Dividend - Return of Capital

U.S. Internal Revenue Code §6045B Tax Reporting

Issuers of corporate stock must report corporate actions that affect stock basis, including but not limited to mergers, stock splits, stock dividends, recapitalizations and common stock distributions paid in excess of "earnings and profits", as defined by the U.S. Internal Revenue Code. The extent to which distributions made by FirstEnergy Corp. (“FE”) to its shareholders are taxable as a dividend for U.S. federal income tax purposes is reported to shareholders on Form 1099-DIV.

Additionally, nondividend distributions characterized as “return of capital” require FE to post on its website Form 8937 reflecting the impact on shareholders’ tax basis for each distribution made. By posting this information, FE intends to satisfy the requirements of public disclosure pursuant to Treasury Regulation § 1.6045B-1(a)(3) and (b)(4). Whether any portion of a distribution is a return of capital depends on FE’s estimate of earnings and profits for the full year. The information contained in the Form 8937 is based on reasonable assumptions and estimates at the time the Form is posted. Such estimates and assumptions can change throughout the year and, if they do, FE will file a corrected Form 8937 pursuant to the applicable Treasury Regulations.

2024 Distributions

Based on the successful closing of the FET Minority Equity Interest Sale on March 25, 2024 (as defined below), FirstEnergy Corp. (“FE”) currently expects to realize over $7 billion tax gain in 2024. FE currently expects that this tax gain should create sufficient earnings and profits to cause distributions made during 2024 and, likely, the next several years, to be characterized as dividends for federal income tax purposes. Should circumstances cause FE to change its expectations concerning the characterization of future distributions as dividends for federal income tax purposes, FE will update this website. Final tax reporting for distributions made during any calendar year occurs with the issuance of Form 1099-DIV in January of the following calendar year. As always, you should consult with your own tax advisor concerning the tax consequences to you in connection with the receipt of any distributions.

FET Minority Equity Interest Sale” is the sale by FE to North American Transmission Company II L.P., a controlled investment vehicle entity of Brookfield Infrastructure Partners (“Investor”), of an incremental 30% equity interest in FirstEnergy Transmission, LLC (“FET”), for a purchase price of $3.5 billion on March 25, 2024. As a result of the consummation of this sale, Investor’s interest in FET increased from 19.9% to 49.9%, with FE retaining a 50.1% ownership interests in FET.

2023 Distributions

As of December 1, 2023, FE estimates that approximately 100% of distributions made during 2023 will be treated as return of capital for federal income tax purposes. See the Forms below for additional information. Final tax reporting for 2023 distributions will occur on Form 1099-DIV, which will be issued in January 2024.

• Form 8937 for December 1, 2023 distribution
• Form 8937 for September 1, 2023 distribution
• Form 8937 for March 1, 2023 distribution (Amended June 2023)
• Form 8937 for March 1, 2023 (Amended June 2023)
• Form 8937 for June 1, 2023 distribution

2022 Distributions

As of December 31, 2022, FE estimates that approximately 100% of distributions made during 2022 will be treated as return of capital for federal income tax purposes. See the Forms below for additional information. Final tax reporting for 2022 distributions will occur on Form 1099-DIV, which will be issued in January 2023.

• Form 8937 for March 1, 2022 distribution
• Form 8937 for March 1, 2022 Distribution (Amended June 2022)
• Form 8937 for March 1, 2022 Distribution (Amended September 2022)
• Form 8937 for June 1, 2022 distribution
• Form 8937 for June 1, 2022 Distribution (Amended September 2022)
• Form 8937 for September 1, 2022 distribution
• Form 8937 for December 1, 2022 distribution

2021 Distributions

As of December 31, 2021, FE estimates that 100% of distributions made during 2021 will be treated as return of capital for federal income tax purposes. See the Forms below for additional information. Final tax reporting for 2021 distributions will occur on Form 1099-DIV, which will be issued in January 2022.

• Form 8937 for March 1, 2021 distribution
• Form 8937 for March 1, 2021 distribution – Amended
• Form 8937 for June 1, 2021 distribution
• Form 8937 for March 1, 2021 Distribution (amended Sept 2021)
• Form 8937 for June 1, 2021 Distribution (amended Sept 2021)
• Form 8937 for September 1, 2021 Distribution
• Form 8937 for December 1, 2021 Distribution

2020 Distributions

For U.S. federal income tax purposes only, 100% of the March 1, 2020, June 1, 2020, September 1, 2020, and December 1, 2020 distributions by FE to its shareholders are classified under the U.S. Internal Revenue Code as a nontaxable return of capital and reduction of a shareholder’s tax basis, to the extent of a shareholder’s tax basis in each of its FE common shares, with any remaining amount being taxed as gain.

