|
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
|
|
|
Yes
þ
No
o
|
|
FirstEnergy Corp. and FirstEnergy Solutions Corp.
|
Yes
þ
No
o
|
|
FirstEnergy Corp. and FirstEnergy Solutions Corp.
|
Yes
o
No
þ
|
|
FirstEnergy Corp. and FirstEnergy Solutions Corp.
|
|
|
OUTSTANDING
|
|
CLASS
|
|
AS OF MARCH 31, 2015
|
|
FirstEnergy Corp., $0.10 par value
|
|
422,025,870
|
|
FirstEnergy Solutions Corp., no par value
|
|
7
|
|
|
•
|
The speed and nature of increased competition in the electric utility industry, in general, and the retail sales market in particular.
|
•
|
The ability to experience growth in the Regulated Distribution and Regulated Transmission segments and to successfully implement our revised sales strategy for the CES segment.
|
•
|
The accomplishment of our regulatory and operational goals in connection with our transmission investment plan, pending transmission rate case and the effectiveness of our repositioning strategy to reflect a more regulated business profile.
|
•
|
Changes in assumptions regarding economic conditions within our territories, assessment of the reliability of our transmission system, or the availability of capital or other resources supporting identified transmission investment opportunities.
|
•
|
The impact of the regulatory process on the pending matters at the federal level and in the various states in which we do business including, but not limited to, matters related to rates and the ESP IV in Ohio.
|
•
|
The impact of the federal regulatory process on FERC-regulated entities and transactions, in particular FERC regulation of wholesale energy and capacity markets, including PJM markets and FERC-jurisdictional wholesale transactions; FERC regulation of cost-of-service rates, including FERC Opinion No. 531's revised ROE methodology for FERC jurisdictional wholesale generation and transmission utility service; and FERC’s compliance and enforcement activity, including compliance and enforcement activity related to NERC’s mandatory reliability standards.
|
•
|
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 such as a polar vortex or other significant weather events, and all associated regulatory events or actions.
|
•
|
Changing energy, capacity and commodity market prices including, but not limited to, coal, natural gas and oil, and their availability and impact on retail margins.
|
•
|
The continued ability of our regulated utilities to recover their costs.
|
•
|
Costs being higher than anticipated and the success of our policies to control costs and to mitigate low energy, capacity and market prices.
|
•
|
Other legislative and regulatory changes, and revised environmental requirements, including, but not limited to, proposed GHG emission and water discharge regulations and the effects of the EPA's CCR regulations, CSAPR, MATS, including our estimated costs of compliance, and CWA 316(b) water intake regulation.
|
•
|
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 initiatives or rulemakings could result in our decision to deactivate or idle certain generating units).
|
•
|
The uncertainties associated with the deactivation of certain older regulated and competitive fossil units, including the impact on vendor commitments, and the timing thereof as they relate to the reliability of the transmission grid.
|
•
|
The impact of other future changes to the operational status or availability of our generating units.
|
•
|
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 arising from the indications of cracking in the shield building at Davis-Besse.
|
•
|
The risks and uncertainties associated with litigation, arbitration, mediation and like proceedings, including, but not limited to, any such proceedings related to vendor commitments.
|
•
|
The impact of labor disruptions by our unionized workforce.
|
•
|
Replacement power costs being higher than anticipated or not fully hedged.
|
•
|
The ability to comply with applicable state and federal reliability standards and energy efficiency and peak demand reduction mandates.
|
•
|
Changes in customers' demand for power, including, but not limited to, changes resulting from the implementation of state and federal energy efficiency and peak demand reduction mandates.
|
•
|
The ability to accomplish or realize anticipated benefits from strategic and financial goals, including, but not limited to, the ability to continue to reduce costs and to successfully execute our financial plans designed to improve our credit metrics and strengthen our balance sheet through, among other actions, our previously-implemented dividend reduction, our cash flow initiative project and our other proposed capital raising initiatives.
|
•
|
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.
|
•
|
Changing market conditions that could affect the measurement of certain liabilities and the value of assets held in our NDTs, pension trusts and other trust funds, and cause us and/or 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 announced financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us and our subsidiaries.
|
•
|
Actions that may be taken by credit rating agencies that could negatively affect us and/or our subsidiaries' access to financing, increase the costs thereof, and increase requirements to post additional collateral to support outstanding commodity positions, LOCs and other financial guarantees.
|
•
|
Changes in national and regional economic conditions affecting us, our subsidiaries and/or our major industrial and commercial customers, and other counterparties with which we do business, including fuel suppliers.
|
•
|
The impact of any changes in tax laws or regulations or adverse tax audit results or rulings.
|
•
|
Issues concerning the stability of domestic and foreign financial institutions and counterparties with which we do business.
|
•
|
The risks associated with cyber-attacks on our electronic data centers that could compromise the information stored on our networks, including proprietary information and customer data.
|
•
|
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
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
|
|
|
|
|
|
Item 2. Management's Discussion and Analysis of Registrant and Subsidiaries
|
|
FirstEnergy Corp.
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
|
Management's Narrative Analysis of Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 3.
Defaults Upon Senior Securities
|
|
|
|
Item 4.
Mine Safety Disclosures
|
|
|
|
Item 5. Other Information
|
|
|
|
GLOSSARY OF TERMS,
Continued
|
|
Apple®
|
Apple®, iPad® and iPhone® are registered trademarks of Apple Inc.
|
ARR
|
Auction Revenue Right
|
ASLB
|
Atomic Safety and Licensing Board
|
BGS
|
Basic Generation Service
|
BRA
|
PJM RPM Base Residual Auction
|
CAA
|
Clean Air Act
|
CCR
|
Coal Combustion Residuals
|
CDWR
|
California Department of Water Resources
|
CERCLA
|
Comprehensive Environmental Response, Compensation, and Liability Act of 1980
|
CFR
|
Code of Federal Regulations
|
CO
2
|
Carbon Dioxide
|
CONE
|
Cost-of-New-Entry
|
CSA
|
Coal Sales Agreement
|
CSAPR
|
Cross-State Air Pollution Rule
|
CTA
|
Consolidated Tax Adjustment
|
CWA
|
Clean Water Act
|
DCR
|
Delivery Capital Recovery
|
DOE
|
United States Department of Energy
|
DR
|
Demand Response
|
DSP
|
Default Service Plan
|
EDC
|
Electric Distribution Company
|
EE&C
|
Energy Efficiency and Conservation
|
EGS
|
Electric Generation Supplier
|
ELPC
|
Environmental Law & Policy Center
|
EmPOWER Maryland
|
EmPower Maryland Energy Efficiency Act
|
ENEC
|
Expanded Net Energy Cost
|
EPA
|
United States Environmental Protection Agency
|
ERO
|
Electric Reliability Organization
|
ESP
|
Electric Security Plan
|
Facebook®
|
Facebook is a registered trademark of Facebook, Inc.
|
FASB
|
Financial Accounting Standards Board
|
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
|
GWH
|
Gigawatt-hour
|
HCL
|
Hydrochloric Acid
|
ICE
|
IntercontinentalExchange, Inc.
|
ICG
|
International Coal Group Inc.
|
IRS
|
Internal Revenue Service
|
ISO
|
Independent System Operator
|
kV
|
Kilovolt
|
KWH
|
Kilowatt-hour
|
LBR
|
Little Blue Run
|
LMP
|
Locational Marginal Price
|
LOC
|
Letter of Credit
|
LSE
|
Load Serving Entity
|
MATS
|
Mercury and Air Toxics Standards
|
GLOSSARY OF TERMS,
Continued
|
|
MDPSC
|
Maryland Public Service Commission
|
MISO
|
Midcontinent Independent System Operator, Inc.
|
mmBTU
|
One Million British Thermal Units
|
Moody’s
|
Moody’s Investors Service, Inc.
|
MVP
|
Multi-Value Project
|
MW
|
Megawatt
|
MWH
|
Megawatt-hour
|
NDT
|
Nuclear Decommissioning Trust
|
NERC
|
North American Electric Reliability Corporation
|
NGO
|
Non-Governmental Organization
|
Ninth Circuit
|
United States Court of Appeals for the Ninth Circuit
|
NJBPU
|
New Jersey Board of Public Utilities
|
NMB
|
Non-Market Based
|
NOV
|
Notice of Violation
|
NOx
|
Nitrogen Oxide
|
NPDES
|
National Pollutant Discharge Elimination System
|
NRC
|
Nuclear Regulatory Commission
|
NRG
|
NRG Energy, Inc.
|
NSR
|
New Source Review
|
NUG
|
Non-Utility Generation
|
NYISO
|
New York Independent System Operator, Inc.
|
NYPSC
|
New York State Public Service Commission
|
OCC
|
Ohio Consumers' Counsel
|
OEPA
|
Ohio Environmental Protection Agency
|
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, L.L.C.
|
PJM Region
|
The aggregate of the zones within PJM
|
PJM Tariff
|
PJM Open Access Transmission Tariff
|
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
|
RCRA
|
Resource Conservation and Recovery Act
|
REC
|
Renewable Energy Credit
|
REIT
|
Real Estate Investment Trust
|
RFC
|
Reliability
First
Corporation
|
RFP
|
Request for Proposal
|
RGGI
|
Regional Greenhouse Gas Initiative
|
ROE
|
Return on Equity
|
RPM
|
Reliability Pricing Model
|
RTEP
|
Regional Transmission Expansion Plan
|
RTO
|
Regional Transmission Organization
|
S&P
|
Standard & Poor’s Ratings Service
|
SAIDI
|
System Average Interruption Duration Index
|
GLOSSARY OF TERMS,
Continued
|
|
SAIFI
|
System Average Interruption Frequency Index
|
SB221
|
Amended Substitute Senate Bill No. 221
|
SB310
|
Substitute Senate Bill No. 310
|
SBC
|
Societal Benefits Charge
|
SEC
|
United States Securities and Exchange Commission
|
SEC Regulation FD
|
SEC Regulation Fair Disclosure
|
SERTP
|
Southeastern Regional Transmission Planning
|
Seventh Circuit
|
United States Court of Appeals for the Seventh Circuit
|
SIP
|
State Implementation Plan(s) Under the Clean Air Act
|
SO
2
|
Sulfur Dioxide
|
SOS
|
Standard Offer Service
|
SPE
|
Special Purpose Entity
|
SREC
|
Solar Renewable Energy Credit
|
SSO
|
Standard Service Offer
|
TDS
|
Total Dissolved Solid
|
Third Circuit
|
United States Court of Appeals for the Third Circuit
|
TMI-2
|
Three Mile Island Unit 2
|
TSC
|
Transmission Service Charge
|
Twitter®
|
Twitter is a registered trademark of Twitter, Inc.
|
U.S. Court of Appeals for the D.C. Circuit
|
United States Court of Appeals for the District of Columbia Circuit
|
VIE
|
Variable Interest Entity
|
VRR
|
Variable Resource Requirement
|
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)
|
|
2015
|
|
2014
|
|
||||
|
|
|
|
|
|
||||
REVENUES:
|
|
|
|
|
|
||||
Electric utilities
|
|
$
|
2,800
|
|
|
$
|
2,732
|
|
|
Unregulated businesses
|
|
1,097
|
|
|
1,450
|
|
|
||
Total revenues*
|
|
3,897
|
|
|
4,182
|
|
|
||
|
|
|
|
|
|
||||
OPERATING EXPENSES:
|
|
|
|
|
|
||||
Fuel
|
|
513
|
|
|
617
|
|
|
||
Purchased power
|
|
1,113
|
|
|
1,455
|
|
|
||
Other operating expenses
|
|
1,057
|
|
|
1,182
|
|
|
||
Provision for depreciation
|
|
319
|
|
|
294
|
|
|
||
Amortization (deferral) of regulatory assets, net
|
|
32
|
|
|
(28
|
)
|
|
||
General taxes
|
|
269
|
|
|
271
|
|
|
||
Total operating expenses
|
|
3,303
|
|
|
3,791
|
|
|
||
|
|
|
|
|
|
||||
OPERATING INCOME
|
|
594
|
|
|
391
|
|
|
||
|
|
|
|
|
|
||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
||||
Loss on debt redemptions
|
|
—
|
|
|
(7
|
)
|
|
||
Investment income
|
|
17
|
|
|
22
|
|
|
||
Interest expense
|
|
(279
|
)
|
|
(265
|
)
|
|
||
Capitalized financing costs
|
|
34
|
|
|
29
|
|
|
||
Total other expense
|
|
(228
|
)
|
|
(221
|
)
|
|
||
|
|
|
|
|
|
||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
366
|
|
|
170
|
|
|
||
|
|
|
|
|
|
||||
INCOME TAXES
|
|
144
|
|
|
48
|
|
|
||
|
|
|
|
|
|
||||
INCOME FROM CONTINUING OPERATIONS
|
|
222
|
|
|
122
|
|
|
||
|
|
|
|
|
|
||||
Discontinued operations (net of income taxes of $69) (Note 13)
|
|
—
|
|
|
86
|
|
|
||
|
|
|
|
|
|
||||
NET INCOME
|
|
$
|
222
|
|
|
$
|
208
|
|
|
|
|
|
|
|
|
||||
EARNINGS PER SHARE OF COMMON STOCK:
|
|
|
|
|
|
||||
Basic - Continuing Operations
|
|
$
|
0.53
|
|
|
$
|
0.29
|
|
|
Basic - Discontinued Operations (Note 13)
|
|
—
|
|
|
0.21
|
|
|
||
Basic - Net Earnings per Basic Share
|
|
$
|
0.53
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
||||
Diluted - Continuing Operations
|
|
$
|
0.53
|
|
|
$
|
0.29
|
|
|
Diluted - Discontinued Operations (Note 13)
|
|
—
|
|
|
0.20
|
|
|
||
Diluted - Net Earnings per Diluted Share
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
|
|
|
|
|
|
||||
Basic
|
|
421
|
|
|
419
|
|
|
||
Diluted
|
|
423
|
|
|
420
|
|
|
||
|
|
|
|
|
|
||||
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK
|
|
$
|
0.72
|
|
|
$
|
0.72
|
|
|
|
|
Three Months Ended March 31,
|
|
||||||
(In millions)
|
|
2015
|
|
2014
|
|
||||
|
|
|
|
|
|
||||
NET INCOME
|
|
$
|
222
|
|
|
$
|
208
|
|
|
|
|
|
|
|
|
||||
OTHER COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
|
|
|
||
Pension and OPEB prior service costs
|
|
(31
|
)
|
|
(42
|
)
|
|
||
