FERC Form

THIS FILING IS

Item 1:

☑ An Initial (Original) Submission

OR

☐ Resubmission No.




FERC FINANCIAL REPORT FERC FORM No. 1: Annual Report of Major Electric Utilities, Licensees and Others and Supplemental Form 3-Q: Quarterly Financial Report

These reports are mandatory under the Federal Power Act, Sections 3, 4(a), 304 and 309, and 18 CFR 141.1 and 141.400. Failure to report may result in criminal fines, civil penalties and other sanctions as provided by law. The Federal Energy Regulatory Commission does not consider these reports to be of confidential nature

Exact Legal Name of Respondent (Company)

The Potomac Edison Company

Year/Period of Report

End of:

2023

/

Q2

INSTRUCTIONS FOR FILING FERC FORM NOS. 1 and 3-Q

GENERAL INFORMATION

Purpose
FERC Form No. 1 (FERC Form 1) is an annual regulatory requirement for Major electric utilities, licensees and others (18 C.F.R. § 141.1). FERC Form No. 3-Q ( FERC Form 3-Q) is a quarterly regulatory requirement which supplements the annual financial reporting requirement (18 C.F.R. § 141.400). These reports are designed to collect financial and operational information from electric utilities, licensees and others subject to the jurisdiction of the Federal Energy Regulatory Commission. These reports are also considered to be non-confidential public use forms.
Who Must Submit
Each Major electric utility, licensee, or other, as classified in the Commission’s Uniform System of Accounts Prescribed for Public Utilities, Licensees, and Others Subject To the Provisions of The Federal Power Act (18 C.F.R. Part 101), must submit FERC Form 1 (18 C.F.R. § 141.1), and FERC Form 3-Q (18 C.F.R. § 141.400).
Note: Major means having, in each of the three previous calendar years, sales or transmission service that exceeds one of the following:
1. one million megawatt hours of total annual sales,
2. 100 megawatt hours of annual sales for resale,
3. 500 megawatt hours of annual power exchanges delivered, or
4. 500 megawatt hours of annual wheeling for others (deliveries plus losses).

What and Where to Submit

Submit FERC Form Nos. 1 and 3-Q electronically through the eCollection portal at https://eCollection.ferc.gov, and according to the specifications in the Form 1 and 3-Q taxonomies.
The Corporate Officer Certification must be submitted electronically as part of the FERC Forms 1 and 3-Q filings.
Submit immediately upon publication, by either eFiling or mail, two (2) copies to the Secretary of the Commission, the latest Annual Report to Stockholders. Unless eFiling the Annual Report to Stockholders, mail the stockholders report to the Secretary of the Commission at:
Secretary
Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426

For the CPA Certification Statement, submit within 30 days after filing the FERC Form 1, a letter or report (not applicable to filers classified as Class C or Class D prior to January 1, 1984). The CPA Certification Statement can be either eFiled or mailed to the Secretary of the Commission at the address above.

The CPA Certification Statement should:

Attest to the conformity, in all material aspects, of the below listed (schedules and pages) with the Commission's applicable Uniform System of Accounts (including applicable notes relating thereto and the Chief Accountant's published accounting releases), and

Be signed by independent certified public accountants or an independent licensed public accountant certified or licensed by a regulatory authority of a State or other political subdivision of the U. S. (See 18 C.F.R. §§ 41.10-41.12 for specific qualifications.)

Schedules	Pages
Comparative Balance Sheet	110-113
Statement of Income	114-117
Statement of Retained Earnings	118-119
Statement of Cash Flows	120-121
Notes to Financial Statements	122-123

The following format must be used for the CPA Certification Statement unless unusual circumstances or conditions, explained in the letter or report, demand that it be varied. Insert parenthetical phrases only when exceptions are reported.
“In connection with our regular examination of the financial statements of [COMPANY NAME] for the year ended on which we have reported separately under date of [DATE], we have also reviewed schedules [NAME OF SCHEDULES] of FERC Form No. 1 for the year filed with the Federal Energy Regulatory Commission, for conformity in all material respects with the requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases. Our review for this purpose included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
Based on our review, in our opinion the accompanying schedules identified in the preceding paragraph (except as noted below) conform in all material respects with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases.” The letter or report must state which, if any, of the pages above do not conform to the Commission’s requirements. Describe the discrepancies that exist.
Filers are encouraged to file their Annual Report to Stockholders, and the CPA Certification Statement using eFiling. Further instructions are found on the Commission’s website at https://www.ferc.gov/ferc-online/ferc-online/frequently-asked-questions-faqs-efilingferc-online.
Federal, State, and Local Governments and other authorized users may obtain additional blank copies of FERC Form 1 and 3-Q free of charge from https://www.ferc.gov/general-information-0/electric-industry-forms.

When to Submit
FERC Forms 1 and 3-Q must be filed by the following schedule:
1. FERC Form 1 for each year ending December 31 must be filed by April 18th of the following year (18 CFR § 141.1), and
2. FERC Form 3-Q for each calendar quarter must be filed within 60 days after the reporting quarter (18 C.F.R. § 141.400).
Where to Send Comments on Public Reporting Burden.
The public reporting burden for the FERC Form 1 collection of information is estimated to average 1,168 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data-needed, and completing and reviewing the collection of information. The public reporting burden for the FERC Form 3-Q collection of information is estimated to average 168 hours per response.
Send comments regarding these burden estimates or any aspect of these collections of information, including suggestions for reducing burden, to the Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426 (Attention: Information Clearance Officer); and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503 (Attention: Desk Officer for the Federal Energy Regulatory Commission). No person shall be subject to any penalty if any collection of information does not display a valid control number (44 U.S.C. § 3512 (a)).

GENERAL INSTRUCTIONS

Prepare this report in conformity with the Uniform System of Accounts (18 CFR Part 101) (USofA). Interpret all accounting words and phrases in accordance with the USofA.
Enter in whole numbers (dollars or MWH) only, except where otherwise noted. (Enter cents for averages and figures per unit where cents are important. The truncating of cents is allowed except on the four basic financial statements where rounding is required.) The amounts shown on all supporting pages must agree with the amounts entered on the statements that they support. When applying thresholds to determine significance for reporting purposes, use for balance sheet accounts the balances at the end of the current reporting period, and use for statement of income accounts the current year's year to date amounts.
Complete each question fully and accurately, even if it has been answered in a previous report. Enter the word "None" where it truly and completely states the fact.
For any page(s) that is not applicable to the respondent, omit the page(s) and enter "NA," "NONE," or "Not Applicable" in column (d) on the List of Schedules, pages 2 and 3.
Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of Report" included in the header of each page is to be completed only for resubmissions (see VII. below).
Generally, except for certain schedules, all numbers, whether they are expected to be debits or credits, must be reported as positive. Numbers having a sign that is different from the expected sign must be reported by enclosing the numbers in parentheses.
For any resubmissions, please explain the reason for the resubmission in a footnote to the data field.
Do not make references to reports of previous periods/years or to other reports in lieu of required entries, except as specifically authorized.
Wherever (schedule) pages refer to figures from a previous period/year, the figures reported must be based upon those shown by the report of the previous period/year, or an appropriate explanation given as to why the different figures were used.
Schedule specific instructions are found in the applicable taxonomy and on the applicable blank rendered form.

Definitions for statistical classifications used for completing schedules for transmission system reporting are as follows:

FNS - Firm Network Transmission Service for Self. "Firm" means service that can not be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Network Service" is Network Transmission Service as described in Order No. 888 and the Open Access Transmission Tariff. "Self" means the respondent.

FNO - Firm Network Service for Others. "Firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Network Service" is Network Transmission Service as described in Order No. 888 and the Open Access Transmission Tariff.

LFP - for Long-Term Firm Point-to-Point Transmission Reservations. "Long-Term" means one year or longer and” firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Point-to-Point Transmission Reservations" are described in Order No. 888 and the Open Access Transmission Tariff. For all transactions identified as LFP, provide in a footnote the termination date of the contract defined as the earliest date either buyer or seller can unilaterally cancel the contract.

OLF - Other Long-Term Firm Transmission Service. Report service provided under contracts which do not conform to the terms of the Open Access Transmission Tariff. "Long-Term" means one year or longer and “firm” means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. For all transactions identified as OLF, provide in a footnote the termination date of the contract defined as the earliest date either buyer or seller can unilaterally get out of the contract.

SFP - Short-Term Firm Point-to-Point Transmission Reservations. Use this classification for all firm point-to-point transmission reservations, where the duration of each period of reservation is less than one-year.

NF - Non-Firm Transmission Service, where firm means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions.

OS - Other Transmission Service. Use this classification only for those services which can not be placed in the above-mentioned classifications, such as all other service regardless of the length of the contract and service FERC Form. Describe the type of service in a footnote for each entry.

AD - Out-of-Period Adjustments. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting periods. Provide an explanation in a footnote for each adjustment.

DEFINITIONS

Commission Authorization (Comm. Auth.) -- The authorization of the Federal Energy Regulatory Commission, or any other Commission. Name the commission whose authorization was obtained and give date of the authorization.
Respondent -- The person, corporation, licensee, agency, authority, or other Legal entity or instrumentality in whose behalf the report is made.

EXCERPTS FROM THE LAW

Federal Power Act, 16 U.S.C. § 791a-825r

Sec. 3. The words defined in this section shall have the following meanings for purposes of this Act, to with:

’Corporation' means any corporation, joint-stock company, partnership, association, business trust, organized group of persons, whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing. It shall not include 'municipalities, as hereinafter defined;
'Person' means an individual or a corporation;
'Licensee, means any person, State, or municipality Licensed under the provisions of section 4 of this Act, and any assignee or successor in interest thereof;

'municipality means a city, county, irrigation district, drainage district, or other political subdivision or agency of a State competent under the Laws thereof to carry and the business of developing, transmitting, unitizing, or distributing power; ......

"project' means. a complete unit of improvement or development, consisting of a power house, all water conduits, all dams and appurtenant works and structures (including navigation structures) which are a part of said unit, and all storage, diverting, or fore bay reservoirs directly connected therewith, the primary line or lines transmitting power there from to the point of junction with the distribution system or with the interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit or any part thereof, and all water rights, rights-of-way, ditches, dams, reservoirs, Lands, or interest in Lands the use and occupancy of which are necessary or appropriate in the maintenance and operation of such unit;

"Sec. 4. The Commission is hereby authorized and empowered

'To make investigations and to collect and record data concerning the utilization of the water 'resources of any region to be developed, the water-power industry and its relation to other industries and to interstate or foreign commerce, and concerning the location, capacity, development costs, and relation to markets of power sites; ... to the extent the Commission may deem necessary or useful for the purposes of this Act."

"Sec. 304.

Every Licensee and every public utility shall file with the Commission such annual and other periodic or special* reports as the Commission may by rules and regulations or other prescribe as necessary or appropriate to assist the Commission in the proper administration of this Act. The Commission may prescribe the manner and FERC Form in which such reports shall be made, and require from such persons specific answers to all questions upon which the Commission may need information. The Commission may require that such reports shall include, among other things, full information as to assets and Liabilities, capitalization, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and other reserves, cost of project and other facilities, cost of maintenance and operation of the project and other facilities, cost of renewals and replacement of the project works and other facilities, depreciation, generation, transmission, distribution, delivery, use, and sale of electric energy. The Commission may require any such person to make adequate provision for currently determining such costs and other facts. Such reports shall be made under oath unless the Commission otherwise specifies*.10

"Sec. 309.

The Commission shall have power to perform any and all acts, and to prescribe, issue, make, and rescind such orders, rules and regulations as it may find necessary or appropriate to carry out the provisions of this Act. Among other things, such rules and regulations may define accounting, technical, and trade terms used in this Act; and may prescribe the FERC Form or FERC Forms of all statements, declarations, applications, and reports to be filed with the Commission, the information which they shall contain, and the time within which they shall be field..."

GENERAL PENALTIES

The Commission may assess up to $1 million per day per violation of its rules and regulations. See FPA § 316(a) (2005), 16 U.S.C. § 825o(a).

FERC FORM NO.

1/3-Q

REPORT OF MAJOR ELECTRIC UTILITIES, LICENSEES AND OTHER

Identification

01 Exact Legal Name of Respondent

The Potomac Edison Company

02 Year/ Period of Report

End of:

2023

/

Q2

03 Previous Name and Date of Change (If name changed during year)

/

04 Address of Principal Office at End of Period (Street, City, State, Zip Code)

76 South Main Street, Akron, OH, 44308

05 Name of Contact Person

Kevin P. Gerenda

06 Title of Contact Person

Manager - Financial Reporting

07 Address of Contact Person (Street, City, State, Zip Code)

76 South Main Street, Akron, OH, 44308

08 Telephone of Contact Person, Including Area Code

(330) 384-2433

09 This Report is An Original / A Resubmission

(1)

☑ An Original

(2)

☐ A Resubmission

10 Date of Report (Mo, Da, Yr)

08/25/2023

Quarterly Corporate Officer Certification

The undersigned officer certifies that:

I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct statements of the business affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all material respects to the Uniform System of Accounts.

01 Name

Tracy M. Ashton

02 Title

Assistant Controller

03 Signature

/s/ Tracy M. Ashton

04 Date Signed (Mo, Da, Yr)

08/25/2023

Title 18, U.S.C. 1001 makes it a crime for any person to knowingly and willingly to make to any Agency or Department of the United States any false, fictitious or fraudulent statements as to any matter within its jurisdiction.

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

List of Schedules
Enter in column (c) the terms "none," "not applicable," or "NA," as appropriate, where no information or amounts have been reported for certain pages. Omit pages where the respondents are "none," "not applicable," or "NA".
Line No.	Title of Schedule (a)	Reference Page No. (b)	Remarks (c)
	ScheduleIdentificationAbstract Identification	1
	ScheduleListOfSchedulesAbstract List of Schedules (Electric Utility)	2
1	ScheduleImportantChangesDuringTheQuarterYearAbstract Important Changes During the Quarter	108
2	ScheduleComparativeBalanceSheetAbstract Comparative Balance Sheet	110
3	ScheduleStatementOfIncomeAbstract Statement of Income for the Quarter	114
4	ScheduleRetainedEarningsAbstract Statement of Retained Earnings for the Quarter	118
5	ScheduleStatementOfCashFlowsAbstract Statement of Cash Flows	120
6	ScheduleNotesToFinancialStatementsAbstract Notes to Financial Statements	122
7	ScheduleStatementOfAccumulatedOtherComprehensiveIncomeAndHedgingActivitiesAbstract Statement of Accum Comp Income, Comp Income, and Hedging Activities	122a
8	ScheduleSummaryOfUtilityPlantAndAccumulatedProvisionsForDepreciationAmortizationAndDepletionAbstract Summary of Utility Plant & Accumulated Provisions for Dep, Amort & Dep	200
9	ScheduleElectricPlantInServiceAndAccumulatedProvisionForDepreciationByFunctionAbstract Electric Plant In Service and Accum Provision For Depr by Function	208
10	ScheduleTransmissionServiceAndGenerationInterconnectionStudyCostsAbstract Transmission Service and Generation Interconnection Study Costs	231
11	ScheduleOtherRegulatoryAssetsAbstract Other Regulatory Assets	232
12	ScheduleOtherRegulatoryLiabilitiesAbstract Other Regulatory Liabilities	278
13	ScheduleElectricOperatingRevenuesAbstract Elec Operating Revenues (Individual Schedule Lines 300-301)	300
14	ScheduleRegionalTransmissionServiceRevenuesAbstract Regional Transmission Service Revenues (Account 457.1)	302	None
15	ScheduleElectricProductionOtherPowerTransmissionRegionalExpensesAbstract Electric Prod, Other Power Supply Exp, Trans and Distrib Exp	324
16	ScheduleElectricCustomerAccountServiceSalesAdministrativeAndGeneralExpensesAbstract Electric Customer Accts, Service, Sales, Admin and General Expenses	325
17	ScheduleTransmissionOfElectricityForOthersAbstract Transmission of Electricity for Others	328
18	ScheduleTransmissionOfElectricityByIsoOrRtoAbstract Transmission of Electricity by ISO/RTOs	331
19	ScheduleTransmissionOfElectricityByOthersAbstract Transmission of Electricity by Others	332
20	ScheduleDepreciationDepletionAndAmortizationsAbstract Deprec, Depl and Amort of Elec Plant (403,403.1,404,and 405) (except Amortization of Acquisition Adjustments)	338
21	ScheduleAmountsIncludedInIsoOrRtoSettlementAbstract Amounts Included in ISO/RTO Settlement Statements	397
22	ScheduleMonthlyPeaksAndOutputAbstract Monthly Peak Loads and Energy Output	399
23	ScheduleMonthlyTransmissionSystemPeakLoadAbstract Monthly Transmission System Peak Load	400
24	ScheduleMonthlyIsoOrRtoTransmissionSystemPeakLoadAbstract Monthly ISO/RTO Transmission System Peak Load	400a	None

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

IMPORTANT CHANGES DURING THE QUARTER/YEAR
Give particulars (details) concerning the matters indicated below. Make the statements explicit and precise, and number them in accordance with the inquiries. Each inquiry should be answered. Enter "none," "not applicable," or "NA" where applicable. If information which answers an inquiry is given elsewhere in the report, make a reference to the schedule in which it appears. Changes in and important additions to franchise rights: Describe the actual consideration given therefore and state from whom the franchise rights were acquired. If acquired without the payment of consideration, state that fact. Acquisition of ownership in other companies by reorganization, merger, or consolidation with other companies: Give names of companies involved, particulars concerning the transactions, name of the Commission authorizing the transaction, and reference to Commission authorization. Purchase or sale of an operating unit or system: Give a brief description of the property, and of the transactions relating thereto, and reference to Commission authorization, if any was required. Give date journal entries called for by the Uniform System of Accounts were submitted to the Commission. Important leaseholds (other than leaseholds for natural gas lands) that have been acquired or given, assigned or surrendered: Give effective dates, lengths of terms, names of parties, rents, and other condition. State name of Commission authorizing lease and give reference to such authorization. Important extension or reduction of transmission or distribution system: State territory added or relinquished and date operations began or ceased and give reference to Commission authorization, if any was required. State also the approximate number of customers added or lost and approximate annual revenues of each class of service. Each natural gas company must also state major new continuing sources of gas made available to it from purchases, development, purchase contract or otherwise, giving location and approximate total gas volumes available, period of contracts, and other parties to any such arrangements, etc. Obligations incurred as a result of issuance of securities or assumption of liabilities or guarantees including issuance of short-term debt and commercial paper having a maturity of one year or less. Give reference to FERC or State Commission authorization, as appropriate, and the amount of obligation or guarantee. Changes in articles of incorporation or amendments to charter: Explain the nature and purpose of such changes or amendments. State the estimated annual effect and nature of any important wage scale changes during the year. State briefly the status of any materially important legal proceedings pending at the end of the year, and the results of any such proceedings culminated during the year. Describe briefly any materially important transactions of the respondent not disclosed elsewhere in this report in which an officer, director, security holder reported on Pages 104 or 105 of the Annual Report Form No. 1, voting trustee, associated company or known associate of any of these persons was a party or in which any such person had a material interest. (Reserved.) If the important changes during the year relating to the respondent company appearing in the annual report to stockholders are applicable in every respect and furnish the data required by Instructions 1 to 11 above, such notes may be included on this page. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have occurred during the reporting period. In the event that the respondent participates in a cash management program(s) and its proprietary capital ratio is less than 30 percent please describe the significant events or transactions causing the proprietary capital ratio to be less than 30 percent, and the extent to which the respondent has amounts loaned or money advanced to its parent, subsidiary, or affiliated companies through a cash management program(s). Additionally, please describe plans, if any to regain at least a 30 percent proprietary ratio.

