|
Commission
|
|
Registrant; State of Incorporation;
|
|
I.R.S. Employer
|
File Number
|
|
Address; and Telephone Number
|
|
Identification No.
|
|
|
|
|
|
333-21011
|
|
FIRSTENERGY CORP.
|
|
34-1843785
|
|
|
(An Ohio Corporation)
|
|
|
|
|
76 South Main Street
|
|
|
|
|
Akron, OH 44308
|
|
|
|
|
Telephone (800)736
-
3402
|
|
|
|
|
|
|
|
000-53742
|
|
FIRSTENERGY SOLUTIONS CORP.
|
|
31-1560186
|
|
|
(An Ohio Corporation)
|
|
|
|
|
c/o FirstEnergy Corp.
|
|
|
|
|
76 South Main Street
|
|
|
|
|
Akron, OH 44308
|
|
|
|
|
Telephone (800)736-3402
|
|
|
|
|
|
|
|
1-2578
|
|
OHIO EDISON COMPANY
|
|
34-0437786
|
|
|
(An Ohio Corporation)
|
|
|
|
|
c/o FirstEnergy Corp.
|
|
|
|
|
76 South Main Street
|
|
|
|
|
Akron, OH 44308
|
|
|
|
|
Telephone (800)736
-
3402
|
|
|
|
|
|
|
|
1-3141
|
|
JERSEY CENTRAL POWER & LIGHT COMPANY
|
|
21-0485010
|
|
|
(A New Jersey Corporation)
|
|
|
|
|
c/o FirstEnergy Corp.
|
|
|
|
|
76 South Main Street
|
|
|
|
|
Akron, OH 44308
|
|
|
|
|
Telephone (800)736
-
3402
|
|
|
|
|
|
|
|
Yes
þ
No
o
|
|
FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company
|
Yes
þ
No
o
|
|
FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company
|
Yes
o
No
þ
|
|
FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company
|
|
|
OUTSTANDING
|
|
CLASS
|
|
AS OF APRIL 30, 2012
|
|
FirstEnergy Corp., $.10 par value
|
|
418,216,437
|
|
FirstEnergy Solutions Corp., no par value
|
|
7
|
|
Ohio Edison Company, no par value
|
|
60
|
|
Jersey Central Power & Light Company, $10 par value
|
|
13,628,447
|
|
|
•
|
The speed and nature of increased competition in the electric utility industry.
|
•
|
The impact of the regulatory process on the pending matters before FERC and in the various states in which we do business including, but not limited to, matters related to rates.
|
•
|
The status of the PATH project in light of PJM's direction to suspend work on the project pending review of its planning process, its re-evaluation of the need for the project and the uncertainty of the timing and amounts of any related capital expenditures.
|
•
|
The uncertainties of various cost recovery and cost allocation issues resulting from ATSI's realignment into PJM.
|
•
|
Economic or weather conditions affecting future sales and margins.
|
•
|
Changes in markets for energy services.
|
•
|
Changing energy and commodity market prices and availability.
|
•
|
Financial derivative reforms that could increase our liquidity needs and collateral costs.
|
•
|
The continued ability of our regulated utilities to collect transition and other costs.
|
•
|
Operation and maintenance costs being higher than anticipated.
|
•
|
Other legislative and regulatory changes, and revised environmental requirements, including possible GHG emission, water intake and coal combustion residual regulations, the potential impacts of any laws, rules or regulations that ultimately replace CAIR, including CSAPR which was stayed by the courts on December 30, 2011, and the effects of the EPA's MATS rules.
|
•
|
The uncertainty of the timing and amounts of the capital expenditures that may arise in connection with any litigation, including NSR litigation or potential regulatory initiatives or rulemakings (including that such expenditures could result in our decision to shut down or idle certain generating units).
|
•
|
The uncertainties associated with our plan to retire our older unscrubbed regulated and competitive fossil units, including the impact on vendor commitments, and PJM's review of our plans for, and the timing of, those retirements.
|
•
|
Adverse regulatory or legal decisions and outcomes with respect to our nuclear operations (including, but not limited to the revocation or non-renewal of necessary licenses, approvals or operating permits by the NRC or as a result of the incident at Japan's Fukushima Daiichi Nuclear Plant).
|
•
|
Issues that could result from our continuing evaluation of the indications of cracking in the Davis-Besse Plant shield building imposed by the CAL issued by the NRC.
|
•
|
Adverse legal decisions and outcomes related to ME's and PN's ability to recover certain transmission costs through their transmission service charge riders.
|
•
|
The continuing availability of generating units and changes in their ability to operate at or near full capacity.
|
•
|
Replacement power costs being higher than anticipated or inadequately hedged.
|
•
|
The ability to comply with applicable state and federal reliability standards and energy efficiency mandates.
|
•
|
Changes in customers' demand for power, including but not limited to, changes resulting from the implementation of state and federal energy efficiency mandates.
|
•
|
The ability to accomplish or realize anticipated benefits from strategic goals.
|
•
|
Our ability to improve electric commodity margins and the impact of, among other factors, the increased cost of fuel and fuel transportation on such margins.
|
•
|
The ability to experience growth in the distribution business.
|
•
|
Changing market conditions that could affect the value of assets held in our NDTs, pension trusts and other trust funds, and cause us and our subsidiaries to make additional contributions sooner, or in amounts that are larger than currently anticipated.
|
•
|
The impact of changes to material accounting policies.
|
•
|
The ability to access the public securities and other capital and credit markets in accordance with our financing plans, the cost of such capital and overall condition of the capital and credit markets affecting us and our subsidiaries.
|
•
|
Changes in general economic conditions affecting us and our subsidiaries.
|
•
|
Interest rates and any actions taken by credit rating agencies that could negatively affect us and our subsidiaries' access to financing, increased costs thereof, and increase requirements to post additional collateral to support outstanding commodity positions, LOCs and other financial guarantees.
|
•
|
The state of the national and regional economy and its impact on our major industrial and commercial customers.
|
•
|
Issues concerning the soundness of domestic and foreign financial institutions and counterparties with which we do business.
|
•
|
The risks and other factors discussed from time to time in our SEC filings, and other similar factors.
|
TABLE OF CONTENTS
|
|
|
Page
|
|
|
Part I. Financial Information
|
|
|
|
|
|
Item 1. Financial Statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstEnergy Corp.
Management's Discussion of Analysis of Financial Condition and Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 3.
Defaults Upon Senior Securities
|
|
|
|
Item 4.
Mine Safety Disclosures
|
|
|
|
Item 5. Other Information
|
|
|
|
GLOSSARY OF TERMS,
Continued
|
|
BGS
|
Basic Generation Service
|
BMP
|
Bruce Mansfield Plant
|
CAA
|
Clean Air Act
|
CAL
|
Confirmatory Action Letter
|
CAIR
|
Clean Air Interstate Rule
|
CBP
|
Competitive Bid Process
|
CCB
|
Coal Combustion By-products
|
CDWR
|
California Department of Water Resources
|
CERCLA
|
Comprehensive Environmental Response, Compensation, and Liability Act of 1980
|
CO
2
|
Carbon Dioxide
|
CSAPR
|
Cross-State Air Pollution Rule
|
CWA
|
Clean Water Act
|
DCPD
|
Deferred Compensation Plan for Outside Directors
|
DCR
|
Delivery Capital Recovery Rider
|
DOE
|
United States Department of Energy
|
DOJ
|
United States Department of Justice
|
DSP
|
Default Service Plan
|
EDC
|
Electric Distribution Company
|
EDCP
|
Executive Deferred Compensation Plan
|
EE&C
|
Energy Efficiency and Conservation
|
EGS
|
Electric Generation Supplier
|
EHB
|
Environmental Hearing Board
|
ENEC
|
Expanded Net Energy Cost
|
EPA
|
United States Environmental Protection Agency
|
ERO
|
Electric Reliability Organization
|
ESP
|
Electric Security Plan
|
FERC
|
Federal Energy Regulatory Commission
|
Fitch
|
Fitch Ratings
|
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
|
HCL
|
Hydrochloric Acid
|
ICG
|
International Coal Group Inc.
|
ILP
|
Integrated License Application Process
|
IRS
|
Internal Revenue Service
|
kV
|
Kilovolt
|
KWH
|
Kilowatt-hour
|
LBR
|
Little Blue Run
|
LOC
|
Letter of Credit
|
LSE
|
Load Serving Entity
|
LTIP
|
Long-Term Incentive Plan
|
MATS
|
Mercury and Air Toxics Standards
|
MDPSC
|
Maryland Public Service Commission
|
MISO
|
Midwest Independent Transmission System Operator, Inc.
|
Moody’s
|
Moody’s Investors Service, Inc.
|
MTEP
|
MISO Regional Transmission Expansion Plan
|
MVP
|
Multi-value Project
|
MW
|
Megawatt
|
MWH
|
Megawatt-hour
|
GLOSSARY OF TERMS,
Continued
|
|
NCEA
|
NERC Compliance Enforcement Authority
|
NDT
|
Nuclear Decommissioning Trust
|
NEPA
|
National Environmental Policy Act
|
NERC
|
North American Electric Reliability Corporation
|
NJBPU
|
New Jersey Board of Public Utilities
|
NNSR
|
Non-Attainment New Source Review
|
NOV
|
Notice of Violation
|
NOx
|
Nitrogen Oxide
|
NPDES
|
National Pollutant Discharge Elimination System
|
NRC
|
Nuclear Regulatory Commission
|
NSR
|
New Source Review
|
NUG
|
Non-Utility Generation
|
NYPSC
|
New York State Public Service Commission
|
NYSEG
|
New York State Electric and Gas
|
OCI
|
Other Comprehensive Income
|
OPEB
|
Other Post-Employment Benefits
|
OTTI
|
Other Than Temporary Impairments
|
OVEC
|
Ohio Valley Electric Corporation
|
PA DEP
|
Pennsylvania Department of Environmental Protection
|
PCRB
|
Pollution Control Revenue Bond
|
PJM
|
PJM Interconnection LLC
|
PM
|
Particulate Matter
|
POLR
|
Provider of Last Resort
|
PPUC
|
Pennsylvania Public Utility Commission
|
PSA
|
Power Supply Agreement
|
PSD
|
Prevention of Significant Deterioration
|
PUCO
|
Public Utilities Commission of Ohio
|
PURPA
|
Public Utility Regulatory Policies Act of 1978
|
REC
|
Renewable Energy Credit
|
RFC
|
Reliability
First
|
RFP
|
Request for Proposal
|
RGGI
|
Regional Greenhouse Gas Initiative
|
ROE
|
Return on Equity
|
RTEP
|
Regional Transmission Expansion Plan
|
RTO
|
Regional Transmission Organization
|
S&P
|
Standard & Poor’s Ratings Service
|
SB221
|
Amended Substitute Senate Bill 221
|
SBC
|
Societal Benefits Charge
|
SEC
|
United States Securities and Exchange Commission
|
SIP
|
State Implementation Plan(s) Under the Clean Air Act
|
SMIP
|
Smart Meter Implementation Plan
|
SO
2
|
Sulfur Dioxide
|
SOS
|
Standard Offer Service
|
SREC
|
Solar Renewable Energy Credit
|
TDS
|
Total Dissolved Solid
|
TMDL
|
Total Maximum Daily Load
|
TMI-2
|
Three Mile Island Unit 2
|
TSC
|
Transmission Service Charge
|
VIE
|
Variable Interest Entity
|
VSCC
|
Virginia State Corporation Commission
|
WVDEP
|
West Virginia Department of Environmental Protection
|
WVPSC
|
Public Service Commission of West Virginia
|
|
|
Three Months
Ended March 31 |
||||||
(In millions, except per share amounts)
|
|
2012
|
|
2011
|
||||
|
|
|
|
|
||||
REVENUES:
|
|
|
|
|
||||
Electric utilities
|
|
$
|
2,554
|
|
|
$
|
2,332
|
|
Unregulated businesses
|
|
1,524
|
|
|
1,244
|
|
||
Total revenues*
|
|
4,078
|
|
|
3,576
|
|
||
|
|
|
|
|
||||
OPERATING EXPENSES:
|
|
|
|
|
||||
Fuel
|
|
541
|
|
|
453
|
|
||
Purchased power
|
|
1,347
|
|
|
1,186
|
|
||
Other operating expenses
|
|
812
|
|
|
993
|
|
||
Provision for depreciation
|
|
285
|
|
|
225
|
|
||
Amortization of regulatory assets, net
|
|
75
|
|
|
132
|
|
||
General taxes
|
|
272
|
|
|
237
|
|
||
Total operating expenses
|
|
3,332
|
|
|
3,226
|
|
||
|
|
|
|
|
||||
OPERATING INCOME
|
|
746
|
|
|
350
|
|
||
|
|
|
|
|
||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
||||
Investment income
|
|
11
|
|
|
21
|
|
||
Interest expense
|
|
(246
|
)
|
|
(231
|
)
|
||
Capitalized interest
|
|
17
|
|
|
18
|
|
||
Total other expense
|
|
(218
|
)
|
|
(192
|
)
|
||
|
|
|
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
528
|
|
|
158
|
|
||
|
|
|
|
|
||||
INCOME TAXES
|
|
222
|
|
|
111
|
|
||
|
|
|
|
|
||||
NET INCOME
|
|
306
|
|
|
47
|
|
||
|
|
|
|
|
||||
Loss attributable to noncontrolling interest
|
|
—
|
|
|
(5
|
)
|
||
|
|
|
|
|
||||
EARNINGS AVAILABLE TO FIRSTENERGY CORP.
|
|
$
|
306
|
|
|
$
|
52
|
|
|
|
|
|
|
||||
EARNINGS PER SHARE OF COMMON STOCK:
|
|
|
|
|
||||
Basic
|
|
$
|
0.73
|
|
|
$
|
0.15
|
|
Diluted
|
|
$
|
0.73
|
|
|
$
|
0.15
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
|
|
|
|
|
||||
Basic
|
|
418
|
|
|
342
|
|
||
Diluted
|
|
420
|
|
|
343
|
|
||
|
|
|
|
|
||||
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
*
|
Includes excise tax collections of
$121 million
and
$119 million
in the three months ended
March 31, 2012
and
2011
, respectively.
|
|
|
Three Months
Ended March 31 |
||||||
(In millions)
|
|
2012
|
|
2011
|
||||
|
|
|
|
|
||||
NET INCOME
|
|
$
|
306
|
|
|
$
|
47
|
|
|
|
|
|
|
||||
OTHER COMPREHENSIVE LOSS:
|
|
|
|
|
||||
Pensions and OPEB prior service costs
|
|
(53
|
)
|
|
(44
|
)
|
||
Amortized losses on derivative hedges
|
|
(2
|
)
|
|
(6
|
)
|
||
Change in unrealized gain on available-for-sale securities
|
|
10
|
|
|
9
|
|
||
Other comprehensive loss
|
|
(45
|
)
|
|
(41
|
)
|
||
Income tax benefits on other comprehensive loss
|
|
(24
|
)
|
|
(19
|
)
|
||
Other comprehensive loss, net of tax
|
|
(21
|
)
|
|
(22
|
)
|
||
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
|
285
|
|
|
25
|
|
||
|
|
|
|
|
||||
Comprehensive loss attributable to noncontrolling interest
|
|
—
|
|
|
(5
|
)
|
||
|
|
|
|
|
||||
COMPREHENSIVE INCOME AVAILABLE TO FIRSTENERGY CORP.
