FirstEnergy Holds 2025 Annual Meeting

Rhea-AI Summary

FirstEnergy Corp. (NYSE: FE) held its 2025 Annual Meeting where Board Chair, President and CEO Brian X. Tierney highlighted the company's transformation progress. The company's Energize365 capital investment program invested $4.5 billion in 2024, a 20% increase from 2023. FirstEnergy expanded its five-year investment target to $28 billion through 2029, including $5 billion planned for 2025. The company implemented an operating model redesign to enhance local decision-making across its five-state region. Shareholders reelected 10 directors and approved executive compensation while rejecting a proposal on lobbying activities reporting. FirstEnergy serves over 6 million customers across six states and operates approximately 24,000 miles of transmission lines connecting the Midwest and Mid-Atlantic regions.

Positive

• Significant capital investment of $4.5 billion in 2024, up 20% from 2023
• Expanded five-year investment target to $28 billion through 2029
• Operating model redesign to improve local decision-making and customer service
• Strong shareholder support demonstrated through board reelection and compensation approval

Negative

• None.

Insights

Utility Industry Analyst

FirstEnergy's $28B five-year investment plan signals substantial regulated growth while operational redesign improves local decision-making.

FirstEnergy's annual meeting reveals a company in strategic transformation mode with substantial capital plans to drive regulated growth. The expanded $28 billion five-year investment target through 2029 represents a significant commitment to grid modernization that should translate to predictable rate base growth across their multi-state service territory. This 20% year-over-year increase in capital deployment from 2023 to 2024 demonstrates management's confidence in their regulatory relationships and ability to execute infrastructure improvements.

The operational redesign that pushes decision-making closer to local communities is particularly notable. This "boots-on-the-ground" approach addresses a critical challenge for multi-state utilities – maintaining strong relationships with diverse regulatory bodies while ensuring investments align with specific regional needs. This localized strategy typically enables more successful rate case outcomes and regulatory approvals for capital recovery.

The Energize365 program's focus on grid reliability, security, and modernization aligns perfectly with regulatory priorities across FirstEnergy's footprint. These investments are precisely the type regulators generally support for rate base inclusion, providing a clear path to the company's earnings growth targets. By maintaining "strong customer affordability" alongside these investments, management is strategically positioning for more favorable regulatory treatment.

The governance continuity demonstrated through board re-elections provides stability during this transition period, while the failed shareholder proposal on lobbying disclosure reflects continued sensitivity around FirstEnergy's past political activities. Overall, this represents a utility executing a traditional regulated growth strategy, emphasizing predictable infrastructure investments to drive shareholder returns while improving system performance for customers.

Board Chair, President and CEO Brian X. Tierney highlights company's progress

Preliminary voting results announced

AKRON, Ohio, May 21, 2025 /PRNewswire/ -- In his address at the FirstEnergy Corp. (NYSE: FE) 2025 Annual Meeting of Shareholders today, Board Chair, President and Chief Executive Officer Brian X. Tierney said FirstEnergy has made significant progress toward its goal of becoming a premier electric company.

"This is a new FirstEnergy – optimized for performance, growth and financial strength, to deliver value to our investors and superior service to the 6 million customers who depend on us," he said.

Tierney stated that FirstEnergy executed a redesign of its operating model over the past 12 months to move accountability and decision-making closer to the customers, employees and regulators across its five-state region.

"Our boots-on-the-ground leadership team understands the distinct needs of their communities. This shapes and drives our strategy to invest in the electric system for the benefit of our customers," he added.

FirstEnergy's Energize365 capital investment program, which is fueled by its recent financial transformation, is focused on targeted investments to make the electric grid smarter, more secure and reliable, while maintaining a strong customer affordability position. In 2024, the program's inaugural year, FirstEnergy invested $4.5 billion in the program for the benefit of its customers, a 20% increase compared to 2023.

