- Here's Why FirstEnergy (FE) is a Strong Value Stock
May 11, 2026 · zacks.com
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
- Earnings Growth Positions FirstEnergy Corp. (FE) as a Top High-Growth Utility Stock
May 9, 2026
FirstEnergy Corp. (NYSE:FE) is one of the high growth utility stocks to buy according to analysts. On April 30, Goldman Sachs reiterated a Buy rating on FirstEnergy Corp. (NYSE:FE) and set a $54 price target.Earnings Growth Assert FirstEnergy Corp. (FE) as a Top High Growth Utility Stock
The investment bank has touted the company’s outlook following solid first-quarter results that affirmed underlying growth. Earnings increased to $405 million, or $0.70 a share, compared to $360 million, or $0.62 a share, delivered in the same quarter last year. The earnings increase came on the back of revenue soaring to $4.2 billion, up from $3.8 billion in the first quarter of last year.
Additionally, First Energy reiterated its 2026 Core Earnings guidance of between $2.62 and $2.82 per share. The earnings outlook is supported by the Energize365 capital investment plan of $6 billion for distribution infrastructure renewal and grid modernization.
Goldman Sachs remains confident that the company will deliver at the top end of management’s guidance of 6% to 8% earnings-per-share growth through 2030. The investment bank expects data center growth to be the main upside driver, given the company’s already contracted 4.3 gigawatts of demand.
FirstEnergy Corp. (NYSE:FE) is a major U.S. investor-owned electric utility holding company that generates, transmits, and distributes electricity to over 6 million customers. It operates a vast network of 24,000 miles of transmission lines and roughly 269,000 miles of distribution lines, focusing on regulated utility operations and infrastructure modernization.
While we acknowledge the potential of FE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Small-Cap Value Stocks to Buy and 10 Most Oversold Canadian Stocks to Invest In.
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- 8 out of 10 S&P 500 utility stocks beat EPS estimates this week: Earnings Scorecard
May 2, 2026
[Low Angle View Of Power Lines In Row Against Clear Blue Sky]
NexTser/iStock via Getty Images
Eight out of the 10 S&P 500 utilities companies that reported their quarterly results this week surpassed earnings expectations. On the revenue front too, eight out of the 10 companies beat Wall Street forecasts.
The State Street Utilities Select Sector SPDR ETF (XLU [https://seekingalpha.com/symbol/XLU]) rose 9% year-to-date, compared to the S&P 500’s (SP500 [https://seekingalpha.com/symbol/SP500#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) 5.6% gain.
BELOW ARE THE LATEST QUARTERLY REPORTS FROM FIVE INDUSTRY GIANTS:
FirstEnergy (FE [https://seekingalpha.com/symbol/FE]) outlined [https://seekingalpha.com/news/4582146-firstenergy-outlines-2_62-2_82-2026-core-eps-guidance-while-reaffirming-6-percentminus-8]$2.62-$2.82 2026 core EPS guidance while reaffirming 6%-8% CAGR through 2030. CEO Brian Tierney said the company “is off to a solid start this year with first quarter core earnings 7.5% above last year.”
Entergy (ETR [https://seekingalpha.com/symbol/ETR]) targets a [https://seekingalpha.com/news/4581990-entergy-outlines-57b-4-year-capital-plan-as-it-targets-8_5-percent-retail-sales-cagr-through]$57B 4-year capital plan as it targets 8.5% retail sales CAGR through 2029. The company expects the adjusted EPS outlook for next year to be $0.20 higher, and "the increase grows ratably from $0.50 in 2029 to $6.40".
CMS Energy (CMS [https://seekingalpha.com/symbol/CMS]) CEO Garrick Rochow meanwhile framed the quarter around regulatory support, load growth, and reaffirmed financial targets, saying, "Our investment thesis... continues to stand the test of time" and reiterating the company’s TSR formula as "6% to 8% adjusted EPS growth with annual compounding, paired with approximately 3% dividend yield."