|
|
$
|
285
|
|
|
$
|
30
|
|
(In millions, except share amounts)
|
|
March 31,
2012 |
|
December 31,
2011 |
||||
ASSETS
|
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
74
|
|
|
$
|
202
|
|
Receivables-
|
|
|
|
|
||||
Customers, net of allowance for uncollectible accounts of $35 in 2012 and $37 in 2011
|
|
1,449
|
|
|
1,525
|
|
||
Other, net of allowance for uncollectible accounts of $8 in 2012 and $3 in 2011
|
|
286
|
|
|
269
|
|
||
Materials and supplies
|
|
927
|
|
|
811
|
|
||
Prepaid taxes
|
|
213
|
|
|
191
|
|
||
Derivatives
|
|
346
|
|
|
235
|
|
||
Other
|
|
182
|
|
|
122
|
|
||
|
|
3,477
|
|
|
3,355
|
|
||
PROPERTY, PLANT AND EQUIPMENT:
|
|
|
|
|
||||
In service
|
|
40,587
|
|
|
40,122
|
|
||
Less — Accumulated provision for depreciation
|
|
12,086
|
|
|
11,839
|
|
||
|
|
28,501
|
|
|
28,283
|
|
||
Construction work in progress
|
|
2,065
|
|
|
2,054
|
|
||
|
|
30,566
|
|
|
30,337
|
|
||
INVESTMENTS:
|
|
|
|
|
||||
Nuclear plant decommissioning trusts
|
|
2,135
|
|
|
2,112
|
|
||
Investments in lease obligation bonds
|
|
336
|
|
|
402
|
|
||
Other
|
|
1,011
|
|
|
1,008
|
|
||
|
|
3,482
|
|
|
3,522
|
|
||
DEFERRED CHARGES AND OTHER ASSETS:
|
|
|
|
|
||||
Goodwill
|
|
6,444
|
|
|
6,441
|
|
||
Regulatory assets
|
|
2,006
|
|
|
2,030
|
|
||
Other
|
|
1,716
|
|
|
1,641
|
|
||
|
|
10,166
|
|
|
10,112
|
|
||
|
|
$
|
47,691
|
|
|
$
|
47,326
|
|
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
|
||||
Currently payable long-term debt
|
|
$
|
1,772
|
|
|
$
|
1,621
|
|
Short-term borrowings
|
|
1,075
|
|
|
—
|
|
||
Accounts payable
|
|
918
|
|
|
1,174
|
|
||
Accrued taxes
|
|
442
|
|
|
558
|
|
||
Accrued compensation and benefits
|
|
258
|
|
|
384
|
|
||
Derivatives
|
|
299
|
|
|
218
|
|
||
Other
|
|
1,009
|
|
|
900
|
|
||
|
|
5,773
|
|
|
4,855
|
|
||
CAPITALIZATION:
|
|
|
|
|
||||
Common stockholders’ equity-
|
|
|
|
|
||||
Common stock, $0.10 par value, authorized 490,000,000 shares - 418,216,437 shares outstanding
|
|
42
|
|
|
42
|
|
||
Other paid-in capital
|
|
9,754
|
|
|
9,765
|
|
||
Accumulated other comprehensive income
|
|
405
|
|
|
426
|
|
||
Retained earnings
|
|
3,122
|
|
|
3,047
|
|
||
Total common stockholders’ equity
|
|
13,323
|
|
|
13,280
|
|
||
Noncontrolling interest
|
|
16
|
|
|
19
|
|
||
Total equity
|
|
13,339
|
|
|
13,299
|
|
||
Long-term debt and other long-term obligations
|
|
15,527
|
|
|
15,716
|
|
||
|
|
28,866
|
|
|
29,015
|
|
||
NONCURRENT LIABILITIES:
|
|
|
|
|
||||
Accumulated deferred income taxes
|
|
5,904
|
|
|
5,670
|
|
||
Retirement benefits
|
|
2,240
|
|
|
2,823
|
|
||
Asset retirement obligations
|
|
1,522
|
|
|
1,497
|
|
||
Deferred gain on sale and leaseback transaction
|
|
917
|
|
|
925
|
|
||
Adverse power contract liability
|
|
458
|
|
|
469
|
|
||
Other
|
|
2,011
|
|
|
2,072
|
|
||
|
|
13,052
|
|
|
13,456
|
|
||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9)
|
|
|
|
|
||||
|
|
$
|
47,691
|
|
|
$
|
47,326
|
|
|
|
Three Months
Ended March 31 |
||||||
(In millions)
|
|
2012
|
|
2011
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net Income
|
|
$
|
306
|
|
|
$
|
47
|
|
Adjustments to reconcile net income to net cash from operating activities-
|
|
|
|
|
||||
Provision for depreciation
|
|
285
|
|
|
225
|
|
||
Amortization of regulatory assets, net
|
|
75
|
|
|
132
|
|
||
Nuclear fuel and lease amortization
|
|
58
|
|
|
47
|
|
||
Deferred purchased power and other costs
|
|
(107
|
)
|
|
(58
|
)
|
||
Deferred income taxes and investment tax credits, net
|
|
265
|
|
|
204
|
|
||
Deferred rents and lease market valuation liability
|
|
(23
|
)
|
|
(15
|
)
|
||
Stock based compensation
|
|
(29
|
)
|
|
(9
|
)
|
||
Accrued compensation and retirement benefits
|
|
(162
|
)
|
|
(53
|
)
|
||
Commodity derivative transactions, net
|
|
(64
|
)
|
|
(25
|
)
|
||
Pension trust contributions
|
|
(600
|
)
|
|
(157
|
)
|
||
Asset impairments
|
|
4
|
|
|
31
|
|
||
Cash collateral, net
|
|
(28
|
)
|
|
(28
|
)
|
||
Decrease (increase) in operating assets-
|
|
|
|
|
||||
Receivables
|
|
59
|
|
|
164
|
|
||
Materials and supplies
|
|
(118
|
)
|
|
40
|
|
||
Prepayments and other current assets
|
|
(19
|
)
|
|
118
|
|
||
Increase (decrease) in operating liabilities-
|
|
|
|
|
||||
Accounts payable
|
|
(256
|
)
|
|
(90
|
)
|
||
Accrued taxes
|
|
(116
|
)
|
|
(182
|
)
|
||
Accrued interest
|
|
70
|
|
|
76
|
|
||
Other
|
|
(13
|
)
|
|
24
|
|
||
Net cash provided from (used for) operating activities
|
|
(413
|
)
|
|
491
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
New Financing-
|
|
|
|
|
||||
Long-term debt
|
|
—
|
|
|
217
|
|
||
Short-term borrowings, net
|
|
1,075
|
|
|
—
|
|
||
Redemptions and Repayments-
|
|
|
|
|
||||
Long-term debt
|
|
(16
|
)
|
|
(359
|
)
|
||
Short-term borrowings, net
|
|
—
|
|
|
(214
|
)
|
||
Common stock dividend payments
|
|
(230
|
)
|
|
(190
|
)
|
||
Other
|
|
(10
|
)
|
|
(4
|
)
|
||
Net cash provided from (used for) financing activities
|
|
819
|
|
|
(550
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Property additions
|
|
(589
|
)
|
|
(449
|
)
|
||
Sales of investment securities held in trusts
|
|
251
|
|
|
969
|
|
||
Purchases of investment securities held in trusts
|
|
(266
|
)
|
|
(993
|
)
|
||
Cash investments
|
|
78
|
|
|
47
|
|
||
Cash received in Allegheny merger
|
|
—
|
|
|
590
|
|
||
Other
|
|
(8
|
)
|
|
(23
|
)
|
||
Net cash provided from (used for) investing activities
|
|
(534
|
)
|
|
141
|
|
||
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
(128
|
)
|
|
82
|
|
||
Cash and cash equivalents at beginning of period
|
|
202
|
|
|
1,019
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
74
|
|
|
$
|
1,101
|
|
|
|
|
|
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
||||
Non-cash transaction: merger with Allegheny, common stock issued
|
|
$
|
—
|
|
|
$
|
4,354
|
|
|
|
Three Months
Ended March 31 |
||||||
(In millions)
|
|
2012
|
|
2011
|
||||
|
|
|
|
|
||||
STATEMENTS OF INCOME
|
|
|
|
|
||||
REVENUES:
|
|
|
|
|
||||
Electric sales to non-affiliates
|
|
$
|
1,332
|
|
|
$
|
1,044
|
|
Electric sales to affiliates
|
|
121
|
|
|
261
|
|
||
Other
|
|
63
|
|
|
86
|
|
||
Total revenues
|
|
1,516
|
|
|
1,391
|
|
||
|
|
|
|
|
||||
OPERATING EXPENSES:
|
|
|
|
|
||||
Fuel
|
|
295
|
|
|
343
|
|
||
Purchased power from affiliates
|
|
117
|
|
|
69
|
|
||
Purchased power from non-affiliates
|
|
487
|
|
|
297
|
|
||
Other operating expenses
|
|
295
|
|
|
465
|
|
||
Provision for depreciation
|
|
63
|
|
|
69
|
|
||
General taxes
|
|
37
|
|
|
29
|
|
||
Impairment of long-lived assets
|
|
—
|
|
|
14
|
|
||
Total operating expenses
|
|
1,294
|
|
|
1,286
|
|
||
|
|
|
|
|
||||
OPERATING INCOME
|
|
222
|
|
|
105
|
|
||
|
|
|
|
|
||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
||||
Investment income
|
|
6
|
|
|
6
|
|
||
Miscellaneous income
|
|
4
|
|
|
4
|
|
||
Interest expense — affiliates
|
|
(2
|
)
|
|
(1
|
)
|
||
Interest expense — other
|
|
(41
|
)
|
|
(53
|
)
|
||
Capitalized interest
|
|
9
|
|
|
10
|
|
||
Total other income (expense)
|
|
(24
|
)
|
|
(34
|
)
|
||
|
|
|
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
198
|
|
|
71
|
|
||
|
|
|
|
|
||||
INCOME TAXES
|
|
76
|
|
|
26
|
|
||
|
|
|
|
|
||||
NET INCOME
|
|
$
|
122
|
|
|
$
|
45
|
|
|
|
|
|
|
||||
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
||||
NET INCOME
|
|
$
|
122
|
|
|
$
|
45
|
|
|
|
|
|
|
||||
OTHER COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
||||
Pensions and OPEB prior service costs
|
|
(5
|
)
|
|
(10
|
)
|
||
Amortized losses on derivative hedges
|
|
(5
|
)
|
|
(9
|
)
|
||
Change in unrealized gain on available-for-sale securities
|
|
10
|
|
|
8
|
|
||
Other comprehensive loss
|
|
—
|
|
|
(11
|
)
|
||
Income taxes (benefits) on other comprehensive income (loss)
|
|
2
|
|
|
(6
|
)
|
||
Other comprehensive loss, net of tax
|
|
(2
|
)
|
|
(5
|
)
|
||
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
|
$
|
120
|
|
|
$
|
40
|
|
(In millions, except share amounts)
|
|
March 31,
2012 |
|
December 31,
2011 |
||||
ASSETS
|
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
7
|
|
|
$
|
7
|
|
Receivables-
|
|
|
|
|
||||
Customers, net of allowance for uncollectible accounts of $16 in 2012 and 2011
|
|
395
|
|
|
424
|
|
||
Affiliated companies
|
|
541
|
|
|
600
|
|
||
Other, net of allowance for uncollectible accounts of $3 in 2012 and 2011
|
|
122
|
|
|
61
|
|
||
Notes receivable from affiliated companies
|
|
12
|
|
|
383
|
|
||
Materials and supplies
|
|
551
|
|
|
492
|
|
||
Derivatives
|
|
322
|
|
|
219
|
|
||
Prepayments and other
|
|
24
|
|
|
38
|
|
||
|
|
1,974
|
|
|
2,224
|
|
||
PROPERTY, PLANT AND EQUIPMENT:
|
|
|
|
|
||||
In service
|
|
11,002
|
|
|
10,983
|
|
||
Less — Accumulated provision for depreciation
|
|
4,214
|
|
|
4,110
|
|
||
|
|
6,788
|
|
|
6,873
|
|
||
Construction work in progress
|
|
1,173
|
|
|
1,014
|
|
||
|
|
7,961
|
|
|
7,887
|
|
||
INVESTMENTS:
|
|
|
|
|
||||
Nuclear plant decommissioning trusts
|
|
1,240
|
|
|
1,223
|
|
||
Other
|
|
7
|
|
|
7
|
|
||
|
|
1,247
|
|
|
1,230
|
|
||
DEFERRED CHARGES AND OTHER ASSETS:
|
|
|
|
|
||||
Customer intangibles
|
|
120
|
|
|
123
|
|
||
Goodwill
|
|
24
|
|
|
24
|
|
||
Property taxes
|
|
43
|
|
|
43
|
|
||
Unamortized sale and leaseback costs
|
|
120
|
|
|
80
|
|
||
Derivatives
|
|
117
|
|
|
79
|
|
||
Other
|
|
171
|
|
|
129
|
|
||
|
|
595
|
|
|
478
|
|
||
|
|
$
|
11,777
|
|
|
$
|
11,819
|
|
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
|
||||
Currently payable long-term debt
|
|
$
|
905
|
|
|
$
|
905
|
|
Accounts payable-
|
|
|
|
|
||||
Affiliated companies
|
|
483
|
|
|
436
|
|
||
Other
|
|
190
|
|
|
220
|
|
||
Accrued Taxes
|
|
75
|
|
|
227
|
|
||
Derivatives
|
|
281
|
|
|
189
|
|
||
Other
|
|
245
|
|
|
261
|
|
||
|
|
2,179
|
|
|
2,238
|
|
||
CAPITALIZATION:
|
|
|
|
|
||||
Common stockholder's equity-
|
|
|
|
|
||||
Common stock, without par value, authorized 750 shares- 7 shares outstanding
|
|
1,568
|
|
|
1,570
|
|
||
Accumulated other comprehensive income
|
|
74
|
|
|
76
|
|
||
Retained earnings
|
|
2,053
|
|
|
1,931
|
|
||
Total common stockholder's equity
|
|
3,695
|
|
|
3,577
|
|
||
Long-term debt and other long-term obligations
|
|
2,797
|
|
|
2,799
|
|
||
|
|
6,492
|
|
|
6,376
|
|
||
NONCURRENT LIABILITIES:
|
|
|
|
|
||||
Deferred gain on sale and leaseback transaction
|
|
917
|
|
|
925
|
|
||
Accumulated deferred income taxes
|
|
365
|
|
|
286
|
|
||
Asset retirement obligations
|
|
919
|
|
|
904
|
|
||
Retirement benefits
|
|
151
|
|
|
356
|
|
||
Lease market valuation liability
|
|
160
|
|
|
171
|
|
||
Other
|
|
594
|
|
|
563
|
|
||
|
|
3,106
|
|
|
3,205
|
|
||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9)
|
|
|
|
|
||||
|
|
$
|
11,777
|
|
|
$
|
11,819
|
|
|
|
Three Months
Ended March 31 |
||||||
(In millions)
|
|
2012
|
|
2011
|
||||
|
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net Income
|
|
$
|
122
|
|
|
$
|
45
|
|
Adjustments to reconcile net income to net cash from operating activities-
|
|
|
|
|
||||
Provision for depreciation
|
|
63
|
|
|
69
|
|
||
Nuclear fuel and lease amortization
|
|
57
|
|
|
47
|
|
||
Deferred rents and lease market valuation liability
|
|
(47
|
)
|
|
(39
|
)
|
||
Deferred income taxes and investment tax credits, net
|
|
83
|
|
|
67
|
|
||
Asset impairments
|
|
3
|
|
|
19
|
|
||
Accrued compensation and retirement benefits
|
|
(10
|
)
|
|
(16
|
)
|
||
Pension trust contribution
|
|
(209
|
)
|
|
—
|
|
||
Commodity derivative transactions, net
|
|
(52
|
)
|
|
(35
|
)
|
||
Cash collateral, net
|
|
(25
|
)
|
|
(27
|
)
|
||
Decrease (increase) in operating assets-
|
|
|
|
|
||||
Receivables
|
|
28
|
|
|
(76
|
)
|
||
Materials and supplies
|
|
(59
|
)
|
|
61
|
|
||
Prepayments and other current assets
|
|
14
|
|
|
8
|
|
||
Increase (decrease) in operating liabilities-
|
|
|
|
|
||||
Accounts payable
|
|
17
|
|
|
(18
|
)
|
||
Accrued taxes
|
|
(155
|
)
|
|
(3
|
)
|
||
Other
|
|
(8
|
)
|
|
(8
|
)
|
||
Net cash provided from (used for) operating activities
|
|
(178
|
)
|
|
94
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
New financing-
|
|
|
|
|
||||
Long-term debt
|
|
—
|
|
|
150
|
|
||
Short-term borrowings, net
|
|
—
|
|
|
350
|
|
||
Redemptions and repayments-
|
|
|
|
|
||||
Long-term debt
|
|
—
|
|
|
(332
|
)
|
||
Other
|
|
(3
|
)
|
|
(1
|
)
|
||
Net cash provided from (used for) financing activities
|
|
(3
|
)
|
|
167
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Property additions
|
|
(181
|
)
|
|
(159
|
)
|
||
Sales of investment securities held in trusts
|
|
83
|
|
|
216
|
|
||
Purchases of investment securities held in trusts
|
|
(90
|
)
|
|
(231
|
)
|
||
Loans from (to) affiliated companies, net
|
|
371
|
|
|
(82
|
)
|
||
Other
|
|
(2
|
)
|
|
(7
|
)
|
||
Net cash provided from (used for) investing activities
|
|
181
|
|
|
(263
|
)
|
||
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
—
|
|
|
(2
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
7
|
|
|
9
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
7
|
|
|
$
|
7
|
|
|
|
Three Months
Ended March 31 |
||||||
(In millions)
|
|
2012
|
|
2011
|
||||
|
|
|
|
|
||||
STATEMENTS OF INCOME
|
|
|
|
|
||||
REVENUES:
|
|
|
|
|
||||
Electric sales
|
|
$
|
359
|
|
|
$
|
364
|
|
Excise and gross receipts tax collections
|
|
27
|
|
|
28
|
|
||
Total revenues
|
|
386
|
|
|
392
|
|
||
|
|
|
|
|
||||
OPERATING EXPENSES:
|
|
|
|
|
||||
Purchased power from affiliates
|
|
52
|
|
|
93
|
|
||
Purchased power from non-affiliates
|
|
70
|
|
|
60
|
|
||
Other operating expenses
|
|
121
|
|
|
96
|
|
||
Provision for depreciation
|
|
24
|
|
|
23
|
|
||
Amortization of regulatory assets, net
|
|
—
|
|
|
1
|
|
||
General taxes
|
|
50
|
|
|
50
|
|
||
Total operating expenses
|
|
317
|
|
|
323
|
|
||
|
|
|
|
|
||||
OPERATING INCOME
|
|
69
|
|
|
69
|
|
||
|
|
|
|
|
||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
||||
Investment income
|
|
4
|
|
|
5
|
|
||
Interest expense
|
|
(22
|
)
|
|
(22
|
)
|
||
Capitalized interest
|
|
1
|
|
|
—
|
|
||
Total other expense
|
|
(17
|
)
|
|
(17
|
)
|
||
|
|
|
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
52
|
|
|
52
|
|
||
|
|
|
|
|
||||
INCOME TAXES
|
|
21
|
|
|
20
|
|
||
|
|
|
|
|
||||
NET INCOME
|
|
$
|
31
|
|
|
$
|
32
|
|
|
|
|
|
|
||||
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
||||
|
|
|
|
|
||||
NET INCOME
|
|
$
|
31
|
|
|
$
|
32
|
|
|
|
|
|
|
||||
OTHER COMPREHENSIVE LOSS:
|
|
|
|
|
||||
Pensions and OPEB prior service costs
|
|
(10
|
)
|
|
(7
|
)
|
||
Other comprehensive loss
|
|
(10
|
)
|
|
(7
|
)
|
||
Income tax benefits on other comprehensive loss
|
|
(5
|
)
|
|
(4
|
)
|
||
Other comprehensive loss, net of tax
|
|
(5
|
)
|
|
(3
|
)
|
||
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
|
$
|
26
|
|
|
$
|
29
|
|
(In millions, except share amounts)
|
|
March 31,
2012 |
|
December 31,
2011 |
||||
ASSETS
|
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
26
|
|
Receivables-
|
|
|
|
|
||||
Customers, net of allowance for uncollectible accounts of $4 in 2012 and 2011
|
|
154
|
|
|
163
|
|
||
Affiliated companies
|
|
72
|
|
|
86
|
|
||
Other
|
|
37
|
|
|
41
|
|
||
Notes receivable from affiliated companies
|
|
259
|
|
|
181
|
|
||
Prepayments and other
|
|
11
|
|
|
17
|
|
||
|
|
533
|
|
|
514
|
|
||
UTILITY PLANT:
|
|
|
|
|
||||
In service
|
|
3,405
|
|
|
3,358
|
|
||
Less — Accumulated provision for depreciation
|
|
1,280
|
|
|
1,267
|
|
||
|
|
2,125
|
|
|
2,091
|
|
||
Construction work in progress
|
|
85
|
|
|
91
|
|
||
|
|
2,210
|
|
|
2,182
|
|
||
OTHER PROPERTY AND INVESTMENTS:
|
|
|
|
|
||||
Investment in lease obligation bonds
|
|
162
|
|
|
163
|
|
||
Nuclear plant decommissioning trusts
|
|
137
|
|
|
137
|
|
||
Other
|
|
92
|
|
|
90
|
|
||
|
|
391
|
|
|
390
|
|
||
DEFERRED CHARGES AND OTHER ASSETS:
|
|
|
|
|
||||
Regulatory assets
|
|
362
|
|
|
363
|
|
||
Pension assets
|
|
6
|
|
|
5
|
|
||
Property taxes
|
|
80
|
|
|
81
|
|
||
Unamortized sale and leaseback costs
|
|
24
|
|
|
25
|
|
||
Other
|
|
16
|
|
|
14
|
|
||
|
|
488
|
|
|
488
|
|
||
|
|
$
|
3,622
|
|
|
$
|
3,574
|
|
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
|
||||
Currently payable long-term debt
|
|
$
|
3
|
|
|
$
|
2
|
|
Accounts payable-
|
|
|
|
|
||||
Affiliated companies
|
|
110
|
|
|
119
|
|
||
Other
|
|
34
|
|
|
35
|
|
||
Accrued taxes
|
|
88
|
|
|
88
|
|
||
Accrued interest