Amortized losses on derivative hedges
|
|
1
|
|
|
—
|
|
|
||
Change in unrealized gain on available-for-sale securities
|
|
4
|
|
|
21
|
|
|
||
Other comprehensive loss
|
|
(26
|
)
|
|
(21
|
)
|
|
||
Income tax benefits on other comprehensive loss
|
|
(10
|
)
|
|
(8
|
)
|
|
||
Other comprehensive loss, net of tax
|
|
(16
|
)
|
|
(13
|
)
|
|
||
|
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
|
$
|
206
|
|
|
$
|
195
|
|
|
|
|
|
|
|
|
(In millions, except share amounts)
|
|
March 31,
2015 |
|
December 31,
2014 |
||||
ASSETS
|
|
|
|
|
|
|
||
CURRENT ASSETS:
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
90
|
|
|
$
|
85
|
|
Receivables-
|
|
|
|
|
|
|
||
Customers, net of allowance for uncollectible accounts of $60 in 2015 and $59 in 2014
|
|
1,675
|
|
|
1,554
|
|
||
Other, net of allowance for uncollectible accounts of $5 in 2015 and in 2014
|
|
201
|
|
|
225
|
|
||
Materials and supplies
|
|
762
|
|
|
817
|
|
||
Prepaid taxes
|
|
225
|
|
|
128
|
|
||
Derivatives
|
|
133
|
|
|
159
|
|
||
Accumulated deferred income taxes
|
|
548
|
|
|
518
|
|
||
Collateral
|
|
220
|
|
|
230
|
|
||
Other
|
|
157
|
|
|
160
|
|
||
|
|
4,011
|
|
|
3,876
|
|
||
PROPERTY, PLANT AND EQUIPMENT:
|
|
|
|
|
|
|
||
In service
|
|
47,992
|
|
|
47,484
|
|
||
Less — Accumulated provision for depreciation
|
|
14,508
|
|
|
14,150
|
|
||
|
|
33,484
|
|
|
33,334
|
|
||
Construction work in progress
|
|
2,633
|
|
|
2,449
|
|
||
|
|
36,117
|
|
|
35,783
|
|
||
INVESTMENTS:
|
|
|
|
|
|
|
||
Nuclear plant decommissioning trusts
|
|
2,360
|
|
|
2,341
|
|
||
Other
|
|
898
|
|
|
881
|
|
||
|
|
3,258
|
|
|
3,222
|
|
||
|
|
|
|
|
||||
DEFERRED CHARGES AND OTHER ASSETS:
|
|
|
|
|
|
|
||
Goodwill
|
|
6,418
|
|
|
6,418
|
|
||
Regulatory assets
|
|
1,372
|
|
|
1,411
|
|
||
Other
|
|
1,345
|
|
|
1,456
|
|
||
|
|
9,135
|
|
|
9,285
|
|
||
|
|
$
|
52,521
|
|
|
$
|
52,166
|
|
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
|
|
||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
||
Currently payable long-term debt
|
|
$
|
787
|
|
|
$
|
804
|
|
Short-term borrowings
|
|
2,559
|
|
|
1,799
|
|
||
Accounts payable
|
|
1,102
|
|
|
1,279
|
|
||
Accrued taxes
|
|
503
|
|
|
490
|
|
||
Accrued compensation and benefits
|
|
249
|
|
|
329
|
|
||
Derivatives
|
|
154
|
|
|
167
|
|
||
Other
|
|
908
|
|
|
693
|
|
||
|
|
6,262
|
|
|
5,561
|
|
||
CAPITALIZATION:
|
|
|
|
|
|
|
||
Common stockholders’ equity-
|
|
|
|
|
|
|
||
Common stock, $0.10 par value, authorized 490,000,000 shares - 422,025,870 and 421,102,570 shares outstanding as of March 31, 2015 and December 31, 2014, respectively
|
|
42
|
|
|
42
|
|
||
Other paid-in capital
|
|
9,871
|
|
|
9,847
|
|
||
Accumulated other comprehensive income
|
|
230
|
|
|
246
|
|
||
Retained earnings
|
|
2,205
|
|
|
2,285
|
|
||
Total common stockholders’ equity
|
|
12,348
|
|
|
12,420
|
|
||
Noncontrolling interest
|
|
2
|
|
|
2
|
|
||
Total equity
|
|
12,350
|
|
|
12,422
|
|
||
Long-term debt and other long-term obligations
|
|
19,130
|
|
|
19,176
|
|
||
|
|
31,480
|
|
|
31,598
|
|
||
NONCURRENT LIABILITIES:
|
|
|
|
|
|
|
||
Accumulated deferred income taxes
|
|
7,211
|
|
|
7,057
|
|
||
Retirement benefits
|
|
3,817
|
|
|
3,932
|
|
||
Asset retirement obligations
|
|
1,390
|
|
|
1,387
|
|
||
Deferred gain on sale and leaseback transaction
|
|
816
|
|
|
824
|
|
||
Adverse power contract liability
|
|
213
|
|
|
217
|
|
||
Other
|
|
1,332
|
|
|
1,590
|
|
||
|
|
14,779
|
|
|
15,007
|
|
||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 10)
|
|
|
|
|
|
|
||
|
|
$
|
52,521
|
|
|
$
|
52,166
|
|
|
|
Three Months Ended March 31,
|
|
||||||
(In millions)
|
|
2015
|
|
2014
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||||
Net Income
|
|
$
|
222
|
|
|
$
|
208
|
|
|
Adjustments to reconcile net income to net cash from operating activities-
|
|
|
|
|
|
||||
Income from discontinued operations (Note 13)
|
|
—
|
|
|
(86
|
)
|
|
||
Provision for depreciation
|
|
319
|
|
|
294
|
|
|
||
Amortization (deferral) of regulatory assets, net
|
|
32
|
|
|
(28
|
)
|
|
||
Nuclear fuel amortization
|
|
57
|
|
|
48
|
|
|
||
Deferred purchased power and other costs
|
|
(31
|
)
|
|
(34
|
)
|
|
||
Deferred income taxes and investment tax credits, net
|
|
127
|
|
|
181
|
|
|
||
Deferred costs on sale leaseback transaction, net
|
|
12
|
|
|
13
|
|
|
||
Amortization of customer intangibles and deferred advertising costs
|
|
7
|
|
|
9
|
|
|
||
Retirement benefits
|
|
(4
|
)
|
|
(20
|
)
|
|
||
Pension trust contributions
|
|
(143
|
)
|
|
—
|
|
|
||
Commodity derivative transactions, net (Note 8)
|
|
2
|
|
|
(17
|
)
|
|
||
Loss on debt redemptions
|
|
—
|
|
|
7
|
|
|
||
Changes in current assets and liabilities-
|
|
|
|
|
|
||||
Receivables
|
|
(97
|
)
|
|
(168
|
)
|
|
||
Materials and supplies
|
|
30
|
|
|
12
|
|
|
||
Prepayments and other current assets
|
|
(116
|
)
|
|
(29
|
)
|
|
||
Accounts payable
|
|
(177
|
)
|
|
200
|
|
|
||
Accrued taxes
|
|
(80
|
)
|
|
(242
|
)
|
|
||
Accrued interest
|
|
44
|
|
|
46
|
|
|
||
Accrued compensation and benefits
|
|
(80
|
)
|
|
(118
|
)
|
|
||
Other current liabilities
|
|
11
|
|
|
2
|
|
|
||
Cash collateral, net
|
|
(15
|
)
|
|
(461
|
)
|
|
||
Other
|
|
73
|
|
|
91
|
|
|
||
Net cash provided from (used for) operating activities
|
|
193
|
|
|
(92
|
)
|
|
||
|
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||||
New Financing-
|
|
|
|
|
|
||||
Long-term debt
|
|
—
|
|
|
1,467
|
|
|
||
Short-term borrowings, net
|
|
760
|
|
|
—
|
|
|
||
Redemptions and Repayments-
|
|
|
|
|
|
||||
Long-term debt
|
|
(48
|
)
|
|
(489
|
)
|
|
||
Short-term borrowings, net
|
|
—
|
|
|
(319
|
)
|
|
||
Common stock dividend payments
|
|
(152
|
)
|
|
(151
|
)
|
|
||
Other
|
|
—
|
|
|
(10
|
)
|
|
||
Net cash provided from financing activities
|
|
560
|
|
|
498
|
|
|
||
|
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
||||
Property additions
|
|
(668
|
)
|
|
(821
|
)
|
|
||
Nuclear fuel
|
|
(60
|
)
|
|
(55
|
)
|
|
||
Proceeds from asset sales
|
|
10
|
|
|
394
|
|
|
||
Sales of investment securities held in trusts
|
|
371
|
|
|
621
|
|
|
||
Purchases of investment securities held in trusts
|
|
(394
|
)
|
|
(646
|
)
|
|
||
Cash investments
|
|
21
|
|
|
28
|
|
|
||
Asset removal costs
|
|
(28
|
)
|
|
(39
|
)
|
|
||
Other
|
|
—
|
|
|
3
|
|
|
||
Net cash used for investing activities
|
|
(748
|
)
|
|
(515
|
)
|
|
||
|
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
5
|
|
|
(109
|
)
|
|
||
Cash and cash equivalents at beginning of period
|
|
85
|
|
|
218
|
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
90
|
|
|
$
|
109
|
|
|
(In millions, except share amounts)
|
|
March 31,
2015 |
|
December 31,
2014 |
||||
ASSETS
|
|
|
|
|
|
|
||
CURRENT ASSETS:
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
2
|
|
|
$
|
2
|
|
Receivables-
|
|
|
|
|
|
|
||
Customers, net of allowance for uncollectible accounts of $15 in 2015 and $18 in 2014
|
|
351
|
|
|
415
|
|
||
Affiliated companies
|
|
541
|
|
|
525
|
|
||
Other, net of allowance for uncollectible accounts of $3 in 2015 and 2014
|
|
152
|
|
|
107
|
|
||
Notes receivable from affiliated companies
|
|
44
|
|
|
—
|
|
||
Materials and supplies
|
|
447
|
|
|
492
|
|
||
Derivatives
|
|
132
|
|
|
147
|
|
||
Collateral
|
|
217
|
|
|
229
|
|
||
Prepayments and other
|
|
117
|
|
|
95
|
|
||
|
|
2,003
|
|
|
2,012
|
|
||
PROPERTY, PLANT AND EQUIPMENT:
|
|
|
|
|
|
|
||
In service
|
|
13,706
|
|
|
13,596
|
|
||
Less — Accumulated provision for depreciation
|
|
5,331
|
|
|
5,208
|
|
||
|
|
8,375
|
|
|
8,388
|
|
||
Construction work in progress
|
|
1,057
|
|
|
1,010
|
|
||
|
|
9,432
|
|
|
9,398
|
|
||
INVESTMENTS:
|
|
|
|
|
|
|
||
Nuclear plant decommissioning trusts
|
|
1,381
|
|
|
1,365
|
|
||
Other
|
|
10
|
|
|
10
|
|
||
|
|
1,391
|
|
|
1,375
|
|
||
|
|
|
|
|
||||
DEFERRED CHARGES AND OTHER ASSETS:
|
|
|
|
|
|
|
||
Customer intangibles
|
|
74
|
|
|
78
|
|
||
Goodwill
|
|
23
|
|
|
23
|
|
||
Property taxes
|
|
31
|
|
|
41
|
|
||
Unamortized sale and leaseback costs
|
|
248
|
|
|
217
|
|
||
Derivatives
|
|
67
|
|
|
52
|
|
||
Other
|
|
108
|
|
|
114
|
|
||
|
|
551
|
|
|
525
|
|
||
|
|
$
|
13,377
|
|
|
$
|
13,310
|
|
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
|
|
||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
||
Currently payable long-term debt
|
|
$
|
490
|
|
|
$
|
506
|
|
Short-term borrowings-
|
|
|
|
|
||||
Affiliated companies
|
|
—
|
|
|
35
|
|
||
Other
|
|
284
|
|
|
99
|
|
||
Accounts payable-
|
|
|
|
|
|
|
||
Affiliated companies
|
|
429
|
|
|
416
|
|
||
Other
|
|
156
|
|
|
248
|
|
||
Accrued taxes
|
|
85
|
|
|
102
|
|
||
Derivatives
|
|
154
|
|
|
166
|
|
||
Other
|
|
206
|
|
|
184
|
|
||
|
|
1,804
|
|
|
1,756
|
|
||
CAPITALIZATION:
|
|
|
|
|
|
|
||
Common stockholder's equity-
|
|
|
|
|
|
|
||
Common stock, without par value, authorized 750 shares - 7 shares outstanding as of March 31, 2015 and December 31, 2014
|
|
3,594
|
|
|
3,594
|
|
||
Accumulated other comprehensive income
|
|
56
|
|
|
57
|
|
||
Retained earnings
|
|
1,931
|
|
|
1,934
|
|
||
Total common stockholder's equity
|
|
5,581
|
|
|
5,585
|
|
||
Long-term debt and other long-term obligations
|
|
2,605
|
|
|
2,608
|
|
||
|
|
8,186
|
|
|
8,193
|
|
||
NONCURRENT LIABILITIES:
|
|
|
|
|
|
|
||
Deferred gain on sale and leaseback transaction
|
|
816
|
|
|
824
|
|
||
Accumulated deferred income taxes
|
|
548
|
|
|
511
|
|
||
Retirement benefits
|
|
327
|
|
|
324
|
|
||
Asset retirement obligations
|
|
838
|
|
|
841
|
|
||
Derivatives
|
|
28
|
|
|
14
|
|
||
Other
|
|
830
|
|
|
847
|
|
||
|
|
3,387
|
|
|
3,361
|
|
||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 10)
|
|
|
|
|
|
|
||
|
|
$
|
13,377
|
|
|
$
|
13,310
|
|
|
|
Three Months Ended March 31,
|
|
||||||
(In millions)
|
|
2015
|
|
2014
|
|
||||
|
|
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
(3
|
)
|
|
$
|
13
|
|
|
Adjustments to reconcile net income (loss) to net cash from operating activities-
|
|
|
|
|
|
||||
Income from discontinued operations (Note 13)
|
|
—
|
|
|
(116
|
)
|
|
||
Provision for depreciation
|
|
80
|
|
|
74
|
|
|
||
Nuclear fuel amortization
|
|
57
|
|
|
48
|
|
|
||
Deferred costs on sale and leaseback transaction, net
|
|
12
|
|
|
13
|
|
|
||
Amortization of customer intangibles and deferred advertising costs
|
|
7
|
|
|
9
|
|
|
||
Deferred income taxes and investment tax credits, net
|
|
34
|
|
|
48
|
|
|
||
Investment impairments
|
|
6
|
|
|
2
|
|
|
||
Commodity derivative transactions, net (Note 8)
|
|
1
|
|
|
(17
|
)
|
|
||
Loss on debt redemptions
|
|
—
|
|
|
5
|
|
|
||
Changes in current assets and liabilities-
|
|
|
|
|
|
||||
Receivables
|
|
1
|
|
|
553
|
|
|
||
Materials and supplies
|
|
21
|
|
|
21
|
|
|
||
Prepayments and other current assets
|
|
(18
|
)
|
|
(48
|
)
|
|
||
Accounts payable
|
|
(75
|
)
|
|
(430
|
)
|
|
||
Accrued taxes
|
|
(24
|
)
|
|
(49
|
)
|
|
||
Accrued compensation and benefits
|
|
(9
|
)
|
|
(19
|
)
|
|
||
Cash collateral, net
|
|
12
|
|
|
(420
|
)
|
|
||
Other
|
|
3
|
|
|
1
|
|
|
||
Net cash provided from (used for) operating activities
|
|
105
|
|
|
(312
|
)
|
|
||
|
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||||
New financing-
|
|
|
|
|
|
||||
Long-term debt
|
|
—
|
|
|
417
|
|
|
||
Short-term borrowings, net
|
|
150
|
|
|
120
|
|
|
||
Equity contribution from parent
|
|
—
|
|
|
500
|
|
|
||
Redemptions and repayments-
|
|
|
|
|
|
||||
Long-term debt
|
|
(17
|
)
|
|
(445
|
)
|
|
||
Other
|
|
(2
|
)
|
|
(4
|
)
|
|
||
Net cash provided from financing activities
|
|
131
|
|
|
588
|
|
|
||
|
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
||||
Property additions
|
|
(119
|
)
|
|
(298
|
)
|
|
||
Nuclear fuel
|
|
(60
|
)
|
|
(55
|
)
|
|
||
Proceeds from asset sales
|
|
—
|
|
|
307
|
|
|
||
Sales of investment securities held in trusts
|
|
189
|
|
|
423
|
|
|
||
Purchases of investment securities held in trusts
|
|
(202
|
)
|
|
(438
|
)
|
|
||
Loans to affiliated companies, net
|
|
(44
|
)
|
|
(215
|
)
|
|
||
Net cash used for investing activities
|
|
(236
|
)
|
|
(276
|
)
|
|
||
|
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
||
Cash and cash equivalents at beginning of period
|
|
2
|
|
|
2
|
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
2
|
|
|
$
|
2
|
|
|
(In millions, except per share amounts)
|
|
Three Months Ended March 31,
|
||||||
Reconciliation of Basic and Diluted Earnings per Share of Common Stock
|
|
2015
|
|
2014
|
||||
|
|
|
||||||
Income from continuing operations
|
|
$
|
222
|
|
|
$
|
122
|
|
Discontinued operations (Note 13)
|
|
—
|
|
|
86
|
|
||
Net income
|
|
$
|
222
|
|
|
$
|
208
|
|
|
|
|
|
|
||||
Weighted average number of basic shares outstanding
|
|
421
|
|
|
419
|
|
||
Assumed exercise of dilutive stock options and awards
(1)
|
|
2
|
|
|
1
|
|
||
Weighted average number of diluted shares outstanding
|
|
423
|
|
|
420
|
|
||
|
|
|
|
|
||||
Earnings per share:
|
|
|
|
|
||||
Basic earnings per share:
|
|
|
|
|
||||
Income from continuing operations
|
|
$
|
0.53
|
|
|
$
|
0.29
|
|
Discontinued operations (Note 13)
|
|
—
|
|
|
0.21
|
|
||
Net earnings per basic share
|
|
$
|
0.53
|
|
|
$
|
0.50
|
|
|
|
|
|
|
||||
Diluted earnings per share:
|
|
|
|
|
||||
Income from continuing operations
|
|
$
|
0.53
|
|
|
$
|
0.29
|
|
Discontinued operations (Note 13)
|
|
—
|
|
|
0.20
|
|
||
Net earnings per diluted share
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
(1)
|
For the three months ended
March 31, 2015
and
March 31, 2014
,
1 million
and
2 million
shares, respectively, were excluded from the calculation of diluted shares outstanding, as their inclusion would be antidilutive.
