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1
2 011
ANNUAL
REPORT

Table of contents

  • Page 1
    1 ANNUAL REPORT 2011

  • Page 2
    ... Generated $3.1 billion in cash from operations › Reduced debt by $2.4 billion › Captured approximately $270 million in annual merger-related savings › Our competitive subsidiary, FirstEnergy Solutions (FES), achieved a nearly 27 percent increase in the number of customers served FINANCIALS...

  • Page 3
    ...major milestones in 2011. With the completion of our merger with Allegheny Energy, we became one of the nation's largest investor-owned electric systems based on 6 million customers served. We strengthened our balance sheet and reduced our debt-to-total-capital ratio to its lowest level in six years...

  • Page 4
    ... greater operating efficiencies and more effective long-term planning for our electric system. In addition, we completed the Trans-Allegheny Interstate Line (TrAIL) ahead of schedule. This new 500-kilovolt line stretches more than 150 miles from southwest Pennsylvania through West Virginia to...

  • Page 5
    ... the shale gas industry. However, growth is spotty in other segments of our regional economy, and overall distribution sales have not yet recovered to pre-recession levels. As a result, generation supplies within the region continue to exceed demand, and wholesale market prices for electricity have...

  • Page 6
    .... IMPROVING DISTRIBUTION RELIABILITY Our regulated utility operations were challenged by several major storms in 2011, including two Upon retirement of these units, nearly 100 percent of the power we generate will come from low- or non-emitting sources, including nuclear, natural gas, scrubbed...

  • Page 7
    5 Penelec, West Penn Power, Mon Power and Potomac Edison. We responded with the largest restoration effort in our Company's history, with 9,600 employees, contractors and other utilities' crews working to restore service following the snowstorm. Crews from other FirstEnergy utilities were quick to...

  • Page 8
    ... value to our shareholders and customers. Sincerely, ANTHONY J. ALEXANDER President and Chief Executive Officer March 19, 2012 Hatfield's Ferry Power Station in southwestern Pennsylvania is one of the highly efficient, supercritical coal assets we added through our merger with Allegheny Energy...

  • Page 9
    ... operating companies comprise one of the nation's largest investor-owned electric systems based on 6 million customers served within a nearly 65,000-square-mile area of Ohio, Pennsylvania, Maryland, West Virginia, New Jersey and New York. Met-Ed Penelec Penn Power West Penn Power Our generation...

  • Page 10
    ...Generation. * Also holds a similar position with FirstEnergy Service Company, FirstEnergy Solutions Corp., FirstEnergy Nuclear Operating Company, Allegheny Energy Service Corporation and Allegheny Energy Supply Company, LLC. ** Holds a similar position with FirstEnergy Service Company and Allegheny...

  • Page 11
    ANNUAL REPORT 2011 CONTENTS Page Glossary of Terms Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Management Reports Report of Independent Registered Public Accounting Firm Consolidated Statements of Income Consolidated Statements of ...

  • Page 12
    ... Element Merger Sub, Inc., a Maryland corporation and a wholly owned subsidiary of FirstEnergy Metropolitan Edison Company, a Pennsylvania electric utility operating subsidiary Monongahela Power Company, a West Virginia electric utility operating subsidiary of AE FirstEnergy Nuclear Generation Corp...

  • Page 13
    ... Plan Financial Accounting Standards Board Federal Energy Regulatory Commission Fitch Ratings First Mortgage Bond Federal Power Act Financial Transmission Right Accounting Principles Generally Accepted in the United States Intra-system generation asset transfers from the Ohio Companies and Penn...

  • Page 14
    ... Environment Maryland Public Service Commission Federal Mine Safety and Health Act of 1977 Midwest Independent Transmission System Operator, Inc. Mission Energy Westside, Inc. Moody's Investors Service, Inc. Mine Safety and Health Administration MISO Regional Transmission Expansion Plan Multi-value...

  • Page 15
    ... Plan Sulfur Dioxide Standard Offer Service Solar Renewable Energy Credit Transition Bond Charge Total Dissolved Solid Total Maximum Daily Load Three Mile Island Unit 2 Transmission Owner Transmission Service Charge Variable Interest Entity Virginia State Corporation Commission West Virginia...

  • Page 16
    ... change in accounting for pensions and OPEB costs increased Total Equity as of December 31 as follows: 2010 - $439 million, 2009 - $457 million, 2008 - $433 million and 2007 - $122 million. PRICE RANGE OF COMMON STOCK The common stock of FirstEnergy Corp. is listed on the New York Stock...

  • Page 17
    ...,216,437 shares of FirstEnergy's common stock as of December 31, 2011 and January 31, 2012, respectively. Information regarding retained earnings available for payment of cash dividends is given in Note 12, Capitalization of the Combined Notes to the Consolidated Financial Statements. CHANGES IN AND...

  • Page 18
    FIRSTENERGY CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward-Looking Statements: This Annual Report includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and ...

  • Page 19
    ... maintain relationships with customers, employees or suppliers, as well as the ability to continue to successfully integrate the businesses and realize cost savings and any other synergies . The risks and other factors discussed from time to time in FirstEnergy's and its applicable subsidiaries' SEC...

  • Page 20
    ... Prior Year Segment operating results(1)Regulated Distribution Competitive Energy Services Regulated Independent Transmission Non-core asset sales/impairments Generating plant impairments Trust securities impairments Litigation resolution Regulatory charges Mark-to-market adjustmentsPension and OPEB...

