Strategy

Strategic Plan

Inspired by open and ongoing dialogue with diverse stakeholders, FirstEnergy is experiencing a period of growth and renewal. We are embracing pivotal changes within our operations and culture that are energizing our company as we further our transformation into a forward-thinking, premier utility.

Guided by our Core Values, our leaders are focused on building a diverse workforce whose business practices are centered on a best-in-class ethics and compliance program. Starting with an integrity-focused tone at the highest levels of our company, we are working together to develop an inclusive and safe culture where employees feel empowered and motivated to speak up and bring their very best every day.

Throughout this cultural transformation, FirstEnergy has maintained strong operational and financial performance, leaving us well positioned to capitalize on long-term, sustainable investments designed to serve over 6 million customers’ evolving energy needs while growing value for shareholders. Our sustainable investment plan, which totals $17 billion from 2021 to 2025, targets 75% formula rate recovery and annual rate base growth of approximately 6%. Looking ahead, we are targeting a 6% to 8% earnings growth rate with a competitive dividend and investment-grade credit ratings, while focusing on growing cash from operations consistent with earnings.

FE Forward initiatives are modernizing our company – driving us to enhance business practices and accelerate our digital transformation. Building on our proven track record of safety and performance excellence, we’re developing ways to increase efficiency and optimize how we manage our assets and resources, while maintaining a sharp focus on customer satisfaction and service reliability.

Using a data-driven approach, we’re building a best-in-class customer experience that will help them explore renewable energy choices, adopt electric vehicles (EV), manage energy use, report outages and navigate payment assistance programs. We’re also improving customer interactions with our contact centers and digital channels, and continuing to support our low-income customers’ needs throughout the transition to a reduced carbon future.

Dedicated to continual improvement and innovation, FirstEnergy is poised to unlock significant growth opportunities that are embedded in a decarbonized economy. We’ve identified over $20 billion in transmission investment opportunities, along with other long-term investments that support EV infrastructure, renewable energy integration, grid reliability and resiliency.

With renewed commitment to transparency, compliance and ethics, and unwavering commitment to our customers, FirstEnergy strives to emerge as an industry-leader, lighting the way toward a low carbon future and continued success.

Building a Premier Utility

A Strong Foundation Integrity, Safety, Diversity, Sustainability, and Growth
A Culture of Ethics and Integrity Building a compliance program focused on ethics, integrity, transparency and accountability
  • Established a Compliance Subcommittee to oversee the assessment of improvements in FE’s compliance program
  • Appointed 5 new independent directors and hired senior leaders with unwavering commitment to integrity
  • Added a new Ethics and Compliance component to our Key Performance Indicators (KPIs)
  • Delivered various compliance trainings throughout 2021 (e.g. Code of Business Conduct, Up-the-ladder reporting for Legal)
  • Hosted several town hall meetings with all employees to reinforce integrity is integral to FE’s values and success
  • Remediated the material weakness in internal controls associated with our tone at the top
  • Revised Code of Business Conduct
  • Began publishing a new quarterly Corporate Engagement report on our Corporate Responsibility website
  • Rated a Trendsetter in 2021 CPA-Zicklin Index
  • New policy and practice regarding political contributions and ballot initiative expenditures
    • Focus on issues with significant impact on FE and our customers
    • Aligned with our core values and strategic priorities
A Safe Workplace Leading with safety; commit to creating a working environment that helps ensure every employee returns home safely every day
  • Safety is a core value embedded in our culture
  • Employees receive safety training to improve job site exposure identification, communication and mitigation to prevent life-changing events
  • Enhanced safety protocols regarding COVID-19
  • Safety KPI metrics represent 15% of STIP
A Diverse, Equitable, &
Inclusive Work EnvironmentDiversity, Equity and Inclusion (DEI) is a core value and foundational to everything we do
  • Provide ongoing training, education and dialogue forums on a variety of DEI topics for employees and leaders
  • DEI KPI metrics represent 15% of STIP
  • Aspire to achieve a 30% increase in the number of racially and ethnically diverse employees by 2025
Sustainable Climate & Environmental Goals Improving the sustainability of our operations and execute our Climate Strategy
  • Achieve carbon neutrality by 2050; 30% reduction by 2030 (from 2019 baseline)
  • 20% reduction in water consumption at our two fossil fuel plants by 2030
  • Advocate for customer programs that promote energy efficiency, conservation, demand-side management, and smart meters
Strengthened Credit Profile Focusing on investment-grade ratings to support investments and earnings growth
  • Cash Flow KPI to reinforce emphasis on cash
  • $3.4B equity financing transactions eliminate equity needs and support incremental investments
  • 13% FFO-to-Debt no later than 2024; targeting mid-teens thereafter
An Unrelenting Customer Focus Modern Experiences, New Growth and Affordable Energy Bills
Modern Digital Customer Experience Simplify the customer payment process and incorporate more innovative and self-service support functionalities
  • Diverse billing and payment options, web chat capabilities, and timely alerts and notifications
  • Outage notifications and two-way interactions
Accelerate Electrification Economy-wide electrification to reduce carbon emissions and power a more sustainable future
  • EV Charging Infrastructure programs (NJ & MD)
  • Exploring opportunities with customers and regulators to achieve their renewable goals
Sustainable Products & Solutions Promote energy efficiency and smart meter programs and infrastructure to help customers conserve energy
  • 2.7M smart meters in-service; 4M by 2025 (PA, NJ, OH)
  • Energy efficiency & conservation programs to help customers reduce consumption and peak demand (PA, NJ, MD)
New Customers Assist in economic development efforts
  • Targeting $25B cumulative economic impact by 2025 through economic development activities
  • New customers / expansions driving growth for Primary Metals, Shale, Chemical sectors
Customer Affordability Focus on customer rates and affordability of total energy bills
  • Average Annual Residential Bill increase of ~0.5% since 2011
  • Average-to-below average customer rates in all jurisdictions we operate
  • Focusing on prudent operating expenses through FE Forward and making the right investments for customers
Leading and Enabling the Energy Transition Clean, Resilient and Secure Electric Grid
Clean Energy Transition Enablement Support the global energy transition to renewable resources
  • Solar generation projects – WV
  • Pilot programs – MD Battery Storage
  • JCP&L offshore wind proposal
  • Transmission upgrades to support existing generation retirements and incremental renewable generation
  • Stakeholder dialogue regarding planned operational end dates for Ft. Martin (2035) & Harrison (2040)
Customer-Focused Investments: Grid Mod & Resiliency Advanced technology investments to make improve grid reliability, resiliency, and security
  • Grid Modernization – Distribution Automation & Volt Var Optimization
  • AMI/Smart Meter deployment
  • Advanced Distribution Management System
  • Energizing the Future Program
IT/Digital Enablement Digital tools and solutions to drive performance excellence 
  • Created Digital Factory and Innovation Center
  • Implementing system integration, automation and mobility tools
  • Investing in innovation and continuous improvement
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