|
Components of Net Periodic Benefit Costs (Credits)
|
|
Pension
|
OPEB
|
|||||||||||||
For the Three Months Ended March 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
(In millions)
|
||||||||||||||
Service costs
|
|
$
|
48
|
|
|
$
|
42
|
|
|
$
|
1
|
|
|
$
|
2
|
|
Interest costs
|
|
96
|
|
|
100
|
|
|
7
|
|
|
10
|
|
||||
Expected return on plan assets
|
|
(111
|
)
|
|
(115
|
)
|
|
(8
|
)
|
|
(8
|
)
|
||||
Amortization of prior service costs (credits)
|
|
2
|
|
|
2
|
|
|
(33
|
)
|
|
(44
|
)
|
||||
Net periodic costs (credits)
|
|
$
|
35
|
|
|
$
|
29
|
|
|
$
|
(33
|
)
|
|
$
|
(40
|
)
|
Net Periodic Benefit Expense (Credit)
|
|
Pension
|
|
OPEB
|
||||||||||||
For the Three Months Ended March 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
(In millions)
|
||||||||||||||
FirstEnergy
|
|
$
|
25
|
|
|
$
|
21
|
|
|
$
|
(23
|
)
|
|
$
|
(27
|
)
|
FES
|
|
4
|
|
|
4
|
|
|
(4
|
)
|
|
(4
|
)
|
FirstEnergy
|
|
|
|
|
|
|
|
|
||||||||
|
|
Gains & Losses on Cash Flow Hedges
|
|
Unrealized Gains on AFS Securities
|
|
Defined Benefit Pension & OPEB Plans
|
|
Total
|
||||||||
|
|
(In millions)
|
||||||||||||||
AOCI Balance as of January 1, 2015
|
|
$
|
(37
|
)
|
|
$
|
25
|
|
|
$
|
258
|
|
|
$
|
246
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income before reclassifications
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||
Amounts reclassified from AOCI
|
|
1
|
|
|
(10
|
)
|
|
(31
|
)
|
|
(40
|
)
|
||||
Other comprehensive income (loss)
|
|
1
|
|
|
4
|
|
|
(31
|
)
|
|
(26
|
)
|
||||
Income tax (benefits) on other comprehensive income (loss)
|
|
—
|
|
|
1
|
|
|
(11
|
)
|
|
(10
|
)
|
||||
Net other comprehensive income (loss)
|
|
1
|
|
|
3
|
|
|
(20
|
)
|
|
(16
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
AOCI Balance as of March 31, 2015
|
|
$
|
(36
|
)
|
|
$
|
28
|
|
|
$
|
238
|
|
|
$
|
230
|
|
|
|
|
|
|
|
|
|
|
||||||||
AOCI Balance as of January 1, 2014
|
|
$
|
(36
|
)
|
|
$
|
9
|
|
|
$
|
311
|
|
|
$
|
284
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income before reclassifications
|
|
—
|
|
|
35
|
|
|
—
|
|
|
35
|
|
||||
Amounts reclassified from AOCI
|
|
—
|
|
|
(14
|
)
|
|
(42
|
)
|
|
(56
|
)
|
||||
Other comprehensive income (loss)
|
|
—
|
|
|
21
|
|
|
(42
|
)
|
|
(21
|
)
|
||||
Income tax (benefits) on other comprehensive income (loss)
|
|
—
|
|
|
8
|
|
|
(16
|
)
|
|
(8
|
)
|
||||
Net other comprehensive income (loss)
|
|
—
|
|
|
13
|
|
|
(26
|
)
|
|
(13
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
AOCI Balance as of March 31, 2014
|
|
$
|
(36
|
)
|
|
$
|
22
|
|
|
$
|
285
|
|
|
$
|
271
|
|
FES
|
|
|
|
|
|
|
|
|
||||||||
|
|
Gains & Losses on Cash Flow Hedges
|
|
Unrealized Gains on AFS Securities
|
|
Defined Benefit Pension & OPEB Plans
|
|
Total
|
||||||||
|
|
(In millions)
|
||||||||||||||
AOCI Balance as of January 1, 2015
|
|
$
|
(7
|
)
|
|
$
|
21
|
|
|
$
|
43
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income before reclassifications
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||
Amounts reclassified from AOCI
|
|
(1
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|
(15
|
)
|
||||
Other comprehensive income (loss)
|
|
(1
|
)
|
|
3
|
|
|
(4
|
)
|
|
(2
|
)
|
||||
Income tax (benefits) on other comprehensive loss
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Net other comprehensive income (loss)
|
|
(1
|
)
|
|
3
|
|
|
(3
|
)
|
|
(1
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
AOCI Balance as of March 31, 2015
|
|
$
|
(8
|
)
|
|
$
|
24
|
|
|
$
|
40
|
|
|
$
|
56
|
|
|
|
|
|
|
|
|
|
|
||||||||
AOCI Balance as of January 1, 2014
|
|
$
|
(1
|
)
|
|
$
|
8
|
|
|
$
|
47
|
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income before reclassifications
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||
Amounts reclassified from AOCI
|
|
(2
|
)
|
|
(14
|
)
|
|
(5
|
)
|
|
(21
|
)
|
||||
Other comprehensive income (loss)
|
|
(2
|
)
|
|
19
|
|
|
(5
|
)
|
|
12
|
|
||||
Income tax (benefits) on other comprehensive income (loss)
|
|
(1
|
)
|
|
7
|
|
|
(2
|
)
|
|
4
|
|
||||
Net other comprehensive income (loss)
|
|
(1
|
)
|
|
12
|
|
|
(3
|
)
|
|
8
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
AOCI Balance as of March 31, 2014
|
|
$
|
(2
|
)
|
|
$
|
20
|
|
|
$
|
44
|
|
|
$
|
62
|
|
|
Maximum
Exposure
|
|
Discounted Lease
Payments, net
|
|
Net
Exposure
|
||||||
|
(In millions)
|
||||||||||
FirstEnergy
|
$
|
1,321
|
|
|
$
|
1,053
|
|
|
$
|
268
|
|
FES
|
1,235
|
|
|
1,014
|
|
|
221
|
|
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
|
FirstEnergy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recurring Fair Value Measurements
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
Assets
|
(In millions)
|
||||||||||||||||||||||||||||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
1,262
|
|
|
$
|
—
|
|
|
$
|
1,262
|
|
|
$
|
—
|
|
|
$
|
1,221
|
|
|
$
|
—
|
|
|
$
|
1,221
|
|
Derivative assets - commodity contracts
|
2
|
|
|
191
|
|
|
—
|
|
|
193
|
|
|
1
|
|
|
171
|
|
|
—
|
|
|
172
|
|
||||||||
Derivative assets - FTRs
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
||||||||
Derivative assets - NUG contracts
(1)
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||
Equity securities
(2)
|
695
|
|
|
—
|
|
|
—
|
|
|
695
|
|
|
592
|
|
|
—
|
|
|
—
|
|
|
592
|
|
||||||||
Foreign government debt securities
|
—
|
|
|
85
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
76
|
|
|
—
|
|
|
76
|
|
||||||||
U.S. government debt securities
|
—
|
|
|
185
|
|
|
—
|
|
|
185
|
|
|
—
|
|
|
182
|
|
|
—
|
|
|
182
|
|
||||||||
U.S. state debt securities
|
—
|
|
|
244
|
|
|
—
|
|
|
244
|
|
|
—
|
|
|
237
|
|
|
—
|
|
|
237
|
|
||||||||
Other
(3)
|
48
|
|
|
186
|
|
|
—
|
|
|
234
|
|
|
55
|
|
|
256
|
|
|
—
|
|
|
311
|
|
||||||||
Total assets
|
$
|
745
|
|
|
$
|
2,153
|
|
|
$
|
9
|
|
|
$
|
2,907
|
|
|
$
|
648
|
|
|
$
|
2,143
|
|
|
$
|
41
|
|
|
$
|
2,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivative liabilities - commodity contracts
|
$
|
(10
|
)
|
|
$
|
(167
|
)
|
|
$
|
—
|
|
|
$
|
(177
|
)
|
|
$
|
(26
|
)
|
|
$
|
(141
|
)
|
|
$
|
—
|
|
|
$
|
(167
|
)
|
Derivative liabilities - FTRs
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
||||||||
Derivative liabilities - NUG contracts
(1)
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
(150
|
)
|
|
—
|
|
|
—
|
|
|
(153
|
)
|
|
(153
|
)
|
||||||||
Total liabilities
|
$
|
(10
|
)
|
|
$
|
(167
|
)
|
|
$
|
(155
|
)
|
|
$
|
(332
|
)
|
|
$
|
(26
|
)
|
|
$
|
(141
|
)
|
|
$
|
(167
|
)
|
|
$
|
(334
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net assets (liabilities)
(4)
|
$
|
735
|
|
|
$
|
1,986
|
|
|
$
|
(146
|
)
|
|
$
|
2,575
|
|
|
$
|
622
|
|
|
$
|
2,002
|
|
|
$
|
(126
|
)
|
|
$
|
2,498
|
|
(1)
|
NUG contracts are subject to regulatory accounting treatment and do not impact earnings.
|
(2)
|
NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index or the Wells Fargo Hybrid and Preferred Securities REIT index.
|
(3)
|
Primarily consists of short-term cash investments.
|
(4)
|
Excludes
$(32) million
and
$40 million
as of
March 31, 2015
and
December 31, 2014
, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
|
|
NUG Contracts
(1)
|
|
FTRs
|
||||||||||||||||||||
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Net
|
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Net
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
January 1, 2014 Balance
|
$
|
20
|
|
|
$
|
(222
|
)
|
|
$
|
(202
|
)
|
|
$
|
4
|
|
|
$
|
(12
|
)
|
|
$
|
(8
|
)
|
Unrealized gain (loss)
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
47
|
|
|
(1
|
)
|
|
46
|
|
||||||
Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
(16
|
)
|
|
10
|
|
||||||
Settlements
|
(20
|
)
|
|
71
|
|
|
51
|
|
|
(38
|
)
|
|
15
|
|
|
(23
|
)
|
||||||
December 31, 2014 Balance
|
$
|
2
|
|
|
$
|
(153
|
)
|
|
$
|
(151
|
)
|
|
$
|
39
|
|
|
$
|
(14
|
)
|
|
$
|
25
|
|
Unrealized gain (loss)
|
1
|
|
|
(10
|
)
|
|
(9
|
)
|
|
4
|
|
|
3
|
|
|
7
|
|
||||||
Settlements
|
(1
|
)
|
|
13
|
|
|
12
|
|
|
(36
|
)
|
|
6
|
|
|
(30
|
)
|
||||||
March 31, 2015 Balance
|
$
|
2
|
|
|
$
|
(150
|
)
|
|
$
|
(148
|
)
|
|
$
|
7
|
|
|
$
|
(5
|
)
|
|
$
|
2
|
|
(1)
|
Changes in the fair value of NUG contracts are generally subject to regulatory accounting treatment and do not impact earnings.
|
|
|
Fair Value, Net (In millions)
|
|
Valuation
Technique
|
|
Significant Input
|
|
Range
|
|
Weighted Average
|
|
Units
|
|||
FTRs
|
|
$
|
2
|
|
|
Model
|
|
RTO auction clearing prices
|
|
($3.80) to $4.70
|
|
$0.90
|
|
Dollars/MWH
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
NUG Contracts
|
|
$
|
(148
|
)
|
|
Model
|
|
Generation
|
|
500 to 4,538,000
|
|
891,000
|
|
|
MWH
|
|
|
|
Regional electricity prices
|
|
$46.10 to $69.90
|
|
$52.80
|
|
Dollars/MWH
|
FES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recurring Fair Value Measurements
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
Assets
|
(In millions)
|
||||||||||||||||||||||||||||||
Corporate debt securities
|
$
|
—
|
|
|
$
|
690
|
|
|
$
|
—
|
|
|
$
|
690
|
|
|
$
|
—
|
|
|
$
|
655
|
|
|
$
|
—
|
|
|
$
|
655
|
|
Derivative assets - commodity contracts
|
2
|
|
|
191
|
|
|
—
|
|
|
193
|
|
|
1
|
|
|
171
|
|
|
—
|
|
|
172
|
|
||||||||
Derivative assets - FTRs
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
27
|
|
||||||||
Equity securities
(1)
|
469
|
|
|
—
|
|
|
—
|
|
|
469
|
|
|
360
|
|
|
—
|
|
|
—
|
|
|
360
|
|
||||||||
Foreign government debt securities
|
—
|
|
|
68
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
57
|
|
||||||||
U.S. government debt securities
|
—
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
46
|
|
||||||||
U.S. state debt securities
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||||
Other
(2)
|
—
|
|
|
124
|
|
|
—
|
|
|
124
|
|
|
—
|
|
|
199
|
|
|
—
|
|
|
199
|
|
||||||||
Total assets
|
$
|
471
|
|
|
$
|
1,112
|
|
|
$
|
6
|
|
|
$
|
1,589
|
|
|
$
|
361
|
|
|
$
|
1,132
|
|
|
$
|
27
|
|
|
$
|
1,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivative liabilities - commodity contracts
|
$
|
(10
|
)
|
|
$
|
(167
|
)
|
|
$
|
—
|
|
|
$
|
(177
|
)
|
|
$
|
(26
|
)
|
|
$
|
(141
|
)
|
|
$
|
—
|
|
|
$
|
(167
|
)
|
Derivative liabilities - FTRs
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
(13
|
)
|
||||||||
Total liabilities
|
$
|
(10
|
)
|
|
$
|
(167
|
)
|
|
$
|
(5
|
)
|
|
$
|
(182
|
)
|
|
$
|
(26
|
)
|
|
$
|
(141
|
)
|
|
$
|
(13
|
)
|
|
$
|
(180
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net assets (liabilities)
(3)
|
$
|
461
|
|
|
$
|
945
|
|
|
$
|
1
|
|
|
$
|
1,407
|
|
|
$
|
335
|
|
|
$
|
991
|
|
|
$
|
14
|
|
|
$
|
1,340
|
|
(1)
|
NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index or the Wells Fargo Hybrid and Preferred Securities REIT index.
|
(2)
|
Primarily consists of short-term cash investments.
|
(3)
|
Excludes
$(9) million
and
$44 million
as of
March 31, 2015
and
December 31, 2014
, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.
|
|
|
Derivative Asset
|
|
Derivative Liability
|
|
Net Asset (Liability)
|
||||||
|
|
(In millions)
|
||||||||||
January 1, 2014 Balance
|
|
$
|
3
|
|
|
$
|
(11
|
)
|
|
$
|
(8
|
)
|
Unrealized gain (loss)
|
|
34
|
|
|
(1
|
)
|
|
33
|
|
|||
Purchases
|
|
15
|
|
|
(16
|
)
|
|
(1
|
)
|
|||
Settlements
|
|
(25
|
)
|
|
15
|
|
|
(10
|
)
|
|||
December 31, 2014 Balance
|
|
$
|
27
|
|
|
$
|
(13
|
)
|
|
$
|
14
|
|
Unrealized gain
|
|
3
|
|
|
2
|
|
|
5
|
|
|||
Settlements
|
|
(24
|
)
|
|
6
|
|
|
(18
|
)
|
|||
March 31, 2015 Balance
|
|
$
|
6
|
|
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
|
Fair Value, Net (In millions)
|
|
Valuation
Technique
|
|
Significant Input
|
|
Range
|
|
Weighted Average
|
|
Units
|
||
FTRs
|
|
$
|
1
|
|
|
Model
|
|
RTO auction clearing prices
|
|
($3.80) to $4.30
|
|
$0.70
|
|
Dollars/MWH
|
|
|
March 31, 2015
(1)
|
|
December 31, 2014
(2)
|
||||||||||||||||||||
|
|
Cost Basis
|
|
Unrealized Gains
|
|
Fair Value
|
|
Cost Basis
|
|
Unrealized Gains
|
|
Fair Value
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
FirstEnergy
|
|
$
|
1,767
|
|
|
$
|
43
|
|
|
$
|
1,810
|
|
|
$
|
1,724
|
|
|
$
|
27
|
|
|
$
|
1,751
|
|
FES
|
|
812
|
|
|
22
|
|
|
834
|
|
|
788
|
|
|
13
|
|
|
801
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
FirstEnergy
|
|
$
|
648
|
|
|
$
|
47
|
|
|
$
|
695
|
|
|
$
|
533
|
|
|
$
|
58
|
|
|
$
|
591
|
|
FES
|
|
442
|
|
|
27
|
|
|
469
|
|
|
329
|
|
|
31
|
|
|
360
|
|
(1)
|
Excludes short-term cash investments: FE Consolidated -
$98 million
; FES -
$78 million
.
|
(2)
|
Excludes short-term cash investments: FE Consolidated -
$241 million
; FES -
$204 million
.
|
Three Months Ended
|
||||||||||||||||||||
March 31, 2015
|
|
Sale Proceeds
|
|
Realized Gains
|
|
Realized Losses
|
|
OTTI
|
|
Interest and
Dividend Income
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
FirstEnergy
|
|
$
|
371
|
|
|
$
|
60
|
|
|
$
|
(50
|
)
|
|
$
|
(7
|
)
|
|
$
|
25
|
|
FES
|
|
189
|
|
|
38
|
|
|
(28
|
)
|
|
(6
|
)
|
|
14
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2014
|
|
Sale Proceeds
|
|
Realized Gains
|
|
Realized Losses
|
|
OTTI
|
|
Interest and Dividend Income
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
FirstEnergy
|
|
$
|
621
|
|
|
$
|
28
|
|
|
$
|
(16
|
)
|
|
$
|
(2
|
)
|
|
$
|
25
|
|
FES
|
|
423
|
|
|
19
|
|
|
(5
|
)
|
|
(2
|
)
|
|
15
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
|
Cost Basis
|
|
Unrealized Gains
|
|
Fair Value
|
|
Cost Basis
|
|
Unrealized Gains
|
|
Fair Value
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
FirstEnergy
|
|
$
|
13
|
|
|
$
|
4
|
|
|
$
|
17
|
|
|
$
|
13
|
|
|
$
|
4
|
|
|
$
|
17
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
|
(In millions)
|
||||||||||||||
FirstEnergy
|
$
|
19,775
|
|
|
$
|
21,911
|
|
|
$
|
19,828
|
|
|
$
|
21,733
|
|
FES
|
3,080
|
|
|
3,215
|
|
|
3,097
|
|
|
3,241
|
|
•
|
Changes in the fair value of derivative instruments that are designated and qualify as cash flow hedges are recorded to AOCI with subsequent reclassification to earnings in the period during which the hedged forecasted transaction affects earnings.
|
•
|
Changes in the fair value of derivative instruments that are designated and qualify as fair value hedges are recorded as an adjustment to the item being hedged. When fair value hedges are discontinued, the adjustment recorded to the item being hedged is amortized into earnings.
|
•
|
Changes in the fair value of derivative instruments that are not designated in a hedging relationship are recorded in net income on a mark-to-market basis, unless otherwise noted.