|
|
25
|
|
|
25
|
|
||
Other
|
|
102
|
|
|
79
|
|
||
|
|
362
|
|
|
348
|
|
||
CAPITALIZATION:
|
|
|
|
|
||||
Common stockholder's equity-
|
|
|
|
|
||||
Common stock, without par value, authorized 175,000,000 shares – 60 shares outstanding
|
|
747
|
|
|
747
|
|
||
Accumulated other comprehensive income
|
|
49
|
|
|
54
|
|
||
Accumulated deficit
|
|
(53
|
)
|
|
(84
|
)
|
||
Total common stockholder's equity
|
|
743
|
|
|
717
|
|
||
Noncontrolling interest
|
|
5
|
|
|
5
|
|
||
Total equity
|
|
748
|
|
|
722
|
|
||
Long-term debt and other long-term obligations
|
|
1,156
|
|
|
1,155
|
|
||
|
|
1,904
|
|
|
1,877
|
|
||
NONCURRENT LIABILITIES:
|
|
|
|
|
||||
Accumulated deferred income taxes
|
|
791
|
|
|
787
|
|
||
Accumulated deferred investment tax credits
|
|
8
|
|
|
9
|
|
||
Retirement benefits
|
|
213
|
|
|
213
|
|
||
Asset retirement obligations
|
|
73
|
|
|
71
|
|
||
Other
|
|
271
|
|
|
269
|
|
||
|
|
1,356
|
|
|
1,349
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 9)
|
|
|
|
|
||||
|
|
$
|
3,622
|
|
|
$
|
3,574
|
|
|
|
Three Months
Ended March 31 |
||||||
(In millions)
|
|
2012
|
|
2011
|
||||
|
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net Income
|
|
$
|
31
|
|
|
$
|
32
|
|
Adjustments to reconcile net income to net cash from operating activities-
|
|
|
|
|
||||
Provision for depreciation
|
|
24
|
|
|
23
|
|
||
Amortization of regulatory assets, net
|
|
—
|
|
|
1
|
|
||
Amortization of lease costs
|
|
33
|
|
|
33
|
|
||
Deferred income taxes and investment tax credits, net
|
|
11
|
|
|
29
|
|
||
Accrued compensation and retirement benefits
|
|
(17
|
)
|
|
(13
|
)
|
||
Cash collateral, net
|
|
(2
|
)
|
|
—
|
|
||
Pension trust contributions
|
|
—
|
|
|
(27
|
)
|
||
Decrease (increase) in operating assets-
|
|
|
|
|
||||
Receivables
|
|
27
|
|
|
82
|
|
||
Prepayments and other current assets
|
|
7
|
|
|
(23
|
)
|
||
Increase (decrease) in operating liabilities-
|
|
|
|
|
||||
Accounts payable
|
|
(10
|
)
|
|
(20
|
)
|
||
Accrued taxes
|
|
1
|
|
|
(10
|
)
|
||
Other
|
|
(5
|
)
|
|
(3
|
)
|
||
Net cash provided from operating activities
|
|
100
|
|
|
104
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Redemptions and Repayments-
|
|
|
|
|
||||
Short-term borrowings, net
|
|
—
|
|
|
(39
|
)
|
||
Common stock dividend payments
|
|
—
|
|
|
(100
|
)
|
||
Other
|
|
(1
|
)
|
|
—
|
|
||
Net cash used for financing activities
|
|
(1
|
)
|
|
(139
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Property additions
|
|
(43
|
)
|
|
(37
|
)
|
||
Sales of investment securities held in trusts
|
|
37
|
|
|
8
|
|
||
Purchases of investment securities held in trusts
|
|
(38
|
)
|
|
(9
|
)
|
||
Loans to affiliated companies, net
|
|
(78
|
)
|
|
—
|
|
||
Other
|
|
(3
|
)
|
|
(2
|
)
|
||
Net cash used for investing activities
|
|
(125
|
)
|
|
(40
|
)
|
||
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
(26
|
)
|
|
(75
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
26
|
|
|
420
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
345
|
|
|
|
Three Months
Ended March 31 |
||||||
(In millions)
|
|
2012
|
|
2011
|
||||
|
|
|
|
|
||||
STATEMENTS OF INCOME
|
|
|
|
|
||||
REVENUES:
|
|
|
|
|
||||
Electric sales
|
|
$
|
478
|
|
|
$
|
634
|
|
Excise tax collections
|
|
10
|
|
|
13
|
|
||
Total revenues
|
|
488
|
|
|
647
|
|
||
|
|
|
|
|
||||
OPERATING EXPENSES:
|
|
|
|
|
||||
Purchased power
|
|
264
|
|
|
370
|
|
||
Other operating expenses
|
|
81
|
|
|
80
|
|
||
Provision for depreciation
|
|
30
|
|
|
26
|
|
||
Amortization of regulatory assets, net
|
|
20
|
|
|
82
|
|
||
General taxes
|
|
15
|
|
|
18
|
|
||
Total operating expenses
|
|
410
|
|
|
576
|
|
||
|
|
|
|
|
||||
OPERATING INCOME
|
|
78
|
|
|
71
|
|
||
|
|
|
|
|
||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
||||
Miscellaneous income
|
|
1
|
|
|
2
|
|
||
Interest expense
|
|
(31
|
)
|
|
(30
|
)
|
||
Total other expense
|
|
(30
|
)
|
|
(28
|
)
|
||
|
|
|
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
48
|
|
|
43
|
|
||
|
|
|
|
|
||||
INCOME TAXES
|
|
22
|
|
|
20
|
|
||
|
|
|
|
|
||||
NET INCOME
|
|
$
|
26
|
|
|
$
|
23
|
|
|
|
|
|
|
||||
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
||||
|
|
|
|
|
||||
NET INCOME
|
|
$
|
26
|
|
|
$
|
23
|
|
|
|
|
|
|
||||
OTHER COMPREHENSIVE LOSS:
|
|
|
|
|
||||
Pensions and OPEB prior service costs
|
|
(6
|
)
|
|
(6
|
)
|
||
Other comprehensive loss
|
|
(6
|
)
|
|
(6
|
)
|
||
Income tax benefits on other comprehensive loss
|
|
(4
|
)
|
|
(3
|
)
|
||
Other comprehensive loss, net of tax
|
|
(2
|
)
|
|
(3
|
)
|
||
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
|
$
|
24
|
|
|
$
|
20
|
|
(In millions, except share amounts)
|
|
March 31,
2012 |
|
December 31,
2011 |
|||||
ASSETS
|
|
|
|
|
|||||
CURRENT ASSETS:
|
|
|
|
|
|||||
Receivables-
|
|
|
|
|
|||||
Customers, net of allowance for uncollectible accounts of $3 in 2012 and $4 in 2011
|
|
$
|
202
|
|
|
$
|
235
|
|
|
Affiliated companies
|
|
35
|
|
|
—
|
|
|||
Other
|
|
16
|
|
|
17
|
|
|||
Prepaid taxes
|
|
39
|
|
|
33
|
|
|||
Other
|
|
24
|
|
|
19
|
|
|||
|
|
316
|
|
|
304
|
|
|||
UTILITY PLANT:
|
|
|
|
|
|||||
In service
|
|
5,022
|
|
|
4,872
|
|
|||
Less — Accumulated provision for depreciation
|
|
1,759
|
|
|
1,743
|
|
|||
|
|
3,263
|
|
|
3,129
|
|
|||
Construction work in progress
|
|
119
|
|
|
227
|
|
|||
|
|
3,382
|
|
|
3,356
|
|
|||
OTHER PROPERTY AND INVESTMENTS:
|
|
|
|
|
|||||
Nuclear fuel disposal trust
|
|
225
|
|
|
219
|
|
|||
Nuclear plant decommissioning trusts
|
|
195
|
|
|
193
|
|
|||
Other
|
|
2
|
|
|
2
|
|
|||
|
|
422
|
|
|
414
|
|
|||
DEFERRED CHARGES AND OTHER ASSETS:
|
|
|
|
|
|||||
Goodwill
|
|
1,811
|
|
|
1,811
|
|
|||
Regulatory assets
|
|
384
|
|
|
408
|
|
|||
Other
|
|
32
|
|
|
32
|
|
|||
|
|
2,227
|
|
|
2,251
|
|
|||
|
|
$
|
6,347
|
|
|
$
|
6,325
|
|
|
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
|||||
CURRENT LIABILITIES:
|
|
|
|
|
|||||
Currently payable long-term debt
|
|
$
|
34
|
|
|
$
|
34
|
|
|
Short-term borrowings-
|
|
|
|
|
|||||
Affiliated companies
|
|
300
|
|
|
259
|
|
|||
Accounts payable-
|
|
|
|
|
|||||
Affiliated companies
|
|
3
|
|
|
19
|
|
|||
Other
|
|
94
|
|
|
101
|
|
|||
Accrued compensation and benefits
|
|
33
|
|
|
41
|
|
|||
Customer deposits
|
|
24
|
|
|
24
|
|
|||
Accrued interest
|
|
30
|
|
|
18
|
|
|||
Other
|
|
41
|
|
|
36
|
|
|||
|
|
559
|
|
|
532
|
|
|||
CAPITALIZATION:
|
|
|
|
|
|||||
Common stockholder's equity-
|
|
|
|
|
|||||
Common stock, $10 par value, authorized 16,000,000 shares, 13,628,447 shares outstanding
|
|
136
|
|
|
136
|
|
|||
Other paid-in capital
|
|
2,011
|
|
|
2,011
|
|
|||
Accumulated other comprehensive income
|
|
36
|
|
|
39
|
|
|||
Retained earnings
|
|
146
|
|
|
121
|
|
|||
Total common stockholder's equity
|
|
2,329
|
|
|
2,307
|
|
|||
Long-term debt and other long-term obligations
|
|
1,729
|
|
|
1,736
|
|
|||
|
|
4,058
|
|
|
4,043
|
|
|||
NONCURRENT LIABILITIES:
|
|
|
|
|
|||||
Accumulated deferred income taxes
|
|
908
|
|
|
859
|
|
|||
Power purchase contract liability
|
|
136
|
|
|
147
|
|
|||
Nuclear fuel disposal costs
|
|
197
|
|
|
197
|
|
|||
Retirement benefits
|
|
163
|
|
|
170
|
|
|||
Asset retirement obligations
|
|
117
|
|
|
115
|
|
|||
Other
|
|
209
|
|
|
262
|
|
|||
|
|
1,730
|
|
|
1,750
|
|
|||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9)
|
1
|
|
|
|
|
||||
|
|
$
|
6,347
|
|
|
$
|
6,325
|
|
|
|
Three Months
Ended March 31 |
||||||
(In millions)
|
|
2012
|
|
2011
|
||||
|
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net Income
|
|
$
|
26
|
|
|
$
|
23
|
|
Adjustments to reconcile net income to net cash from operating activities-
|
|
|
|
|
||||
Provision for depreciation
|
|
30
|
|
|
26
|
|
||
Amortization of regulatory assets, net
|
|
20
|
|
|
82
|
|
||
Deferred purchased power and other costs
|
|
(69
|
)
|
|
(27
|
)
|
||
Deferred income taxes and investment tax credits, net
|
|
52
|
|
|
28
|
|
||
Accrued compensation and retirement benefits
|
|
(22
|
)
|
|
(11
|
)
|
||
Cash collateral, net
|
|
6
|
|
|
—
|
|
||
Decrease (increase) in operating assets-
|
|
|
|
|
||||
Receivables
|
|
(2
|
)
|
|
86
|
|
||
Prepaid taxes
|
|
(6
|
)
|
|
(2
|
)
|
||
Increase (decrease) in operating liabilities-
|
|
|
|
|
||||
Accounts payable
|
|
(22
|
)
|
|
(62
|
)
|
||
Accrued taxes
|
|
(5
|
)
|
|
13
|
|
||
Accrued interest
|
|
12
|
|
|
12
|
|
||
Other
|
|
9
|
|
|
14
|
|
||
Net cash provided from operating activities
|
|
29
|
|
|
182
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
New Financing-
|
|
|
|
|
||||
Short-term borrowings, net
|
|
40
|
|
|
—
|
|
||
Redemptions and Repayments-
|
|
|
|
|
||||
Long-term debt
|
|
(8
|
)
|
|
(7
|
)
|
||
Net cash provided from (used for) financing activities
|
|
32
|
|
|
(7
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Property additions
|
|
(56
|
)
|
|
(47
|
)
|
||
Loans to affiliated companies, net
|
|
—
|
|
|
(121
|
)
|
||
Sales of investment securities held in trusts
|
|
95
|
|
|
217
|
|
||
Purchases of investment securities held in trusts
|
|
(99
|
)
|
|
(222
|
)
|
||
Other
|
|
(1
|
)
|
|
(2
|
)
|
||
Net cash used for investing activities
|
|
(61
|
)
|
|
(175
|
)
|
||
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
—
|
|
|
—
|
|
||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
—
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Three Months
Ended March 31 |
||||||
Reconciliation of Basic and Diluted Earnings per Share of Common Stock
|
|
2012
|
|
2011
|
||||
|
|
(In millions, except per share amounts)
|
||||||
|
|
|
|
|
||||
Weighted average number of basic shares outstanding
|
|
418
|
|
|
342
|
|
||
Assumed exercise of dilutive stock options and awards
(1)
|
|
2
|
|
|
1
|
|
||
Weighted average number of diluted shares outstanding
|
|
420
|
|
|
343
|
|
||
|
|
|
|
|
||||
Earnings Available to FirstEnergy Corp.
|
|
$
|
306
|
|
|
$
|
52
|
|
|
|
|
|
|
||||
Basic earnings per share of common stock
|
|
$
|
0.73
|
|
|
$
|
0.15
|
|
Diluted earnings per share of common stock
|
|
$
|
0.73
|
|
|
$
|
0.15
|
|
(1)
|
The number of potentially dilutive securities not included in the calculation of diluted shares outstanding due to their antidilutive effect were
not significant
for the
three months ended
March 31, 2012
and
2011
.
|
Components of Net Periodic Benefit Costs (Credits)
|
|
Pensions
|
|
OPEB
|
||||||||||||
For the Three Months Ended March 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
|
(In millions)
|
||||||||||||||
Service cost
|
|
$
|
40
|
|
|
$
|
29
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Interest cost
|
|
97
|
|
|
84
|
|
|
12
|
|
|
11
|
|
||||
Expected return on plan assets
|
|
(121
|
)
|
|
(102
|
)
|
|
(9
|
)
|
|
(10
|
)
|
||||
Amortization of prior service cost
|
|
3
|
|
|
4
|
|
|
(51
|
)
|
|
(48
|
)
|
||||
Other adjustments (settlements, curtailments, etc)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||
Net periodic costs (credits)
|
|
$
|
19
|
|
|
$
|
22
|
|
|
$
|
(45
|
)
|
|
$
|
(44
|
)
|
Net Periodic Benefit Costs (Credits)
|
|
Pensions
|
|
OPEB
|
||||||||||||
For the Three Months Ended March 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
|
|
(In millions)
|
||||||||||||||
FE Consolidated
|
|
$
|
13
|
|
|
$
|
20
|
|
|
$
|
(30
|
)
|
|
$
|
(32
|
)
|
FES
|
|
10
|
|
|
7
|
|
|
(8
|
)
|
|
(7
|
)
|
||||
OE
|
|
(1
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(6
|
)
|
||||
JCP&L
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
Maximum
Exposure
|
|
Discounted Lease
Payments, net
(1)
|
|
Net
Exposure
|
|||
|
(In millions)
|
|||||||
FES
|
1,384
|
|
|
1,179
|
|
|
205
|
|
OE
|
583
|
|
|
426
|
|
|
157
|
|
Other FE Subsidiaries
|
643
|
|
|
383
|
|
|
260
|
|
(1)
|
The net present value of FirstEnergy’s consolidated sale and leaseback operating lease commitments is
$1.6 billion
.
|
Level 1
|
-
|
Quoted prices for identical instruments in active market
|
|
|
|
Level 2
|
-
|
Quoted prices for similar instruments in active market
|
|
-
|
Quoted prices for identical or similar instruments in markets that are not active
|
|
-
|
Model-derived valuations for which all significant inputs are observable market data
|
Level 3
|
-
|
Valuation inputs are unobservable and significant to the fair value measurement
|
FE CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recurring Fair Value Measurements
|
March 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||||||||
Assets
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
1,561
|
|
|
$
|
—
|
|
|
1,561
|
|
|
$
|
—
|
|
|
$
|
1,544
|
|
|
$
|
—
|
|
|
$
|
1,544
|
|
|||||||
Derivative assets - commodity contracts
|
1
|
|
|
415
|
|
|
—
|
|
|
416
|
|
|
—
|
|
|
264
|
|
|
—
|
|
|
264
|
|
||||||||||||||
Derivative assets - FTRs
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||||||
Derivative assets - NUG contracts
(1)
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
56
|
|
||||||||||||||
Equity securities
(2)
|
289
|
|
|
—
|
|
|
—
|
|
|
289
|
|
|
259
|
|
|
—
|
|
|
—
|
|
|
259
|
|
||||||||||||||
Foreign government debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||||||||
U.S. government debt securities
|
—
|
|
|
138
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
148
|
|
|
—
|
|
|
148
|
|
||||||||||||||
U.S. state debt securities
|
—
|
|
|
313
|
|
|
—
|
|
|
313
|
|
|
—
|
|
|
314
|
|
|
—
|
|
|
314
|
|
||||||||||||||
Other
(3)
|
54
|
|
|
167
|
|
|
—
|
|
|
221
|
|
|
49
|
|
|
225
|
|
|
—
|
|
|
274
|
|
||||||||||||||
Total assets
|
344
|
|
|
2,594
|
|
|
43
|
|
|
2,981
|
|
|
308
|
|
|
2,498
|
|
|
57
|
|
|
2,863
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Derivative liabilities - commodity contracts
|
(2
|
)
|
|
(347
|
)
|
|
—
|
|
|
(349
|
)
|
|
—
|
|
|
(247
|
)
|
|
—
|
|
|
(247
|
)
|
||||||||||||||
Derivative liabilities - FTRs
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
(23
|
)
|
||||||||||||||
Derivative liabilities - NUG contracts
(1)
|
—
|
|
|
—
|
|
|
(342
|
)
|
|
(342
|
)
|
|
—
|
|
|
—
|
|
|
(349
|
)
|
|
(349
|
)
|
||||||||||||||
Total liabilities
|
(2
|
)
|
|
(347
|
)
|
|
(357
|
)
|
|
(706
|
)
|
|
—
|
|
|
(247
|
)
|
|
(372
|
)
|
|
(619
|
)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Net assets (liabilities)
(4)
|
$
|
342
|
|
|
$
|
2,247
|
|
|
$
|
(314
|
)
|
|
$
|
2,275
|
|
|
$
|
308
|
|
|
$
|
2,251
|
|
|
$
|
(315
|
)
|
|
$
|
2,244
|
|
(1)
|
NUG contracts are generally subject to regulatory accounting and do not impact earnings.
|
(2)
|
NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index.
|
(3)
|
Primarily consists of short-term cash investments.
|
(4)
|
Excludes
$2 million
and
$(52) million
as of
March 31, 2012
and
December 31, 2011
, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
|
|
NUG Contracts
|
|
FTRs
|
|||||||||||||||||||||||
|
Derivative Assets
(1)
|
|
Derivative Liabilities
(1)
|
|
Net
(1)
|
|
Derivative Assets
(1)
|
|
Derivative Liabilities
(1)
|
|
Net
(1)
|
|||||||||||||||
|
|
|
|
|
|
|
(In millions)
|
|||||||||||||||||||
January 1, 2011 Balance
|
$
|
122
|
|
|
$
|
(466
|
)
|
|
$
|
(344
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|||
Realized gain (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Unrealized gain (loss)
|
(58
|
)
|
|
(144
|
)
|
|
(202
|
)
|
|
2
|
|
|
(27
|
)
|
|
(25
|
)
|
|||||||||
Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
(4
|
)
|
|
9
|
|
|||||||||
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Settlements
|
(7
|
)
|
|
261
|
|
|
254
|
|
|
(14
|
)
|
|
20
|
|
|
6
|
|
|||||||||
Transfers in (out) of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(12
|
)
|
|
(12
|
)
|
|||||||||
December 31, 2011 Balance
|
$
|
57
|
|
|
$
|
(349
|
)
|
|
$
|
(292
|
)
|
|
$
|
1
|
|
|
$
|
(23
|
)
|
|
$
|
(22
|
)
|
|||
Realized gain (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Unrealized gain (loss)
|
(14
|
)
|
|
(65
|
)
|
|
(79
|
)
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||||||||
Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Settlements
|
(1
|
)
|
|
72
|
|
|
71
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|||||||||
Transfers in (out) of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
March 31, 2012 Balance
|
$
|
42
|
|
|
$
|
(342
|
)
|
|
$
|
(300
|
)
|
|
$
|
1
|
|
|
$
|
(15
|
)
|
|
$
|
(14
|
)
|
(1)
|
Changes in the fair value of NUG contracts are generally subject to regulatory accounting and do not impact earnings.