Southern (SO [https://seekingalpha.com/symbol/SO]) outlined a $1.00 adjusted EPS estimate for Q2 2026 amid $26.5B DOE loan agreements, and beat [https://seekingalpha.com/news/4582692-southern-co-non-gaap-eps-of-1_32-beats-by-0_11-revenue-of-8_39b-beats-by-280m]estimates in Q1. First-quarter 2026 operating revenues were $8.4 billion, compared with $7.8 billion for the first quarter of 2025, an increase of 8%.
Edison (EIX [https://seekingalpha.com/symbol/EIX]) reported [https://seekingalpha.com/news/4581031-edison-non-gaap-eps-of-1_42-beats-by-0_09-revenue-of-4_10b-misses-by-30m]a mixed quarterly print but keeps confidence in delivering 5-7% core EPS growth from 2025-2030. Expects SCE rate base compound annual growth of approximately 7% from 2025 to 2030.
Utilities ETFs: (XLU [https://seekingalpha.com/symbol/XLU]), (VPU [https://seekingalpha.com/symbol/VPU]), (FUTY [https://seekingalpha.com/symbol/FUTY]), (IDU [https://seekingalpha.com/symbol/IDU]), (FXU [https://seekingalpha.com/symbol/FXU]), and (JXI [https://seekingalpha.com/symbol/JXI])
MORE ON STATE STREET UTILITIES SELECT SECTOR SPDR ETF
* Finding The Opportunities After The Selloff And End Of The War [https://seekingalpha.com/article/4887934-finding-opportunities-after-selloff-and-end-of-war]
* GUT Is Good, But XLU Is Better [https://seekingalpha.com/article/4886712-gut-is-good-but-xlu-is-better]
* XLU: Why It Is A Good Time To Take Profits [https://seekingalpha.com/article/4880205-xlu-why-it-is-a-good-time-to-take-profits]
* Oklo leads all large-cap utilities stocks in YoY CapEx growth [https://seekingalpha.com/news/4581897-oklo-leads-all-large-cap-utilities-stocks-in-yoy-capex-growth]
* Weekly ETF flows: Four of 11 sectors record outflows; technology sector leads inflows [https://seekingalpha.com/news/4580761-weekly-etf-flows-four-of-11-sectors-record-outflows-technology-sector-leads-inflows]
- OGE's Growth Driven by Infrastructure Expansion & Renewable Investments
May 1, 2026
OGE Energy Corp. OGE is steadily gaining from its targeted investments aimed at modernizing infrastructure. Its emphasis on carbon reduction efforts, along with a strong renewable energy portfolio, supports improved long-term growth prospects.
However, supply-chain disruptions and rising fuel and component costs are causing project delays and increasing cost pressures for OGE Energy.
Factors in Favor of OGE
OGE Energy is benefiting from robust customer growth in its key service territories of Oklahoma and Arkansas. Population growth, economic development and increasing electricity demand from residential, commercial and industrial customers continue to expand the utility’s customer base. This steady growth in demand supports higher electricity sales and creates opportunities for further investments in transmission, distribution and grid modernization projects.
OGE Energy is leveraging a diversified and increasingly renewable energy portfolio to support future growth. The company has been expanding the use of renewable resources such as wind and solar power while maintaining reliable conventional generation to ensure grid stability.
OGE Energy is the largest electric utility in Oklahoma and is pursuing an aggressive investment strategy to upgrade its infrastructure and provide seamless services to its customers. The company plans to spend $7.29 billion between 2026 and 2030.
It aims to bring 1.7 GW of new capacity online by 2029, and then add a further 1.8 GW by 2032. Overall, this reflects a long-term strategy to increase power production, likely through new infrastructure or renewable energy projects, to meet growing demand and support future growth.
Challenges Faced by OGE
In recent times, factors like raw material inflation, logistical challenges and certain component shortages have resulted in supply-chain disruption within the utility market. These have also resulted in supply-chain disruption and may continue to cause delays in construction activities and equipment deliveries related to OGE Energy’s capital projects.
