Q1 2025 FirstEnergy Corp Earnings Call

April 24, 2025

<unk> Vice President of Investor Relations. Please go ahead Karen.

Speaker Change: Thank you good morning, everyone and welcome to the first Energy's first quarter 2025 earnings were failed or chair, President and Chief Executive Officer, Brian Tierney will lead our call today and he will be joined by John Taylor, Our senior Vice President and Chief Financial Officer.

Speaker Change: Our earnings release presentation slides and related financial information are available on our website at Firstenergy Corp, Dot Com Slash IR.

Speaker Change: Today's discussion will include the use of non-GAAP financial measures and forward looking statements, which are subject to risks and uncertainties factor.

Speaker Change: Factors discussed in our earnings news release during today's conference call and in our SEC filings could cause our actual results to differ materially from these forward looking statements.

Speaker Change: The appendix of today's presentation includes supplemental information along with reconciliation of non-GAAP financial measures.

Speaker Change: Please read our cautionary statement and discussion of non-GAAP financial measures on slides two and three of the presentation now it's my pleasure to turn the call over to Brian.

Brian: Thank you Karen good morning, everyone. Thank you for joining us today and for your interest in Firstenergy.

Brian: We're off to a strong start this year with results that reflect solid execution on our regulated strategies robust capital investments and financial discipline.

Brian: We're on track to meet our 2025 core earnings guidance, we provided in the fourth quarter call.

Brian: Today, We will review our financial performance and highlights for the quarter provide updates on regulatory and legislative matters detail some growth opportunities and review the value proposition we offer shareholders.

Brian: For the first quarter of 2025, the company delivered GAAP earnings of <unk> 62 per share compared to <unk> 44 per share in 2024.

Brian: Core earnings for the first quarter of this year was <unk> 67 per share a significant improvement over 49 in the first quarter of last year.

Brian: Core earnings benefited from execution across our regulated businesses, including the impact of base rate cases that were approved last year in Pennsylvania, West, Virginia, and New Jersey, as well as a return to more normal weather for the first quarter of this year.

Brian: In addition, the team did a nice job of managing operating expenses in the first quarter.

Brian: O&M is in line with our plan slightly lower than last year and leadership continues to pursue further cost reductions.

Brian: Consistent with our plan, we implemented organizational design changes in the first quarter aimed at creating a more sustainable and efficient operating structure that moves management and decision, making closer to our customers employees and regulators.

Brian: These changes, which allowed us to reduce head count involved flattening layers of management consolidating functions and better aligning work across the company.

Brian: We are focused on becoming an agile and effective organization with continuous improvement as a part of our DNA going forward.

John: John will provide more details later in the call.

John: Our investment program is on track and we are making positive impact on system reliability and resiliency.

John: In the first quarter, we invested more than $1 billion in our system through our energized $3 65 capital program.

John: This is an increase of 15% compared to last year.

John: We remain confident in our plan to deploy $5 billion.

John: Of customer focus investments this year, and 11% increase compared to 2024 as.

John: As well as the $28 billion of investments in our plan through 2029.

John: We are pleased to make these investments that will deliver value and reliability improvements to our customers.

John: Our refreshed and experienced leadership team is now in place and they are bringing new energy to the company.

John: Together, we are committed to executing our strategies meeting our commitments and making Firstenergy a premier electric company.

John: Reflecting our confidence last month, the board approved a four 7% increase in our quarterly dividend.

John: Subject to continued board approval, the new quarterly payment of $44 five per share equates to an annual rate of $1 78 per share.

John: This represents an increase of 11% and annual declared dividends since 2023.

John: Okay.

John: Moving to slide six I'll discuss current regulatory and legislative activity.

John: First in Ohio, we are pleased that our base rate cases progressing.

John: Last month, our Ohio companies in various Interveners filed responses to the independent audit report that was published in late February.

John: And public hearings were held earlier this month.

John: We initiated settlement discussions in the base rate case, and hope to continue those through the pendency of the case hearings are scheduled to begin on may 5th and we look forward to the case proceeding expeditiously.

John: On the Legislative front, there has been a tremendous amount of activity in Ohio with House, Bill 15, and Senate Bill two.

John: We expect legislation to be sent to the governor in the May or June timeframe that will provide a transparent and predictable regulatory structure for Ohio utilities.

John: Key provisions of the house and Senate bills include establishing multiyear rate plans with forward test years, which we view is constructive.

We have been in active discussions with the governor legislators and other policymakers to offer perspective on certain aspects of the legislation.

John: As it makes its way to being a final bill our focus was on shoring a reasonable transition to the new regulatory framework.

John: Yeah.

John: In New Jersey, we recently reached a settlement in our infrastructure investment program Energize, New Jersey, which was approved by the Btu yesterday.

John: The plan includes investments of $335 million over three and a half years.

John: Of which approximately $202 million have formula rate treatment.

John: And includes capital investments in grid modernization system resiliency and substation modernization work work that is designed to upgrade <unk> distribution grid and targeted neighborhoods with an expansion of smart grid technology.

John: We are pleased to move forward with these investments which are included in our capital plan.

John: Turning to slide seven there are a number of opportunities for continued growth in our regulated footprint.

John: In West Virginia, we are preparing our integrated resource plan, which is due by the end of this year.

John: <unk> covers a 10 year period and includes new load forecast for the state as well as our proposals to address west Virginia's future generation needs.

John: As we prepare for this filing we continue exploring options to build new dispatch of generation in the state, which would allow for expanded growth and economic development.

John: West Virginia is fully integrated regulatory framework provides us with a competitive advantage for economic development and a path for investment in new dispatch will generation.

John: Yes.

John: Under the existing regulatory framework, we would be prepared to make these investments to meet west Virginia's economic development aspirations.

John: As I discussed in our last call. We remain excited about the data center development, we are seeing across our footprint.

John: Our plan through 2029 includes two six Gigawatts of data center demand that is active or contracted with more in the project pipeline that would be incremental to our base plan.

John: Earlier, this month, <unk> announced an investment of more than $800 million to build their new bowling Green datacenter and our Toledo Edison service territory and is expected to come online by the end of the year.

John: This data center will be optimized for med is AI workloads the transmission Capex associated with this facility is included in the current capital plan.

John: In the first quarter of this year, we received 15 large load study requests for data centers, representing approximately nine gigawatts of load.

John: 11 of these studies are for locations in Pennsylvania, and Ohio.

John: We have not experienced any slowdown of datacenter interest in our service territory.

John: We are also excited about the significant growth opportunities for transmission investment.

John: During the first quarter of 2025.

The PJM board approved approximately $3 billion of investment for the Valley link joint venture between Firstenergy AEP and Dominion.

John: We believe this innovative collaboration will enhance our competitiveness and future open windows.

John: Our investment in Valley link, which will be owned by Firstenergy transmission recently filed for a forward looking transmission rate at FERC requesting a 10, 9% base ROE with a 50 basis point incentives and a capital structure targeting 60% equity.

John: The valley linked investment when combined with another $300 million reach.

John: Recently approved by first for Firstenergy subsidiaries represents a new total company investment opportunity of approximately $800 million.

Karen Saget: Vice President of Investor Relations, Karen Saget Thank you.

$1 billion to build their new bowling Green datacenter and our Toledo Edison service territory and is expected to come online by the end of the year.

John: Turning to slide eight.

Unknown Executive: Good morning, everyone, and welcome to FirstEnergy's First Quarter 2025 Earnings Review.

John: Today, we are reaffirming our 2025 core EPS guidance range of $2 40.

This data center will be optimized for med is AI workloads the transmission Capex associated with this facility is included in the current capital plan.

Unknown Executive: Our Chair, President and Chief Executive Officer, Brian Tierney, will lead our call today, and he will be joined by John Taylor, our Senior Vice President and Chief Financial Officer.

John: To $2 60 per share.

John: And we continue to target the top half of that range.

John: This growth when combined with our current dividend yield represents a total annual shareholder return proposition of 10% to 12% with potential upside through <unk> expansion.

In the first quarter of this year, we received 15 large load study request for data centers, representing approximately nine gigawatts of load.

Unknown Executive: Our earnings release, presentation slides, and related financial information are available on our website at FirstEnergyCorp.com slash IR. Today's discussion will include the use of non-GAAP financial measures and forward-looking statements, which are subject to risks and uncertainty. Factors discussed in our earnings news release during today's conference call and in our SEC filings could cause our actual results to defer materially from these forward-looking statements.

11 of these studies are for locations in Pennsylvania, and Ohio.

John: We are also reaffirming our 6% to 8% core earnings compound annual growth rate based on our $28 billion capital investment program through 2029.

We have not experienced any slowdown of datacenter interest in our service territory.

We are also excited about the significant growth opportunities for transmission investment.

John: As you would expect in a fully regulated domestic business. Our tariff exposure is de minimis, representing less than two tenths of a percent on our $28 billion capital investment program.

During the first quarter of 2025.

Unknown Executive: The appendix of today's presentation includes supplemental information along with reconciliation of non-GAAP financial measures. Please read our cautionary statement and discussion of non-GAAP financial measures on slides two and three of the presentation.

The PJM board approved approximately $3 billion of investment for the Valley link joint venture between Firstenergy AEP and Dominion.

John: Proactive management of our supply chain since Covid has resulted in a diversified supplier base with little exposure to single source suppliers.

We believe this innovative collaboration will enhance our competitiveness and future open windows.

Brian Tierney: Now it's my pleasure to turn the call over to Brian. Thank you, Karen. Good morning, everyone. Thank you for joining us today and for your interest in FirstEnergy. We're off to a strong start this year, with results that reflect solid execution on our regulated strategies, robust capital investments, and financial discipline. We're on track to meet our 2025 core earnings guidance we provided in the fourth quarter call.

John: In addition, the majority of our operations and maintenance expense is labor, which has no tariff exposure.

Our investment in Valley link, which will be owned by Firstenergy transmission <unk>.

Recently filed for a forward looking transmission rate at FERC requesting a 10, 9% base ROE with a 50 basis point incentives and a capital structure targeting 60% equity.

John: We expect any meaningful increases in our Capex program to be driven by increased investment opportunity rather than supply chain pricing.

John: We are off to a good start in 2025, and we remain steadfast on delivering on our commitments with stable growth fueled by our strong organic investment program.

The valley linked investment when combined with another $300 million.

Brian Tierney: Today, we will review our financial performance and highlights for the quarter, provide updates on regulatory and legislative matters, detail some growth opportunities, and review the value proposition we offer shareholders. For the first quarter of 2025, the company delivered gap earnings of $0.62 per share, compared to $0.44 per share in 2024. core earnings for the first quarter of this year were $0.67 per share, a significant improvement over $0.49 in the first quarter of last year. Corp earnings benefited from execution across our regulated businesses, including the impact of base rate cases that were approved last year in Pennsylvania, West Virginia, and New Jersey, as well as a return to more normal weather for the first quarter of this year.

Recently approved by first for Firstenergy subsidiaries.

Represents a new total company investment opportunity of approximately $800 million.

John: I am excited about the progress we are making to become a more efficient and customer focused organization.

Turning to slide eight.

John: We are committed to executing our strategy delivering value and driving results.

Today, we are reaffirming our 2025 core EPS guidance range of $2 40.

John: With that I will turn the call over to John.

To $2 60 per share.

John: Thanks, Brian and good morning, everyone. We feel very good about the start to the year and our ability to deliver on our commitments with all of our key financial metrics through Q1 in line with or in some cases better than our plan.

And we continue to target the top half of that range.

This growth when combined with our current dividend yield represents a total annual shareholder return proposition of 10% to 12% with potential upside through <unk> expansion.

John: You can find more details on our results.

John: Reconciliations for core earnings and the strategic and financial highlights document, we posted to the IR website yesterday afternoon.

We are also reaffirming our 6% to 8% core earnings compound annual growth rate based on our $28 billion capital investment program through 2029.

Brian Tierney: In addition, the team did a nice job of managing operating expenses in the first quarter. O&M is in line with our plan, slightly lower than last year, and leadership continues to pursue further cost reduction. Consistent with our plan, we implemented organizational design changes in the first quarter aimed at creating a more sustainable and efficient operating structure that moves management and decision making closer to our customers, employees, and regulators. These changes, which allowed us to reduce headcount, involve flattening layers of management, consolidating functions, and better aligning work across the company. We are focused on becoming an agile and effective organization with continuous improvement as a part of our DNA going forward.

John: Looking at our first quarter results core earnings of <unk> 67, a share is a 37% improvement from 49, a share in the first quarter of last year.