1. None
2. None
3. None
4. Please refer to PE's 2022 FERC Form 1, Note 4, "Leases", of the Notes to Financial Statements.
5. None
6. Potomac Edison (PE) has authorization from the Federal Energy Regulatory Commission (FERC) to incur short-term debt of up to $150 million through bank facilities and the internal utility money pool, and has authorization from the West Virginia Public Service Commission (WVPSC) to participate in the internal utility money pool. PE has the ability to borrow from its regulated affiliates and FirstEnergy to meet its short-term working capital requirements. FirstEnergy Service Company administers this money pool and tracks surplus funds of FirstEnergy and the respective regulated subsidiary, as well as proceeds available from bank borrowings. Companies receiving a loan under the money pool agreements must repay the principal amount of the loan, together with accrued interest, within 364 days of borrowing the funds. The rate of interest is the same for each company receiving a loan from their respective pool and is based on the average cost of funds available through the pool. The average interest rate of borrowings for the first six months of 2023 was 6.00%.
7. None
8. PE employees, represented by UWUA Local 102, were provided with a 3.5% general wage increase and market adjustments for some classifications, effective May 1, 2023.
9. See Notes 1 and 2 of Notes to Financial Statements relating to Regulatory Matters and Commitments and Contingencies.
10. Please refer to the “Certain Relationships and Related Person Transactions” section of FirstEnergy’s 2023 Proxy Statement.
12. None
13. Effective May 1, 2023, Belcher, Samuel L. was removed as President and Director. Effective May 2, 2023, Mroczynski, Mark D. was named President and Director.
14. None

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line No.	Title of Account (a)	Ref. Page No. (b)	Current Year End of Quarter/Year Balance (c)	Prior Year End Balance 12/31 (d)
1	UtilityPlantAbstract UTILITY PLANT
2	UtilityPlant Utility Plant (101-106, 114)	200	2,849,552,566	2,762,300,940
3	ConstructionWorkInProgress Construction Work in Progress (107)	200	107,524,393	120,848,661
4	UtilityPlantAndConstructionWorkInProgress TOTAL Utility Plant (Enter Total of lines 2 and 3)		2,957,076,959	2,883,149,601
5	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility (Less) Accum. Prov. for Depr. Amort. Depl. (108, 110, 111, 115)	200	1,169,205,921	1,151,785,981
6	UtilityPlantNet Net Utility Plant (Enter Total of line 4 less 5)		1,787,871,038	1,731,363,620
7	NuclearFuelInProcessOfRefinementConversionEnrichmentAndFabrication Nuclear Fuel in Process of Ref., Conv., Enrich., and Fab. (120.1)	202
8	NuclearFuelMaterialsAndAssembliesStockAccountMajorOnly Nuclear Fuel Materials and Assemblies-Stock Account (120.2)
9	NuclearFuelAssembliesInReactorMajorOnly Nuclear Fuel Assemblies in Reactor (120.3)
10	SpentNuclearFuelMajorOnly Spent Nuclear Fuel (120.4)
11	NuclearFuelUnderCapitalLeases Nuclear Fuel Under Capital Leases (120.6)
12	AccumulatedProvisionForAmortizationOfNuclearFuelAssemblies (Less) Accum. Prov. for Amort. of Nucl. Fuel Assemblies (120.5)	202
13	NuclearFuelNet Net Nuclear Fuel (Enter Total of lines 7-11 less 12)
14	UtilityPlantAndNuclearFuelNet Net Utility Plant (Enter Total of lines 6 and 13)		1,787,871,038	1,731,363,620
15	OtherElectricPlantAdjustments Utility Plant Adjustments (116)
16	GasStoredUndergroundNoncurrent Gas Stored Underground - Noncurrent (117)
17	OtherPropertyAndInvestmentsAbstract OTHER PROPERTY AND INVESTMENTS
18	NonutilityProperty Nonutility Property (121)		3,980,782	3,980,782
19	AccumulatedProvisionForDepreciationAndAmortizationOfNonutilityProperty (Less) Accum. Prov. for Depr. and Amort. (122)		116,797	119,979
20	InvestmentInAssociatedCompanies Investments in Associated Companies (123)
21	InvestmentInSubsidiaryCompanies Investment in Subsidiary Companies (123.1)	224	30,285,982	32,893,905
23	NoncurrentPortionOfAllowances Noncurrent Portion of Allowances	228
24	OtherInvestments Other Investments (124)
25	SinkingFunds Sinking Funds (125)
26	DepreciationFund Depreciation Fund (126)
27	AmortizationFundFederal Amortization Fund - Federal (127)
28	OtherSpecialFunds Other Special Funds (128)		49,819,327	44,052,446
29	SpecialFunds Special Funds (Non Major Only) (129)
30	DerivativeInstrumentAssetsLongTerm Long-Term Portion of Derivative Assets (175)
31	DerivativeInstrumentAssetsHedgesLongTerm Long-Term Portion of Derivative Assets - Hedges (176)
32	OtherPropertyAndInvestments TOTAL Other Property and Investments (Lines 18-21 and 23-31)		23,397,330	15,019,344
33	CurrentAndAccruedAssetsAbstract CURRENT AND ACCRUED ASSETS
34	CashAndWorkingFunds Cash and Working Funds (Non-major Only) (130)
35	Cash Cash (131)		35,000	35,000
36	SpecialDeposits Special Deposits (132-134)
37	WorkingFunds Working Fund (135)
38	TemporaryCashInvestments Temporary Cash Investments (136)
39	NotesReceivable Notes Receivable (141)
40	CustomerAccountsReceivable Customer Accounts Receivable (142)		30,320,447	40,064,776
41	OtherAccountsReceivable Other Accounts Receivable (143)		9,030,901	8,584,870
42	AccumulatedProvisionForUncollectibleAccountsCredit (Less) Accum. Prov. for Uncollectible Acct.-Credit (144)		6,557,293	8,484,443
43	NotesReceivableFromAssociatedCompanies Notes Receivable from Associated Companies (145)
44	AccountsReceivableFromAssociatedCompanies Accounts Receivable from Assoc. Companies (146)		74,552,294	60,967,162
45	FuelStock Fuel Stock (151)	227
46	FuelStockExpensesUndistributed Fuel Stock Expenses Undistributed (152)	227
47	Residuals Residuals (Elec) and Extracted Products (153)	227
48	PlantMaterialsAndOperatingSupplies Plant Materials and Operating Supplies (154)	227
49	Merchandise Merchandise (155)	227
50	OtherMaterialsAndSupplies Other Materials and Supplies (156)	227
51	NuclearMaterialsHeldForSale Nuclear Materials Held for Sale (157)	202/227
52	AllowanceInventoryAndWithheld Allowances (158.1 and 158.2)	228
53	NoncurrentPortionOfAllowances (Less) Noncurrent Portion of Allowances	228
54	StoresExpenseUndistributed Stores Expense Undistributed (163)	227
55	GasStoredCurrent Gas Stored Underground - Current (164.1)
56	LiquefiedNaturalGasStoredAndHeldForProcessing Liquefied Natural Gas Stored and Held for Processing (164.2-164.3)
57	Prepayments Prepayments (165)		18,126,300	26,615,830
58	AdvancesForGas Advances for Gas (166-167)
59	InterestAndDividendsReceivable Interest and Dividends Receivable (171)
60	RentsReceivable Rents Receivable (172)		2,321,536	1,787,832
61	AccruedUtilityRevenues Accrued Utility Revenues (173)		51,455,251	78,433,251
62	MiscellaneousCurrentAndAccruedAssets Miscellaneous Current and Accrued Assets (174)
63	DerivativeInstrumentAssets Derivative Instrument Assets (175)
64	DerivativeInstrumentAssetsLongTerm (Less) Long-Term Portion of Derivative Instrument Assets (175)
65	DerivativeInstrumentAssetsHedges Derivative Instrument Assets - Hedges (176)
66	DerivativeInstrumentAssetsHedgesLongTerm (Less) Long-Term Portion of Derivative Instrument Assets - Hedges (176)
67	CurrentAndAccruedAssets Total Current and Accrued Assets (Lines 34 through 66)		179,284,436	208,004,278
68	DeferredDebitsAbstract DEFERRED DEBITS
69	UnamortizedDebtExpense Unamortized Debt Expenses (181)		3,619,240	3,712,122
70	ExtraordinaryPropertyLosses Extraordinary Property Losses (182.1)	230a
71	UnrecoveredPlantAndRegulatoryStudyCosts Unrecovered Plant and Regulatory Study Costs (182.2)	230b
72	OtherRegulatoryAssets Other Regulatory Assets (182.3)	232	585,313,651	237,515,878
73	PreliminarySurveyAndInvestigationCharges Prelim. Survey and Investigation Charges (Electric) (183)		193,029	192,964
74	PreliminaryNaturalGasSurveyAndInvestigationChargesAndOtherPreliminarySurveyAndInvestigationCharges Preliminary Natural Gas Survey and Investigation Charges 183.1)
75	OtherPreliminarySurveyAndInvestigationCharges Other Preliminary Survey and Investigation Charges (183.2)
76	ClearingAccounts Clearing Accounts (184)		119,967	102,723
77	TemporaryFacilities Temporary Facilities (185)		408,415	382,461
78	MiscellaneousDeferredDebits Miscellaneous Deferred Debits (186)	233	70,692,195	69,158,663
79	DeferredLossesFromDispositionOfUtilityPlant Def. Losses from Disposition of Utility Plt. (187)
80	ResearchDevelopmentAndDemonstrationExpenditures Research, Devel. and Demonstration Expend. (188)	352	6,218	6,218
81	UnamortizedLossOnReacquiredDebt Unamortized Loss on Reaquired Debt (189)			542
82	AccumulatedDeferredIncomeTaxes Accumulated Deferred Income Taxes (190)	234	328,384,732	242,582,415
83	UnrecoveredPurchasedGasCosts Unrecovered Purchased Gas Costs (191)
84	DeferredDebits Total Deferred Debits (lines 69 through 83)		988,737,447	553,653,986
85	AssetsAndOtherDebits TOTAL ASSETS (lines 14-16, 32, 67, and 84)		2,979,290,251	2,508,041,228

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)
Line No.	Title of Account (a)	Ref. Page No. (b)	Current Year End of Quarter/Year Balance (c)	Prior Year End Balance 12/31 (d)
1	ProprietaryCapitalAbstract PROPRIETARY CAPITAL
2	CommonStockIssued Common Stock Issued (201)	250	223,850	223,850
3	PreferredStockIssued Preferred Stock Issued (204)	250
4	CapitalStockSubscribed Capital Stock Subscribed (202, 205)
5	StockLiabilityForConversion Stock Liability for Conversion (203, 206)
6	PremiumOnCapitalStock Premium on Capital Stock (207)
7	OtherPaidInCapital Other Paid-In Capital (208-211)	253	364,388,244	363,524,471
8	InstallmentsReceivedOnCapitalStock Installments Received on Capital Stock (212)	252
9	DiscountOnCapitalStock (Less) Discount on Capital Stock (213)	254
10	CapitalStockExpense (Less) Capital Stock Expense (214)	254b
11	RetainedEarnings Retained Earnings (215, 215.1, 216)	118	373,409,103	348,221,028
12	UnappropriatedUndistributedSubsidiaryEarnings Unappropriated Undistributed Subsidiary Earnings (216.1)	118	63,104,665	60,496,742
13	ReacquiredCapitalStock (Less) Reacquired Capital Stock (217)	250
14	NoncorporateProprietorship Noncorporate Proprietorship (Non-major only) (218)
15	AccumulatedOtherComprehensiveIncome Accumulated Other Comprehensive Income (219)	122(a)(b)	369,205	741,569
16	ProprietaryCapital Total Proprietary Capital (lines 2 through 15)		801,495,067	773,207,660
17	LongTermDebtAbstract LONG-TERM DEBT
18	Bonds Bonds (221)	256	675,000,000	675,000,000
19	ReacquiredBonds (Less) Reacquired Bonds (222)	256
20	AdvancesFromAssociatedCompanies Advances from Associated Companies (223)	256
21	OtherLongTermDebt Other Long-Term Debt (224)	256
22	UnamortizedPremiumOnLongTermDebt Unamortized Premium on Long-Term Debt (225)
23	UnamortizedDiscountOnLongTermDebtDebit (Less) Unamortized Discount on Long-Term Debt-Debit (226)
24	LongTermDebt Total Long-Term Debt (lines 18 through 23)		675,000,000	675,000,000
25	OtherNoncurrentLiabilitiesAbstract OTHER NONCURRENT LIABILITIES
26	ObligationsUnderCapitalLeaseNoncurrent Obligations Under Capital Leases - Noncurrent (227)		11,946,626	13,146,689
27	AccumulatedProvisionForPropertyInsurance Accumulated Provision for Property Insurance (228.1)
28	AccumulatedProvisionForInjuriesAndDamages Accumulated Provision for Injuries and Damages (228.2)		4,648,251	4,636,004
29	AccumulatedProvisionForPensionsAndBenefits Accumulated Provision for Pensions and Benefits (228.3)		3,715,075	3,646,007
30	AccumulatedMiscellaneousOperatingProvisions Accumulated Miscellaneous Operating Provisions (228.4)
31	AccumulatedProvisionForRateRefunds Accumulated Provision for Rate Refunds (229)
32	LongTermPortionOfDerivativeInstrumentLiabilities Long-Term Portion of Derivative Instrument Liabilities
33	LongTermPortionOfDerivativeInstrumentLiabilitiesHedges Long-Term Portion of Derivative Instrument Liabilities - Hedges
34	AssetRetirementObligations Asset Retirement Obligations (230)		263,181	250,946
35	OtherNoncurrentLiabilities Total Other Noncurrent Liabilities (lines 26 through 34)		20,573,133	21,679,646
36	CurrentAndAccruedLiabilitiesAbstract CURRENT AND ACCRUED LIABILITIES
37	NotesPayable Notes Payable (231)
38	AccountsPayable Accounts Payable (232)		27,694,742	41,676,063
39	NotesPayableToAssociatedCompanies Notes Payable to Associated Companies (233)		82,081,291	15,261,838
40	AccountsPayableToAssociatedCompanies Accounts Payable to Associated Companies (234)		28,291,395	52,540,313
41	CustomerDeposits Customer Deposits (235)		19,408,002	19,712,352
42	TaxesAccrued Taxes Accrued (236)	262	15,371,744	16,030,510
43	InterestAccrued Interest Accrued (237)		7,181,709	7,162,051
44	DividendsDeclared Dividends Declared (238)
45	MaturedLongTermDebt Matured Long-Term Debt (239)
46	MaturedInterest Matured Interest (240)
47	TaxCollectionsPayable Tax Collections Payable (241)		253,230	486,264
48	MiscellaneousCurrentAndAccruedLiabilities Miscellaneous Current and Accrued Liabilities (242)		71,853,977	15,696,434
49	ObligationsUnderCapitalLeasesCurrent Obligations Under Capital Leases-Current (243)		3,180,520	3,201,166
50	DerivativesInstrumentLiabilities Derivative Instrument Liabilities (244)
51	LongTermPortionOfDerivativeInstrumentLiabilities (Less) Long-Term Portion of Derivative Instrument Liabilities
52	DerivativeInstrumentLiabilitiesHedges Derivative Instrument Liabilities - Hedges (245)
53	LongTermPortionOfDerivativeInstrumentLiabilitiesHedges (Less) Long-Term Portion of Derivative Instrument Liabilities-Hedges
54	CurrentAndAccruedLiabilities Total Current and Accrued Liabilities (lines 37 through 53)		255,316,610	171,766,991
55	DeferredCreditsAbstract DEFERRED CREDITS
56	CustomerAdvancesForConstruction Customer Advances for Construction (252)		943,539	5,196,918
57	AccumulatedDeferredInvestmentTaxCredits Accumulated Deferred Investment Tax Credits (255)	266
58	DeferredGainsFromDispositionOfUtilityPlant Deferred Gains from Disposition of Utility Plant (256)
59	OtherDeferredCredits Other Deferred Credits (253)	269	396,134,083	108,734,893
60	OtherRegulatoryLiabilities Other Regulatory Liabilities (254)	278	185,322,741	210,927,287
61	UnamortizedGainOnReacquiredDebt Unamortized Gain on Reacquired Debt (257)
62	AccumulatedDeferredIncomeTaxesAcceleratedAmortizationProperty Accum. Deferred Income Taxes-Accel. Amort.(281)	272
63	AccumulatedDeferredIncomeTaxesOtherProperty Accum. Deferred Income Taxes-Other Property (282)		414,178,172	405,114,241
64	AccumulatedDeferredIncomeTaxesOther Accum. Deferred Income Taxes-Other (283)		230,326,906	136,413,592
65	DeferredCredits Total Deferred Credits (lines 56 through 64)		1,226,905,441	866,386,931
66	LiabilitiesAndOtherCredits TOTAL LIABILITIES AND STOCKHOLDER EQUITY (lines 16, 24, 35, 54 and 65)		2,979,290,251	2,508,041,228

