FE - Earnings call transcript Q3 2021

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Operator

Greetings, and welcome to the FirstEnergy Corp.

Third Quarter 2021 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Irene Prezelj, Vice President, Investor Relations for FirstEnergy Corp. you. Thank Ms. begin. may you Prezelj,

Irene Prezelj

are morning, and Today, revenues, quarter call. our These materially our performance, website link are be expectations subject Factors to welcome will make to risks statements matters. the found we that other regarding prospects differ Investors actual third on filings. various current strategies, and earnings and Good based forward-looking under by Information indicated SEC earnings, section results cause uncertainties. those in these our the on and Earnings and to of could from statements can statements

section also in non-GAAP presentation GAAP Senior that will strategic begin document of presentations Jon will highlights session. the the Q&A quarter Strah, our detailed Investors call Officer; President, measures. and the Strategy. and discussion available from for other today's Vice Taylor, Reconciliations and Chief Steve the and other and with financial We between and discuss our the certain Chief Officer, supports information Several on Executive measures, We'll found President non-GAAP be our financial about be today's financial website. executives can Financial

the Steve. over I'll call Now turn to

Steven Strah

quarter, for talk on Irene. of per everyone. you, morning, quarter GAAP another excited third fronts. XXXX Yesterday, us. different share. to earnings many $X.XX I'm Thanks Good had We strong you Thank about progress and to joining our we reported

above of the Our operating guidance end is $X.XX top which were earnings share, per range. our

strengthen resolve PUCO. of a important to broad Ohio, customer-focused and our we to proud approach, solid settlement engaged issues I'm to before great performance our and several results. of our of Our operational of range resolve and financial discussions of the we're cases collaborative pending mix drive with In to in continue all take discipline continue strategies, a positive parties load, weather-adjusted progress aspects legacy Furthermore, company.

meetings we're continue good making and Our productive, progress. to be

training And DCR The major audits. DMR taken XX. The the is on audit, compliance report on areas; and and and across of November a accountability Conduct due report report. engagement audit integrity was publishing of training corporate Conduct DCR to we've filed environment; XX new corporate of December our quarter now new Charter last organization. Program making awareness also of leadership, September noncompliance. significant roles Code call, are additional and ethics, planned audit expanded Code Ohio include: findings with senior Ethics in for employees work first We on focused separation multiple and separation, Compliance XXXX; the is the instill progress individuals no DMR on control by a through These internal instructor-led our in and the of our our in XX. new policies & steps with and our continue Since business for due concepts earnings for training program in everyone strengthen culture which we all leadership our on to showed corporate

functions. platform risk on of to internal The requirements and of and ethics audit and respond regulatory compliance case the policies, management new manage enhance our risks, compliance, started we corporate Additionally, risk assess and to a will cycle have and life controls streamline integrated across with and concerns, management develop us the tool report help new compliance to ethics our organization.

and a members, ethics and our establishing board our effective building additional months, Board XX decisively, acted independent making management management last change the over discussed, quickly controls, culture changes best-in-class structure, in our adding compliance and program. and reinforcing team we've As

controls relentless at with associated weakness the of in areas material Our tone remediation top. focus these the resulted internal in our in

driving important center do. of and compliance keeping at integrity an is While this everything we cultural and we these continue the step, changes

to our Camilo and rebuilding enhance our continue a and experience, be implementing to in to Serna announced our FirstEnergy experience future. of federal depth Vice smarter employees can build Affairs. to hire and strategies. a that on company the key ensure grid and will join regulatory November leadership and day brings as every cleaner of working electric Camilo as we and developing Regulatory Rates mission. great proud new X are His another our trust confidence transition Yesterday, state President our team. We we of support be energy stakeholder invaluable will and a FirstEnergy

achieve to We goals. these continue taking steps

to submitted while environment For farms a and that BPU transmission example, impact state's energy communities. for power offshore and from proposal connect the to JCP&L the the investments grid, minimizing New generated PJM last would the the month, wind Jersey clean on

they or to capital comply limitation continue for begin discussing to plans intend XXXX. an to we Later decision expect the recognize clean at intend fossil to this New this for in same beyond Jersey In to clean guideline, environmental second time, driven energy expenditures our plants proposal, to West a we by ensure the supports plan, effluent timely plants operate half and for Plan our X Master the of investments we rules the We operate Virginia, that can ELG in the Energy state. XXXX. on calls our our file additional that a energy benefit year, with with the regulated customers transition. which stakeholders At of X responsibility the