"This year, we expanded our five-year investment target to $28 billion through 2029, including $5 billion in 2025," Tierney said. "Our Energize365 investments solidly support our growth targets, as well as the economic viability of our region.

"Our progress to transform FirstEnergy supports our goal of optimizing the value we provide investors and the communities we serve," he continued. "As we continue our transformation, we remain centered on our mission: to safely and effectively deliver electricity that strengthens society and powers our economy. Your Board and leadership team are committed to building on the progress we have made. We are committed to our bright future as a premier electric company."

A video of Tierney's presentation is available in the Newsroom on firstenergycorp.com.

Preliminary Voting Results

FirstEnergy also announced preliminary voting results from its 2025 Annual Meeting. Shareholders reelected 10 directors to new one-year terms on the company's Board and ratified the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for 2025. Shareholders approved, on an advisory basis, named executive officer compensation.

The following directors were elected to one-year terms:

• Heidi L. Boyd, Senior Managing Director, Blackstone Inc.
• Jana T. Croom, Chief Financial Officer, Kimball Electronics, Inc.
• Steven J. Demetriou, Executive Chair of the Board of Directors at Amentum Holdings, Inc.
• Lisa Winston Hicks, Lead Independent Director of the Board and retired Board Chair of MV Transportation, Inc.
• Paul Kaleta, retired Executive Vice President, General Counsel, Federal Affairs, Chief Compliance Officer and Corporate Secretary at First Solar, Inc.; Managing Director of SERC Consulting LLC
• James F. O'Neil III, Chairman of the Board of CenTrio Energy, former Chief Executive Officer and Vice Chairman of Orbital Infrastructure Group
• John W. Somerhalder II, Former Interim President and Chief Executive Officer of FirstEnergy; former Non-Executive Board Chair of FirstEnergy; former Interim President and Chief Executive Officer of Center Point Energy, Inc.
• Brian X. Tierney, Board Chair, President and Chief Executive Officer of FirstEnergy
• Leslie M. Turner, retired Senior Vice President, General Counsel and Corporate Secretary of The Hershey Company
• Melvin Williams, retired President of Nicor Gas and Senior Vice President of Southern Company Gas

Preliminary results indicate shareholders did not approve a shareholder proposal seeking a report on lobbying activities and policies. FirstEnergy discloses such activities on its website.

All preliminary voting results are subject to final certification and will be filed with the Securities and Exchange Commission on a Form 8-K.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than 6 million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on X @FirstEnergyCorp.