|
|
|
Fair Value as of March 31, 2012 (In millions)
|
|
Valuation
Technique
|
|
Significant Input
|
|
Range
|
|
Weighted Average
|
|
Units
|
||||
FTRs
|
|
$
|
(14
|
)
|
|
Model
|
|
RTO auction clearing prices
|
|
($4.18) to $9.81
|
|
$
|
1.51
|
|
|
Dollars/MWH
|
NUG Contracts
|
|
$
|
(300
|
)
|
|
Model
|
|
Generation
Power regional prices
|
|
500 to 6,809,000
$58.71 to $84.92
|
|
2,547,000
$66.77
|
|
|
MWH
Dollars/MWH
|
FES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recurring Fair Value Measurements
|
March 31, 2012
|
|
December 31, 2011
|
||||||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||||||||||
Assets
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
1,017
|
|
|
$
|
—
|
|
|
$
|
1,017
|
|
|
$
|
—
|
|
|
$
|
1,010
|
|
|
$
|
—
|
|
|
$
|
1,010
|
|
||||||||
Derivative assets - commodity contracts
|
1
|
|
|
391
|
|
|
—
|
|
|
392
|
|
|
—
|
|
|
248
|
|
|
—
|
|
|
248
|
|
||||||||||||||||
Derivative assets - FTRs
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||||||||||
Equity securities
(1)
|
150
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|
124
|
|
|
—
|
|
|
—
|
|
|
124
|
|
||||||||||||||||
Foreign government debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||||||||||
U.S. government debt securities
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||||||||||||
U.S. state debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||||||||||||
Other
(2)
|
—
|
|
|
66
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|
132
|
|
||||||||||||||||
Total assets
|
151
|
|
|
1,479
|
|
|
1
|
|
|
1,631
|
|
|
124
|
|
|
1,405
|
|
|
1
|
|
|
1,530
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Derivative liabilities - commodity contracts
|
(2
|
)
|
|
(340
|
)
|
|
—
|
|
|
(342
|
)
|
|
—
|
|
|
(234
|
)
|
|
—
|
|
|
(234
|
)
|
||||||||||||||||
Derivative liabilities - FTRs
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||||||||||||
Total liabilities
|
(2
|
)
|
|
(340
|
)
|
|
(5
|
)
|
|
(347
|
)
|
|
—
|
|
|
(234
|
)
|
|
(7
|
)
|
|
(241
|
)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net assets (liabilities)
(3)
|
$
|
149
|
|
|
$
|
1,139
|
|
|
$
|
(4
|
)
|
|
$
|
1,284
|
|
|
$
|
124
|
|
|
$
|
1,171
|
|
|
$
|
(6
|
)
|
|
$
|
1,289
|
|
(1)
|
NDT funds hold equity portfolios whose performance of which is benchmarked against the Alerian MLP Index.
|
(2)
|
Primarily consists of short-term cash investments.
|
(3)
|
Excludes
$2 million
and
$(58) million
as of
March 31, 2012
and
December 31, 2011
, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.
|
|
|
Derivative Asset FTRs
|
|
Derivative Liability FTRs
|
|
Net FTRs
|
|||||||||
|
|
(In millions)
|
|||||||||||||
January 1, 2011 Balance
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|||
Realized gain (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Unrealized gain (loss)
|
|
4
|
|
|
(8
|
)
|
|
(4
|
)
|
||||||
Purchases
|
|
2
|
|
|
(1
|
)
|
|
1
|
|
||||||
Issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
(5
|
)
|
|
2
|
|
|
(3
|
)
|
||||||
Transfers in (out) of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
December 31, 2011 Balance
|
|
$
|
1
|
|
|
$
|
(7
|
)
|
|
$
|
(6
|
)
|
|||
Realized gain (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Unrealized gain (loss)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Transfers in (out) of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
March 31, 2012 Balance
|
|
$
|
1
|
|
|
$
|
(4
|
)
|
|
$
|
(3
|
)
|
|
|
Fair Value as of March 31, 2012 (In millions)
|
|
Valuation
Technique
|
|
Significant Input
|
|
Range
|
|
Weighted Average
|
|
Units
|
||||
FTRs
|
|
$
|
(3
|
)
|
|
Model
|
|
RTO auction clearing prices
|
|
($4.18) to $8.03
|
|
$
|
0.76
|
|
|
Dollars/MWH
|
OE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recurring Fair Value Measurements
|
March 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||||||||||
Assets
|
(In millions)
|
|||||||||||||||||||||||||||||||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|||
U.S. government debt securities
|
—
|
|
|
133
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|
132
|
|
|||||||||||
Other
(1)
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||||||
Total assets
(2)
|
$
|
—
|
|
|
$
|
136
|
|
|
$
|
—
|
|
|
$
|
136
|
|
|
$
|
—
|
|
|
$
|
137
|
|
|
$
|
—
|
|
|
$
|
137
|
|
(1)
|
Primarily consists of short-term cash investments.
|
(2)
|
Excludes
$1 million
as of
March 31, 2012
and
December 31, 2011
, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.
|
JCP&L
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recurring Fair Value Measurements
|
March 31, 2012
|
|
December 31, 2011
|
||||||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||||||||||
Assets
|
(In millions)
|
||||||||||||||||||||||||||||||||||||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
148
|
|
|
$
|
—
|
|
|
$
|
148
|
|
|
$
|
—
|
|
|
$
|
144
|
|
|
$
|
—
|
|
|
$
|
144
|
|
||||||||
Derivative assets - NUG contracts
(1)
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||||||||||||
Equity securities
(2)
|
31
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
||||||||||||||||
U.S. government debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||||||||||
U.S. state debt securities
|
—
|
|
|
225
|
|
|
—
|
|
|
225
|
|
|
—
|
|
|
219
|
|
|
—
|
|
|
219
|
|
||||||||||||||||
Other
(3)
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||||||||||||
Total assets
|
31
|
|
|
389
|
|
|
4
|
|
|
424
|
|
|
30
|
|
|
380
|
|
|
4
|
|
|
414
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Derivative liabilities - NUG contracts
(1)
|
—
|
|
|
—
|
|
|
(136
|
)
|
|
(136
|
)
|
|
—
|
|
|
—
|
|
|
(147
|
)
|
|
(147
|
)
|
||||||||||||||||
Total liabilities
|
—
|
|
|
—
|
|
|
(136
|
)
|
|
(136
|
)
|
|
—
|
|
|
—
|
|
|
(147
|
)
|
|
(147
|
)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net assets (liabilities)
(4)
|
$
|
31
|
|
|
$
|
389
|
|
|
$
|
(132
|
)
|
|
$
|
288
|
|
|
$
|
30
|
|
|
$
|
380
|
|
|
$
|
(143
|
)
|
|
$
|
267
|
|
(1)
|
NUG contracts are subject to regulatory accounting and do not impact earnings.
|
(2)
|
NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index.
|
(3)
|
Primarily consists of short-term cash investments.
|
(4)
|
Excludes
$2 million
as of
December 31, 2011
of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.
|
|
|
Derivative Asset NUG Contracts
(1)
|
|
Derivative Liability NUG Contracts
(1)
|
|
Net NUG Contracts
(1)
|
|||||||||
|
|
(In millions)
|
|||||||||||||
January 1, 2011 Balance
|
|
$
|
6
|
|
|
(233
|
)
|
|
(227
|
)
|
|||||
Realized gain (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Unrealized gain (loss)
|
|
(2
|
)
|
|
(11
|
)
|
|
(13
|
)
|
||||||
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
—
|
|
|
97
|
|
|
97
|
|
||||||
Transfers in (out) of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
December 31, 2011
|
|
$
|
4
|
|
|
$
|
(147
|
)
|
|
$
|
(143
|
)
|
|||
Realized gain (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Unrealized gain (loss)
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
—
|
|
|
17
|
|
|
17
|
|
||||||
Transfers in (out) of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
March 31, 2012
|
|
$
|
4
|
|
|
$
|
(136
|
)
|
|
$
|
(132
|
)
|
(1)
|
Changes in the fair value of NUG contracts are subject to regulatory accounting and do not impact earnings.
|
|
|
Fair Value as of March 31, 2012 (In millions)
|
|
Valuation
Technique
|
|
Significant Input
|
|
Range
|
|
Weighted Average
|
|
Units
|
||
NUG Contracts
|
|
$
|
(132
|
)
|
Model
|
|
Generation
Power regional prices
|
|
69,000 to 736,000
$58.71 to $84.92
|
|
157,000
$68.65
|
|
MWH
Dollars/MWH
|
|
|
March 31, 2012
(1)
|
|
December 31, 2011
(2)
|
|||||||||||||||||||||||||
|
|
Cost Basis
|
|
Unrealized Gains
|
|
Unrealized Losses
|
|
Fair Value
|
|
Cost Basis
|
|
Unrealized Gains
|
|
Unrealized Losses
|
|
Fair Value
|
|||||||||||||
|
|
(In millions)
|
|||||||||||||||||||||||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
FE Consolidated
|
|
1,967
|
|
|
42
|
|
|
—
|
|
|
2,009
|
|
|
1,980
|
|
|
25
|
|
25
|
|
—
|
|
—
|
|
2,005
|
|
|||
FES
|
|
1,001
|
|
|
21
|
|
|
—
|
|
|
1,022
|
|
|
1,012
|
|
|
13
|
|
|
—
|
|
|
1,025
|
|
|||||
OE
|
|
133
|
|
|
—
|
|
|
—
|
|
|
133
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|||||
JCP&L
|
|
359
|
|
|
12
|
|
|
—
|
|
|
371
|
|
|
356
|
|
|
7
|
|
|
—
|
|
|
363
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
FE Consolidated
|
|
246
|
|
|
42
|
|
|
—
|
|
|
288
|
|
|
222
|
|
|
36
|
|
|
—
|
|
|
258
|
|
|||||
FES
|
|
127
|
|
|
23
|
|
|
—
|
|
|
150
|
|
|
104
|
|
|
20
|
|
|
—
|
|
|
124
|
|
|||||
JCP&L
|
|
27
|
|
|
4
|
|
|
—
|
|
|
31
|
|
|
27
|
|
|
3
|
|
|
—
|
|
|
30
|
|
(1)
|
Excludes short-term cash investments: FE Consolidated -
$160 million
; FES -
$68 million
; OE -
$4 million
; JCP&L -
$19 million
.
|
(2)
|
Excludes short-term cash investments: FE Consolidated -
$164 million
; FES -
$74 million
; OE -
$2 million
; JCP&L -
$19 million
.
|
March 31, 2012
|
|
Sales Proceeds
|
|
Realized Gains
|
|
Realized Losses
|
|
Interest and
Dividend Income
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||
FE Consolidated
|
|
$
|
251
|
|
|
$
|
19
|
|
|
$
|
(17
|
)
|
|
$
|
15
|
|
||||
FES
|
|
83
|
|
|
12
|
|
|
(11
|
)
|
|
7
|
|
||||||||
OE
|
|
37
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
JCP&L
|
|
95
|
|
|
1
|
|
|
(1
|
)
|
|
4
|
|
||||||||
March 31, 2011
|
|
Sales Proceeds
|
|
Realized Gains
|
|
Realized Losses
|
|
Interest and Dividend Income
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||
FE Consolidated
|
|
$
|
969
|
|
|
$
|
100
|
|
|
$
|
(29
|
)
|
|
$
|
24
|
|
||||
FES
|
|
216
|
|
|
12
|
|
|
(15
|
)
|
|
15
|
|
||||||||
OE
|
|
8
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
JCP&L
|
|
217
|
|
|
22
|
|
|
(4
|
)
|
|
4
|
|
|
|
March 31, 2012
|
|
December 31, 2011
|
|||||||||||||||||||
|
|
Cost Basis
|
|
Unrealized Gains
|
|
Fair Value
|
|
Cost Basis
|
|
Unrealized Gains
|
|
Fair Value
|
|||||||||||
|
|
(In millions)
|
|||||||||||||||||||||
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
FE Consolidated
|
|
336
|
|
|
41
|
|
|
377
|
|
|
402
|
|
|
50
|
|
|
452
|
|
|||||
OE
|
|
162
|
|
|
19
|
|
|
181
|
|
|
163
|
|
|
21
|
|
|
184
|
|
|
March 31, 2012
|
|
December 31, 2011
|
||||||||||||
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
|
(In millions)
|
||||||||||||||
FE Consolidated
|
$
|
17,130
|
|
|
$
|
19,321
|
|
|
$
|
17,165
|
|
|
$
|
19,320
|
|
FES
|
3,674
|
|
|
3,944
|
|
|
3,675
|
|
|
3,931
|
|
||||
OE
|
1,158
|
|
|
1,469
|
|
|
1,157
|
|
|
1,434
|
|
||||
JCP&L
|
1,770
|
|
|
2,071
|
|
|
1,777
|
|
|
2,080
|
|
|
Purchases
|
|
Sales
|
|
Net
|
|
Units
|
|||
|
(In millions)
|
|||||||||
Power Contracts
|
33
|
|
|
47
|
|
|
(14
|
)
|
|
MWH
|
FTRs
|
17
|
|
|
—
|
|
|
17
|
|
|
MWH
|
NUGs
|
23
|
|
|
—
|
|
|
23
|
|
|
MWH
|
Natural Gas Futures
|
11
|
|
|
—
|
|
|
11
|
|
|
Million British Thermal Units
|
|
Three Months Ended March 31
|
||||||||||||||
|
Power
Contracts
|
|
FTRs
|
|
Other
|
|
Total
|
||||||||
|
(In millions)
|
||||||||||||||
Derivatives in a Hedging Relationship
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
2012
|
|
|
|
|
|
|
|
||||||||
Gain (Loss) Recognized in AOCI (Effective Portion)
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
|
|
|
|
|
|
|
||||||||
2011
|
|
|
|
|
|
|
|
||||||||
Gain (Loss) Recognized in AOCI (Effective Portion)
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
Effective Gain (Loss) Reclassified to:
|
|
|
|
|
|
|
|
||||||||
Purchased Power Expense
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||
Revenues
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||
Fuel Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Derivatives Not in a Hedging Relationship
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
2012
|
|
|
|
|
|
|
|
||||||||
Unrealized Gain (Loss) Recognized in:
|
|
|
|
|
|
|
|
||||||||
Purchased Power Expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other Operating Expense
|
55
|
|
|
5
|
|
|
(2
|
)
|
|
58
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Realized Gain (Loss) Reclassified to:
|
|
|
|
|
|
|
|
||||||||
Purchased Power Expense
|
(117
|
)
|
|
—
|
|
|
—
|
|
|
(117
|
)
|
||||
Revenues
|
112
|
|
|
6
|
|
|
—
|
|
|
118
|
|
||||
Other Operating Expense
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
2011
|
|
|
|
|
|
|
|
||||||||
Unrealized Gain (Loss) Recognized in:
|
|
|
|
|
|
|
|
||||||||
Purchased Power Expense
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29
|
|
Other Operating Expense
|
(20
|
)
|
|
1
|
|
|
1
|
|
|
(18
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Realized Gain (Loss) Reclassified to:
|
|
|
|
|
|
|
|
||||||||
Purchased Power Expense
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
||||
Revenue
|
10
|
|
|
3
|
|
|
(1
|
)
|
|
12
|
|
||||
Other Operating Expense
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
|
|
Three Months Ended March 31
|
||||||||||
Derivatives Not in a Hedging Relationship with Regulatory Offset
(1)
|
|
NUGs
|
|
Other
|
|
Total
|
||||||
|
|
(In millions)
|
||||||||||
Outstanding net asset (liability) as of January 1, 2012
|
|
$
|
(293
|
)
|
|
$
|
(8
|
)
|
|
$
|
(301
|
)
|
Additions/Change in value of existing contracts
|
|
(79
|
)
|
|
(1
|
)
|
|
(80
|
)
|
|||
Settled contracts
|
|
72
|
|
|
4
|
|
|
76
|
|
|||
Outstanding net asset (liability) as of March 31, 2012
|
|
$
|
(300
|
)
|
|
$
|
(5
|
)
|
|
$
|
(305
|
)
|
|
|
|
|
|
|
|
||||||
Outstanding net asset (liability) as of January 1, 2011
|
|
$
|
(345
|
)
|
|
$
|
10
|
|
|
$
|
(335
|
)
|
Additions/Change in value of existing contracts
|
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|||
Settled contracts
|
|
72
|
|
|
(10
|
)
|
|
62
|
|
|||
Outstanding net asset (liability) as of March 31, 2011
|
|
$
|
(362
|
)
|
|
$
|
—
|
|
|
$
|
(362
|
)
|
(1)
|
Changes in the fair value of certain contracts are deferred for future recovery from (or credited to) customers.
|
•
|
generation supplied through a CBP commencing June 1, 2011;
|
•
|
a load cap of no less than
80%
, so that no single supplier is awarded more than
80%
of the tranches, which also applies to tranches assigned post-auction;
|
•
|
a
6%
generation discount to certain low income customers provided by the Ohio Companies through a bilateral wholesale contract with FES (FES is one of the wholesale suppliers to the Ohio Companies);
|
•
|
no increase in base distribution rates through May 31, 2014; and
|
•
|
a new distribution rider, Rider DCR, to recover a return of, and on, capital investments in the delivery system.
|
•
|
Freezing current base distribution rates through May 31, 2016;
|
•
|
Continuing to provide economic development and assistance to low-income customers for the two-year extension period at the levels established in the existing ESP;
|
•
|
Providing Percentage of Income Payment Plan customers with a 6 percent generation rate discount;
|
•
|
Continuing to provide capacity to shopping and non-shopping customers at a market-based price set through an auction process; and
|
•
|
Continuing Rider DCR that allows continued investment in the distribution system for the benefit of customers.
|
•
|
Securing generation supply over a longer period of time to mitigate any potential price spikes for FirstEnergy Ohio utility customers who do not switch to a competitive generation supplier; and
|
•
|
Extending the recovery period for costs associated with purchasing renewable energy credits mandated by SB 221 through the end of the new ESP period. This will reduce the monthly renewable energy charge for all FirstEnergy Ohio utility customers.
|
•
|
$40 million
annualized base rate increases effective June 29, 2010;
|
•
|
Deferral of February 2010 storm restoration expenses over a maximum
five
-year period;
|
•
|
Additional
$20 million
annualized base rate increase effective in January 2011;
|
•
|
Decrease of
$20 million
in ENEC rates effective January 2011, providing for deferral of related costs for later recovery in 2012; and
|
•
|
Moratorium on filing for further increases in base rates before December 1, 2011, except under specified circumstances.
|
Collateral Provisions
|
|
FES
|
|
AE Supply
|
|
Utilities
|
|
Total
|
||||||||
|
|
(In millions)
|
||||||||||||||
Credit rating downgrade to below investment grade
(1)
|
|
$
|
439
|
|
|
$
|
8
|
|
|
$
|
59
|
|
|
$
|
506
|
|
Material adverse event
(2)
|
|
91
|
|
|
60
|
|
|
14
|
|
|
165
|
|
||||
Total
|
|
$
|
530
|
|
|
$
|
68
|
|
|
$
|
73
|
|
|
$
|
671
|
|
(1)
|
Includes
$222 million
and
$40 million
that are also considered accelerations of payment or funding obligations for FES and the Utilities, respectively.
|
(2)
|
Includes
$42 million
that is also considered an acceleration of payment or funding obligation for FES.