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||
|
Fair Value
|
|
|
Fair Value
|
||||||||||||
|
March 31,
2015 |
|
December 31,
2014 |
|
|
March 31,
2015 |
|
December 31,
2014 |
||||||||
|
(In millions)
|
|
|
(In millions)
|
||||||||||||
Current Assets - Derivatives
|
|
|
|
|
Current Liabilities - Derivatives
|
|
|
|
||||||||
Commodity Contracts
|
$
|
127
|
|
|
$
|
121
|
|
|
Commodity Contracts
|
$
|
(150
|
)
|
|
$
|
(154
|
)
|
FTRs
|
6
|
|
|
38
|
|
|
FTRs
|
(4
|
)
|
|
(13
|
)
|
||||
|
133
|
|
|
159
|
|
|
|
(154
|
)
|
|
(167
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Noncurrent Liabilities - Adverse Power Contract Liability
|
|
|
|
||||||||
Deferred Charges and Other Assets - Other
|
|
|
|
|
NUGs
(1)
|
(150
|
)
|
|
(153
|
)
|
||||||
Commodity Contracts
|
66
|
|
|
51
|
|
|
Noncurrent Liabilities - Other
|
|
|
|
||||||
FTRs
|
1
|
|
|
1
|
|
|
Commodity Contracts
|
(27
|
)
|
|
(13
|
)
|
||||
NUGs
(1)
|
2
|
|
|
2
|
|
|
FTRs
|
(1
|
)
|
|
(1
|
)
|
||||
|
69
|
|
|
54
|
|
|
|
(178
|
)
|
|
(167
|
)
|
||||
Derivative Assets
|
$
|
202
|
|
|
$
|
213
|
|
|
Derivative Liabilities
|
$
|
(332
|
)
|
|
$
|
(334
|
)
|
(1)
|
NUG contracts are subject to regulatory accounting treatment. Changes in fair value do not impact earnings.
|
|
|
|
|
Amounts Not Offset in Consolidated Balance Sheet
|
|
|
||||||||||
March 31, 2015
|
|
Fair Value
|
|
Derivative Instruments
|
|
Cash Collateral (Received)/Pledged
|
|
Net Fair Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
|
$
|
193
|
|
|
$
|
(156
|
)
|
|
$
|
—
|
|
|
$
|
37
|
|
FTRs
|
|
7
|
|
|
(5
|
)
|
|
—
|
|
|
2
|
|
||||
NUG contracts
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
|
|
$
|
202
|
|
|
$
|
(161
|
)
|
|
$
|
—
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
|
$
|
(177
|
)
|
|
$
|
156
|
|
|
$
|
16
|
|
|
$
|
(5
|
)
|
FTRs
|
|
(5
|
)
|
|
5
|
|
|
—
|
|
|
—
|
|
||||
NUG contracts
|
|
(150
|
)
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
||||
|
|
$
|
(332
|
)
|
|
$
|
161
|
|
|
$
|
16
|
|
|
$
|
(155
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Not Offset in Consolidated Balance Sheet
|
|
|
||||||||||
December 31, 2014
|
|
Fair Value
|
|
Derivative Instruments
|
|
Cash Collateral (Received)/Pledged
|
|
Net Fair Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
|
$
|
172
|
|
|
$
|
(126
|
)
|
|
$
|
—
|
|
|
$
|
46
|
|
FTRs
|
|
39
|
|
|
(14
|
)
|
|
—
|
|
|
25
|
|
||||
NUG contracts
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
|
|
$
|
213
|
|
|
$
|
(140
|
)
|
|
$
|
—
|
|
|
$
|
73
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
|
$
|
(167
|
)
|
|
$
|
126
|
|
|
$
|
35
|
|
|
$
|
(6
|
)
|
FTRs
|
|
(14
|
)
|
|
14
|
|
|
—
|
|
|
—
|
|
||||
NUG contracts
|
|
(153
|
)
|
|
—
|
|
|
—
|
|
|
(153
|
)
|
||||
|
|
$
|
(334
|
)
|
|
$
|
140
|
|
|
$
|
35
|
|
|
$
|
(159
|
)
|
|
Purchases
|
|
Sales
|
|
Net
|
|
Units
|
|||
|
(In millions)
|
|||||||||
Power Contracts
|
22
|
|
|
42
|
|
|
(20
|
)
|
|
MWH
|
FTRs
|
22
|
|
|
—
|
|
|
22
|
|
|
MWH
|
NUGs
|
5
|
|
|
—
|
|
|
5
|
|
|
MWH
|
Natural Gas
|
32
|
|
|
—
|
|
|
32
|
|
|
mmBTU
|
|
|
Three Months Ended March 31,
|
||||||||||
Derivatives Not in a Hedging Relationship with Regulatory Offset
|
|
NUGs
|
|
Regulated FTRs
|
|
Total
|
||||||
|
|
(In millions)
|
||||||||||
Outstanding net asset (liability) as of January 1, 2015
|
|
$
|
(151
|
)
|
|
$
|
11
|
|
|
$
|
(140
|
)
|
Unrealized gain (loss)
|
|
(8
|
)
|
|
1
|
|
|
(7
|
)
|
|||
Settlements
|
|
11
|
|
|
(11
|
)
|
|
—
|
|
|||
Outstanding net asset (liability) as of March 31, 2015
|
|
$
|
(148
|
)
|
|
$
|
1
|
|
|
$
|
(147
|
)
|
|
|
|
|
|
|
|
||||||
Outstanding net liability as of January 1, 2014
|
|
$
|
(202
|
)
|
|
$
|
—
|
|
|
$
|
(202
|
)
|
Unrealized gain
|
|
27
|
|
|
4
|
|
|
31
|
|
|||
Settlements
|
|
(10
|
)
|
|
(1
|
)
|
|
(11
|
)
|
|||
Outstanding net asset (liability) as of March 31, 2014
|
|
$
|
(185
|
)
|
|
$
|
3
|
|
|
$
|
(182
|
)
|
•
|
Continuing the current base distribution rate freeze through May 31, 2016;
|
•
|
Continues collection of lost distribution revenues associated with energy efficiency and peak demand reduction programs;
|
•
|
Continuing to provide economic development and assistance to low-income customers for the
two
-year plan period at levels established in the prior ESP;
|
•
|
A
6%
generation rate 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);
|
•
|
Continuing to provide power to non-shopping customers at a market-based price set through an auction process;
|
•
|
Continuing Rider DCR that allows continued investment in the distribution system for the benefit of customers;
|
•
|
Continuing commitment not to recover from retail customers certain costs related to transmission cost allocations for the longer of the
five
-year period from June 1, 2011 through May 31, 2016 or when the amount of costs avoided by customers for certain types of products totals
$360 million
, subject to the outcome of certain FERC proceedings;
|
•
|
Securing generation supply for a longer period of time by conducting an auction for a
three
-year period rather than a
one
-year period, in each of October 2012 and January 2013, to mitigate any potential price spikes for the Ohio Companies' utility customers who do not switch to a competitive generation supplier; and
|
•
|
Extending the recovery period for costs associated with purchasing RECs mandated by SB221, Ohio's renewable energy and energy efficiency standard, through the end of the new ESP 3 period.
This is expected to initially reduce the monthly renewable energy charge for all non-shopping utility customers of the Ohio Companies by spreading out the costs over the entire ESP period.
|
•
|
Continuing a base distribution rate freeze through May 31, 2019;
|
•
|
Continuing collection of lost distribution revenues associated with energy efficiency and peak demand reduction programs;
|
•
|
Providing economic development and assistance to low-income customers for the three-year plan period;
|
•
|
An Economic Stability Program providing for a retail rate stability rider to flow through charges or credits representing the net result of the costs paid to FES through a proposed 15-year purchase power agreement for the output of Sammis, Davis-Besse and FES’ share of OVEC against the revenues received from selling the output into the PJM markets over the same period;
|
•
|
Continuing to provide power to non-shopping customers at a market-based price set through an auction process;
|
•
|
Continuing Rider DCR with increased revenue caps of approximately
$30 million
per year that allows continued investment supporting the distribution system for the benefit of customers;
|
•
|
A commitment not to recover from retail customers certain costs related to transmission cost allocations for the longer of the
five
-year period from June 1, 2011 through May 31, 2016 or when the amount of such costs avoided by customers for certain types of products totals
$360 million
, including appropriately such costs from MISO along with such costs from PJM, subject to the outcome of certain FERC proceedings; and
|
•
|
General updates to electric service regulations and tariffs to reflect regulatory orders, administrative rule changes, and current practices.
|
Collateral Provisions
|
|
FES
|
|
AE Supply
|
|
Utilities
|
|
Total
|
||||||||
|
|
(In millions)
|
||||||||||||||
Split Rating (One rating agency's rating below investment grade)
|
|
$
|
427
|
|
|
$
|
6
|
|
|
$
|
43
|
|
|
$
|
476
|
|
BB+/Ba1 Credit Ratings
|
|
$
|
465
|
|
|
$
|
6
|
|
|
$
|
43
|
|
|
$
|
514
|
|
Full impact of credit contingent contractual obligations
|
|
$
|
583
|
|
|
$
|
50
|
|
|
$
|
78
|
|
|
$
|
711
|
|
FIRSTENERGY SOLUTIONS CORP.
|
||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the Three Months Ended March 31, 2015
|
|
FES
|
|
FG
|
|
NG
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUES
|
|
$
|
1,332
|
|
|
$
|
493
|
|
|
$
|
507
|
|
|
$
|
(955
|
)
|
|
$
|
1,377
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fuel
|
|
—
|
|
|
180
|
|
|
50
|
|
|
—
|
|
|
230
|
|
|||||
Purchased power from affiliates
|
|
957
|
|
|
—
|
|
|
68
|
|
|
(955
|
)
|
|
70
|
|
|||||
Purchased power from non-affiliates
|
|
543
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
543
|
|
|||||
Other operating expenses
|
|
180
|
|
|
67
|
|
|
154
|
|
|
12
|
|
|
413
|
|
|||||
Provision for depreciation
|
|
3
|
|
|
30
|
|
|
48
|
|
|
(1
|
)
|
|
80
|
|
|||||
General taxes
|
|
15
|
|
|
8
|
|
|
6
|
|
|
—
|
|
|
29
|
|
|||||
Total operating expenses
|
|
1,698
|
|
|
285
|
|
|
326
|
|
|
(944
|
)
|
|
1,365
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME (LOSS)
|
|
(366
|
)
|
|
208
|
|
|
181
|
|
|
(11
|
)
|
|
12
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on debt redemptions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Investment income, including net income from equity investees
|
|
241
|
|
|
3
|
|
|
14
|
|
|
(245
|
)
|
|
13
|
|
|||||
Interest expense — affiliates
|
|
(6
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
7
|
|
|
(2
|
)
|
|||||
Interest expense — other
|
|
(13
|
)
|
|
(26
|
)
|
|
(13
|
)
|
|
15
|
|
|
(37
|
)
|
|||||
Capitalized interest
|
|
—
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
9
|
|
|||||
Total other income (expense)
|
|
222
|
|
|
(24
|
)
|
|
8
|
|
|
(223
|
)
|
|
(17
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
INCOME (LOSS) BEFORE INCOME TAXES (BENEFITS)
|
|
(144
|
)
|
|
184
|
|
|
189
|
|
|
(234
|
)
|
|
(5
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
INCOME TAXES (BENEFITS)
|
|
(141
|
)
|
|
67
|
|
|
70
|
|
|
2
|
|
|
(2
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
NET INCOME (LOSS)
|
|
$
|
(3
|
)
|
|
$
|
117
|
|
|
$
|
119
|
|
|
$
|
(236
|
)
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
NET INCOME (LOSS)
|
|
$
|
(3
|
)
|
|
$
|
117
|
|
|
$
|
119
|
|
|
$
|
(236
|
)
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
OTHER COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Pension and OPEB prior service costs
|
|
(4
|
)
|
|
(4
|
)
|
|
3
|
|
|
1
|
|
|
(4
|
)
|
|||||
Amortized gain on derivative hedges
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Change in unrealized gain on available-for-sale securities
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Other comprehensive income (loss)
|
|
(2
|
)
|
|
(4
|
)
|
|
3
|
|
|
1
|
|
|
(2
|
)
|
|||||
Income taxes (benefits) on other comprehensive loss
|
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
|
(1
|
)
|
|
(3
|
)
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
(4
|
)
|
|
$
|
114
|
|
|
$
|
121
|
|
|
$
|
(235
|
)
|
|
$
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
FIRSTENERGY SOLUTIONS CORP.