  • Page 21
    ... safe and reliable operation of the plant. Coal and Gas Fired Generation On July 28, 2011, FirstEnergy completed the sale of the Fremont Energy Center to American Municipal Power, Inc. for $510 million based on 685 MW of output. The purchase price can be incrementally increased, not to exceed...

  • Page 22
    ... utility line workers from other utilities, assisted with the restoration work. The cost of the storm totaled approximately $89 million, of which $4 million reduced pre-tax income in 2011 and $85 million was capitalized or deferred for future recovery from customers. On October 29, 2011, FirstEnergy...

  • Page 23
    ... management views the business. The new structure supports the combined company's primary operations - distribution, transmission, generation and the marketing and sale of its products. The external segment reporting is consistent with the internal financial reporting used by FirstEnergy's chief...

  • Page 24
    ... New York, and purchases power for its POLR, SOS and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland. This segment also includes the transmission operations of JCP&L, Met-Ed, Penelec, WP, MP and PE and the regulated electric generation facilities in West Virginia and New...

  • Page 25
    ... retail business and generation fleet. However, we believe we are one of the better positioned companies in our industry to benefit from eventual increases in energy and capacity prices as economic conditions improve. Financial Outlook We intend to manage our operating and capital costs in...

  • Page 26
    ... line in 2011. Expenditures for Ohio and Pennsylvania energy efficiency and advanced metering initiatives are expected to be primarily recovered from distribution customers and federal stimulus funding. Other capital investments in our transmission and distribution infrastructure are planned...

  • Page 27
    ...OPEB plans and applied this change retrospectively to all periods presented. Earnings available to FirstEnergy by major business segment were as follows: Increase (Decrease) 2011 Earnings By Business Segment: Regulated Distribution Competitive Energy Services Regulated Independent Transmission Other...

  • Page 28
    ... 2010 Financial results for FirstEnergy's major business segments in 2011 and 2010 were as follows: Regulated Distribution Competitive Energy Services Regulated Independent Transmission (In millions) Revenues: External Electric Other Internal Total Revenues Operating Expenses: Fuel Purchased power...

  • Page 29
    ... Total Other Expense Income Before Income Taxes Income taxes Net Income Loss attributable to noncontrolling interest Earnings available to FirstEnergy Corp. Regulated Distribution Competitive Energy Services Regulated Independent Transmission (In millions) Other and Reconciling Adjustments...

  • Page 30
    ... the Allegheny companies and the absence of a 2010 regulatory asset impairment associated with the Ohio companies' ESP, partially offset by higher pensions and OPEB mark-to-market adjustment charges and merger-related costs. Lower generation revenues were offset with lower purchased power expenses...

  • Page 31
    ... service revenues were increased rates in Met-Ed's and Penelec's transition riders and energy efficiency riders for the Pennsylvania and Ohio Companies. Distribution deliveries (excluding the Allegheny companies) increased by 0.1% in 2011 from 2010.The change in distribution deliveries by customer...

  • Page 32
    ... 2011, including $571 million for distribution services, $1,661 million from generation sales, $212 million of transmission revenues and $42 million of other revenues. Operating Expenses - Total operating expenses increased by $221 million in 2011. Excluding the Allegheny companies, total operating...

  • Page 33
    ... recovery from customers. Energy efficiency program costs, which are also recovered through rates, increased by $92 million. A provision for excess and obsolete material of $13 million was recognized in 2011 due to revised inventory practices adopted in conjunction with the Allegheny merger. The...

  • Page 34
    ...operating expenses in 2011: Operating Expenses - Allegheny Purchased power Fuel Transmission Amortization of regulatory assets, net Pensions and OPEB mark-to-market adjustment Other operating expenses General taxes Depreciation expense Total Operating Expenses Other Expense - Other expense increased...

  • Page 35
    The increase in reported segment revenues resulted from the following sources: Revenues by Type of Service Direct and Governmental Aggregation POLR and Structured Sales Wholesale Transmission RECs Sale of OVEC participation interest Other Allegheny Companies Total Revenues Allegheny Companies Direct...

  • Page 36
    ... increased $1.5 billion in 2011. Excluding the Allegheny companies, total operating expenses decreased $98 million compared to 2010, due to the following factors: • Fuel costs decreased $177 million in 2011 compared to 2010 primarily due to cash received from assigning a substantially below-market...

  • Page 37
    ...table: Source of Operating Expense Changes Allegheny Companies Fuel Purchased power Fossil operation and maintenance Transmission Pensions and OPEB mark-to-market adjustment Other mark-to-market Depreciation General taxes Other Total operating expenses Other Expense - Total other expense in 2011 was...

  • Page 38
    ... 2009 Financial results for FirstEnergy's major business segments in 2010 and 2009 were as follows: Regulated Distribution Competitive Energy Services Regulated Independent Transmission (In millions) Revenues: External Electric Other Internal Total Revenues Operating Expenses: Fuel Purchased power...

  • Page 39
    ... Total Other Expense Income Before Income Taxes Income taxes Net Income Loss attributable to noncontrolling interest Earnings available to FirstEnergy Corp. Regulated Distribution Competitive Energy Services Regulated Independent Transmission (In millions) Other and Reconciling Adjustments...

  • Page 40
    ... Financial Results Increase (Decrease) Revenues: External Electric Other Internal Total Revenues Operating Expenses: Fuel Purchased power Other operating expenses Pensions and OPEB mark-to-market adjustment Provision for depreciation Amortization of regulatory assets, net General taxes Impairment...