Forward-Looking Statements: This news release includes forward-looking statements based on information currently available to management and unless the context requires otherwise, references to "we," "us," "our" and "FirstEnergy" refers to FirstEnergy Corp. and its subsidiaries. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "forecast," "target," "will," "intend," "believe," "project," "estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following: the potential liabilities, increased costs and unanticipated developments resulting from government investigations and agreements, including those associated with compliance with or failure to comply with the Deferred Prosecution Agreement entered into July 21, 2021 and settlements with the U.S. Attorney's Office for the Southern District of Ohio and the Securities and Exchange Commission ("SEC"); the risks and uncertainties associated with government investigations and audits regarding Ohio House Bill 6, as passed by Ohio's 133rd General Assembly ("HB 6") and related matters, including potential adverse impacts on federal or state regulatory matters, including, but not limited to, matters relating to rates; the risks and uncertainties associated with litigation, arbitration, mediation and similar proceedings, particularly regarding HB 6 related matters; changes in national and regional economic conditions, including recession, volatile interest rates, inflationary pressure, supply chain disruptions, higher fuel costs, and workforce impacts, affecting us and/or our customers and those vendors with which we do business; variations in weather, such as mild seasonal weather variations and severe weather conditions (including events caused, or exacerbated, by climate change, such as wildfires, hurricanes, flooding, droughts, high wind events and extreme heat events) and other natural disasters, which may result in increased storm restoration expenses or material liability and negatively affect future operating results; the potential liabilities and increased costs arising from regulatory actions or outcomes in response to severe weather conditions and other natural disasters; legislative and regulatory developments, and executive orders, including, but not limited to, matters related to rates, energy regulatory policies, compliance and enforcement activity, cyber security, climate change, and diversity, equity and inclusion; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us, including the increasing number of financial institutions evaluating the impact of climate change on their investment decisions, and the loss of FirstEnergy Corp.'s status as a well-known seasoned issuer; the risks associated with physical attacks, such as acts of war, terrorism, sabotage or other acts of violence, and cyber-attacks and other disruptions to our, or our vendors', information technology system, which may compromise our operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to accomplish or realize anticipated benefits through establishing a culture of continuous improvement and our other strategic and financial goals, including, but not limited to, executing Energize365, our transmission and distribution investment plan, executing on our rate filing strategy, controlling costs, improving credit metrics, maintaining investment grade ratings, strengthening our balance sheet and growing earnings; changing market conditions affecting the measurement of certain liabilities and the value of assets held in our pension trusts may negatively impact our forecasted growth rate, results of operations and may also cause it to make contributions to its pension sooner or in amounts that are larger than currently anticipated; changes in assumptions regarding factors such as economic conditions within our territories, the reliability of our transmission and distribution system, our generation resource planning in West Virginia, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; human capital management challenges, including among other things, attracting and retaining appropriately trained and qualified employees and labor disruptions by our unionized workforce; mitigating exposure for remedial activities associated with retired and formerly owned electric generation assets, including those sites impacted by the legacy coal combustion residual rules that were finalized during 2024, and the Environmental Protection Agency's reconsideration of such rule; changes to environmental laws and regulations, including, but not limited to, federal and state rules related to climate change, and potential changes to such laws and regulations as a result of the U.S. presidential administration; changes in customers' demand for power, including, but not limited to, economic conditions, the impact of climate change, emerging technology, particularly with respect to electrification, energy storage and distributed sources of generation; future actions taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; the potential of non-compliance with debt covenants in our credit facilities; the ability to comply with applicable reliability standards and energy efficiency and peak demand reduction mandates; changes to significant accounting policies; any changes in tax laws or regulations, including, but not limited to, the Inflation Reduction Act of 2022, or adverse tax audit results or rulings and potential changes to such laws and regulations as a result of the new U.S. presidential administration; the ability to meet our publicly-disclosed goals relating to climate-related matters, opportunities, improvements, and efficiencies, including FirstEnergy's Greenhouse gas reduction goals' and the risks and other factors discussed from time to time in FirstEnergy Corp.'s SEC filings. Dividends declared from time to time on FirstEnergy Corp.'s common stock during any period may in the aggregate vary from prior periods due to circumstances considered by the FirstEnergy Corp. Board at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. These forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy Corp.'s Form 10-K, Form 10-Q and in other filings with the SEC. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy Corp.'s business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy Corp. expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein or in the information incorporated by reference as a result of new information, future events or otherwise.

News Media Contact:	Investor Contact:
Tricia Ingraham	Karen Sagot
(330) 384-5247	(330) 761-4286

 

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SOURCE FirstEnergy Corp.

FAQ

What is FirstEnergy's (FE) Energize365 investment program target through 2029?

FirstEnergy's Energize365 program has a five-year investment target of $28 billion through 2029, with $5 billion planned for 2025.

How much did FirstEnergy (FE) invest in its Energize365 program in 2024?

FirstEnergy invested $4.5 billion in the Energize365 program during 2024, representing a 20% increase compared to 2023.

Who was elected as directors at FirstEnergy's 2025 annual meeting?

Shareholders reelected 10 directors to one-year terms, including Brian X. Tierney as Board Chair, President and CEO, and other experienced industry professionals.

What is FirstEnergy's (FE) current customer base and service area?

FirstEnergy serves more than 6 million customers across six states (Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York) and operates about 24,000 miles of transmission lines in the Midwest and Mid-Atlantic regions.