plan a file solar this year, that scale generation. the utility Commission megawatts to transition, XX Public part of we As later West Service of for with Virginia

economy other recent building a a proposals future climate-resilient connection stakeholders. In strategy, prosperous our ATSI and support transition the regulatory for that It's company. parties future. wind needs, components an the the to FERC associated project our and system for more from a partial climate XXXX be issues core recovery in subsidiary and transmission for will time our that energy Our that of ATSI's our settlement exciting solar will transmission meets sustainable PJM our ATSI month, activity, this of to changing a and with powers the legacy customers' a carbon-neutral to MISO reached address proceeding to MISO move costs with allocated in provide enables

a our strong our incorporating key to distribution building with electric In infrastructure distribution pleased And and in continue network, technologically long-term we're embracing through will emerging modernize pipeline months and renewables. other have and We performance our for role smart our a technologies business, technologies. advanced platform. we robust build-out to transmission battery We're the vehicles, the industry play a XXXX. storage first of X plan

to we midpoint over earnings results. $X.XX X% and close XXXX we share. share out earnings increase of our the represents to narrowing raising As $X.XX to per a from $X.XX year, The operating guidance per range operating $X.XX this are

to that since I leadership on stepped circumstances. one to year Jon a thank hard employees into And acknowledging year I role and their challenging it's been under very Finally, I my can't fronts. for we and work pass our a the sobering call over unwavering been publicly the the a forward want your many without Together, dedication this to our resilience entire you Thank impressed be attention I industry-leading team. grit the company. building sustainable morning. customers. of that creating momentum, by continue thinking and positive, and for are to is FirstEnergy new It's

Jon a third results and provide quarter Now a of financial update. will review

Jon Taylor

and we share for operating good announced and per GAAP third XXXX of per $X.XX share. Steve, of the earnings quarter Yesterday, morning, of $X.XX earnings Thanks, everyone.

operating and absence total JCP&L XXXX offset lower our base few end increased share which to and from our rates quarter year range. on expenses. capital and exceeded discussed Consistent as well trends These basis last deliveries as we've quarters, the XXXX. reflect In revenues distribution the to the our Ohio $X.XX business, by revenue, mentioned, higher rate both distribution over lost from for actual of lower investment last of weather-adjusted the distribution quarter our guidance weather-related case partially as an compared results distribution of the top new totaled with Steve decoupling programs, this of As third compared third the usage. per were

quarter this summer, hotter the of XXXX usage was our as of third third weather in continue sales was pre-pandemic of to quarter were Weather-adjusted customers from it nearly compared XXXX the levels our Comparing residential third weather-adjusted our XXXX. essentially XXXX, results of than this quarter flat in the third to cooler was quarter. normal higher for to While many in residential the work X% of quarter the home. region

industrial the transmission business, the MAIT right of sectors In steel, to and our most our up nearly was and before to are we to starting in to levels see continue the in investments they Industrial industrial higher led saw of classes part benefits compared we direction. increased yet ATSI not Weather-adjusted load the our commercial transmission quarter chemical regulated quarter, commercial Future from third load the while XXXX. While recovered X% subsidiaries territory deliveries fabricated this as Energizing trend pandemic, and have by the X% increased of program. at our in metal. service

earlier this a However, results rate interest benefit O&M at from year prior reflect offset expenses. segment, this and debt and Corporate by was issuance And year true-up. the formula lower higher in the FET

first For was transmission increase months in per revenues weather-related in usage per and lost $X.XX driven of our X XXXX, systems, expenses. the to first $X.XX The more in items our were distribution These and the first $X.XX by operating than the investments higher share XXXX. distribution and recognized share X decoupling compared months of ongoing lower earnings offset months XXXX. X of of the

which increase operations of and million of in an cash have last discipline from year. strong $XXX results resulted Our versus financial adjusted billion, year-to-date $X.X represents

our is offsets credit extensions. end this strategic few from the model credit of revolving of we are Earlier sublimits until in for the the of we approximately of million a facilities which XXXX, the $X.X cash financial million other EPA X-facility and related detailed are operations in credit $XXX fourth expect quarter, year. available of fulfilling The a costs, settlement. which includes the facilities the expect approximately before and the with The for we X-year restructured and X of and provide year, While separate billion complete billion their from commitment XXXX $XXX action to this October commitments X, $X.X now highlights. facilities successfully month, largest our with associated aggregate investigation to

