FE 2022 Annual Report

For the Years Ended December 31, (In millions) 2022 2021 2020 Net income (loss) Regulated Distribution $ 957 $ 1,288 $ 959 Regulated Transmission 394 408 464 Corporate/Other (912) (413) (344) Reconciling Adjustments — — — Total net income (loss) $ 439 $ 1,283 $ 1,079 Income attributable to noncontrolling interest Regulated Transmission $ 33 $ — $ — Total income attributable to noncontrolling interest $ 33 $ — $ — Earnings attributable to FE Regulated Distribution $ 957 $ 1,288 $ 959 Regulated Transmission 361 408 464 Corporate/Other (912) (413) (344) Reconciling Adjustments — — — Total earnings attributable to FE $ 406 $ 1,283 $ 1,079 Property additions Regulated Distribution $ 1,513 $ 1,395 $ 1,514 Regulated Transmission 1,192 958 1,067 Corporate/Other 51 92 76 Reconciling Adjustments — — — Total property additions $ 2,756 $ 2,445 $ 2,657 As of December 31, (In millions) 2022 2021 Assets Regulated Distribution $ 31,749 $ 30,812 Regulated Transmission 13,835 13,237 Corporate/Other 524 1,383 Reconciling Adjustments — — Total assets $ 46,108 $ 45,432 Goodwill Regulated Distribution $ 5,004 $ 5,004 Regulated Transmission 614 614 Corporate/Other — — Reconciling Adjustments — — Total goodwill $ 5,618 $ 5,618 15. DISCONTINUED OPERATIONS On March 31, 2018, the FES Debtors announced that, in order to facilitate an orderly financial restructuring, they filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code with the Bankruptcy Court. On February 27, 2020, the FES Debtors effectuated their plan, emerged from bankruptcy and FirstEnergy tendered the bankruptcy court approved settlement payments totaling $853 million and a $125 million tax sharing payment to the FES Debtors. The FES Bankruptcy settlement was conditioned on the FES Debtors confirming and effectuating a plan of reorganization acceptable to FirstEnergy. As contemplated under the FES Bankruptcy settlement agreement, AE Supply entered into an agreement on December 31, 2018, to transfer the 1,300 MW Pleasants Power Station and related assets to FG, while retaining certain specified liabilities. Under the terms of the agreement, FG acquired the economic interests in Pleasants as of January 1, 2019, and AE Supply operated Pleasants until ownership was transferred on January 30, 2020. AE Supply will continue to provide access to the McElroy's Run CCR impoundment facility, which was not transferred, and FE will provide guarantees for certain retained environmental liabilities of AE Supply, including the McElroy’s Run CCR impoundment facility. During the first quarter of 2020, FG 127

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