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

STATEMENT OF INCOME
Quarterly Report in column (c) the current year to date balance. Column (c) equals the total of adding the data in column (g) plus the data in column (i) plus the data in column (k). Report in column (d) similar data for the previous year. This information is reported in the annual filing only. Enter in column (e) the balance for the reporting quarter and in column (f) the balance for the same three month period for the prior year. Report in column (g) the quarter to date amounts for electric utility function; in column (i) the quarter to date amounts for gas utility, and in column (k) the quarter to date amounts for other utility function for the current year quarter. Report in column (h) the quarter to date amounts for electric utility function; in column (j) the quarter to date amounts for gas utility, and in column (l) the quarter to date amounts for other utility function for the prior year quarter. If additional columns are needed, place them in a footnote. Annual or Quarterly if applicable Do not report fourth quarter data in columns (e) and (f) Report amounts for accounts 412 and 413, Revenues and Expenses from Utility Plant Leased to Others, in another utility column in a similar manner to a utility department. Spread the amount(s) over Lines 2 thru 26 as appropriate. Include these amounts in columns (c) and (d) totals. Report amounts in account 414, Other Utility Operating Income, in the same manner as accounts 412 and 413 above. Use page 122 for important notes regarding the statement of income for any account thereof. Give concise explanations concerning unsettled rate proceedings where a contingency exists such that refunds of a material amount may need to be made to the utility's customers or which may result in material refund to the utility with respect to power or gas purchases. State for each year effected the gross revenues or costs to which the contingency relates and the tax effects together with an explanation of the major factors which affect the rights of the utility to retain such revenues or recover amounts paid with respect to power or gas purchases. Give concise explanations concerning significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding affecting revenues received or costs incurred for power or gas purchases, and a summary of the adjustments made to balance sheet, income, and expense accounts. If any notes appearing in the report to stockholders are applicable to the Statement of Income, such notes may be included at page 122. Enter on page 122 a concise explanation of only those changes in accounting methods made during the year which had an effect on net income, including the basis of allocations and apportionments from those used in the preceding year. Also, give the appropriate dollar effect of such changes. Explain in a footnote if the previous year's/quarter's figures are different from that reported in prior reports. If the columns are insufficient for reporting additional utility departments, supply the appropriate account titles report the information in a footnote to this schedule.
Line No.	Title of Account (a)	(Ref.) Page No. (b)	Total Current Year to Date Balance for Quarter/Year (c)	Total Prior Year to Date Balance for Quarter/Year (d)	Current 3 Months Ended - Quarterly Only - No 4th Quarter (e)	Prior 3 Months Ended - Quarterly Only - No 4th Quarter (f)	Electric Utility Current Year to Date (in dollars) (g)	Electric Utility Previous Year to Date (in dollars) (h)	Gas Utiity Current Year to Date (in dollars) (i)	Gas Utility Previous Year to Date (in dollars) (j)	Other Utility Current Year to Date (in dollars) (k)	Other Utility Previous Year to Date (in dollars) (l)
1	UtilityOperatingIncomeAbstract UTILITY OPERATING INCOME
2	OperatingRevenues Operating Revenues (400)	300	406,111,002	464,944,469	173,183,010	204,705,279	406,111,002	464,944,469
3	OperatingExpensesAbstract Operating Expenses
4	OperationExpense Operation Expenses (401)	320	272,664,573	317,518,365	117,088,686	144,098,026	272,664,573	317,518,365
5	MaintenanceExpense Maintenance Expenses (402)	320	26,065,450	26,519,315	12,067,047	14,200,502	26,065,450	26,519,315
6	DepreciationExpense Depreciation Expense (403)	336	28,796,250	27,739,101	14,475,738	13,903,406	28,796,250	27,739,101
7	DepreciationExpenseForAssetRetirementCosts Depreciation Expense for Asset Retirement Costs (403.1)	336	184	184	92	92	184	184
8	AmortizationAndDepletionOfUtilityPlant Amort. & Depl. of Utility Plant (404-405)	336	2,392,523	1,888,743	1,264,014	916,929	2,392,523	1,888,743
9	AmortizationOfElectricPlantAcquisitionAdjustments Amort. of Utility Plant Acq. Adj. (406)	336
10	AmortizationOfPropertyLossesUnrecoveredPlantAndRegulatoryStudyCosts Amort. Property Losses, Unrecov Plant and Regulatory Study Costs (407)
11	AmortizationOfConversionExpenses Amort. of Conversion Expenses (407.2)
12	RegulatoryDebits Regulatory Debits (407.3)		1,182,170	2,808,711	1,685,532	1,436,610	1,182,170	2,808,711
13	RegulatoryCredits (Less) Regulatory Credits (407.4)		9,288,692	8,707,710	4,935,652	1,504,041	9,288,692	8,707,710
14	TaxesOtherThanIncomeTaxesUtilityOperatingIncome Taxes Other Than Income Taxes (408.1)	262	23,775,953	24,514,169	10,953,916	11,484,980	23,775,953	24,514,169
15	IncomeTaxesOperatingIncome Income Taxes - Federal (409.1)	262	7,310,005	625,761	9,639,121	1,235,042	7,310,005	625,761
16	IncomeTaxesUtilityOperatingIncomeOther Income Taxes - Other (409.1)	262	247,235	197,868	163,256	103,097	247,235	197,868
17	ProvisionsForDeferredIncomeTaxesUtilityOperatingIncome Provision for Deferred Income Taxes (410.1)	234, 272	139,444,059	45,476,269	121,225,290	16,941,981	139,444,059	45,476,269
18	ProvisionForDeferredIncomeTaxesCreditOperatingIncome (Less) Provision for Deferred Income Taxes-Cr. (411.1)	234, 272	125,577,686	36,681,962	109,811,758	15,303,434	125,577,686	36,681,962
19	InvestmentTaxCreditAdjustments Investment Tax Credit Adj. - Net (411.4)	266
20	GainsFromDispositionOfPlant (Less) Gains from Disp. of Utility Plant (411.6)
21	LossesFromDispositionOfServiceCompanyPlant Losses from Disp. of Utility Plant (411.7)
22	GainsFromDispositionOfAllowances (Less) Gains from Disposition of Allowances (411.8)
23	LossesFromDispositionOfAllowances Losses from Disposition of Allowances (411.9)
24	AccretionExpense Accretion Expense (411.10)		12,234	11,122	6,189	5,628	12,234	11,122
25	UtilityOperatingExpenses TOTAL Utility Operating Expenses (Enter Total of lines 4 thru 24)		368,122,822	418,929,620	160,716,957	187,447,486	368,122,822	418,929,620
27	NetUtilityOperatingIncome Net Util Oper Inc (Enter Tot line 2 less 25)		37,988,180	46,014,849	12,466,053	17,257,793	37,988,180	46,014,849
28	OtherIncomeAndDeductionsAbstract Other Income and Deductions
29	OtherIncomeAbstract Other Income
30	NonutilityOperatingIncomeAbstract Nonutilty Operating Income
31	RevenuesFromMerchandisingJobbingAndContractWork Revenues From Merchandising, Jobbing and Contract Work (415)		1,191,215	1,167,262	651,851	598,243
32	CostsAndExpensesOfMerchandisingJobbingAndContractWork (Less) Costs and Exp. of Merchandising, Job. & Contract Work (416)		670,231	453,253	363,124	222,217
33	RevenuesFromNonutilityOperations Revenues From Nonutility Operations (417)			452,178		226,089
34	ExpensesOfNonutilityOperations (Less) Expenses of Nonutility Operations (417.1)		43,548	15,554	22,414	5,988
35	NonoperatingRentalIncome Nonoperating Rental Income (418)		4,478	4,478	2,239	2,239
36	EquityInEarningsOfSubsidiaryCompanies Equity in Earnings of Subsidiary Companies (418.1)	119	2,626,533	3,351,330	958,635	1,215,439
37	InterestAndDividendIncome Interest and Dividend Income (419)		780,582	1,020,841	418,496	536,908
38	AllowanceForOtherFundsUsedDuringConstruction Allowance for Other Funds Used During Construction (419.1)		1,229,117	1,736,479	482,497	837,418
39	MiscellaneousNonoperatingIncome Miscellaneous Nonoperating Income (421)		567,490	1,063,918	324,616	762,092
40	GainOnDispositionOfProperty Gain on Disposition of Property (421.1)		21,491	20,189	21,491	20,189
41	OtherIncome TOTAL Other Income (Enter Total of lines 31 thru 40)		5,698,171	8,338,912	2,469,809	3,965,934
42	OtherIncomeDeductionsAbstract Other Income Deductions
43	LossOnDispositionOfProperty Loss on Disposition of Property (421.2)		34,384	49,719	50,975	39,856
44	MiscellaneousAmortization Miscellaneous Amortization (425)
45	Donations Donations (426.1)		154,155	134,206	84,029	75,852
46	LifeInsurance Life Insurance (426.2)		288,503	703,037	189,795	454,964
47	Penalties Penalties (426.3)		4,422	48,900		48,900
48	ExpendituresForCertainCivicPoliticalAndRelatedActivities Exp. for Certain Civic, Political & Related Activities (426.4)		144,502	240,390	69,282	115,632
49	OtherDeductions Other Deductions (426.5)		119,842	60,182	69,365	52,494
50	OtherIncomeDeductions TOTAL Other Income Deductions (Total of lines 43 thru 49)		100,034	1,236,434	18,094	787,698
51	TaxesApplicableToOtherIncomeAndDeductionsAbstract Taxes Applic. to Other Income and Deductions
52	TaxesOtherThanIncomeTaxesOtherIncomeAndDeductions Taxes Other Than Income Taxes (408.2)	262	13,693	13,012	6,847	6,506
53	IncomeTaxesFederal Income Taxes-Federal (409.2)	262	469,223	506,423	253,379	276,276
54	IncomeTaxesOther Income Taxes-Other (409.2)	262	191,712	203,140	103,523	110,821
55	ProvisionForDeferredIncomeTaxesOtherIncomeAndDeductions Provision for Deferred Inc. Taxes (410.2)	234, 272	6,211	5,808	6,211	5,808
56	ProvisionForDeferredIncomeTaxesCreditOtherIncomeAndDeductions (Less) Provision for Deferred Income Taxes-Cr. (411.2)	234, 272	357	329	357	329
57	InvestmentTaxCreditAdjustmentsNonutilityOperations Investment Tax Credit Adj.-Net (411.5)
58	InvestmentTaxCredits (Less) Investment Tax Credits (420)
59	TaxesOnOtherIncomeAndDeductions TOTAL Taxes on Other Income and Deductions (Total of lines 52-58)		680,482	728,054	369,603	399,082
60	NetOtherIncomeAndDeductions Net Other Income and Deductions (Total of lines 41, 50, 59)		4,917,655	6,374,424	2,118,300	2,779,154
61	InterestChargesAbstract Interest Charges
62	InterestOnLongTermDebt Interest on Long-Term Debt (427)		13,411,750	13,411,750	6,705,875	6,705,875
63	AmortizationOfDebtDiscountAndExpense Amort. of Debt Disc. and Expense (428)		92,883	92,883	46,442	46,442
64	AmortizationOfLossOnReacquiredDebt Amortization of Loss on Reaquired Debt (428.1)		542	2,163		1,081
65	AmortizationOfPremiumOnDebtCredit (Less) Amort. of Premium on Debt-Credit (429)
66	AmortizationOfGainOnReacquiredDebtCredit (Less) Amortization of Gain on Reaquired Debt-Credit (429.1)
67	InterestOnDebtToAssociatedCompanies Interest on Debt to Assoc. Companies (430)		1,943,945	27,487	1,171,694	26,574
68	OtherInterestExpense Other Interest Expense (431)		987,624	1,016,187	373,883	629,464
69	AllowanceForBorrowedFundsUsedDuringConstructionCredit (Less) Allowance for Borrowed Funds Used During Construction-Cr. (432)		1,326,907	697,586	720,018	336,921
70	NetInterestCharges Net Interest Charges (Total of lines 62 thru 69)		15,109,837	13,852,884	7,577,876	7,072,515
71	IncomeBeforeExtraordinaryItems Income Before Extraordinary Items (Total of lines 27, 60 and 70)		27,795,998	38,536,389	7,006,477	12,964,432
72	ExtraordinaryItemsAbstract Extraordinary Items
73	ExtraordinaryIncome Extraordinary Income (434)
74	ExtraordinaryDeductions (Less) Extraordinary Deductions (435)
75	NetExtraordinaryItems Net Extraordinary Items (Total of line 73 less line 74)
76	IncomeTaxesExtraordinaryItems Income Taxes-Federal and Other (409.3)	262
77	ExtraordinaryItemsAfterTaxes Extraordinary Items After Taxes (line 75 less line 76)
78	NetIncomeLoss Net Income (Total of line 71 and 77)		27,795,998	38,536,389	7,006,477	12,964,432

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

STATEMENT OF RETAINED EARNINGS
Do not report Lines 49-53 on the quarterly report. Report all changes in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed subsidiary earnings for the year. Each credit and debit during the year should be identified as to the retained earnings account in which recorded (Accounts 433, 436-439 inclusive). Show the contra primary account affected in column (b). State the purpose and amount for each reservation or appropriation of retained earnings. List first Account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow by credit, then debit items, in that order. Show dividends for each class and series of capital stock. Show separately the State and Federal income tax effect of items shown for Account 439, Adjustments to Retained Earnings. Explain in a footnote the basis for determining the amount reserved or appropriated. If such reservation or appropriation is to be recurrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumulated. If any notes appearing in the report to stockholders are applicable to this statement, attach them at page 122.
Line No.	Item (a)	Contra Primary Account Affected (b)	Current Quarter/Year Year to Date Balance (c)	Previous Quarter/Year Year to Date Balance (d)
	UnappropriatedRetainedEarningsAbstract UNAPPROPRIATED RETAINED EARNINGS (Account 216)
1	UnappropriatedRetainedEarnings Balance-Beginning of Period		348,221,028	300,262,805
2	ChangesAbstract Changes
3	AdjustmentsToRetainedEarningsAbstract Adjustments to Retained Earnings (Account 439)
4	AdjustmentsToRetainedEarningsCreditAbstract Adjustments to Retained Earnings Credit
4.1	AdjustmentsToRetainedEarningsCredit Retained Earnings Adjustment
9	AdjustmentsToRetainedEarningsCredit TOTAL Credits to Retained Earnings (Acct. 439)
10	AdjustmentsToRetainedEarningsDebitAbstract Adjustments to Retained Earnings Debit
15	AdjustmentsToRetainedEarningsDebit TOTAL Debits to Retained Earnings (Acct. 439)
16	BalanceTransferredFromIncome Balance Transferred from Income (Account 433 less Account 418.1)		25,169,465	35,185,059
17	AppropriationsOfRetainedEarningsAbstract Appropriations of Retained Earnings (Acct. 436)
22	AppropriationsOfRetainedEarnings TOTAL Appropriations of Retained Earnings (Acct. 436)
23	DividendsDeclaredPreferredStockAbstract Dividends Declared-Preferred Stock (Account 437)
29	DividendsDeclaredPreferredStock TOTAL Dividends Declared-Preferred Stock (Acct. 437)
30	DividendsDeclaredCommonStockAbstract Dividends Declared-Common Stock (Account 438)
30.1	DividendsDeclaredCommonStock Dividends on Common Stock
36	DividendsDeclaredCommonStock TOTAL Dividends Declared-Common Stock (Acct. 438)
37	TransfersFromUnappropriatedUndistributedSubsidiaryEarnings Transfers from Acct 216.1, Unapprop. Undistrib. Subsidiary Earnings		18,610	18,610
38	UnappropriatedRetainedEarnings Balance - End of Period (Total 1,9,15,16,22,29,36,37)		373,409,103	335,466,474
39	AppropriatedRetainedEarningsAbstract APPROPRIATED RETAINED EARNINGS (Account 215)
45	AppropriatedRetainedEarnings TOTAL Appropriated Retained Earnings (Account 215)
	AppropriatedRetainedEarningsAmortizationReserveFederalAbstract APPROP. RETAINED EARNINGS - AMORT. Reserve, Federal (Account 215.1)
46	AppropriatedRetainedEarningsAmortizationReserveFederal TOTAL Approp. Retained Earnings-Amort. Reserve, Federal (Acct. 215.1)
47	AppropriatedRetainedEarningsIncludingReserveAmortization TOTAL Approp. Retained Earnings (Acct. 215, 215.1) (Total 45,46)
48	RetainedEarnings TOTAL Retained Earnings (Acct. 215, 215.1, 216) (Total 38, 47) (216.1)		373,409,103	335,466,474
	UnappropriatedUndistributedSubsidiaryEarningsAbstract UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account Report only on an Annual Basis, no Quarterly)
49	UnappropriatedUndistributedSubsidiaryEarnings Balance-Beginning of Year (Debit or Credit)
50	EquityInEarningsOfSubsidiaryCompanies Equity in Earnings for Year (Credit) (Account 418.1)
51	DividendsReceived (Less) Dividends Received (Debit)
52	ChangesUnappropriatedUndistributedSubsidiaryEarningsCredits TOTAL other Changes in unappropriated undistributed subsidiary earnings for the year
53	UnappropriatedUndistributedSubsidiaryEarnings Balance-End of Year (Total lines 49 thru 52)

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

STATEMENT OF CASH FLOWS
Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term debt; (c) Include commercial paper; and (d) Identify separately such items as investments, fixed assets, intangibles, etc. Information about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation between "Cash and Cash Equivalents at End of Period" with related amounts on the Balance Sheet. Operating Activities - Other: Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing activities should be reported in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income taxes paid. Investing Activities: Include at Other (line 31) net cash outflow to acquire other companies. Provide a reconciliation of assets acquired with liabilities assumed in the Notes to the Financial Statements. Do not include on this statement the dollar amount of leases capitalized per the USofA General Instruction 20; instead provide a reconciliation of the dollar amount of leases capitalized with the plant cost.
Line No.	Description (See Instructions No.1 for explanation of codes) (a)	Current Year to Date Quarter/Year (b)	Previous Year to Date Quarter/Year (c)
1	NetCashFlowFromOperatingActivitiesAbstract Net Cash Flow from Operating Activities
2	NetIncomeLoss Net Income (Line 78(c) on page 117)	27,795,998	38,536,389
3	NoncashChargesCreditsToIncomeAbstract Noncash Charges (Credits) to Income:
4	DepreciationAndDepletion Depreciation and Depletion	31,201,191	29,639,150
5	NoncashAdjustmentsToCashFlowsFromOperatingActivities Amortization of (Specify) (footnote details)
5.1	NoncashAdjustmentsToCashFlowsFromOperatingActivitiesDescription Amortization (Deferral) of Regulatory Assets, Net	8,885,335	11,462,194
5.2	NoncashAdjustmentsToCashFlowsFromOperatingActivitiesDescription Retirement Benefits, Net of Payments	5,070,490	8,099,928
5.3	NoncashAdjustmentsToCashFlowsFromOperatingActivitiesDescription Pension and OPEB Mark-to-Market Adjustment	4,101,340
8	DeferredIncomeTaxesNet Deferred Income Taxes (Net)	13,872,227	8,799,786
9	InvestmentTaxCreditAdjustmentsNet Investment Tax Credit Adjustment (Net)
10	NetIncreaseDecreaseInReceivablesOperatingActivities Net (Increase) Decrease in Receivables	20,230,312	2,927,770
11	NetIncreaseDecreaseInInventoryOperatingActivities Net (Increase) Decrease in Inventory
12	NetIncreaseDecreaseInAllowancesInventoryOperatingActivities Net (Increase) Decrease in Allowances Inventory
13	NetIncreaseDecreaseInPayablesAndAccruedExpensesOperatingActivities Net Increase (Decrease) in Payables and Accrued Expenses	40,718,452	6,872,202
14	NetIncreaseDecreaseInOtherRegulatoryAssetsOperatingActivities Net (Increase) Decrease in Other Regulatory Assets
15	NetIncreaseDecreaseInOtherRegulatoryLiabilitiesOperatingActivities Net Increase (Decrease) in Other Regulatory Liabilities
16	AllowanceForOtherFundsUsedDuringConstructionOperatingActivities (Less) Allowance for Other Funds Used During Construction	1,229,117	1,736,479
17	UndistributedEarningsFromSubsidiaryCompaniesOperatingActivities (Less) Undistributed Earnings from Subsidiary Companies	2,626,533	3,351,330
18	OtherAdjustmentsToCashFlowsFromOperatingActivities Other (provide details in footnote):
18.1	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Other (provide details in footnote):	(a) 12,999,156	6,413,209
18.2	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Contributions in Aid of Construction	13,379,715	13,741,480
18.3	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Deferred Purchase Power and Other Costs, Net	31,163,763	8,961,759
18.4	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Change in Cash Collateral, Net	5,010,544	12,109,581
22	NetCashFlowFromOperatingActivities Net Cash Provided by (Used in) Operating Activities (Total of Lines 2 thru 21)	38,443,695	94,607,861
24	CashFlowsFromInvestmentActivitiesAbstract Cash Flows from Investment Activities:
25	ConstructionAndAcquisitionOfPlantIncludingLandAbstract Construction and Acquisition of Plant (including land):
26	GrossAdditionsToUtilityPlantLessNuclearFuelInvestingActivities Gross Additions to Utility Plant (less nuclear fuel)	98,950,985	84,326,962
27	GrossAdditionsToNuclearFuelInvestingActivities Gross Additions to Nuclear Fuel
28	GrossAdditionsToCommonUtilityPlantInvestingActivities Gross Additions to Common Utility Plant
29	GrossAdditionsToNonutilityPlantInvestingActivities Gross Additions to Nonutility Plant
30	AllowanceForOtherFundsUsedDuringConstructionInvestingActivities (Less) Allowance for Other Funds Used During Construction	1,229,117	1,736,479
31	OtherConstructionAndAcquisitionOfPlantInvestmentActivities Other (provide details in footnote):
31.1	OtherConstructionAndAcquisitionOfPlantInvestmentActivitiesDescription Other (provide details in footnote):
34	CashOutflowsForPlant Cash Outflows for Plant (Total of lines 26 thru 33)	97,721,868	82,590,483
36	AcquisitionOfOtherNoncurrentAssets Acquisition of Other Noncurrent Assets (d)
37	ProceedsFromDisposalOfNoncurrentAssets Proceeds from Disposal of Noncurrent Assets (d)
39	InvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompanies Investments in and Advances to Assoc. and Subsidiary Companies
40	ContributionsAndAdvancesFromAssociatedAndSubsidiaryCompanies Contributions and Advances from Assoc. and Subsidiary Companies		4,681,856
41	DispositionOfInvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompaniesAbstract Disposition of Investments in (and Advances to)
42	DispositionOfInvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompanies Disposition of Investments in (and Advances to) Associated and Subsidiary Companies
44	PurchaseOfInvestmentSecurities Purchase of Investment Securities (a)
45	ProceedsFromSalesOfInvestmentSecurities Proceeds from Sales of Investment Securities (a)
46	LoansMadeOrPurchased Loans Made or Purchased
47	CollectionsOnLoans Collections on Loans
49	NetIncreaseDecreaseInReceivablesInvestingActivities Net (Increase) Decrease in Receivables
50	NetIncreaseDecreaseInInventoryInvestingActivities Net (Increase) Decrease in Inventory
51	NetIncreaseDecreaseInAllowancesHeldForSpeculationInvestingActivities Net (Increase) Decrease in Allowances Held for Speculation
52	NetIncreaseDecreaseInPayablesAndAccruedExpensesInvestingActivities Net Increase (Decrease) in Payables and Accrued Expenses
53	OtherAdjustmentsToCashFlowsFromInvestmentActivities Other (provide details in footnote):
53.1	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Asset Removal Costs	7,530,564	5,599,085
53.2	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Other (provide details in footnote):	66	149
57	CashFlowsProvidedFromUsedInInvestmentActivities Net Cash Provided by (Used in) Investing Activities (Total of lines 34 thru 55)	105,252,498	83,507,861
59	CashFlowsFromFinancingActivitiesAbstract Cash Flows from Financing Activities:
60	ProceedsFromIssuanceAbstract Proceeds from Issuance of:
61	ProceedsFromIssuanceOfLongTermDebtFinancingActivities Long-Term Debt (b)
62	ProceedsFromIssuanceOfPreferredStockFinancingActivities Preferred Stock
63	ProceedsFromIssuanceOfCommonStockFinancingActivities Common Stock
64	OtherAdjustmentsToCashFlowsFromFinancingActivities Other (provide details in footnote):
64.1	OtherAdjustmentsToCashFlowsFromFinancingActivitiesDescription Other (provide details in footnote):
66	NetIncreaseInShortTermDebt Net Increase in Short-Term Debt (c)	66,819,453
67	OtherAdjustmentsByOutsideSourcesToCashFlowsFromFinancingActivities Other (provide details in footnote):
67.1	DescriptionForOtherAdjustmentsByOutsideSourcesToCashFlowsFromFinancingActivities Other (provide details in footnote):
70	CashProvidedByOutsideSources Cash Provided by Outside Sources (Total 61 thru 69)	66,819,453
72	PaymentsForRetirementAbstract Payments for Retirement of:
73	PaymentsForRetirementOfLongTermDebtFinancingActivities Long-term Debt (b)
74	PaymentsForRetirementOfPreferredStockFinancingActivities Preferred Stock
75	PaymentsForRetirementOfCommonStockFinancingActivities Common Stock
76	OtherRetirementsOfBalancesImpactingCashFlowsFromFinancingActivities Other (provide details in footnote):
76.1	DescriptionOfOtherRetirementsImpactingCashFlowsFromFinancingActivities Other (provide details in footnote):	10,650
78	NetDecreaseInShortTermDebt Net Decrease in Short-Term Debt (c)
80	DividendsOnPreferredStock Dividends on Preferred Stock
81	DividendsOnCommonStock Dividends on Common Stock
83	CashFlowsProvidedFromUsedInFinancingActivities Net Cash Provided by (Used in) Financing Activities (Total of lines 70 thru 81)	66,808,803
85	NetIncreaseDecreaseInCashAndCashEquivalentsAbstract Net Increase (Decrease) in Cash and Cash Equivalents
86	NetIncreaseDecreaseInCashAndCashEquivalents Net Increase (Decrease) in Cash and Cash Equivalents (Total of line 22, 57 and 83)		11,100,000
88	CashAndCashEquivalents Cash and Cash Equivalents at Beginning of Period	35,000	635,000
90	CashAndCashEquivalents Cash and Cash Equivalents at End of Period	35,000	11,735,000