|
||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the Three Months Ended March 31, 2014
|
|
FES
|
|
FG
|
|
NG
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUES
|
|
$
|
1,797
|
|
|
$
|
315
|
|
|
$
|
362
|
|
|
$
|
(645
|
)
|
|
$
|
1,829
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fuel
|
|
—
|
|
|
272
|
|
|
47
|
|
|
—
|
|
|
319
|
|
|||||
Purchased power from affiliates
|
|
645
|
|
|
—
|
|
|
64
|
|
|
(645
|
)
|
|
64
|
|
|||||
Purchased power from non-affiliates
|
|
1,025
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
1,029
|
|
|||||
Other operating expenses
|
|
228
|
|
|
62
|
|
|
150
|
|
|
12
|
|
|
452
|
|
|||||
Provision for depreciation
|
|
2
|
|
|
29
|
|
|
43
|
|
|
—
|
|
|
74
|
|
|||||
General taxes
|
|
21
|
|
|
11
|
|
|
7
|
|
|
—
|
|
|
39
|
|
|||||
Total operating expenses
|
|
1,921
|
|
|
378
|
|
|
311
|
|
|
(633
|
)
|
|
1,977
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME (LOSS)
|
|
(124
|
)
|
|
(63
|
)
|
|
51
|
|
|
(12
|
)
|
|
(148
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on debt redemption
|
|
(3
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Investment income, including net income from equity investees
|
|
104
|
|
|
1
|
|
|
21
|
|
|
(106
|
)
|
|
20
|
|
|||||
Interest expense — affiliates
|
|
(3
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
3
|
|
|
(2
|
)
|
|||||
Interest expense — other
|
|
(14
|
)
|
|
(24
|
)
|
|
(13
|
)
|
|
15
|
|
|
(36
|
)
|
|||||
Capitalized interest
|
|
—
|
|
|
1
|
|
|
11
|
|
|
—
|
|
|
12
|
|
|||||
Total other income (expense)
|
|
84
|
|
|
(24
|
)
|
|
17
|
|
|
(88
|
)
|
|
(11
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (BENEFITS)
|
|
(40
|
)
|
|
(87
|
)
|
|
68
|
|
|
(100
|
)
|
|
(159
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME TAXES (BENEFITS)
|
|
(52
|
)
|
|
(31
|
)
|
|
26
|
|
|
1
|
|
|
(56
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
|
12
|
|
|
(56
|
)
|
|
42
|
|
|
(101
|
)
|
|
(103
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Discontinued operations (net of income taxes of $70) (Note 13)
|
|
—
|
|
|
116
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
$
|
12
|
|
|
$
|
60
|
|
|
$
|
42
|
|
|
$
|
(101
|
)
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME
|
|
$
|
12
|
|
|
$
|
60
|
|
|
$
|
42
|
|
|
$
|
(101
|
)
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pension and OPEB prior service costs
|
|
(5
|
)
|
|
(4
|
)
|
|
—
|
|
|
4
|
|
|
(5
|
)
|
|||||
Amortized gain on derivative hedges
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Change in unrealized gain on available for sale securities
|
|
19
|
|
|
—
|
|
|
19
|
|
|
(19
|
)
|
|
19
|
|
|||||
Other comprehensive income (loss)
|
|
12
|
|
|
(4
|
)
|
|
19
|
|
|
(15
|
)
|
|
12
|
|
|||||
Income taxes (benefits) on other comprehensive income (loss)
|
|
4
|
|
|
(2
|
)
|
|
7
|
|
|
(5
|
)
|
|
4
|
|
|||||
Other comprehensive income (loss), net of tax
|
|
8
|
|
|
(2
|
)
|
|
12
|
|
|
(10
|
)
|
|
8
|
|
|||||
COMPREHENSIVE INCOME
|
|
$
|
20
|
|
|
$
|
58
|
|
|
$
|
54
|
|
|
$
|
(111
|
)
|
|
$
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2015
|
|
FES
|
|
FG
|
|
NG
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES
|
|
$
|
(662
|
)
|
|
$
|
222
|
|
|
$
|
545
|
|
|
$
|
—
|
|
|
$
|
105
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
New Financing-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Short-term borrowings, net
|
|
674
|
|
|
—
|
|
|
—
|
|
|
(524
|
)
|
|
150
|
|
|||||
Redemptions and Repayments-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||||
Short-term borrowings, net
|
|
—
|
|
|
(5
|
)
|
|
(28
|
)
|
|
33
|
|
|
—
|
|
|||||
Other
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net cash provided from (used for) financing activities
|
|
657
|
|
|
(7
|
)
|
|
(28
|
)
|
|
(491
|
)
|
|
131
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property additions
|
|
(1
|
)
|
|
(36
|
)
|
|
(82
|
)
|
|
—
|
|
|
(119
|
)
|
|||||
Nuclear fuel
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
(60
|
)
|
|||||
Sales of investment securities held in trusts
|
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
189
|
|
|||||
Purchases of investment securities held in trusts
|
|
—
|
|
|
—
|
|
|
(202
|
)
|
|
—
|
|
|
(202
|
)
|
|||||
Loans to affiliated companies, net
|
|
6
|
|
|
(179
|
)
|
|
(362
|
)
|
|
491
|
|
|
(44
|
)
|
|||||
Net cash provided from (used for) investing activities
|
|
5
|
|
|
(215
|
)
|
|
(517
|
)
|
|
491
|
|
|
(236
|
)
|
|||||
Net change in cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Three Months Ended
|
|
Regulated Distribution
|
|
Regulated Transmission
|
|
Competitive Energy Services
|
|
Corporate/ Other
|
|
Reconciling Adjustments
|
|
Consolidated
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
External revenues
|
|
$
|
2,562
|
|
|
$
|
238
|
|
|
$
|
1,175
|
|
|
$
|
(42
|
)
|
|
$
|
(36
|
)
|
|
$
|
3,897
|
|
Internal revenues
|
|
—
|
|
|
—
|
|
|
260
|
|
|
—
|
|
|
(260
|
)
|
|
—
|
|
||||||
Total revenues
|
|
2,562
|
|
|
238
|
|
|
1,435
|
|
|
(42
|
)
|
|
(296
|
)
|
|
3,897
|
|
||||||
Depreciation
|
|
172
|
|
|
37
|
|
|
96
|
|
|
14
|
|
|
—
|
|
|
319
|
|
||||||
Amortization of regulatory assets, net
|
|
29
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
||||||
Investment income (loss)
|
|
13
|
|
|
—
|
|
|
11
|
|
|
3
|
|
|
(10
|
)
|
|
17
|
|
||||||
Interest expense
|
|
144
|
|
|
39
|
|
|
48
|
|
|
47
|
|
|
1
|
|
|
279
|
|
||||||
Income taxes (benefits)
|
|
122
|
|
|
42
|
|
|
(4
|
)
|
|
(18
|
)
|
|
2
|
|
|
144
|
|
||||||
Income (loss) from continuing operations
|
|
208
|
|
|
72
|
|
|
(9
|
)
|
|
(49
|
)
|
|
—
|
|
|
222
|
|
||||||
Net income (loss)
|
|
208
|
|
|
72
|
|
|
(9
|
)
|
|
(49
|
)
|
|
—
|
|
|
222
|
|
||||||
Total assets
|
|
28,276
|
|
|
6,731
|
|
|
16,733
|
|
|
781
|
|
|
—
|
|
|
52,521
|
|
||||||
Total goodwill
|
|
5,092
|
|
|
526
|
|
|
800
|
|
|
—
|
|
|
—
|
|
|
6,418
|
|
||||||
Property additions
|
|
280
|
|
|
254
|
|
|
126
|
|
|
8
|
|
|
—
|
|
|
668
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
External revenues
|
|
$
|
2,550
|
|
|
$
|
182
|
|
|
$
|
1,522
|
|
|
$
|
(35
|
)
|
|
$
|
(37
|
)
|
|
$
|
4,182
|
|
Internal revenues
|
|
—
|
|
|
—
|
|
|
249
|
|
|
—
|
|
|
(249
|
)
|
|
—
|
|
||||||
Total revenues
|
|
2,550
|
|
|
182
|
|
|
1,771
|
|
|
(35
|
)
|
|
(286
|
)
|
|
4,182
|
|
||||||
Depreciation
|
|
162
|
|
|
30
|
|
|
91
|
|
|
11
|
|
|
—
|
|
|
294
|
|
||||||
Amortization (Deferral) of regulatory assets, net
|
|
(31
|
)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
||||||
Investment income (loss)
|
|
15
|
|
|
—
|
|
|
14
|
|
|
3
|
|
|
(10
|
)
|
|
22
|
|
||||||
Interest expense
|
|
151
|
|
|
25
|
|
|
46
|
|
|
43
|
|
|
—
|
|
|
265
|
|
||||||
Income taxes (benefits)
|
|
125
|
|
|
30
|
|
|
(73
|
)
|
|
(26
|
)
|
|
(8
|
)
|
|
48
|
|
||||||
Income (loss) from continuing operations
|
|
214
|
|
|
51
|
|
|
(124
|
)
|
|
(32
|
)
|
|
13
|
|
|
122
|
|
||||||
Discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
86
|
|
||||||
Net income (loss)
|
|
214
|
|
|
51
|
|
|
(38
|
)
|
|
(32
|
)
|
|
13
|
|
|
208
|
|
||||||
Total assets
|
|
27,742
|
|
|
5,584
|
|
|
17,445
|
|
|
457
|
|
|
—
|
|
|
51,228
|
|
||||||
Total goodwill
|
|
5,092
|
|
|
526
|
|
|
800
|
|
|
—
|
|
|
—
|
|
|
6,418
|
|
||||||
Property additions
|
|
269
|
|
|
217
|
|
|
318
|
|
|
17
|
|
|
—
|
|
|
821
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Implementation of new rates for MP and PE effective February 25, 2015 resulting from the WVPSC's approval of a rate case settlement agreement on February 3, 2015, that will result in recovery of $63 million, annually, for reliability investments, storm damage expenses, and investments in operating improvements and environmental compliance at MP's and PE's regulated, coal-fired power plants in the state.
|
•
|
Implementation of new rates for ME, PN, Penn and WP effective May 3, 2015, resulting from the PPUC’s approval of rate case settlement agreements in April 2015, providing for an increase in annual revenues of approximately $293 million, and approximately $88 million of additional annual operating expenses.
|
•
|
The Ohio Companies' ESP IV,
Powering Ohio’s Progress,
filed in August 2014, with an expected decision in 2015 that would freeze base distribution rates for three years while helping ensure continued availability of more than 3,200 MWs, if approved by the PUCO, of FirstEnergy’s critical baseload generating assets primarily located in the state and serving the long-term energy needs of Ohio customers.
|
•
|
ATSI’s October 2014 rate filing with FERC to request transmission rates using a "forward looking" approach, where transmission rates would be based on estimated costs for the current year with an annual true up. On December 31, 2014, FERC issued an order accepting ATSI's rate filing to become effective January 1, 2015, as requested, subject to refund and the outcome of hearing and settlement proceedings and FERC's inquiry into ATSI's ROE.
|
|
|
Three Months Ended March 31,
|
|
Increase (Decrease)
|
|||||||||||
(In millions, except per share amounts)
|
|
2015
|
|
2014
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
REVENUES:
|
|
$
|
3,897
|
|
|
$
|
4,182
|
|
|
$
|
(285
|
)
|
|
(6.8
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|||||||
Fuel
|
|
513
|
|
|
617
|
|
|
(104
|
)
|
|
(16.9
|
)%
|
|||
Purchased power
|
|
1,113
|
|
|
1,455
|
|
|
(342
|
)
|
|
(23.5
|
)%
|
|||
Other operating expenses
|
|
1,057
|
|
|
1,182
|
|
|
(125
|
)
|
|
(10.6
|
)%
|
|||
Provision for depreciation
|
|
319
|
|
|
294
|
|
|
25
|
|
|
8.5
|
%
|
|||
Amortization (deferral) of regulatory assets, net
|
|
32
|
|
|
(28
|
)
|
|
60
|
|
|
214.3
|
%
|
|||
General taxes
|
|
269
|
|
|
271
|
|
|
(2
|
)
|
|
(0.7
|
)%
|
|||
Total operating expenses
|
|
3,303
|
|
|
3,791
|
|
|
(488
|
)
|
|
(12.9
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
OPERATING INCOME
|
|
594
|
|
|
391
|
|
|
203
|
|
|
51.9
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|||||||
Loss on debt redemptions
|
|
—
|
|
|
(7
|
)
|
|
7
|
|
|
100.0
|
%
|
|||
Investment income
|
|
17
|
|
|
22
|
|
|
(5
|
)
|
|
(22.7
|
)%
|
|||
Interest expense
|
|
(279
|
)
|
|
(265
|
)
|
|
(14
|
)
|
|
(5.3
|
)%
|
|||
Capitalized financing costs
|
|
34
|
|
|
29
|
|
|
5
|
|
|
17.2
|
%
|
|||
Total other expense
|
|
(228
|
)
|
|
(221
|
)
|
|
(7
|
)
|
|
(3.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
366
|
|
|
170
|
|
|
196
|
|
|
115.3
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
INCOME TAXES
|
|
144
|
|
|
48
|
|
|
96
|
|
|
200.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
INCOME FROM CONTINUING OPERATIONS
|
|
222
|
|
|
122
|
|
|
100
|
|
|
82.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Discontinued operations (net of income taxes of $69) (Note 13)
|
|
—
|
|
|
86
|
|
|
(86
|
)
|
|
(100.0
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
NET INCOME
|
|
$
|
222
|
|
|
$
|
208
|
|
|
$
|
14
|
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
EARNINGS PER SHARE OF COMMON STOCK:
|
|
|
|
|
|
|
|
|
|||||||
Basic - Continuing Operations
|
|
$
|
0.53
|
|
|
$
|
0.29
|
|
|
$
|
0.24
|
|
|
82.8
|
%
|
Basic - Discontinued Operations (Note 13)
|
|
—
|
|
|
0.21
|
|
|
(0.21
|
)
|
|
(100.0
|
)%
|
|||
Basic - Net Earnings per Basic Share
|
|
$
|
0.53
|
|
|
$
|
0.50
|
|
|
$
|
0.03
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted - Continuing Operations
|
|
$
|
0.53
|
|
|
$
|
0.29
|
|
|
$
|
0.24
|
|
|
82.8
|
%
|
Diluted - Discontinued Operations (Note 13)
|
|
—
|
|
|
0.20
|
|
|
(0.20
|
)
|
|
(100.0
|
)%
|
|||
Diluted - Net Earnings per Diluted Share
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
|
$
|
0.04
|
|
|
8.2
|
%
|
First Quarter 2015 Financial Results
|
|
Regulated Distribution
|
|
Regulated Transmission
|
|
Competitive
Energy Services |
|
Corporate/Other and Reconciling Adjustments
|
|
FirstEnergy Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
External
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Electric
|
|
$
|
2,517
|
|
|
$
|
238
|
|
|
$
|
1,125
|
|
|
$
|
(45
|
)
|
|
$
|
3,835
|
|
Other
|
|
45
|
|
|
—
|
|
|
50
|
|
|
(33
|
)
|
|
62
|
|
|||||
Internal
|
|
—
|
|
|
—
|
|
|
260
|
|
|
(260
|
)
|
|
—
|
|
|||||
Total Revenues
|
|
2,562
|
|
|
238
|
|
|
1,435
|
|
|
(338
|
)
|
|
3,897
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fuel
|
|
146
|
|
|
—
|
|
|
367
|
|
|
—
|
|
|
513
|
|
|||||
Purchased power
|
|
975
|
|
|
—
|
|
|
398
|
|
|
(260
|
)
|
|
1,113
|
|
|||||
Other operating expenses
|
|
597
|
|
|
35
|
|
|
519
|
|
|
(94
|
)
|
|
1,057
|
|
|||||
Provision for depreciation
|
|
172
|
|
|
37
|
|
|
96
|
|
|
14
|
|
|
319
|
|
|||||
Amortization of regulatory assets, net
|
|
29
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||
General taxes
|
|
190
|
|
|
24
|
|
|
41
|
|
|
14
|
|
|
269
|
|
|||||
Total Operating Expenses
|
|
2,109
|
|
|
99
|
|
|
1,421
|
|
|
(326
|
)
|
|
3,303
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income
|
|
453
|
|
|
139
|
|
|
14
|
|
|
(12
|
)
|
|
594
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on debt redemptions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Investment income
|
|
13
|
|
|
—
|
|
|
11
|
|
|
(7
|
)
|
|
17
|
|
|||||
Interest expense
|
|
(144
|
)
|
|
(39
|
)
|
|
(48
|
)
|
|
(48
|
)
|
|
(279
|
)
|
|||||
Capitalized financing costs
|
|
8
|
|
|
14
|
|
|
10
|
|
|
2
|
|
|
34
|
|
|||||
Total Other Expense
|
|
(123
|
)
|
|
(25
|
)
|
|
(27
|
)
|
|
(53
|
)
|
|
(228
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (Loss) Before Income Taxes (Benefits)
|
|
330
|
|
|
114
|
|
|
(13
|
)
|
|
(65
|
)
|
|
366
|
|
|||||
Income taxes (benefits)
|
|
122
|
|
|
42
|
|
|
(4
|
)
|
|
(16
|
)
|
|
144
|
|
|||||
Income (Loss) From Continuing Operations
|
|
208
|
|
|
72
|
|
|
(9
|
)
|
|
(49
|
)
|
|
222
|
|
|||||
Discontinued Operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net Income (Loss)
|
|
$
|
208
|
|
|
$
|
72
|
|
|
$
|
(9
|
)
|
|
$
|
(49
|
)
|
|
$
|
222
|
|
First Quarter 2014 Financial Results
|
|