Moreover, rising electricity production costs due to increased fuel prices, inflation and shortage of components also pose a risk for electricity manufacturers like OGE Energy.
Infrastructure Investment: A Necessity
Beyond rising electricity demand, higher temperatures are straining power systems, increasing the risk of overheating, equipment failures and fires. Ongoing investment and maintenance are vital to maintain reliable service and meet customer expectations, and like OGE, other utilities are also prioritizing infrastructure upgrades.
Entergy Corporation ETR boasts a detailed capital investment plan aimed at modernizing, decarbonizing and diversifying its portfolio, and potentially constructing additional generation.
ETR is also using modern technologies to improve its renewable energy system operations. The company plans to invest nearly $57 billion between 2026 and 2029 for infrastructure improvements, with a strong focus on renewable energy expansion and modernization.
Dominion Energy D has a well-chalked-out long-term capital expenditure plan to strengthen and expand its infrastructure. The company plans to invest $10.9 billion in 2026 and nearly $64.7 billion during the 2026-2030 period.
Dominion Energy plans to upgrade its electric infrastructure by installing smart meters and grid devices, and to enhance customer services through its customer information platform.
FirstEnergy Corporation’s FE goal of strengthening the transmission allows it to transmit electricity even during adverse weather conditions. The company’s ‘Energize365’ is a multi-year grid evolution platform focused on enhancing customer experience while maintaining its strong affordability position with rates at or below its in-state peers.
FirstEnergy has a capital investment plan of $36 billion for the 2026-2030 period, including $19 billion for transmission projects across stand-alone transmission and integrated segments.
Story Continues
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- Assessing FirstEnergy (FE) Valuation As Recent Share Price Weakness Meets Grid Investment Growth Story
May 1, 2026
Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide.
How FirstEnergy stock has been performing
FirstEnergy (FE) has given investors a mixed ride recently, with the stock showing a 2.9% decline over the past day and a 4.2% drop over the past week.
Over the past month the share price is down 6.2%, while performance over the past 3 months is slightly positive at 0.4%, leaving year to date and 1 year total returns at 5.0% and 15.7% respectively.
Looking further back, total returns over 3 and 5 years stand at 37.0% and 54.1%. The stock most recently closed at US$47.52, giving the company a market value of about US$28.3b.
See our latest analysis for FirstEnergy.
For context, FirstEnergy’s short term share price momentum has cooled, with a 6.2% 1 month share price decline, although the 1 year total shareholder return of 15.7% still reflects solid longer term gains for patient holders.
If you are comparing FirstEnergy with other power and grid names, it can help to see how peers are trading and which ones have stronger growth stories or lower risk profiles using a 35 power grid technology and infrastructure stocks
With FirstEnergy trading at US$47.52, some readers will notice the gap to the US$53.36 analyst target and the company’s recent revenue and net income growth. This raises the question: is this a genuine value window, or is future growth already baked in?
Most Popular Narrative: 10.3% Undervalued
FirstEnergy's most followed narrative pegs fair value at $53, compared with the recent $47.52 close, suggesting a valuation gap that hinges on medium term earnings power.
Large scale infrastructure modernization and grid hardening initiatives, including the $28 billion investment plan through 2029 and a 15% CAGR in transmission rate base, are cited as enabling higher returns on equity, improved reliability, and ultimately enhancing net margins and earnings growth.
Read the complete narrative.
That fair value hinges on how fast the grid investment plan converts into revenue, what happens to margins, and which earnings multiple the market is willing to pay.
Result: Fair Value of $53 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on regulatory support and large grid investments remaining manageable, since shifts in approvals or financing costs could quickly change that undervalued story.
Find out about the key risks to this FirstEnergy narrative.
Another Take On Valuation
The popular narrative leans on future earnings to argue FirstEnergy is about 10.3% undervalued. Yet the current P/E of 25.8x tells a different story. That multiple sits above both the US Electric Utilities industry at 21.6x and the peer average of 15x. The fair ratio is 24.8x, which points to a thinner margin of safety than the story suggests and raises the question of how much optimism is already in the price.