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

FOOTNOTE DATA

(a) Concept: OtherAdjustmentsToCashFlowsFromOperatingActivities







Schedule Page: 120 Line No.: 18 Column: b

2023
Other Operating:

Change in Prepayments and Other Current Assets	$	8,489,530

Under/Over Recovery of Revenue from PJM	1,360,319
Other	3,149,307
	$	12,999,156

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

NOTES TO FINANCIAL STATEMENTS

Use the space below for important notes regarding the Balance Sheet, Statement of Income for the year, Statement of Retained Earnings for the year, and Statement of Cash Flows, or any account thereof. Classify the notes according to each basic statement, providing a subheading for each statement except where a note is applicable to more than one statement.
Furnish particulars (details) as to any significant contingent assets or liabilities existing at end of year, including a brief explanation of any action initiated by the Internal Revenue Service involving possible assessment of additional income taxes of material amount, or of a claim for refund of income taxes of a material amount initiated by the utility. Give also a brief explanation of any dividends in arrears on cumulative preferred stock.
For Account 116, Utility Plant Adjustments, explain the origin of such amount, debits and credits during the year, and plan of disposition contemplated, giving references to Commission orders or other authorizations respecting classification of amounts as plant adjustments and requirements as to disposition thereof.
Where Accounts 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give an explanation, providing the rate treatment given these items. See General Instruction 17 of the Uniform System of Accounts.
Give a concise explanation of any retained earnings restrictions and state the amount of retained earnings affected by such restrictions.
If the notes to financial statements relating to the respondent company appearing in the annual report to the stockholders are applicable and furnish the data required by instructions above and on pages 114-121, such notes may be included herein.
For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not misleading. Disclosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be omitted.
For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred which have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of long-term contracts; capitalization including significant new borrowings or modifications of existing financing agreements; and changes resulting from business combinations or dispositions. However were material contingencies exist, the disclosure of such matters shall be provided even though a significant change since year end may not have occurred.
Finally, if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are applicable and furnish the data required by the above instructions, such notes may be included herein.

GLOSSARY OF TERMS

The following abbreviations and acronyms may be used in these financial statements to identify The Potomac Edison Company and its current and former affiliated companies:


AE Supply			Allegheny Energy Supply Company, LLC, an unregulated generation subsidiary of FE
AGC			Allegheny Generating Company, a generation subsidiary of MP
ATSI			American Transmission Systems, Incorporated, a subsidiary of FET, which owns and operates transmission facilities
CEI			The Cleveland Electric Illuminating Company, an Ohio electric utility operating subsidiary of FE
FE			FirstEnergy Corp., a public utility holding company
FELHC, Inc.			FirstEnergy License Holding Company
FENOC			Energy Harbor Nuclear Corp. (formerly known as FirstEnergy Nuclear Operating Company), a subsidiary of EH, which operates NG’s nuclear generating facilities
FES			Energy Harbor LLC. (formerly known as FirstEnergy Solutions Corp.), a subsidiary of EH, which provides energy related products and services
FES Debtors			FENOC, FES, and FES' subsidiaries as of March 21. 2018
FESC			FirstEnergy Service Company, which provides legal, financial, and other corporate support services
FET			FirstEnergy Transmission, LLC, the parent company of ATSI, KATCo, MAIT and TrAIL, and has a joint venture in PATH
FEV			FirstEnergy Ventures Corp., which invests in certain unregulated enterprises and business ventures
FirstEnergy			FirstEnergy Corp., together with its consolidated subsidiaries
Global Holding			Global Mining Holding Company, LLC, a joint venture between FEV, WMB Marketing Ventures, LLC and Pinesdale LLC
GPU			GPU, Inc., former parent of JCP&L, ME and PN, that merged with FE on November 7, 2001
JCP&L			Jersey Central Power & Light Company, a New Jersey electric utility operating company
KATCo			Keystone Appalachian Transmission Company, a subsidiary of FET
MAIT			Mid-Atlantic Interstate Transmission, LLC, a subsidiary of FET, which owns and operates transmission facilities
ME			Metropolitan Edison Company, a Pennsylvania electric utility operating subsidiary of FE
MP			Monongahela Power Company, a West Virginia electric utility operating subsidiary of FE
OE			Ohio Edison Company, an Ohio electric utility operating subsidiary of FE
Ohio Companies			CEI, OE and TE
PATH			Potomac-Appalachian Transmission Highline, LLC, a joint venture between FE and a subsidiary of AEP
PATH-Allegheny			PATH Allegheny Transmission Company, LLC
PATH-WV			PATH West Virginia Transmission Company, LLC
PE			The Potomac Edison Company, a Maryland and West Virginia electric utility operating subsidiary of FE
Penn			Pennsylvania Power Company, a Pennsylvania electric utility operating subsidiary of OE
Pennsylvania Companies			ME, PN, Penn and WP
PN			Pennsylvania Electric Company, a Pennsylvania electric utility operating subsidiary of FE
Signal Peak			Signal Peak Energy, LLC, an indirect subsidiary of Global Holding that owns mining operations near Roundup, Montana
TE			The Toledo Edison Company, an Ohio electric utility operating subsidiary of FE
TrAIL			Trans-Allegheny Interstate Line Company, a subsidiary of FET, which owns and operates transmission facilities
Transmission Companies			ATSI, MAIT and TrAIL
Utilities			OE, CEI, TE, Penn, JCP&L, ME, PN, MP, PE and WP
WP			West Penn Power Company, a Pennsylvania electric utility operating subsidiary of FE

The following abbreviations and acronyms may be used to identify frequently used terms in these financial statements:
2021 Credit Facilities			Collectively, the six separate senior unsecured five-year syndicated revolving credit facilities entered into by FE, FET, the Utilities, and the Transmission Companies, on October 18, 2021
2023 Notes			FE’s 4.25% Notes, Series B, due 2023
2031 Notes			FE’s 7.375% Notes, Series C, due 2031
2047 Notes			FE’s 4.85% Notes, Series C, due 2047
ACE			Affordable Clean Energy
ADIT			Accumulated Deferred Income Taxes
AEP			American Electric Power Company, Inc.


AEPSC			American Electric Power Service Corporation
AFS			Available-for-sale
AFSI			Adjusted Financial Statement Income
AFUDC			Allowance for Funds Used During Construction
AMI			Advance Metering Infrastructure
AOCI			Accumulated Other Comprehensive Income (Loss)
ARO			Asset Retirement Obligation
ARP			Alternative Revenue Program
ASC			Accounting Standard Codification
ASU			Accounting Standards Update
BGS			Basic Generation Service
Brookfield			North American Transmission Company II LLC, a controlled investment vehicle entity of Brookfield Infrastructure Partners
Brookfield Guarantors			Brookfield Super-Core Infrastructure Partners L.P., Brookfield Super-Core Infrastructure Partners (NUS) L.P., and Brookfield Super-Core Infrastructure Partners (ER) SCSp
CAA			Clean Air Act
CCR			Coal Combustion Residuals
CERCLA			Comprehensive Environmental Response, Compensation, and Liability Act of 1980
CFR			Code of Federal Regulations
CO2			Carbon Dioxide
COVID-19			Coronavirus disease
CPP			EPA's Clean Power Plan
CSAPR			Cross-State Air Pollution Rule
CSR			Conservation Support Rider
CTA			Consolidated Tax Adjustment
CWA			Clean Water Act
D.C. Circuit			United States Court of Appeals for the District of Columbia Circuit
DCR			Delivery Capital Recovery
DLS			Detailed Load Study
DMR			Distribution Modernization Rider
DPA			Deferred Prosecution Agreement entered into on July 21, 2021 between FE and S.D. Ohio
DSIC			Distribution System Improvement Charge
DSP			Default Service Plan
EDC			Electric Distribution Company
EDCP			Executive Deferred Compensation Plan
EE&C			Energy Efficiency and Conservation
EEI			Edison Electric Institute
EGS			Electric Generation Supplier
EGU			Electric Generation Units
EH			Energy Harbor Corp.
ELG			Effluent Limitation Guidelines
EmPOWER Maryland			EmPOWER Maryland Energy Efficiency Act
ENEC			Expanded Net Energy Cost
EPA			United States Environmental Protection Agency
EPS			Earnings per Share
ERO			Electric Reliability Organization
ESG			Environmental, Social, Corporate Governance
ESP IV			Electric Security Plan IV
Exchange Act			Securities and Exchange Act of 1934, as amended
FAC			Facility Study
Facebook®			Facebook is a registered trademark of Facebook, Inc.
FASB			Financial Accounting Standards Board
FCA			Financial Conduct Authority
FE Board			FE Board of Directors
FE Revolving Facility			FE and the Utilities’ former five-year syndicated revolving credit facility, as amended, and replaced by the 2021 Credit Facilities on October 18, 2021


FEAS			Feasibility Study
FERC			Federal Energy Regulatory Commission
FET Board			The Board of Directors of FET
FET LLC Agreement			Third Amended and Restated Limited Liability Company Operating Agreement of FET
FET P&SA			Purchase and Sale Agreement entered into on November 6, 2021, by and between FE, FET, Brookfield and Brookfield Guarantors
FET Revolving Facility			FET and certain of its subsidiaries’ former five-year syndicated revolving credit facility, as amended, and replaced by the 2021 Credit Facilities on October 18, 2021
Fitch			Fitch Ratings Service
FMB			First Mortgage Bond
FPA			Federal Power Act
FTR			Financial Transmission Right
GAAP			Accounting Principles Generally Accepted in the United States of America
GHG			Greenhouse Gases
HB 6			House Bill 6, as passed by Ohio's 133rd General Assembly
ILS			Initial Load Study
IRA of 2022			Inflation Reduction Act of 2022
IRS			Internal Revenue Service
LED			Light Emitting Diode
LIBOR			London Inter-Bank Offered Rate
LOC			Letter of Credit
LTIIPs			Long-Term Infrastructure Improvement Plans
MDPSC			Maryland Public Service Commission
MGP			Manufactured Gas Plants
MISO			Midcontinent Independent System Operator, Inc.
Moody's			Moody’s Investors Service, Inc.
MW			Megawatt
MWH			Megawatt-hour
N.D. Ohio			Federal District Court, Northern District of Ohio
NAAQS			National Ambient Air Quality Standards
NCI			Noncontrolling Interest
NERC			North American Electric Reliability Corporation
NJ Rate Counsel			New Jersey Division of Rate Counsel
NJBPU			New Jersey Board of Public Utilities
NOL			Stipulation and Recommendation, dated November 1, 2021, entered into by and among the Ohio Companies, the OCC, PUCO Staff, and several other signatories.
NOx			Nitrogen Oxide
NUG			Non-Utility Generation
NYPSC			New York State Public Service Commission
OAG			Ohio Attorney General
OCA			Office of Consumer Advocate
OCC			Ohio Consumers' Counsel
ODSA			Ohio Development Service Agency
Ohio Stipulation			On November 1, 2021, the Ohio Companies, together with the OCC, PUCO Staff, and several other signatories, entered into a unanimous Stipulation and Recommendation with the intent of resolving the ongoing energy efficiency rider audits, various SEET proceedings, including the Ohio Companies’ 2017 SEET proceeding, and the Ohio Companies’ quadrennial ESP review, each of which was pending before the PUCO
OPEB			Other Post-Employment Benefits
OPIC			Other Paid-in Capital
OVEC			Ohio Valley Electric Corporation
PA			Pre-Approval
PJM			PJM Interconnection, LLC
PJM Tariff			PJM Open Access Transmission Tariff
POLR			Provider of Last Resort
PPA			Purchase Power Agreement


PPUC			Pennsylvania Public Utility Commission
PUCO			Public Utilities Commission of Ohio
RCRA			Resource Conservation and Recovery Act
Recoupment Policy			FirstEnergy Executive Compensation Recoupment Policy
Regulation FD			Regulation Fair Disclosure promulgated by the SEC
RFC			ReliabilityFirst Corporation
RFP			Request for Proposal
RGGI			Regional Greenhouse Gas Initiative
ROE			Return on Equity
RTO			Regional Transmission Organization
S&P			Standard & Poor’s Ratings Service
S.D. Ohio			Southern District of Ohio
SBC			Societal Benefits Charge
SEC			United States Securities and Exchange Commission
SEET			Significantly Excessive Earnings Test
SF6			Sulfur Hexafluoride
SIP			State Implementation Plan(s) Under the Clean Air Act
SIS			System Impact Study
SLC			Special Litigation Committee of the FE Board
SO2			Sulfur Dioxide
SOFR			Secured Overnight Financing Rate
SOS			Standard Offer Service
SREC			Solar Renewable Energy Credit
SSO			Standard Offer Service
Tax Act			Tax Cuts and Jobs Act adopted December 22, 2017
TMI-1			Three Mile Island Unit 1
TO			Transmission Owner
Twitter®			Twitter is a registered trademark of Twitter, Inc.
VAR			Volt-Amps Reactive, the measuring unit for reactive power
VIE			Variable Interest Entity
VSCC			Virginia State Corporation Commission
WVPSC			Public Service Commission of West Virginia

These financial statements and related notes should be read in conjunction with the financial statements and notes included in the FERC Form 1 Annual Report for the year ended December 31, 2022 for PE. Reference is made to such notes in the Annual Report which substantially duplicate the required disclosures in this Quarterly Report FERC Form 3-Q and are omitted. Disclosure of significant changes or material events subsequent to the end of the 2022 Annual Report is reflected in the following Quarterly Report Form 3-Q notes.

1. REGULATORY MATTERS

STATE REGULATION

PE's retail rates, conditions of service, issuance of securities and other matters are subject to regulation in Maryland by the MDPSC and in West Virginia by the WVPSC. The transmission operations of PE in Virginia are subject to certain regulations of the VSCC. The key terms of PE's current rate orders for distribution customer billings, which have been effective since February 2015 and March 2019 for West Virginia and Maryland, respectively, include allowed debt/equity ratios of 54%/46% and 47%/53%, respectively, and an allowed ROE of 9.65% for Maryland. The WVPSC-approved settlement agreement for its West Virginia rates did not disclose ROE.

MARYLAND

PE operates under MDPSC approved base rates that were effective as of March 23, 2019. PE also provides SOS pursuant to a combination of settlement agreements, MDPSC orders and regulations, and statutory provisions. SOS supply is competitively procured in the form of rolling contracts of varying lengths through periodic auctions that are overseen by the MDPSC and a third-party monitor. Although settlements with respect to SOS supply for PE customers have expired, service continues in the same manner until changed by order of the MDPSC. PE recovers its costs plus a return for providing SOS.

On March 22, 2023, PE filed a base rate case with the MDPSC, utilizing a test year based on twelve months of actual 2022 data. The base rate case requests an annual net increase in base distribution rates of $50.4 million, plus a request to establish a regulatory asset (or liability) to recover (or refund) in a subsequent base rate case the net differences between the amount of pension and OPEB expense requested in the proceeding (based on average expense from 2018 to 2022) and the actual annual amount each year using the delayed recognition method. The rate case additionally requests approval to continue an Electric Distribution Investment Surcharge to fund three service reliability and resiliency programs, two new proposed programs to assist low-income customers and cost recovery of certain expenses associated with PE’s pilot electric vehicle charger program and its COVID-19 pandemic response. In July 2023, testimony was filed by the MDPSC Staff and the Maryland Office of People’s Counsel recommending a base distribution rate increase of $29.3 million and $19.8 million, respectively. Evidentiary hearings ended on July 28, 2023. PE expects that new rates will be effective in the fourth quarter of 2023.

The EmPOWER Maryland program requires each electric utility to file a plan to reduce electric consumption and demand 0.2% per year, up to the ultimate goal of 2% annual savings, for the duration of the 2021-2023 EmPOWER Maryland program cycles to the extent the MDPSC determines that cost-effective programs and services are available. PE's approved 2021-2023 EmPOWER Maryland plan continues and expands upon prior years' programs for a projected total investment of approximately $148 million over the three-year period. PE recovers program investments with a return through an annually reconciled surcharge, with most costs subject to recovery over a five-year period with a return on the unamortized balance. On October 28, 2022, PE submitted its plan, as ordered by the MDPSC, to recover all unamortized balances by the scheduled expiration of the EmPOWER program on December 31, 2029. At the further direction of the MDPSC, PE filed a revised plan on January 11, 2023. On August 1, 2023, PE filed its proposed plan for the 2024-2026 cycle. At the direction of the MDPSC, Maryland utilities are required to address GHG reductions in addition to energy efficiency, and to provide plans for three scenarios with low, medium, and high GHG goals. PE’s projected costs for the three scenarios over the three-year cycle are $310 million, $354 million, and $510 million, respectively. Maryland law only allows for the utility to recover lost distribution revenue attributable to energy efficiency or demand reduction programs through a base rate case proceeding.

On April 17, 2023, PE submitted a proposal to the MDPSC seeking approval to end its PPA with the Warrior Run generating station. The PPA for Warrior Run was a requirement of the Public Utility Regulatory Policies Act of 1978. PE’s Maryland customers currently pay a surcharge on their electric bill in connection with the Warrior Run PPA, which fluctuates from year to year based on the difference between what PE pays for the output of the plant and what PE is able to recover by reselling that output into PJM. PE negotiated a termination of the PPA requiring it to pay Warrior Run, subject to MDPSC approval, a fixed amount of $51 million annually through 2029, for a total of $357 million. During the second quarter of 2023, a liability was established for the $357 million termination fee, of which $55 million was included in “Other current liabilities” and $302 million in “Other non-current liabilities”, and as the cost of the termination fee will be recovered through the current surcharge, an offsetting regulatory asset was established on FirstEnergy’s Consolidated Balance Sheets, and results in no impact to FirstEnergy’s or PE’s current or future earnings and is expected to result in savings for PE’s Maryland customers. The MDPSC approved the termination on June 21, 2023, and the termination became effective on June 28, 2023.