  • Page 41
    ... the PJM market. Transmission revenues decreased $209 million primarily due to the termination of the Ohio Companies' transmission tariff effective June 1, 2009; transmission costs are now a component of the cost of generation established under the May 2009 Ohio CBP. Other revenues increased by $150...

  • Page 42
    ... revenues from their transmission rider and transmission costs incurred, resulting in no material effect on current period earnings. Energy efficiency program costs, which are also recovered through rates, increased $41 million in 2010 compared to 2009. Labor and employee benefit expenses decreased...

  • Page 43
    ...in POLR sales to the Ohio Companies, other wholesale sales and the reduced OVEC participation interest sale in 2010. The increase in reported segment revenues resulted from the following sources: Revenues by Type of Service Direct and Governmental Aggregation POLR Wholesale Transmission RECs Sale of...

  • Page 44
    ... net of tax) related to operational changes at certain smaller coal-fired units. Expenses also increased for professional and contractor services, billings from affiliated service companies, uncollectible customer accounts and agent fees, as FES continued to grow its retail business. 29 $ (344...

  • Page 45
    ... its subsidiaries. FirstEnergy's business is capital intensive, requiring significant resources to fund operating expenses, construction expenditures, scheduled debt maturities and interest and dividend payments. In addition to internal sources to fund liquidity and capital requirements for 2012 and...

  • Page 46
    ...2011, and short-term borrowings of approximately $700 million as of December 31, 2010. FirstEnergy's available liquidity as of January 31, 2012, was as follows: Company FirstEnergy... Supply (1) FE and the Utilities Revolving Credit Facilities FirstEnergy and FES / AE Supply Facilities FirstEnergy ...

  • Page 47
    ...restrict the ability to borrow or accelerate payment of outstanding advances as a result of any change in credit ratings. Pricing is subject to "pricing grids," whereby the borrower's cost of funds borrowed under the Facilities is related to the credit ratings of the company borrowing the funds. 32

  • Page 48
    ... drawings on the irrevocable direct pay LOCs. The subsidiary obligor is required to reimburse the applicable LOC bank for any such drawings or, if the LOC bank fails to honor its LOC for any reason, must itself pay the purchase price. The LOCs for FirstEnergy variable interest rate PCRBs were issued...

  • Page 49
    ... Financial Statements for additional information on FirstEnergy's and the Registrants' long-term debt and other long-term obligations that were outstanding as of December 31, 2011. Changes in Cash Position As of December 31, 2011, FirstEnergy had $202 million of cash and cash equivalents compared...

  • Page 50
    ... FirstEnergy's consolidated net cash from operating activities is provided primarily by its regulated distribution, regulated independent transmission and competitive energy services businesses (see Results of Operations above). Net cash provided from operating activities was $3.1 billion in 2011...

  • Page 51
    ... from (Used for) Investing Activities Sources (Uses) 2011 Regulated distribution Competitive energy services Regulated independent transmission Cash received in Allegheny merger Other and reconciling adjustments Total 2010 Regulated distribution Competitive energy services Regulated independent...

  • Page 52
    ... generation service to their customers who do not choose an alternative supplier. The exact amounts will be determined by future customer behavior and consumption levels, but based on numerous planning assumptions, management estimates an amount of $5.4 billion in 2012, $1.8 billion of which relates...

  • Page 53
    ... electricity and an estimate of related price volatility. FirstEnergy uses these results to develop estimates of fair value for financial reporting purposes and for internal management decision making (see Note 9, Fair Value Measurements of the Combined Notes to the Consolidated Financial Statements...

  • Page 54
    .... A decline in the value of pension plan assets could result in additional funding requirements. FirstEnergy's funding policy is based on actuarial computations using the projected unit credit method. During 2011, FirstEnergy made pre-tax contributions to its qualified pension plans of $372 million...

  • Page 55
    ... to pay for service rendered. This risk represents the loss that may be incurred due to the nonpayment of customer accounts receivable balances, as well as the loss from the resale of energy previously committed to serve customers. Retail credit risk is managed through established credit approval...

  • Page 56
    ...: Regulatory Assets December 31, 2011 Regulatory transition costs Customer receivables for future income taxes Nuclear decommissioning, decontamination and spent fuel disposal costs Asset removal costs PJM transmission costs Deferred generation costs Distribution costs Other Total December 31, 2010...

  • Page 57
    ... in the proceedings discussed below. The MDPSC opened a new docket in August 2007 to consider matters relating to possible "managed portfolio" approaches to SOS and other matters. "Phase II" of the case addressed utility purchases or construction of generation, bidding for procurement of demand...

  • Page 58
    ... all electric and gas utilities in the state to terminate service to residential customers for non-payment of bills. The MDPSC subsequently issued an order making various rule changes relating to terminations, payment plans, and customer deposits that make it more difficult for Maryland utilities to...

  • Page 59
    ... 2011, the PUCO denied those applications for rehearing. The PUCO also included a new standard for compliance with the statutory energy efficiency benchmarks by requiring electric distribution companies to offer "all available cost effective energy efficiency opportunities" regardless of their level...

  • Page 60
    ... MISO exit fees and PJM integration costs. Pennsylvania adopted Act 129 in 2008 to address issues such as: energy efficiency and peak load reduction; generation procurement; time-of-use rates; smart meters; and alternative energy. Among other things, Act 129 required utilities to file with the PPUC...

  • Page 61
    ...Default Service Plan for the period June 1, 2013 through May 31, 2015. The Pennsylvania Companies' direct case was submitted in its entirety on December 20, 2011. Evidentiary hearings are scheduled for April 11-13, 2012, and a final order must be entered by the PPUC by August 17, 2012. WEST VIRGINIA...