Story Continues
See what the numbers say about this price — find out in our valuation breakdown.NYSE:FE P/E Ratio as at May 2026
Next Steps
With mixed signals on value and growth, it helps to look past the headlines, review the numbers yourself, and decide how comfortable you are with the balance between potential upside and the risks on the table, starting with 1 key reward and 3 important warning signs.
Looking for more investment ideas?
If FirstEnergy has your attention, do not stop here. Broader context from other stocks and themes can help you spot opportunities you might otherwise miss.
Spot potential bargains early by scanning companies that look mispriced on quality and value using the 51 high quality undervalued stocks. Strengthen your income stream by focusing on companies with higher yields and defensive characteristics through the 12 dividend fortresses. Keep risk in check by reviewing businesses that score well on resilience and financial robustness with the 74 resilient stocks with low risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include FE.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- FirstEnergy (FE) Reports Q1 Results, Reaffirms 2026 Guidance
May 1, 2026
FirstEnergy Corp. (NYSE:FE) is included among the 10 Best Electrical Infrastructure Stocks to Buy According to Hedge Funds.FirstEnergy (FE) Reports Q1 Results, Reaffirms 2026 Guidance
FirstEnergy Corp. (NYSE:FE)’s electric distribution companies form one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York. The company’s transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions.
FirstEnergy Corp. (NYSE:FE) reported its Q1 2026 results on April 28, with the company growing its core earnings by 7.5% YoY to $0.72 per share, in line with market expectations. Revenue for the quarter also grew by 11.6% YoY to $4.2 billion, beating estimates by over $362 million. The utility posted a profit of $405 million, up 12.5% compared to the same period last year, due to the higher electricity rates and growing demand from power-hungry data centers.
FirstEnergy Corp. (NYSE:FE) reaffirmed its core earnings guidance range of $2.62 to $2.82 per share for FY 2026, helped by its $6 billion capital investment plan for the year, focusing on grid modernization, distribution upgrades, and transmission reliability. Moreover, the company revealed that its broader CapEx plan of $36 billion for 2026 to 2030 is expected to generate about 10% compounded annual rate‑base growth.
While we acknowledge the potential of FE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Sizzling Returns: 7 Energy Stocks That Just Hit New All-Time Highs and Powering the Future: Why These 7 Energy & Utility Stocks Are on Fire in April
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- FE vs. NEE: Which Stock Is the Better Value Option?
Apr 30, 2026
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of FirstEnergy (FE) and NextEra Energy (NEE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, FirstEnergy has a Zacks Rank of #2 (Buy), while NextEra Energy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FE has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FE currently has a forward P/E ratio of 17.93, while NEE has a forward P/E of 23.49. We also note that FE has a PEG ratio of 2.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NEE currently has a PEG ratio of 2.76.
Another notable valuation metric for FE is its P/B ratio of 2.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NEE has a P/B of 2.95.
Based on these metrics and many more, FE holds a Value grade of B, while NEE has a Value grade of D.
FE has seen stronger estimate revision activity and sports more attractive valuation metrics than NEE, so it seems like value investors will conclude that FE is the superior option right now.
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FirstEnergy Corporation (FE) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- FE vs. NEE: Which Stock Is the Better Value Option?
Apr 30, 2026 · zacks.com
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of FirstEnergy (FE) and NextEra Energy (NEE). But which of these two stocks is more attractive to value investors?
- Jersey Central Power & Light Company Announces Launch of Exchange Offer for Its 4.150% Senior Notes Due 2029, 4.400% Senior Notes Due 2031 and 5.150% Senior Notes Due 2036
Apr 30, 2026
MORRISTOWN, N.J., April 30, 2026 /PRNewswire/ -- Jersey Central Power & Light Company ("JCP&L" or the "Company"), a subsidiary of FirstEnergy Corp., today announced an offer to exchange up to (i) $350 million aggregate principal amount of its outstanding 4.150% Senior Notes due 2029, (ii) $500 million aggregate principal amount of its outstanding 4.400% Senior Notes due 2031 and (iii) $500 million aggregate principal amount of its outstanding 5.150% Senior Notes due 2036 (collectively, the "Outstanding Notes") for a like principal amount of each of the Company's (i) 4.150% Senior Notes due 2029, (ii) 4.400% Senior Notes due 2031 and (iii) 5.150% Senior Notes due 2036 (collectively, the "New Notes") registered under the Securities Act of 1933, as amended.JCP&L Logo (PRNewsfoto/FirstEnergy Corp.)