|
For the Three Months Ended March 31, 2012
|
|
FES
|
|
FGCO
|
|
NGC
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUES
|
|
$
|
1,490
|
|
|
$
|
542
|
|
|
$
|
394
|
|
|
$
|
(910
|
)
|
|
$
|
1,516
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fuel
|
|
—
|
|
|
240
|
|
|
55
|
|
|
—
|
|
|
295
|
|
|||||
Purchased power from affiliates
|
|
965
|
|
|
—
|
|
|
62
|
|
|
(910
|
)
|
|
117
|
|
|||||
Purchased power from non-affiliates
|
|
487
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
487
|
|
|||||
Other operating expenses
|
|
76
|
|
|
92
|
|
|
116
|
|
|
11
|
|
|
295
|
|
|||||
Provision for depreciation
|
|
1
|
|
|
30
|
|
|
34
|
|
|
(2
|
)
|
|
63
|
|
|||||
General taxes
|
|
20
|
|
|
10
|
|
|
7
|
|
|
—
|
|
|
37
|
|
|||||
Total operating expenses
|
|
1,549
|
|
|
372
|
|
|
274
|
|
|
(901
|
)
|
|
1,294
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME (LOSS)
|
|
(59
|
)
|
|
170
|
|
|
120
|
|
|
(9
|
)
|
|
222
|
|
|||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment income
|
|
1
|
|
|
4
|
|
|
5
|
|
|
(4
|
)
|
|
6
|
|
|||||
Miscellaneous income, including net income from equity investees
|
|
258
|
|
|
—
|
|
|
—
|
|
|
(254
|
)
|
|
4
|
|
|||||
Interest expense — affiliates
|
|
(4
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
4
|
|
|
(2
|
)
|
|||||
Interest expense — other
|
|
(23
|
)
|
|
(26
|
)
|
|
(7
|
)
|
|
15
|
|
|
(41
|
)
|
|||||
Capitalized interest
|
|
—
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
9
|
|
|||||
Total other income (expense)
|
|
232
|
|
|
(22
|
)
|
|
5
|
|
|
(239
|
)
|
|
(24
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME BEFORE INCOME TAXES
|
|
173
|
|
|
148
|
|
|
125
|
|
|
(248
|
)
|
|
198
|
|
|||||
INCOME TAXES (BENEFITS)
|
|
51
|
|
|
(1
|
)
|
|
23
|
|
|
3
|
|
|
76
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
$
|
122
|
|
|
$
|
149
|
|
|
$
|
102
|
|
|
$
|
(251
|
)
|
|
$
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
$
|
122
|
|
|
$
|
149
|
|
|
$
|
102
|
|
|
$
|
(251
|
)
|
|
$
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pensions and OPEB prior service costs
|
|
(5
|
)
|
|
(4
|
)
|
|
—
|
|
|
4
|
|
|
(5
|
)
|
|||||
Amortized loss on derivative hedges
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Change in unrealized gain on available for sale securities
|
|
10
|
|
|
—
|
|
|
10
|
|
|
(10
|
)
|
|
10
|
|
|||||
Other comprehensive income (loss)
|
|
—
|
|
|
(4
|
)
|
|
10
|
|
|
(6
|
)
|
|
—
|
|
|||||
Income taxes (benefits) on other comprehensive income (loss)
|
|
2
|
|
|
(2
|
)
|
|
4
|
|
|
(2
|
)
|
|
2
|
|
|||||
Other comprehensive income (loss), net of tax
|
|
(2
|
)
|
|
(2
|
)
|
|
6
|
|
|
(4
|
)
|
|
(2
|
)
|
|||||
COMPREHENSIVE INCOME
|
|
$
|
120
|
|
|
$
|
147
|
|
|
$
|
108
|
|
|
$
|
(255
|
)
|
|
$
|
120
|
|
For the Three Months Ended March 31, 2011
|
|
FES
|
|
FGCO
|
|
NGC
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUES
|
|
$
|
1,366
|
|
|
$
|
743
|
|
|
$
|
469
|
|
|
$
|
(1,187
|
)
|
|
$
|
1,391
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fuel
|
|
1
|
|
|
294
|
|
|
48
|
|
|
—
|
|
|
343
|
|
|||||
Purchased power from affiliates
|
|
1,185
|
|
|
2
|
|
|
69
|
|
|
(1,187
|
)
|
|
69
|
|
|||||
Purchased power from non-affiliates
|
|
297
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
297
|
|
|||||
Other operating expenses
|
|
162
|
|
|
111
|
|
|
180
|
|
|
12
|
|
|
465
|
|
|||||
Provision for depreciation
|
|
1
|
|
|
32
|
|
|
38
|
|
|
(2
|
)
|
|
69
|
|
|||||
General taxes
|
|
10
|
|
|
11
|
|
|
8
|
|
|
—
|
|
|
29
|
|
|||||
Impairment of long-lived assets
|
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||
Total operating expenses
|
|
1,656
|
|
|
464
|
|
|
343
|
|
|
(1,177
|
)
|
|
1,286
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME (LOSS)
|
|
(290
|
)
|
|
279
|
|
|
126
|
|
|
(10
|
)
|
|
105
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment income
|
|
1
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
6
|
|
|||||
Miscellaneous income, including net income from equity investees
|
|
242
|
|
|
1
|
|
|
—
|
|
|
(239
|
)
|
|
4
|
|
|||||
Interest expense — affiliates
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Interest expense — other
|
|
(24
|
)
|
|
(28
|
)
|
|
(17
|
)
|
|
16
|
|
|
(53
|
)
|
|||||
Capitalized interest
|
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
10
|
|
|||||
Total other income (expense)
|
|
218
|
|
|
(22
|
)
|
|
(7
|
)
|
|
(223
|
)
|
|
(34
|
)
|
|||||
INCOME (LOSS) BEFORE INCOME TAXES
|
|
(72
|
)
|
|
257
|
|
|
119
|
|
|
(233
|
)
|
|
71
|
|
|||||
INCOME TAXES (BENEFITS)
|
|
(117
|
)
|
|
96
|
|
|
45
|
|
|
2
|
|
|
26
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
$
|
45
|
|
|
$
|
161
|
|
|
$
|
74
|
|
|
$
|
(235
|
)
|
|
$
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
$
|
45
|
|
|
$
|
161
|
|
|
$
|
74
|
|
|
$
|
(235
|
)
|
|
$
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pensions and OPEB prior service costs
|
|
(10
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
10
|
|
|
(10
|
)
|
|||||
Amortized loss on derivative hedges
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Change in unrealized gain on available for sale securities
|
|
8
|
|
|
—
|
|
|
8
|
|
|
(8
|
)
|
|
8
|
|
|||||
Other comprehensive income (loss)
|
|
(11
|
)
|
|
(4
|
)
|
|
2
|
|
|
2
|
|
|
(11
|
)
|
|||||
Income taxes (benefits) on other comprehensive income (loss)
|
|
(6
|
)
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
|
(6
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
|
(5
|
)
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
|
(5
|
)
|
|||||
COMPREHENSIVE INCOME
|
|
$
|
40
|
|
|
$
|
159
|
|
|
$
|
75
|
|
|
$
|
(234
|
)
|
|
$
|
40
|
|
As of March 31, 2012
|
|
FES
|
|
FGCO
|
|
NGC
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Receivables-
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Customers
|
|
395
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
395
|
|
|||||
Affiliated companies
|
|
472
|
|
|
439
|
|
|
241
|
|
|
(611
|
)
|
|
541
|
|
|||||
Other
|
|
50
|
|
|
19
|
|
|
53
|
|
|
—
|
|
|
122
|
|
|||||
Notes receivable from affiliated companies
|
|
81
|
|
|
1,369
|
|
|
44
|
|
|
(1,482
|
)
|
|
12
|
|
|||||
Materials and supplies, at average cost
|
|
62
|
|
|
283
|
|
|
206
|
|
|
—
|
|
|
551
|
|
|||||
Derivatives
|
|
322
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
322
|
|
|||||
Prepayments and other
|
|
7
|
|
|
17
|
|
|
1
|
|
|
(1
|
)
|
|
24
|
|
|||||
|
|
1,389
|
|
|
2,134
|
|
|
545
|
|
|
(2,094
|
)
|
|
1,974
|
|
|||||
PROPERTY, PLANT AND EQUIPMENT:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
In service
|
|
84
|
|
|
5,614
|
|
|
5,689
|
|
|
(385
|
)
|
|
11,002
|
|
|||||
Less — Accumulated provision for depreciation
|
|
29
|
|
|
1,843
|
|
|
2,524
|
|
|
(182
|
)
|
|
4,214
|
|
|||||
|
|
55
|
|
|
3,771
|
|
|
3,165
|
|
|
(203
|
)
|
|
6,788
|
|
|||||
Construction work in progress
|
|
31
|
|
|
171
|
|
|
971
|
|
|
—
|
|
|
1,173
|
|
|||||
|
|
86
|
|
|
3,942
|
|
|
4,136
|
|
|
(203
|
)
|
|
7,961
|
|
|||||
INVESTMENTS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nuclear plant decommissioning trusts
|
|
—
|
|
|
—
|
|
|
1,240
|
|
|
—
|
|
|
1,240
|
|
|||||
Investment in affiliated companies
|
|
5,956
|
|
|
—
|
|
|
—
|
|
|
(5,956
|
)
|
|
—
|
|
|||||
Other
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
|
|
5,956
|
|
|
7
|
|
|
1,240
|
|
|
(5,956
|
)
|
|
1,247
|
|
|||||
DEFERRED CHARGES AND OTHER ASSETS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accumulated deferred income tax benefits
|
|
—
|
|
|
274
|
|
|
—
|
|
|
(274
|
)
|
|
—
|
|
|||||
Customer intangibles
|
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|||||
Goodwill
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||
Property taxes
|
|
—
|
|
|
20
|
|
|
23
|
|
|
—
|
|
|
43
|
|
|||||
Unamortized sale and leaseback costs
|
|
—
|
|
|
21
|
|
|
—
|
|
|
99
|
|
|
120
|
|
|||||
Derivatives
|
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|||||
Other
|
|
123
|
|
|
111
|
|
|
2
|
|
|
(65
|
)
|
|
171
|
|
|||||
|
|
384
|
|
|
426
|
|
|
25
|
|
|
(240
|
)
|
|
595
|
|
|||||
|
|
$
|
7,815
|
|
|
$
|
6,509
|
|
|
$
|
5,946
|
|
|
$
|
(8,493
|
)
|
|
$
|
11,777
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currently payable long-term debt
|
|
$
|
1
|
|
|
$
|
411
|
|
|
$
|
514
|
|
|
$
|
(21
|
)
|
|
$
|
905
|
|
Short-term borrowings-
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Affiliated companies
|
|
1,413
|
|
|
69
|
|
|
—
|
|
|
(1,482
|
)
|
|
—
|
|
|||||
Accounts payable-
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Affiliated companies
|
|
663
|
|
|
175
|
|
|
256
|
|
|
(611
|
)
|
|
483
|
|
|||||
Other
|
|
69
|
|
|
121
|
|
|
—
|
|
|
—
|
|
|
190
|
|
|||||
Accrued Taxes
|
|
31
|
|
|
33
|
|
|
24
|
|
|
(13
|
)
|
|
75
|
|
|||||
Derivatives
|
|
281
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
281
|
|
|||||
Other
|
|
38
|
|
|
111
|
|
|
24
|
|
|
72
|
|
|
245
|
|
|||||
|
|
2,496
|
|
|
920
|
|
|
818
|
|
|
(2,055
|
)
|
|
2,179
|
|
|||||
CAPITALIZATION:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total equity
|
|
3,695
|
|
|
3,244
|
|
|
2,697
|
|
|
(5,941
|
)
|
|
3,695
|
|
|||||
Long-term debt and other long-term obligations
|
|
1,482
|
|
|
1,903
|
|
|
641
|
|
|
(1,229
|
)
|
|
2,797
|
|
|||||
|
|
5,177
|
|
|
5,147
|
|
|
3,338
|
|
|
(7,170
|
)
|
|
6,492
|
|
|||||
NONCURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred gain on sale and leaseback transaction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
917
|
|
|
917
|
|
|||||
Accumulated deferred income taxes
|
|
18
|
|
|
—
|
|
|
532
|
|
|
(185
|
)
|
|
365
|
|
|||||
Asset retirement obligations
|
|
—
|
|
|
28
|
|
|
891
|
|
|
—
|
|
|
919
|
|
|||||
Retirement benefits
|
|
31
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|||||
Lease market valuation liability
|
|
—
|
|
|
160
|
|
|
—
|
|
|
—
|
|
|
160
|
|
|||||
Other
|
|
93
|
|
|
134
|
|
|
367
|
|
|
—
|
|
|
594
|
|
|||||
|
|
142
|
|
|
442
|
|
|
1,790
|
|
|
732
|
|
|
3,106
|
|
|||||
|
|
$
|
7,815
|
|
|
$
|
6,509
|
|
|
$
|
5,946
|
|
|
$
|
(8,493
|
)
|
|
$
|
11,777
|
|
As of December 31, 2011
|
|
FES
|
|
FGCO
|
|
NGC
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Receivables-
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Customers
|
|
424
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
424
|
|
|||||
Affiliated companies
|
|
476
|
|
|
643
|
|
|
262
|
|
|
(781
|
)
|
|
600
|
|
|||||
Other
|
|
28
|
|
|
20
|
|
|
13
|
|
|
—
|
|
|
61
|
|
|||||
Notes receivable from affiliated companies
|
|
155
|
|
|
1,346
|
|
|
69
|
|
|
(1,187
|
)
|
|
383
|
|
|||||
Materials and supplies, at average cost
|
|
60
|
|
|
232
|
|
|
200
|
|
|
—
|
|
|
492
|
|
|||||
Derivatives
|
|
219
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
219
|
|
|||||
Prepayments and other
|
|
11
|
|
|
26
|
|
|
1
|
|
|
—
|
|
|
38
|
|
|||||
|
|
1,373
|
|
|
2,274
|
|
|
545
|
|
|
(1,968
|
)
|
|
2,224
|
|
|||||
PROPERTY, PLANT AND EQUIPMENT:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
In service
|
|
84
|
|
|
5,573
|
|
|
5,711
|
|
|
(385
|
)
|
|
10,983
|
|
|||||
Less — Accumulated provision for depreciation
|
|
28
|
|
|
1,813
|
|
|
2,449
|
|
|
(180
|
)
|
|
4,110
|
|
|||||
|
|
56
|
|
|
3,760
|
|
|
3,262
|
|
|
(205
|
)
|
|
6,873
|
|
|||||
Construction work in progress
|
|
29
|
|
|
195
|
|
|
790
|
|
|
—
|
|
|
1,014
|
|
|||||
|
|
85
|
|
|
3,955
|
|
|
4,052
|
|
|
(205
|
)
|
|
7,887
|
|
|||||
INVESTMENTS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nuclear plant decommissioning trusts
|
|
—
|
|
|
—
|
|
|
1,223
|
|
|
—
|
|
|
1,223
|
|
|||||
Investment in affiliated companies
|
|
5,716
|
|
|
—
|
|
|
—
|
|
|
(5,716
|
)
|
|
—
|
|
|||||
Other
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
|
|
5,716
|
|
|
7
|
|
|
1,223
|
|
|
(5,716
|
)
|
|
1,230
|
|
|||||
DEFERRED CHARGES AND OTHER ASSETS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accumulated deferred income tax benefits
|
|
10
|
|
|
307
|
|
|
—
|
|
|
(317
|
)
|
|
—
|
|
|||||
Customer intangibles
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|||||
Goodwill
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||
Property taxes
|
|
—
|
|
|
20
|
|
|
23
|
|
|
—
|
|
|
43
|
|
|||||
Unamortized sale and leaseback costs
|
|
—
|
|
|
5
|
|
|
—
|
|
|
75
|
|
|
80
|
|
|||||
Derivatives
|
|
79
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|||||
Other
|
|
89
|
|
|
99
|
|
|
3
|
|
|
(62
|
)
|
|
129
|
|
|||||
|
|
325
|
|
|
431
|
|
|
26
|
|
|
(304
|
)
|
|
478
|
|
|||||
|
|
$
|
7,499
|
|
|
$
|
6,667
|
|
|
$
|
5,846
|
|
|
$
|
(8,193
|
)
|
|
$
|
11,819
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currently payable long-term debt
|
|
$
|
1
|
|
|
$
|
411
|
|
|
$
|
513
|
|
|
$
|
(20
|
)
|
|
$
|
905
|
|
Short-term borrowings-
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Affiliated companies
|
|
1,065
|
|
|
89
|
|
|
32
|
|
|
(1,186
|
)
|
|
—
|
|
|||||
Accounts payable-
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Affiliated companies
|
|
777
|
|
|
228
|
|
|
211
|
|
|
(780
|
)
|
|
436
|
|
|||||
Other
|
|
99
|
|
|
121
|
|
|
—
|
|
|
—
|
|
|
220
|
|
|||||
Accrued Taxes
|
|
84
|
|
|
42
|
|
|
110
|
|
|
(9
|
)
|
|
227
|
|
|||||
Derivatives
|
|
189
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|||||
Other
|
|
62
|
|
|
141
|
|
|
16
|
|
|
42
|
|
|
261
|
|
|||||
|
|
2,277
|
|
|
1,032
|
|
|
882
|
|
|
(1,953
|
)
|
|
2,238
|
|
|||||
CAPITALIZATION:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stockholder’s equity
|
|
3,593
|
|
|
3,097
|
|
|
2,587
|
|
|
(5,700
|
)
|
|
3,577
|
|
|||||
Long-term debt and other long-term obligations
|
|
1,483
|
|
|
1,905
|
|
|
641
|
|
|
(1,230
|
)
|
|
2,799
|
|
|||||
|
|
5,076
|
|
|
5,002
|
|
|
3,228
|
|
|
(6,930
|
)
|
|
6,376
|
|
|||||
NONCURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred gain on sale and leaseback transaction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
925
|
|
|
925
|
|
|||||
Accumulated deferred income taxes
|
|
12
|
|
|
—
|
|
|
510
|
|
|
(236
|
)
|
|
286
|
|
|||||
Asset retirement obligations
|
|
—
|
|
|
28
|
|
|
876
|
|
|
—
|
|
|
904
|
|
|||||
Retirement benefits
|
|
56
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|
356
|
|
|||||
Lease market valuation liability
|
|
—
|
|
|
171
|
|
|
—
|
|
|
—
|
|
|
171
|
|
|||||
Other
|
|
78
|
|
|
134
|
|
|
350
|
|
|
1
|
|
|
563
|
|
|||||
|
|
146
|
|
|
633
|
|
|
1,736
|
|
|
690
|
|
|
3,205
|
|
|||||
|
|
$
|
7,499
|
|
|
$
|
6,667
|
|
|
$
|
5,846
|
|
|
$
|
(8,193
|
)
|
|
$
|
11,819
|
|
For the Three Months Ended March 31, 2012
|
|
FES
|
|
FGCO
|
|
NGC
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES
|
|
$
|
(419
|
)
|
|
$
|
66
|
|
|
$
|
175
|
|
|
$
|
—
|
|
|
$
|
(178
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
New Financing-
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings, net
|
|
347
|
|
|
—
|
|
|
—
|
|
|
(347
|
)
|
|
—
|
|
|||||
Redemptions and Repayments-
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings, net
|
|
—
|
|
|
(20
|
)
|
|
(32
|
)
|
|
52
|
|
|
—
|
|
|||||
Other
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Net cash provided from (used for) financing activities
|
|
347
|
|
|
(22
|
)
|
|
(33
|
)
|
|
(295
|
)
|
|
(3
|
)
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Property additions
|
|
(2
|
)
|
|
(18
|
)
|
|
(161
|
)
|
|
—
|
|
|
(181
|
)
|
|||||
Sales of investment securities held in trusts
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
83
|
|
|||||
Purchases of investment securities held in trusts
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
|
(90
|
)
|
|||||
Loans to affiliated companies, net
|
|
74
|
|
|
(23
|
)
|
|
25
|
|
|
295
|
|
|
371
|
|
|||||
Other
|
|
—
|
|
|
(3
|
)
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net cash provided from (used for) investing activities
|
|
72
|
|
|
(44
|
)
|
|
(142
|
)
|
|
295
|
|
|
181
|
|
|||||
Net change in cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Three Months Ended
|
|
Regulated Distribution
|
|
Competitive Energy Services
|
|
Regulated Independent Transmission
|
|
Other/Corporate
|
|
Reconciling Adjustments
|
|
Consolidated
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External revenues
|
|
$
|
2,383
|
|
|
$
|
1,607
|
|
|
$
|
109
|
|
|
$
|
(24
|
)
|
|
$
|
1
|
|
|
$
|
4,076
|
|
Internal revenues
|
|
—
|
|
|
268
|
|
|
—
|
|
|
—
|
|
|
(266
|
)
|
|
2
|
|
||||||
Total revenues
|
|
2,383
|
|
|
1,875
|
|
|
109
|
|
|
(24
|
)
|
|
(265
|
)
|
|
4,078
|
|
||||||
Depreciation and amortization
|
|
234
|
|
|
100
|
|
|
18
|
|
|
8
|
|
|
—
|
|
|
360
|
|
||||||
Investment income
|
|
24
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
11
|
|
||||||
Net interest charges
|
|
142
|
|
|
54
|
|
|
12
|
|
|
21
|
|
|
—
|
|
|
229
|
|
||||||
Income taxes
|
|
108
|
|
|
83
|
|
|
20
|
|
|
(16
|
)
|
|
27
|
|
|
222
|
|
||||||
Net income
|
|
183
|
|
|
141
|
|
|
34
|
|
|
(28
|
)
|
|
(24
|
)
|
|
306
|
|
||||||
Total assets
|
|
27,551
|
|
|
17,187
|
|
|
2,452
|
|
|
501
|
|
|
—
|
|
|
47,691
|
|
||||||
Total goodwill
|
|
5,551
|
|
|
893
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,444
|
|
||||||
Property additions
|
|
301
|
|
|
243
|
|
|
28
|
|
|
17
|
|
|
—
|
|
|
589
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External revenues
|
|
$
|
2,268
|
|
|
$
|
1,254
|
|
|
$
|
67
|
|
|
$
|
(23
|
)
|
|
$
|
(22
|
)
|
|
$
|
3,544
|
|
Internal revenues
|
|
—
|
|
|
343
|
|
|
—
|
|
|
—
|
|
|
(311
|
)
|
|
32
|
|
||||||
Total revenues
|
|
2,268
|
|
|
1,597
|
|
|
67
|
|
|
(23
|
)
|
|
(333
|
)
|
|
3,576
|
|
||||||
Depreciation and amortization
|
|
250
|
|
|
88
|
|
|
13
|
|
|
6
|
|
|
—
|
|
|
357
|
|
||||||
Investment income
|
|
25
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
21
|
|
||||||
Net interest charges
|
|
131
|
|
|
68
|
|
|
9
|
|
|
19
|
|
|
(14
|
)
|
|
213
|
|
||||||
Income taxes
|
|
64
|
|
|
9
|
|
|
7
|
|
|
—
|
|
|
31
|
|
|
111
|
|
||||||
Net income
|
|
109
|
|
|
15
|
|
|
12
|
|
|
(55
|
)
|
|
(34
|
)
|
|
47
|
|
||||||
Total assets
|
|
27,766
|
|
|
17,399
|
|
|
2,486
|
|
|
914
|
|
|
—
|
|
|
48,565
|
|
||||||
Total goodwill
|
|
5,551
|
|
|
956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,507
|
|
||||||
Property additions
|
|
177
|
|
|
214
|
|
|
27
|
|
|
31
|
|
|
—
|
|
|
449
|
|
Change In Basic Earnings Per Share From Prior Year
|
|
Three Months Ended March 31
|
||
Basic Earnings Per Share - First Quarter 2011
|
|
$
|
0.15
|
|
Segment operating results
(1)
-
|
|
|
||
Regulated Distribution
|
|
(0.03
|
)
|
|
Competitive Energy Services
|
|
0.04
|
|
|
Regulated Independent Transmission
|
|
0.01
|
|
|
Regulatory charges
|
|
(0.01
|
)
|
|
Income Tax Charge – retiree prescription drug subsidy
|
|
(0.02
|
)
|
|
Merger-related costs
|
|
0.37
|
|
|
Impact of non-core asset sales/impairments
|
|
0.03
|
|
|
Mark-to-market adjustments
|
|
0.08
|
|
|
Merger accounting — commodity contracts
|
|
(0.01
|
)
|
|
Plant closing costs
|
|
(0.05
|
)
|
|
Net merger accretion
(1)(2)
|
|
0.17
|
|
|
Interest expense, net of amounts capitalized
|
|
0.02
|
|
|
Investment Income
|
|
(0.01
|
)
|
|
Other
|
|
(0.01
|
)
|
|
Basic Earnings Per Share - First Quarter 2012
|
|
$
|
0.73
|
|
(1)
|
Excludes amounts that are shown separately
|
(2)
|
Includes dilutive effect of shares issued in connection with the Allegheny merger, and 3 months of Allegheny results in the first quarter of 2012 compared to 1 month during the same period of 2011.
