Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: With Ohio potentially becoming a hub for hyperscalers, is there any plan for data center-focused rate design or tariff filings to balance the impact on other customers while attracting this business?
A: Brian X. Tierney, CEO of FirstEnergy, mentioned that the current tariffs are set up such that data center customers would be transmission-related customers, which means the revenue impact to distribution companies wouldn't be as significant as it might be with residential customers. Jon Taylor, CFO, added that while there's nothing specific planned, it's something they might look at over time.
Q: There's new language in the quarterly report about potential fines from the OOCIC. Can you discuss the range of outcomes and any potential impact on ongoing investigations?
A: Brian X. Tierney clarified that the new disclosures relate to activities not covered by the Deferred Prosecution Agreement (DPA) and mentioned the possibility of settling to put these issues behind, although he doesn't expect it to be material.
Q: Can you provide more details on how you're keeping the rate hike request low in Ohio despite the long interval since the last adjustment?
A: Brian X. Tierney explained that the strategy involves moving costs that have been covered under riders into base rates, which doesn't lead to an increase for customers since these costs were already being paid. Jon Taylor highlighted that significant amounts currently covered by riders like DCR and Grid Mod will transition to base rates.
Q: How is the strategic initiative to realign the organization and decentralize decision-making progressing?
A: Brian X. Tierney reported positive progress with new hires integrating well and contributing to the company's strategic goals, particularly in aligning capital expenditure plans with business units through initiatives like Energize365.
Q: Could you discuss the clean energy component of the Energize365 CapEx plan, particularly how it relates to solar, energy efficiency, and other initiatives?
A: Brian X. Tierney emphasized that much of the clean energy CapEx is focused on transmission and enabling technologies rather than generation, with significant investments planned for enabling offshore wind in New Jersey and solar in West Virginia. Jon Taylor added that less than 10% of the total $26 billion plan is allocated directly to clean energy projects.
Q: With the upcoming expiration of the Deferred Prosecution Agreement, is there a specific date or announcement expected?
A: Jon Taylor noted that the agreement is set to expire in late July, and they hope to file for its conclusion sooner if all conditions are met, aiming to resolve this and other outstanding legal matters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