  • Page 62
    ...responsive comments or studies on May 28, 2010 and reply comments on June 28, 2010. FirstEnergy and a number of other utilities, industrial customers and state commissions supported the use of the beneficiary pays approach for cost allocation for high voltage transmission facilities. Other utilities...

  • Page 63
    ... to require a cost-benefit analysis as part of FERC's evaluation of ATSI's proposed transmission rates. Finally, and also on June 30, 2011, the MISO and the MISO TOs filed a competing compliance filing - one that would require ATSI to pay certain charges related to construction and operation of...

  • Page 64
    ... costs that, according to the MISO, attached to the utility prior to such TOs withdrawal from the MISO. On January 19, 2012, FirstEnergy filed a protest to the MISO's new Schedule 39 tariff. On February 27, 2012, FERC issued an order (February 2012 Order) dismissing ATSI's August 3, 2011 complaint...

  • Page 65
    ...its consideration of the 2011 RTEP. On February 28, 2011, affiliates of FirstEnergy and AEP filed motions or notices to withdraw applications for authorization to construct the project that were pending before state commissions in West Virginia, Virginia and Maryland. Withdrawal was deemed effective...

  • Page 66
    ... complaints. The states of New Jersey and Connecticut filed CAA citizen suits in 2007 alleging NSR violations at the coal-fired Portland Generation Station against GenOn Energy, Inc. (formerly RRI Energy, Inc. and the current owner and operator), Sithe Energy (the purchaser of the Portland Station...

  • Page 67
    ... dating back to 1990 triggered the pre-construction permitting requirements under the PSD and NNSR programs. FGCO also received a request for certain operating and maintenance information and planning information for these same generating plants and notification that the EPA is evaluating whether...

  • Page 68
    ... how any final rules are ultimately implemented, FGCO's and AE Supply's future cost of compliance may be substantial and changes to FirstEnergy's operations may result. During 2011, FirstEnergy recorded pre-tax impairment charges of approximately $6 million ($1 million for FES and $5 million for AE...

  • Page 69
    ... quality standards applicable to FirstEnergy's operations. In 2004, the EPA established new performance standards under Section 316(b) of the CWA for reducing impacts on fish and shellfish from cooling water intake structures at certain existing electric generating plants. The regulations call for...

  • Page 70
    ..., on new and modified sources, including the scrubber project at the coal-fired Hatfield's Ferry Plant. These criteria are reflected in the current PA DEP water discharge permit for that project. AE Supply appealed the PA DEP's permitting decision, which would require it to incur estimated costs in...

  • Page 71
    ... been recognized on the consolidated balance sheet as of December 31, 2011, based on estimates of the total costs of cleanup, the Utility Registrants' proportionate responsibility for such costs and the financial ability of other unaffiliated entities to pay. Total liabilities of approximately $106...

  • Page 72
    ... several years, which costs are likely to be material. On February 16, 2012, the NRC issued a request for information to the licensed operators of 11 nuclear power plants, including Beaver Valley Power Station Units 1 and 2, with respect to the modeling of fuel performance as it relates to "thermal...

  • Page 73
    ... of unbilled sales and revenues requires management to make estimates regarding electricity available for retail load, transmission and distribution line losses, demand by customer class, applicable billing demands, weather-related impacts, number of days unbilled and tariff rates in effect...

  • Page 74
    ... plan assets will increase or decrease future net periodic pension and OPEB cost as the difference is recognized annually in the fourth quarter of each fiscal year. Based on discounts rates of 5.00% for pension, 4.75% for OPEB and an estimated return on assets of 7.75%, FirstEnergy expects its 2012...

  • Page 75
    ... to be paid. Deferred tax assets are recognized based on income tax rates expected to be in effect when they are settled. FirstEnergy accounts for uncertainty in income taxes recognized in its financial statements. We account for uncertain income tax positions using a benefit recognition model with...

  • Page 76
    ...; and reporting to the Board of Directors the Committee's findings and any recommendation for changes in scope, methods or procedures of the auditing functions. The Committee is directly responsible for appointing the Company's independent registered public accounting firm and is charged with...

  • Page 77
    ...of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors of FirstEnergy Corp.: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, comprehensive income, common stockholders' equity, and cash flows present...

  • Page 78
    FIRSTENERGY CORP. CONSOLIDATED STATEMENTS OF INCOME For the Years Ended December 31, (In millions, except per share amounts) REVENUES: Electric utilities Unregulated businesses Total revenues* OPERATING EXPENSES: Fuel Purchased power Other operating expenses Pensions and OPEB mark-to-market ...

  • Page 79
    FIRSTENERGY CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, (In millions) NET INCOME OTHER COMPREHENSIVE INCOME (LOSS): Pensions and OPEB prior service costs Unrealized gain on derivative hedges Change in unrealized gain on available-for-sale securities Other ...

  • Page 80
    ...of $37 in 2011 and $36 in 2010 Other, net of allowance for uncollectible accounts of $3 in 2011 and $8 in 2010 Materials and supplies, at average cost Prepaid taxes Derivatives Other PROPERTY, PLANT AND EQUIPMENT: In service Less - Accumulated provision for depreciation Construction work in progress...

  • Page 81
    ... and OPEB, net of $91 million of income tax benefits (Note 3) Stock options exercised Restricted stock units Stock-based compensation Cash dividends declared on common stock Balance, December 31, 2010 Earnings available to FirstEnergy Corp. Change in unrealized loss on derivative hedges, net of...