As you would expect in a fully regulated domestic business. Our tariff exposure is de minimis, representing less than two tenths of a percent on our $28 billion capital investment program.

John: Our solid results reflect strong topline revenue growth and financial discipline as a result of the capital investments we are deploying on behalf of our customers.

Proactive management of our supply chain since Covid has resulted in a diversified supplier base with little exposure to single source suppliers.

John: Our rates and investment strategy significantly impacted our Q1 results.

John: Mainly from updated base rates in Pennsylvania, together with the full year impact of new base rates in New Jersey, and West, Virginia, which went into effect during the middle to latter part of Q1 of last year.

In addition, the majority of our operations and maintenance expense is labor, which has no tariff exposure.

John: Additionally, as I'll speak to in a minute we continue to see the benefits of our strong formula rate investment program, reflecting solid regulatory outcomes that I don't really contribute to meaningful customer focused investments, but also provide for solid regulated returns for our investors.

We expect any meaningful increases in our Capex program to be driven by increased investment opportunity rather than supply chain pricing.

We are off to a good start in 2025, and we remain steadfast on delivering on our commitments with stable growth fueled by our strong organic investment program.

Brian Tierney: John will provide more details later in the call. Our investment program is on track, and we are making positive impact on system reliability and resilience. In the first quarter, we invested more than a billion dollars in our system through our Energize 365 capital program. This is an increase of 15% compared to last year. We remain confident in our plan to deploy $5 billion of customer focus investments this year, an 11% increase compared to 2024, as well as the $28 billion of investments in our plan through 2029. We are pleased to make these investments that will deliver value and reliability improvements to our customers.

John: This winter weather impacts were on balance consistent with our normal expectations. By contrast in 2024 temperatures were significantly milder than normal with heating degree days, 15% below normal.

I am excited about the progress we are making to become a more efficient and customer focused organization.

John: The return to a more typical winter in the first quarter of this year resulted in much stronger customer demand as compared to last year with total customer demand increasing more than 4% led by a 10% increase in high margin residential sector.

We are committed to executing our strategy delivering value and driving results.

John: With that I will turn the call over to John.

John: On operating expenses O&M was in line with our plan and three 5% lower than last year, largely due to our continuous improvement and cost saving initiatives across the company.

John: You can find more details on our results.

John: Reconciliations for core earnings and the strategic and financial highlights document, we posted to the IR website yesterday afternoon.

John: Turning to our segment results for the first quarter and our distribution business core earnings increased 10 cents, a share, reflecting new rates in Pennsylvania and stronger customer demand.

Brian Tierney: Our refreshed and experienced leadership team is now in place, and they're bringing new energy to the company. Together, we are committed to executing our strategies, meeting our commitments, and making FirstEnergy a premier electric company. Reflecting our confidence, last month the board approved a 4.7% increase in our quarterly dividend. Subject to continued board approval, the new quarterly payment of $0.445 per share equates to an annual rate of $1.78 per share. This represents an increase of 11% in annual declared dividends since 2023.

John: Looking at our first quarter results core earnings of <unk> 67, a share is a 37% improvement from 49, a share in the first quarter of last year.

John: As a reminder, in December new base rates in Pennsylvania were approved for a net annual increase of $225 million beginning in January which includes the recovery of deferred costs and additional maintenance expenses.

John: Our solid results reflect strong topline revenue growth and financial discipline as a result of the capital investments we are deploying on behalf of our customers.

John: And our integrated segment core earnings also increased 10 cents. This year, resulting from improved base rates in New Jersey, and West Virginia in Q1 of last year strong rate base growth of 19% and formula rate transmission programs higher customer demand and lower O&M.

John: Our rates and investment strategy significantly impacted our Q1 results.

John: And the Standalone transmission business core earnings were <unk> 14, a share compared to <unk> 18 cents a share in the first quarter of 2024.

Brian Tierney: Moving to slide six, I'll discuss current regulatory and legislative activity. First, in Ohio, we are pleased that our base rate case is progressing. Last month, our Ohio companies and various intervenors filed responses to the independent audit report that was published in late February. And public hearings were held earlier this month. We initiated settlement discussions in the base rate case and hope to continue those through the pendency of the case.

John: Additionally, as I'll speak to in a minute we continue to see the benefits of our strong formula rate investment program, reflecting solid regulatory outcomes that not only contribute to meaningful customer focused investments, but also provide for solid regulated returns for our investors.

John: Rate base increased 10% year over year, resulting from our energized 365 investment program, but this was offset by the final quarter of dilution from the 30% interest sale of Firstenergy transmission to Brookfield, which which closed in March of 2024.

John: Finally in our corporate segment results improved <unk> <unk>, a share compared to the first quarter of 2024 due to lower financing costs associated with lower holding company long term debt.

Brian Tierney: Hearings are scheduled to begin on May 5th, and we look forward to the case proceeding expeditiously.

John: Approximately $760 million and lower average revolver borrowings of $450 million.

Brian Tierney: On the legislative front, there's been a tremendous amount of activity in Ohio with House Bill 15 and Senate Bill 2. We expect legislation to be sent to the governor in the May or June timeframe that will provide a transparent and predictable regulatory structure for Ohio utility. Key provisions of the House and Senate bills include establishing multi-year rate plans with forward test years, which we view as constructive. We have been in active discussions with the governor, legislators, and other policymakers to offer perspective on certain aspects of the legislation. As it makes its way to being a final bill, our focus is on ensuring a reasonable transition to the new regulatory framework.

John: Overall, we feel very good about execution against our plan, which resulted in an improvement in our consolidated ROE of 40 basis points since Q4 up to nine 8% on a trailing 12 month basis.

John: On operating expenses O&M was in line with our plan and three 5% lower than last year, largely due to our continuous improvement and cost saving initiatives across the company.

John: Looking at the full year, we are reaffirming our 2025 core earnings guidance of $2 40 to $2 60, a share and targeting the upper half of the range.

John: $2025 $5 billion investment plan is on track with capital deployment of over $1 billion in the first quarter.

John: This is 15% above last year with the majority of the increase and formula rate programs.

John: Our investment program is funded with internally generated cash flow and utility debt issuances.

Brian Tierney: In New Jersey, we recently reached a settlement in our infrastructure investment program, Energize New Jersey, which was approved by the BPU yesterday. The plan includes investments of $335 million over three and a half years, of which approximately $202 million have formula break treatment. It includes capital investments in grid modernization, system resiliency, and substation modernization work, work that is designed to upgrade JCP&L's distribution grid in targeted neighborhoods with an expansion of smart grid technology. We are pleased to move forward with these investments, which are included in our capital plan.

John: As discussed on our Q4 call we plan to issue approximately $3 $6 billion of debt.

John: Which $2 billion as new money to fund our capital programs.

John: We completed the first of these transactions earlier this month pricing $600 million of five year senior unsecured notes for Trans Allegheny Interstate line company, our trail at a coupon of 5%.

John: And the Standalone transmission business core earnings were <unk> 14, a share compared to <unk> 18 cents a share in the first quarter of 2020 for.

John: Presenting a 100 basis points spread to the five year treasury rate.

John: Rate base increased 10% year over year, resulting from our energized $3 65 investment program, but this was offset by the final quarter of dilution from the 30% interest sale of Firstenergy transmission to Brookfield, which which closed in March of 2024.

John: We continue to see strong investor demand for our debt offerings reflected the attractive.

John: Profile of our affiliate regulated diversified business combined with our strong balance sheet.

Brian Tierney: Turning to slide seven, there are a number of opportunities for continued growth in our regulated footprint. In West Virginia, we are preparing our integrated resource plan, which is due by the end of this year. The IRP covers a 10-year period and includes new load forecasts for the state, as well as our proposals to address West Virginia's future generation needs. As we prepare for this filing, we continue exploring options to build new dispatchable generation in the state, which would allow for expanded growth and economic development. West Virginia's fully integrated regulatory framework provides it with a competitive advantage for economic development and a path for investment in new dispatchable generation.

John: And on financial discipline as Brian mentioned the team is very focused on driving more efficiencies in cost reductions compared to our 136 $5 billion base.

John: Base O&M plan for 2025.

John: These opportunities include lower back office spending through the use of existing and new technology, optimizing our maintenance costs through more targeted capital investments and through various supply chain initiatives.

John: Overall, we feel very good about execution against our plan, which resulted in an improvement in our consolidated ROE of 40 basis points since Q4 up to nine 8% on a trailing 12 month basis.

John: We are building this type of continuous improvement thinking into our culture and into the expectations of leaders across the organization.

John: All of our leaders are highly engaged in ensuring that our operating costs support and enable the long term objectives of the company.

John: Looking at the full year, we are reaffirming our 2025 core earnings guidance of $2 40 to $2 60, a share and targeting the upper half of the range.

John: So to close out our prepared remarks, we are happy with the start to the year with solid execution against our regulated strategies, our investment plan and with financial discipline, our earnings and financial performance across our key metrics are where we expect them to be or even better.

John: Our $2025 $5 billion investment plan is on track with capital deployment of over $1 billion in the first quarter.

Brian Tierney: Under the existing regulatory framework, we would be prepared to make these investments to meet West Virginia's economic development aspirations.

John: This is 15% above last year with the majority of the increase and formula rate programs.

Brian Tierney: As I discussed in our last call, we remain excited about the data center development we are seeing across our footprint. Our plan through 2029 includes 2.6 gigawatts of data center demand that is active or contracted, with more in the project pipeline that would be incremental to our base plan. Earlier this month, META announced an investment of more than $800 million to build their new Bowling Green Data Center in our Toledo Edison service territory, and is expected to come online by the end of the year. This data center will be optimized for MEDA's AI workloads. The transmission capex associated with this facility is included in the current capital plan.

John: Our first quarter core EPS of <unk> 67, a share is in line with our plan and significantly stronger than last year.

John: Our investment program is funded with internally generated cash flow and utility debt issuances.

John: As discussed on our Q4 call we plan to issue approximately $3 $6 billion of debt.

John: With over $1 billion in capital investments during the quarter, we are on track with our plan and 15% above Q1 last year.

John: Which 2 billion as new money to fund our capital programs.

John: Our base O&M of $340 million reflects strong financial discipline.

John: And is in line with our plan and improvement to the first quarter of last year and first quarter cash flow of $637 million is better than our plan and significantly better than our results from Q1 2024.

John: Representing a 100 basis points spread to the five year treasury rate.

John: We continue to see strong investor demand for our debt offerings reflected the attractive.

John: This is the type of performance that supports our value proposition, including the total shareholder return opportunity that we're focused on delivering for our shareholders. Thank you for your time. This morning, we are highly focused on delivering on our commitments to all of our stakeholders.

John: The profile of our fully regulated diversified business combined with our strong balance sheet.

Brian Tierney: In the first quarter of this year, we received 15 large load study requests for data centers representing approximately nine gigawatts of load. 11 of these studies are for locations in Pennsylvania and Ohio. We have not experienced any slowdown of data center interest in our service to her.

John: And on financial discipline as Brian mentioned the team is very focused on driving more efficiencies in cost reductions compared to our one $3 65 billion.

John: Now, let's open the call to your Q&A.

John: Base O&M plan for 2025.

John: Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.

John: These opportunities include lower back office spending through the use of existing and new technology.

John: Optimizing our maintenance costs through more targeted capital investments and through various supply chain initiatives.

John: <unk> tone will indicate your line is in the question queue.

John: You May press Star two if you remove yourself from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star keys.

Brian Tierney: We are also excited about the significant growth opportunities for transmission investors. During the first quarter of 2025, the PJM board approved approximately $3 billion of investment for the Valley Blink joint venture between FirstEnergy, AEP, and Dominion. We believe this innovative collaboration will enhance our competitiveness in future open windows. Our investment in ValleyLink, which will be owned by FirstEnergy Transmission, recently filed for a forward-looking transmission rate at FERC requesting a 10.9% base ROE with a 50 basis point incentive and a capital structure targeting 60% equity. The ValleyLink investment, when combined with another $300 million recently approved for FirstEnergy's subsidiaries, represents a new total company investment opportunity of approximately $800 million.

John: We are building this type of continuous improvement thinking into our culture and into the expectations of leaders across the organization.

John: One moment, please while we poll for questions.

John: All of our leaders are highly engaged in ensuring that our operating costs support and enable the long term objectives of the company.

John: Our first question.

John: Comes from the line of Michael alone again with Evercore ISI.

Speaker Change: Please proceed with your question.

Speaker Change: Hi, Good morning, Thanks for taking my questions. Just wondering how you would characterize the settlement discussions in Ohio with the hearings starting may fit you feel like you are close to reaching an agreement and what are the key areas that remain up for debate between the parties.

