Settlement Reached in Multiple PUCO FirstEnergy Proceedings

Rhea-AI Summary

FirstEnergy (NYSE: FE) and its Ohio electric companies reached a settlement to resolve four PUCO proceedings and provide $275 million to Ohio customers on Dec. 19, 2025. The agreement directs $250 million in restitution and refunds to customer bills in 2026 and an additional $25 million for residential customers, including $20 million for low-income bill assistance, weatherization and efficiency programs.

FirstEnergy also plans $14 billion of Ohio transmission and distribution investment from 2025–2029. The settlement requires PUCO approval and lists multiple consumer and industry parties as signatories.

Positive

• $250M restitution credited to customer bills in 2026
• $25M additional residential restitution, including $20M for low-income programs
• $14B planned Ohio transmission & distribution investment (2025–2029)

Negative

• Settlement is conditional on PUCO approval, so payments are not yet final

Key Figures

Customer settlement $275 million Total value provided to FirstEnergy Ohio customers under PUCO settlement

PUCO-directed amount $250 million Amount from Nov. 19 PUCO orders redirected fully to customers if approved

State general fund prior allocation $64 million Portion originally designated for Ohio state general fund under PUCO orders

Additional residential restitution $25 million Extra settlement funds dedicated exclusively to residential customers

Low-income & efficiency support $20 million For low-income bill assistance, weatherization and energy efficiency programs

Planned Ohio investment $14 billion Planned investment in Ohio T&D infrastructure, workforce and facilities, 2025–2029

Customers served More than 6 million Electric customers served across OH, PA, NJ, WV, MD and NY

Transmission mileage 24,000 miles Transmission lines operated by FirstEnergy’s subsidiaries

Market Reality Check

$44.23 Last Close

Volume Volume 4,420,203 vs 20-day average 4,774,026 ahead of this announcement. normal

Technical Price 44.62 is trading above the 200-day MA of 42.89, and about 7.43% below the 52-week high.

Peers on Argus

FE was up 0.27% prior to the news, while key regulated electric peers like AEE, ES, EIX, PPL and WEC were also modestly positive (around 0.27%–0.95%). Momentum scanners did not flag a sector-wide move, suggesting this regulatory settlement is more company-specific than part of a broad utilities rotation.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 17	Grid upgrade project	Positive	+1.1%	Announced $28M 69-kV line rebuild under $28B Energize365 grid program.
Dec 16	PA philanthropy grants	Positive	-1.3%	FirstEnergy Foundation $20K Gifts of the Season grants to PA nonprofits.
Dec 16	OH philanthropy grants	Positive	-1.3%	Gifts of the Season $20K grants to two Ohio nonprofits supporting basic needs.
Dec 16	WV/MD philanthropy grants	Positive	-1.3%	Gifts of the Season $40K support for nonprofits in WV and MD.
Dec 16	NJ philanthropy grants	Positive	-1.3%	Gifts of the Season $20K to NJ nonprofits; program totals $1.2M since 2016.

Pattern Detected

Recent infrastructure and philanthropic announcements were generally positive in tone, but three of the last four such news items coincided with negative price reactions, indicating occasional divergence between upbeat headlines and short-term trading.

Recent Company History

This announcement fits into a series of operational and community-focused updates. On Dec 17, 2025, FE highlighted a $28 million grid project within its broader $28 billion Energize365 program for 2025–2029, which saw a 1.07% gain. Multiple Dec 16, 2025 releases detailed foundation grants totaling up to $100,000 annually and $1.2 million since 2016, but those coincided with about -1.3% moves. Today’s PUCO settlement continues the theme of resolving Ohio-related regulatory matters flagged in recent 8-K filings.

Market Pulse Summary

This announcement resolves several PUCO proceedings by directing $275 million to Ohio customers, including $25 million in extra residential relief and $20 million for low-income assistance and efficiency programs. It follows earlier disclosures about Ohio-related regulatory orders and sits alongside a planned $14 billion Ohio infrastructure investment for 2025–2029. Investors may watch how future PUCO interactions and execution of this capital plan affect earnings and regulatory relationships over time.