a that of XX are S&P We pleased to companies distribution restructuring facilities, issued the transmission following upgrade also and companies. notch the the one X these

were range. process, to new And to targeting the set to XX% XX%, and which ratings XX%. glad We're Moody's communicated sell asset a solidly ample of we minority we contemplating on ATSI, credit we where targets. strong that the to as We number recent MAIT investment-grade are is will of for sheet remain capital. previously supportive company we company, equity to that TrAILCo. are interest improving cushion to balance a to a X calls, with at we glide plan sale threshold to Currently, our our minority are But consider return can't rating the any a to target very a path our overall interest provide engaged raising at we're indications in profile On the XX% Transmission, that to and we owns committed on in alternatives in given we've FirstEnergy mid-teens. to we're be the in debt FFO company. which of we The companies process parent While very details. expect and communicated the and preliminary firm these agencies, comment the further holding financial transmission all raise

electric and outlook, strategic continue to incremental investments, capital base case supports in all our and rate and planned manner cleaner longer-term growth rate transition rate options equity CapEx includes the to evaluate traditional a which that to an raise to We activity, support grid. efficient formula

are our optimistic longer-term weeks. plan a overall outlook couple be to financing We position of the our and next within we'll share that in

our In and of appendix in fact, noticed expanded highlights you information we've may strategic document. financial that the the have

that outcome once of asset recognize status we more include proposed be from relevant the that Given can book current the the transaction. sale, will the fact we

with growth fourth capital expect During forecasts, target, and you we FFO-to-debt our rate and base guidance earnings provide and detailed along with the rates. runway a the targeted XXXX longer-term of capital quarter, to plan,

questions. As I'll happy your and always, be your thank you for time interest to FirstEnergy. take in your

Operator

[Operator Instructions].

question the line from JPMorgan. Tonet first Jeremy Our of with comes

Jeremy Tonet

and into we have that results wanted come that sustainable be a raise to you weather these just other just items have How impacts. helped thinking items plan this future? kind to for trying year And get guidance? talk current ahead about of or about of here. should operations some much should think Or in been of might as the I we about these sense how the

Steven Strah

as we the in we but not as new the that, impacts U.S. the of ongoing good that's an the year, think our as plan, worldwide, to of still adjusting very back called we I only will on get pandemic. see increased we're residential be business a question. all And U.S. see over the with And the impact loads the normal regard to trend and to that whatever

of process see we normal. on based back So work as residential of the of as load we our kind to getting promising earnings, impact that on through the

Our they're to loads, we figure commercial not pre-pandemic to and they'll and And right commercial levels. slowly. But basically industrial normal back we're see get or industrial trying to out demand-based. whether coming now,

assumptions we're see going the getting how at over just pandemic that up work So Delta we're through the have on. the that's the kind And to end, ongoing time. we of to and to end getting variant, everybody back working

Jeremy Tonet

That's it. then maybe And into Ohio more helpful. a diving bit here. Got little

to plays of are able your any looking in the more if guess kind at could you a they near in update on Just give future discussions. confidence wondering stage? settlement And provide being I long-term kind color How what of this into Ohio here? the

Steven Strah

for too. thanks that question, Well,

about can, goal want prospects us. in But to which and uncertainty Ohio, very those we ensure by team start productive, to promote that commenting now. and of the the that's so very a The though keep And In remove, and on are and for And those management to by a get new right in too integrity some made achieving is concerns a set the encouraged wanted far terms think in that to where management to want tone, to the together far. we of progress thus I tone and we investor of It's our is a stability and is prospects resonating. we're ahead that the get as to ongoing settlement. of the way. continue team continue process it. collaborative derisk Ohio to our terms that's we been don't approach. effort constructive feel I I predictability, as And we've different in going Ohio myself we're for good

to So encouraged. updated I'm you And it. keep again, keep on we're working of progress. terms our We'll going in once

Operator

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

Steven Fleishman

I Yes. the kind question. to not clarify you're Ohio long-term process on last the is I until wanted process and same the topic that going of -- to 'XX that guess give just is guidance settlement of talk rate the resolved?