Regulated Distribution
|
|
Regulated Transmission
|
|
Competitive
Energy Services |
|
Corporate/Other and Reconciling Adjustments
|
|
FirstEnergy Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
External
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Electric
|
|
$
|
2,501
|
|
|
$
|
182
|
|
|
$
|
1,474
|
|
|
$
|
(56
|
)
|
|
$
|
4,101
|
|
Other
|
|
49
|
|
|
—
|
|
|
48
|
|
|
(16
|
)
|
|
81
|
|
|||||
Internal
|
|
—
|
|
|
—
|
|
|
249
|
|
|
(249
|
)
|
|
—
|
|
|||||
Total Revenues
|
|
2,550
|
|
|
182
|
|
|
1,771
|
|
|
(321
|
)
|
|
4,182
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fuel
|
|
153
|
|
|
—
|
|
|
464
|
|
|
—
|
|
|
617
|
|
|||||
Purchased power
|
|
981
|
|
|
—
|
|
|
723
|
|
|
(249
|
)
|
|
1,455
|
|
|||||
Other operating expenses
|
|
627
|
|
|
34
|
|
|
609
|
|
|
(88
|
)
|
|
1,182
|
|
|||||
Provision for depreciation
|
|
162
|
|
|
30
|
|
|
91
|
|
|
11
|
|
|
294
|
|
|||||
Amortization (deferral) of regulatory assets, net
|
|
(31
|
)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||
General taxes
|
|
187
|
|
|
17
|
|
|
54
|
|
|
13
|
|
|
271
|
|
|||||
Total Operating Expenses
|
|
2,079
|
|
|
84
|
|
|
1,941
|
|
|
(313
|
)
|
|
3,791
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income (Loss)
|
|
471
|
|
|
98
|
|
|
(170
|
)
|
|
(8
|
)
|
|
391
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on debt redemptions
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Investment income
|
|
15
|
|
|
—
|
|
|
14
|
|
|
(7
|
)
|
|
22
|
|
|||||
Interest expense
|
|
(151
|
)
|
|
(25
|
)
|
|
(46
|
)
|
|
(43
|
)
|
|
(265
|
)
|
|||||
Capitalized financing costs
|
|
4
|
|
|
8
|
|
|
12
|
|
|
5
|
|
|
29
|
|
|||||
Total Other Expense
|
|
(132
|
)
|
|
(17
|
)
|
|
(27
|
)
|
|
(45
|
)
|
|
(221
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (Loss) From Continuing Operations Before Income Taxes (Benefits)
|
|
339
|
|
|
81
|
|
|
(197
|
)
|
|
(53
|
)
|
|
170
|
|
|||||
Income taxes (benefits)
|
|
125
|
|
|
30
|
|
|
(73
|
)
|
|
(34
|
)
|
|
48
|
|
|||||
Income (Loss) From Continuing Operations
|
|
214
|
|
|
51
|
|
|
(124
|
)
|
|
(19
|
)
|
|
122
|
|
|||||
Discontinued Operations, net of tax
|
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|
86
|
|
|||||
Net Income (Loss)
|
|
$
|
214
|
|
|
$
|
51
|
|
|
$
|
(38
|
)
|
|
$
|
(19
|
)
|
|
$
|
208
|
|
Changes Between First Quarter 2015 and First Quarter 2014 Financial Results
Increase (Decrease)
|
|
Regulated Distribution
|
|
Regulated Transmission
|
|
Competitive
Energy Services |
|
Corporate/Other and Reconciling Adjustments
|
|
FirstEnergy Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
External
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Electric
|
|
$
|
16
|
|
|
$
|
56
|
|
|
$
|
(349
|
)
|
|
$
|
11
|
|
|
$
|
(266
|
)
|
Other
|
|
(4
|
)
|
|
—
|
|
|
2
|
|
|
(17
|
)
|
|
(19
|
)
|
|||||
Internal
|
|
—
|
|
|
—
|
|
|
11
|
|
|
(11
|
)
|
|
—
|
|
|||||
Total Revenues
|
|
12
|
|
|
56
|
|
|
(336
|
)
|
|
(17
|
)
|
|
(285
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fuel
|
|
(7
|
)
|
|
—
|
|
|
(97
|
)
|
|
—
|
|
|
(104
|
)
|
|||||
Purchased power
|
|
(6
|
)
|
|
—
|
|
|
(325
|
)
|
|
(11
|
)
|
|
(342
|
)
|
|||||
Other operating expenses
|
|
(30
|
)
|
|
1
|
|
|
(90
|
)
|
|
(6
|
)
|
|
(125
|
)
|
|||||
Provision for depreciation
|
|
10
|
|
|
7
|
|
|
5
|
|
|
3
|
|
|
25
|
|
|||||
Amortization of regulatory assets, net
|
|
60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|||||
General taxes
|
|
3
|
|
|
7
|
|
|
(13
|
)
|
|
1
|
|
|
(2
|
)
|
|||||
Total Operating Expenses
|
|
30
|
|
|
15
|
|
|
(520
|
)
|
|
(13
|
)
|
|
(488
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income (Loss)
|
|
(18
|
)
|
|
41
|
|
|
184
|
|
|
(4
|
)
|
|
203
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on debt redemptions
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||
Investment income
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Interest expense
|
|
7
|
|
|
(14
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(14
|
)
|
|||||
Capitalized financing costs
|
|
4
|
|
|
6
|
|
|
(2
|
)
|
|
(3
|
)
|
|
5
|
|
|||||
Total Other Income (Expense)
|
|
9
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|
(7
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (Loss) From Continuing Operations Before Income Taxes (Benefits)
|
|
(9
|
)
|
|
33
|
|
|
184
|
|
|
(12
|
)
|
|
196
|
|
|||||
Income taxes (benefits)
|
|
(3
|
)
|
|
12
|
|
|
69
|
|
|
18
|
|
|
96
|
|
|||||
Income (Loss) From Continuing Operations
|
|
(6
|
)
|
|
21
|
|
|
115
|
|
|
(30
|
)
|
|
100
|
|
|||||
Discontinued Operations, net of tax
|
|
—
|
|
|
—
|
|
|
(86
|
)
|
|
—
|
|
|
(86
|
)
|
|||||
Net Income (loss)
|
|
$
|
(6
|
)
|
|
$
|
21
|
|
|
$
|
29
|
|
|
$
|
(30
|
)
|
|
$
|
14
|
|
|
|
Three Months Ended March 31,
|
|
Increase
|
||||||||
Revenues by Type of Service
|
|
2015
|
|
2014
|
|
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Distribution services
|
|
$
|
1,027
|
|
|
$
|
983
|
|
|
$
|
44
|
|
|
|
|
|
|
|
|
||||||
Generation sales:
|
|
|
|
|
|
|
||||||
Retail
|
|
1,180
|
|
|
1,105
|
|
|
75
|
|
|||
Wholesale
|
|
145
|
|
|
253
|
|
|
(108
|
)
|
|||
Total generation sales
|
|
1,325
|
|
|
1,358
|
|
|
(33
|
)
|
|||
|
|
|
|
|
|
|
||||||
Transmission
|
|
165
|
|
|
160
|
|
|
5
|
|
|||
Other
|
|
45
|
|
|
49
|
|
|
(4
|
)
|
|||
Total Revenues
|
|
$
|
2,562
|
|
|
$
|
2,550
|
|
|
$
|
12
|
|
|
|
Three Months Ended March 31,
|
|
|
|||||
Electric Distribution MWH Deliveries
|
|
2015
|
|
2014
|
|
Increase
|
|||
|
|
(In thousands)
|
|
|
|||||
Residential
|
|
16,562
|
|
|
16,570
|
|
|
—
|
%
|
Commercial
|
|
11,132
|
|
|
11,028
|
|
|
0.9
|
%
|
Industrial
|
|
12,740
|
|
|
12,700
|
|
|
0.3
|
%
|
Other
|
|
147
|
|
|
144
|
|
|
2.1
|
%
|
Total Electric Distribution MWH Deliveries
|
|
40,581
|
|
|
40,442
|
|
|
0.3
|
%
|
Source of Change in Generation Revenues
|
|
Increase (Decrease)
|
||
|
|
(In millions)
|
||
Retail:
|
|
|
|
|
Effect of increase in sales volumes
|
|
$
|
70
|
|
Change in prices
|
|
5
|
|
|
|
|
75
|
|
|
Wholesale:
|
|
|
||
Effect of decrease in sales volumes
|
|
(88
|
)
|
|
Change in prices
|
|
(41
|
)
|
|
Capacity Revenue
|
|
21
|
|
|
|
|
(108
|
)
|
|
Decrease in Generation Revenues
|
|
$
|
(33
|
)
|
•
|
Fuel expense decreased
$7 million
in the first quarter of 2015 primarily related to decreased production associated with outages and lower wholesale spot energy prices.
|
•
|
Purchased power costs were
$6 million
lower in the first quarter of 2015 primarily due to decreased purchases resulting from the termination of certain NUG contracts at JCP&L and PN partially offset by higher capacity expenses at MP.
|
Source of Change in Purchased Power
|
|
Increase(Decrease)
|
|||
|
|
(In millions)
|
|||
Purchases from non-affiliates:
|
|
|
|||
Change due to decreased unit costs
|
|
$
|
(6
|
)
|
|
Change due to decreased volumes
|
|
(33
|
)
|
||
|
|
(39
|
)
|
||
Purchases from affiliates:
|
|
|
|||
Change due to decreased unit costs
|
|
(3
|
)
|
||
Change due to increased volumes
|
|
13
|
|
||
|
|
10
|
|
||
Capacity Expense
|
|
20
|
|
||
Decrease in costs deferred
|
|
3
|
|
||
Decrease in Purchased Power Costs
|
|
$
|
(6
|
)
|
•
|
Other operating expenses decreased
$30 million
primarily due to:
|
•
|
Lower transmission expenses of $45 million primarily due to PJM transmission costs associated with higher congestion rates at MP as a result of market conditions related to extreme weather events in January of 2014 partially offset by increases in network transmission expenses at the Ohio Companies. The difference between current transmission revenues and transmission costs incurred are deferred for future recovery, resulting in no material impact on current period earnings.
|
•
|
Decreased regulated generation operating and maintenance expenses of $3 million, reflecting lower forced and maintenance outage expense at the Harrison plant.
|
•
|
Higher operating and maintenance expense of $18 million associated with increased benefit costs and increased vegetation management expenses in West Virginia, which are recovered through the vegetation management surcharge effective February 25, 2015, partially offset by lower storm costs.
|
•
|
Depreciation expense increased
$10 million
due to a higher asset base.
|
•
|
Net amortization of regulatory assets increased
$60 million
primarily due to the recovery of higher default generation service costs, above market NUG costs and energy efficiency program costs, as well as a lower deferral of storm costs, partially offset by an increased deferral of West Virginia vegetation management expenses.
|
•
|
General taxes increased
$3 million
primarily due to revenue related taxes in Pennsylvania.
|
|
|
Three Months Ended March 31,
|
|
|
||||||||
Revenues by Transmission Asset Owner
|
|
2015
|
|
2014
|
|
Increase
|
||||||
|
|
(In millions)
|
||||||||||
ATSI
|
|
$
|
96
|
|
|
$
|
53
|
|
|
$
|
43
|
|
TrAIL
|
|
61
|
|
|
51
|
|
|
10
|
|
|||
PATH
|
|
4
|
|
|
4
|
|
|
—
|
|
|||
Utilities
|
|
77
|
|
|
74
|
|
|
3
|
|
|||
Total Revenues
|
|
$
|
238
|
|
|
$
|
182
|
|
|
$
|
56
|
|
|
|
Three Months Ended March 31,
|
|
Increase (Decrease)
|
||||||||
Revenues by Type of Service
|
|
2015
|
|
2014
|
|
|||||||
|
|
(In millions)
|
||||||||||
Contract Sales:
|
|
|
|
|
|
|
||||||
Direct
|
|
$
|
393
|
|
|
$
|
713
|
|
|
$
|
(320
|
)
|
Governmental Aggregation
|
|
288
|
|
|
320
|
|
|
(32
|
)
|
|||
Mass Market
|
|
98
|
|
|
142
|
|
|
(44
|
)
|
|||
POLR
|
|
275
|
|
|
272
|
|
|
3
|
|
|||
Structured Sales
|
|
133
|
|
|
91
|
|
|
42
|
|
|||
Total Contract Sales
|
|
1,187
|
|
|
1,538
|
|
|
(351
|
)
|
|||
Wholesale
|
|
132
|
|
|
67
|
|
|
65
|
|
|||
Transmission
|
|
66
|
|
|
118
|
|
|
(52
|
)
|
|||
Other
|
|
50
|
|
|
48
|
|
|
2
|
|
|||
Total Revenues
|
|
$
|
1,435
|
|
|
$
|
1,771
|
|
|
$
|
(336
|
)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Increase (Decrease)
|
|||||
MWH Sales by Channel
|
|
2015
|
|
2014
|
|
||||
|
|
(In thousands)
|
|||||||
Contract Sales:
|
|
|
|
|
|
|
|||
Direct
|
|
7,249
|
|
|
12,841
|
|
|
(43.5
|
)%
|
Governmental Aggregation
|
|
4,598
|
|
|
5,769
|
|
|
(20.3
|
)%
|
Mass Market
|
|
1,435
|
|
|
2,126
|
|
|
(32.5
|
)%
|
POLR
|
|
4,822
|
|
|
4,827
|
|
|
(0.1
|
)%
|
Structured Sales
|
|
3,089
|
|
|
3,345
|
|
|
(7.7
|
)%
|
Total Contract Sales
|
|
21,193
|
|
|
28,908
|
|
|
(26.7
|
)%
|
Wholesale
|
|
63
|
|
|
11
|
|
|
472.7
|
%
|
Total MWH Sales
|
|
21,256
|
|
|
28,919
|
|
|
(26.5
|
)%
|
|
|
|
|
|
|
|
|
|
Source of Change in Revenues
|
||||||||||||||||||
|
|
Increase (Decrease)
|
||||||||||||||||||
MWH Sales Channel:
|
|
Sales Volumes
|
|
Prices
|
|
Gain on Settled Contracts
|
|
Capacity Revenue
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Direct
|
|
$
|
(311
|
)
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(320
|
)
|
Governmental Aggregation
|
|
(65
|
)
|
|
33
|
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|||||
Mass Market
|
|
(46
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|||||
POLR
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Structured Sales
|
|
(7
|
)
|
|
49
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Wholesale
|
|
7
|
|
|
(4
|
)
|
|
(1
|
)
|
|
63
|
|
|
65
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
•
|
Fuel costs decreased
$97 million
primarily due to lower volumes associated with increased planned fossil plant outages and lower wholesale spot energy prices, partially offset by an increase in nuclear generation resulting from fewer refueling and forced outage days. Lower nuclear unit prices also contributed to the decrease, resulting from the suspended DOE spent nuclear fuel fee, which was effective May 16, 2014. Additionally, fuel costs were impacted by a decrease in settlement and termination costs related to coal contracts. Terminations and settlements of coal contracts were approximately $11 million and $18 million, respectively, in the first quarter of 2015 and 2014.
|
•
|
Purchased power costs decreased
$325 million
due to lower volumes ($373 million) resulting from lower contract sales and lower prices ($17 million), partially offset by higher capacity expenses ($65 million). The decrease in unit prices was primarily a result of the market conditions associated with the extreme weather events in January 2014, partially offset by lower net gains on financially settled contracts. Lower volumes were primarily due to fewer unplanned outages and decreased load requirements, partially offset by decreased fossil generation discussed above. The increase in capacity expense, which is a component of CES' retail price, was primarily the result of higher capacity rates associated with CES' retail sales obligations.
|
•
|
Fossil operating costs increased $12 million primarily due to costs associated with additional planned outages for the three months ended March 31, 2015 as compared to the same period of 2014.
|
•
|
Nuclear operating costs increased $7 million as a result of higher costs associated with the refueling outage at Perry that began on March 9, 2015, partially offset by refueling outage costs at Davis-Besse in the first quarter of 2014.
|
•
|
Transmission expenses decreased $110 million primarily due to lower operating reserve and market-based ancillary costs associated with market conditions related to extreme weather events in January 2014, of which a portion were passed through to commercial and industrial customers, as discussed above.
|
•
|
General taxes decreased
$13 million
primarily due to lower gross receipts taxes associated with decreased retail sales volumes and lower property taxes.
|
•
|
Depreciation expense increased
$5 million
as a result of a higher asset base from projects such as MATS compliance and the Davis-Besse steam generator replacement completed in mid-2014.
|
•
|
Other operating expenses increased $1 million primarily due to an $18 million increase in mark-to-market expenses on commodity contract positions, partially offset by a $17 million decrease in retail-related costs.
