FE 2022 Annual Report

Components of Net Periodic Benefit Costs (Credits) for the Years Ended December 31, Pension OPEB 2022 2021 2020 2022 2021 2020 (In millions) Service cost (1) $ 184 $ 195 $ 194 $ 3 $ 4 $ 4 Interest cost 273 226 287 11 11 15 Expected return on plan assets (657) (652) (618) (39) (36) (33) Amortization of prior service costs (credits) (2) 2 3 12 (11) (17) (46) One-time termination benefits (3) — — 8 — — — Pension & OPEB mark-to-market (98) (253) 463 26 (129) 14 Net periodic benefit costs (credits) $ (296) $ (481) $ 346 $ (10) $ (167) $ (46) (1) Includes amounts capitalized. (2) 2020 includes the acceleration of approximately $18 million in net credits as a result of the FES Debtors’ emergence during the first quarter of 2020 and is a component of discontinued operations in FirstEnergy’s Consolidated Statements of Income. (3) Costs represent additional benefits provided to FES and FENOC employees under the approved settlement agreement and are a component of discontinued operations. Approximately $15 million, $(31) million and $40 million of the annual pension and OPEB mark-to-market charges (credits) were allocated to the Regulated Transmission companies under forward-looking formula rates, and expected to be refunded or recovered through formula transmission rates, respectively. The 2022 pension and OPEB mark-to-market adjustment primarily reflects a 221 bps increase in the discount rate used to measure pension benefit obligations partially offset by lower than expected asset returns. Pension OPEB Obligations/Funded Status - Qualified and Non-Qualified Plans 2022 2021 2022 2021 (In millions) Change in benefit obligation: Benefit obligation as of January 1 $ 11,479 $ 11,935 $ 549 $ 676 Service cost 184 195 3 4 Interest cost 273 226 11 11 Plan participants’ contributions — — 3 4 Medicare retiree drug subsidy — — 1 1 Actuarial loss (gain) (2,515) (280) (83) (101) Benefits paid (593) (597) (45) (46) Benefit obligation as of December 31 $ 8,828 $ 11,479 $ 439 $ 549 Change in fair value of plan assets: Fair value of plan assets as of January 1 $ 9,020 $ 8,968 $ 548 $ 502 Actual return on plan assets (1,760) 625 (70) 64 Company contributions 26 24 24 24 Plan participants’ contributions — — 3 4 Benefits paid (593) (597) (45) (46) Fair value of plan assets as of December 31 $ 6,693 $ 9,020 $ 460 $ 548 Funded Status: Qualified plan $ (1,734) $ (1,974) $ — $ — Non-qualified plans (401) (485) — — Funded Status (Net liability as of December 31) $ (2,135) $ (2,459) $ 21 $ (1) Accumulated benefit obligation $ 8,500 $ 10,927 $ — $ — Amounts Recognized in AOCI: Prior service cost (credit) $ 6 $ 9 $ (10) $ (21) 93

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