The exchange offer will expire at 5:00 p.m., New York City time, on June 1, 2026, unless extended. Tenders of Outstanding Notes must be made before the exchange offer expires and may be withdrawn any time prior to the expiration of the exchange offer. The exchange offer is being made to satisfy the Company's obligations under a registration rights agreement entered into in connection with the issuance of the Outstanding Notes and does not represent a new financing transaction.
The terms of the exchange offer are set forth in a prospectus dated April 30, 2026. Copies of the prospectus and the other exchange offer documents may be obtained from the exchange agent:
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
By Mail or in Person
The Bank of New York Mellon Trust Company, N.A.
c/o The Bank of New York Mellon
Corporate Trust Reorg Unit
500 Ross Street
Suite 625
Pittsburgh, PA, 15262
Attn: Meera Thillai
For Email (for Eligible Institutions Only)
Email: ct_reorg_unit_inquiries@bnymellon.com
For Information and to Confirm by Telephone
615-381-1655
This news release is for informational purposes only and is neither an offer to buy or sell nor a solicitation of an offer to buy or sell any Outstanding Notes or New Notes. The exchange offer is being made only pursuant to the exchange offer prospectus, which is being distributed to holders of the Outstanding Notes and has been filed with the Securities and Exchange Commission as part of the Company's Registration Statement on Form S-4 (File No. 333- 294955), which was declared effective on April 23, 2026.
JCP&L serves approximately 1.2 million customers in the counties of Burlington, Essex, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union and Warren. Follow JCP&L on X @JCP_L, on Facebook at facebook.com/JCPandL or online at jcp-l.com.
Story Continues
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy on X @FirstEnergyCorp or online at firstenergycorp.com.
Discussion of Forward-Looking Statements About JCP&L
Statements in this document regarding JCP&L that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, JCP&L undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see JCP&L's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Cautionary Note Regarding Forward-Looking Statements set forth in these filings and any updates to such risk factors and Cautionary Note Regarding Forward-Looking Statements contained in any subsequent reports on Form 10-K, Form 10-Q or Form 8-K.Cision
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- FirstEnergy opposes key part of PJM data center backstop procurement plan
Apr 30, 2026
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter.
The PJM Interconnection’s proposed Reliability Backstop Procurement auction could be a “step in the right direction,” but contains key elements FirstEnergy opposes, Brian Tierney, the company’s chairman, president and CEO, said Wednesday during a quarterly earnings conference call.
He expressed particular concern about the grid operator’s potential role in the process.
“The people making the investment — the power plant developers and builders — should contract directly with the end-use customers rather than having [PJM] in between and then another middleman being the electric distribution companies,” Tierney said. “The wrong people are going to end up paying with PJM in the middle.”
By the numbers: FirstEnergy Q1
4.3 GW
Contracted data centers through 2035.
0.5%
Increase in weather-normalized retail electric sales in the first quarter over the same quarter last year.
$405M
First-quarter earnings attributable to FirstEnergy, up 12.5% from a year ago.
$44M
Potential penalty for failing to meet New Jersey customer reliability standards.
FirstEnergy’s utilities have about 6 million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. They mainly operate in the PJM region and are helping integrate major data centers onto the grid.
The utilities have a total of 4.3 GW in contracted data centers set to come online by 2031, up nearly 50% from February 2025, according to an earnings call presentation.
Outside of of projects with service or construction contracts, the utilities’ pipeline of potential projects with “reputable” customers that meet certain project metrics grew to 7.4 GW by 2031 and 14.9 GW by 2035, up about 15% since February, FirstEnergy said.
