SEGMENT INFORMATION

Regulated Distribution and Regulated Transmission are FirstEnergy's reportable segments.

Financial information for each of FirstEnergy’s reportable segments is presented in the tables below.

The Regulated Distribution segment distributes electricity through FirstEnergy’s ten utility operating companies, serving approximately six million customers within 65,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and New York. This segment also controls 3,790 MWs of regulated electric generation capacity located primarily in West Virginia, Virginia and New Jersey. Regulation of our retail distribution rates is generally premised on providing an opportunity to earn a reasonable return of and on prudently incurred invested capital to provide service to our customers through the use of both base rate proceedings and other cost-based rate mechanisms, including recovery riders and trackers. The segment's results reflect the costs of securing and delivering electric generation from transmission facilities to customers, including the deferral and amortization of certain related costs.

The Regulated Transmission segment provides transmission infrastructure owned and operated by the Transmission Companies and certain of FirstEnergy's utilities (JCP&L, MP, PE and WP) to transmit electricity from generation sources to distribution facilities. The segment's revenues are primarily derived from forward-looking formula rates at the Transmission Companies as well as stated transmission rates at JCP&L, MP, PE and WP. Both the forward-looking formula and stated rates recover costs that the regulatory agencies determine are permitted to be recovered and provide a return on transmission capital investment. Under forward-looking formula rates, the revenue requirement is updated annually based on a projected rate base and projected costs, which is subject to an annual true-up based on actual costs. The segment's results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy's transmission facilities.

The Corporate/Other segment reflects corporate support not charged to FE's subsidiaries, interest expense on FE’s holding company debt and other businesses that do not constitute an operating segment. Additionally, reconciling adjustments for the elimination of inter-segment transactions and discontinued operations are included in Corporate/Other. Reconciling adjustments are shown separately in the following table of Segment Financial Information. As of December 31, 2018, approximately 70 MWs of electric generating capacity, representing AE Supply's OVEC capacity entitlement, was included in continuing operations of the Corporate/Other reportable segment. As of December 31, 2018, Corporate/Other had approximately $7.1 billion of FE holding company debt.

FES, FENOC, BSPC and a portion of AE Supply (including the Pleasants Power Station), representing substantially all of FirstEnergy’s operations that previously comprised the CES reportable operating segment, are presented as discontinued operations in FirstEnergy’s consolidated financial statements resulting from the FES Bankruptcy and actions taken as part of the strategic review to exit commodity-exposed generation, as discussed below. During the third quarter of 2018, the Pleasants Power Station was reclassified to discontinued operations following its inclusion in the definitive FES Bankruptcy settlement agreement for the benefit of FES' creditors. Prior period results have been reclassified to conform with such presentation as discontinued operations. The financial information for all periods has been revised to present the discontinued operations within Reconciling Adjustments. The remaining business activities that previously comprised the CES reportable operating segment were not material and, as such, have been combined into Corporate/Other for reporting purposes.

Segment Financial Information



For the Years Ended December 31,	Regulated Distribution			Regulated Transmission			Corporate/ Other			Reconciling Adjustments			FirstEnergy Consolidated
	(In millions)

2018
Total revenues	$	10,103		$	1,353		$	34		$	(229	)	$	11,261
Provision for depreciation	812			252			3			69			1,136
Amortization (Deferral) of regulatory assets, net	(163		)	13			—			—			(150		)
Miscellaneous income (expense), net	192			14			32			(33		)	205
Interest expense	514			167			468			(33		)	1,116
Income taxes	422			122			(54		)	—			490
Income (loss) from continuing operations	1,242			397			(617		)	—			1,022
Total assets	28,690			10,404			969			—			40,063
Total goodwill	5,004			614			—			—			5,618
Property additions	1,411			1,104			133			27			2,675

2017
Total revenues	$	9,760		$	1,324		$	43		$	(199	)	$	10,928
Provision for depreciation	724			224			10			69			1,027
Amortization of regulatory assets, net	292			16			—			—			308
Impairment of assets	—			41			—			—			41
Miscellaneous income (expense), net	57			1			39			(44		)	53
Interest expense	535			156			358			(44		)	1,005
Income taxes (benefits)	580			205			930			—			1,715
Income (loss) from continuing operations	916			336			(1,541		)	—			(289		)
Total assets	27,730			9,525			1,007			3,995			42,257
Total goodwill	5,004			614			—			—			5,618
Property additions	1,191			1,030			49			317			2,587

2016
Total revenues	$	9,619		$	1,143		$	140		$	(202	)	$	10,700
Provision for depreciation	676			187			3			67			933
Amortization of regulatory assets, net	290			7			—			—			297
Impairment of assets	—			—			43			—			43
Miscellaneous income (expense), net	85			(1		)	(17		)	(23		)	44
Interest expense	586			158			252			(23		)	973
Income taxes (benefits)	375			187			(35		)	—			527
Income (loss) from continuing operations	651			331			(431		)	—			551
Total assets	27,702			8,755			1,061			5,630			43,148
Total goodwill	5,004			614			—			—			5,618
Property additions	1,063			1,101			56			615			2,835