WEST VIRGINIA

MP and PE provide electric service to all customers through traditional cost-based, regulated utility ratemaking and operate under WVPSC-approved rates that became effective in February 2015. MP and PE recover net power supply costs, including fuel costs, purchased power costs and related expenses, net of related market sales revenue through the ENEC. MP’s and PE’s ENEC rate is updated annually.

On August 25, 2022, MP and PE filed with the WVPSC their annual ENEC case requesting an increase in ENEC rates of $183.8 million beginning January 1, 2023, which represents a 12.2% increase to the rates then in effect. The increase was driven by an underrecovery during the review period (July 1, 2021, to June 30, 2022) of approximately $145 million due to higher coal, reagent, and emission allowance expenses. This filing additionally addresses, among other things, the WVPSC’s May 2022 request for a prudence review of current rates. At a hearing on December 8, 2022, the parties in the case presented a unanimous settlement to increase rates by approximately $92 million, effective January 1, 2023, and carry over to MP and PE’s 2023 ENEC case, approximately $92 million at a carrying charge of 4%. In an order dated December 30, 2022, the WVPSC approved the settlement with respect to the proposed rate increase, but MP and PE rates remain subject to a prudence review in their 2023 ENEC case. The order also instructed MP to evaluate the feasibility of purchasing the 1,200 MW Pleasants Power Station and file a summary of the evaluation, which MP and PE filed on March 31, 2023. Among other things, the filing by MP and PE, noted that the final analysis to determine if the proposed transaction would be in the best interests of MP, PE and their customers would not be complete before the currently scheduled date for Pleasants Power Station to close, proposed an interim solution to preserve Pleasants’ operations while MP and PE completed their analysis, and outlined certain WVPSC actions needed to facilitate the interim solution, including a temporary surcharge for costs to preserve its operations. Based on the WVPSC procedural order, comments were filed on April 14, 2023, a public hearing was held on April 20, 2023, and an evidentiary hearing occurred on April 21, 2023. On April 24, 2023, the WVPSC issued an order approving MP and PE’s interim solution request, authorizing negotiations with the owner of Pleasants for a letter of intent, the terms of which will provide, among other things, for the reimbursement of certain expenses necessary to keep Pleasants in operating condition and directing MP and PE to file the letter of intent for approval with the WVPSC. Once approved, MP and PE expected to establish a surcharge to recover the costs incurred under the letter of intent. At the request of the WVPSC, MP and PE filed a status report on May 24, 2023, regarding the ongoing negotiations and MP and PE’s analysis. Subsequently, the owner of Pleasants entered into an agreement to sell Pleasants to an indirect wholly owned subsidiary of Omnis Global Technologies, LLC, which transaction closed on August 1, 2023. As a result, MP and PE have ceased consideration of the possible purchase of Pleasants, and on August 3, 2023, filed a status report with the WVPSC recommending that the proceeding be closed and removed from the WVPSC’s active docket.

On November 22, 2021, MP and PE filed with the WVPSC their plan to construct 50 MWs of solar generation at five sites in West Virginia. The plan includes a tariff to offer solar power to West Virginia customers and cost recovery for MP and PE through a surcharge for any solar investment not fully subscribed by their customers. A hearing was held in mid-March 2022 and on April 21, 2022, the WVPSC issued an order approving, effective May 1, 2022, the requested tariff and requiring MP and PE to subscribe at least 85% of the planned 50 MWs before seeking final tariff approval. MP and PE must seek separate approval from the WVPSC to recover any solar generation costs in excess of the approved tariff. On April 24, 2023, MP and PE sought final tariff approval from the WVPSC for three of the five solar sites, representing 30 MWs of generation, and requested approval of a surcharge to recover any costs above the final approved tariff. The first solar generation site is expected to be in-service by the end of 2023 and all construction completed at the other sites no later than the end of 2025 at a total investment cost of approximately $110 million.

On January 13, 2023, MP and PE filed a request with the WVPSC seeking approval of new depreciation rates for existing and future capital assets. Specifically, MP and PE are seeking to increase depreciation expense by approximately $76 million per year, primarily for regulated generation-related assets. Any depreciation rates approved by the WVPSC would not become effective until new base rates were established. Staff filed testimony recommending a $33.4 million increase and Consumer Advocate recommended a $300 thousand increase. Evidentiary hearings have been set for August 23, 2023.

On March 2, 2023, the WVPSC ordered an audit of MP and PE focused on (i) the lobbying and promotional/image building expenses, including those related to HB 6, incurred by MP and PE from 2018 to 2022 (ii) intra-corporate charges, (iii) the accounting for charges included in the ENEC cost recovery accounts of MP and PE during the same time period, and (iv) review and report on the findings, including those specific to MP and PE, set forth in the FERC Audit described below as well as a review and report of the responses by MP and PE thereto. The audit is expected to begin in August 2023 and conclude by year-end with the findings incorporated into the base rate case currently pending before the WVPSC.

On May 31, 2023, MP and PE filed a base rate case with the WVPSC requesting a total revenue increase of approximately $207 million utilizing a test year of 2022 with adjustments plus a request to establish a regulatory asset (or liability) to recover (or refund) in a subsequent base rate case the net differences between the amount of pension and OPEB expense requested in the proceeding (based on average expense from 2018 to 2022) and the actual annual amount each year using the delayed recognition method. Among other things, the increase includes the approximate $76 million requested in a depreciation case filed on January 13, 2023, and described more fully above, and amounts to support a new low-income customer advocacy

program, storm restoration work and service reliability investments. New rates are expected to be effective March 2024. A hearing has been set for late January 2024.

FERC REGULATORY MATTERS

Under the FPA, FERC regulates rates for interstate wholesale sales, transmission of electric power, accounting and other matters. With respect to its wholesale services and rates, PE is subject to regulation by FERC. FERC regulations require PE to provide open access transmission service at FERC-approved rates, terms and conditions. Transmission facilities of PE are subject to functional control by PJM and transmission service using PE's transmission facilities is provided by PJM under the PJM Tariff. As described below, on January 1, 2021, PE implemented a forward-looking formula rate, which has been accepted by FERC, subject to refund, pending further hearing and settlement procedures.

FERC regulates the sale of power for resale in interstate commerce in part by granting authority to public utilities to sell wholesale power at market-based rates upon showing that the seller cannot exert market power in generation or transmission or erect barriers to entry into markets. PE has been authorized by FERC to sell wholesale power in interstate commerce at market-based rates and has a market-based rate tariff on file with FERC, although major wholesale purchases remain subject to review and regulation by the relevant state commissions.

Federally-enforceable mandatory reliability standards apply to the bulk electric system and impose certain operating, record-keeping and reporting requirements on PE. NERC is the ERO designated by FERC to establish and enforce these reliability standards, although NERC has delegated day-to-day implementation and enforcement of these reliability standards to six regional entities, including RFC. All of the facilities that FirstEnergy operates, including those of PE, are located within the RFC region. FirstEnergy actively participates in the NERC and RFC stakeholder processes, and otherwise monitors and manages its companies, including PE, in response to the ongoing development, implementation and enforcement of the reliability standards implemented and enforced by RFC.

FirstEnergy, including PE, believes that it is in material compliance with all currently-effective and enforceable reliability standards. Nevertheless, in the course of operating its extensive electric utility systems and facilities, FirstEnergy, including PE, occasionally learns of isolated facts or circumstances that could be interpreted as excursions from the reliability standards. If and when such occurrences are found, FirstEnergy, including PE, develops information about the occurrence and develops a remedial response to the specific circumstances, including in appropriate cases “self-reporting” an occurrence to RFC. Moreover, it is clear that NERC, RFC and FERC will continue to refine existing reliability standards as well as to develop and adopt new reliability standards. Any inability on FirstEnergy’s, including PE’s, part to comply with the reliability standards for its bulk electric system could result in the imposition of financial penalties, or obligations to upgrade or build transmission facilities, that could have a material adverse effect on PE's financial condition, results of operations and cash flows.

FERC Audit

FERC’s Division of Audits and Accounting initiated a nonpublic audit of FESC in February 2019. Among other matters, the audit is evaluating FirstEnergy’s compliance with certain accounting and reporting requirements under various FERC regulations. On February 4, 2022, FERC filed the final audit report for the period of January 1, 2015 through September 30, 2021, which included several findings and recommendations that FirstEnergy has accepted. The audit report included a finding and related recommendation on FirstEnergy’s methodology for allocation of certain corporate support costs to regulatory capital accounts under certain FERC regulations and reporting. Effective in the first quarter of 2022 and in response to the finding, FirstEnergy had implemented a new methodology for the allocation of these corporate support costs to regulatory capital accounts for its regulated distribution and transmission companies on a prospective basis. With the assistance of an independent outside firm, FirstEnergy completed an analysis during the third quarter of 2022 of these costs and how it impacted certain FERC-jurisdictional wholesale transmission customer rates for the audit period of 2015 through 2021. As a result of this analysis, PE recorded in 2022 less than $1 million pre-tax in expected customer refunds, plus interest, due to its wholesale transmission customers and reclassified approximately $6 million of certain transmission capital assets to operating expenses for the audit period, of which $5 million are not expected to be recoverable and impacted PE’s earnings since they relate to costs capitalized during stated transmission rate time periods. These reclassifications also resulted in a reduction to PE’s rate base by approximately $6 million, which is not expected to materially impact PE's future earnings. The expected wholesale transmission customer refunds were recognized as a reduction to revenue. Additionally, PE reclassified approximately $19 million of certain capital assets to Account 182.3, Other regulatory assets.

Transmission ROE Methodology

On March 20, 2020, FERC initiated a rulemaking proceeding on the transmission rate incentives provisions of Section 219 of the 2005 Energy Policy Act. FirstEnergy submitted comments through the Edison Electric Institute and as part of a consortium of PJM Transmission Owners. In a supplemental rulemaking proceeding that was initiated on April 15, 2021, FERC requested comments on, among other things, whether to require utilities that have been members of an RTO for three years or more and that have been collecting an “RTO membership” ROE incentive adder to file tariff updates that would terminate collection of the incentive adder. Initial comments on the proposed rule were filed on June 25, 2021, and reply comments were filed on July 26,

2021. The rulemaking remains pending before FERC. FirstEnergy is a member of PJM and its transmission subsidiaries could be affected by the supplemental proposed rule. FirstEnergy participated in comments on the supplemental rulemaking that were submitted by a group of PJM transmission owners and by various industry trade groups. If there were to be any changes to FirstEnergy's, including PE's, transmission incentive ROE, such changes will be applied on a prospective basis.

Allegheny Power Zone Transmission Formula Rate Filings

On October 29, 2020, MP, PE and WP filed tariff amendments with FERC to implement a forward-looking formula transmission rate, to be effective January 1, 2021. In addition, on October 30, 2020, KATCo filed a proposed new tariff to establish a forward-looking formula rate and requested that the new rate become effective January 1, 2021. In its filing, KATCo explained that while it currently owns no transmission assets, it may build new transmission facilities in the Allegheny zone, and that it may seek required state and federal authorizations to acquire transmission assets from PE and WP by January 1, 2022. These transmission rate filings were accepted for filing by FERC on December 31, 2020, effective January 1, 2021, subject to refund, pending further hearing and settlement procedures and were consolidated into a single proceeding. MP, PE and WP, and KATCo filed uncontested settlement agreements with FERC on January 18, 2023. Also on January 18, 2023, MP, PE and WP filed a motion for interim rates to implement certain aspects of the settled rate. The interim rates were approved by the FERC Chief Administrative Law Judge and took effect on January 1, 2023. As a result of the filed settlement, FirstEnergy recognized a $25 million pre-tax charge during the fourth quarter of 2022, which reflects the difference between amounts originally recorded as assets and amounts which will ultimately be recovered from customers as a result. On May 4, 2023, FERC issued an order approving the settlement agreement without condition or modification. Pursuant to the order, a compliance filing was filed on May 19, 2023, that implemented the terms of the settlement. On June 26, 2023, FERC issued a letter order approving the compliance filing.

2. COMMITMENTS AND CONTINGENCIES

ENVIRONMENTAL MATTERS

Various federal, state and local authorities regulate PE with regard to air and water quality, hazardous and solid waste disposal, and other environmental matters. While PE’s environmental policies and procedures are designed to achieve compliance with applicable environmental laws and regulations, such laws and regulations are subject to periodic review and potential revision by the implementing agencies. PE cannot predict the timing or ultimate outcome of any of these reviews or how any future actions taken as a result thereof may materially impact its business, results of operations, cash flows and financial condition.

OTHER LEGAL PROCEEDINGS

United States v. Larry Householder, et al.

On July 21, 2020, a complaint and supporting affidavit containing federal criminal allegations were unsealed against the now former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder. In March 2023, a jury found Mr. Householder and his co-defendant, Matthew Borges, guilty and in June 2023, the two were sentenced to prison for 20 and 5 years, respectively. Messrs. Householder and Borges have appealed their sentences. Also, on July 21, 2020, and in connection with the DOJ’s investigation, FirstEnergy received subpoenas for records from the U.S. Attorney’s Office for the Southern District Ohio. FirstEnergy was not aware of the criminal allegations, affidavit or subpoenas before July 21, 2020.

On July 21, 2021, FE entered into a three-year DPA with the U.S. Attorney’s Office that, subject to court proceedings, resolves this matter. Under the DPA, FE has agreed to the filing of a criminal information charging FE with one count of conspiracy to commit honest services wire fraud. The DPA requires that FirstEnergy, among other obligations: (i) continue to cooperate with the U.S. Attorney’s Office in all matters relating to the conduct described in the DPA and other conduct under investigation by the U.S. government; (ii) pay a criminal monetary penalty totaling $230 million within sixty days, which shall consist of (x) $115 million paid by FE to the United States Treasury and (y) $115 million paid by FE to the ODSA to fund certain assistance programs, as determined by the ODSA, for the benefit of low-income Ohio electric utility customers; (iii) publish a list of all payments made in 2021 to either 501(c)(4) entities or to entities known by FirstEnergy to be operating for the benefit of a public official, either directly or indirectly, and update the same on a quarterly basis during the term of the DPA; (iv) issue a public statement, as dictated in the DPA, regarding FE’s use of 501(c)(4) entities; and (v) continue to implement and review its compliance and ethics program, internal controls, policies and procedures designed, implemented and enforced to prevent and detect violations of the U.S. laws throughout its operations, and to take certain related remedial measures. The $230 million payment will neither be recovered in rates or charged to FirstEnergy customers nor will FirstEnergy seek any tax deduction related to such payment. The entire amount of the monetary penalty was recognized as expense in the second quarter of 2021 and paid in the third quarter of 2021. Under the terms of the DPA, the criminal information will be dismissed after FirstEnergy fully complies with its obligations under the DPA.

Legal Proceedings Relating to United States v. Larry Householder, et al.

On August 10, 2020, the SEC, through its Division of Enforcement, issued an order directing an investigation of possible securities laws violations by FE, and on September 1, 2020, issued subpoenas to FE and certain FE officers. On April 28, 2021, July 11, 2022, and May 25, 2023, the SEC issued additional subpoenas to FE, with which FE has complied. While no contingency has been reflected in its consolidated financial statements, FE believes that it is probable that it will incur a loss in connection with the resolution of the SEC investigation. Given the ongoing nature and complexity of the review, inquiries and investigations, FE cannot yet reasonably estimate a loss or range of loss that may arise from the resolution of the SEC investigation.

On June 29, 2023, the OOCIC served FE a subpoena, seeking information relating to the conduct described in the DPA. FirstEnergy was not aware of the OOCIC’s investigation prior to receiving the subpoena and understands that the OOCIC’s investigation is also focused on the conduct described in the DPA. FirstEnergy is cooperating with the OOCIC in its investigation. No contingency has been reflected in FirstEnergy’s consolidated financial statements, as a loss is neither probable, nor is a loss or range of loss reasonably estimable.

In addition to the subpoenas referenced above under “—United States v. Larry Householder, et. al.” and the SEC investigation, certain FE stockholders and FirstEnergy customers filed several lawsuits against FirstEnergy and certain current and former directors, officers and other employees, and the complaints in each of these suits is related to allegations in the complaint and supporting affidavit relating to HB 6 and the now former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder. The plaintiffs in each of the below cases seek, among other things, to recover an unspecified amount of damages (unless otherwise noted). Unless otherwise indicated, no contingency has been reflected in FirstEnergy’s consolidated financial statements with respect to these lawsuits as a loss is neither probable, nor is a loss or range of a loss reasonably estimable.

•In re FirstEnergy Corp. Securities Litigation (S.D. Ohio); on July 28, 2020 and August 21, 2020, purported stockholders of FE filed putative class action lawsuits alleging violations of the federal securities laws. Those actions have been consolidated and a lead plaintiff, the Los Angeles County Employees Retirement Association, has been appointed by the court. A consolidated complaint was filed on February 26, 2021. The consolidated complaint alleges, on behalf of a proposed class of persons who purchased FE securities between February 21, 2017 and July 21, 2020, that FE and certain current or former FE officers violated Sections 10(b) and 20(a) of the Exchange Act by issuing misrepresentations or omissions concerning FE’s business and results of operations. The consolidated complaint also alleges that FE, certain current or former FE officers and directors, and a group of underwriters violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 as a result of alleged misrepresentations or omissions in connection with offerings of senior notes by FE in February and June 2020. On March 30, 2023, the court granted plaintiffs’ motion for class certification. On April 14, 2023, FE filed a petition in the U.S. Court of Appeals for the Sixth Circuit seeking to appeal that order. Discovery is ongoing. FE believes that it is probable that it will incur a loss in connection with the resolution of this lawsuit. Given the ongoing nature and complexity of such litigation, FE cannot yet reasonably estimate a loss or range of loss.

•MFS Series Trust I, et al. v. FirstEnergy Corp., et al. and Brighthouse Funds II – MFS Value Portfolio, et al. v. FirstEnergy Corp., et al. (S.D. Ohio) on December 17, 2021 and February 21, 2022, purported stockholders of FE filed complaints against FE, certain current and former officers, and certain current and former officers of EH. The complaints allege that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by issuing alleged misrepresentations or omissions regarding FE’s business and its results of operations, and seek the same relief as the In re FirstEnergy Corp. Securities Litigation described above. FE believes that it is probable that it will incur losses in connection with the resolution of these lawsuits. Given the ongoing nature and complexity of such litigation, FE cannot yet reasonably estimate a loss or range of loss.

•State of Ohio ex rel. Dave Yost, Ohio Attorney General v. FirstEnergy Corp., et al. and City of Cincinnati and City of Columbus v. FirstEnergy Corp. (Common Pleas Court, Franklin County, OH, all actions have been consolidated); on September 23, 2020 and October 27, 2020, the OAG and the cities of Cincinnati and Columbus, respectively, filed complaints against several parties including FE, each alleging civil violations of the Ohio Corrupt Activity Act and related claims in connection with the passage of HB 6. On January 13, 2021, the OAG filed a motion for a temporary restraining order and preliminary injunction against FirstEnergy seeking to enjoin FirstEnergy from collecting the Ohio Companies' decoupling rider. On January 31, 2021, FE reached a partial settlement with the OAG and the cities of Cincinnati and Columbus with respect to the temporary restraining order and preliminary injunction request and related issues. In connection with the partial settlement, the Ohio Companies filed an application on February 1, 2021, with the PUCO to set their respective decoupling riders (Conservation Support Rider) to zero. On February 2, 2021, the PUCO approved the application of the Ohio Companies setting the rider to zero, and no additional customer bills will include new decoupling rider charges after February 8, 2021. On August 13, 2021, new defendants were added to the complaint, including two former officers of FirstEnergy. On December 2, 2021, the cities and FE entered a stipulated dismissal with prejudice of the cities’ suit. After a stay, pending final resolution of the United

States v. Larry Householder, et al. criminal proceeding described above, the litigation has resumed pursuant to an order, dated March 15, 2023. Discovery is ongoing.