|
•
|
Freezing current base distribution rates through May 31, 2016;
|
•
|
continuing to provide economic development and assistance to low-income customers for the two-year extension period at the levels established in the existing ESP;
|
•
|
providing Percentage of Income Payment Plan customers with a 6 percent generation rate discount;
|
•
|
continuing to provide capacity to shopping and non-shopping customers at a market-based price set through an auction process; and
|
•
|
continuing Rider DCR that allows continued investment in the distribution system for the benefit of customers.
|
•
|
Securing generation supply over a longer period to mitigate any potential price spikes for FirstEnergy Ohio utility customers who do not switch to a competitive generation supplier; and
|
•
|
extending the recovery period for costs associated with purchasing renewable energy credits mandated by SB221 through the end of the new ESP period. This will reduce the monthly renewable energy charge for all of the FirstEnergy Ohio utility customers.
|
|
Three Months
Ended March 31 |
||||||||||
|
2012
|
|
2011
|
|
Increase
(Decrease)
|
||||||
|
(In millions, except per share data)
|
||||||||||
Earnings (Loss) By Business Segment:
|
|
|
|
|
|
||||||
Regulated Distribution
|
$
|
183
|
|
|
$
|
109
|
|
|
$
|
74
|
|
Competitive Energy Services
|
141
|
|
|
15
|
|
|
126
|
|
|||
Regulated Independent Transmission
|
34
|
|
|
12
|
|
|
22
|
|
|||
Other and reconciling adjustments*
|
(52
|
)
|
|
(84
|
)
|
|
32
|
|
|||
Earnings available to FirstEnergy Corp.
|
$
|
306
|
|
|
$
|
52
|
|
|
$
|
254
|
|
|
|
|
|
|
|
||||||
Basic Earnings Per Share
|
$
|
0.73
|
|
|
$
|
0.15
|
|
|
$
|
0.58
|
|
Diluted Earnings Per Share
|
$
|
0.73
|
|
|
$
|
0.15
|
|
|
$
|
0.58
|
|
*
|
Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses, noncontrolling interests and the elimination of intersegment transactions.
|
First Quarter 2012 Financial Results
|
|
Regulated Distribution
|
|
Competitive
Energy Services |
|
Regulated
Independent Transmission |
|
Other and
Reconciling Adjustments |
|
FirstEnergy Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electric
|
|
$
|
2,270
|
|
|
$
|
1,531
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,801
|
|
Other
|
|
113
|
|
|
76
|
|
|
109
|
|
|
(23
|
)
|
|
275
|
|
|||||
Internal
|
|
—
|
|
|
268
|
|
|
—
|
|
|
(266
|
)
|
|
2
|
|
|||||
Total Revenues
|
|
2,383
|
|
|
1,875
|
|
|
109
|
|
|
(289
|
)
|
|
4,078
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fuel
|
|
39
|
|
|
502
|
|
|
—
|
|
|
—
|
|
|
541
|
|
|||||
Purchased power
|
|
1,082
|
|
|
531
|
|
|
—
|
|
|
(266
|
)
|
|
1,347
|
|
|||||
Other operating expenses
|
|
427
|
|
|
409
|
|
|
15
|
|
|
(39
|
)
|
|
812
|
|
|||||
Provision for depreciation
|
|
159
|
|
|
100
|
|
|
18
|
|
|
8
|
|
|
285
|
|
|||||
Amortization of regulatory assets, net
|
|
75
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|||||
General taxes
|
|
192
|
|
|
61
|
|
|
10
|
|
|
9
|
|
|
272
|
|
|||||
Total Operating Expenses
|
|
1,974
|
|
|
1,603
|
|
|
43
|
|
|
(288
|
)
|
|
3,332
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income
|
|
409
|
|
|
272
|
|
|
66
|
|
|
(1
|
)
|
|
746
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment income
|
|
24
|
|
|
6
|
|
|
—
|
|
|
(19
|
)
|
|
11
|
|
|||||
Interest expense
|
|
(145
|
)
|
|
(65
|
)
|
|
(12
|
)
|
|
(24
|
)
|
|
(246
|
)
|
|||||
Capitalized interest
|
|
3
|
|
|
11
|
|
|
—
|
|
|
3
|
|
|
17
|
|
|||||
Total Other Expense
|
|
(118
|
)
|
|
(48
|
)
|
|
(12
|
)
|
|
(40
|
)
|
|
(218
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income Before Income Taxes
|
|
291
|
|
|
224
|
|
|
54
|
|
|
(41
|
)
|
|
528
|
|
|||||
Income taxes
|
|
108
|
|
|
83
|
|
|
20
|
|
|
11
|
|
|
222
|
|
|||||
Net Income
|
|
183
|
|
|
141
|
|
|
34
|
|
|
(52
|
)
|
|
306
|
|
|||||
Loss attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Earnings Available to FirstEnergy Corp.
|
|
$
|
183
|
|
|
$
|
141
|
|
|
$
|
34
|
|
|
$
|
(52
|
)
|
|
$
|
306
|
|
First Quarter 2011 Financial Results
|
|
Regulated Distribution
|
|
Competitive
Energy Services |
|
Regulated
Independent Transmission |
|
Other and
Reconciling Adjustments |
|
FirstEnergy Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electric
|
|
$
|
2,175
|
|
|
$
|
1,162
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,337
|
|
Other
|
|
93
|
|
|
92
|
|
|
67
|
|
|
(45
|
)
|
|
207
|
|
|||||
Internal
|
|
—
|
|
|
343
|
|
|
—
|
|
|
(311
|
)
|
|
32
|
|
|||||
Total Revenues
|
|
2,268
|
|
|
1,597
|
|
|
67
|
|
|
(356
|
)
|
|
3,576
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fuel
|
|
24
|
|
|
429
|
|
|
—
|
|
|
—
|
|
|
453
|
|
|||||
Purchased power
|
|
1,179
|
|
|
318
|
|
|
—
|
|
|
(311
|
)
|
|
1,186
|
|
|||||
Other operating expenses
|
|
360
|
|
|
632
|
|
|
18
|
|
|
(17
|
)
|
|
993
|
|
|||||
Provision for depreciation
|
|
121
|
|
|
88
|
|
|
10
|
|
|
6
|
|
|
225
|
|
|||||
Amortization of regulatory assets, net
|
|
129
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
132
|
|
|||||
General taxes
|
|
176
|
|
|
44
|
|
|
8
|
|
|
9
|
|
|
237
|
|
|||||
Total Operating Expenses
|
|
1,989
|
|
|
1,511
|
|
|
39
|
|
|
(313
|
)
|
|
3,226
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income
|
|
279
|
|
|
86
|
|
|
28
|
|
|
(43
|
)
|
|
350
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment income
|
|
25
|
|
|
6
|
|
|
—
|
|
|
(10
|
)
|
|
21
|
|
|||||
Interest expense
|
|
(132
|
)
|
|
(78
|
)
|
|
(9
|
)
|
|
(12
|
)
|
|
(231
|
)
|
|||||
Capitalized interest
|
|
1
|
|
|
10
|
|
|
—
|
|
|
7
|
|
|
18
|
|
|||||
Total Other Expense
|
|
(106
|
)
|
|
(62
|
)
|
|
(9
|
)
|
|
(15
|
)
|
|
(192
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income Before Income Taxes
|
|
173
|
|
|
24
|
|
|
19
|
|
|
(58
|
)
|
|
158
|
|
|||||
Income taxes
|
|
64
|
|
|
9
|
|
|
7
|
|
|
31
|
|
|
111
|
|
|||||
Net Income
|
|
109
|
|
|
15
|
|
|
12
|
|
|
(89
|
)
|
|
47
|
|
|||||
Loss attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|||||
Earnings Available to FirstEnergy Corp.
|
|
$
|
109
|
|
|
$
|
15
|
|
|
$
|
12
|
|
|
$
|
(84
|
)
|
|
$
|
52
|
|
Changes Between First Quarter 2012 and First Quarter 2011 Financial Results
Increase (Decrease)
|
|
Regulated Distribution
|
|
Competitive
Energy Services |
|
Regulated
Independent Transmission |
|
Other and
Reconciling Adjustments |
|
FirstEnergy Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Electric
|
|
$
|
95
|
|
|
$
|
369
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
464
|
|
Other
|
|
20
|
|
|
(16
|
)
|
|
42
|
|
|
22
|
|
|
68
|
|
|||||
Internal
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
45
|
|
|
(30
|
)
|
|||||
Total Revenues
|
|
115
|
|
|
278
|
|
|
42
|
|
|
67
|
|
|
502
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fuel
|
|
15
|
|
|
73
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|||||
Purchased power
|
|
(97
|
)
|
|
213
|
|
|
—
|
|
|
45
|
|
|
161
|
|
|||||
Other operating expenses
|
|
67
|
|
|
(223
|
)
|
|
(3
|
)
|
|
(22
|
)
|
|
(181
|
)
|
|||||
Provision for depreciation
|
|
38
|
|
|
12
|
|
|
8
|
|
|
2
|
|
|
60
|
|
|||||
Amortization of regulatory assets, net
|
|
(54
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(57
|
)
|
|||||
General taxes
|
|
16
|
|
|
17
|
|
|
2
|
|
|
—
|
|
|
35
|
|
|||||
Total Operating Expenses
|
|
(15
|
)
|
|
92
|
|
|
4
|
|
|
25
|
|
|
106
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income
|
|
130
|
|
|
186
|
|
|
38
|
|
|
42
|
|
|
396
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment income
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(10
|
)
|
|||||
Interest expense
|
|
(13
|
)
|
|
13
|
|
|
(3
|
)
|
|
(12
|
)
|
|
(15
|
)
|
|||||
Capitalized interest
|
|
2
|
|
|
1
|
|
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
|||||
Total Other Expense
|
|
(12
|
)
|
|
14
|
|
|
(3
|
)
|
|
(25
|
)
|
|
(26
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income Before Income Taxes
|
|
118
|
|
|
200
|
|
|
35
|
|
|
17
|
|
|
370
|
|
|||||
Income taxes
|
|
44
|
|
|
74
|
|
|
13
|
|
|
(20
|
)
|
|
111
|
|
|||||
Net Income
|
|
74
|
|
|
126
|
|
|
22
|
|
|
37
|
|
|
259
|
|
|||||
Loss attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|||||
Earnings Available to FirstEnergy Corp.
|
|
$
|
74
|
|
|
$
|
126
|
|
|
$
|
22
|
|
|
$
|
32
|
|
|
$
|
254
|
|
|
|
Three Months
Ended March 31 |
|
Increase
|
||||||||
Revenues by Type of Service
|
|
2012
|
|
2011
|
|
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Pre-merger companies:
|
|
|
|
|
|
|
||||||
Distribution services
|
|
$
|
766
|
|
|
$
|
909
|
|
|
$
|
(143
|
)
|
Generation sales:
|
|
|
|
|
|
|
||||||
Retail
|
|
696
|
|
|
873
|
|
|
(177
|
)
|
|||
Wholesale
|
|
49
|
|
|
116
|
|
|
(67
|
)
|
|||
Total generation sales
|
|
745
|
|
|
989
|
|
|
(244
|
)
|
|||
Transmission
|
|
84
|
|
|
37
|
|
|
47
|
|
|||
Other
|
|
42
|
|
|
58
|
|
|
(16
|
)
|
|||
Total pre-merger companies
|
|
1,637
|
|
|
1,993
|
|
|
(356
|
)
|
|||
Allegheny companies
(1)
|
|
746
|
|
|
275
|
|
|
471
|
|
|||
Total Revenues
|
|
$
|
2,383
|
|
|
$
|
2,268
|
|
|
$
|
115
|
|
(1)
|
Allegheny results include 3 months in 2012 and 1 month in 2011.
|
|
|
Three Months
Ended March 31 |
|
Increase
|
|||||
Electric Distribution MWH Deliveries
|
|
2012
|
|
2011
|
|
(Decrease)
|
|||
|
|
(in thousands)
|
|
|
|||||
Pre-merger companies:
|
|
|
|
|
|
|
|||
Residential
|
|
9,794
|
|
|
10,638
|
|
|
(7.9
|
)%
|
Commercial
|
|
7,801
|
|
|
7,929
|
|
|
(1.6
|
)%
|
Industrial
|
|
8,820
|
|
|
8,841
|
|
|
(0.3
|
)%
|
Other
|
|
123
|
|
|
130
|
|
|
(4.9
|
)%
|
Total pre-merger companies
|
|
26,538
|
|
|
27,538
|
|
|
(3.6
|
)%
|
Allegheny companies
(1)
|
|
10,659
|
|
|
3,540
|
|
|
201.1
|
%
|
Total Electric Distribution MWH Deliveries
|
|
37,197
|
|
|
31,078
|
|
|
19.7
|
%
|
(1)
|
Allegheny results include 3 months in 2012 and 1 month in 2011.
|
Source of Change in Generation Revenues
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Retail:
|
|
|
||
Effect of decrease in sales volumes
|
|
$
|
(206
|
)
|
Change in prices
|
|
29
|
|
|
|
|
(177
|
)
|
|
Wholesale:
|
|
|
||
Effect of decrease in sales volumes
|
|
(46
|
)
|
|
Change in prices
|
|
(21
|
)
|
|
|
|
(67
|
)
|
|
Net Decrease in Generation Revenues
|
|
$
|
(244
|
)
|
•
|
Purchased power costs, excluding the Allegheny companies, were
$338 million
lower
in the
first
quarter of
2012
due primarily to a
decrease
in volumes required resulting from warmer than normal weather. Additionally, increased customer shopping decreased purchased power requirements. The Allegheny companies added
$241 million
in purchased power costs in the
first
quarter of
2012
compared to the same period of
2011
.
|
Source of Change in Purchased Power
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Pre-merger companies:
|
|
|
||
Purchases from non-affiliates:
|
|
|
||
Change due to decreased unit costs
|
|
$
|
(43
|
)
|
Change due to decreased volumes
|
|
(182
|
)
|
|
|
|
(225
|
)
|
|
Purchases from FES:
|
|
|
||
Change due to decreased unit costs
|
|
(15
|
)
|
|
Change due to decreased volumes
|
|
(93
|
)
|
|
|
|
(108
|
)
|
|
Increase in costs deferred
|
|
(5
|
)
|
|
Total pre-merger companies
|
|
(338
|
)
|
|
Purchases by Allegheny companies
|
|
241
|
|
|
Net Decrease in Purchased Power Costs
|
|
$
|
(97
|
)
|
•
|
Transmission expenses increased $57 million during the first quarter of 2012 compared to the same period of 2011. The increase is primarily due to network integration transmission service expenses that, prior to June 2011, were incurred by
|
•
|
Amortization expense decreased $65 million due to the following:
|
◦
|
The suspension of the rider recovering deferred distribution costs in September 2011,
|
◦
|
The completion of JCP&L's NUG deferred cost recovery,
|
◦
|
Partially offset by the recovery in Ohio of residential generation credits for electric heating discounts, which began in September 2011.
|
•
|
Energy Efficiency program costs, which are recovered through rates, increased by $27 million.
|
•
|
The absence of a provision for excess and obsolete material of $13 million that was recognized in the first quarter of 2011 relating to revised inventory practices adopted in conjunction with the Allegheny merger.
|
•
|
Merger-related costs decreased $55 million in the
first
quarter of
2012
compared to the same period of
2011
.
|
•
|
The inclusion of Allegheny resulted in the following net increase in operating expenses in the first quarter of 2012:
|
|
|
Three Months
Ended March 31 |
|
Increase
|
||||||||
Operating Expenses - Allegheny
(1)
|
|
2012
|
|
2011
|
|
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Purchased power
|
|
$
|
383
|
|
|
$
|
143
|
|
|
$
|
241
|
|
Fuel
|
|
39
|
|
|
24
|
|
|
15
|
|
|||
Transmission
|
|
26
|
|
|
12
|
|
|
14
|
|
|||
Amortization of regulatory assets, net
|
|
—
|
|
|
(11
|
)
|
|
11
|
|
|||
Other operating expenses
|
|
80
|
|
|
32
|
|
|
48
|
|
|||
General taxes
|
|
34
|
|
|
12
|
|
|
22
|
|
|||
Depreciation expense
|
|
49
|
|
|
16
|
|
|
33
|
|
|||
Total Operating Expenses
|
|
$
|
611
|
|
|
$
|
228
|
|
|
$
|
384
|
|
(1)
|
Allegheny results include 3 months in 2012 and 1 month in 2011.
