FirstEnergy Reports Increase in Total Revenues for Latest Quarter
Segments of revenue
In the latest quarter, FirstEnergy (FE) reported a total revenue increase of $186 million compared to the same period last year. This growth was primarily driven by the absence of a reserve for customer refunds associated with the FERC Audit, a true-up adjustment for the recovery of certain transmission formula rate operating costs, and a higher rate base.
FirstEnergy's increase in total revenues can be attributed to several factors. Firstly, the absence of a reserve for customer refunds from the FERC Audit positively impacted the company's revenue growth. Additionally, the true-up adjustment for the recovery of certain transmission formula rate operating costs during the quarter contributed to the increase in revenues. Lastly, the higher rate base also played a role in driving the growth of FirstEnergy's total revenues.
Despite the overall increase in total revenues, FirstEnergy's Regulated Distribution segment experienced a decrease in earnings attributable to FE from continuing operations. This decline of $217 million was primarily due to lower customer usage resulting from unfavorable weather conditions, lower net pension and OPEB credits, and higher interest expense and costs from the PEER. However, these challenges were partially offset by lower other operating expenses, higher revenues from regulated investment programs, and higher weather-adjusted customer usage and demand.
It is worth noting that FirstEnergy declared a $0.02 per share increase in the quarterly common dividend payable in December 2023, representing a 5% increase compared to the previous quarterly payments. This demonstrates the company's commitment to returning value to its shareholders.
FirstEnergy reported a positive performance in terms of total revenues for the latest quarter, with a $186 million increase compared to the same period last year. The absence of customer refund reserves, true-up adjustments for transmission formula rate operating costs, and a higher rate base were the key drivers of this revenue growth. However, the Regulated Distribution segment faced challenges due to lower customer usage, unfavorable weather conditions, and higher expenses. Overall, FirstEnergy's financial performance reflects its ability to navigate through challenges while continuing to generate revenue growth.