|
Regulatory Assets (Liabilities) by Source
|
|
March 31,
2015 |
|
December 31,
2014 |
|
Increase
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Regulatory transition costs
|
|
$
|
226
|
|
|
$
|
240
|
|
|
$
|
(14
|
)
|
Customer receivables for future income taxes
|
|
370
|
|
|
370
|
|
|
—
|
|
|||
Nuclear decommissioning and spent fuel disposal costs
|
|
(303
|
)
|
|
(305
|
)
|
|
2
|
|
|||
Asset removal costs
|
|
(253
|
)
|
|
(254
|
)
|
|
1
|
|
|||
Deferred transmission costs
|
|
94
|
|
|
90
|
|
|
4
|
|
|||
Deferred generation costs
|
|
276
|
|
|
281
|
|
|
(5
|
)
|
|||
Deferred distribution costs
|
|
179
|
|
|
182
|
|
|
(3
|
)
|
|||
Contract valuations
|
|
151
|
|
|
153
|
|
|
(2
|
)
|
|||
Storm-related costs
|
|
462
|
|
|
465
|
|
|
(3
|
)
|
|||
Other
|
|
170
|
|
|
189
|
|
|
(19
|
)
|
|||
Net Regulatory Assets included on the Consolidated Balance Sheets
|
|
$
|
1,372
|
|
|
$
|
1,411
|
|
|
$
|
(39
|
)
|
Currently Payable Long-Term Debt
|
|
(In millions)
|
||
PCRBs supported by bank LOCs
(1)
|
|
$
|
92
|
|
FMBs
|
|
215
|
|
|
Unsecured PCRBs
(1)
|
|
313
|
|
|
Collateralized lease obligation bonds
|
|
78
|
|
|
Sinking fund requirements
|
|
85
|
|
|
Other notes
|
|
4
|
|
|
|
|
$
|
787
|
|
(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.
|
Borrower(s)
|
|
Type
|
|
Maturity
|
|
Commitment
|
|
Available Liquidity
|
||||
|
|
|
|
|
|
(In millions)
|
||||||
FirstEnergy
(1)
|
|
Revolving
|
|
March 2019
|
|
$
|
3,500
|
|
|
$
|
1,269
|
|
FES / AE Supply
|
|
Revolving
|
|
March 2019
|
|
1,500
|
|
|
1,177
|
|
||
FET
(2)
|
|
Revolving
|
|
March 2019
|
|
1,000
|
|
|
950
|
|
||
|
|
|
|
Subtotal
|
|
$
|
6,000
|
|
|
$
|
3,396
|
|
|
|
|
|
Cash
|
|
—
|
|
|
48
|
|
||
|
|
|
|
Total
|
|
$
|
6,000
|
|
|
$
|
3,444
|
|
(1)
|
FE and the Utilities.
|
(2)
|
Includes FET, ATSI and TrAIL.
|
Borrower
|
|
FE Revolving
Credit Facility
Sublimit
|
|
FES/AE Supply Revolving
Credit Facility
Sublimit
|
|
FET Revolving
Credit Facility
Sublimit
|
|
Regulatory and
Other Short-Term Debt Limitations
|
|
||||||||||||
|
|
(In millions)
|
|
||||||||||||||||||
FE
|
|
|
$
|
3,500
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
(1)
|
FES
|
|
|
—
|
|
|
|
1,500
|
|
|
|
—
|
|
|
|
—
|
|
(2)
|
||||
AE Supply
|
|
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
—
|
|
(2)
|
||||
FET
|
|
|
—
|
|
|
|
—
|
|
|
|
1,000
|
|
|
|
—
|
|
(1)
|
||||
OE
|
|
|
500
|
|
|
|
—
|
|
|
|
—
|
|
|
|
500
|
|
(3)
|
||||
CEI
|
|
|
500
|
|
|
|
—
|
|
|
|
—
|
|
|
|
500
|
|
(3)
|
||||
TE
|
|
|
500
|
|
|
|
—
|
|
|
|
—
|
|
|
|
500
|
|
(3)
|
||||
JCP&L
|
|
|
600
|
|
|
|
—
|
|
|
|
—
|
|
|
|
850
|
|
(3)
|
||||
ME
|
|
|
300
|
|
|
|
—
|
|
|
|
—
|
|
|
|
500
|
|
(3)
|
||||
PN
|
|
|
300
|
|
|
|
—
|
|
|
|
—
|
|
|
|
300
|
|
(3)
|
||||
WP
|
|
|
200
|
|
|
|
—
|
|
|
|
—
|
|
|
|
200
|
|
(3)
|
||||
MP
|
|
|
500
|
|
|
|
—
|
|
|
|
—
|
|
|
|
500
|
|
(3)
|
||||
PE
|
|
|
150
|
|
|
|
—
|
|
|
|
—
|
|
|
|
150
|
|
(3)
|
||||
ATSI
|
|
|
—
|
|
|
|
—
|
|
|
|
500
|
|
|
|
500
|
|
(3)
|
||||
Penn
|
|
|
50
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50
|
|
(3)
|
||||
TrAIL
|
|
|
—
|
|
|
|
—
|
|
|
|
400
|
|
|
|
400
|
|
(3)
|
(1)
|
No limitations.
|
(2)
|
No limitation based upon blanket financing authorization from the FERC under existing open market tariffs.
|
(3)
|
Includes amounts which may be borrowed under the regulated companies' money pool.
|
Bank
|
|
Aggregate Amount
(1)
|
|
Termination Date
|
|
Reimbursements of Draws Due
|
||
|
|
(In millions)
|
|
|
|
|
||
The Bank of Nova Scotia
|
|
$
|
92
|
|
|
March 2017
|
|
March 2017
|
(1)
|
Excludes approximately
$1 million
of applicable interest coverage.
|
|
|
Senior Secured
|
|
Senior Unsecured
|
||||||||
Issuer
|
|
S&P
|
|
Moody’s
|
|
Fitch
|
|
S&P
|
|
Moody’s
|
|
Fitch
|
FE
|
|
—
|
|
—
|
|
—
|
|
BB+
|
|
Baa3
|
|
BB+
|
FES
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa3
|
|
—
|
AE Supply
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa3
|
|
—
|
AGC
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa3
|
|
—
|
ATSI
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa2
|
|
—
|
CEI
|
|
BBB+
|
|
Baa1
|
|
—
|
|
BBB-
|
|
Baa3
|
|
—
|
FET
|
|
—
|
|
—
|
|
—
|
|
BB+
|
|
Baa3
|
|
—
|
JCP&L
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa2
|
|
—
|
ME
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa1
|
|
—
|
MP
|
|
BBB+
|
|
A3
|
|
—
|
|
—
|
|
—
|
|
—
|
OE
|
|
BBB+
|
|
A2
|
|
—
|
|
BBB-
|
|
Baa1
|
|
—
|
PN
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
Baa2
|
|
—
|
Penn
|
|
BBB+
|
|
A2
|
|
—
|
|
—
|
|
—
|
|
—
|
PE
|
|
BBB+
|
|
A3
|
|
—
|
|
—
|
|
—
|
|
—
|
TE
|
|
BBB
|
|
Baa1
|
|
—
|
|
—
|
|
—
|
|
—
|
TrAIL
|
|
—
|
|
—
|
|
—
|
|
BBB-
|
|
A3
|
|
—
|
WP
|
|
BBB+
|
|
A2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Three Months Ended March 31,
|
||||||
Securities Issued or Redeemed / Repaid
|
|
2015
|
|
2014
|
||||
|
|
(In millions)
|
||||||
New Issues
|
|
|
|
|
|
|
||
PCRBs
|
|
$
|
—
|
|
|
$
|
417
|
|
Term Loan
|
|
—
|
|
|
1,050
|
|
||
|
|
$
|
—
|
|
|
$
|
1,467
|
|
|
|
|
|
|
||||
Redemptions / Repayments
|
|
|
|
|
|
|
||
PCRBs
|
|
$
|
—
|
|
|
$
|
(444
|
)
|
Senior secured notes
|
|
(48
|
)
|
|
(45
|
)
|
||
|
|
$
|
(48
|
)
|
|
$
|
(489
|
)
|
|
|
|
|
|
||||
Short-term borrowings, net
|
|
$
|
760
|
|
|
$
|
(319
|
)
|
|
|
|
|
|
||||
Common stock dividend payments
|
|
$
|
(152
|
)
|
|
$
|
(151
|
)
|
|
|
Three Months Ended March 31,
|
|
|
||||||||
Cash Used for Investing Activities
|
|
2015
|
|
2014
|
|
Increase (Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Property Additions:
|
|
|
|
|
|
|
||||||
Regulated Distribution
|
|
$
|
280
|
|
|
269
|
|
|
$
|
11
|
|
|
Regulated Transmission
|
|
254
|
|
|
217
|
|
|
37
|
|
|||
Competitive Energy Services
|
|
126
|
|
|
318
|
|
|
(192
|
)
|
|||
Other and reconciling adjustments
|
|
8
|
|
|
17
|
|
|
(9
|
)
|
|||
Nuclear fuel
|
|
60
|
|
|
55
|
|
|
5
|
|
|||
Proceeds from asset sales
|
|
(10
|
)
|
|
(394
|
)
|
|
384
|
|
|||
Investments
|
|
2
|
|
|
(3
|
)
|
|
5
|
|
|||
Asset removal costs
|
|
28
|
|
|
39
|
|
|
(11
|
)
|
|||
Other
|
|
—
|
|
|
(3
|
)
|
|
3
|
|
|||
|
|
$
|
748
|
|
|
$
|
515
|
|
|
$
|
233
|
|
Guarantees and Other Assurances
|
|
Maximum Exposure
|
||
|
|
(In millions)
|
||
FE's Guarantees on Behalf of its Subsidiaries
|
|
|
|
|
Energy and Energy-Related Contracts
(1)
|
|
$
|
74
|
|
Deferred compensation arrangements
|
|
525
|
|
|
Other
(2)
|
|
22
|
|
|
|
|
621
|
|
|
Subsidiaries’ Guarantees
|
|
|
||
Energy and Energy-Related Contracts
(3)
|
|
177
|
|
|
FES’ guarantee of NG’s nuclear property insurance
|
|
88
|
|
|
FES' guarantee of nuclear decommissioning costs
|
|
174
|
|
|
FES’ guarantee of FG’s sale and leaseback obligations
|
|
1,899
|
|
|
|
|
2,338
|
|
|
|
|
|
||
FE's Guarantees on Behalf of Business Ventures
|
|
|
||
Global Holding facility
|
|
300
|
|
|
|
|
|
||
Other Assurances
|
|
|
||
Surety Bonds - Wholly Owned Subsidiaries
|
|
447
|
|
|
Surety Bonds
|
|
24
|
|
|
FES' LOC (long-term tax-exempt debt)
(4)
|
|
93
|
|
|
LOCs
(5)
|
|
165
|
|
|
|
|
729
|
|
|
Total Guarantees and Other Assurances
|
|
$
|
3,988
|
|
(1)
|
Issued for open-ended terms, with a 10-day termination right by FirstEnergy.
|
(2)
|
Includes guarantees of
$4 million
for nuclear decommissioning funding assurances,
$10 million
for railcar leases and $
8 million
for various leases.
|
(3)
|
Includes Energy and Energy-Related Contracts associated with FES of approximately $
173 million
.
|
(4)
|
Reflects the $1 million of interest coverage portion of LOCs issued in support of floating rate PCRBs with maturities in 2017 and the principal amount of floating-rate PCRBs of
$92 million
, all of which is reflected in currently payable long-term debt on FirstEnergy's consolidated balance sheets.
|
(5)
|
Includes
$54 million
issued for various terms pursuant to LOC capacity available under FirstEnergy’s revolving credit facilities, $
88 million
issued in connection with energy and energy related contracts, $
2 million
issued in connection with railcar leases,
$11 million
pledged in connection with the sale and leaseback of Beaver Valley Unit 2 by OE and
$10 million
pledged in connection with the sale and leaseback of Perry by OE.
|
Collateral Provisions
|
|
FES
|
|
AE Supply
|
|
Utilities
|
|
Total
|
||||||||
|
|
(In millions)
|
||||||||||||||
Split Rating (One rating agency's rating below investment grade)
|
|
$
|
427
|
|
|
$
|
6
|
|
|
$
|
43
|
|
|
$
|
476
|
|
BB+/Ba1 Credit Ratings
|
|
$
|
465
|
|
|
$
|
6
|
|
|
$
|
43
|
|
|
$
|
514
|
|
Full impact of credit contingent contractual obligations
|
|
$
|
583
|
|
|
$
|
50
|
|
|
$
|
78
|
|
|
$
|
711
|
|
Source of Information-
Fair Value by Contract Year
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||
Prices actively quoted
(1)
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
Other external sources
(2)
|
|
(45
|
)
|
|
(27
|
)
|
|
(19
|
)
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
(109
|
)
|
|||||||
Prices based on models
|
|
5
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
(19
|
)
|
|
(2
|
)
|
|
(13
|
)
|
|||||||
Total
(3)
|
|
$
|
(48
|
)
|
|
$
|
(25
|
)
|
|
$
|
(18
|
)
|
|
$
|
(18
|
)
|
|
$
|
(19
|
)
|
|
$
|
(2
|
)
|
|
$
|
(130
|
)
|
(1)
|
Represents exchange traded New York Mercantile Exchange futures and options.
|
(2)
|
Primarily represents contracts based on broker and ICE quotes.
|
(3)
|
Includes
$(148) million
in non-hedge derivative contracts related to NUG contracts. NUG contracts are subject to regulatory accounting and do not impact earnings.
|
•
|
Continuing the current base distribution rate freeze through May 31, 2016;
|
•
|
Continues collection of lost distribution revenues associated with energy efficiency and peak demand reduction programs;
|
•
|
Continuing to provide economic development and assistance to low-income customers for the
two
-year plan period at levels established in the prior ESP;
|
•
|
A
6%
generation rate 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);
|
•
|
Continuing to provide power to non-shopping customers at a market-based price set through an auction process;
|
•
|
Continuing Rider DCR that allows continued investment in the distribution system for the benefit of customers;
|
•
|
Continuing commitment not to recover from retail customers certain costs related to transmission cost allocations for the longer of the
five
-year period from June 1, 2011 through May 31, 2016 or when the amount of costs avoided by customers for certain types of products totals
$360 million
, subject to the outcome of certain FERC proceedings;
|
•
|
Securing generation supply for a longer period of time by conducting an auction for a
three
-year period rather than a
one
-year period, in each of October 2012 and January 2013, to mitigate any potential price spikes for the Ohio Companies' utility customers who do not switch to a competitive generation supplier; and
|
•
|
Extending the recovery period for costs associated with purchasing RECs mandated by SB221, Ohio's renewable energy and energy efficiency standard, through the end of the new ESP 3 period.
This is expected to initially reduce the monthly renewable energy charge for all non-shopping utility customers of the Ohio Companies by spreading out the costs over the entire ESP period.
|
•
|
Continuing a base distribution rate freeze through May 31, 2019;
|
•
|
Continuing collection of lost distribution revenues associated with energy efficiency and peak demand reduction programs;
|
•
|
Providing economic development and assistance to low-income customers for the three-year plan period;
|
•
|
An Economic Stability Program providing for a retail rate stability rider to flow through charges or credits representing the net result of the costs paid to FES through a proposed 15-year purchase power agreement for the output of Sammis, Davis-Besse and FES’ share of OVEC against the revenues received from selling the output into the PJM markets over the same period;
|
•
|
Continuing to provide power to non-shopping customers at a market-based price set through an auction process;
|
•
|
Continuing Rider DCR with increased revenue caps of approximately
$30 million
per year that allows continued investment supporting the distribution system for the benefit of customers;
|
•
|
A commitment not to recover from retail customers certain costs related to transmission cost allocations for the longer of the
five
-year period from June 1, 2011 through May 31, 2016 or when the amount of such costs avoided by customers for certain types of products totals
$360 million
, including appropriately such costs from MISO along with such costs from PJM, subject to the outcome of certain FERC proceedings; and
|
•
|
General updates to electric service regulations and tariffs to reflect regulatory orders, administrative rule changes, and current practices.