Jon Taylor

get going obviously. Yes, That's We with to Steve. clarity try Ohio. we're be around This preference, where want Jon. to is our to

working So as resolution as we to on to -- we a like this Steve can said, we're hard issue. get

productive, As about, nature we the we're meetings the not talked collaborative of yet. the and discussions has but been there very

Steven Fleishman

the get issue Okay. it, it on asset like soon And sounds sale you identified. then relatively of something we'll the on

that equity still ways Is to You or other Or raise focused process? capital. sale things it of continue all is also you're on really considering? other efficient look it or did there for equity you mention that -- mainly asset to is this asset sales kind

Jon Taylor

and work ensure we position we're not very financial strategic think, are seeing. strong. The would with I what supportive and to how goals. to for We're than indications going you important flexibility as valuations well. I continue we messaging that happy financial the us, we've it's the before. that CapEx. support just Steve, interest very such and going incremental we're So talked about done, it's have than rate But do our we The best forward of on some better to And on FET process preliminary the think formula to is company very have through process. CapEx, tell very that for is

that. And to next in an different in alternatives weeks few is continue be give to the sense accomplish you we through position update this. a my to So on sometime we'll think

Steven Fleishman

that's FET. And That on great. sounds great

to rough Just to metric the take new question get targets, there Is to FFO would the sheet of it balance other on one debt. long XX% that a sense how level? of kind

Jon Taylor

end to there you few first we going a But think get my maybe a of to be need be I timing. 'XX. could and we'll we're is things, through I provide where and 'XX, think Ohio we by But able So be better through need then the work to on to we there. sense outlook part of

Operator

Our comes from of Bank next Julien America. with of line Dumoulin-Smith the question

Julien Dumoulin-Smith

Do will the minority from FET sale earlier, Well the clarify done updates. 'XX of the discussed 'XX? satisfy to multiples through, you previously on indicative you valuations say, equity prior are the that all calls? just And that needs the from of still to comparable expect PE earnings on

Jon Taylor

better. and Yes. that To question, answer comparable

at. Steve, I a a is should work the we're to so there's we're of what told So looking go-forward just of still that the there. as sense in table terms everything in hopefully of plan. I still you middle give the And lot on do the of But think process,

so few be And the how through to think in company our said, like best we weeks. think we'll continue And I to going communicate able I position to plan forward. next the

Julien Dumoulin-Smith

kind to Yes. again, No. last riffing presume, questions EPS year? is too 'XX would just with both base but growth I want set as long-term to an characterized Is If yes, And of EPS of aspiration, I as off the to with hear base that. industry guidance, you. the with CAGR respect fair And that thereafter? objective still consistent you can, the a a your here. year I as average. prospective previously a clarify to Ohio your critically, target I and prior DPA, the outlook set generally the

Jon Taylor

Yes.

cash and our growth be We'll capital give we'll to earnings give rates. So for 'XX high-level rate I you give a think plan 'XX targeted you horizon. capital flow, you then We'll planning guidance. position in base and 'XX

is the And at answer our you this think X%. the be down I we that to few of backed even year-over-year you your kind on to at it's this able earnings year. I some give Recall if look capital we'll question year, second mean weeks. next yes. So just in look

So sense we'll utility have is growth. my normal

Julien Dumoulin-Smith

just the auto items, on Excellent. point proceedings I are great. of to if gating just clarify, mean to In point That's you this instance. And audit the data a finer for mid-December then Ohio, a settlement? sorry, for some you here. report, pointed will,

Steven Strah

those spending you'll and open, very say, each very remarks, Julien, right there. political And now. the prepared audits separate the on separation, I X would and charitable remarks to are more rider very I now other the responsive our own that's mentioned look start rider would hard of my I discussions have way having audits settlement you talked DCR, of in the and are We're that's Yes. about in right prepared settlement our look from if we corporate the quadrennial ongoing. that think the at we're review issue, it the that we of one lines and been DMR, When and their working at on work going that to items. along recall,

we're So as as all we're regulators other working And being we proceedings Ohio. path again, and of kind we in can once kind of walk and parties open together. as the that our transparent interested with

Operator

the Guggenheim next comes Shar of from line with question Partners. Our Pourreza

Shahriar Pourreza

about also to basis, more or the I I entail curious any Ohio. about on like guys maybe know future right? comments a the not. on how in GRC some you of different about think mechanisms, it's predictability. obviously, and to you I just and think are construct PBRs, a had obviously prospective just thinking to understand, Steve, rate But if discussions, -- want sensitive, about maybe concerns discussions removing how