John: Our first quarter core EPS of <unk> 67, a share is in line with our plan and significantly stronger than last year.

Speaker Change: Yes. Thank you for the question Michael.

Speaker Change: I'd characterize the settlement discussions is productive and constructive.

John: With over $1 billion in capital investments during the quarter, we are on track with our plan and 15% above Q1 last year.

Speaker Change: We began and we had a number of parties who are engaged the key parties. We're engaged in the discussions.

Speaker Change: Those discussions will continue.

John: Our base O&M of $340 million reflects strong financial discipline.

Speaker Change: And they're focused on the type of things that you would anticipate.

Speaker Change: Cap structure ROE and the like so nothing that's unusual or surprising and I think the parties came to the table interested in discussing in settlement and hoping that we'd be able to get there. We're looking forward to the hearings beginning on may five.

Brian Tierney: Turning to slide eight. Today, we are reaffirming our 2025 core EPS guidance range of $2.40 to $2.60 per share, and we continue to target the top half of that range. This growth, when combined with our current dividend yield, represents a total annual shareholder return proposition of 10 to 12% with potential upside through PE expansion. We are also reaffirming our 6% to 8% core earnings compound annual growth rate based on our $28 billion capital investment program through 2029. As you would expect in a fully regulated domestic business, our tariff exposure is de minimis, representing less than two-tenths of a percent on our $28 billion capital investment program.

John: This is the type of performance that supports our value proposition, including the total shareholder return opportunity that we are focused on delivering for our shareholders. Thank you for your time. This morning, we are highly focused on delivering on our commitments to all of our stakeholders.

Speaker Change: And believe that will lead us to an expeditious outcome for the.

Speaker Change: For the base rate case, and look forward to continuing the settlement discussions through the pendency of the case.

Speaker Change: Great. Thank you and then you talked about a significant increase in large load studies since the last call you know and you highlighted no slowdown.

John: Now, let's open the call to your Q&A.

John: Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.

Speaker Change: The prior disclosure based on the data center pipeline was.

Speaker Change: For $350 million of incremental Capex through 2009, and beyond 2009, you had highlighted $300 million to $400 million of incremental spending opportunity I'm just wondering as we stand today, what would you say the upside is to these numbers.

John: You May press star two should remove yourself from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star keys.

John: One moment, please while we poll for questions.

John: Our first question.

Speaker Change: Yes, Mike Michael I'd say, it's about the same.

John: Comes from the line of Michael alone again with Evercore ISI.

Speaker Change: So in.

Brian Tierney: Proactive management of our supply chain since COVID has resulted in a diversified supplier base with little exposure to single source suppliers. In addition, the majority of our operations and maintenance expense is labor, which has no tariff exposure. We expect any meaningful increases in our CapEx program to be driven by increased investment opportunity rather than supply chain prices.

Speaker Change: In terms of people seeing in other areas.

Speaker Change: Please proceed with your question.

Michael: Hi, Good morning, Thanks for taking my questions. Just wondering how you would characterize the settlement discussions in Ohio with the hearings starting may fit you feel like you are close to reaching an agreement and what are the key areas that remain up for debate between the parties.

Speaker Change: Ada centers in Hyperscale and the like pulling back we actually had the announcement from Meda.

Speaker Change: <unk> data.

Speaker Change: Data center that they specifically have said is associated with being ready for their AI complement.

Speaker Change: So people are not in our service territory pulling back from that but continuing forward and I would just say there is no change to that long term outlook for Capex at this point.

Speaker Change: Yes. Thank you for the question Michael.

Speaker Change: I'd characterize the settlement discussions is productive and constructive.

Brian Tierney: We are off to a good start in 2025, and we remain steadfast on delivering on our commitments with stable growth fueled by our strong organic investment program. I am excited about the progress we are making to become a more efficient and customer focused organization. We are committed to executing our strategy, delivering value, and driving results.

Speaker Change: Great. Thanks for taking my question.

Speaker Change: We began them we had a number of parties who are engaged the key parties were engaged in the discussions.

Michael: Thank you Michael.

Michael: Thank you.

Speaker Change: Those discussions will continue.

Speaker Change: Our next question comes from the line of Shar President with Guggenheim Securities. Please proceed with your question.

Speaker Change: And they're focused on the type of things that you would anticipate.

Alex: Hey, good morning, everyone, it's actually Alex on for Shar.

Speaker Change: Good morning, Alex.

Speaker Change: So just wanted to touch on the Ohio legislation. So you mentioned you expect to build to be sent to the governor.

John Taylor: With that, I will turn the call over to John. Thanks, Brian, and good morning, everyone. We feel very good about the start to the year and our ability to deliver on our commitments with all of our key financial metrics through Q1 in line with, or in some cases, better than our plan.

Speaker Change: In the May June timeframe, obviously, a lot of positive momentum behind these builds but do you see one bill being favored over another or do you see the bills getting combined into one or more as more of a likely scenario and just sort of how should we be thinking about the overall process going forward. Thanks.

Speaker Change: And believe that will lead us to an expeditious outcome for the.

Speaker Change: For the base rate case, and look forward to continuing the settlement discussions through the pendency of the case.

Speaker Change: Great. Thank you and then you talked about a significant increase in large load studies since the last call you highlighted no slowdown.

John Taylor: You can find more details on our results, including reconciliations for core earnings in the strategic and financial highlights document we posted to the IR website yesterday afternoon. Looking at our first quarter results, core earnings of $0.67 a share is a 37% improvement from $0.49 a share in the first quarter of last year. Our solid results reflect strong top-line revenue growth and financial discipline as a result of the capital investments we are deploying on behalf of our customers. Our rates and investment strategy significantly impacted our Q1 results, mainly from updated base rates in Pennsylvania, together with the full year impact of new base rates in New Jersey and West Virginia, which went into effect during the middle to latter part of Q1 of last year.

Speaker Change: I can't say at this point Shar I think they are both moving forward. They both been voted out of their respective chambers.

Speaker Change: The prior disclosure based on the data center pipeline was.

Speaker Change: And how leadership decides to handle that going forward. We still don't have any particular insight into I think the key provisions of both bills that are of importance to us things like the multiyear rate cases with forward looking test years are things that are in both in our focus now is on moving from the current free.

Speaker Change: For $350 million of incremental Capex through 2009, and beyond 2009, you had highlighted $300 million to $400 million of incremental spending opportunity.

Speaker Change: Wondering as we stand today, what would you say the upside is to these numbers.

Speaker Change: Yes, Mike Michael I'd say, it's about the same.

Speaker Change: Mark that we have that has base rate cases, and EPS to the new framework that has the multiyear.

Speaker Change: So.

Speaker Change: Of people seeing in other areas.

Speaker Change: Data centers and Hyperscale is and the like pulling back we actually had the announcement from meda of the Toledo data.

Speaker Change:

Speaker Change: Base rate cases with forward looking test years.

Speaker Change: Datacenter that base, specifically have said is associated with being ready for their AI complement.

Speaker Change: And trying to make that transition as smoothly as possible.

Speaker Change: Great. Thanks.

John Taylor: Additionally, as I'll speak to in a minute, we continue to see the benefits of our strong formula rate investment program, reflecting solid regulatory outcomes that not only contribute to meaningful customer focused investment, but also provide for solid regulated returns for our investors. This winter, weather impacts were on balance, consistent with our normal expectations. By contrast, in 2024, temperatures were significantly milder than normal with heating degree days 15% below normal. The return to a more typical winter in the first quarter of this year resulted in much stronger customer demand as compared to last year, with total customer demand increasing more than 4%, led by a 10% increase in the high margin residential.

Speaker Change: And just as a follow up.

Speaker Change: So people are not in <unk> service territory pulling back from that but continuing forward and I'd just say, there's no change to that long term outlook for Capex at this point.

Speaker Change: The legislation passed as it is and assuming you remain an ESP for if the cap is in on frozen how should we think about the timing of your next base rate case.

Speaker Change: Great. Thanks for taking my question.

Speaker Change: Can you just talk about the different levers you can pull on to offset the potential impact of not having the cap lifted in the near term. Thanks.

Michael: Thank you Michael.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Shar President with Guggenheim Securities. Please proceed with your question.

Alex: Thank you for that Alex So there are a couple of things that could play out there.

Speaker Change: One is of course, we will go back and try and seek to get the cap lifted.

Alex: Hey, good morning, everyone, it's actually Alex on for Sean.

Speaker Change: Good morning, Alex.

Speaker Change: If that doesn't happen, we have opportunities to shift capex around both with in Ohio, and other jurisdictions until we can get in for a new base rate case, and then I anticipate that we'd be going in for a new base rate case under the new framework as early as the first of 2026 and we would expect.

Speaker Change: So just wanted to touch on the Ohio legislation. So you mentioned you expect to build to be sent to the governor.

John Taylor: On operating expenses, O&M was in line with our plan and 3.5% lower than last year, largely due to our continuous improvement and cost-saving initiatives across the country. Turning to our segment results for the first quarter, in our distribution business, core earnings increased 10 cents a share, reflecting new rates in Pennsylvania and stronger customer demand. As a reminder, in December, new base rates in Pennsylvania were approved for a net annual increase of $225 million beginning in January, which includes the recovery of deferred costs and additional maintenance. In our integrated segment, coronings also increased 10 cents this year, resulting from approved base rates in New Jersey and West Virginia in Q1 of last year, strong rate-based growth of 19% in formula rate transmission programs, higher customer demand, and lower O&M.

Speaker Change: Rates to be.

Speaker Change: In effects of that as early as one 127, so a number of levers that we can pull between now and then we're not giving up on.

Speaker Change: I can't say at this point Shar I think they are both moving forward. They both been voted out of their respective chambers.

Speaker Change: The.

Speaker Change: Cap persisting in ESP for but we have a number of levers to pull.

Speaker Change: As we get our way into that new framework.

Speaker Change: Sure.

Speaker Change: Okay. Thanks, I'll leave it there thanks for taking my questions.

Speaker Change: Alex.

Alex: Thank you.

Speaker Change: Our next question comes from the line of Nick Campanella with Barclays. Please proceed with your question.

Speaker Change: <unk> work that we have that has base rate cases, and EPS to the new framework that has the multiyear.

Nick Campanella: Hey, Thanks for taking my questions.

Nick Campanella: I just wanted to follow up quick.

Speaker Change:

Nick Campanella: See you guys moving forward towards settlement.

Speaker Change: Base rate cases with forward looking test years.

Nick Campanella: Is there just any chance that you can deal with ESP in that.

Speaker Change: And trying to make that transition as smoothly as possible.

Nick Campanella: Discussion.

John Taylor: And the standalone transmission business co-earnings were $0.14 a share compared to $0.18 a share in the first quarter of 2024. Rate base increased 10% year-over-year resulting from our Energize 365 investment program, but this was offset by the final quarter of dilution from the 30% interest sale of FirstEnergy transmission to Brookfield, which closed in March of 2024. Finally, in our corporate segment, results improved two cents a share compared to the first quarter of 2024 due to lower financing costs associated with lower holding company long-term debt of approximately $760 million and lower average revolver borrowings of $450 million.

Nick Campanella: Is that going to be more up to commission interpretation, you think since we're still waiting on the legislation to be finalized I was just trying to see if theres a window, where we can get more clarity on ESP sooner than later.

Speaker Change: Great. Thanks.

Speaker Change: And just as a follow up.

Speaker Change: The legislation passed as is.

Speaker Change: And assuming you remain an ESP for if the cap is in on frozen how should we think about the timing of your next base rate case and can you just talk about the different levers you can pull on to offset the potential impact of not having the cap lifted in the near term. Thanks.

Nick Campanella: Yes, Nick I don't think it would be in that base rate case settlement. As you know we have a current active open case for ESP six and so we would try and handle as much of the base rate case issues as we could and those settlement discussions and then I think the three other ways for things to play out.

Speaker Change: Thank you for that Alex So there are a couple of things that could play out there.

Speaker Change: One is of course, we will go back and try and seek to get the cap lifted.

Nick Campanella: Around.

Speaker Change: If that doesn't happen, we have opportunities to shift capex around both within Ohio, and the other jurisdictions until we can get in for a new base rate case, and then I anticipate that we'd be going in for a new base rate case under the new framework as early as.

Nick Campanella: <unk>.

Nick Campanella: The ESP one as if there would be legislation that would direct the commission.

Nick Campanella: Have a smooth transition to if not that we still think that legislatively. They would expect there to be a smooth transition between the current framework in the next one and we think the commission would pick up on that and try and make that transition as smoothly as possible and then as I discussed earlier in response to a question.