On the financial front, earnings “attributable” to FirstEnergy jumped 12.5% to $405 million in the first quarter from $360 million in the year-ago period, according to the company. First-quarter revenue grew to $4.2 billion from $3.8 billion a year ago.
The increase in earnings was partly driven by higher transmission revenues and higher customer usage due to the colder weather, FirstEnergy said. Higher interest rates and litigation expenses partly offset the increase.
PJM’s proposed backstop auction
FirstEnergy wants to earn a return on any network or other upgrades its utilities make to serve the data centers, according to Tierney.
Story Continues
“Large loads should pay their fair share, but we think it should be to the utility company, to the transmission provider who's providing the service and [who should] have the opportunity to earn a return on that,” he said. “The large load should pay for their network improvements, but they should be paying the utility and the utility should be earning on their invested capital.”
Tierney has a major concern with PJM’s proposed two-part backstop procurement. The proposal to acquire roughly 15 GW to serve data centers would begin with a phase for data centers and power suppliers to enter into bilateral supply contracts. After that, PJM would hold an auction to secure any remaining targeted capacity, with the grid operator doling out the costs to utilities.
FirstEnergy utilities strongly opposes the proposed auction process.
“We are not going to sign contracts where our companies take commodity risk on generation and energy,” Tierney said. “It's not going to happen … if phase 2 is going to work, they need to contract with us.”
Affordability and rates
During the conference call, an analyst asked Tierney about the “affordability rhetoric” in Pennsylvania, where PECO Energy, an Exelon utility, withdrew a $510 million rate request two weeks ago.
“In terms of affordability, we're staying in touch with people and talking to people like Governor [Josh] Shapiro, Governor [Mikie] Sherrill in New Jersey and making sure there will be no surprises in any of our states when we come in for a rate case,” he said.
Shapiro on Wednesday told utility leaders that “the 20th century utility model is broken — we can no longer simply prioritize corporate profitability to drive infrastructure development.”
Shapiro said his administration will oppose utility rate case requests that fail to follow three practices he outlined in a letter to utilities. They include: seeking the most cost effective forms of capital; developing cost-benefit analysis showing that any investments will produce “significant” savings or reliability benefits for consumers; and asking for “transparent, justifiable” equity returns.
Also, FirstEnergy’s Ohio utilities plan to file a three-year rate proposal with state utility regulators in May 2026 that includes plans to spend about $800 million a year on reliability-focused projects, according to the SEC report. The company expects new rates would take effect in mid-2027.
Generation and reliability investments
Meanwhile, FirstEnergy’s weather-adjusted retail sales grew to 38.3million MWh in the first quarter, up 0.5% from the same period last year. Residential sales fell 0.1% while commercial and industrial sales increased 1.4% and 0.5%, respectively, in the quarter, the Akron, Ohio-based company said.
In West Virginia, FirstEnergy’s Monongahela Power and Potomac Edison are on track to bring online a 1.2 GW combined cycle gas turbine plant by 2031 and 70 MW of solar by 2028 for about $2.7 billion, according to Tierney.
FirstEnergy expects the West Virginia Public Service Commission will make a decision on the proposal in the second half of 2026, according to a report filed with the U.S Securities and Exchange Commission.
Liabilities and legal complications
Jersey Central Power & Light faces a possible $44 million penalty for failing to meet New Jersey customer reliability standards, according to the SEC report.
The utility is also closely monitoring the rollback of environmental regulation at a federal level that could impact its businesses, it said.
Separately, the company continues to face repurcussions from an Ohio bribery scandal involving two utility officials. Stockholders and customers have filed a number of lawsuits that are still pending.
“The outcome of any of these lawsuits is uncertain and could have a material adverse effect on FE’s or its subsidiaries’ reputation, business, financial condition, results of operations, liquidity, and cash flows,” it said.
Recommended Reading
PJM proposes adding 14.9 GW with bilateral contracts, central procurement
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