Steven Strah

question. good very a that's think I

this listening process. we And as approach entire will. a have starting I with if really a you company started is tour, our think

of into And lessons getting missing And that to future. we're our endeavors. feedback some listening. trying not terms the past we're we're So we're our in from anything apply

have we that. jurisdictions, ways extent regulators to So different other at or future, to other open the interested and parties are to the certainly Ohio new look or

remain the Columbus So to far of the I do entire explored and the table right encouraged of center I'm common in presently the to in territory again, think us, that once Ohio, And parties customer by we're too to that. But for the attempting open that. And I we've keeping the to meeting now. door that that good. at common been And kind we're around equation. want to encouraged what going don't we've open for that's all are

So differently just being once openness we to think in what had again, than it's have the able past. and around

Shahriar Pourreza

And balance Got a lot. then it. sounds just improving your sheet it like are and -- Terrific. metrics

I stake of deal optimize So that the may how assets sale, of about core? than recent versus sell is light may come the in to to a redeploying and a announcing do think other further a utility peer heavy value incremental the of strategically see Jon, further you be sort which renewables, several to you especially state. in simplify obviously their the able plans do those you to This what's relatively TransCo to absolutely in right, own burning guess, coal especially fruition states, sell as some decarbonization coal kind financing? have

Steven Strah

we're I'll Well, our of first over that. I'll our and in when the end, at take to it Jon. turn evaluating got Shar, front the look current if of opportunity, pieces you And Yes. we we've cut us the options. mind, all at don't at But all

you think T&D strong of going of very anything regulated prepared to of strategy table. we believe we've continue good have us expressed off just pure-play though And this very business right without add work we plan company kind to a do end, shared, we're and propel being we what terms And a very in as footprint, I there. in and what is feel right we're as know not don't place strong presently about of our options where our now. that very forward to strong that a Jon terms at a And have very has if environment. we good Jon, publicly. plan But front we unnecessarily and in In taking feel the strategic the can sacrificing a I anything now. we what are right the remarks

Jon Taylor

started we raise manner our the efficient making we I thought say, as shareholders. process equity assets thought all in sure Shar, before could one, an with we just for of Yes. would that about we about, our FET, different

going a business to as on is align high-quality that where just FET we meets we that today, And definitely It that mix those are supportive for firms. be the capital is to where think top-notch very check of can all plan future box. a It's think earnings. will investors the business type issues. are efficient accretive going important and are from in be could attract strategy criteria very transmission I But to sophisticated And of quality investors us. we supportive FET The I of business very raise. governance and opportunities. they're

Operator

Our next question Angie with comes of from the Seaport. line Storozynski

Agnie Storozynski

one Just follow-up on transmission the business.

earnings you this the bit year light the But hear range, if me one, business I power into earnings selling that we what could any allowed adder that is -- in some of a likely sale this these going expected. than in true-up, updated a in just there in lower condition given case happens Also, stake to of that sense assets behind away? the more the the assigned give cost is a for RTO range. true-up. So bit And explanation but earnings is business, that ROE a you're -- there reduction

Jon Taylor

Yes.

of Angie, those. try to take So I'll both

the program year-over-year, $X.XX September. business, investment added our So earnings just in in about through transmission has

prior to of deferred frame. earlier following true issuance think, And time I'll March and of the back $X.XX formula rate We was that at taxes with some call, associated year up rate true-ups debt I this our typically from what a expense with use and interest revolver the like. forward-looking those, as then we is well that true-ups, in actuals as rate. And that those we Now are year. had -- the a year accounting the additional offset projected lot long-term where base, borrowings really FET in, of

So those drivers. are primary your

early very And it respect to to program. be company into you. I us some second probably we that's all a But that your obviously in optimistic at details we point question, We to have in continue the that grow the to Energizing provide our that, we'll of don't and for to opportunity this too With tell once future. get to in think Future clarity time. provides of lot about this want

Steven Strah

Yes.

right sees. It's demonstrate very and reliability just to us add been more I customer opportunity. for value around on able for And in the for company than that as important investment of we we've as in is that's it's obviously transmission terms continued think, it that's invest would Jon, has I a to our target. as improve, that us an customers. that the

to keep that we in equation. play terms firmly the in So try of

Agnie Storozynski

Okay.

follow-up. one Just

I you -- announcement much right the an asset sales we pretty -- So I mean, we expected think on all had now.

to the future power -- is to you need see FET on distribution Ohio? based So there how of a big stake in you sell earnings are waiting