John Taylor: Overall, we feel very good about execution against our plan, which resulted in an improvement in our consolidated ROE of 40 basis points since Q4, up to 9.8% on a trailing 12-month basis. Looking at the full year, we are reaffirming our 2025 core earnings guidance of $2.40 to $2.60 a share and targeting the upper half of the range. Our 2025 $5 billion investment plan is on track, with capital deployment of over $1 billion in the first quarter. This is 15% above last year, with the majority of the increase in formula rate programs. Our investment program is funded with internally generated cash flow and utility debt issues.

Speaker Change: The first of 2026, and we would expect rates to be in.

Speaker Change: In effect for that as early as one $1 27, so a number of levers that we can pull between now and then we're not giving up on.

Nick Campanella: If we're unsuccessful in those I think there are opportunities for us to move capex around both within Ohio and in other jurisdictions and then get into as quickly as possible as we could for a new base rate case under the new framework. So a lot of levers for us to pull and we will be pulling all of those as timely as we.

Speaker Change: <unk>.

Speaker Change: Cap persisting in ESP for but we have a number of levers to pull.

Speaker Change: As we get our way into that new framework.

Speaker Change: Okay. Thanks, I'll leave it there thanks for taking my questions.

Speaker Change: Thanks, Alex.

Speaker Change: Okay.

Speaker Change: Thank you.

Nick Campanella: Can and communicating the results of that to the investment community as quickly as possible at the end result on all this Nick we're looking at investment between the end of our current base rate period of May 31 of last year, and when we get new rates in effect. So.

Speaker Change: Our next question comes from the line of Nick Campanella with Barclays. Please proceed with your question.

John Taylor: As discussed on our Q4 call, we plan to issue approximately $3.6 billion of debt. of which $2 billion is new money to fund our capital program. We completed the first of these transactions earlier this month, pricing $600 million of five-year senior unsecured notes. for Trans-Allegheny Interstate Line Company, or TRAIL, at a coupon of 5%. representing 100 basis points spread to the five-year Treasury rate. We continue to see strong investor demand for our debt offerings reflected the attractive Profile of our fully regulated, diversified business combined with our strong balance. And on financial discipline, as Brian mentioned, the team is very focused on driving more efficiencies and cost reductions compared to our $1.365 billion base O&M plan for 2025.

Nick Campanella: Hey, Thanks for taking my questions.

Nick Campanella: I just wanted to follow up quick good to see you guys moving forward towards settlement.

Nick Campanella: Is there just any chance that you could deal with ESP in that.

Nick Campanella: If we have to go to a new base rate case under the new framework there would be very little for the commission to review in time and magnitude and at the very worst there would be an incremental <unk> <unk>.

Nick Campanella: Discussion or is that going to be more up to commission interpretation you'd think since we're still waiting on the legislation to be finalized.

Nick Campanella: Trying to see if theres, a window, where we can get more clarity on ESP sooner than later.

Nick Campanella: <unk> 15 months or so on the on the regulatory lag that we would face potentially on a reduced amount given the actions we could take.

Speaker Change: Hey, that's great sorry about my confusion there on the process. Thanks for the clarification.

Speaker Change: Just as it relates to your kind of talking about a lot of different levers to offset what seems to be kind of a shifting environment with this ESP and you have youre at the high end of your 25.

Nick Campanella: Around.

Nick Campanella: <unk>.

Nick Campanella: The ESP one as if there would be legislation that would direct the commission.

John Taylor: These opportunities include lower back office spending through the use of existing and new technology, optimizing our maintenance costs through more targeted capital investments, and through various supply chain initiatives. We are building this type of continuous improvement thinking into our culture and into the expectations of leaders across the organization. All of our leaders are highly engaged in ensuring that our operating costs support and enable the long-term objectives of the Commission.

Speaker Change: 25 guidance now you have this 6% to 8% long term EPS CAGR. So do you still kind of expect regardless of the outcome do you expect to be able to offset that be within the range and be able to kind of grow linearly here at the 26 or how should we kind of think about that with this overhang.

Nick Campanella: To have a smooth transition to if not that we still think that legislatively. They would expect there to be a smooth transition between the current framework in the next one and we think the commission would pick up on that and try and make that transition as smoothly as possible and then as I discussed earlier in response to a question if were.

Speaker Change: Yes, so we do anticipate being able to offset that and as we've talked about the growth. We're not haven't been talking about linear exactly year to year to year, we've been talking about a compound annual growth rate over the investment horizon in that 6% to 8%.

Nick Campanella: Unsuccessful in those I think there are opportunities for us to move capex around both within Ohio and in other jurisdictions and then get into as quickly as possible as we could for a new base rate case under the new framework. So a lot of levers for us to pull and we will be pulling all of those as timely as we can.

John Taylor: So to close out our prepared remarks, we're happy with the start to the year, with solid execution against our regulated strategies, our investment plan, and with financial disincentive. Our earnings and financial performance across our key metrics are where we expect them to be, or even better. Our first quarter core EPS of 67 cents a share is aligned with our plan and significantly stronger than last year. With over $1 billion in capital investments during the quarter, we're on track with our plan and 15% above Q1 last year. Our base O&M of $340 million reflects strong financial discipline and is in line with our plan and improvement to the first quarter of last year.

Speaker Change: All the while within that 6% to 8%. So we're confident about our ability to stay in that range and deliver those results regardless of outcome around this.

Nick Campanella: And communicating the results of that to the investment community as quickly as possible.

Speaker Change: The base rate case, and how the levers that we can pull in the ESP.

Nick Campanella: At the end result on all this Nick we're looking at investment between the end of our current base rate period of May 31 of last year and when we get new rates in effect. So if we have to go to a new base rate case under the new framework, there would be very <unk>.

Brian: Thank you Brian Thank you.

Speaker Change: Thank you.

Brian: Thank you.

Speaker Change: Our next question comes from the line of Jeremy Tonet with J P. Morgan. Please proceed with your question.

Jeremy Tonet: Hi, good morning.

Brian: Morning, Jeremy.

Speaker Change: Maybe picking up on the last question if I Couldnt appreciate the sensitive nature of it all.

Nick Campanella: Little for the Commission to review in time and magnitude.

John Taylor: And first quarter cash flow of $637 million is better than our plan and significantly better than our results from Q1 2012. This is the type of performance that supports our value proposition, including the total shareholder return opportunity that we are focused on delivering for our shareholders.

Nick Campanella: And at the very worst there would be an incremental.

Speaker Change: But is there any other color you can provide to frame I guess, what you'd be looking to solve for if things kind of progressed legislation as it is right now versus the size of the levers that you have just trying to get a sense of how.

Nick Campanella: 15 months or so on the on the regulatory.

Nick Campanella: Tori lag that we would face potentially on a reduced amount given the actions we could take.

Nick Campanella: Yeah.

Nick Campanella: Hey, that's great sorry about my confusion there on the process. Thanks for the clarifications.

John Taylor: Thank you for your time this morning. We are highly focused on delivering on our commitments to all of our stakeholders.

Speaker Change: Manageable easier not easy it is to kind of work around.

Nick Campanella: Just as it relates to your kind of talking about a lot of different levers too.

Speaker Change: These items can be.

Unknown Executive: Now let's open the call to your Q&A. Thank you.

Speaker Change: Yes. So remember we're just talking about the investment that we've made and are going to make since may 31, 2024. So it's a limited universe and a limited timeframe and so we have made assumptions about what would happen with ESP six we've now modified those not <unk>.

Nick Campanella: Offset what seems to be kind of a shifting environment with this ESP and you have you were at the high end of your 'twenty five 'twenty.

Unknown Executive: We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star. One moment, please, while we hold for questions.

Nick Campanella: 25 guidance now you have this 6% to 8% long term EPS CAGR. So do you still kind of expect regardless of the outcome do you expect to be able to offset that be within the range and be able to kind of grow linearly here at the 26 or how should we kind of think about that with this overhang.

Speaker Change: <unk> that would go forward, assuming that we will be in ESP for and then we will be modifying how we do this going forward. So it's it's a modest and manageable amount of dollars in a modest and manageable amount of time Jeremy.

Nick Campanella: Yes, so we do anticipate being able to offset that and.

Michael Lonegan: Our first question. comes from the line of Michael Lonegan with Evercore ISI. Please proceed with your questions.

Nick Campanella: And as we've talked about the growth we're not haven't been talking about linear exactly year to year to year, we've been talking about a compound annual growth rate over the investment horizon in that 6% to 8% period, all the while within that 6% to 8%. So we're confident about our ability to stay in.

Michael Lonegan: Hi, good morning. Thanks for taking my questions. Just wondering how you would characterize the settlement discussions in Ohio, you know, with the hearing starting May 5th, do you feel like you're close to reaching an agreement? And, you know, what are the key areas that remain up for debate between the parties? Thank you for the question, Michael. I'd characterize the settlement discussions as productive and constructive. We began them, we had a number of parties who were engaged. The key parties were engaged in the discussions. Those discussions will continue, and they're focused on the type of things that you would anticipate, cap structure, ROE, and the like.

Speaker Change: Jeremy I would say I mean, we would be looking to move capital around we have plenty of opportunities to do that.

Speaker Change: We have the grid mod to capex that we could accelerate into 2026.

Nick Campanella: That range and deliver those results.

Speaker Change: We have the L tip, where we could move some of the Ohio based capital into that Capex program, we have opportunities in Maryland.

Nick Campanella: <unk> outcome around this.

Nick Campanella: The base rate case, and how the levers that we can pull in the ESP.

Nick Campanella: Thank you Brian Thank you.

Dan: Thank you Dan.

Speaker Change: In West, Virginia with transmission Capex. So we have a lot of opportunities to redeploy capital if and when we need to do that.

Nick Campanella: Yeah.

Nick Campanella: Thank you.

Speaker Change: Our next question comes from the line of Jeremy Tonet with Jpmorgan. Please proceed with your question.

Jeremy Tonet: Hi, good morning.

Speaker Change: And if you go back and look at the history.

Speaker Change: Morning, Jeremy.

Brian Tierney: So nothing that's unusual or surprising, and I think the parties came to the table interested in discussion in settlement and hoping that we'd be able to get there. We're looking forward to the hearings beginning on May 5th and believe that will lead us to an expeditious outcome for the base rate case and look forward to continuing the settlement discussions through the pendency of the case.

Speaker Change: Maybe picking up on the last question if I Couldnt appreciate the sensitive nature of it all.

Speaker Change: What we've done over the last two years with our capital program and we've moved.

Nick Campanella: But is there any other color you can provide to frame I guess, what you'd be looking to solve for if things kind of progressed legislation as it is right now versus the size of the levers that you have just trying to get a sense of how.

Speaker Change: Couple of $300 million of capital around in a given year. So that's not something that we're overly concerned about at this point in time.

Speaker Change: As we're talking to legislated legislators and policymakers in Ohio, We see there is a strong desire to move from the current framework to the new framework, we're not seeing a signal from them that they don't want investment in Ohio, and that lends itself to a smooth transition either through.

Nick Campanella: Manageable easier not easy it is to kind of work around what.

Michael Lonegan: Great, thank you. And then you talked about a significant increase in large load studies since the last call, you know, and you highlighted no slowdown. The prior disclosure based on the data center pipeline was, you know, for $350 million of incremental capex through $29 million. And beyond $29 million, you had highlighted $300 to $400 million of incremental spending opportunity. Just wondering, you know, as we stand today, what would you say the upside is to these numbers? Yeah, Michael, I'd say it's about the same. So, you know, in terms of people seeing in other areas Data Centers and Hyperscalers and the like pulling back.

Nick Campanella: These items can be.

Nick Campanella: Yes. So remember we're just talking about the investment that we've made and are going to make since may 31, 2024. So it's a limited universe and a limited timeframe and so we had made assumptions about what would happen with ESP six we've now modified those not <unk>.

Speaker Change: Raising the caps and the ESP for or some other mechanism. So the signals we are getting.

Speaker Change: Is not don't invest in Ohio, It's we're changing how we're doing regulation in Ohio, and we've heard from everyone that they expect a smooth transition.

Nick Campanella: <unk> that would go forward, assuming that we will be in ESP for and then we will be modifying how we do this going forward. So it's it's a modest and manageable amount of dollars and a modest and manageable amount of time Jeremy.

Speaker Change: Got it that's very helpful. There and then kind of shifting gears towards settlement talks going back there again appreciate the sensitive nature to it at all but just wondering if you can frame at all I guess, which parties are involved in the settlement conversations such as staff.

Nick Campanella: Jeremy I would say I mean, we would be looking to move capital around we have plenty of opportunities to do that.

