Allegheny Power 2010 Annual Report Download - page 39

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24
Changes Between 2009 and 2008 Financial
Results Increase (Decrease)
Energy
Delivery
Services
Competitive
Energy
Services
Other and
Reconciling
Adjustments
FirstEnergy
Consolidated
(In millions)
Revenues:
External
Electric $ (775) $ 114 $ - $ (661)
Other (149) 209 (70) (10)
Internal* - (125) 142 17
Total Revenues (924) 198 72 (654)
Expenses:
Fuel (2) (185) - (187)
Purchased power 80 217 142 439
Other operating expenses (598) 215 35 (348)
Provision for depreciation 28 27 4 59
A
mortization of regulatory assets 102 - - 102
Deferral of new regulatory assets 180 - - 180
Impairment of long lived assets - 6 - 6
General taxes (5) (1) (19) (25)
Total Expenses (215) 279 162 226
Operating Income (709) (81) (90) (880)
Other Income (Expense):
Investment income (32) 155 22 145
Interest expense (61) (14) (149) (224)
Capitalized interest - 16 62 78
Total Other Expense (93) 157 (65) (1)
Income Before Income Taxes (802) 76 (155) (881)
Income taxes (321) 31 (242) (532)
Net Income (481) 45 87 (349)
Loss attributable to noncontrolling interest - - (13) (13)
Earnings available to FirstEnergy Corp. $ (481) $ 45 $ 100 $ (336)
* Under the accounting standard for the effects of certain types of regulation, internal revenues are not fully offset for sale of RECs by
FES to the Ohio Companies that are retained in inventory.
Energy Delivery Services – 2009 Compared to 2008
Net income decreased $481 million to $435 million in 2009 compared to $916 million in 2008, primarily due to lower
revenues, increased purchased power costs and decreased deferrals of new regulatory assets, partially offset by lower
other operating expenses.
Revenues –
The decrease in total revenues resulted from the following sources:
Increase
Revenues by Type of Service 2010 2009 (Decrease)
(In millions)
Distribution services $ 3,420 $ 3,882 $ (462)
Generation sales:
Retail 5,760 5,768 (8)
Wholesale 752 962 (210)
Total generation sales 6,512 6,730 (218)
Transmission 1,023 1,268 (245)
Other 189 188 1
Total Revenues $ 11,144 $ 12,068 $ (924)