Jon Taylor

the make No. No, we're year, Angie. to this and that process. significant not following right and mean, it an and launched We're just place, earlier in decision to a we're the I takes that our just we sure communicate have structure make time. process we it working mean, on right on going something the earnings to process. we just call. I it want some do We just that

Agnie Storozynski

just one. And last one Okay.

the the this disclosures XX% you dividend -- the So target? I on on the appreciate given ability comment your about earnings disclosures or grow growth. Can to FFO-to-debt somewhat

Steven Strah

understand our we how its know important Yes. Angie, really of the within it dividend, placement plan. approach And the Well, importance we certainly business remains is. our Currently, unchanged.

payout range XX% Our is to XX%.

were of with be want range now, of it a take yield. X% that Board to don't ahead I we to of XX% obviously, you Directors. within to our get a right a potential have If gauge And

just the and in confident now. investment-grade And And we're routine us transmission. put a with for to Ohio it's reiterate, a pieces I'm of ratio get good sale again we'll of right the XX% The working And along in working job that has say, just towards stake sheet I Board that towards. clarity talking that our basis. once done we're level Jon this to ongoing to a to front key potential Our and quest very on would are that us. about FFO-to-debt of a some seeking, we get here, reviews that beyond minority to are balance in concerns

speak, as move to so and chop, to Board right a with our And dividend wood some now. we're ongoing is obviously our ahead. process got we we've So discussion working

Operator

line question next ISI. of the Evercore from Our comes Chopra with Durgesh

Durgesh Chopra

you to guidance how going and projections. to Can are forward-looking Jon, worth go clarify of hate to just us? the I you give back XXXX CapEx many guidance years'

Jon Taylor

Yes.

you think CapEx. on X- I to probably give X-year look we'll a

something that So 'XX probably 'XX, what like is thinking. we're to

Durgesh Chopra

financing in previously think of then Okay. your of sort that $XXX of needs And you your cadence Great. about a as a year. terms needs, just million good Is about sort equity through talked we XXXX?

Jon Taylor

lieu looking those we've in Well, at issuances. about so I think equity of alternatives talked

why And at at alternatives. so minority other considering and we've looking the been interest sale FET that's

you we'll give So I on able once we're lieu of few we now what issuances look think some clarity things. 'XX a But and I those the is get in longer-term considering 'XX. be in to think

Durgesh Chopra

this. was sure. of I trying way I'm $XXX I'm another so what trying Sure, sale base of reached? I trying how was So proceeds okay, much needs ask a year. to where was going to just see you I I -- the -- plan. sort the to with of And to peg million see trying sort what's are in this amount the to is, to just the it the That's see Right. guess dollar question that from

Jon Taylor

Yes.

right So give I those I can details if you all don't know now.

some obviously, to I get we articulate think our our to need we want investors And wait plan able to to get probably to XX%. be we Ohio. until to in clarity

ensuring through, specifically rate think we CapEx. to for financial additional want that also flexibility formula have We CapEx,

mix plan, and we a we'll as of including financing that about you the overall longer-term plan. all provide outlook, our put our think So into

Operator

Sachs. of line next Goldman comes Our question Michael the with from Lapides

Michael Lapides

other. have each Congrats on X unrelated actually I couple little good to a months. a

all, of New Jersey. First

deploy of it, there, in New under-earning to Like years transmission to so, capital think greatest of question improve hundred get spend think Question X system? outside related opportunities, next what the you call across where do more somewhere the the offshore X What in or type authorized? to of basis opportunity about us type opportunities? Jersey projects? to talk couple about is winds term. that, of longer you're points. by That's efforts with B, Can your shows you data more you to When capital closer back Your a A.

Steven Strah

distribution Michael, as look, in plan question. half to continue is in we're not great I believe I'll Yes. of it, Steve. only while improve that business terms call very I And before a we is the of number one. customer of affordable good investments, company the with have and rates this our reliability, that transmission a us take spot fortifying would kind that to classic maintaining very second

moving ahead. that see I So

opportunity. to wind, clarity U.S. to great transition offshore seek that ahead energy the opportunities in up clean that's certainly to we going provide about environment going end to And I us I move on on, that the T&D invest Beyond to greater excited we're receiving continue believe, continue the both is very embrace the and renewables. think as and

system, each also taking but the on for for affordable not coming smart one which to as emerging Beyond other time. And only more technologies going over they are opportunities think we're such that customers, in T&D that, us meter platform transmission those exist and our much exist it's of towards renewables prepare are jurisdictions. that in I a items,

