PUCO Approves FirstEnergy Settlement, Delivering Customer Benefits

Rhea-AI Summary

FirstEnergy (NYSE: FE) announced PUCO approval of a settlement delivering $275 million in restitution and refunds to Ohio Edison, The Illuminating Company and Toledo Edison customers.

The settlement returns $250 million directly to customers, adds $5 million in residential credits, and dedicates $20 million to low‑income bill assistance, weatherization and energy‑efficiency programs. Average residential customers using 1,000 kWh/month are expected to receive about $65.61 in bill credits over three months.

FirstEnergy said it remains focused on investing $14 billion in Ohio transmission and distribution through 2029. The settlement resolves four PUCO proceedings and is subject to any remaining PUCO adjustments or final actions.

Positive

• Settlement provides $275 million total restitution and refunds
• Returns $250 million directly to customers
• $5 million in additional residential bill credits
• $20 million dedicated to low‑income and efficiency programs
• Average residential credit ≈ $65.61 over three months
• $14 billion planned Ohio infrastructure investment through 2029

Negative

• Some post‑credit bill changes include Illuminating Company +$13.69/month
• Ohio Edison estimated post‑credit bill increase of $2.42/month
• Settlement and Nov. 19, 2025 order remain subject to PUCO adjustments

Key Figures

Total customer benefits $275 million Restitution and refunds under PUCO-approved settlement

Direct customer refunds $250 million Returned directly to Ohio Edison, Illuminating, Toledo Edison customers

Extra residential credits $5 million Additional bill credits for residential customers

Customer assistance programs $20 million Low‑income assistance, weatherization and efficiency initiatives

Average bill credits $65.61 Total bill credits over three months for 1,000 kWh/month user

Planned Ohio investment $14 billion Transmission and distribution infrastructure, workforce and facilities through 2029

Toledo Edison bill change $17.81 decrease Expected average monthly bill impact vs January 2026, with temporary credits

Ohio Edison bill change $13.27 decrease Expected average monthly bill impact vs January 2026, with temporary credits

Market Reality Check

$44.65 Last Close

Volume Volume 3,619,975 is below 20-day average 4,157,174 (relative volume 0.87). normal

Technical Price 44.56 is trading above 200-day MA at 43.22, near the 52-week high of 48.2.

Peers on Argus

FE slipped -0.62% while peers AEE (-2.18%), ES (-2.81%), EIX (-2.14%), PPL (-1.88%) and WEC (-1.39%) saw larger declines, suggesting a company-specific buffer against broader utility weakness.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 19	Regulatory settlement	Positive	-0.9%	Announced PUCO settlement with $275M in customer benefits and grid investments.
Dec 17	Dividend declaration	Positive	+0.3%	Declared $0.445 per share quarterly dividend with 2026 record and pay dates.
Dec 17	Grid investment project	Positive	+1.1%	Outlined $28M 69-kV line rebuild in Pennsylvania under $28B Energize365 program.
Dec 16	Charitable grants PA	Neutral	-1.3%	Announced $20,000 in Gifts of the Season grants to two Pennsylvania nonprofits.
Dec 16	Charitable grants OH	Neutral	-1.3%	Announced $20,000 in Gifts of the Season grants to two Ohio nonprofits.

Pattern Detected

Recent positive or customer-friendly news has sometimes coincided with modest negative price reactions, while infrastructure and dividend updates aligned with small gains.

Recent Company History

Over the past month, FE has issued several updates. On Dec 19, 2025, it announced a PUCO settlement proposing $275 million in customer benefits and $14 billion Ohio grid investment, followed by a -0.87% move. A Dec 17 dividend declaration of $0.445 per share and a Mid-Atlantic grid upgrade (~$28 million) saw mild gains. Philanthropic grant news on Dec 16 coincided with about -1.3% moves. Today’s PUCO approval formalizes December’s proposed settlement.

Market Pulse Summary

This announcement finalizes PUCO approval of a settlement delivering $275 million in customer benefits and clarifies bill impacts across FirstEnergy’s Ohio utilities. It also reiterates plans to invest $14 billion in Ohio’s grid through 2029. Investors may track how these refunds, low‑income support programs and infrastructure spending interact with the company’s previously outlined 2026 outlook and longer-term Core earnings growth targets.

