FirstEnergy Corp.

Overview Key strengths Key risks Monopolistic electric utility operations. Ongoing lawsuits and investigations related to the fallout from House Bill 6. Strong geographic and regulatory diversity with operations across six constructive regulatory frameworks. Forecast negative discretionary cash flow, reflecting robust capital spending and dividends, indicates external future funding needs. Large customer base of over six million electric customers. Susceptibility to adverse weather events throughout all jurisdictions. Execution risks related to minority-interest sale in FirstEnergy Transmission LLC (FET) FirstEnergy Corp.'s If the company fully meets its obligations under the agreement, which ends in 2024, the DOJ will most likely dismiss its charges against FirstEnergy, which would reduce risk for FirstEnergy and its subsidiaries. There are still several pending lawsuits and investigations

...FirstEnergy Corp.'s (FE's) management team gave the second of three updates to the U.S. Department of Justice (DOJ) concerning its deferred prosecution agreement (DPA), in connection to the legal fallout from House Bill 6. If the company fully meets its obligations under the agreement, which ends in 2024, the DOJ will most likely dismiss its charges against FirstEnergy, which would reduce risk for FirstEnergy and its subsidiaries. There are still several pending lawsuits and investigations into the company concerning actions of its prior management and governance shortfalls that could adversely affect FE, including numerous shareholder lawsuits. Recently, management also disclosed new subpoenas during the second quarter from the Ohio Organized Crime Investigations Commission and Securities and Exchange Commission related to the legal fallout from House Bill 6. We will continue to actively monitor these developments. We expect FE to effectively manage its regulatory risk across its large...

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