Allegheny Power 2010 Annual Report Download - page 117

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102
General Taxes
Details of general taxes for the three years ended December 31, 2010 are shown below:
FE FES OE CEI TE JCP&L Met-Ed Penelec
(In millions)
2010
Kilowatt-hour excise $ 245 $ 5 $ 92 $ 68 $ 27 $ 51 $ - $ -
State gross receipts 185 17 15 - - - 85 68
Real and personal property 243 53 67 70 23 5 - (1)
Social security and unemployment 86 14 8 5 2 9 4 5
Other 17 5 1 - - - (1) 1
Total general taxes $ 776 $ 94 $ 183 $ 143 $ 52 $ 65 $ 88 $ 73
2009
Kilowatt-hour excise(1) $ 224 $ 1 $ 84 $ 66 $ 24 $ 49 $ - $ -
State gross receipts 171 14 15 - - - 78 63
Real and personal property 253 53 64 74 21 5 2 2
Social security and unemployment 90 14 8 5 3 9 5 6
Other 15 5 - - - - 3 3
Total general taxes $ 753 $ 87 $ 171 $ 145 $ 48 $ 63 $ 88 $ 74
2008
Kilowatt-hour excise $ 249 $ 1 $ 97 $ 70 $ 30 $ 51 $ - $ -
State gross receipts 183 16 17 - - - 79 70
Real and personal property 240 53 61 67 19 5 3 2
Social security and unemployment 95 14 9 6 3 10 5 6
Other 11 4 2 - - 1 (1) 2
Total general taxes $ 778 $ 88 $ 186 $ 143 $ 52 $ 67 $ 86 $ 80
(1) Kilowatt-hour excise tax for OE and TE includes a $7.1 million and $3.5 million adjustment, respectively, recognized in 2009
related to prior periods.
10. REGULATORY MATTERS
(A) RELIABILITY INITIATIVES
Federally-enforceable mandatory reliability standards apply to the bulk power system and impose certain operating,
record-keeping and reporting requirements on the Utilities, FES, FGCO, FENOC and ATSI. The NERC, as the ERO is
charged with establishing and enforcing these reliability standards, although it has delegated day-to-day implementation
and enforcement of these reliability standards to eight regional entities, including ReliabilityFirst Corporation. All of
FirstEnergy’s facilities are located within the ReliabilityFirst region. FirstEnergy actively participates in the NERC and
ReliabilityFirst stakeholder processes, and otherwise monitors and manages its companies in response to the ongoing
development, implementation and enforcement of the reliability standards implemented and enforced by the
ReliabilityFirst Corporation.
FirstEnergy believes that it generally is in compliance with all currently-effective and enforceable reliability standards.
Nevertheless, in the course of operating its extensive electric utility systems and facilities, FirstEnergy occasionally learns
of isolated facts or circumstances that could be interpreted as excursions from the reliability standards. If and when such
items are found, FirstEnergy develops information about the item and develops a remedial response to the specific
circumstances, including in appropriate cases “self-reporting” an item to ReliabilityFirst. Moreover, it is clear that the
NERC, ReliabilityFirst and the FERC will continue to refine existing reliability standards as well as to develop and adopt
new reliability standards. The financial impact of complying with new or amended standards cannot be determined at this
time; however, 2005 amendments to the FPA provide that all prudent costs incurred to comply with the new reliability
standards be recovered in rates. Still, any future inability on FirstEnergy’s part to comply with the reliability standards for
its bulk power system could result in the imposition of financial penalties that could have a material adverse effect on its
financial condition, results of operations and cash flows.