Key Terms

Public Utilities Commission of Ohio (PUCO) regulatory

"settle multiple Public Utilities Commission of Ohio (PUCO) matters"

The Public Utilities Commission of Ohio (PUCO) is the state agency that regulates essential services like electricity, natural gas, water and some telecoms in Ohio, setting prices, approving infrastructure projects and enforcing service and safety rules. Think of it as a referee and thermostat for utilities: its decisions on rates, investments and policy directly affect utility companies’ revenues, costs and future projects, so investors watch PUCO rulings for signals about profitability and risk.

AI-generated analysis. Not financial advice.

Settlement provides $275 million to FirstEnergy Ohio customers 

AKRON, Ohio, Dec. 19, 2025 /PRNewswire/ -- FirstEnergy Corp.'s Ohio electric companies – Ohio Edison, Toledo Edison and The Illuminating Company – have reached an agreement with parties to settle multiple Public Utilities Commission of Ohio (PUCO) matters and provide $275 million to FirstEnergy's Ohio customers.

The settlement resolves four PUCO proceedings – the Corporate Separation, Rider DMR and Rider DCR matters that were the subjects of the PUCO's Nov. 19 orders and the pending Political and Charitable Spending review. The PUCO's Nov. 19 orders directed the companies to pay $250 million, with $64 million going to the state general fund. If approved by the PUCO, the settlement will direct all $250 million to all customers and add $25 million exclusively for residential customers.

Torrence Hinton, FirstEnergy President, Ohio: "We appreciate the dedication and collaboration shown by all parties and are grateful for the collective effort that led to an agreement that provides even more dollars to our Ohio customers. With these matters reaching resolution, we're moving ahead with a clear focus on operating with transparency, delivering reliable service and investing in Ohio communities."

Key Settlement Details 
Settlement provisions include:

• $250 million in restitution and refunds, credited to customer bills in 2026
• $25 million in additional restitution exclusively to residential customers, including $20 million for low-income bill payment assistance, weatherization and energy efficiency programs

Parties to the settlement include The Office of the Ohio Consumers' Counsel (OCC), Ohio Manufacturers' Association Energy Group (OMAEG), Ohio Energy Group (OEG), Northeast Ohio Public Energy Council (NOPEC), Northwest Ohio Aggregation Coalition (NOAC), Ohio Partners for Affordable Energy (OPAE), Citizens Utility Board of Ohio (CUB Ohio), Interstate Gas Supply, LLC (IGS), Retail Energy Supply Association (RESA), NRG/Direct Energy Services, LLC and Direct Energy Business, LLC, Ohio Environmental Council (OEC), Ohio Cable Telecommunications Association (OCTA) and FirstEnergy's Ohio utilities.

Focused on the Future
Between 2025 and 2029, FirstEnergy plans to invest $14 billion in Ohio's transmission and distribution infrastructure, workforce and facilities – critical improvements that enhance reliability, support economic growth and prepare for future energy needs. The company looks forward to working constructively with the PUCO and other stakeholders to meet the needs of customers and communities across Ohio.

FirstEnergy (NYSE: FE) 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 Letter 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 does the FirstEnergy (FE) Dec. 19, 2025 settlement provide to Ohio customers?

The settlement provides $275 million to Ohio customers: $250M credited to bills in 2026 and $25M extra for residential customers.

How much of the FirstEnergy (FE) settlement is allocated for low-income assistance in Ohio?

$20 million of the $25 million residential allocation is earmarked for low-income bill payment assistance, weatherization and efficiency programs.

When will FirstEnergy (FE) customers see the $250 million restitution on their bills?

The $250 million restitution is scheduled to be credited to customer bills in 2026, subject to PUCO approval.

Does the FirstEnergy (FE) settlement require regulatory approval?

Yes. The settlement is subject to approval by the Public Utilities Commission of Ohio (PUCO) before funds are distributed.

What long-term investments did FirstEnergy (FE) announce for Ohio after the settlement?

FirstEnergy plans to invest $14 billion in Ohio transmission, distribution, workforce and facilities between 2025 and 2029.

Which parties signed the FirstEnergy (FE) PUCO settlement in Ohio?

Signatories include consumer and industry groups such as OCC, NOPEC, IGS, RESA, NRG/Direct Energy, OEC, CUB Ohio and FirstEnergy's Ohio utilities.