On February 9, 2022, FE, acting through the SLC, agreed to a settlement term sheet to resolve the following shareholder derivative lawsuits relating to HB 6 and the now former Ohio House Speaker Larry Householder and other individuals and entities allegedly affiliated with Mr. Householder that were filed in the S.D. Ohio, the N.D. Ohio, and the Ohio Court of Common Pleas, Summit County:

•Gendrich v. Anderson, et al. and Sloan v. Anderson, et al. (Common Pleas Court, Summit County, Ohio, all actions have been consolidated); on July 26, 2020 and July 31, 2020, respectively, purported stockholders of FE filed shareholder derivative action lawsuits against certain current and former FE directors and officers, alleging, among other things, breaches of fiduciary duty.

•Miller v. Anderson, et al. (N.D. Ohio); Bloom, et al. v. Anderson, et al.; Employees Retirement System of the City of St. Louis v. Jones, et al.; Electrical Workers Pension Fund, Local 103, I.B.E.W. v. Anderson et al.; Massachusetts Laborers Pension Fund v. Anderson et al.; The City of Philadelphia Board of Pensions and Retirement v. Anderson et al.; Atherton v. Dowling et al.; Behar v. Anderson, et al. (S.D. Ohio, all actions have been consolidated); beginning on August 7, 2020, purported stockholders of FE filed shareholder derivative actions alleging the FE Board and officers breached their fiduciary duties and committed violations of Section 14(a) of the Exchange Act.

On March 11, 2022, the parties executed a stipulation and agreement of settlement, and filed a motion the same day requesting preliminary settlement approval in the S.D. Ohio, which the S.D. Ohio granted on May 9, 2022. Subsequently, following a hearing on August 4, 2022, the S.D. Ohio granted final approval of the settlement on August 24, 2022. The settlement agreement is expected to resolve fully these shareholder derivative lawsuits and included a series of corporate governance enhancements.

The settlement also includes a payment to FE of $180 million, to be paid by insurance after the judgment has become final, less approximately $36 million in court-ordered attorney’s fees awarded to plaintiffs. On September 20, 2022, a purported FE stockholder filed a motion for reconsideration of the S.D. Ohio’s final settlement approval. The parties filed oppositions to that motion on October 11, 2022, and the S.D. Ohio denied that motion on May 22, 2023. On June 15, 2023, the purported FE stockholder filed an appeal in the U.S. Court of Appeals for the Sixth Circuit. The N.D. Ohio matter remains pending. On June 2, 2022, the N.D. Ohio entered an order to show cause why the court should not appoint new plaintiffs’ counsel, and thereafter, on June 10, 2022, the parties filed a joint motion to dismiss the matter without prejudice, which the N.D. Ohio denied on July 5, 2022. On August 15, 2022, the N.D. Ohio issued an order stating its intention to appoint one group of applicants as new plaintiffs’ counsel, and on August 22, 2022, the N.D. Ohio ordered that any objections to the appointment be submitted by August 26, 2022. The parties filed their objections by that deadline, and on September 2, 2022, the applicants responded to those objections. In the meantime, on August 25, 2022, a purported FE stockholder represented by the applicants filed a motion to intervene, attaching a proposed complaint-in-intervention purporting to assert claims that the FE Board and officers breached their fiduciary duties and committed violations of Section 14(a) of the Exchange Act as well as a claim against a third party for professional negligence and malpractice. The parties filed oppositions to that motion to intervene on September 8, 2022, and the proposed intervenor's reply in support of his motion to intervene was filed on September 22, 2022.

On August 24, 2022, the parties filed a joint motion to dismiss the action pending in the N.D. Ohio based upon and in light of the approval of the settlement by the S.D. Ohio. On August 30, 2022, the parties filed a joint motion to dismiss the state court action, which the court granted on September 2, 2022.

In letters dated January 26, and February 22, 2021, staff of FERC's Division of Investigations notified FirstEnergy that the Division was conducting an investigation of FirstEnergy’s lobbying and governmental affairs activities concerning HB 6, and staff directed FirstEnergy to preserve and maintain all documents and information related to the same as such have been developed as part of an ongoing non-public audit being conducted by FERC's Division of Audits and Accounting. On December 30, 2022, FERC approved a Stipulation and Consent Agreement that resolves the investigation. The agreement includes a FirstEnergy admission of violating FERC’s “duty of candor” rule and related laws, and obligates FirstEnergy to pay a civil penalty of $3.86 million, and to submit two annual compliance monitoring reports to FERC’s Office of Enforcement regarding improvements to FirstEnergy’s compliance programs. FE paid the civil penalty on January 4, 2023 and it will not be recovered from customers.

The outcome of any of these lawsuits, governmental investigations and audit is uncertain and could have a material adverse effect on FE’s or its subsidiaries’ reputation, business, financial condition, results of operations, liquidity, and cash flows.

Other Legal Matters

There are various lawsuits, claims (including claims for asbestos exposure) and proceedings related to PE's normal business operations pending against PE or its subsidiaries. The loss or range of loss in these matters is not expected to be material to

PE or its subsidiaries. The other potentially material items not otherwise discussed above are described under Note 1, “Regulatory Matters.”

PE accrues legal liabilities only when it concludes that it is probable that it has an obligation for such costs and can reasonably estimate the amount of such costs. In cases where PE determines that it is not probable, but reasonably possible that it has a material obligation, it discloses such obligations and the possible loss or range of loss if such estimate can be made. If it were ultimately determined that PE or its subsidiaries have legal liability or are otherwise made subject to liability based on any of the matters referenced above, it could have a material adverse effect on PE's or its subsidiaries' financial condition, results of operations and cash flows.

Economic Conditions

Economic conditions following the global pandemic, have increased lead times across numerous material categories, with some as much as doubling from pre-pandemic lead times. Some key suppliers have struggled with labor shortages and raw material availability, which along with increasing inflationary pressure, have increased costs and decreased the availability of certain materials, equipment and contractors. FirstEnergy has taken steps to mitigate these risks and does not currently expect service disruptions or any material impact on its capital spending plan. However, the situation remains fluid and a prolonged continuation or further increase in supply chain disruptions could have an adverse effect on FirstEnergy’s results of operations, cash flow and financial condition.

3. STATEMENT OF CASH FLOWS - As required by instructions on Page 121


As of	June 30,	2023		2022
Cash (Account 131)		$	35,000	$	11,735,000
Working Fund (Account 135)		—		—
Temporary Cash Investments (Account 136)		—		—
Cash and Cash Equivalents at End of Year		$	35,000	$	11,735,000


SUPPLEMENTAL DISCLOSURE ON CASH FLOW INFORMATION:
Six Months Ended June 30,	2023		2022
Cash Paid (Received) for:
Interest - Net of Amount Capitalized	$	14,871,371	$	13,631,422
Income Taxes	$	3,330,129	$	(880,898)

4. BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying financial statements were prepared in accordance with the accounting requirements set forth in the Uniform System of Accounts and published accounting releases of the FERC, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States.

Adoption of ASC 842, “Leases”

PE adopted ASU 2016-02, "Leases (Topic 842)" on January 1, 2019. Adoption of the accounting guidance had no impact on PE’s existing ratemaking treatment or FERC jurisdiction cost-of-service rates. Amounts included in the capital lease balance sheet accounts that relate to operating leases are as follows:


As of June 30, 2023						(in millions)
Property Under Capital Lease (Account 101.1)						$16

Obligations Under Capital Leases - Current (Account 243)						$3

Obligations Under Capital Leases - Noncurrent (Account 227)						$12

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, AND HEDGING ACTIVITIES
Report in columns (b),(c),(d) and (e) the amounts of accumulated other comprehensive income items, on a net-of-tax basis, where appropriate. Report in columns (f) and (g) the amounts of other categories of other cash flow hedges. For each category of hedges that have been accounted for as "fair value hedges", report the accounts affected and the related amounts in a footnote. Report data on a year-to-date basis.
Line No.	Item (a)	Unrealized Gains and Losses on Available-For-Sale Securities (b)	Minimum Pension Liability Adjustment (net amount) (c)	Foreign Currency Hedges (d)	Other Adjustments (e)	Other Cash Flow Hedges Interest Rate Swaps (f)	Other Cash Flow Hedges [Specify] (g)	Totals for each category of items recorded in Account 219 (h)	Net Income (Carried Forward from Page 116, Line 78) (i)	Total Comprehensive Income (j)
1	Balance of Account 219 at Beginning of Preceding Year				1,483,486			1,483,486
2	Preceding Quarter/Year to Date Reclassifications from Account 219 to Net Income				372,647			372,647
3	Preceding Quarter/Year to Date Changes in Fair Value
4	Total (lines 2 and 3)				372,647			372,647	38,536,389	38,163,742
5	Balance of Account 219 at End of Preceding Quarter/Year				1,110,839			1,110,839
6	Balance of Account 219 at Beginning of Current Year				741,569			741,569
7	Current Quarter/Year to Date Reclassifications from Account 219 to Net Income				372,364			372,364
8	Current Quarter/Year to Date Changes in Fair Value
9	Total (lines 7 and 8)				372,364			372,364	27,795,998	27,423,634
10	Balance of Account 219 at End of Current Quarter/Year				369,205			369,205

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS FOR DEPRECIATION. AMORTIZATION AND DEPLETION
Report in Column (c) the amount for electric function, in column (d) the amount for gas function, in column (e), (f), and (g) report other (specify) and in column (h) common function.
Line No.	Classification (a)	Total Company For the Current Year/Quarter Ended (b)	Electric (c)	Gas (d)	Other (Specify) (e)	Other (Specify) (f)	Other (Specify) (g)	Common (h)
1	UtilityPlantAbstract UTILITY PLANT
2	UtilityPlantInServiceAbstract In Service
3	UtilityPlantInServiceClassified Plant in Service (Classified)	2,713,466,769	2,713,466,769
4	UtilityPlantInServicePropertyUnderCapitalLeases Property Under Capital Leases	19,013,190	19,013,190
5	UtilityPlantInServicePlantPurchasedOrSold Plant Purchased or Sold
6	UtilityPlantInServiceCompletedConstructionNotClassified Completed Construction not Classified	117,072,607	117,072,607
7	UtilityPlantInServiceExperimentalPlantUnclassified Experimental Plant Unclassified
8	UtilityPlantInServiceClassifiedAndUnclassified Total (3 thru 7)	2,849,552,566	2,849,552,566
9	UtilityPlantLeasedToOthers Leased to Others
10	UtilityPlantHeldForFutureUse Held for Future Use
11	ConstructionWorkInProgress Construction Work in Progress	107,524,393	107,524,393
12	UtilityPlantAcquisitionAdjustment Acquisition Adjustments
13	UtilityPlantAndConstructionWorkInProgress Total Utility Plant (8 thru 12)	2,957,076,959	2,957,076,959
14	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility Accumulated Provisions for Depreciation, Amortization, & Depletion	1,169,205,921	1,169,205,921
15	UtilityPlantNet Net Utility Plant (13 less 14)	1,787,871,038	1,787,871,038
16	DetailOfAccumulatedProvisionsForDepreciationAmortizationAndDepletionAbstract DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION
17	AccumulatedProvisionForDepreciationAmortizationAndDepletionUtilityPlantInServiceAbstract In Service:
18	DepreciationUtilityPlantInService Depreciation	1,138,247,374	1,138,247,374
19	AmortizationAndDepletionOfProducingNaturalGasLandAndLandRightsutilityPlantInService Amortization and Depletion of Producing Natural Gas Land and Land Rights
20	AmortizationOfUndergroundStorageLandAndLandRightsutilityPlantInService Amortization of Underground Storage Land and Land Rights
21	AmortizationOfOtherUtilityPlantUtilityPlantInService Amortization of Other Utility Plant	30,958,547	30,958,547
22	DepreciationAmortizationAndDepletionUtilityPlantInService Total in Service (18 thru 21)	1,169,205,921	1,169,205,921
23	DepreciationAmortizationAndDepletionUtilityPlantLeasedToOthersAbstract Leased to Others
24	DepreciationUtilityPlantLeasedToOthers Depreciation
25	AmortizationAndDepletionUtilityPlantLeasedToOthers Amortization and Depletion
26	DepreciationAmortizationAndDepletionUtilityPlantLeasedToOthers Total Leased to Others (24 & 25)
27	DepreciationAndAmortizationUtilityPlantHeldForFutureUseAbstract Held for Future Use
28	DepreciationUtilityPlantHeldForFutureUse Depreciation
29	AmortizationUtilityPlantHeldForFutureUse Amortization
30	DepreciationAndAmortizationUtilityPlantHeldForFutureUse Total Held for Future Use (28 & 29)
31	AbandonmentOfLeases Abandonment of Leases (Natural Gas)
32	AmortizationOfPlantAcquisitionAdjustment Amortization of Plant Acquisition Adjustment
33	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility Total Accum Prov (equals 14) (22,26,30,31,32)	1,169,205,921	1,169,205,921

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

Electric Plant In Service and Accum Provision For Depr by Function
Report below the original cost of plant in service by function. In addition to Account 101, include Account 102, and Account 106. Report in column (b) the original cost of plant in service and in column(c) the accumulated provision for depreciation and amortization by function.
Line No.	Item (a)	Plant in Service Balance at End of Quarter (b)	Accumulated Depreciation And Amortization Balance at End of Quarter (c)
1	Intangible Plant	51,072,969	30,958,547
2	Steam Production Plant
3	Nuclear Production Plant
4	Hydraulic Production - Conventional
5	Hydraulic Production - Pumped Storage
6	Other Production
7	Transmission	571,672,196	283,820,072
8	Distribution	2,115,541,422	809,519,892
9	Regional Transmission and Market Operation
10	General	111,265,979	44,907,410
11	TOTAL (Total of lines 1 through 10)	2,849,552,566	1,169,205,921

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

Transmission Service and Generation Interconnection Study Costs
Report the particulars (details) called for concerning the costs incurred and the reimbursements received for performing transmission service and generator interconnection studies. List each study separately. In column (a) provide the name of the study. In column (b) report the cost incurred to perform the study at the end of period. In column (c) report the account charged with the cost of the study. In column (d) report the amounts received for reimbursement of the study costs at end of period. In column (e) report the account credited with the reimbursement received for performing the study.
Line No.	DescriptionOfStudyPerformed Description (a)	StudyCostsIncurred Costs Incurred During Period (b)	StudyCostsAccountCharged Account Charged (c)	StudyCostsReimbursements Reimbursements Received During the Period (d)	StudyCostsAccountReimbursed Account Credited With Reimbursement (e)
1	Transmission Studies
2	(a) Total Transmission Service Studies	19,930	561.6	3,215	561.6
20	Total
21	Generation Studies
22	(b) Total Generator Interconnection	503,579	561.7	285,497	561.7
39	Total
40	Grand Total

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

FOOTNOTE DATA

(a) Concept: DescriptionOfStudyPerformed


Description (a)	Costs Incurred During Period (b)		Account Charged (c)	Reimbursements Received During Period (d)		Account Credited With Reimbursement (e)
AE1-109 French Mill 34 kV FAC PE-MD	$	1,345	561.6	$	744	561.6
Align Data Center: Load Study	(637)		561.6	—		561.6
Alliant Tech Systems: Load Study	902		561.6	—		561.6
Chief Developer: Load Study	(1,312)		561.6	—		561.6
Customer, Hitachi Rail STS USA, Inc	(2,368)		561.6	(2,114)		561.6
DLS Data Center: Load Study	14,265		561.6	14,369		561.6
DLS: Aligned Data Center	2,336		561.6	—		561.6
DLS: Bus. Campus Clarksburg MD	2,675		561.6	1,090		561.6
DLS: Bus. Campus Frederick, MD	8,920		561.6	5,316		561.6
DLS: Mack Truck	70		561.6	—		561.6
DLS: Rowan Green Data, LLC	140		561.6	—		561.6
Dual Feed - Load Study Application	(10,000)		561.6	(6,800)		561.6
EF Owner (DE) LLC: Load Study	(321)		561.6	—		561.6
FLOWSERVE PUMP DIV: Load Study	5,628		561.6	4,538		561.6
ILS/DLS 138 kV Millbrook new POI	—		561.6	(7,150)		561.6
ILS-Mobile Xfmr Connection at Double Tol	—		561.6	5,580		561.6
ILS-Mobile Xfmr Connection at Redbud 138	—		561.6	940		561.6
Jefferson Memorial Hospital to perform a	(10,000)		561.6	(4,530)		561.6
Johnson Developers Associates	—		561.6	469		561.6
Load Study: Commercial Metals Co.	65,437		561.6	2,525		561.6
Load Study: DFM Dev. Svcs.	1,141		561.6	1,141		561.6
Manor Woods Data Center: Load Study	6,598		561.6	5,208		561.6
Miscellaneous	(12,053)		561.6	(2,802)		561.6
Natelli Communities Transmission Load St	(10,000)		561.6	(7,335)		561.6
Peak Reality Data Center: Load Study	(33)		561.6	1,176		561.6
Peak Realty: Load Study	(3)		561.6	—		561.6
Project Holiday- Urbana	322		561.6	321		561.6
Project Sage	6,707		561.6	6,115		561.6
Project Sage- Brunswick	1,519		561.6	1,519		561.6
Project Snowman	(10,000)		561.6	(6,123)		561.6
Quantum Frederick Bus Park: Load Study	(4,980)		561.6	—		561.6
Service Name and Address:	(25,000)		561.6	(15,055)		561.6
Terra Innovation: Load Study	13,632		561.6	11,753		561.6
The customer is Maryland Energy Resource	(5,000)		561.6	—		561.6
This is for a Load Study for the followi	(5,000)		561.6	(1,720)		561.6
TRANSMISSION LOAD STUDY - RENN FARM, 890	(10,000)		561.6	(5,960)		561.6
Whiting-Turner Contracting Company	(5,000)		561.6	—		561.6
			561.6			561.6
Total Transmission Service Studies	$	19,930	561.6	$	3,215	561.6

(b) Concept: DescriptionOfStudyPerformed


Description (a)	Costs Incurred During Period (b)		Account Charged (c)	Reimbursements Received During Period (d)		Account Credited With Reimbursement (e)
AD1-125 Baker 138 kV FAC PE	$	132	561.7	$	—	561.7
AD2-158 Old Chapel Milville 138 kV FAC	112		561.7	—		561.7
AE2-230 Bartonsville-Meadow Brook 138 k	3,498		561.7	3,538		561.7
AE2-289 Frostburg 138 kV FAC PE	6,054		561.7	6,165		561.7
AF1-290 Feagans Mill Millville 138 kV F	1,506		561.7	645		561.7
AF1-291A Bartonsville Meadow Brook 138	64		561.7	(6,505)		561.7
AF2-075 Bartonsville-Meadow Brook 138 k	4,305		561.7	—		561.7
AF2-112 Oakland-Gorman 69 kV FAC PE-MD	14,716		561.7	17,439		561.7
AF2-356 Albright-Mt. Zion 138 kV FEAS P	1,237		561.7	359		561.7
AF2-356 Albright-Mt. Zion 138 kV FAC PE-	6,799		561.7	2,656		561.7
AG1-012 Mewdow Brook-Strasburg 138 kV II	781		561.7	1,264		561.7
AG1-101 Oakland-Gorman 69 kV FAC PE-MD	571		561.7	—		561.7
AG1-182 Millville-Old Chapel 138 kV FAC	4,954		561.7	6,808		561.7
AG1-186 Millville-Old Chapel 138 kV FAC	120		561.7	460		561.7
AG1-307 Old Chapel-Millville 138 kV FAC	6,120		561.7	7,547		561.7
AG1-363 Black Oak-Hatfield 500 kV FAC	18,343		561.7	19,257		561.7
AG1-415 Double Toll Date-Old Chapel 138	11,681		561.7	12,061		561.7
AG1-416 Sleepy Hollow 138 kV SIS PE-VA	167		561.7	—		561.7
AG1-416 Sleepy Hollow 138 kV FAC PE-WV	8,030		561.7	10,670		561.7
AG1-533 Bartonville-Meadowbrook 138kV IV	1,072		561.7	1,724		561.7
STUDY Solution for VA Data Centers	355,699		561.7	2,245		561.7
WL-2332 Rappahannock PE Project (South F	1,986		561.7	1,423		561.7
WL-2337 Holiday Project-SVEC DLS PE-MD	17,780		561.7	17,312		561.7
WL-2357 PE-SVEC (ODEC) Strasburg MST 1	29,221		561.7	25,423		561.7
WL-2358 PE-REC(ODEC)Greenwood 138kV DLS	11,929		561.7	7,583		561.7
PA19-024 Pre App Sand Flat Rd 34.5 kV	(300)		561.7	—		561.7
PA20-052 Hagerstown No 1- Marlowe 34.5k	(300)		561.7	—		561.7
PA20-058 Aqueduct-Doubs 230kV PA PE-MD	(300)		561.7	—		561.7
AB2-097 Antietam 34.5kV CONS PE-MD	(2,820)		561.7	—		561.7
AG1-363 Black Oak-Hatfield 500 kV SIS P	29		561.7	—		561.7
AF1-290 Feagans Mill Millville 138 kV S	211		561.7	(3,484)		561.7
AE2-333 Bedington 138 kV FAC PE	54		561.7	137,470		561.7
AG2-615 Carlos Junction 138 kV FEAS PE-M	21		561.7	—		561.7
AF2-112 Oakland-Gorman 66kV PE Feas	—		561.7	(2,377)		561.7
AE2-309 Carlos Junction 34 kV FAC PE	—		561.7	(2,147)		561.7
AF2-310 Jennings-Hoyes Road 34.5 kV FEA	—		561.7	(91)		561.7
AF2-357 Nipetown-Reid 138 kV FEAS PE	—		561.7	(249)		561.7
AG1-012 Mewdow Brook-Strasburg 138 kV I	—		561.7	(401)		561.7
AG1-018 Nipetown-Reid 138 kV FEAS PE	—		561.7	(734)		561.7
AG1-095 General Office-Breathedsville 3	—		561.7	(459)		561.7
AG1-099 Westernport-Keyser 34.5 kV FEAS	—		561.7	(867)		561.7
AF2-310 Jennings-Hoyes Road 34.5 kV SIS	—		561.7	(1,458)		561.7
WL-2191 PE-ODEC REC Catlett 138kV Deliv	107		561.7	(1,050)		561.7
AF2-114 Old Chapel-Millville 138 kV II	—		561.7	1,735		561.7
AG1-045 Redbud-Gaylord 34.5 kV FEAS PE	—		561.7	22,853		561.7
AG1-095 General Office – Rustoleum Tap	—		561.7	(1,318)		561.7
Total Generation Interconnection Studies	$	503,579	561.7	$	285,497	561.7