|
|
|
Three Months Ended March 31,
|
|
Increase
|
||||||||
Revenues by Type of Service
|
|
2015
|
|
2014
|
|
(Decrease)
|
||||||
|
|
(In millions)
|
||||||||||
Contract Sales:
|
|
|
|
|
|
|
||||||
Direct
|
|
$
|
393
|
|
|
$
|
713
|
|
|
$
|
(320
|
)
|
Governmental Aggregation
|
|
288
|
|
|
320
|
|
|
(32
|
)
|
|||
Mass Market
|
|
98
|
|
|
142
|
|
|
(44
|
)
|
|||
POLR
|
|
275
|
|
|
262
|
|
|
13
|
|
|||
Structured Sales
|
|
125
|
|
|
88
|
|
|
37
|
|
|||
Total Contract Sales
|
|
1,179
|
|
|
1,525
|
|
|
(346
|
)
|
|||
Wholesale
|
|
92
|
|
|
157
|
|
|
(65
|
)
|
|||
Transmission
|
|
59
|
|
|
107
|
|
|
(48
|
)
|
|||
Other
|
|
47
|
|
|
40
|
|
|
7
|
|
|||
Total Revenues
|
|
$
|
1,377
|
|
|
$
|
1,829
|
|
|
$
|
(452
|
)
|
|
|
Three Months Ended March 31,
|
|
Increase
|
|||||
MWH Sales by Channel
|
|
2015
|
|
2014
|
|
(Decrease)
|
|||
|
|
(In thousands)
|
|
|
|||||
Contract Sales:
|
|
|
|
|
|
|
|||
Direct
|
|
7,249
|
|
|
12,801
|
|
|
(43.4
|
)%
|
Governmental Aggregation
|
|
4,598
|
|
|
5,769
|
|
|
(20.3
|
)%
|
Mass Market
|
|
1,435
|
|
|
2,126
|
|
|
(32.5
|
)%
|
POLR
|
|
4,822
|
|
|
4,579
|
|
|
5.3
|
%
|
Structured Sales
|
|
2,955
|
|
|
3,157
|
|
|
(6.4
|
)%
|
Total MWH Sales
|
|
21,059
|
|
|
28,432
|
|
|
(25.9
|
)%
|
|
|
Source of Change in Revenues
|
||||||||||||||||||
|
|
Increase (Decrease)
|
||||||||||||||||||
MWH Sales Channel:
|
|
Sales Volumes
|
|
Prices
|
|
Gain on Settled Contracts
|
|
Capacity Revenue
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Direct
|
|
$
|
(309
|
)
|
|
$
|
(11
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(320
|
)
|
Governmental Aggregation
|
|
(65
|
)
|
|
33
|
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|||||
Mass Market
|
|
(46
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|||||
POLR
|
|
14
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Structured Sales
|
|
(6
|
)
|
|
43
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Wholesale
|
|
—
|
|
|
—
|
|
|
(107
|
)
|
|
42
|
|
|
(65
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Source of Change
|
||||||||||||||||||
|
|
Increase (Decrease)
|
||||||||||||||||||
Operating Expense
|
|
Volumes
|
|
Prices
|
|
Settled Contracts
|
|
Capacity Expense
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Fossil Fuel
|
|
$
|
(68
|
)
|
|
$
|
(12
|
)
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
(92
|
)
|
Nuclear Fuel
|
|
8
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Affiliated Purchased Power
|
|
(5
|
)
|
|
9
|
|
|
2
|
|
|
—
|
|
|
6
|
|
|||||
Non-affiliated Purchased Power
(1)
|
|
(612
|
)
|
|
(384
|
)
|
|
446
|
|
|
64
|
|
|
(486
|
)
|
•
|
Fossil operating costs increased $4 million primarily due to costs associated with additional planned outages for the three months ended March 31, 2015 as compared to the same period of 2014.
|
•
|
Nuclear operating costs increased $7 million as a result of higher costs associated with the refueling outage at Perry that began on March 9, 2015, partially offset by refueling outage costs at Davis-Besse in the first quarter of 2014.
|
•
|
Transmission expenses decreased $50
million primarily due to lower operating reserve and market-based ancillary costs associated with market conditions related to extreme weather events in the first quarter of 2014 of which a portion were passed through to commercial and industrial customers, as discussed above.
|
•
|
Other operating expenses were unchanged as a $17 million increase in mark-to-market expenses on commodity contract positions was offset by a decrease in retail-related costs.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
Exhibit Number
|
|
||
|
|
|
|
FirstEnergy
|
|
|
|
(A)
|
10.1
|
|
2015-2017 Cash-Based Performance-Adjusted Restricted Stock Unit Award Agreement between FirstEnergy Corp. and Anthony J. Alexander, effective March 2, 2015
|
(A)
|
10.2
|
|
2015-2017 Stock-Based Performance-Adjusted Restricted Stock Unit Award Agreement between FirstEnergy Corp. and Anthony J. Alexander, effective March 2, 2015
|
(A)
|
12
|
|
Fixed charge ratio
|
(A)
|
31.1
|
|
Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a)
|
(A)
|
31.2
|
|
Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a)
|
(A)
|
32
|
|
Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350
|
|
101
|
|
The following materials from the Quarterly Report on Form 10-Q of FirstEnergy Corp. for the period ended March 31, 2015, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, (iv) related notes to these financial statements and (v) document and entity information.
|
|
|
|
|
FES
|
|
|
|
(A)
|
31.1
|
|
Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a)
|
(A)
|
31.2
|
|
Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a)
|
(A)
|
32
|
|
Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350
|
|
101
|
|
The following materials from the Quarterly Report on Form 10-Q of FirstEnergy Solutions Corp. for the period ended March 31, 2015, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income and Comprehensive Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, (iv) related notes to these financial statements and (v) document and entity information.
|
|
FIRSTENERGY CORP.
|
|
Registrant
|
|
|
|
FIRSTENERGY SOLUTIONS CORP.
|
|
Registrant
|
|
|
|
/s/ K. Jon Taylor
|
|
K. Jon Taylor
|
|
Vice President, Controller
and Chief Accounting Officer
|
Exhibit Number
|
|
||
|
|
|
|
FirstEnergy
|
|
|
|
(A)
|
10.1
|
|
2015-2017 Cash-Based Performance-Adjusted Restricted Stock Unit Award Agreement between FirstEnergy Corp. and Anthony J. Alexander, effective March 2, 2015
|
(A)
|
10.2
|
|
2015-2017 Stock-Based Performance-Adjusted Restricted Stock Unit Award Agreement between FirstEnergy Corp. and Anthony J. Alexander, effective March 2, 2015
|
(A)
|
12
|
|
Fixed charge ratio
|
(A)
|
31.1
|
|
Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a)
|
(A)
|
31.2
|
|
Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a)
|
(A)
|
32
|
|
Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350
|
|
101
|
|
The following materials from the Quarterly Report on Form 10-Q of FirstEnergy Corp. for the period ended March 31, 2015, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, (iv) related notes to these financial statements and (v) document and entity information.
|
|
|
|
|
FES
|
|
|
|
(A)
|
31.1
|
|
Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a)
|
(A)
|
31.2
|
|
Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a)
|
(A)
|
32
|
|
Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350
|
|
101
|
|
The following materials from the Quarterly Report on Form 10-Q of FirstEnergy Solutions Corp. for the period ended March 31, 2015, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income and Comprehensive Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, (iv) related notes to these financial statements and (v) document and entity information.
|
a)
|
5:00 p.m. Akron time on the March 01, 2018 (the “Vest Date”);
|
b)
|
The date of the Participant’s death;
|
c)
|
The date that the Participant’s employment is terminated due to Disability; or
|
d)
|
The date of an involuntary termination in connection with and resulting from a Change in Control within the two-year period following the date of the Change in Control under conditions in which the Participant qualifies for and receives any employer severance benefit that may be offered, provided that the Participant executes, submits and does not revoke an agreement to release the Company in full against any and all claims as required by (and within the time period mandated by) the arrangement or plan providing the employer severance benefit.
|
•
|
As soon as practicable, but not later than ninety (90) days after
the Vest Date if the payment is on account of: the expiration of the Period of Restriction set forth in paragraph a) of the subsection entitled “Period of Restriction” above; the Participant’s termination of employment due to Disability as set forth in paragraph c) of the subsection entitled “Period of Restriction” above; or
|
•
|
As soon as practicable, but not later than ninety (90) days, after the expiration of the Period of Restriction due to the Participant’s death pursuant to paragraph b) of the subsection entitled “Period of Restriction” above; or
|
•
|
On the 90th day after the expiration of the Period of Restriction due to the Participant’s involuntary termination in connection with and resulting from a Change in Control within the two-year period following the date of the Change in Control in accordance with, and as described in, paragraph d) of the subsection entitled “Period of Restriction” above.
|
•
|
Termination of employment with the Company for any reason other than death or Disability prior to April 30, 2015;
provided
,
however
, that no forfeiture shall occur if termination of employment occurs due to the Participant’s involuntary termination in connection with and resulting from a Change in Control within the two-year period following the date of the Change in Control and the satisfaction of the conditions as described in paragraph d) of the subsection entitled “Period of Restriction” above; and
further
provided
, that if the conditions of paragraph d) of the subsection entitled “Period of Restriction” above are not met, the Restricted Stock Units and any right under this Award Agreement to receive any payment will be forfeited.
|
•
|
Any attempt to sell, transfer, pledge, assign or otherwise alienate or hypothecate the Restricted Stock Units or the right to receive any payment under the Restricted Stock Units in violation of this Award Agreement.
|
1.
|
This Award Agreement is governed by the laws of the State of Ohio without giving effect to the principles of conflicts of laws. By accepting this Award, the Participant agrees to the exclusive jurisdiction of the courts of the United States District Court for the Northern District of Ohio to adjudicate any and all claims brought with respect to the Award.
|
2.
|
The administration of this Award Agreement and the Plan will be performed in accordance with Article 3 of the Plan.
|
3.
|
All interpretations, determinations and decisions made by the Committee, the Board, or any delegate of the Committee as to the provisions of the Plan shall be final, conclusive, and binding on all persons and the Participant agrees to be bound by such interpretations, determinations and decisions.
|
4.
|
The terms of this Award Agreement are governed at all times by the official text of the Plan and in no way alter or modify the Plan.
|
5.
|
If a term is capitalized but not defined in this Award Agreement, it has the meaning given to it in the Plan or on the Award Detail Page (which is a part of this Award Agreement) as the context so requires.
|
6.
|
To the extent a conflict exists between the terms of this Award Agreement and the provisions of the Plan, the provisions of the Plan shall govern.
|
7.
|
The terms and conditions of this Award may be modified by the Committee:
|
(a)
|
in any case permitted by the terms of the Plan or this Award Agreement;
|
(b)
|
with the written consent of the Participant; or
|
(c)
|
without the consent of the Participant if the amendment is either not materially adverse to the interests of the Participant or is necessary or appropriate in the view of the Committee to conform with, or to take into account, applicable law, including either exemption from or compliance with any applicable tax law.
|
1.
|
A Participant shall not be treated as having a termination of employment unless the Participant has a “separation from service” as defined in regulations under, and for purposes of, Section 409A.
|
2.
|
If a Participant is a “specified employee,” as determined under the Company’s policy for determining specified employees on the date of a “separation from service,” all payments under this Award Agreement that would otherwise be paid or provided during the first six (6) months following such separation from service (other than payments, benefits, or reimbursements that are treated as separation pay under Section 1.409A-1(b)(9)(v) of the Treasury Regulations, short-term deferrals under Section 1.409A-1(b)(4) of the Treasury Regulations or other payments exempted under the Treasury Regulations for Section 409A) shall be accumulated through and paid or provided
as soon as practicable following the six (6) month anniversary of such separation from service but not later than the end of the taxable year in which the six (6) month anniversary occurs. Notwithstanding the foregoing, payments delayed pursuant to this paragraph shall commence as soon as practicable following
|
3.
|
Unless otherwise provided for in an arrangement or plan providing an employer severance benefit and notwithstanding any other provision of this Award Agreement, if the Participant is required to execute, submit and not revoke a release of claims against the Company in order to receive the payment of benefits hereunder as a result of the terms of an arrangement or plan providing an employer severance benefit and the period in which to execute, submit and not revoke the release begins in a first taxable year and ends in a second taxable year, any payment to which the Participant would be entitled hereunder will be paid in the second taxable year, but no later than the end of the payment period specified in this Award Agreement.
|
April 10, 2015
|
|
/s/ Anthony J. Alexander
|
(Date)
|
|
(Signature of Participant)
|
|
|
|
a)
|
5:00 p.m. Akron time on the March 01, 2018 (the “Vest Date”);
|
b)
|
The date of the Participant’s death;
|
c)
|
The date that the Participant’s employment is terminated due to Disability; or
|
d)
|
The date of an involuntary termination in connection with and resulting from a Change in Control within the two-year period following the date of the Change in Control under conditions in which the Participant qualifies for and receives any employer severance benefit that may be offered, provided that the Participant executes, submits and does not revoke an agreement to release the Company in full against any and all claims as required by (and within the time period mandated by) the arrangement or plan providing the employer severance benefit.
|
•
|
As soon as practicable, but not later than ninety (90) days after
the Vest Date if the payment is on account of: the expiration of the Period of Restriction set forth in paragraph a) of the subsection entitled “Period of Restriction” above; the Participant’s termination of employment due to Disability as set forth in paragraph c) of the subsection entitled “Period of Restriction” above; or
|
•
|
As soon as practicable, but not later than ninety (90) days, after the expiration of the Period of Restriction due to the Participant’s death pursuant to paragraph b) of the subsection entitled “Period of Restriction” above; or
|
•
|
On the 90th day after the expiration of the Period of Restriction due to the Participant’s involuntary termination in connection with and resulting from a Change in Control within the two-year period following the date of the Change in Control in accordance with, and as described in, paragraph d) of the subsection entitled “Period of Restriction” above.
|
•
|
Termination of employment with the Company for any reason other than death or Disability prior to April 30, 2015;
provided
,
however
, that no forfeiture shall occur if termination of employment occurs due to the Participant’s involuntary termination in connection with and resulting from a Change in Control within the two-year period following the date of the Change in Control and the satisfaction of the conditions as described in paragraph d) of the subsection entitled “Period of Restriction” above; and
further
provided
, that if the conditions of paragraph d) of the subsection entitled “Period of Restriction” above are not met, the Restricted Stock Units and any right under this Award Agreement to receive Shares of common stock or equivalent cash payments will be forfeited.
|
•
|
Any attempt to sell, transfer, pledge, assign or otherwise alienate or hypothecate the Restricted Stock Units or the right to receive the common stock issuable, or cash payable, under the Restricted Stock Units in violation of this Award Agreement.
|
1.
|
This Award Agreement is governed by the laws of the State of Ohio without giving effect to the principles of conflicts of laws. By accepting this Award, the Participant agrees to the exclusive jurisdiction of the courts of the United States District Court for the Northern District of Ohio to adjudicate any and all claims brought with respect to the Award.
|
2.
|
The administration of this Award Agreement and the Plan will be performed in accordance with Article 3 of the Plan.
|
3.
|
All interpretations, determinations and decisions made by the Committee, the Board, or any delegate of the Committee as to the provisions of the Plan shall be final, conclusive, and binding on all persons and the Participant agrees to be bound by such interpretations, determinations and decisions.
|
4.
|
The terms of this Award Agreement are governed at all times by the official text of the Plan and in no way alter or modify the Plan.
|
5.
|
If a term is capitalized but not defined in this Award Agreement, it has the meaning given to it in the Plan or on the Award Detail Page (which is a part of this Award Agreement) as the context so requires.
|
6.
|
To the extent a conflict exists between the terms of this Award Agreement and the provisions of the Plan, the provisions of the Plan shall govern.
|
7.
|
The terms and conditions of this Award may be modified by the Committee:
|
(a)
|
in any case permitted by the terms of the Plan or this Award Agreement;
|
(b)
|
with the written consent of the Participant; or
|
(c)
|
without the consent of the Participant if the amendment is either not materially adverse to the interests of the Participant or is necessary or appropriate in the view of the Committee to conform with, or to take into account, applicable law, including either exemption from or compliance with any applicable tax law.
|
1.
|
A Participant shall not be treated as having a termination of employment unless the Participant has a “separation from service” as defined in regulations under, and for purposes of, Section 409A.
|
2.
|
If a Participant is a “specified employee,” as determined under the Company’s policy for determining specified employees on the date of a “separation from service,” all payments under this Award Agreement that would otherwise be paid or provided during the first six (6) months following such separation from service (other than payments, benefits, or reimbursements that
|
3.
|
Unless otherwise provided for in an arrangement or plan providing an employer severance benefit and notwithstanding any other provision of this Award Agreement, if the Participant is required to execute, submit and not revoke a release of claims against the Company in order to receive the payment of benefits hereunder as a result of the terms of an arrangement or plan providing an employer severance benefit and the period in which to execute, submit and not revoke the release begins in a first taxable year and ends in a second taxable year, any payment to which the Participant would be entitled hereunder will be paid in the second taxable year, but no later than the end of the payment period specified in this Award Agreement.
|
April 10, 2015
|
|
/s/ Anthony J. Alexander
|
|
(Date)
|
|
(Signature of Participant)
|
|
(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/ Charles E. Jones
|
|
|
Charles E. Jones
|
|
|
President and 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
|
|
|
President
|
|
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/ James F. Pearson
|
|
|
James F. Pearson
|
|
|
Senior Vice President and Chief Financial 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/ James F. Pearson
|
|
|
James F. Pearson
|
|
|
Senior Vice President, Chief Financial Officer, and Director
|
|
|
/s/ Charles E. Jones
|
|
|
Charles E. Jones
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
/s/ James F. Pearson
|
|
|
James F. Pearson
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
/s/ Donald R. Schneider
|
|
|
Donald R. Schneider
|
|
|
President
|
|
|
|
|
|
/s/ James F. Pearson
|
|
|
James F. Pearson
|
|
|
Senior Vice President, Chief Financial Officer and Director
|
|