  • Page 82
    ...fuel and lease amortization Deferred purchased power and other costs Deferred income taxes and investment tax credits, net Impairments of long-lived assets (Note 11) Investment impairments (Note 1) Deferred rents and lease market valuation liability Stock based compensation Pensions and OPEB mark-to...

  • Page 83
    ... EFFECTS OF REGULATION FirstEnergy accounts for the effects of regulation through the application of regulatory accounting to its operating utilities since their rates are established by a third-party regulator with the authority to set rates that bind customers, are cost-based and can be charged to...

  • Page 84
    ... default service requirements of the Ohio and Pennsylvania Companies and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland. Electric revenues are recorded based on energy delivered through the end of the calendar month. An estimate of...

  • Page 85
    ... 31, 2010 Unregulated Regulated Total FirstEnergy provides for depreciation on a straight-line basis at various rates over the estimated lives of property included in plant in service. The respective annual composite rates for FirstEnergy's subsidiaries' electric plant in 2011, 2010 and 2009...

  • Page 86
    ... its management structure, which resulted in changes to its operating segments (see Note 19, Segment Information). FirstEnergy's goodwill from the merger of $866 million was assigned to the Competitive Energy Services segment based on expected synergies from the merger. FirstEnergy's reporting...

  • Page 87
    ... of the Regulated Distribution and Competitive Energy Services segments reporting units is based on the forecasted operating cash flow for the current year, projected operating cash flows (determined using forecasted amounts as well as an estimated growth rate) and a terminal value. Discounted cash...

  • Page 88
    ...have a material effect on FirstEnergy's financial statements. CHANGE IN PENSIONS AND OPEB ACCOUNTING POLICY Effective in 2011, FirstEnergy elected to change its method of recognizing actuarial gains and losses for its defined benefit pension and OPEB plans. Previously, FirstEnergy recognized the net...

  • Page 89
    ... of increasing those asset balances, FirstEnergy recognized additional affiliated company asset transfers associated with ATSI and the Generation Asset Transfer, and further impairments of certain long-lived assets in those periods. Additionally, the allocation of related pension and OPEB costs from...

  • Page 90
    ... Balance Pension and other postretirement benefits, net of taxes Ending Balance CONSOLIDATED STATEMENTS OF CASH FLOW (In millions) Cash flows provided by operating activities: Net income Provision for depreciation Deferred income taxes and investment tax credits, net Pensions and OPEB mark-to-market...

  • Page 91
    ...of taxes Ending Balance Common StockBeginning Balance Ending Balance CONSOLIDATED STATEMENTS OF CASH FLOW (In millions) Cash flows provided by operating activities: Net income Provision for depreciation Deferred income taxes and investment tax credits, net Pensions and OPEB mark-to-market adjustment...

  • Page 92
    ...-to-market adjustment Provision for depreciation Income before income taxes Income taxes Net Income Pension and other postretirement benefits Income taxes (benefits) on other comprehensive income Comprehensive income CONSOLIDATED BALANCE SHEETS (In millions) Utility plant - In service Accumulated...

  • Page 93
    ... and investment tax credits, net Pensions and OPEB mark-to-market adjustment Accrued compensation and retirement benefits Other operating activities Year Ended December 31, 2010 Year Ended December 31, 2009 As Effect of As As Effect of As Reported Change Revised Reported Change Revised $ 130,018...

  • Page 94
    ... and investment tax credits, net Pensions and OPEB mark-to-market adjustment Accrued compensation and retirement benefits Other operating activities Year Ended December 31, 2010 Year Ended December 31, 2009 As Effect of As As Effect of As Reported Change Revised Reported Change Revised $ 108,072...

  • Page 95
    ...Pensions and OPEB mark-to-market adjustment Provision for depreciation Income before income taxes Income taxes Net Income Pension and other postretirement benefits Income taxes (benefits) on other comprehensive Comprehensive income CONSOLIDATED BALANCE SHEETS (In millions) Utility plant - In service...

  • Page 96
    ...income Provision for depreciation Deferred income taxes and investment tax credits, net Pensions and OPEB mark-to-market adjustment Accrued compensation and retirement benefits Other operating activities Year Ended December 31, 2010 As Effect of As Reported Change Revised $ 418,569 $ (17,553) $ 401...

  • Page 97
    ... income Provision for depreciation Deferred income taxes and investment tax credits, net Pensions and OPEB mark-to-market adjustment Accrued compensation and retirement benefits Other operating activities As of December 31, 2010 As Effect of As Reported Change Revised $ 2,532,629 $ 181,912 $ 2,714...

  • Page 98
    ..., 2011 Exchange ratio Number of shares of FirstEnergy common stock issued Closing price of FirstEnergy common stock on February 24, 2011 Fair value of shares issued by FirstEnergy Fair value of replacement share-based compensation awards relating to pre-merger service Total consideration transferred...

  • Page 99
    ... with a fair value of $190 million are included in "Property, plant and equipment" on FirstEnergy's Consolidated Balance Sheet as of December 31, 2011. In connection with the merger, FirstEnergy recorded merger transaction costs, which included change in control and other benefit payments to AE...

  • Page 100
    ... employees after employment, but before retirement, for disability-related benefits. FirstEnergy's funding policy is based on actuarial computations using the projected unit credit method. During 2011, FirstEnergy made pre-tax contributions to its qualified pension plans of $372 million. FirstEnergy...