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

OTHER REGULATORY ASSETS (Account 182.3)
Report below the particulars (details) called for concerning other regulatory assets, including rate order docket number, if applicable. Minor items (5% of the Balance in Account 182.3 at end of period, or amounts less than $100,000 which ever is less), may be grouped by classes. For Regulatory Assets being amortized, show period of amortization.
				CREDITS
Line No.	DescriptionAndPurposeOfOtherRegulatoryAssets Description and Purpose of Other Regulatory Assets (a)	OtherRegulatoryAssets Balance at Beginning of Current Quarter/Year (b)	IncreaseDecreaseInOtherRegulatoryAssets Debits (c)	OtherRegulatoryAssetsWrittenOffAccountCharged Written off During Quarter/Year Account Charged (d)	OtherRegulatoryAssetsWrittenOffRecovered Written off During the Period Amount (e)	OtherRegulatoryAssets Balance at end of Current Quarter/Year (f)
1	FAS 109 - Accounting for Income Taxes	4,461,852		Various	92,484	4,369,368
2	MD Energy Efficiency Program Commission Order #82825	94,077,632	2,318,025			96,395,657
3	Warrior Run Contract Buyout	23,109,398	333,890,602			357,000,000
4	Deferred Transmission Energy Cost - MD	6,657,511	1,733,170			8,390,681
5	MD Warrior Run		5,281,997			5,281,997
6	Vegetation Management - Transmission	2,480,126		426.5, 407.3	95,708	2,384,418
7	WV Vegetation Management Surcharge		626,375			626,375
8	Deficient Accumulated Deferred Income Taxes due to the Tax Cuts and Jobs Act (Amortized through 2027)	1,466,596		Various	77,192	1,389,404
9	WV Storm Deferrals	8,741,139		407.4	200,135	8,541,004
10	WV Storm Deferrals - Reserve	2,185,285	50,034			2,135,251
11	Defer FERC Opinion 494 PJM Regional Transmission Expansion Plan Costs	2,929,499		407.4	283,321	2,646,178
12	PE-MD Rate Case Expenditures	491,715	307,999			799,714
13	MD Electric Vehicle Charge	1,560,159	125,971			1,686,130
14	COVID-19 Pandemic Incremental Costs Order #89542 (MD) and #262.4 (WV)	8,497,779		407.4	2,071,106	6,426,673
15	Contra COVID-19 Incremental Costs	1,686,214				1,686,214
16	Deferred Power Costs - WV ENEC WV Case # 09-1352-E-42-T ($82.8M amortized through 2030)	66,045,408	631,781			66,677,189
17	Vegetation Management - Distribution Capital	6,522,820	992,739			7,515,559
18	Corporate support overhead cost adjustment per time study results - Distribution	16,775,917				16,775,917
19	Corporate support overhead cost adjustment per time study results - Transmission	2,145,064				2,145,064
20	Minor Items	12,260	71,528			83,788
44	TOTAL	242,103,376	346,030,221		2,819,946	585,313,651

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

OTHER REGULATORY LIABILITIES (Account 254)
Report below the particulars (details) called for concerning other regulatory liabilities, including rate order docket number, if applicable. Minor items (5% of the Balance in Account 254 at end of period, or amounts less than $100,000 which ever is less), may be grouped by classes. For Regulatory Liabilities being amortized, show period of amortization.
			DEBITS
Line No.	Description and Purpose of Other Regulatory Liabilities (a)	Balance at Beginning of Current Quarter/Year (b)	Account Credited (c)	Amount (d)	Credits (e)	Balance at End of Current Quarter/Year (f)
1	Deferred Generation Energy Cost - MD	10,159,677	557	2,516,185		7,643,492
2	Excess Accumulated Deferred Income Taxes due to the Tax Cuts and Jobs Act and State Tax Rate changes (Amortized via ARAM over remaining book life of assets)	142,431,908	Various	1,268,069		141,163,839
3	Deferral of Amortized Excess Deferred Income Taxes Due to the Tax Cuts and Jobs Act and State Tax Rate changes	8,965,244			671,537	9,636,781
4	MD Warrior Run	3,818,559	557	3,818,559
5	WV ECC Normalization	5,899,799	456	390,030		5,509,769
6	COVID Reserve Residential	1,130,965				1,130,965
7	PJM Payable	17,194,415			431,348	17,625,763
8	Other amounts expected to be refunded	1,665,628			109,719	1,775,347
9	WV Vegetation Management Surcharge	711,803	234, 407.3	711,803
10	Depreciation of Corporate support overhead cost adjustment	130,030			130,030	260,060
11	MD Deferred Administrative Credit				128,665	128,665
12	WV Reg Liability - WV Securitization				448,060	448,060
13	Minor Items	132,463	Various	132,463
41	TOTAL	192,240,491		8,837,109	1,919,359	185,322,741

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

Electric Operating Revenues
The following instructions generally apply to the annual version of these pages. Do not report quarterly data in columns (c), (e), (f), and (g). Unbilled revenues and MWH related to unbilled revenues need not be reported separately as required in the annual version of these pages. Report below operating revenues for each prescribed account, and manufactured gas revenues in total. Report number of customers, columns (f) and (g), on the basis of meters, in addition to the number of flat rate accounts; except that where separate meter readings are added for billing purposes, one customer should be counted for each group of meters added. The average number of customers means the average of twelve figures at the close of each month. If increases or decreases from previous period (columns (c),(e), and (g)), are not derived from previously reported figures, explain any inconsistencies in a footnote. Disclose amounts of $250,000 or greater in a footnote for accounts 451, 456, and 457.2. Commercial and industrial Sales, Account 442, may be classified according to the basis of classification (Small or Commercial, and Large or Industrial) regularly used by the respondent if such basis of classification is not generally greater than 1000 Kw of demand. (See Account 442 of the Uniform System of Accounts. Explain basis of classification in a footnote.) See page 108, Important Changes During Period, for important new territory added and important rate increase or decreases. For Lines 2,4,5,and 6, see Page 304 for amounts relating to unbilled revenue by accounts. Include unmetered sales. Provide details of such Sales in a footnote.
Line No.	Title of Account (a)	Operating Revenues Year to Date Quarterly/Annual (b)	Operating Revenues Previous year (no Quarterly) (c)	MEGAWATT HOURS SOLD Year to Date Quarterly/Annual (d)	MEGAWATT HOURS SOLD Amount Previous year (no Quarterly) (e)	AVG.NO. CUSTOMERS PER MONTH Current Year (no Quarterly) (f)	AVG.NO. CUSTOMERS PER MONTH Previous Year (no Quarterly) (g)
1	SalesOfElectricityHeadingAbstract Sales of Electricity
2	ResidentialSalesAbstract (440) Residential Sales	248,753,934		2,470,623
3	CommercialAndIndustrialSalesAbstract (442) Commercial and Industrial Sales
4	CommercialSalesAbstract Small (or Comm.) (See Instr. 4)	92,968,663		1,339,296
5	IndustrialSalesAbstract Large (or Ind.) (See Instr. 4)	45,889,913		1,142,813
6	PublicStreetAndHighwayLightingAbstract (444) Public Street and Highway Lighting	(a) 2,680,345		10,929
7	OtherSalesToPublicAuthoritiesAbstract (445) Other Sales to Public Authorities
8	SalesToRailroadsAndRailwaysAbstract (446) Sales to Railroads and Railways
9	InterdepartmentalSalesAbstract (448) Interdepartmental Sales
10	SalesToUltimateConsumersAbstract TOTAL Sales to Ultimate Consumers	390,292,855		4,963,661
11	SalesForResaleAbstract (447) Sales for Resale	5,876,958		271,419
12	SalesOfElectricityAbstract TOTAL Sales of Electricity	396,169,813		5,235,080
13	ProvisionForRateRefundsAbstract (Less) (449.1) Provision for Rate Refunds
14	RevenuesNetOfProvisionForRefundsAbstract TOTAL Revenues Before Prov. for Refunds	396,169,813		5,235,080
15	OtherOperatingRevenuesAbstract Other Operating Revenues
16	ForfeitedDiscounts (450) Forfeited Discounts	1,160,640
17	MiscellaneousServiceRevenues (451) Miscellaneous Service Revenues	(b) 503,372
18	SalesOfWaterAndWaterPower (453) Sales of Water and Water Power
19	RentFromElectricProperty (454) Rent from Electric Property	2,283,431
20	InterdepartmentalRents (455) Interdepartmental Rents
21	OtherElectricRevenue (456) Other Electric Revenues	(c) 628,755
22	RevenuesFromTransmissionOfElectricityOfOthers (456.1) Revenues from Transmission of Electricity of Others	5,364,991
23	RegionalTransmissionServiceRevenues (457.1) Regional Control Service Revenues
24	MiscellaneousRevenue (457.2) Miscellaneous Revenues
25	OtherMiscellaneousOperatingRevenues Other Miscellaneous Operating Revenues
26	OtherOperatingRevenues TOTAL Other Operating Revenues	9,941,189
27	ElectricOperatingRevenues TOTAL Electric Operating Revenues	406,111,002
Line12, column (b) includes $ of unbilled revenues.
Line12, column (d) includes MWH relating to unbilled revenues

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

FOOTNOTE DATA

(a) Concept: PublicStreetAndHighwayLighting

All street lighting sales in accounts 440, 442 and 444 are unmetered.

(b) Concept: MiscellaneousServiceRevenues


Reserve Capacity			$280,884
Other - Numerous items under $250,000 each			222,488
Total			$503,372

(c) Concept: OtherElectricRevenue


Other Supporting Facilities Chg			436,028
Other - Numerous items under $250,000 each			192,727
Total			$628,755

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

REGIONAL TRANSMISSION SERVICE REVENUES (Account 457.1)
The respondent shall report below the revenue collected for each service (i.e., control area administration, market administration, etc.) performed pursuant to a Commission approved tariff. All amounts separately billed must be detailed below.
Line No.	Description of Service (a)	Balance at End of Quarter 1 (b)	Balance at End of Quarter 2 (c)	Balance at End of Quarter 3 (d)	Balance at End of Year (e)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46	TOTAL

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

ELECTRIC PRODUCTION, OTHER POWER SUPPLY EXPENSES, TRANSMISSION AND DISTRIBUTION EXPENSES

Report Electric production, other power supply expenses, transmission, regional market, and distribution expenses through the reporting period.
Line No.	Account (a)	Year to Date Quarter (b)
1	PowerProductionExpensesAbstract 1. POWER PRODUCTION AND OTHER SUPPLY EXPENSES
2	SteamPowerGenerationOperationsExpense Steam Power Generation - Operation (500-509)	102,027,191
3	SteamPowerGenerationMaintenanceExpense Steam Power Generation – Maintenance (510-515)
4	PowerProductionExpensesSteamPower Total Power Production Expenses - Steam Power	102,027,191
5	NuclearPowerGenerationOperationsExpense Nuclear Power Generation – Operation (517-525)
6	NuclearPowerGenerationMaintenanceExpense Nuclear Power Generation – Maintenance (528-532)
7	PowerProductionExpensesNuclearPower Total Power Production Expenses - Nuclear Power
8	HydraulicPowerGenerationOperationsExpense Hydraulic Power Generation – Operation (535-540.1)
9	HydraulicPowerGenerationMaintenanceExpense Hydraulic Power Generation – Maintenance (541-545.1)
10	PowerProductionExpensesHydraulicPower Total Power Production Expenses - Hydraulic Power
11	RentsOtherPowerGeneration Other Power Generation – Operation (546-550.1)
12	MaintenanceOfEnergyStorageEquipmentOtherPowerGeneration Other Power Generation – Maintenance (551-554.1)
13	MaintenanceOfMiscellaneousOtherPowerGenerationPlant Total Power Production Expenses - Other Power
14	OtherPowerSuplyExpensesAbstract Other Power Supply Expenses
15	PurchasedPower (555) Purchased Power	154,712,379
15.1	PowerPurchasedForStorageOperations (555.1) Power Purchased for Storage Operations
16	SystemControlAndLoadDispatchingElectric (556) System Control and Load Dispatching
17	OtherExpensesOtherPowerSupplyExpenses (557) Other Expenses	30,950,691
18	OtherPowerSupplyExpense Total Other Power Supply Expenses (line 15-17)	123,761,688
19	PowerProductionExpenses Total Power Production Expenses (Total of lines 4, 7, 10, 13 and 18)	225,788,879
20	TransmissionExpensesAbstract 2. TRANSMISSION EXPENSES
21	TransmissionExpensesOperationAbstract Transmission Operation Expenses
22	OperationSupervisionAndEngineeringElectricTransmissionExpenses (560) Operation Supervision and Engineering	51,218
24	LoadDispatchReliability (561.1) Load Dispatch-Reliability	255,769
25	LoadDispatchMonitorAndOperateTransmissionSystem (561.2) Load Dispatch-Monitor and Operate Transmission System	96,268
26	LoadDispatchTransmissionServiceAndScheduling (561.3) Load Dispatch-Transmission Service and Scheduling
27	SchedulingSystemControlAndDispatchServices (561.4) Scheduling, System Control and Dispatch Services	6,972
28	ReliabilityPlanningAndStandardsDevelopment (561.5) Reliability, Planning and Standards Development	18,773
29	TransmissionServiceStudies (561.6) Transmission Service Studies	16,715
30	GenerationInterconnectionStudies (561.7) Generation Interconnection Studies	218,082
31	ReliabilityPlanningAndStandardsDevelopmentServices (561.8) Reliability, Planning and Standards Development Services	335
32	StationExpensesTransmissionExpense (562) Station Expenses	379,295
32.1	OperationOfEnergyStorageEquipmentTransmissionExpense (562.1) Operation of Energy Storage Equipment
33	OverheadLineExpense (563) Overhead Lines Expenses	214,701
34	UndergroundLineExpensesTransmissionExpense (564) Underground Lines Expenses
35	TransmissionOfElectricityByOthers (565) Transmission of Electricity by Others	17,622,679
36	MiscellaneousTransmissionExpenses (566) Miscellaneous Transmission Expenses	698,662
37	RentsTransmissionElectricExpense (567) Rents	230,347
38	OperationSuppliesAndExpensesTransmissionExpense (567.1) Operation Supplies and Expenses (Non-Major)
39	TransmissionOperationExpense TOTAL Transmission Operation Expenses (Lines 22 - 38)	19,809,816
40	TransmissionMaintenanceAbstract Transmission Maintenance Expenses
41	MaintenanceSupervisionAndEngineeringElectricTransmissionExpenses (568) Maintenance Supervision and Engineering	429,673
42	MaintenanceOfStructuresTransmissionExpense (569) Maintenance of Structures
43	MaintenanceOfComputerHardwareTransmission (569.1) Maintenance of Computer Hardware	4,246
44	MaintenanceOfComputerSoftwareTransmission (569.2) Maintenance of Computer Software	4,329
45	MaintenanceOfCommunicationEquipmentElectricTransmission (569.3) Maintenance of Communication Equipment	11
46	MaintenanceOfMiscellaneousRegionalTransmissionPlant (569.4) Maintenance of Miscellaneous Regional Transmission Plant
47	MaintenanceOfStationEquipmentTransmission (570) Maintenance of Station Equipment	1,069,862
47.1	MaintenanceOfEnergyStorageEquipmentTransmission (570.1) Maintenance of Energy Storage Equipment
48	MaintenanceOfOverheadLinesTransmission (571) Maintenance of Overhead Lines	3,969,190
49	MaintenanceOfUndergroundLinesTransmission (572) Maintenance of Underground Lines	14,666
50	MaintenanceOfMiscellaneousTransmissionPlant (573) Maintenance of Miscellaneous Transmission Plant	102,213
51	MaintenanceOfTransmissionPlant (574) Maintenance of Transmission Plant
52	TransmissionMaintenanceExpenseElectric TOTAL Transmission Maintenance Expenses (Lines 41 – 51)	5,564,858
53	TransmissionExpenses Total Transmission Expenses (Lines 39 and 52)	25,374,674
54	RegionalMarketExpensesAbstract 3. REGIONAL MARKET EXPENSES
55	RegionalMarketExpensesOperationAbstract Regional Market Operation Expenses
56	OperationSupervision (575.1) Operation Supervision
57	DayAheadAndRealTimeMarketAdministration (575.2) Day-Ahead and Real-Time Market Facilitation
58	TransmissionRightsMarketAdministration (575.3) Transmission Rights Market Facilitation
59	CapacityMarketAdministration (575.4) Capacity Market Facilitation
60	AncillaryServicesMarketAdministration (575.5) Ancillary Services Market Facilitation
61	MarketMonitoringAndCompliance (575.6) Market Monitoring and Compliance
62	MarketFacilitationMonitoringAndComplianceServices (575.7) Market Facilitation, Monitoring and Compliance Services	94,991
63	RegionalMarketOperationExpense Regional Market Operation Expenses (Lines 55 - 62)	94,991
64	RegionalMarketExpensesMaintenanceAbstract Regional Market Maintenance Expenses
65	MaintenanceOfStructuresAndImprovementsRegionalMarketExpenses (576.1) Maintenance of Structures and Improvements
66	MaintenanceOfComputerHardware (576.2) Maintenance of Computer Hardware
67	MaintenanceOfComputerSoftware (576.3) Maintenance of Computer Software
68	MaintenanceOfCommunicationEquipmentRegionalMarketExpenses (576.4) Maintenance of Communication Equipment
69	MaintenanceOfMiscellaneousMarketOperationPlant (576.5) Maintenance of Miscellaneous Market Operation Plant
70	RegionalMarketMaintenanceExpense Regional Market Maintenance Expenses (Lines 65-69)
71	RegionalMarketExpenses TOTAL Regional Control and Market Operation Expenses (Lines 63,70)	94,991
72	DistributionExpensesAbstract 4. DISTRIBUTION EXPENSES
73	DistributionOperationExpensesElectric Distribution Operation Expenses (580-589)	7,024,669
74	DistributionMaintenanceExpenseElectric Distribution Maintenance Expenses (590-598)	19,692,058
75	DistributionExpenses Total Distribution Expenses (Lines 73 and 74)	26,716,727

