FirstEnergy faces risks from government investigations (HB 6, DPA, SEC), potential litigation losses, volatile interest rates, inflation, supply chain disruptions, extreme weather, changing regulations, cyberattacks, and climate change. Asset retirement obligations (AROs) related to coal ash disposal are increasing. Pension plan volatility and potential capital market access issues are also noted. The company's ability to recover costs through regulated rates is uncertain.
Financial Upside
FirstEnergy anticipates positive impacts from the FET Equity Interest Sale, including interest income and a tax gain. The company's Energize365 investment plan, and various rate case settlements, are expected to increase rate base and revenues. The company is also pursuing opportunities for cost savings and facility optimization. Successful execution of these strategies could lead to improved earnings and shareholder returns.