• Form 8937 for March 1, 2020 distribution
• Form 8937 for June 1, 2020 distribution
• Form 8937 for September 1, 2020 distribution
• Form 8937 for December 1, 2020 distribution

You should consult your tax advisor regarding the applicable tax consequences to you in connection with any of these distributions under the laws of the United States (federal, state and local), and any other applicable non-U.S. jurisdiction.

2019 Distributions

For U.S. federal income tax purposes only, the March 1, 2019 and June 1, 2019 distributions by FE to its shareholders are classified under the U.S. Internal Revenue Code as taxable dividends.

For U.S. federal income tax purposes only, approximately 45% of the September 1, 2019 distribution by FE to its shareholders is classified under the U.S. Internal Revenue Code as a nontaxable return of capital and reduction of a shareholder’s tax basis, to the extent of a shareholder’s tax basis in each of its FE common shares, with any remaining amount being taxed as gain.

• Form 8937 for September 1, 2019 distribution

For U.S. federal income tax purposes only, 100% of the December 1, 2019 distribution by FE to its shareholders is classified under the U.S. Internal Revenue Code as a nontaxable return of capital and reduction of a shareholder’s tax basis, to the extent of a shareholder’s tax basis in each of its FE common shares, with any remaining amount being taxed as gain.

• Form 8937 for December 1, 2019 distribution

Should you have any questions, please contact FirstEnergy’s Tax Department at taxservices@firstenergycorp.com or (800) 643-9877.

Forward-Looking Statements: This website includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” "forecast," "target," "will," "intend," “believe,” "project," “estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following: the potential liabilities, increased costs and unanticipated developments resulting from government investigations and agreements, including those associated with compliance with or failure to comply with the Deferred Prosecution Agreement entered into July 21, 2021 with the U.S. Attorney’s Office for the Southern District of Ohio; the risks and uncertainties associated with government investigations and audits regarding Ohio House Bill 6, as passed by Ohio’s 133rd General Assembly (“HB 6”) and related matters, including potential adverse impacts on federal or state regulatory matters, including, but not limited to, matters relating to rates; the risks and uncertainties associated with litigation, arbitration, mediation, and similar proceedings, particularly regarding HB 6 related matters, including risks associated with obtaining dismissal of the derivative shareholder lawsuits; changes in national and regional economic conditions, including recession, rising interest rates, inflationary pressure, supply chain disruptions, higher energy costs, and workforce impacts, affecting us and/or our customers and those vendors with which we do business; weather conditions, such as temperature variations and severe weather conditions, or other natural disasters affecting future operating results and associated regulatory actions or outcomes in response to such conditions; legislative and regulatory developments, including, but not limited to, matters related to rates, compliance and enforcement activity, cybersecurity, and climate change; the risks associated with cyber-attacks and other disruptions to our, or our vendors’, information technology system, which may compromise our operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to meet our goals relating to employee, environmental, social and corporate governance opportunities, improvements, and efficiencies, including our greenhouse gas (“GHG”) reduction goals; the ability to accomplish or realize anticipated benefits from our FE Forward initiative and our other strategic and financial goals, including, but not limited to, overcoming current uncertainties and challenges associated with the ongoing government investigations, executing our transmission and distribution investment plans, executing on our rate filing strategy, controlling costs, improving our credit metrics, growing earnings, strengthening our balance sheet, and satisfying the conditions necessary to close the sale of additional membership interests of FirstEnergy Transmission, LLC; changing market conditions affecting the measurement of certain liabilities and the value of assets held in our pension trusts may negatively impact our forecasted growth rate, results of operations, and may also cause us to make contributions to our pension sooner or in amounts that are larger than currently anticipated; mitigating exposure for remedial activities associated with retired and formerly owned electric generation assets; changes to environmental laws and regulations, including but not limited to those related to climate change; changes in customers’ demand for power, including but not limited to, economic conditions, the impact of climate change or energy efficiency and peak demand reduction mandates; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us, including the increasing number of financial institutions evaluating the impact of climate change on their investment decisions; future actions taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; changes in assumptions regarding factors such as economic conditions within our territories, the reliability of our transmission and distribution system, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; the potential of non-compliance with debt covenants in our credit facilities; the ability to comply with applicable reliability standards and energy efficiency and peak demand reduction mandates; human capital management challenges, including among other things, attracting and retaining appropriately trained and qualified employees and labor disruptions by our unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, including, but not limited to, the Inflation Reduction