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

Electric Customer Accts, Service, Sales, Admin and General Expenses
Report the amount of expenses for customer accounts, service, sales, and administrative and general expenses year to date.
Line No.	Account (a)	Year to Date Quarter (b)
-	CustomerAccountsExpensesOperationsAbstract Operation
1	CustomerAccountExpenses (901-905) Customer Accounts Expenses	4,653,037
2	CustomerServiceAndInformationExpenses (907-910) Customer Service and Information Expenses	6,062,296
3	SalesExpenses (911-917) Sales Expenses	19,225
4	AdministrativeAndGeneralExpensesAbstract 8. ADMINISTRATIVE AND GENERAL EXPENSES
5	AdministrativeAndGeneralExpensesOperationAbstract Operation
6	AdministrativeAndGeneralSalaries (920) Administrative and General Salaries	3,527,584
7	OfficeSuppliesAndExpenses (921) Office Supplies and Expenses	395,597
8	AdministrativeExpensesTransferredCredit (Less) (922) Administrative Expenses Transferred-Credit	1,793,966
9	OutsideServicesEmployed (923) Outside Services Employed	9,879,327
10	PropertyInsurance (924) Property Insurance	20,152
11	InjuriesAndDamages (925) Injuries and Damages	915,681
12	EmployeePensionsAndBenefits (926) Employee Pensions and Benefits	5,579,352
13	FranchiseRequirements (927) Franchise Requirements
14	RegulatoryCommissionExpenses (928) Regulatory Commission Expenses	1,131,638
15	DuplicateChargesCredit (929) (Less) Duplicate Charges-Cr.
16	GeneralAdvertisingExpenses (930.1) General Advertising Expenses	49,232
17	MiscellaneousGeneralExpenses (930.2) Miscellaneous General Expenses	448,002
18	RentsAdministrativeAndGeneralExpense (931) Rents	217,765
19	AdministrativeAndGeneralOperationExpense TOTAL Operation (Total of lines 6 thru 18)	9,211,660
20	AdministrativeAndGeneralExpensesMaintenanceAbstract Maintenance
21	MaintenanceOfGeneralPlant (935) Maintenance of General Plant	808,534
22	AdministrativeAndGeneralExpenses TOTAL Administrative and General Expenses (Total of lines 19 and 21)	10,020,194

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

TRANSMISSION OF ELECTRICITY FOR OTHERS (Account 456.1) (Including transactions referred to as "wheeling")

Report all transmission of electricity, i.e., wheeling, provided for other electric utilities, cooperatives, other public authorities, qualifying facilities, non-traditional utility suppliers and ultimate customers for the quarter.
Use a separate line of data for each distinct type of transmission service involving the entities listed in column (a), (b) and (c).
Report in column (a) the company or public authority that paid for the transmission service. Report in column (b) the company or public authority that the energy was received from and in column (c) the company or public authority that the energy was delivered to. Provide the full name of each company or public authority. Do not abbreviate or truncate name or use acronyms. Explain in a footnote any ownership interest in or affiliation the respondent has with the entities listed in columns (a), (b) or (c).
In column (d) enter a Statistical Classification code based on the original contractual terms and conditions of the service as follows: FNO - Firm Network Service for Others, FNS - Firm Network Transmission Service for Self, LFP - "Long-Term Firm Point to Point Transmission Service, OLF - Other Long-Term Firm Transmission Service, SFP - Short-Term Firm Point to Point Transmission Reservation, NF - non-firm transmission service, OS - Other Transmission Service and AD - Out-of-Period Adjustments. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting periods. Provide an explanation in a footnote for each adjustment. See General Instruction for definitions of codes.
In column (e), identify the FERC Rate Schedule or Tariff Number, On separate lines, list all FERC rate schedules or contract designations under which service, as identified in column (d), is provided.
Report receipt and delivery locations for all single contract path, "point to point" transmission service. In column (f), report the designation for the substation, or other appropriate identification for where energy was received as specified in the contract. In column (g) report the designation for the substation, or other appropriate identification for where energy was delivered as specified in the contract.
Report in column (h) the number of megawatts of billing demand that is specified in the firm transmission service contract. Demand reported in column (h) must be in megawatts. Footnote any demand not stated on a megawatts basis and explain.
Report in column (i) and (j) the total megawatthours received and delivered.
In column (k) through (n), report the revenue amounts as shown on bills or vouchers. In column (k), provide revenues from demand charges related to the billing demand reported in column (h). In column (I), provide revenues from energy charges related to the amount of energy transferred. In column (m), provide the total revenues from all other charges on bills or vouchers rendered, including out of period adjustments. Explain in a footnote all components of the amount shown in column (m). Report in column (n) the total charge shown on bills rendered to the entity Listed in column (a). If no monetary settlement was made, enter zero (0) in column (n). Provide a footnote explaining the nature of the non-monetary settlement, including the amount and type of energy or service rendered.
The total amounts in columns (i) and (j) must be reported as Transmission Received and Transmission Delivered for annual report purposes only on Page 401, Lines 16 and 17, respectively.
Footnote entries and provide explanations following all required data.

TRANSFER OF ENERGY

REVENUE FROM TRANSMISSION OF ELECTRICITY FOR OTHERS

Line No.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

(m)

(n)

1

Financial Transmission Rights Auction

Various

OS

6

Various

(b)

31,712

2

Transmission Ancillaries

Various

OS

6

Various

(c)

387,426

3

Network Integrated Transmission

PJM Network

FNO

6

PJM Network

(a)

2,206,696

4

Point-to-Point Transmission

Various

OS

6

Various

(d)

82,396

35

TOTAL

0

2,206,696

501,534

2,708,230

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

FOOTNOTE DATA

(a) Concept: DemandChargesRevenueTransmissionOfElectricityForOthers

NITS revenue is based on the previous year's peak load, the number of days in the period and the NITS rate.

(b) Concept: OtherChargesRevenueTransmissionOfElectricityForOthers

Revenues associated with Respondent's membership with PJM as an RTO.

(c) Concept: OtherChargesRevenueTransmissionOfElectricityForOthers

Revenues associated with Respondent's membership with PJM as an RTO.

(d) Concept: OtherChargesRevenueTransmissionOfElectricityForOthers

Firm Point to Point Transmission revenue is allocated to PJM transmission owners based on transmission revenue requirement ratio shares.

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

TRANSMISSION OF ELECTRICITY BY ISO/RTOs
Report in Column (a) the Transmission Owner receiving revenue for the transmission of electricity by the ISO/RTO. Use a separate line of data for each distinct type of transmission service involving the entities listed in Column (a). In Column (b) enter a Statistical Classification code based on the original contractual terms and conditions of the service as follows: FNO – Firm Network Service for Others, FNS – Firm Network Transmission Service for Self, LFP – Long-Term Firm Point-to-Point Transmission Service, OLF – Other Long-Term Firm Transmission Service, SFP – Short-Term Firm Point-to-Point Transmission Reservation, NF – Non-Firm Transmission Service, OS – Other Transmission Service and AD- Out-of-Period Adjustments. Use this code for any accounting adjustments or “true-ups” for service provided in prior reporting periods. Provide an explanation in a footnote for each adjustment. See General Instruction for definitions of codes. In column (c) identify the FERC Rate Schedule or tariff Number, on separate lines, list all FERC rate schedules or contract designations under which service, as identified in column (b) was provided. In column (d) report the revenue amounts as shown on bills or vouchers. Report in column (e) the total revenues distributed to the entity listed in column (a).
Line No.	Payment Received by (Transmission Owner Name) (a)	Statistical Classification (b)	FERC Rate Schedule or Tariff Number (c)	Total Revenue by Rate Schedule or Tariff (d)	Total Revenue (e)
1	Potomac Edison:
2	Financial Transmission Rights Auction	OS	6	31,712	31,712
3	Transmission Ancillaries	OS	6	387,426	387,426
4	Network Integrated Transmission	FNO	6	2,206,696	2,206,696
5	Point to Point Transmission	OS	6	82,396	82,396
40	TOTAL			2,708,230	2,708,230

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

TRANSMISSION OF ELECTRICITY BY OTHERS (Account 565)
Report all transmission, i.e. wheeling or electricity provided by other electric utilities, cooperatives, municipalities, other public authorities, qualifying facilities, and others for the quarter. In column (a) report each company or public authority that provided transmission service. Provide the full name of the company, abbreviate if necessary, but do not truncate name or use acronyms. Explain in a footnote any ownership interest in or affiliation with the transmission service provider. Use additional columns as necessary to report all companies or public authorities that provided transmission service for the quarter reported. In column (b) enter a Statistical Classification code based on the original contractual terms and conditions of the service as follows: FNS - Firm Network Transmission Service for Self, LFP - Long-Term Firm Point-to-Point Transmission Reservations. OLF - Other Long-Term Firm Transmission Service, SFP - Short-Term Firm Point-to- Point Transmission Reservations, NF - Non-Firm Transmission Service, and OS - Other Transmission Service. See General Instructions for definitions of statistical classifications. Report in column (c) and (d) the total megawatt hours received and delivered by the provider of the transmission service. Report in column (e), (f) and (g) expenses as shown on bills or vouchers rendered to the respondent. In column (e) report the demand charges and in column (f) energy charges related to the amount of energy transferred. On column (g) report the total of all other charges on bills or vouchers rendered to the respondent, including any out of period adjustments. Explain in a footnote all components of the amount shown in column (g). Report in column (h) the total charge shown on bills rendered to the respondent. If no monetary settlement was made, enter zero in column (h). Provide a footnote explaining the nature of the non-monetary settlement, including the amount and type of energy or service rendered. Enter ""TOTAL"" in column (a) as the last line. Footnote entries and provide explanations following all required data.
			TRANSFER OF ENERGY		EXPENSES FOR TRANSMISSION OF ELECTRICITY BY OTHERS
Line No.	NameOfCompanyOrPublicAuthorityTransmissionOfElectricityByOthers Name of Company or Public Authority (Footnote Affiliations) (a)	StatisticalClassificationCode Statistical Classification (b)	TransmissionOfElectricityByOthersEnergyReceived MegaWatt Hours Received (c)	TransmissionOfElectricityByOthersEnergyDelivered MegaWatt Hours Delivered (d)	DemandChargesTransmissionOfElectricityByOthers Demand Charges ($) (e)	EnergyChargesTransmissionOfElectricityByOthers Energy Charges ($) (f)	OtherChargesTransmissionOfElectricityByOthers Other Charges ($) (g)	ChargesForTransmissionOfElectricityByOthers Total Cost of Transmission ($) (h)
1	PJM	(a) OS					(b) 9,151,889	9,151,889
	TOTAL		0	0	0	0	9,151,889	9,151,889

FOOTNOTE DATA

(a) Concept: StatisticalClassificationCode

Expenses associated with Respondent's membership with PJM as an RTO.

(b) Concept: OtherChargesTransmissionOfElectricityByOthers


PJM Anc Svc Trans Enhancement Schd 12			$9,401,330
PJM Ancillary Service Schedule 9 FERC-OPSI			1,143
Transm Owner Sch, Sys Control & Dispatch Srv Exp			782
PJM Transmission Congestion Charges			23,816
PJM-Transmission Loss Expense			(4,051)
494 Remand Transmission Enhancement Charge			(283,322)
PJM Ancillary Services Exp-Oper Cos			12,191
Total			$9,151,889

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

Deprec, Depl and Amort of Elec Plant (403,403.1,404,and 405) (except Amortization of Acquisition Adjustments)
Report the year to date amounts of depreciation expense, asset retirement cost depreciation, depletion and amortization, except amortization of acquisition adjustments for the accounts indicated and classified according to the plant functional groups described.
Line No.	FunctionalClassificationAxis Functional Classification (a)	DepreciationExpenseExcludingAmortizationOfAcquisitionAdjustments Depreciation Expense (Account 403) (b)	DepreciationExpenseForAssetRetirementCostsExcludingAmortizationgOfAcquisitionAdjustments Depreciation Expense for Asset Retirement Costs (Account 403.1) (c)	AmortizationOfLimitedTermPlantOrProperty Amortization of Limited Term Electric Plant (Account 404) (d)	AmortizationOfOtherElectricPlant Amortization of Other Electric Plant (Acc 405) (e)	DepreciationAndAmortization Total (f)
1	Intangible Plant			2,392,523		2,392,523
2	Steam Production Plant
3	Nuclear Production Plant
4	Hydraulic Production Plant-Conventional
5	Hydraulic Production Plant-Pumped Storage
6	Other Production Plant
7	Transmission Plant	4,679,445	44			4,679,489
8	Distribution Plant	21,889,055				21,889,055
9	General Plant	2,227,750	140			2,227,890
10	Common Plant-Electric
11	TOTAL	28,796,250	184	2,392,523		31,188,957

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

AMOUNTS INCLUDED IN ISO/RTO SETTLEMENT STATEMENTS
The respondent shall report below the details called for concerning amounts it recorded in Account 555, Purchase Power, and Account 447, Sales for Resale, for items shown on ISO/RTO Settlement Statements. Transactions should be separately netted for each ISO/RTO administered energy market for purposes of determining whether an entity is a net seller or purchaser in a given hour. Net megawatt hours are to be used as the basis for determining whether a net purchase or sale has occurred. In each monthly reporting period, the hourly sale and purchase net amounts are to be aggregated and separately reported in Account 447, Sales for Resale, or Account 555, Purchased Power, respectively.
Line No.	Description of Item(s) (a)	Balance at End of Quarter 1 (b)	Balance at End of Quarter 2 (c)	Balance at End of Quarter 3 (d)	Balance at End of Year (e)
1	Energy
2	Net Purchases (Account 555)
2.1	Net Purchases (Account 555.1)
3	Net Sales (Account 447)
4	Transmission Rights
5	Ancillary Services
6	Other Items (list separately)
7	Purchases (Account 555) Day Ahead (DA)
8	Purchases (Account 555) Real Time (RT)	729,915	1,367,277
9	Sales (Account 447) Day Ahead (DA)	5,088,595	7,473,377
10	Sales (Account 447) Real Time (RT)	511,993	679,491
46	TOTAL	4,870,673	6,785,591

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

Monthly Peak Loads and Energy Output
Report the monthly peak load and energy output. If the respondent has two or more power which are not physically integrated, furnish the required information for each non- integrated system. Report in column (b) by month the system’s output in Megawatt hours for each month. Report in column (c) by month the non-requirements sales for resale. Include in the monthly amounts any energy losses associated with the sales. Report in column (d) by month the system’s monthly maximum megawatt load (60 minute integration) associated with the system. Report in column (e) and (f) the specified information for each monthly peak load reported in column (d).
Line No.	MonthAxis Month (a)	Total Monthly Energy (MWH) (b)	Monthly Non-Requirements Sales for Resale & Associated Losses (c)	MonthlyPeakLoad Monthly Peak Megawatts (See Instr. 4) (d)	DayOfMonthlyPeak Monthly Peak Day of Month (e)	HourOfMonthlyPeak Monthly Peak Hour (f)
	NAME OF SYSTEM: Allegheny Power
1	January
2	February
3	March
4	Total for Quarter 1
5	April
6	May
7	June
8	Total for Quarter 2
9	July
10	August
11	September
12	Total for Quarter 3
41	Total
	NAME OF SYSTEM: Potomac Edison
1	January
2	February
3	March
4	Total for Quarter 1
5	April	499,378	32,142	1,995	3	8
6	May	480,179	128	1,921	12	18
7	June	547,672	53,894	2,325	26	18
8	Total for Quarter 2	1,527,229	86,164
9	July
10	August
11	September
12	Total for Quarter 3
41	Total

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

MONTHLY TRANSMISSION SYSTEM PEAK LOAD
Report the monthly peak load on the respondent's transmission system. If the respondent has two or more power systems which are not physically integrated, furnish the required information for each non-integrated system. Report on Column (b) by month the transmission system's peak load. Report on Columns (c ) and (d) the specified information for each monthly transmission - system peak load reported on Column (b). Report on Columns (e) through (j) by month the system' monthly maximum megawatt load by statistical classifications. See General Instruction for the definition of each statistical classification.
Line No.	Month (a)	Monthly Peak MW - Total (b)	Day of Monthly Peak (c)	Hour of Monthly Peak (d)	Firm Network Service for Self (e)	Firm Network Service for Others (f)	Long-Term Firm Point-to-point Reservations (g)	Other Long-Term Firm Service (h)	Short-Term Firm Point-to-point Reservation (i)	Other Service (j)
	NAME OF SYSTEM: Allegheny Power
1	January	(a) 2,511	(b) 16	(c) 8	(d) 693	(e) 1,818	(f) 0	(g) 0
2	February	2,890	3	20	735	2,155
3	March	2,393	14	21	573	1,820
4	Total for Quarter 1				2,001	5,793	0			0
5	April	1,995	3	8	532	1,463
6	May	1,865	31	19	476	1,389
7	June	2,244	2	18	551	1,693
8	Total for Quarter 2				1,559	4,545	0			0
9	July
10	August
11	September
12	Total for Quarter 3				0	0	0			0
13	October
14	November
15	December
16	Total for Quarter 4				0	0	0			0
17	Total				3,560	10,338	0	0	0	0

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

FOOTNOTE DATA

(a) Concept: MonthlyPeakLoadExcludingIsoAndRto

Column (b) reports the coincidental peak at the time of the Allegheny Power peak. Reports MW's of energy used for load integrated over the hour.

(b) Concept: DayOfMonthlyPeakExcludingIsoAndRto

Column (c) reports the coincidental peak at the time of the Allegheny Power peak.

(c) Concept: HourOfMonthlyPeakExcludingIsoAndRto

Column (d) reports the coincidental peak at the time of the Allegheny Power peak.

(d) Concept: FirmNetworkServiceForSelf

Column (e) reports MW's of energy used for load integrated over the hour. Reports next-day settlement which is based on historical usage, as opposed to actual usage, with losses and adjustment factors applied.

(e) Concept: FirmNetworkServiceForOther

Column (f) reports MW's of energy used for load integrated over the hour. Reports next-day settlement which is based on historical usage, as opposed to actual usage, with losses and adjustment factors applied.

(f) Concept: LongTermFirmPointToPointReservations

For column (g), it is assumed that PJM will report these.

(g) Concept: OtherLongTermFirmService

For column (h), it is assumed that PJM will report these.

Name of Respondent:

The Potomac Edison Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

08/25/2023

Year/Period of Report

End of:

2023

/

Q2

Monthly ISO/RTO Transmission System Peak Load
Report the monthly peak load on the respondent's transmission system. If the Respondent has two or more power systems which are not physically integrated, furnish the required information for each non-integrated system. Report on Column (b) by month the transmission system's peak load. Report on Column (c) and (d) the specified information for each monthly transmission - system peak load reported on Column (b). Report on Columns (e) through (i) by month the system’s transmission usage by classification. Amounts reported as Through and Out Service in Column (g) are to be excluded from those amounts reported in Columns (e) and (f). Amounts reported in Column (j) for Total Usage is the sum of Columns (h) and (i).
Line No.	Month (a)	Monthly Peak MW - Total (b)	Day of Monthly Peak (c)	Hour of Monthly Peak (d)	Import into ISO/RTO (e)	Exports from ISO/RTO (f)	Through and Out Service (g)	Network Service Usage (h)	Point-to-Point Service Usage (i)	Total Usage (j)
	NAME OF SYSTEM: Enter System
1	January
2	February
3	March
4	Total for Quarter 1
5	April
6	May
7	June
8	Total for Quarter 2
9	July
10	August
11	September
12	Total for Quarter 3
13	October
14	November
15	December
16	Total for Quarter 4
17	Total Year to Date/Year

FERC FINANCIAL REPORT FERC FORM No. 1: Annual Report of Major Electric Utilities, Licensees and Others and Supplemental Form 3-Q: Quarterly Financial Report

INSTRUCTIONS FOR FILING FERC FORM NOS. 1 and 3-Q

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FERC FINANCIAL REPORT
FERC FORM No. 1: Annual Report of
Major Electric Utilities, Licensees
and Others and Supplemental
Form 3-Q: Quarterly Financial Report