I in that So value of the them, before. the that mind. -- enrich talked in can we in affordability about very we customer keep equation very it's center It's but important keep the providing which this we've we're think we

we So I I'll the we to we in pursue. JCP&L, over great into Relative individual that portion think realm. over details to But get a once about very initiatives can that Jon. question that time could of think I again, turn more have

Jon Taylor

Michael. Yes,

year. on for of New X.X% year, the recall, we base you XXXX. probably implemented case a in distribution equity return Jersey X/X started at this So the if around We

And months distribution the X.X% my the full as And the of case. in that sense increase continue so we roll XX to gone ROE. terms on will X.X% is base of we've from to

below always a the just to there think of your return little fourth I bit that allowed you'll closer in be regulatory on equity lag, but quarter. be should we because

Michael Lapides

DISC-related remind Got the revenue with then And be, of currently the getting though small follow-up. term? issues one are Pennsylvania, there And it. any they'd the you in in you increases, me, near benefiting DISC? kind from Can are

Jon Taylor

Power, turned Yes. some X is an and for the companies, on. the issue through DISC bit of DISC revenue little exception on, the revenue turned we're is other recovery. a working there Penn cost with of But with

Michael Lapides

the increases though they're You're getting big not DISC even to really tied rate annual numbers?

Jon Taylor

correct. Correct,

Operator

[Operator Instructions].

Weisel of with next Andrew question the Scotiabank. comes line from Our

Andrew Weisel

questions I have two have CapEx. questions. I two about transmission the

do this And know constraints. DOJ we in in forward time, the longer impact business, of investigation the you year ownership? April. unrelated Or sheet should opportunity think more with move the that's the well the that minority would question you it uncertainty balance referenced And the one earlier interest to as if trimmed to the sale at do term? second Or of is, you the about then First some plans see I you CapEx permanent? as as those think you Do those reverse cuts? is,

Steven Strah

spot of sweet to improvement. words, that that. In I investment within my And present terms our at then reliability stay is, want just you think maintain continue make And you very that. them in the in terms slightly if ensuring terms in significant the done last that to our of our can too managing a increase we've you'll is has XX-month of we again, look, continued in sure uncertainty I'll see about up tense don't once Andrew, I we in seeing are good customers what also just opportunities, while ramp in we year, period. flexibility But incrementally to to the within I prudent Yes, us the we and of And go faced way it future give will. transmission company that. financial like curtailed other I think believe that burdening cut that job we far tense, this cost. think we've done

nicely. stake that's transmission factor think future. sheet. a really minority And once to executed, into going will think So a strengthen for think within greater sale When the some provide definitive I I towards our align starting I of we working market, nicely. again consideration work think pieces, more of these of that these will in only in company business pieces important I can't And help some potential to our again, you invest settlement all moving Not out of to, while fortify level opportunity Ohio be minority once in forward the that I all that's type us. business, think strengthen platform, uncertainty relieve balance our the today, the if and the very to only I think business stake for they're are our ahead, starting

sure Our continue that guardrail, make main so concern do to our just to company is we that between the keep -- we speak. is to

public where concerned continue our keep work and to right earlier, to be but only with continue about We have said though, We've I our stakeholders. even not we ensure got that for to the employees to to at all we're we're reliability, execute. do. And very safe, that have as good financially performing now, feel shareholders, we

Operator

this to back Strah At session. time, I'd of over to for comments. closing end the reached Mr. have question-answer the the we like floor turn

Steven Strah

CEO. front and center goals. Great. our joining Well, I'm thanks, And very financial, to for progress made company. We're as me only you thank will a very and the as us proud remain about everyone, to much, customer not culture but ESG business, for and we've our that achieve today. transform service our continuing that

communities that very We more long-term going to work value I continue our deliver customers that shareholders, serve. confident do. to have we our employees, our for am to we're and But

and to this So as we we And work wish I pandemic. look of to forward you all of and families EEI. health through you at just your many to continue great talking continued safety

and once for thank joining So us. with that, all you again the best,

Operator

today's concludes teleconference. This

your You for time. a may and disconnect have you Thank great at this day. lines participation, your

FirstEnergy (FE) 29 Oct 212021 Q3 Earnings call transcript