Brian Tierney: We actually had the announcement from MEDA of the Toledo data center that they specifically have said is associated with being ready for their AI complement. So people are not in our service territory pulling back from that, but continuing forward. And I just say there's no change to that long term outlook for CapEx at this point.

Speaker Change: Who's more receptive who is less receptive and any color in general you can provide and the parties would be helpful. Yes, So Jeremy we really cant target with any specificity around that but we will say that.

Nick Campanella: We have the grid mod to capex that we could accelerate into 2026.

Nick Campanella: We have the L tip, where we could move some of the Ohio based capital into that Capex program, we have opportunities in Maryland.

Speaker Change: All the parties were involved initially we felt that the discussion tone and tenor was productive and constructive and along that vein, we're going to continue the dialogue youll remember during grid Mod to discussions we did file a partial settlement that was ultimately approved and we think that's an avenue.

Michael Lonegan: Great, thanks for taking my questions. Thank you, Mike.

Nick Campanella: In West, Virginia with transmission Capex. So we have a lot of opportunities to redeploy capital if and when we need to do that.

Shahriar Pourreza: Our next question comes from the line of Shahriar Pourreza with Guggenheim Securities. Please proceed with your question. Hey, good morning, everyone.

Nick Campanella: And if you go back and look at the history.

Shahriar Pourreza: It's actually Alexander Shahriar. Good morning, Alec. Good morning. So just want to touch on the Ohio legislation. So you mentioned, you know, you expect the bill to be sent to the governor on the May June timeframe, obviously, a lot of positive momentum behind these bills. But do you see one bill being favored over another? Or do you see the bills getting combined into one or more as more of a likely scenario? And just sort of how should we be thinking about the overall process going forward? Thanks.

Speaker Change: Thats open to us in this instance, as well.

Nick Campanella: What we've done over the last two years with our capital program and when we've moved.

Speaker Change: Got it I'll leave it there thank you.

Nick Campanella: Couple of $300 million of capital around in a given year. So that's not something that we're overly concerned about at this point in time.

Jeremy Tonet: Thank you Jeremy.

Jeremy Tonet: Thank you.

Speaker Change: Our next question comes from the line of David David Arcaro with Morgan Stanley. Please proceed with your question.

Nick Campanella: As we're talking to legislated legislators and policymakers in Ohio, We see there is a strong desire to move from the current framework to the new framework, we're not seeing a signal from them that they don't want investment in Ohio, and that lends itself to a smooth transition either through.

David Arcaro: Hey, thanks, so much good morning.

Jeremy Tonet: Morning, David.

Jeremy Tonet: I was wondering if you could give a perspective on new Jersey and the recent.

Brian Tierney: Yeah, I can't say at this point, Shahriar, I think they are both moving forward. They've both been voted out of their respective chambers. And how leadership decides to handle that going forward, we still don't have any particular insight into. I think the key provisions of both bills that are of importance to us, things like the multi-year rate cases with forward looking test years are things that are in both. And our focus now is on moving from the current framework that we have that has base rate cases and EPS to the new framework that has the multi-year.

Jeremy Tonet: Commission efforts to look at cost efficiencies and the affordability considerations. There I'm wondering if your latest perspective on what the strategy might be.

Nick Campanella: Raising the caps and the ESP for or some other mechanism. So the signals we are getting.

Jeremy Tonet: The possible to address any affordability concerns in the state.

Nick Campanella: Is not don't invest in Ohio, It's we're changing how we're doing regulation in Ohio, and we've heard from everyone that they expect a smooth transition.

Jeremy Tonet: David are you, referring specifically to the PJM capacity auction.

Jeremy Tonet: That seems to be the.

Speaker Change: The driving factor behind what looked like.

Speaker Change: Specific effort from the New York, New Jersey, The commission to look for cost efficiencies among that utilities, but yes, I think stemming from the increase in the capacity auction pricing.

Brian Tierney: base rate cases with forward-looking test years and trying to make that transition as smoothly as possible.

Speaker Change: So look I think commissions as well as firstenergy are very concerned about the coming price increases associated with capacity auction. It would be one thing if the capacity auction pricing that were facing was bringing new capacity, new dispatch of <unk> capacity to the market.

Speaker Change: Who's more receptive who is less receptive.

Speaker Change: And any color in general you can provide and the parties would be helpful. Yes, So Jeremy we really cant target with any specificity around that but we will say that all of the parties were involved initially we felt that the discussion tone and tenor was productive and constructive and along that vein, we're going to continue that.

Shahriar Pourreza: Great, thanks.

Shahriar Pourreza: And just as a follow up, you know, should the legislation pass as is, and you know, assuming you remain an ESP-4, if the cap isn't unfrozen, how should we think about the timing of your next base rate case? And can you just talk about the different levers you can pull on to offset the potential impact of not having the cap lifted in the near term? Thanks.

Speaker Change: And the customers, we're actually getting some value out of that we don't see that as being the case. So we think that commissions and the company we're going to do everything we can to try and mitigate that impact on our customers. The commission yesterday in New Jersey asked us to go back and.

Speaker Change: Dialog Youll remember during grid Mod to discussions we did file a partial settlement that was ultimately approved and we think Thats an avenue that is open to us in this instance, as well.

Brian Tierney: Thank you for that, Alex. So there are a couple of things that could play out there. One is, of course, we would go back and try and seek to get the cap lifted. If that doesn't happen, we have opportunities to shift CapEx around, both within Ohio and other jurisdictions until we can get in for a new base rate case. And then I anticipate that we'd be going in for a new base rate case under the new framework as early as the first of 2026. And we'd expect rates to be in effect for that as early as 1-1-27.

Speaker Change: Take a look with our instate peers about how we could pull.

Speaker Change: Got it I'll leave it there thank you.

Speaker Change: Postpone the impact of those capacity auction price increases for the next four months for the first four months, we're going to do that and we're going to be as constructive and productive as we can and trying to make that happen.

Jeremy Tonet: Thank you Jeremy.

Jeremy Tonet: Thank you.

Speaker Change: Our next question comes from the line of David David Arcaro with Morgan Stanley. Please proceed with your question.

David Arcaro: Hey, thanks, so much good morning.

Speaker Change: These price increases are real and they have real impact on our customers and we're so concerned about that.

Speaker Change: Good morning, David.

David Arcaro: I was wondering if you could give a perspective on new Jersey and the recent.

Brian Tierney: So a number of levers that we can pull between now and then. We're not giving up on the cap persisting in ESP-4, but we have a number of levers to pull as we get our way into that new framework.

Speaker Change: Again, if it was addressing the problem, we could be supportive, but it's not bringing new capacity to the market.

David Arcaro: Commission efforts to look at cost efficiencies and the affordability considerations. There I'm wondering if your latest perspective on what strategy you might.

Speaker Change: This is what I would say David is you always want to do good things and to the degree you have good things to do more of those if there are things that are harmful stopped doing the things that are harmful. We think a continuation of these extremely high price capacity auctions that don't bring new capacity to the market.

David Arcaro: The possible to address any affordability concerns in the state.

Shahriar Pourreza: Great, thanks. I'll leave it there. Thanks for taking my questions. Thanks, Alan. Thank you.

Speaker Change: David are you, referring specifically to the PJM capacity auction.

Nick Campanella: Our next question comes from the line of Nick Campanella with Barclays. Please proceed with your question. Hey, thanks for taking my questions. I just wanted to follow up quick. Good to see you guys moving forward towards settlement. Is there just any chance that you could deal with ESP in that discussion? Or is that going to be more up to commission interpretation, you think, since we're still waiting on the legislation to be finalized? I was just trying to see if there's a window where we can get more clarity on ESP.

Speaker Change: That seems to be the driving factor behind what looked like a specific effort from the New Jersey, New Jersey to commission to look for cost efficiencies among that utilities, but yes, I think stemming from the increase in the capacity auction pricing.

Speaker Change: Our harmful and that harmful impact should be either mitigated were stopped on a prospective basis.

Speaker Change: Absolutely I appreciate that color.

Speaker Change: Maybe along those same lines how is.

Speaker Change: The conversation evolved we've also got Pennsylvania looking at the same issues this week as well.

Speaker Change: In terms of the future of resource adequacy in the PJM market.

Speaker Change: Bringing new capacity, new dispatcher bowl capacity to the market and the customers, we're actually getting some value out of that we don't see that as being the case. So we think that commissions and the company we're going to do everything we can to try and mitigate that impact on our customers. The commission yesterday in new.

Speaker Change: How are you thinking about the potential solutions or how has that conversation evolved whether it's contracted generation utility owned generation have any options.

Brian Tierney: Yeah, Nick, I don't think it would be in that base rate case settlement. As you know, we have a current active open case for ESP six. And so we would try and handle as much of the base rate case issues as we could in those settlement discussions. And then I think there are the three other ways for things to play out around the ESP. One is if there would be legislation that would direct the commission to have a smooth transition to, if not that, we still think that legislatively they would expect there to be a smooth transition between the current framework and the next one.

Speaker Change: To the surface in terms of getting more likely or more support among the different stakeholders.

Speaker Change: I think something that faces a lot of opposition wherever you you raise it.

Speaker Change: <unk> asked us to go back.

Speaker Change: And take a look with our instate peers about how we could.

Speaker Change: Is the specter of reregulation, putting the genie back in the bottle I don't think Thats, a winter anywhere and I think there are ways that you can address the resource adequacy problem without having to do that certain states have other models that we pointed to that work.

Brian Tierney: And we think the commission would pick up on that and try and make that transition as smoothly as possible. And then, as I discussed earlier in response to a question, if we're unsuccessful in those, I think there are opportunities for us to move CapEx around both within Ohio and in other jurisdictions. And then get in as quickly as possible as we could for a new base rate case under the new framework. So a lot of levers for us to pull, and we'll be pulling all of those as timely as we can and communicating the results of that to the investment community as quickly as possible.

Speaker Change: These price increases are real and they have real impact on our customers and we're so concerned about that.

Speaker Change: For adding new types of generation, New York has done that with nice Serta and neper, using Texas do that with there.

Speaker Change: Again, if it was addressing the problem, we could be supportive, but it's not bringing new capacity to the market.

Speaker Change: Generation loan program, you've seen California do it for certain types of generation that they've added. So I think there are a number of models out there that work I think the only way. These problems are going to be resolved is by the states taking action themselves.

Speaker Change: This is what I would say David is you always wanted to do good things and to the degree you have good things to do more of those if there are things that are harmful stopped doing the things that are harmful. We think a continuation of these extremely high price capacity auctions that don't bring new capacity to the market.

Speaker Change: To address the problems for their own states. So I have recently spoken with Governor Shapiro in Pennsylvania, and applaud his efforts to keep prices lower in the state of Pennsylvania, I see the Governor Murphy in New Jersey has also asked FERC to take action on this and I think its leadership.

Brian Tierney: At the end result on all this, Nick, we're looking at investment between the end of our current base rate period of May 31st of last year and when we get new rates in effect. So if we have to go to a new base rate case under the new framework, there would be very little for the commission to review in time and magnitude. And at the very worst, there would be an incremental 15 months or so on the regulatory lag that we would face, potentially on a reduced amount, given the actions we could take.

Speaker Change: Our harmful and that harmful impact should be either mitigated or stopped on a prospective basis.

Speaker Change: Absolutely I appreciate that color.

Speaker Change: Maybe along those same lines how is.

Speaker Change: The governors in the states that are going to address this problem most directly and I applaud those two governors efforts.

Speaker Change: The conversation evolved we've also got Pennsylvania looking at the same issues this week as well.

Speaker Change: In terms of the future of resource adequacy in the PJM market.

Speaker Change: Okay, great very helpful. Thanks, so much.

David Arcaro: Thank you David.

Speaker Change: How are you thinking about the potential solutions or how has that conversation evolved whether it's contracted generation utility owned generation.

Speaker Change: Thank you. Our next question comes from the line of currently Davenport with Goldman Sachs. Please proceed with your question.

Speaker Change: Have any options.

Nick Campanella: Hey, that's great. I sorry about my confusion there on the on the process. Thanks for the clarifications. Just as it relates to, you're kind of talking about a lot of different levers to, you know, offset what seems to be kind of a shifting environment with this ESP. And you have, you're at the high end of your 25, 25 guidance now, you have this 6 to 8% long term EPS CAGR. So do you still kind of expect, you know, regardless of the outcome, do you expect to be able to offset that, be within the range and be able to kind of grow linearly here at the 26?

Hey, good morning, Thanks, so much for taking the questions maybe.