  • Page 101
    ... on the Balance Sheet: Current liabilities Noncurrent liabilities Net liability as of December 31, Amounts Recognized in AOCI: Prior service cost (credit) Assumptions Used to Determine Benefit Obligations (as of December 31) Discount rate Rate of compensation increase Allocation of Plan Assets (as...

  • Page 102
    ...prior service cost (credit) Other adjustments (settlements, curtailments, etc.) Pensions & OPEB mark-to-market adjustment Net periodic cost Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Weighted-average discount rate Expected long-term return on plan assets Rate...

  • Page 103
    ...of changes in the fair value of pension investments classified as Level 3 in the fair value hierarchy during 2011 and 2010: Private Equity Funds Balance as of January 1, 2010 Actual return on plan assets: Unrealized gains (losses) Realized gains (losses) Purchases, sales and settlements Transfers in...

  • Page 104
    ... other OPEB trust investments measured at fair value were as follows: December 31, 2011 Level 1 Cash and short-term securities Equity investment Domestic International Mutual funds Fixed income U.S. treasuries Government bonds Corporate bonds Distressed debt Mortgage-backed securities (nongovernment...

  • Page 105
    ...of changes in the fair value of OPEB trust investments classified as Level 3 in the fair value hierarchy during 2011 and 2010: Private Equity Funds Balance as of January 1, 2010 Actual return on plan assets: Unrealized gains (losses) Realized gains (losses) Purchases, sales and settlements Transfers...

  • Page 106
    ...1-PercentagePoint Increase Effect on total of service and interest cost Effect on accumulated benefit obligation 2 20 1-PercentagePoint Decrease (2) (17) (in millions) Taking into account estimated employee future service, FirstEnergy expects to make the following benefit payments from plan assets...

  • Page 107
    ...-based awards grant the right to receive, at the end of the period of restriction, a number of shares of common stock equal to the number of stock units set forth in the agreement subject to adjustment based on FirstEnergy's performance relative to financial and operational performance targets. 2011...

  • Page 108
    ... employees allowing them to purchase a specified number of common shares at a fixed grant price over a defined period of time. Stock option activity during 2011 was as follows: Weighted Average Grant-Date Fair Value $ 35.18 37.75 41.75 31.48 70.19 $ 38.17 Stock Option Activity Balance, January...

  • Page 109
    ... 31, 2007. All employees eligible for participation in the 401(k) savings plan are covered by the ESOP. In 2011, 2010 and 2009, shares of FE common stock were purchased on the market and contributed to participants' accounts. Total ESOP-related compensation expenses in 2011, 2010 and 2009, net...

  • Page 110
    ... extent that drug costs are reimbursed under the Medicare Part D retiree subsidy program. As retiree healthcare liabilities and related tax impacts under prior law were already reflected in FirstEnergy's consolidated financial statements, the change resulted in a charge to FirstEnergy's earnings in...

  • Page 111
    ...31, 2011. FirstEnergy 2011 Book income (loss) before provision for income taxes Federal income tax expense at statutory rate Increases (reductions) in taxes resulting fromAmortization of investment tax credits State income taxes, net of federal tax benefit State unitary tax adjustments Manufacturing...

  • Page 112
    ... transition charge Customer receivables for future income taxes Deferred MISO/PJM transmission costs Other regulatory assets - RCP Deferred sale and leaseback gain Nonutility generation costs Unamortized investment tax credits Unrealized losses on derivative hedges Pensions and OPEB Lease market...

  • Page 113
    ... which reduced taxable income and increased the amount of tax refunds that were applied to FirstEnergy's 2010 estimated federal tax payments. Due to the flow through of the Pennsylvania state income tax benefit for this change in accounting, FirstEnergy's effective tax rate was reduced by $6 million...

  • Page 114
    ... in Pennsylvania, West Virginia, Maryland and Virginia for certain subsidiaries of AE. Management believes that adequate reserves have been recognized and final settlement of these audits is not expected to have a material adverse effect on FirstEnergy's financial condition, results of operations...

  • Page 115
    ... their respective leases. They also have the right to purchase the facilities at the expiration of the basic lease term or any renewal term at a price equal to the fair market value of the facilities. The basic rental payments are adjusted when applicable federal tax law changes. In 2007, CEI and TE...

  • Page 116
    ...no material capital leases): Capital leases 2012 2013 2014 2015 2016 Years thereafter Total minimum lease payments Executory costs Net minimum lease payments Interest portion Present value of net minimum lease payments Less current portion Noncurrent portion $ FirstEnergy (In millions) $ 25 24 22 20...

  • Page 117
    ... assets classified in Other Deferred Charges on FirstEnergy's Consolidated Balance Sheet, including those recorded in connection with the Allegheny merger, include the following: Intangible Assets Actual (In millions) NUG contracts OVEC(1) Coal contracts(1)(3) FES customer contracts Energy contracts...

  • Page 118
    ...to construct, through its operating companies, the PATH Project, which is a high-voltage transmission line that was proposed to extend from West Virginia through Virginia and into Maryland, including modifications to an existing substation in Putnam County, West Virginia, and the construction of new...

  • Page 119
    ...plan for WP that disallowed certain costs, including an estimated amount for an adverse power purchase commitment related to the NUG entity for which WP may hold a variable interest. As of December 31, 2011, WP's reserve for this adverse purchase power commitment was $53 million, including a current...

  • Page 120
    ... of FirstEnergy, investments in companies owning nuclear power plants, financial derivatives, preferred stocks, securities convertible into common stock and securities of the trust funds' custodian or managers and their parents or subsidiaries. Available-For-Sale Securities FES and the Utility...