Key Terms

kwh technical

"the average residential customer using 1,000 kWh per month is expected"

A kWh (kilowatt-hour) is a measure of energy equal to running a 1,000-watt appliance for one hour; think of it like a gallon of gasoline but for electricity. Investors care because electricity prices and contracts are quoted in kWh, so it directly affects operating costs, utility revenues, project economics for power plants and batteries, and the value of efficiency or renewable energy investments.

AI-generated analysis. Not financial advice.

AKRON, Ohio, Jan. 8, 2026 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) announced that the Public Utilities Commission of Ohio (PUCO) has approved a comprehensive settlement agreement that will deliver $275 million in restitution and refunds to Ohio Edison, The Illuminating Company and Toledo Edison customers.

The PUCO's approval of the collaborative settlement represents a significant step forward for FirstEnergy and the communities we serve. The agreement resolves four regulatory proceedings — the Corporate Separation Rider, Rider DMR and Rider DCR matters addressed in the PUCO's Nov. 19, 2025 orders, as well as the pending review of Political and Charitable Spending — and returns $250 million directly to customers. The settlement also adds an additional $5 million in credits specifically for residential customers.

As a result, the average residential customer using 1,000 kWh per month is expected to receive approximately $65.61 in bill credits over three months. The settlement also dedicates $20 million to programs that support residential customers through low‑income bill assistance, weatherization and energy‑efficiency initiatives.

Torrence Hinton, FirstEnergy President, Ohio: "This agreement is a major step that allows us to move past legacy issues while showing our commitment to putting customers first and working transparently with regulators and stakeholders. With these proceedings resolved, we are focused on delivering value today and investing $14 billion in our Ohio transmission and distribution infrastructure, workforce and facilities through 2029 to build a stronger, more resilient energy future for the state."

What Customers Can Expect

Reflecting the effect of the settlement combined with the proposed impact of the Nov. 19, 2025, PUCO rate review order (which is subject to any PUCO adjustments and final approval), residential customers using 1,000 kWh per month are expected to see the following average monthly bill impacts compared to January 2026 bills:

• Toledo Edison: Decrease of ($17.81) per month
• Ohio Edison: Decrease of ($13.27) per month
• The Illuminating Company: Decrease of ($1.02) per month

When the temporary credits and charges from these orders expire, the estimated impact compared to average residential customer bills in January 2026 will be:

• Toledo Edison: Decrease of ($3.08) per month
• Ohio Edison: Increase of $2.42 per month
• The Illuminating Company: Increase of $13.69 per month

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 six 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 on X @FirstEnergyCorp or online at firstenergycorp.com.

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 133^rd 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, 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 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, and emerging technology including artificial intelligence, 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 noncompliance 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, the One Big Beautiful Bill Act of 2025, as signed into law on July 4, 2025, or adverse tax audit results or rulings and potential changes to such laws and regulations; 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.

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SOURCE FirstEnergy Corp.

FAQ

What did FirstEnergy (FE) announce on January 8, 2026 about customer refunds?

PUCO approved a settlement delivering $275 million in restitution and refunds to FE's Ohio distribution customers.

How much will FirstEnergy (FE) return directly to customers under the PUCO settlement?

$250 million will be returned directly to customers, plus $5 million in residential credits.

How much will an average FirstEnergy (FE) residential customer receive from the settlement?

A residential customer using 1,000 kWh/month is expected to receive about $65.61 in bill credits over three months.

What programs receive funding from the FirstEnergy (FE) PUCO settlement?

$20 million is allocated to low‑income bill assistance, weatherization and energy‑efficiency initiatives.

What are the estimated monthly bill impacts by utility after the settlement for FE customers?

Estimated immediate monthly decreases: Toledo Edison (−$17.81), Ohio Edison (−$13.27), Illuminating Company (−$1.02) versus January 2026 bills.

Does the FirstEnergy (FE) settlement affect future infrastructure investment plans in Ohio?

FirstEnergy reiterated plans to invest $14 billion in Ohio transmission and distribution through 2029.