Speaker Change: Bubble to the surface in terms of getting more likely or more support among the different stakeholders.

Speaker Change: Maybe to start just as you think about the current macro environment and potential for an economic slowdown is there anything that youre seeing or hearing from your industrial customers. In particular that you think could could pose potential risk score is worth watching around that 2% load growth forecast that's embedded in the plan.

Speaker Change: I think something that faces a lot of opposition wherever you you raise it.

Speaker Change: It's great question currently I was just watching on CNBC earlier today, Beth hammack from the Cleveland fed talking about issues.

Brian Tierney: Or how should we kind of think about that with this overhang? Yeah, so we do anticipate being able to offset that. And, and as we've talked about the growth, we're not haven't been talking about linear exactly year to year to year, we've been talking about a compound annual growth rate over the investment horizon in that six to eight percent period, all the while within that six to eight percent. So we're confident about our ability to stay in that range and deliver those results, regardless of outcome around this the base rate case and how the leverage that we could pull on the ES.

Speaker Change: These issues and from a macro standpoint, she said look the tariffs add a fair amount of uncertainty.

Speaker Change: We're adding new types of generation, New York has done that with nice Serta and neper, you're seeing Texas do that with there.

Speaker Change: To what's going on in the economy and that makes it difficult for people to make incremental investments and know that those investments are going to be either supported by tariffs or undercut by tariffs. So we're seeing that from a macro standpoint across our across our footprint, we're not seeing a huge impact yet what we have.

Speaker Change: Generation loan program, you've seen California do it for certain types of generation that they've added. So I think there are a number of models out there that work I think the only way. These problems are going to be a result is by the states taking action themselves.

Speaker Change: Seen is some steel manufacturers have been slowing.

Speaker Change: To address the problems for their own states. So I have recently spoken with Governor Shapiro in Pennsylvania, and applaud his efforts to keep prices lower in the state of Pennsylvania, I see that Governor Murphy in New Jersey has also asked FERC to take action on this and I think its leadership by the.

Speaker Change: Some of their production related to automotive demand that has come down somewhat in the near term and we're watching that would also remind you that industrial load is a much smaller portion of our margin than than residential is and we have generally.

Brian Tierney: Thank you, Brian. Thank you.

Jeremy Tonet: Our next question comes from the line of Jeremy Tonet with JPMorgan.

Jeremy Tonet: Please proceed with your Hi, good morning. Good morning, Jeremy.

Speaker Change: The governors in the states that are going to address this problem most directly and I applaud those two governors efforts.

Speaker Change: Demand type pricing on the industrial load. So we don't anticipate significant impact from an income standpoint in the near term associated with the near term uncertainty that we're dealing with but the quicker. There is certainty from an investment cycle standpoint, I think the quicker, we'll be able to see people be able to.

Brian Tierney: Maybe picking up on the last question, if I could, and appreciate the sensitive nature of it all, but is there any other color you could provide to frame, I guess, what you'd be looking to solve for if things kind of progress, you know, legislation as it is right now, versus the size of the levers that you have? Just trying to get a sense of how, you know, manageable, easy or not easy it is to kind of work around what the, you know, these items. Yeah, so remember, we're just talking about the investment that we've made and are going to make since May 31st of 2024.

Speaker Change: Okay, great very helpful. Thanks, so much thank.

David Arcaro: Thank you David.

Speaker Change: Thank you. Our next question comes from the line of Carly Davenport with Goldman Sachs. Please proceed with your question.

Speaker Change: Make those investment decisions and get on with investing in their business whatever the answer is from a tariff standpoint.

Carly Davenport: Hey, good morning, Thanks, so much for taking the questions maybe.

Carly Davenport: Maybe to start just as you think about the current macro environment and potential for an economic slowdown is there anything that youre seeing or hearing from your industrial customers. In particular that you think could could pose potential reservoir is worth watching around that 2% load growth forecast that's embedded in the plan.

Speaker Change: Great. That's helpful. Thank you and then maybe just a high level question on the earnings guidance targeting the top half of the 25 range and you mentioned in the slides cash flow tracking above plan as well to start the year can you just talk a little bit about what's driving that to give you confidence at this point in the year to sort of target the top end of the range.

Brian Tierney: So it's a limited universe in a limited time frame. And so we had made assumptions about what would happen with ESP-6. We've now modified those, not anticipating that would go forward, assuming that we will be in ESP-4. And then we'll be modifying how we do this going forward. So it's a modest and manageable amount of dollars in a modest and manageable amount of time. Jeremy, I would say, I mean, we would be looking to move capital around. We have plenty of opportunities to do that. You know, we have the GridMod 2 CapEx that we could accelerate into 2026.

Carly Davenport: It's great question clearly I was just watching on CNBC earlier today, Beth hammack from the Cleveland fed talking about issues.

John So: Yes. Currently this is John So I think we've laid out our base O&M plan for the year.

Carly Davenport: These issues and from a macro standpoint, she said look the tariffs add a fair amount of uncertainty.

John So: We are targeting lower O&M performance relative to that target we have teams in place and leadership in place that are driving towards.

Carly Davenport: To what's going on in the economy and that makes it difficult for people to make incremental investments and know that those investments are going to be either supported by tariffs or undercut by tariff. So we're seeing that from a macro standpoint across our across our footprint, we're not seeing a huge impact yet what we have.

John So: A slightly lower number to give us flexibility.

John So: Around our operating costs.

John So: And so that's what the.

John So: The team is working on and that's what's going to give us the flexibility as we think about targeting the upper half of the range.

Carly Davenport: Seen is some steel manufacturers have been slowing.

Brian Tierney: We have the PAL tip where we could move some of the Ohio-based capital into that CapEx program. We have opportunities in Maryland and West Virginia with transmission CapEx. So we have a lot of opportunities to redeploy capital if and when we need to do that. And if you go back and look at the history of what we've done over the last two years with our capital program, I mean, we've moved, you know, a couple, $300 million of capital around in a given year. So that's not something that we're overly concerned about at this point in time.

John So: Great. Thanks, so much for the color.

Some of their production related to automotive demand that has come down somewhat in the near term and we're watching that would also remind you that industrial load is a much smaller portion of our margin than than residential is and we have generally.

Carla: Thank you Carla.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of the <unk> with UBS. Please proceed with your question.

Speaker Change: Hi, good morning.

Bill: Good morning Bill.

Bill: Just on West Virginia can you just remind us what's in the plan the base capital plan and then what does the IRB represent.

Carly Davenport: Demand type pricing on the industrial load. So we don't anticipate significant impact from an income standpoint in the near term associated with the near term uncertainty that we're dealing with but the quicker. There is certainty from an investment cycle standpoint, I think the quicker, we'll be able to see people be able to.

Bill: No.

Bill: I guess as a potential upside.

Bill: And how do you manage the affordability of some of the options that you may propose.

Speaker Change: Yes, so there's a lot in play right now in West Virginia, Phil.

Brian Tierney: As we're talking to legislatures and policymakers in Ohio, we see there is a strong desire to move from the current framework to the new framework. We're not seeing a signal from them that they don't want investment in Ohio. And that lends itself to a smooth transition, either through raising the caps in the ESP-4 or some other mechanism. So the signals we aren't getting is not don't invest in Ohio. It's we're changing how we're doing regulation in Ohio. And we've heard from everyone that they expect a smooth transition.

Speaker Change: What is in the current plan is current investment in T&D.

Carly Davenport: Make those investment decisions and get on with investing in their business whatever the answer is from a tariff standpoint.

Speaker Change: And investment for the current coal fired power plants that we have Fort Martin and Harrison just so people understand and there was people misreported not let the investment community, but the general press Misreported on my comments in the last call when we put in place the investments for <unk>.

Carly Davenport: Great. That's helpful. Thank you and then maybe just a high level question on the earnings guidance targeting the top half of the 25 range and you mentioned in the slides cash flow tracking above plan as well to start the year can you just talk a little bit about what's driving that to give you confidence at this point in the year to sort of target at the top end of the range.

Speaker Change: Two plants, we had to put a terminal date on those plants. When we made those investments in filings with the commission for Fort Martin that was 2035 and for Harrison that was 2040.

John: Yeah. Carly this is John So I think we've laid out our base O&M plan for the year.

John: We are targeting lower O&M performance relative to that target we have teams in place and leadership in place that are driving towards.

Jeremy Tonet: Got it, that's very helpful there.

Speaker Change: Investments in keeping those plans running through that period is in the current.

Jeremy Tonet: And then kind of shifting gears towards settlement talks, going back there. Again, appreciate the sensitive nature to it all.

Speaker Change: Capex plan.

Brian Tierney: But just wondering if you can frame it all, I guess, which parties are involved in the settlement conversations, such as staff, or just who's more receptive, who's less receptive, and any color in general you could provide in the parties would be helpful. Yes. So Jeremy, we really can't talk it with any specificity around that. But we'll say that all the parties were involved. Initially, we felt that the discussion tone and tenor was productive and constructive. And along that vein, we're going to continue the dialogue. You'll remember, during GRIDMOD 2 discussions, we did file a partial settlement that was ultimately approved.

Speaker Change: What would be incremental to that would be the result of the ERP that we're putting together now and the parallel plans that we would put in place to add combined cycle generation for the state.

John: A slightly lower number to give us flexibility.

John: Around our operating costs.

John: And so that's what the.

John: The team is working on and that's what's going to give us the flexibility as we think about targeting the upper half of the range.

Speaker Change: That the range of what that could be in the scenarios is very wide. So my proposal would be start with a combined cycle that would be about 1000 megawatts that would be a 1 billion plus dollars and then as you firm up plans for what would happen from an environmental standpoint from a cost standpoint.

John: Great. Thanks, so much for the color.

Carla: Thank you Carla.

John: Thank you.

John: Our next question comes from the line of the <unk> with UBS. Please proceed with your question.

Speaker Change: Hi, good morning.

Speaker Change: Good morning Bill.

Speaker Change: A.

Speaker Change: Just on West Virginia can you just remind us what's in the plan the base capital plan and then what does the IRB represent.

Speaker Change: Rate standpoint, you could firm up the plans is what would happen with Fort Martin and Harrison and you could add incremental plans that looked like the first combined cycle that we added going forward and I could see us adding between one and four combined cycles of about 1000 megawatts that would.

Jeremy Tonet: And we think that's an avenue that's open to us in this instance as well. Got it.

Speaker Change: No.

Speaker Change: I guess as a potential upside.

Jeremy Tonet: I'll leave it there. Thank you. Thank you, Jeremy.

Speaker Change: And how do you manage the affordability of some of the options that you may propose.

Speaker Change: Yes, so there's a lot in play right now in West Virginia, Phil.

David Arcaro: Our next question comes from the line of David David Arcaro with Morgan Stanley. Please proceed with your question. Hey, thanks so much. Morning, David. I wanted to give a perspective on New Jersey and the recent commission efforts to look at Affordability considerations there. Wondering your latest perspective on what. be possible to address any affordability.

Speaker Change: What is in the current plan is current investment in T&D.

Speaker Change: Could ultimately replace Fort Martin and Harrison or be incremental to them and bring incremental economic development to the state of West Virginia. It would just add the flexibility that west Virginia would have in an uncertain environment and allow them to attract things like data center.

Speaker Change: <unk> transformer manufacturers and the like who are desirous to two site in West Virginia.

Speaker Change: Okay. That's clear thank you.

David Arcaro: David, are you referring specifically to the PJM capacity auction? That seems to be the driving factor behind what looked like a, you know, a specific effort from the New Jersey. for cost efficiencies among the utilities. But yeah, I think stemming from. So, look, I think commissions, as well as FirstEnergy, are very concerned about the coming price increases associated with the capacity auction. It would be one thing if the capacity auction pricing that we're facing was bringing new capacity, new dispatchable capacity to the market, and the customers were actually getting some value out of that. We don't see that as being the case.

Speaker Change: And then just shifting gears on the we're making some progress here on the co location docket at FERC.

Speaker Change: Investments in keeping those plans running through that period is in the current.

Speaker Change: We've had some changes.

Speaker Change: Within the commission. This week. So I guess what are you expecting in terms of timing now that the reply comments had been filed.

Speaker Change: Capex plan.

Speaker Change: What would be incremental to that would be the result of the ERP that we're putting together now.

Speaker Change: From FERC and do you have any sense of what form that may take is it just going to be an order are there.

And the parallel plans that we would put in place to add combined cycle generation for this state.

Speaker Change: And when do you think we may actually have the clarity from.

Speaker Change: The commission that parties, both on the generation side and transmission side.

Speaker Change: It can move forward.

