to put to be be in where automation. component of Grid hope a demonstrate capital to that to that date further. the benefits Mod able the and and that customers II, distribution

see It Pennsylvania. Ohio load do sounds opportunity it. growth, then in it's in Got time growing whether And data of greater sense. be makes seeing Got centers, PJM? and it. I was you the like you transmission topic could over on wondering the That how back

you're that that what's rapidly transmission the see potentially Just upside region? move we Is data to CapEx centers as that seeing? opportunity growing

Yes.

Dave. It's I'll it's little So it's great -- question, lumpy. just this, a say a

things about, coming as we of are to unanticipated about, That Window the opportunity these that our plan. that don't like But have incremental seeing X, in PJM an right? like things we're come was be Open somewhat $XX So as opportunities billion they'll plan. they that

PJM build And we'll from of last to I they're through open that process so type to grid that seen load future processes we've enable see more as anticipate capacity the on out centers that year. represent. windows growth data play looking the

our and area, Northern Maryland, said that areas. we out I before, territories it's moving anticipate So Virginia, you've know into now -- branching Ohio into it's it Ohio. Pennsylvania other seen concentrated, and And service in in we Central like

And coming in quick timing of data your do customers, follow-up. of a these a interconnections connect grid see the coming? when these load trying you we the in just with a guess it. to and I when sense in In increase Got on to center are bigger that, the conversations could have

Yes.

equipment So that's year's the necessary sooner, getting service, supply wanting put in frequently about coming to things. they I'd they're that they into their all but have more the and in, like cooling generation say things Do those chain? timeframe, need, the the it's they all equipment need aggressive the that

think getting see previously. And But aggressive what I increasingly wanting sooner so about we coming. quicker than time have they had they're it and service to

question Gregg next is Orrill Your from today coming from UBS.

V? Or of follow-up new the to along another into around impact it how base the you to does how sort it Is that that And of your timeline rate and recovery getting Just tied regarding ESP will the the -- guidance? case? rolled DCR that? see be getting going be

Yes.

the we're the fully the in there's the some be discussion filing is should the in ESP DCR basis. years recovering approved V, and base or that been accounts So that on the V our about been and audited fully and accounts recovered appropriate staff's in And annual deemed rates. or anticipation that The our they've have been XX last recovered responses. for ESP an in so and either

base sort in in venues. case, of the either those are believe XX or to of the for be one to they're continue been the and and recovered So all last in approved whether what's invested that. years will But we're -- accounts ESP fully V that rate in indifferent

from question Mizuho. coming is next from Crowdell Anthony Your

quick One announcement agreement, in June notice issue office hopefully or X out? it on there prosecution the Just deferred is ones. expires? a be an a Or with will there date where an

Anthony, it's Jon.

late that's not It's I think June. July.

So it's late July.

able that the we've to prior like if do need we as than well. to, it's that, date. will. to Anthony, file until XXnd. meaning sooner to think not And could everything that, I we allow XXth be we or wait done we'd If us absolute terminal a the to make filing to like just

and potential the potential suit up. out that loss agreement that last take you Shar that up suit earlier? had mentioned prosecution of Are Shar's I earlier, to -- deferred items with that clear If those X brought question

DPA, if securities talked front then as of which There's we the we and in us Ohio and about audit are those what the there's asked Commission, case currently There's there cases earlier. the No. behind the proceed could they hopefully well. get

that forward interest there existing sub-investment because to -- significant savings any move lower? rates And will lastly, debt then Great. those trigger were you a grade, to higher maybe that? And was going grade? -- that triggered maybe rate of the there And is there interest investment was will is because any just

Yes.

not we rate with were Moody's we meaningful sub-investment-grade. interest upgrade, had So interest step-up the an because savings, but

eliminated, been with later it start effective year. payment the upgrade, with next interest that's the although will Now this

an credit But think I pricing annual we then it's got about better nonetheless, And facility basis, XX the by think meaningful. than on also that's some I I points. $XX revolving mean, million. less basis on

help, all So more grand but things in the we'd like be scheme I that to the one material as on of there's the I forgot get well. not investigation settled to important list. to is SEC There's that may mean, put us. Anthony, those it they things,

Paul Patterson is question from Glenrock today from Next coming Associates.