|
Revenues by
|
|
Three Months
Ended March 31 |
|
Increase
|
||||||||
Transmission Asset Owner
|
|
2012
|
|
2011
|
|
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
ATSI
|
|
$
|
53
|
|
|
$
|
52
|
|
|
$
|
1
|
|
TrAIL
(1)
|
|
51
|
|
|
14
|
|
|
37
|
|
|||
PATH
(1)
|
|
5
|
|
|
1
|
|
|
4
|
|
|||
Total Revenues
|
|
$
|
109
|
|
|
$
|
67
|
|
|
$
|
42
|
|
(1)
|
Allegheny results include 3 months in 2012 and 1 month in 2011.
|
Source of Change in Direct and Governmental Aggregation
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Direct Sales:
|
|
|
||
Effect of increase in sales volumes
|
|
$
|
159
|
|
Change in prices
|
|
(43
|
)
|
|
|
|
116
|
|
|
Governmental Aggregation:
|
|
|
||
Effect of increase in sales volumes
|
|
55
|
|
|
Change in prices
|
|
(4
|
)
|
|
|
|
51
|
|
|
Net Increase in Direct and Governmental Aggregation Revenues
|
|
$
|
167
|
|
Source of Change in POLR and Structured Revenues
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
POLR and Structured:
|
|
|
||
Effect of decrease in sales volumes
|
|
$
|
(116
|
)
|
Change in prices
|
|
(27
|
)
|
|
|
|
$
|
(143
|
)
|
Source of Change in Wholesale Revenues
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Wholesale:
|
|
|
||
Effect of decrease in sales volumes
|
|
$
|
(28
|
)
|
Change in prices
|
|
(1
|
)
|
|
Gain on settled contracts
|
|
55
|
|
|
Capacity revenue
|
|
43
|
|
|
|
|
$
|
69
|
|
•
|
Purchased power costs increased $191 million due to higher volumes ($103 million), loss on settled contracts ($106 million) and capacity expense ($54 million), partially offset by lower unit prices ($72 million). The increase in purchased power volumes primarily relates to the overall increase in sales volumes and economic purchases.
|
•
|
Fuel costs decreased $33 million primarily due to lower volumes consumed ($83 million), partially offset by higher unit prices ($50 million). Volumes decreased due to lower fossil generation, partially offset by higher generation from the nuclear units.
|
•
|
Fossil operating costs decreased by $7 million due primarily to lower contractor and materials and equipment costs resulting from a decrease in planned and unplanned outages, partially offset by higher labor costs.
|
•
|
Nuclear operating costs decreased by $28 million due primarily to lower labor, contractor and materials and equipment costs, as there were no refueling outages this quarter while the first quarter of the previous year included the Beaver Valley Unit 2 refueling outage.
|
•
|
Transmission expenses decreased $62 million due primarily to decreases of $68 million from lower congestion, network and line loss costs in MISO. These decreases were partially offset by increases in PJM of $6 million from higher network costs, partially offset by lower congestion and line loss expenses.
|
•
|
General taxes increased by $6 million due to an increase in revenue-related taxes.
|
•
|
Depreciation expense decreased $11 million primarily due to credits resulting from a settlement with the DOE regarding the storage of spent nuclear fuel.
|
•
|
Other operating expenses decreased by $110 million primarily due to favorable mark-to-market adjustments on commodity contract positions ($28 million) and reduced corporate-related costs associated with the merger ($14 million). In addition, 2011 expenses included a $54 million provision for excess and obsolete material relating to revised inventory practices adopted in connection with the Allegheny merger and a $13 million impairment charge related to non-core assets.
|
Regulatory Assets by Source
|
|
March 31,
2012 |
|
December 31,
2011 |
|
Increase
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Regulatory transition costs
|
|
$
|
642
|
|
|
$
|
608
|
|
|
$
|
34
|
|
Customer receivables for future income taxes
|
|
479
|
|
|
508
|
|
|
(29
|
)
|
|||
Nuclear decommissioning and spent fuel disposal costs
|
|
(215
|
)
|
|
(210
|
)
|
|
(5
|
)
|
|||
Asset removal costs
|
|
(251
|
)
|
|
(240
|
)
|
|
(11
|
)
|
|||
Deferred transmission costs
|
|
376
|
|
|
340
|
|
|
36
|
|
|||
Deferred generation costs
|
|
329
|
|
|
382
|
|
|
(53
|
)
|
|||
Deferred distribution costs
|
|
258
|
|
|
267
|
|
|
(9
|
)
|
|||
Other
|
|
388
|
|
|
375
|
|
|
13
|
|
|||
Total
|
|
$
|
2,006
|
|
|
$
|
2,030
|
|
|
$
|
(24
|
)
|
Currently Payable Long-term Debt
|
(In millions)
|
||
PCRBs supported by bank LOCs
(1)
|
$
|
632
|
|
Unsecured notes
|
733
|
|
|
Unsecured PCRBs
(1)
|
270
|
|
|
Collateralized lease obligation bonds
|
67
|
|
|
Sinking fund requirements
|
53
|
|
|
Other notes
|
17
|
|
|
|
$
|
1,772
|
|
(1)
|
These PCRBs are classified as currently payable long-term debt because the applicable interest rate mode permits individual debt holders to put the respective debt back to the issuer prior to maturity.
|
Company
|
|
Type
|
|
Maturity
|
|
Commitment
|
|
Available Liquidity
|
||||
|
|
|
|
|
|
(In millions)
|
||||||
FirstEnergy
(1)
|
|
Revolving
|
|
June 2016
|
|
$
|
2,000
|
|
|
$
|
895
|
|
FES / AE Supply
|
|
Revolving
|
|
June 2016
|
|
2,500
|
|
|
2,498
|
|
||
TrAIL
|
|
Revolving
|
|
Jan. 2013
|
|
450
|
|
|
450
|
|
||
AGC
|
|
Revolving
|
|
Dec. 2013
|
|
50
|
|
|
—
|
|
||
|
|
|
|
Subtotal
|
|
$
|
5,000
|
|
|
$
|
3,843
|
|
|
|
|
|
Cash
|
|
—
|
|
|
54
|
|
||
|
|
|
|
Total
|
|
$
|
5,000
|
|
|
$
|
3,897
|
|
(1)
|
FirstEnergy Corp. and the Utilities.
|
Borrower
|
|
FirstEnergy Revolving
Credit Facility
Sub-Limit
|
|
FES/AE Supply Revolving
Credit Facility
Sub-Limit
|
|
Regulatory and
Other Short-Term Debt Limitations
|
|
|
Debt to Capitalization
|
|||||||||
|
|
(In millions)
|
|
|
|
|||||||||||||
FE
|
|
|
$
|
2,000
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
(1)
|
|
58.8%
|
FES
|
|
|
—
|
|
|
|
1,500
|
|
|
|
—
|
|
(2)
|
|
50.6%
|
|||
AE Supply
|
|
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
(2)
|
|
43.6%
|
|||
OE
|
|
|
500
|
|
|
|
—
|
|
|
|
500
|
|
|
|
62.4%
|
|||
CEI
|
|
|
500
|
|
|
|
—
|
|
|
|
500
|
|
|
|
61.0%
|
|||
TE
|
|
|
500
|
|
|
|
—
|
|
|
|
500
|
|
|
|
63.1%
|
|||
JCP&L
|
|
|
425
|
|
|
|
—
|
|
|
|
411
|
|
(3)
|
|
43.9%
|
|||
ME
|
|
|
300
|
|
|
|
—
|
|
|
|
300
|
|
(3)
|
|
55.8%
|
|||
PN
|
|
|
300
|
|
|
|
—
|
|
|
|
300
|
|
(3)
|
|
60.5%
|
|||
WP
|
|
|
200
|
|
|
|
—
|
|
|
|
200
|
|
(3)
|
|
53.2%
|
|||
MP
|
|
|
150
|
|
|
|
—
|
|
|
|
150
|
|
(3)
|
|
55.3%
|
|||
PE
|
|
|
150
|
|
|
|
—
|
|
|
|
150
|
|
(3)
|
|
55.6%
|
|||
ATSI
|
|
|
100
|
|
|
|
—
|
|
|
|
100
|
|
|
|
48.5%
|
|||
Penn
|
|
|
50
|
|
|
|
—
|
|
|
|
33
|
|
(3)
|
|
41.9%
|
(1)
|
No limitations.
|
(2)
|
No limitation based upon blanket financing authorization from the FERC under existing open market tariffs.
|
(3)
|
On April 11, 2012, a joint application was filed with FERC seeking authorization to incur short-term debt in the amount of $600 million for JCP&L, $500 million for ME, $150 million for MP, $150 million for PE, $300 million for PN, $50 million for Penn, $400 million for TrAIL and $200 million for WP during the period June 1, 2012 through May 31, 2014.
|
LOC Bank
|
|
Aggregate LOC Amount
(1)
|
|
LOC Termination Date
|
|
Reimbursements of LOC Draws Due
|
||
|
|
(In millions)
|
|
|
|
|
||
UBS
|
|
$
|
272
|
|
|
April 2014
|
|
April 2014
|
CitiBank N.A.
|
|
165
|
|
|
June 2014
|
|
June 2014
|
|
Wachovia Bank
|
|
153
|
|
|
March 2014
|
|
March 2014
|
|
The Bank of Nova Scotia
|
|
49
|
|
|
April 2014
|
|
Multiple dates
(2)
|
|
Total
|
|
$
|
639
|
|
|
|
|
|
(1)
|
Includes approximately $7 million of applicable interest coverage.
|
(2)
|
Earlier of 6 months from drawing or the LOC termination date.
|
|
|
Senior Secured
|
|
Senior Unsecured
|
||||||||
Issuer
|
|
S&P
|
|
Moody’s
|
|
Fitch
|
|
S&P
|
|
Moody’s
|
|
Fitch
|
FE
|
|
—
|
|
—
|
|
—
|
|
BB+
|
|
Baa3
|
|
BBB
|
FES
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa3
|
|
BBB
|
AE Supply
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa3
|
|
BBB-
|
AGC
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa3
|
|
BBB
|
ATSI
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa1
|
|
A-
|
CEI
|
|
BBB
|
|
Baa1
|
|
BBB
|
|
BBB-
|
|
Baa3
|
|
BBB-
|
JCP&L
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa2
|
|
BBB+
|
ME
|
|
BBB
|
|
A3
|
|
A-
|
|
BBB-
|
|
Baa2
|
|
BBB+
|
MP
|
|
BBB+
|
|
Baa1
|
|
A-
|
|
BBB-
|
|
Baa3
|
|
BBB+
|
OE
|
|
BBB
|
|
A3
|
|
BBB+
|
|
BBB-
|
|
Baa2
|
|
BBB
|
PN
|
|
BBB
|
|
A3
|
|
BBB+
|
|
BBB-
|
|
Baa2
|
|
BBB
|
Penn
|
|
BBB+
|
|
A3
|
|
BBB+
|
|
—
|
|
—
|
|
—
|
PE
|
|
BBB+
|
|
Baa1
|
|
A-
|
|
BBB-
|
|
Baa3
|
|
BBB+
|
TE
|
|
BBB
|
|
Baa1
|
|
BBB
|
|
—
|
|
—
|
|
—
|
TrAIL
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
A3
|
|
A-
|
WP
|
|
BBB+
|
|
A3
|
|
A-
|
|
BBB-
|
|
Baa2
|
|
BBB+
|
|
|
Three Months
Ended March 31 |
|
Increase
|
||||||||
Operating Cash Flows
|
|
2012
|
|
2011
|
|
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Net income
|
|
$
|
306
|
|
|
$
|
47
|
|
|
$
|
259
|
|
Non-cash charges
|
|
366
|
|
|
504
|
|
|
(138
|
)
|
|||
Pension trust contributions
|
|
(600
|
)
|
|
(157
|
)
|
|
(443
|
)
|
|||
Working capital and other
|
|
(485
|
)
|
|
97
|
|
|
(582
|
)
|
|||
|
|
$
|
(413
|
)
|
|
$
|
491
|
|
|
$
|
(904
|
)
|
•
|
$105 million
from lower collections from customers during the first quarter of 2012 as a result of the effects of milder weather described in Results of Operations above.
|
•
|
$158 million
from increased materials and supplies balances as a result of increased coal inventories and the absence in 2012 of the $67 million non-cash inventory valuation adjustment recorded in connection with the merger.
|
•
|
$137 million
reflecting the absence of income tax refunds received during the first quarter of 2011 due to cash benefits realized on bonus depreciation and settlements with the IRS on certain prior year returns.
|
•
|
$166 million
from lower accounts payable balances as a result of the timing of payments to vendors during the first quarter of 2012 as compared to the same period of 2011.
|
|
|
Three Months
Ended March 31 |
||||||
Securities Issued or Redeemed / Retired
|
|
2012
|
|
2011
|
||||
|
|
(In millions)
|
||||||
New Issues
|
|
|
|
|
||||
PCRBs
|
|
$
|
—
|
|
|
$
|
150
|
|
Long-term revolving credit
|
|
—
|
|
|
60
|
|
||
Unsecured Notes
|
|
—
|
|
|
7
|
|
||
|
|
$
|
—
|
|
|
$
|
217
|
|
Redemptions / Retirements
|
|
|
|
|
||||
PCRBs
|
|
$
|
—
|
|
|
$
|
(200
|
)
|
Long-term revolving credit
|
|
—
|
|
|
(20
|
)
|
||
Senior secured notes
|
|
(16
|
)
|
|
(109
|
)
|
||
Unsecured notes
|
|
—
|
|
|
(30
|
)
|
||
|
|
$
|
(16
|
)
|
|
$
|
(359
|
)
|
|
|
|
|
|
||||
Short-term borrowings, net
|
|
$
|
1,075
|
|
|
$
|
(214
|
)
|
|
|
Three Months
Ended March 31 |
|
Increase
|
||||||||
Cash Used for (Provided from) Investing Activities
|
|
2012
|
|
2011
|
|
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Property Additions:
|
|
|
|
|
|
|
|
|||||
Regulated distribution
|
|
$
|
301
|
|
|
$
|
177
|
|
|
$
|
124
|
|
Competitive energy services
|
|
243
|
|
|
214
|
|
|
29
|
|
|||
Regulated independent transmission
|
|
28
|
|
|
27
|
|
|
1
|
|
|||
Other and reconciling adjustments
|
|
17
|
|
|
31
|
|
|
(14
|
)
|
|||
Cash received in Allegheny merger
|
|
—
|
|
|
(590
|
)
|
|
590
|
|
|||
Investments
|
|
(63
|
)
|
|
(23
|
)
|
|
(40
|
)
|
|||
Other
|
|
8
|
|
|
23
|
|
|
(15
|
)
|
|||
|
|
$
|
534
|
|
|
$
|
(141
|
)
|
|
$
|
675
|
|
Guarantees and Other Assurances
|
|
Maximum Exposure
|
||
|
|
(In millions)
|
||
FirstEnergy Guarantees on Behalf of its Subsidiaries
|
|
|
||
Energy and Energy-Related Contracts
(1)
|
|
$
|
273
|
|
LOC (long-term debt) - interest coverage
(2)
|
|
5
|
|
|
OVEC obligations
|
|
300
|
|
|
Other
(3)
|
|
299
|
|
|
|
|
877
|
|
|
Subsidiaries’ Guarantees
|
|
|
||
Energy and Energy-Related Contracts
|
|
137
|
|
|
LOC (long-term debt) - interest coverage
(2)
|
|
2
|
|
|
FES’ guarantee of NGC’s nuclear property insurance
|
|
79
|
|
|
FES’ guarantee of FGCO’s sale and leaseback obligations
|
|
2,286
|
|
|
Other
|
|
12
|
|
|
|
|
2,516
|
|
|
Signal Peak & Global Rail facility
|
|
350
|
|
|
Surety Bonds
|
|
151
|
|
|
LOCs
(4)
|
|
185
|
|
|
|
|
686
|
|
|
Total Guarantees and Other Assurances
|
|
$
|
4,079
|
|
(1)
|
Issued for open-ended terms, with a 10-day termination right by FirstEnergy.
|
(2)
|
Reflects the interest coverage portion of LOCs issued in support of floating rate PCRBs with various maturities. The principal amount of floating-rate PCRBs of
$632 million
is reflected in currently payable long-term debt on FirstEnergy's consolidated balance sheets.
|
(3)
|
Includes guarantees of
$95 million
for nuclear decommissioning funding assurances,
$161 million
supporting OE’s sale and leaseback arrangement, and
$34 million
for railcar leases.
|
(4)
|
Includes
$32 million
issued for various terms pursuant to LOC capacity available under FirstEnergy’s revolving credit facilities,
$116 million
pledged in connection with the sale and leaseback of Beaver Valley Unit 2 by OE and
$37 million
pledged in connection with the sale and leaseback of Perry by OE.
|
Collateral Provisions
|
|
FES
|
|
AE Supply
|
|
Utilities
|
|
Total
|
||||||||
|
|
(In millions)
|
||||||||||||||
Credit rating downgrade to below investment grade
(1)
|
|
$
|
439
|
|
|
$
|
8
|
|
|
$
|
59
|
|
|
$
|
506
|
|
Material adverse event
(2)
|
|
91
|
|
|
60
|
|
|
14
|
|
|
165
|
|
||||
Total
|
|
$
|
530
|
|
|
$
|
68
|
|
|
$
|
73
|
|
|
$
|
671
|
|
(1)
|
Includes
$222 million
and
$40 million
that are also considered accelerations of payment or funding obligation for FES and the Utilities, respectively.
|
(2)
|
Includes
$42 million
that is also considered an acceleration of payment or funding obligation for FES.
|
Source of Information-
Fair Value by Contract Year
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Prices actively quoted
(1)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Other external sources
(2)
|
|
(158
|
)
|
|
(49
|
)
|
|
(28
|
)
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
(260
|
)
|
|||||||
Prices based on models
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
27
|
|
|
14
|
|
|||||||
Total
(3)
|
|
$
|
(174
|
)
|
|
$
|
(49
|
)
|
|
$
|
(28
|
)
|
|
$
|
(25
|
)
|
|
$
|
1
|
|
|
$
|
27
|
|
|
$
|
(248
|
)
|
(1)
|
Represents exchange traded New York Mercantile Exchange futures and options.
|
(2)
|
Primarily represents contracts based on broker and IntercontinentalExchange quotes.
|
(3)
|
Includes $(305) million in non-hedge commodity derivative contracts that are primarily related to NUG contracts. NUG contracts are generally subject to regulatory accounting and do not materially impact earnings.
|
•
|
generation supplied through a CBP commencing June 1, 2011;
|
•
|
a load cap of no less than
80%
, so that no single supplier is awarded more than
80%
of the tranches, which also applies to tranches assigned post-auction;
|
•
|
a
6%
generation discount to certain low income customers provided by the Ohio Companies through a bilateral wholesale contract with FES (FES is one of the wholesale suppliers to the Ohio Companies);
|
•
|
no increase in base distribution rates through May 31, 2014; and
|
•
|
a new distribution rider, Rider DCR, to recover a return of, and on, capital investments in the delivery system.
|
•
|
Freezing current base distribution rates through May 31, 2016;
|
•
|
Continuing to provide economic development and assistance to low-income customers for the two-year extension period at the levels established in the existing ESP;
|
•
|
Providing Percentage of Income Payment Plan customers with a 6 percent generation rate discount;
|
•
|
Continuing to provide capacity to shopping and non-shopping customers at a market-based price set through an auction process; and
|
•
|
Continuing Rider DCR that allows continued investment in the distribution system for the benefit of customers.
|
•
|
Securing generation supply over a longer period of time to mitigate any potential price spikes for FirstEnergy Ohio utility customers who do not switch to a competitive generation supplier; and
|
•
|
Extending the recovery period for costs associated with purchasing renewable energy credits mandated by SB 221 through the end of the new ESP period. This will reduce the monthly renewable energy charge for all FirstEnergy Ohio utility customers.