Speaker Change: There are so many different types of co location and when people talk about Kuwait co location. They think they are using co location to mean, one thing and it really means many things to many different people. There's co co location, where you take existing capacity out of the capital markets and I think that would be a difficult thing to do.

Speaker Change: Then as you firm up plans for what would happen from an environmental standpoint from a cost standpoint from a.

Brian Tierney: So we think that commissions and the company are going to do everything that we can to try and mitigate that impact on our customers. The commission yesterday in New Jersey asked us to go back. and take a look with our in-state peers about how we could postpone the impact of those capacity auction price increases for the next four months. For the first four months, we're going to do that and we're going to be as constructive and productive as we can in trying to make that happen. These price increases are real and they have real impact on our customers, and we're so concerned about that.

Speaker Change: Great standpoint, you could firm up the plans is what would happen with Fort Martin Harrison.

Speaker Change: And then there is co location where people add incremental.

Speaker Change: And you could add incremental plans that looked like the first combined cycle that we added going forward and I could see us adding between one and four combined cycles of about 1000 megawatts that would could ultimately replace fort Martin and Harrison or be incremental to them and.

Speaker Change: Capacity of the markets like what you are seeing a three mile Island.

Speaker Change: And palisades, where they're bringing incremental capacity to the market and we'd like to locate data centers and other loads next to that and I think the pathway forward for that second type of co location is going to be much smoother than than for the former.

Speaker Change: Bring incremental economic development to the state of West Virginia. It would just add the flexibility that west Virginia would have in an uncertain environment and allow them to attract things like data centers transformer manufacturers and the like who are desirous to two site in West Virginia.

Speaker Change: Okay.

Speaker Change: To your point, we're going to have to wait and see how the FERC will order on those things, but I think.

Brian Tierney: Again, if it was addressing the problem, we could be supportive, but it's not bringing new capacity to the market.

Speaker Change: Net new incremental capacity with co location is going to be an easier path, but taking existing capacity out of the market.

Brian Tierney: This is what I would say, David, is you always want to do good things. And to the degree you have good things to do, do more of those. If there are things that are harmful, stop doing the things that are harmful. We think a continuation of these extremely high price capacity auctions that don't bring new capacity to the market are harmful, and that harmful impact should be either mitigated or stopped on a prospective basis. Absolutely, I appreciate that color.

Speaker Change: Okay.

Speaker Change: As far as the.

Speaker Change: Some timing around clarity from FERC to mean Christian.

Speaker Change: Okay. That's clear thank you.

Speaker Change: Kushner, Christina Chairman, Chris season cleared us to move quickly, but I mean do you have any sense of is that in the coming months or is this could spill into latter part of the year.

Speaker Change: And then just shifting gears on the we're making some progress here on the co location docket at FERC.

Speaker Change: <unk> had some changes.

Speaker Change: I would say the coming months I know that <unk> is having their technical conference on that in June I look forward.

Speaker Change: Within the commission. This week. So I guess what are you expecting in terms of timing now that the reply comments had been filed.

Speaker Change: Speaking at that and sharing our views on that but I think this will be a a months long process for it to play out but I don't think it has to spill into next year.

Speaker Change: From from FERC and do you have any sense of what form that may take is it just going to be an order are there.

Brian Tierney: And maybe along those same lines, how is the conversation evolved? We've also got Pennsylvania, you know, looking Well, in terms of the future of resource adequacy in the PJM market. How are you thinking about the... Transcript by Rev.com Page of Page 10 of 10 bubble to the surface in terms of getting more likely or more support. Look, I think something that faces a lot of opposition, wherever you raise it, is a specter of re-regulation, putting the genie back in the bottle. I don't think that's a winner anywhere, and I think there are ways that you can address the resource adequacy problem without having to do that.

Speaker Change: And when do you think we may actually have the clarity.

Speaker Change: Okay alright, thank you.

Speaker Change: <unk>.

Speaker Change: From the commission that.

Bill: Thanks Bill.

Speaker Change: Parties, both on the generation side on the transmission side can.

Speaker Change: Yeah.

Speaker Change: Thank you. Our next question comes from the line of Andrew Weisel with Scotiabank. Please proceed with your question.

Speaker Change: Can move forward.

Speaker Change: There are so many different types of co location and when people talk about Kuwait co location. They think they are using co location to mean, one thing and it really means many things to many different people. There's colo co location, where you take existing capacity out of the capital markets and I think that would be a difficult thing to do.

Andrew Weisel: Hey, Thanks, good morning, everybody.

Speaker Change: First a question on Ohio.

Speaker Change: Hi.

Speaker Change: I know you can't get too specific on settlement talks but my question is just on timing I know hearings begin on may 5th and I know it would be great to get a settlement done before that is possible. It's only 10 or 11 days from now my question is that the legislation is expected to be sent to the governor in the May June timeframe does one need to happen.

Speaker Change: And then there's co location where people add incremental.

Speaker Change: Passenger you the markets like what Youre seeing at three mile Island, and Palisades, where they're bringing incremental capacity to the market and we'd like to locate data centers and other loads next to that and I think the pathway forward for that second type of co location is going to be much smoother than than for the former.

Speaker Change: Higher to the other just one depend on the other end could a settlement happened before the legislation becomes official.

Brian Tierney: Certain states have other models that we pointed to that work for adding new types of generation. New York has done that with NYSERDA and NYPA. You've seen Texas do that with their Generation Load program. You've seen California do it for certain types of generation that they've added. So I think there are a number of models out there that work. I think the only way these problems are going to be resolved is by the states taking action themselves to address the problems for their own states. So I've recently spoken with Governor Shapiro in Pennsylvania and applaud his efforts to keep prices lower in the state of Pennsylvania.

Andrew Weisel: So thats a good question Andrew I don't think those two things are going to be related timing wise.

Andrew Weisel: The new legislation will go forward on its own timeline and the base rate case will go forward on its own timeline I think the fact that the new legislation contemplates a base rate case and those are the issues that we're going to be handling in the hearing and.

Speaker Change: And to your point, we're going to have to wait and see how the FERC will order on those things, but I think.

Speaker Change: Net new incremental capacity with co location is going to be an easier path, but taking existing capacity out of the market.

Speaker Change: Okay, but I mean as far as the <unk>.

Andrew Weisel: The adjudicated case, if it goes that way and settlement if it goes that way I think would be fairly easy for those things to move forward on parallel paths.

Speaker Change: Some timing around clarity from FERC.

Speaker Change: Commissioner Kristine, our chairman Christine has been clear to move quickly, but I mean do you have any sense of is that in the coming months or is this could spill into latter part of the year.

Andrew Weisel: And the timing of one doesn't have to impact the other.

Andrew Weisel: Okay great.

Speaker Change: I would say the coming months I know that work is having their technical conference on that in June I look forward.

Andrew Weisel: Our next question is industrial sales trends.

Andrew Weisel: A little bit about this earlier, but I noticed in the quarter. The industrial group was down 3% didn't really if I look back over the past several quarters. It's been a downward trend anything you can talk to either looking backward or I'd also be interested in anything you've been seeing over the past few weeks and deliberation day obviously.

Speaker Change: Speaking at that and sharing our views on that but I think this will be a months long process for it to play out but I don't think it has to spill into next year.

Brian Tierney: I see that Governor Murphy in New Jersey has also asked FERC to take action on this. And I think it's leadership by the governors in the states that are going to address this problem most directly, and I applaud those two governors' efforts.

Speaker Change: Okay alright, thank you.

Bill: Thanks Bill.

Speaker Change: Yeah.

Speaker Change: Thank you. Our next question comes from the line of Andrew Weisel with Scotiabank. Please proceed with your question.

David Arcaro: Great. Very helpful. Thank you, David. Thank you.

Andrew Weisel: Spin a little chaotic in general over the past few weeks, but any kind of trends you could point to overall would be very helpful. Thanks.

Carly Davenport: Our next question comes from the line of Carly Davenport with Goldman Sachs. Please proceed with your question. Hey, good morning. Thanks so much for taking the questions. Maybe to start just as you think about the current macro environment and you know, potential for an economic slowdown. Is there anything that you're seeing or hearing from your industrial customers in particular that you think could could pose potential risk or is worth watching around that 2% low growth forecast that's embedded in the plan?

Andrew Weisel: Hey, Thanks, good morning, everybody.

Andrew Weisel: Andrew.

Speaker Change: Particular, the last two quarters have been impacted by the slowdown in the steel sector as Brian mentioned earlier.

Speaker Change: First a question on Ohio.

Andrew Weisel: Hi.

Speaker Change: We started to see that in the third quarter of last year and so we're continuing to see that that is kind of tied to the automotive sector. I mean, if you're if you adjusted the year over year comp for leap year that extra day that 'twenty forehead, and industrial is down about one 6% and thats primarily.

Carly Davenport: It's a great question, Carly. I was just watching on CNBC earlier today, Beth Hammack from the Cleveland Fed talking about issues, these issues. And from a macro standpoint, she's saying, look, the tariffs add a fair amount of uncertainty to what's going on in the economy. And that makes it difficult for people to make incremental investments and know that those investments are going to be either supported by tariffs or undercut by tariffs. So we're seeing that from a macro standpoint. Across our footprint, we're not seeing a huge impact yet. What we have seen is some steel manufacturers have been slowing some of their production related to automotive demand that has come down somewhat in the near term.

Speaker Change: To the other just one depend on the other and could a settlement happened before the legislation becomes official so.

Speaker Change: All steel all of the data centers that we had in our plan.

Andrew Weisel: That's a good question Andrew.

Andrew Weisel: Those two things are going to be related timing wise.

Speaker Change: For 2020.

Speaker Change: Five are still on track, maybe a little bit delayed in terms of construction.

Speaker Change: And so some of that might push out a little bit but.

Speaker Change: They are still on track there is still coming online and so we anticipate some of the growth that we had anticipated in that industrial class to be more towards the back end of 2025.

Andrew Weisel: I think would be fairly easy for those things to move forward on parallel paths.

Speaker Change: Okay. Thanks, Good reminder, on the leap day easy to forget that one if I could just squeeze one clarifying thing in the PJM transmission stuff for Valley link and the 300.

Andrew Weisel: And the timing of one doesn't have to impact the other.

Okay great.

Speaker Change: 800 million altogether for your company just remind me was that already included in the Capex plan or is that incremental.

Speaker Change: Next question is industrial sales trends, you talked a little bit about this earlier, but I noticed in the quarter. The industrial group was down 3% and really if I look back over the past several quarters. It's been a downward trend anything you can talk to either looking backward or I'd also be interested in anything you've been seeing over the past few weeks.

Brian Tierney: And we're watching that. I would also remind you that industrial load is a much smaller portion of our margin than residential is. And we have generally demand type pricing on the industrial load. So we don't anticipate significant impact from an income standpoint in the near term associated with the near term uncertainty that we're dealing with.

Speaker Change: Yes, so a couple of things there Andrew.

Speaker Change: The component that's associated with Valley link is not in the Capex plan, because thats an investment that will be handled on the equity method.

Speaker Change: $300 million is included in the Capex plan.

<unk> since Liberation day, obviously.

Speaker Change: Yeah.

Speaker Change: It's been a little chaotic in general over the past few weeks, but any kind of trends you could point to overall would be very helpful. Thanks.

Speaker Change: Okay, I guess I should have said is that included in your financial plan.

John Taylor: But the quicker there's certainty from an investment cycle standpoint, I think the quicker we'll be able to see people be able to make those investment decisions and get on with investing in their business, whatever the answer is from a tariff. Great, that's helpful. Thank you.

Speaker Change: Yes.

Speaker Change: Okay terrific. Thank you.

Speaker Change: Thank you Andrew.

Speaker Change: In particular, the last two quarters have been impacted.

Speaker Change: Thank you.

Speaker Change: By the slowdown in the steel sector as Brian mentioned earlier.

Speaker Change: Our next question comes from the line of Anthony <unk> with Mizuho Securities. Please proceed with your question.

Speaker Change: We started to see that in the third quarter of last year and so we're continuing to see that that's kind of tied to the automotive sector. I mean, if you adjusted the year over year comp for leap year that extra day that 24 had in it.

John Taylor: And then maybe just a high level question on the earnings guidance, you know, targeting the top half of the 25 range. And you mentioned in the slides cash flow, tracking above plan as well to start the year. Can you just talk a little bit about, you know, what's driving that to give you confidence at this point in the year to sort of target the top end of the range?

Speaker Change: Hey, Hey, good morning team I wanted to just two quick ones I Wonder if I follow up from <unk> question earlier, I think it was more towards the drivers that get you to the high end. This year is that something that could bacon.