  • Page 121
    December 31, 2011(1) Cost Basis Debt securities FirstEnergy FES OE TE JCP&L Met-Ed Penelec Equity securities FirstEnergy FES TE JCP&L Met-Ed Penelec (1) December 31, 2010(2) Fair Value Cost Basis Unrealized Gains Unrealized Losses Fair Value Unrealized Gains Unrealized Losses (In millions) $ 1,...

  • Page 122
    ... allowances, employee benefit trusts and cost and equity method investments totaling $693 million as of December 31, 2011, and $259 million as of December 31, 2010, are excluded from the amounts reported above. Notes Receivable The table below provides the approximate fair value and related carrying...

  • Page 123
    ...following tables set forth financial assets and liabilities that are accounted for at fair value by level within the fair value hierarchy. There were no significant transfers between levels during 2011 and 2010. FIRSTENERGY December 31, 2011 Level 1 Assets Corporate debt securities Derivative assets...

  • Page 124
    ...held by the Utilities and FTRs held by FirstEnergy and classified as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010: Derivative Assets(1) December 31, 2009 Balance Realized gain (loss) Unrealized gain (loss) Purchases Issuances Sales Settlements Transfers in (out...

  • Page 125
    ... value hierarchy for the years ending December 31, 2011 and 2010: Derivative Asset FTRs December 31, 2010 Balance Realized gain (loss) Unrealized gain (loss) Purchases Issuances Sales Settlements Transfers in (out) of Level 3 December 31, 2011 Balance OE December 31, 2011 Level 1 Assets Corporate...

  • Page 126
    ... JCP&L and classified as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010: Derivative Asset NUG Contracts(1) December 31, 2009 Balance Realized gain (loss) Unrealized gain (loss) Purchases Issuances Sales Settlements Transfers in (out) of Level 3 December 31, 2010...

  • Page 127
    ... as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010: Derivative Asset NUG Contracts(1) December 31, 2009 Balance Realized gain (loss) Unrealized gain (loss) Purchases Issuances Sales Settlements Transfers in (out) of Level 3 December 31, 2010 Balance Realized...

  • Page 128
    ... as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010: Derivative Asset NUG Contracts(1) December 31, 2009 Balance Realized gain (loss) Unrealized gain (loss) Purchases Issuances Sales Settlements Transfers in (out) of Level 3 December 31, 2010 Balance Realized...

  • Page 129
    ... hedging relationship does not qualify for hedge accounting. Electricity forwards are used to balance expected sales with expected generation and purchased power. Natural gas futures are entered into based on expected consumption of natural gas at FirstEnergy's peaking units. Heating oil futures are...

  • Page 130
    ... instruments on FirstEnergy's Consolidated Balance Sheets: Derivatives not designated as hedging instruments: Derivative Assets Fair Value December 31, 2011 Power Contracts Current Assets Noncurrent Assets FTRs Current Assets Noncurrent Assets NUGs Interest Rate Swaps Current Assets Noncurrent...

  • Page 131
    ...2011 Unrealized Gain (Loss) Recognized in: Purchased Power Expense Revenues Other Operating Expense Realized Gain (Loss) Reclassified to: Purchased Power Expense Revenues Other Operating...The ineffective portion was immaterial. Changes in the fair value of certain contracts are deferred for future recovery ...

  • Page 132
    ...of their useful lives. The estimated fair values were based on estimated sales prices quoted in an active market. The result of the evaluation indicated that the carrying costs of the peaking facilities were not fully recoverable. FirstEnergy recorded impairment charges of $23 million during 2011 as...

  • Page 133
    ... of 2011. The amount and timing of all dividend declarations are subject to the discretion of the Board of Directors and its consideration of business conditions, results of operations, financial condition and other factors. In addition to paying dividends from retained earnings, OE, CEI, TE, Penn...

  • Page 134
    ... 31, 2011 (Dollar amounts in millions) FirstEnergy: FMBs Secured notes - fixed rate Secured notes - variable rate Total secured notes Unsecured notes - fixed rate Unsecured notes - variable rate Total unsecured notes Capital lease obligations Unamortized debt premiums Unamortized merger fair value...

  • Page 135
    ...bonds were used to construct environmental control facilities. The special purpose limited liability companies own the irrevocable right to collect non-bypassable environmental control charges from all customers who receive electric delivery service in MP's and PE's West Virginia service territories...

  • Page 136
    ... transition property. As of December 31, 2011, $287 million of the transition bonds were outstanding. Bondable transition property represents the irrevocable right under New Jersey law of a utility company to charge, collect and receive from its customers, through a non-bypassable TBC, the principal...

  • Page 137
    ...BANK LINES OF CREDIT FirstEnergy had no significant short-term borrowings as of December 31, 2011, and short-term borrowings of approximately $700 million as of December 31, 2010. FirstEnergy's available liquidity as of January 31, 2012, was as follows: Company FirstEnergy TrAIL AGC (1) Annual Fees...

  • Page 138
    ... FES AE Supply OE CEI TE JCP&L Met-Ed Penelec West Penn MP PE ATSI Penn (1) (2) (3) (In millions) No limitations. No limitation based upon blanket financing authorization from the FERC under existing open market tariffs. Excluding amounts which may be borrowed under the regulated companies' money...

  • Page 139
    ...-Ed and Penelec primarily relate to the decommissioning of the TMI-2 nuclear generating facility. FES and the applicable Utilities use an expected cash flow approach to measure the fair value of their nuclear decommissioning AROs. FirstEnergy, FES and certain Utilities maintain NDTs that are legally...

