System Demand The maximum hourly demand for each of the Utilities was: System Demand 2022 2021 2020 (in MWs) CEI 4,266 4,253 4,188 JCP&L 6,122 5,902 6,056 ME 3,021 2,976 2,974 MP 2,124 2,114 2,121 OE 5,652 5,598 5,494 PE 3,514 2,905 3,609 Penn 944 889 946 PN 2,838 2,908 3,020 TE 2,277 2,265 2,787 WP 3,827 3,827 4,012 Regional Reliability All of FirstEnergy's facilities are located within PJM and operate under the reliability oversight of a regional entity known as RFC. This regional entity operates under the oversight of NERC in accordance with a delegation agreement approved by FERC. Competition Within FirstEnergy’s Regulated Distribution segment, generally there is no competition for electric distribution service in the Utilities’ respective service territories in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and New York. Additionally, there has traditionally been no competition for transmission service in PJM. However, pursuant to FERC’s Order No. 1000 and subject to state and local siting and permitting approvals, non-incumbent developers now can compete for certain PJM transmission projects in the service territories of FirstEnergy’s Regulated Transmission segment. This could result in additional competition to build transmission facilities in the Regulated Transmission segment’s service territories while also allowing the Regulated Transmission segment the opportunity to seek to build facilities in non-incumbent service territories. Seasonality The sale of electric power is generally a seasonal business, and weather patterns can have a material impact on FirstEnergy’s Regulated Distribution segment operating results. Demand for electricity in our service territories historically peaks during the summer and winter months. Accordingly, FirstEnergy’s annual results of operations and liquidity position may depend disproportionately on its operating performance during the summer and winter. Mild weather conditions may result in lower power sales and consequently lower revenue and earnings. 5
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