Speaker Change: Post 'twenty five and maybe carry that through my forecast model.

Speaker Change: Industrial is down about one 6% and Thats, primarily all steel all the data centers that we had in our plan.

Speaker Change: Well, yes, I mean listen we're driving towards more efficient.

John Taylor: Yeah, Carly, this is John. So I think, you know, we've laid out our base O&M plan for the year. We are targeting, you know, lower O&M performance relative to that target. We have teams in place and leadership in place that are driving towards a slightly lower number to give us flexibility around our operating costs. And so that's what the team is working on. And that's what's going to give us the flexibility as we think about targeting the upper half of the range. Great, thanks so much for the color. Thank you, Carly. Thank you.

Speaker Change: O&M, we're trying to build in some flexibility and of the plan we have a team of people working at that.

Speaker Change: For 2020.

Speaker Change: Five are still on track, maybe a little bit delayed in terms of construction and.

Speaker Change: And if that were if were.

Speaker Change: And so some of that might push out a little bit but.

Speaker Change: <unk> successful in executing that which I think we will be.

Speaker Change: We will continue that momentum into 2026 and beyond.

Speaker Change: So that's kind of our target in terms of what we are aiming for in terms of our company and I feel really good about what I've seen so far and the momentum that we have for this year Anthony some of the some of the tailwind that we've seen from this year associated with.

Okay. Thanks, Good reminder, on the leap day easy to forget that one if I could just squeeze one clarifying thing into PJM transmission stuff for valley link and the 300.

Speaker Change: Making investments getting that converted into.

Speaker Change: 800 million altogether for your company just remind me was that already included in the Capex plan or is that incremental.

Bill Apicelli: Our next question comes from the line of Bill Apicelli with UBS. Please proceed with your question. Hi, good morning. Morning, Bill.

Speaker Change: Base rates through rate proceedings, as well as the O&M discipline that we've that we've had create the tailwind for 2025 and we anticipate.

Speaker Change: Yes, so a couple of things there Andrew.

Speaker Change: The component that's associated with Valley link is not in the Capex plan, because that's an investment that will be handled on the equity method to $300 million is included in the Capex plan.

Speaker Change: Being able to create those tail winds in years beyond this one.

Bill Apicelli: Just on West Virginia, can you just remind us what's in the plan, the base capital plan? And then what does the IRP represent? You know, I guess there's a potential upside. And then how do you manage the affordability of some of the options that you may propose? Yeah, so there's a lot in play right now in West Virginia, Bill. What is in the current plan is current investment in T&D and investment for the current coal fire power plants that we have, Fort Martin and Harrison. Just so people understand, and there was people misreported, not the investment community, but the general press misreported on my comments in the last call.

Speaker Change: Great and then.

Speaker Change: Just specific to Ohio, I believe and that the current rate case that staff was against maybe an extension of this settlement window.

Andrew Weisel: Okay, I guess I should have said is that included in your financial plan.

Speaker Change: I guess, one is that accurate and is that I mean can I interpret that as staff is more bias towards a litigated decision right. That's an incorrect created situations.

Speaker Change: Yes.

Speaker Change: Okay terrific. Thank you.

Speaker Change: Thank you Andrew.

Speaker Change: Thank you.

Speaker Change: I would read it as the staff wants to move the case forward expeditiously remember this is a case that we filed over a year ago now that's not true.

Speaker Change: Our next question comes from the line of Anthony <unk> with Mizuho Securities. Please proceed with your question.

Speaker Change: Hey, Hey, good morning, I wanted to just two quick ones I Wonder if I follow up from <unk> question earlier, I think it was more towards the drivers that get you to the high end. This year is that something I can bacon.

Speaker Change: In May of 2020 for I guess, so a long time ago.

Speaker Change: If the staff would like to move expeditiously on this and the commission would we're fully supportive of that.

Brian Tierney: When we put in place the investments for ELG in those two plants, we had to put a terminal date on those plants when we made those investments and filings with the commission. For Fort Martin, that was 2035, and for Harrison, that was 2040. Investments in keeping those plans running through that period is in the current CAPEX plan. What would be incremental to that would be the result of the IRP that we're putting together now and the parallel plans that we would put in place to add combined cycle generation for the state. That the range of what that could be in the scenarios is very wide.

Speaker Change: <unk> 25, and maybe carrying that through my forecast model.

Speaker Change: Great. Thanks for taking my questions.

Speaker Change: Thank you Anthony.

Speaker Change: Well, yes, I mean listen we're driving towards more efficient.

Speaker Change: Thank you we have reached the end of our question and answer session and ladies and gentlemen. This does conclude today's teleconference. Webcast. You may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation.

Speaker Change: O&M.

Speaker Change: We're trying to build in some flexibility and of the plan. We have a team of people working at that and if that were if were.

Speaker Change: We're successful in executing that which I think we will be.

Speaker Change: We will continue that momentum into 2026 and beyond.

Speaker Change: So thats kind of our target in terms of what we are aiming for in terms of our company and I feel really good about what I've seen so far and the momentum that we have for this year.

Speaker Change: Anthony some of the some of the tailwind that we've seen from this year associated with.

Brian Tierney: So my proposal would be start with a combined cycle that would be about a thousand megawatts. That would be a billion plus dollars. And then as you firm up plans for what would happen from an environmental standpoint, from a cost standpoint, from a. rate standpoint, you could firm up the plans is what what would happen with Fort Martin and Harrison. And you could add incremental plans that look like the first combined cycle that we added going forward. And I could see us adding between one and four combined cycles of about 1000 megawatts that would could ultimately replace Fort Martin and Harrison, or be incremental to them and bring incremental economic development to the state of West Virginia, it would just add the flexibility that West Virginia would have in an uncertain environment, and allow them to attract things like data centers, transformer manufacturers and the like, who are desirous to to site in West Virginia.

Speaker Change: Making investments getting that converted into.

Speaker Change: Base rates through rate proceedings, as well as the O&M discipline that we've that we've had create the tailwind for 2025 and we anticipate.

Speaker Change: Being able to create those tail winds in years beyond this one.

Speaker Change: Great and then just specific to Ohio I believe in the current rate case that staff was against maybe an extension of the settlement window.

Speaker Change: I guess, one is that accurate and does that mean can I interpret that as staff is more bias towards a litigated decision right that's an incorrect rate situations.

Speaker Change: I would read it as the staff wants to move the case forward expeditiously remember this is a case that we filed over a year ago now that's not true.

Speaker Change: In May of 2020 for I guess, so a long time ago and if the staff would like to move expeditiously on this and the commission would we're fully supportive of that.

Speaker Change: Great. Thanks for taking my questions.

Nick Campanella: Thank you Anthony.

Bill Apicelli: OK, no, that's clear. Thank you.

Bill Apicelli: And then just shifting gears on the we're making some progress here on the co-location docket at FERC. We've had some changes within the commission this week. So I guess what do you expect in terms of timing now that the reply comments have been filed from from FERC? And do you have any sense of what form that may take? Is that just going to be an order? Or are there you know, and when do you think we may actually have the clarity from from the commission that parties both generation side and transition side can move forward?

Nick Campanella: Okay.

Nick Campanella: [music].

Brian Tierney: You know, Bill, there are so many different types of co-location. And when people talk about co-location, they think they're using co-location to mean one thing, and it really means many things to many different people. There's co-location where you take existing capacity out of the capital markets. And I think that would be a difficult thing to do. And then there's co-location where people add incremental capacity to the markets, like what you're seeing at Three Mile Island and Palisades, where they're bringing incremental capacity to the market and would like to locate data centers and other loads next to that.

Brian Tierney: And I think the pathway forward for that second type of co-location is going to be much smoother than than for the former. And to your point, we're going to have to wait and see how the FERC will order on those things. But I think net new incremental capacity with co-location is going to be an easier path than taking existing capacity out. Okay, and but I mean, as far as the Some timing around clarity from FERC. I mean, Commissioner Christie or Chairman Christie has been clear to move quickly. But I mean, do you have any sense of, is that in the coming months or is that this could spill into the latter part of the year?

Brian Tierney: I would say the coming months.

Bill Apicelli: I know that FERC is having their technical conference on that in June. I look forward to speaking at that and sharing our views on that. But I think this will be a month's long process for it to play out. But I don't think it has to spill into next year. Okay. All right. Thank you. Thanks, Bill.

Andrew Weisel: Thank you. Our next question comes in the line of Andrew Weisel with Scottsdale Scorchit Bank. Please proceed with your question. Hey, thanks. Good morning, everybody.

Andrew Weisel: First, a question on Ohio. Hi. I know you can't get too specific on settlement talks, but my question is just on timing. I know hearings begin on May 5th, and I know it'd be great to get a settlement done before that if possible. That's only 10, 11 days from now. My question is that the legislation is expected to be sent to the governor in the May-June timeframe. Does one need to happen prior to the other? Does one depend on the other? And could a settlement happen before the legislation becomes official? That's a good question, Andrew.

Brian Tierney: I don't think those two things are going to be related timing-wise. I think the new legislation will go forward on its own timeline and the base rate case will go forward on its own timeline.

Brian Tierney: I think the fact that the new legislation contemplates a base rate case and those are the issues that we're going to be handling in the hearing, in the adjudicated case, if it goes that way, in settlement, if it goes that way, I think would be fairly easy for those things to move forward on parallel paths and the timing of one doesn't have to impact the other.

Andrew Weisel: Okay, great.

Andrew Weisel: Our next question is industrial sales trends. You talked a little bit about this earlier, but I noticed in the quarter, the industrial group was down 3%. And really, if I look back over the past several quarters, it's been a downward trend. Anything you can talk to, either looking backward, or I'd also be interested in anything you've been seeing over the past few weeks since Liberation Day, obviously, it's been a little chaotic in general over the past few weeks, but any kind of trends you could point to overall would be very helpful. Thanks. Data centers in particular.

John Taylor: Yeah, the last two quarters have been impacted by the slowdown in the steel sector, as Brian mentioned earlier. We started to see that in the third quarter of last year, and so we're continuing to see that. That's kind of tied to the automotive sector. I mean, if you adjusted the year-over-year comp for leap year, that extra day that 24 had in it, industrial is down about 1.6%. Okay, thanks. Good reminder on the leap day. Easy to forget that one.

John Taylor: If I could just squeeze one clarifying thing in, the PJM transmission stuff for ValleyLink and the $300,000,000, I guess it was $800,000,000 altogether for your company. Just remind me, was that already included in the CapEx plan, or is that included? Yeah, so a couple of things there, Andrew. The component that's associated with ValleyLink is not in the CapEx plan, because that's an investment that will be handled on the equity method. The $300 million is included in the CapEx Okay, I guess I should have said, is that included in your financial plan? Yes.

John Taylor: Okay, terrific. Thank you.

Anthony Crowdell: Our next question comes from the line of Anthony Crowdell with Mizzou Home Securities. Please proceed with your question. Hey, hey, good morning, team. I wanted just two quick ones. One, if I follow up from Carly's question earlier, I think it was more towards the drivers that get you to the high end this year. Is that something I could bake in post 25 and maybe carry that through my forecast model? Well, yeah, I mean, listen, we're driving towards more efficient O&M. We're trying to build in some flexibility into the plan. We have a team of people working at that.

John Taylor: And if that were, you know, if we're successful in executing that, which I think we will be, we'll continue that momentum into 2026 and beyond. So that's kind of our target in terms of what we are aiming for in terms of a company. And I feel really good about what I've seen so far and the momentum that we have for this year. Anthony, some of the tailwinds that we've seen from this year associated with making investments, getting that converted into base rates through rate proceedings, as well as the O&M discipline that we've had, create the tailwind for 2025.

Brian Tierney: And we anticipate being able to create those tailwinds in years beyond this.

Brian Tierney: Great. And then, just specific to Ohio, I believe in the current rate case that staff was against maybe an extension of the settlement window. I guess, one, is that accurate? And does that mean, can I interpret that as staff is more biased towards a litigated decision or that's an incorrect rate of the situation? Yeah, I'd read it as the staff wants to move the case forward expeditiously. Remember, this is a case that we filed over a year ago now, but that's not true. In in May of 2024, I guess. So a long time ago, and if the staff would like to move expeditiously on this and the commission would, we're fully supportive of that.

Anthony Crowdell: Great, thanks for taking my question. Thank you.

Unknown Executive: We have reached the end of our question and answer session, and ladies and gentlemen, this does conclude today's teleconference webcast. You may disconnect your lines at this time and have a wonderful day.

Unknown Executive: We thank you for your participation.

Q1 2025 FirstEnergy Corp Earnings Call

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