|
•
|
$40 million
annualized base rate increases effective June 29, 2010;
|
•
|
Deferral of February 2010 storm restoration expenses over a maximum
five
-year period;
|
•
|
Additional
$20 million
annualized base rate increase effective in January 2011;
|
•
|
Decrease of
$20 million
in ENEC rates effective January 2011, providing for deferral of related costs for later recovery in 2012; and
|
•
|
Moratorium on filing for further increases in base rates before December 1, 2011, except under specified circumstances.
|
|
|
Three Months
Ended March 31 |
|
Increase
|
||||||||
Revenues by Type of Service
|
|
2012
|
|
2011
|
|
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Direct and Governmental Aggregation
|
|
$
|
1,007
|
|
|
$
|
840
|
|
|
$
|
167
|
|
POLR and Structured Sales
|
|
231
|
|
|
374
|
|
|
(143
|
)
|
|||
Wholesale
|
|
215
|
|
|
91
|
|
|
124
|
|
|||
Transmission
|
|
31
|
|
|
26
|
|
|
5
|
|
|||
RECs
|
|
5
|
|
|
32
|
|
|
(27
|
)
|
|||
Other
|
|
27
|
|
|
28
|
|
|
(1
|
)
|
|||
Total Revenues
|
|
$
|
1,516
|
|
|
$
|
1,391
|
|
|
$
|
125
|
|
|
|
Three Months
Ended March 31 |
|
Increase
|
|||||
MWH Sales by Type of Service
|
|
2012
|
|
2011
|
|
(Decrease)
|
|||
|
|
(In thousands)
|
|
|
|||||
Direct
|
|
12,391
|
|
|
9,671
|
|
|
28.1
|
%
|
Governmental Aggregation
|
|
5,186
|
|
|
4,310
|
|
|
20.3
|
%
|
POLR and Structured Sales
|
|
4,030
|
|
|
5,843
|
|
|
(31.0
|
)%
|
Wholesale
|
|
21
|
|
|
985
|
|
|
(97.9
|
)%
|
Total Sales
|
|
21,628
|
|
|
20,809
|
|
|
3.9
|
%
|
Source of Change in Direct and Governmental Aggregation
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Direct Sales:
|
|
|
||
Effect of increase in sales volumes
|
|
$
|
159
|
|
Change in prices
|
|
(43
|
)
|
|
|
|
116
|
|
|
|
|
|
||
Governmental Aggregation:
|
|
|
||
Effect of increase in sales volumes
|
|
55
|
|
|
Change in prices
|
|
(4
|
)
|
|
|
|
51
|
|
|
|
|
$
|
167
|
|
Source of Change in POLR and Structured Revenues
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
POLR and Structured:
|
|
|
||
Effect of decrease in sales volumes
|
|
$
|
(116
|
)
|
Change in prices
|
|
(27
|
)
|
|
|
|
$
|
(143
|
)
|
|
|
|
Source of Change in Wholesale Revenues
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Wholesale:
|
|
|
||
Effect of decrease in sales volumes
|
|
$
|
(28
|
)
|
Change in prices
|
|
(1
|
)
|
|
Gain on settled contracts
|
|
110
|
|
|
Capacity revenue
|
|
43
|
|
|
|
|
$
|
124
|
|
|
Increase
|
||
Source of Change in Fuel and Purchased Power
|
(Decrease)
|
||
|
(In millions)
|
||
Fossil Fuel:
|
|
||
Change due to increased unit costs
|
$
|
9
|
|
Change due to volume consumed
|
(64
|
)
|
|
|
(55
|
)
|
|
|
|
||
Nuclear Fuel:
|
|
||
Change due to increased unit costs
|
2
|
|
|
Change due to volume consumed
|
5
|
|
|
|
7
|
|
|
|
|
||
Non-affiliated Purchased Power:
|
|
||
Change due to decreased unit costs
|
(73
|
)
|
|
Change due to volume purchased
|
103
|
|
|
Loss on settled contracts
|
106
|
|
|
Capacity expense
|
54
|
|
|
|
190
|
|
|
|
|
||
Affiliated Purchased Power:
|
|
||
Change due to decreased unit costs
|
(25
|
)
|
|
Change due to volume purchased
|
18
|
|
|
Loss on settled contracts
|
55
|
|
|
|
48
|
|
|
Net Increase in Fuel and Purchased Power Costs
|
$
|
190
|
|
•
|
Transmission expenses decreased $62 million due primarily to decreases of $68 million from lower congestion, network and line loss costs in MISO. These decreases were partially offset by increases in PJM of $6 million from higher network costs, partially offset by lower congestion and line loss expenses.
|
•
|
Nuclear operating costs decreased by $28 million due primarily to lower labor, contractor and materials and equipment costs as there were no refueling outages this year while the previous year included the Beaver Valley Unit 2 refueling outage.
|
•
|
Fossil operating costs decreased by $7 million due primarily to lower contractor and materials and equipment costs resulting from a decrease in planned and unplanned outages, partially offset by higher labor costs.
|
•
|
Other operating expenses decreased by $73 million as the expenses in the previous year included a $54 million provision for excess and obsolete material relating to revised inventory practices adopted in connection with the Allegheny merger and favorable net mark-to-market adjustments of $28 million on commodity contract positions, partially offset by higher agent commission costs of $9 million from increased retail sales.
|
Distribution MWH Deliveries
|
|
Increase (Decrease)
|
|
|
|
|
|
Residential
|
|
(7.2
|
)%
|
Commercial
|
|
(1.7
|
)%
|
Industrial
|
|
3.2
|
%
|
Net Decrease in Distribution Deliveries
|
|
(2.4
|
)%
|
Distribution Revenues
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Residential
|
|
$
|
(14
|
)
|
Commercial
|
|
1
|
|
|
Industrial
|
|
3
|
|
|
Net Decrease in Distribution Revenues
|
|
$
|
(10
|
)
|
Retail Generation MWH Sales
|
|
Decrease
|
|
|
|
|
|
Residential
|
|
(14.3
|
)%
|
Commercial
|
|
(22.6
|
)%
|
Industrial
|
|
(15.6
|
)%
|
Decrease in Retail Generation Sales
|
|
(15.9
|
)%
|
Retail Generation Revenues
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Residential
|
|
$
|
19
|
|
Commercial
|
|
(10
|
)
|
|
Industrial
|
|
(5
|
)
|
|
Net Increase in Retail Generation Revenues
|
|
$
|
4
|
|
Operating Expenses - Changes
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Purchased power costs
|
|
$
|
(31
|
)
|
Other operating expenses
|
|
25
|
|
|
Provision for depreciation
|
|
1
|
|
|
Amortization of regulatory assets, net
|
|
(1
|
)
|
|
Net Decrease in Operating Expenses
|
|
$
|
(6
|
)
|
Distribution MWH Deliveries
|
|
Decrease
|
|
|
|
|
|
Residential
|
|
(8.8
|
)%
|
Commercial
|
|
(0.3
|
)%
|
Industrial
|
|
(1.1
|
)%
|
Decrease in Distribution Deliveries
|
|
(4.3
|
)%
|
Distribution Revenues
|
|
Decrease
|
||
|
|
(In millions)
|
||
Residential
|
|
$
|
(27
|
)
|
Commercial
|
|
(18
|
)
|
|
Industrial
|
|
(6
|
)
|
|
Decrease in Distribution Revenues
|
|
$
|
(51
|
)
|
Retail Generation MWH Sales
|
|
Decrease
|
|
|
|
|
|
Residential
|
|
(16.2
|
)%
|
Commercial
|
|
(14.6
|
)%
|
Industrial
|
|
(26.6
|
)%
|
Decrease in Retail Generation Sales
|
|
(16.1
|
)%
|
Retail Generation Revenues
|
|
Decrease
|
||
|
|
(In millions)
|
||
Residential
|
|
$
|
(45
|
)
|
Commercial
|
|
(14
|
)
|
|
Industrial
|
|
(4
|
)
|
|
Decrease in Retail Generation Revenues
|
|
$
|
(63
|
)
|
Operating Expenses - Changes
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Purchased power costs
|
|
$
|
(106
|
)
|
Other operating expenses
|
|
1
|
|
|
Provision for depreciation
|
|
4
|
|
|
Amortization of regulatory assets, net
|
|
(62
|
)
|
|
General taxes
|
|
(3
|
)
|
|
Net Decrease in Operating Expenses
|
|
$
|
(166
|
)
|
|
Period
|
||||||||||||||
|
January
|
|
February
|
|
March
|
|
First Quarter
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Total Number of Shares Purchased
(1)
|
163,030
|
|
|
165,753
|
|
|
1,325,407
|
|
|
1,654,190
|
|
||||
Average Price Paid per Share
|
$
|
42.26
|
|
|
$
|
43.60
|
|
|
$
|
44.59
|
|
|
$
|
44.26
|
|
Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
Share amounts reflect purchases on the open market to satisfy FirstEnergy’s obligations to deliver common stock for some or all of the following: 2007 Incentive Plan, DCPD, EDCP, Savings Plan, Director Compensation, Allegheny Energy, Inc. 1998 LTIP, Allegheny Energy, Inc. 2008 LTIP, Allegheny Energy, Inc., Non-Employee Director Stock Plan, Allegheny Energy, Inc., Amended and Restated Revised Plan for Deferral of Compensation of Directors, and Stock Investment Plan.
|
*
|
Users of this data are advised in accordance with Rule 406T of Regulation S-T promulgated by the SEC that this Interactive Data Files of FES, OE and JCP&L are deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
|
|
FIRSTENERGY CORP.
|
|
Registrant
|
|
|
|
FIRSTENERGY SOLUTIONS CORP.
|
|
Registrant
|
|
|
|
OHIO EDISON COMPANY
|
|
Registrant
|
|
|
|
/s/ Harvey L. Wagner
|
|
Harvey L. Wagner
|
|
Vice President, Controller
and Chief Accounting Officer
|
|
|
|
JERSEY CENTRAL POWER & LIGHT COMPANY
|
|
Registrant
|
|
|
|
/s/ Marlene A. Barwood
|
|
Marlene A. Barwood
|
|
Controller
(Principal Accounting Officer)
|
|
|
FIRSTENERGY GENERATION CORP.
|
|
|
|
|
|
By:
|
|
/s/ Steven R. Staub
|
|
|
|
Steven R. Staub, Assistant Treasurer
|
|
|
|
|
|
|
|
|
|
|
|
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. as Trustee
|
|
|
|
|
|
By:
|
|
/s/ Biagio S. Impala
|
|
|
|
Biagio S. Impala, Vice President
|
|
|
|
/s/ Michele A. Buchtel
|
|
|
|
Michele A. Buchtel, Notary Public
|
|
|
|
Commission Expires
08/28/2016
|
|
|
|
/s/ Susan Demaske
|
|
|
|
Susan Demaske, Attorney at Law, Notary Public
|
|
|
|
Commission Expires [No expiration date]
|
|
|
|
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
|
|
|
|
|
|
By:
|
|
/s/ Biagio S. Impala
|
|
|
|
Biagio S. Impala, Vice President
|
|
Schedule 1
Filing Offices For the Original Indenture
|
|||
Plant
|
Jurisdiction/Filing Office
|
Recording Information
|
Date filed
|
Ashtabula Plant
|
Ashtabula County - Office of the County Recorder of Ashtabula County, Ohio
|
Instrument No. 200800007364
Volume 436 Page 1732
|
6/27/2008
|
Bay Shore Plant
|
Lucas County - Office of the County Recorder of Lucas County, Ohio
|
Instrument No.
20080627-0032756
|
6/27/2008
|
Bruce Mansfield Plant
|
Beaver County - Office of the County Recorder of Beaver County, Pennsylvania
|
Instrument No.
3326465
|
6/27/2008
|
Burger Plant
|
Belmont County - Office of the County Recorder of Belmont County, Ohio
|
Instrument No. 200800004786
Volume 0157 Page 172
|
6/27/2008
|
Eastlake Plant
|
Lake County - Office of the County Recorder of Lake County, Ohio
|
Instrument No.
2008R018408
|
6/27/2008
|
Edgewater Plant and West Lorain Plant
|
Lorain County - Office of the County Recorder of Lorain County, Ohio
|
Instrument No.
2008-0259135
|
6/27/2008
|
Fremont Plant [Released]
|
Sandusky County - Office of the County Recorder of Sandusky County, Ohio
|
Instrument No.
200800004585
Official Record Book 66 Page 708
Official Record Book 105
Page 732 - 756
|
06/27/2008
Release date: 7/28/2011
|
Lake Shore Plant
|
Cuyahoga County - Office of the County Recorder of Cuyahoga County, Ohio
|
Instrument No.
200806270329
|
6/27/2008
|
Mad River Plant
|
Clark County - Office of the County Recorder of Clark County, Ohio
|
Instrument No.
200800010888
Official Record Volume 1852 Page 1946
Instrument No. 200800011009
Official Record Volume 1853 Page 18
|
06/27/2008
06/30/2008
(Re-recorded)
|
Richland Plant [Released]
|
Defiance County - Office of the County Recorder of Defiance County, Ohio
|
Instrument No.
200800003811
Official Record Book 327 Page 482
Official Record Book 356
Page 734-758
|
06/27/2008
Release date: 10/21/2011
|
Sammis Plant
|
Jefferson County - Office of the County Recorder of Jefferson County, Ohio
|
Instrument No. 232633
Official Record Volume 851 Page 344
|
6/27/2008
|
Seneca Plant
|
Warren County - Office of the County Recorder of Warren County, Pennsylvania
|
Instrument No. 2008-2962
|
6/27/2008
|
Stryker Plant [Released]
|
Williams County - Office of the County Recorder of Williams County, Ohio
|
Instrument No.
200800082091
Official Record Book 0240 Page 0516
Official Record Book 280
Page 85-109
|
06/27/2008
Release date: 10/20/2011
|
|
|
FIRSTENERGY NUCLEAR GENERATION CORP.
|
|
|
|
|
|
By:
|
|
/s/ Steven R. Staub
|
|
|
|
Steven R. Staub, Assistant Treasurer
|
|
|
|
|
|
|
|
|
|
|
|
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. as Trustee
|
|
|
|
|
|
By:
|
|
/s/ Biagio S. Impala
|
|
|
|
Biagio S. Impala, Vice President
|
|
|
|
/s/ Michele A. Buchtel
|
|
|
|
Michele A. Buchtel, Notary Public
|
|
|
|
Commission Expires
08/28/2016
|
|
|
|
/s/ Susan Demaske
|
|
|
|
Susan Demaske, Attorney at Law, Notary Public
|
|
|
|
Commission Expires [No expiration date]
|
|
|
|
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
|
|
|
|
|
|
By:
|
|
/s/ Biagio S. Impala
|
|
|
|
Biagio S. Impala, Vice President
|
|
Schedule 1
Filing Offices For the Original Indenture
|
|||
Plant
|
Jurisdiction/Filing Office
|
Recording Information
|
Date filed
|
Davis Besse
|
Office of the County Recorder of Ottawa County, Ohio
|
OR Volume 1278, Page 204
|
June 12, 2009
|
Perry
|
Office of the County Recorder of Lake County, Ohio
|
Document # 2009R015200
|
June 12, 2009
|
Beaver Valley
|
Office of the County Recorder of Beaver County, Pennsylvania
|
Instrument No. 3346070
|
June 12, 2009
|
By:
|
|
/s/ George M. Smart
|
|
|
|
George M. Smart, Chairman
|
|
|
|
"Company"
|
|
|
|
|
|
|
|
/s/ Anthony J. Alexander
|
|
|
|
Anthony J. Alexander
|
|
|
|
"Executive"
|
|
|
|
OHIO WATER DEVELOPMENT
|
|
|
|
AUTHORITY
|
|
|
|
|
|
By:
|
|
/s/ Steve Grossman
|
|
|
|
Executive Director
|
|
|
|
|
|
|
|
|
|
|
|
FIRSTENERGY NUCLEAR
|
|
|
|
GENERATION CORP.
|
|
|
|
|
|
By:
|
|
/s/ James F. Pearson
|
|
|
|
Vice President and Treasurer
|
|
By:
|
/s/ Biagio Impala
|
|
Vice President
|
|
|
OHIO AIR QUALITY
|
|
|
|
DEVELOPMENT AUTHORITY
|
|
|
|
|
|
By:
|
|
/s/ Todd Nein
|
|
|
|
Interim Executive Director
|
|
|
|
|
|
|
|
|
|
|
|
FIRSTENERGY GENERATION CORP.
|
|
|
|
|
|
By:
|
|
/s/ James F. Pearson
|
|
|
|
Vice President and Treasurer
|
|
By:
|
/s/ Biagio Impala
|
|
Vice President
|
|
Three Months
Ended March 31 |
||||||
|
2012
|
|
2011
|
||||
|
(Dollars in millions)
|
||||||
EARNINGS AS DEFINED IN REGULATION S-K:
|
|
|
|
||||
Income before extraordinary items
|
$
|
306
|
|
|
$
|
47
|
|
Interest and other charges, before reduction for amounts capitalized and deferred
|
246
|
|
|
231
|
|
||
Provision for income taxes
|
222
|
|
|
111
|
|
||
Interest element of rentals charged to income
(1)
|
36
|
|
|
36
|
|
||
Earnings as defined
|
$
|
810
|
|
|
$
|
425
|
|
FIXED CHARGES AS DEFINED IN REGULATION S-K:
|
|
|
|
||||
Interest before reduction for amounts capitalized and deferred
|
$
|
246
|
|
|
$
|
231
|
|
Interest element of rentals charged to income
(1)
|
36
|
|
|
36
|
|
||
Fixed charges as defined
|
$
|
282
|
|
|
$
|
267
|
|
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
|
2.87
|
|
|
1.59
|
|
(1)
|
Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
|
1.
|
I have reviewed this report on Form 10-Q of FirstEnergy Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Anthony J. Alexander
|
|
|
Anthony J. Alexander
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of FirstEnergy Solutions Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Donald R. Schneider
|
|
|
Donald R. Schneider
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Ohio Edison Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Charles E. Jones
|
|
|
Charles E. Jones
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Jersey Central Power & Light Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Donald M. Lynch
|
|
|
Donald M. Lynch
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of FirstEnergy Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Mark T. Clark
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Mark T. Clark
|
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Chief Financial Officer
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1.
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I have reviewed this report on Form 10-Q of FirstEnergy Solutions Corp.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
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/s/ Mark T. Clark
|
|
|
Mark T. Clark
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Ohio Edison Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Mark T. Clark
|
|
|
Mark T. Clark
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this report on Form 10-Q of Jersey Central Power & Light Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Marlene A. Barwood
|
|
|
Marlene A. Barwood
|
|
|
Chief Financial Officer
|
|
|
/s/ Anthony J. Alexander
|
|
|
Anthony J. Alexander
|
|
|
Chief Executive Officer
|
|
|
|
|
|
/s/ Mark T. Clark
|
|
|
Mark T. Clark
|
|
|
Chief Financial Officer
|
|
|
/s/ Donald R. Schneider
|
|
|
Donald R. Schneider
|
|
|
President
|
|
|
(Chief Executive Officer)
|
|
|
|
|
|
/s/ Mark T. Clark
|
|
|
Mark T. Clark
|
|
|
Chief Financial Officer
|
|
|
/s/ Charles E. Jones
|
|
|
Charles E. Jones
|
|
|
President
|
|
|
(Chief Executive Officer)
|
|
|
|
|
|
/s/ Mark T. Clark
|
|
|
Mark T. Clark
|
|
|
Chief Financial Officer
|
|
|
/s/ Donald M. Lynch
|
|
|
Donald M. Lynch
|
|
|
President
|
|
|
(Chief Executive Officer)
|
|
|
|
|
|
/s/ Marlene A. Barwood
|
|
|
Marlene A. Barwood
|
|
|
Controller
|
|
|
(Chief Financial Officer)
|
|