REVENUE

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

The following represents a disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2024		2023		2024		2023
Distribution
Retail generation and distribution services
Residential	$	1,222	$	1,174	$	3,460	$	3,312
Commercial	395		405		1,153		1,156
Industrial	138		150		437		575
Other	18		18		56		52
Wholesale	2		7		4		20
Other revenue from contracts with customers	23		23		63		69
Total revenues from contracts with customers	1,798		1,777		5,173		5,184
Other revenue unrelated to contracts with customers	19		18		59		55
Total Distribution	$	1,817	$	1,795	$	5,232	$	5,239
Integrated
Retail generation and distribution services
Residential	$	802	$	692	$	1,954	$	1,621
Commercial	335		281		863		777
Industrial	151		140		436		408
Other	8		9		22		23
Wholesale	50		58		118		153
Transmission	86		74		283		224
Other revenue from contracts with customers	5		5		18		17
Total revenues from contracts with customers	1,437		1,259		3,694		3,223
Other revenue unrelated to contracts with customers	15		7		31		27
Total Integrated	$	1,452	$	1,266	$	3,725	$	3,250
Stand-Alone Transmission
ATSI	$	262	$	245	$	766	$	712
TrAIL	68		72		206		204
MAIT	116		101		330		288
KATCo	24		16		67		58
Other	—		—		(2)		—
Total revenues from contracts with customers	470		434		1,367		1,262
Other revenue unrelated to contracts with customers	5		5		14		13
Total Stand-Alone Transmission	$	475	$	439	$	1,381	$	1,275
Corporate/Other, Eliminations and Reconciling Adjustments
Wholesale	$	2	$	1	$	6	$	6
Eliminations and reconciling adjustments	(17)		(14)		(48)		(46)
Total Corporate/Other, Eliminations and Reconciling Adjustments	$	(15)	$	(13)	$	(42)	$	(40)
FirstEnergy Total Revenues	$	3,729	$	3,487	$	10,296	$	9,724

Customer Receivables

Receivables from contracts with customers include distribution services and retail generation sales to residential, commercial and industrial customers of the Electric Companies. Billed and unbilled customer receivables as of September 30, 2024, and December 31, 2023, are included below:

Customer Receivables	September 30, 2024		December 31, 2023
	(In millions)
Billed	$	955	$	717
Unbilled	604		665
	1,559		1,382
Less: Uncollectible Reserve	49		64
Total Customer Receivables	$	1,510	$	1,318

The allowance for uncollectible customer receivables is based on historical loss information comprised of a rolling 36-month average net write-off percentage of revenues, in conjunction with a qualitative assessment of elements that impact the collectability of receivables to determine if allowances for uncollectible customer receivables should be further adjusted in accordance with the accounting guidance for credit losses.

FirstEnergy reviews its allowance for uncollectible customer receivables utilizing a quantitative and qualitative assessment. Management contemplates available current information such as changes in economic factors, regulatory matters, industry trends, customer credit factors, amount of receivable balances that are past-due, payment options and programs available to customers, and the methods that the Electric Companies are able to utilize to ensure payment. FirstEnergy’s uncollectible risk on PJM receivables, resulting from transmission and wholesale sales, is minimal due to the nature of PJM’s settlement process and as a result there is no current allowance for doubtful accounts.

Activity in the allowance for uncollectible accounts on customer receivables for the nine months ended September 30, 2024, and for the year ended December 31, 2023 are as follows:

	(In millions)
Balance, January 1, 2023	$	137
Provision for expected credit losses(1)	8
Charged to other accounts(2)	34
Write-offs	(115)
Balance, December 31, 2023	$	64
Provision for expected credit losses(1)	40
Charged to other accounts(2)	27
Write-offs	(82)
Balance, September 30, 2024	$	49

(1) Approximately $7 million and $(15) million of which was deferred for future recovery (refund) in the nine months ended September 30, 2024 and the year ended December 31, 2023, respectively.

(2) Represents recoveries and reinstatements of accounts written off for uncollectible accounts.