PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Components of Net Periodic Benefit Costs

The components of FirstEnergy’s net periodic benefit costs (credits) for pension and OPEB were as follows:


Components of Net Periodic Benefit Costs (Credits)	Pension				OPEB
For the Three Months Ended June 30,	2023		2022		2023		2022
	(In millions)
Service costs	$	35	$	46	$	—	$	1
Interest costs	107		68		6		2
Expected return on plan assets	(142)		(164)		(8)		(10)
Amortization of prior service costs (credits)	1		—		(2)		(2)
Special termination benefits (1)	5		—		2		—
Pension and OPEB mark-to-market adjustment	(59)		—		—		—
Net periodic benefit credits	$	(53)	$	(50)	$	(2)	$	(9)
Net periodic benefit credits, net of amounts capitalized	$	(70)	$	(72)	$	(3)	$	(10)

(1) Related to benefits provided in connection with the PEER.


Components of Net Periodic Benefit Costs (Credits)	Pension				OPEB
For the Six Months Ended June 30,	2023		2022		2023		2022
	(In millions)
Service costs	$	69	$	92	$	1	$	2
Interest costs	216		136		11		5
Expected return on plan assets	(270)		(328)		(16)		(20)
Amortization of prior service costs (credits) (1)	1		1		(4)		(5)
Special termination benefits (2)	5		—		2		—
Pension and OPEB mark-to-market adjustment	(59)		—		—		—
Net periodic benefit credits	$	(38)	$	(99)	$	(6)	$	(18)
Net periodic benefit credits, net of amounts capitalized	$	(73)	$	(141)	$	(7)	$	(19)

(1) The income tax benefits associated with the pension and OPEB prior service costs amortized out of AOCI were $1 million for the six months ended June 30, 2023 and 2022.

(2) Related to benefits provided in connection with the PEER.

Schedule of Assumptions Used to Determine Net Periodic Benefit Cost


Assumption	Pension	OPEB
Effective rate for interest costs on benefit obligations(1)	5.10%/4.80%	5.06	%
Effective rate for service costs(1)	5.34%/5.11%	5.41	%
Effective rate for interest on service costs(1)	5.22%/4.94%	5.33	%
Annual expected rate of return on plan assets	8.00%	7.00	%

(1) Pension rates effective for January 1, 2023 through April 30, 2023 and May 1, 2023 through December 31, 2023, respectively.