that? is on if I a maybe think And something being think Just not for EPS that shut a maybe impact should a that? There's is it about there $X.XX there? negative potential Signal happens, Or in to question we or Peak. might about there being forced just how about like been down have thoughts Any follow-up, it discussion XXXX. a Jeremy's

question. for Paul, so Well, thanks the

of very As had was contribution Signal 'XX we a and to in outlined this going level really de Peak plan, $X.XX minimis the year, beginning beyond. we've them of earnings kind in but

grand not it we're where to losses, shut of scheme to ever kind incurring plan just of the were in the down. breakeven to I it proposition but a to would So think if significant have things. And go don't

are is that the And to having through road, do Or has procedural for [indiscernible] any we Grid respect Mod go there down to then you the Awesome. I of that? examiners, just pretty just we go going to the settlement, outlined to potential think? are going guess, much Okay. been with hearing in additional on what, parties sign

is I going there's it. that either have we the down expecting to Paul. June to settlement. And are all hearing on it. XX that finish round the when to close like customers X/X in-state really peers think I just to on. there's have nothing go or of, the XXX% about on to -- just signed we're of to out the intervenors trying think deploy a at the we're road, we're And remaining It's majority AMI the It's -- trying we're other controversial and of our

seen being of or in terms and as coming and Great. substantial stuff. about been lot deployed I'm at a cost issues grid-enhancing the And to about have then thoughts you might opposed policy with about up how be grid-enhancing are and has wondering a do more get this all trying technologies FirstEnergy any how timing be and build-out think that that just they in industry-wide? Okay. technologies, been do circles to that's the topic to deployed you

Yes.

think, are storage, GRIP, the there technologies, I our and So resilient, grid to grid grid-enhancing DERMS like. are smart responses the

looking that the looking some those a make take looking so that those customers. those we're that the Energy to. of advantage of put we're our and with of money share and of And these the Energy, benefit investment of That's initiatives that our investment pilots of our about to And help get of start dollars looking benefit we're of looking fair they're take $XXX to and for reality, to jump customers. to is Department the million Department work to for

get share to being to of work dollars happening. So those put it's are The and dollars. our we're trying

of you the -- be widespread pilots Or have a know you what you the expect But as you any with -- the -- I being I apologize. there potential what so I just -- don't might you do I see these deployed? associated kind the or sense adoption big near-term? those do it's guess this mean, threat and see DOE beyond funding do -- Okay. opportunity any in Is do the you? how -- expect any and question, of technologies

has with disruptive our power -- I it's take seen And a it's These and for carbon in in sequestration, on country you've industry, it other of a crawl-walk-run level, a Paul, like at to done a plant. a think industry. don't not places best the deal as approach. commercial coal-fired for to think us, that in see do right, but don't as been plant technologies, capture things big being it this I strategically new scale I

economic So EPA if to lot plants, you rule that retire of which the plants or I that were I go just look retirement rules, there. for cause would at effect, to the because new a think of it think either isn't into the would technology call

on pilot things industry. don't technologies we're I of think, of pilot strategically basis, disrupting done see that Some the any proposing basis. are best a point But at our these on a this doing I

Angie from coming Next Storozynski question Seaport is from Global.

So That are but congestion renewable that I'm but power grid seem it it wondering well-functioning you right power with this that know just utilities in are major that's upgrades be I me the competitive they again, that, understand change a growth I just something XX/X additions seems think a was the de reliant maybe an building or you be issues. And see those going there's on for forward. manage transmission to I foreseeable centers, future. I And mean load how with reliability trying well, might to needed intermittent wondering, a the a but especially utilities that, see to reasons. granted year doesn't that on those market, so resources. not all minimis generation hear assume of answer, to as data like forced these we're I'm that Is wires to PJM, starting X, at again, next from assets, and least. other might

regulators We're more which really more that of having it. discussions That's more kind certainly, more people Angie. you we're about and with identified, companies question, adequacy. that around it's issue good and and calling something resource And other are the talking a

wire a system. can't You have just robust

the wires. commodity put have on a to have You to

to relative stances different of sort that. have states X our so And

altogether, the put is that utilities commodity enough to about in will there limited integrated own on that Virginia legislative Maryland, But resource of in of face would on to to West retirements the -- as there's coal state. New Jersey the an in issue and opportunity the growth plan we're a for very In it wires the well. and region increasingly load us, a unit an facing facing be changes. For talked is, we we're basis. require traditional Ohio, Pennsylvania, there's for is course, -- generation And

So there's going to need it. to be a to solution

were of generation come states us, on basis. ever merchant think a states, to wires. a and regulated basis us mostly a states that's point for don't those right now. ask be don't consider. For in something think interested on to a think to us if we'd were near any But build state long-term, our I are of owning But that in I we'd in X I our that

rates. then interest on And topics changing

perspective, rates financing interest half we they if current to were to So counting were we're of growth especially and the that persist happen. back and year. But if some the this starting on I -- that still the hear just environment tailwinds of utilities some from might from rate wondering year? see in an your this interest from plans your beyond do EPS plans you how mean

planned the years. period it had new the we Yes, the over And X coupon debt Angie, X.XX%. for planning year, this so in deals for elevated then plan our was through rate all

an so on. is we'll something keep it And that eye

on If at you look that at blended the basis, we've year, X right deals it's it's this bond a done X.XX%.

interest good keep I an we'll on think eye we just So and have that, feel about to rates.

session. end question-and-answer conclude and does reached teleconference the gentlemen, that We webcast. of ladies today's And our

time, a today. may for have participation We you day. and your at thank You line your wonderful this disconnect