FirstEnergy

Pricing is set largely by regulators rather than by market discretion. Where FirstEnergy has the most pricing resiliency is in FERC‑regulated transmission, which recovers costs via formula rates and updates more quickly than typical state mechanisms.

State plans in Ohio (three‑year rate plan to be filed in early Q2 2026) and other jurisdictions provide timetables but do not equate to unconstrained pricing power. Management therefore drives value mainly via rate‑base growth, allowed equity layers and cost control, not by pure price increases.

The Ohio reliability proceedings and customer sentiment around outages constrain headroom to request stronger returns near term. Long‑term, FE can still expand margins modestly as the mix shifts toward transmission and as incremental performance incentives are earned.