FirstEnergy reports first-quarter earnings

Staff report

AKRON

FirstEnergy Corp. on Thursday reported first- quarter earnings of $205 million on revenue of $3.6 billion.

The results include a charge associated with coal-transportation contract disputes.

The results compared with first-quarter 2016 earnings of $328 million on revenue of $3.9 billion.

“Our financial results for the first quarter exceeded our operating earnings guidance, despite mild winter temperatures,” said Charles E. Jones, FirstEnergy president and chief executive officer, in a statement. “All three of our businesses performed well, and we are pleased with this strong start to the year.”

First-quarter operating earnings were impacted by new distribution rates, lower depreciation expense and increased transmission revenues, as well as lower capacity revenue in the competitive business, the company said.

In FirstEnergy’s regulated distribution business, first-quarter earnings increased as a result of approved rates in Ohio, New Jersey and Pennsylvania, which went into effect in January.

As a result of mild winter temperatures, total distribution deliveries decreased 1 percent year-over-year.

Heating degree days were 8 percent below the same period in 2016 and 16 percent below normal, resulting in a residential sales decrease of 3 percent and a 1 percent decrease in commercial sales.

On a weather-adjusted basis, sales increased slightly in both sectors. Industrial deliveries also increased slightly in the first quarter due to higher usage from the shale, steel and coal-mining sectors.

Akron-based FirstEnergy includes one of the nation’s largest investor-owned electric systems, more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions, and a generating fleet with a total capacity of nearly 17,000 megawatts, according to its website.