  • Page 140
    ... in the proceedings discussed below. The MDPSC opened a new docket in August 2007 to consider matters relating to possible "managed portfolio" approaches to SOS and other matters. "Phase II" of the case addressed utility purchases or construction of generation, bidding for procurement of demand...

  • Page 141
    ... all electric and gas utilities in the state to terminate service to residential customers for non-payment of bills. The MDPSC subsequently issued an order making various rule changes relating to terminations, payment plans, and customer deposits that make it more difficult for Maryland utilities to...

  • Page 142
    ... 2011, the PUCO denied those applications for rehearing. The PUCO also included a new standard for compliance with the statutory energy efficiency benchmarks by requiring electric distribution companies to offer "all available cost effective energy efficiency opportunities" regardless of their level...

  • Page 143
    ... MISO exit fees and PJM integration costs. Pennsylvania adopted Act 129 in 2008 to address issues such as: energy efficiency and peak load reduction; generation procurement; time-of-use rates; smart meters; and alternative energy. Among other things, Act 129 required utilities to file with the PPUC...

  • Page 144
    ... a levelized customer surcharge, with certain expenditures amortized over a ten-year period. Additionally, WP would be permitted to seek recovery of certain other costs as part of its revised SMIP that it currently intends to file in June 2012, or in a future base distribution rate case. Following...

  • Page 145
    ...Default Service Plan for the period June 1, 2013 through May 31, 2015. The Pennsylvania Companies' direct case was submitted in its entirety on December 20, 2011. Evidentiary hearings are scheduled for April 11-13, 2012, and a final order must be entered by the PPUC by August 17, 2012. WEST VIRGINIA...

  • Page 146
    ...responsive comments or studies on May 28, 2010 and reply comments on June 28, 2010. FirstEnergy and a number of other utilities, industrial customers and state commissions supported the use of the beneficiary pays approach for cost allocation for high voltage transmission facilities. Other utilities...

  • Page 147
    ... costs that, according to the MISO, attached to the utility prior to such TOs withdrawal from the MISO. On January 19, 2012, FirstEnergy filed a protest to the MISO's new Schedule 39 tariff. On February 27, 2012, FERC issued an order (February 2012 Order) dismissing ATSI's August 3, 2011 complaint...

  • Page 148
    ... years into the future. Based on those results, PJM announced on February 28, 2011, that its Board of Managers had decided to hold the PATH Project in abeyance in its 2011 RTEP and directed FirstEnergy and AEP, as the sponsoring transmission owners, to suspend current development efforts on the...

  • Page 149
    ..., 2011, FERC Staff issued a letter order that addressed the Revised Study Plans. In the order, FERC Staff approved FirstEnergy's Revised Study Plan, subject to a finding that the Project is located on "aboriginal lands" of the Seneca Nation. Based on this finding, FERC Staff directed FirstEnergy to...

  • Page 150
    ...parties. FirstEnergy guarantees energy and energy-related payments of its subsidiaries involved in energy commodity activities principally to facilitate or hedge normal physical transactions involving electricity, gas, emission allowances and coal. FirstEnergy also provides credit support to various...

  • Page 151
    ... complaints. The states of New Jersey and Connecticut filed CAA citizen suits in 2007 alleging NSR violations at the coal-fired Portland Generation Station against GenOn Energy, Inc. (formerly RRI Energy, Inc. and the current owner and operator), Sithe Energy (the purchaser of the Portland Station...

  • Page 152
    ... dating back to 1990 triggered the pre-construction permitting requirements under the PSD and NNSR programs. FGCO also received a request for certain operating and maintenance information and planning information for these same generating plants and notification that the EPA is evaluating whether...

  • Page 153
    ... how any final rules are ultimately implemented, FGCO's and AE Supply's future cost of compliance may be substantial and changes to FirstEnergy's operations may result. During 2011, FirstEnergy recorded pre-tax impairment charges of approximately $6 million ($1 million for FES and $5 million for AE...

  • Page 154
    ... quality standards applicable to FirstEnergy's operations. In 2004, the EPA established new performance standards under Section 316(b) of the CWA for reducing impacts on fish and shellfish from cooling water intake structures at certain existing electric generating plants. The regulations call for...

  • Page 155
    ..., on new and modified sources, including the scrubber project at the coal-fired Hatfield's Ferry Plant. These criteria are reflected in the current PA DEP water discharge permit for that project. AE Supply appealed the PA DEP's permitting decision, which would require it to incur estimated costs in...

  • Page 156
    ... been recognized on the consolidated balance sheet as of December 31, 2011, based on estimates of the total costs of cleanup, the Utility Registrants' proportionate responsibility for such costs and the financial ability of other unaffiliated entities to pay. Total liabilities of approximately $106...

  • Page 157
    ... several years, which costs are likely to be material. On February 16, 2012, the NRC issued a request for information to the licensed operators of 11 nuclear power plants, including Beaver Valley Power Station Units 1 and 2, with respect to the modeling of fuel performance as it relates to "thermal...

  • Page 158
    ... and regulated companies, support service billings, interest on affiliated company notes including the money pools and other transactions. FirstEnergy's competitive companies provide power through affiliated company power sales to meet a portion of the Ohio and Pennsylvania Companies' POLR...

  • Page 159
    ... formulas used and their bases include multiple factor formulas: each company's proportionate amount of FirstEnergy's aggregate direct payroll, number of employees, asset balances, revenues, number of customers, other factors and specific departmental charge ratios. Management believes that...

  • Page 160
    ... Mansfield Unit 1 sale and leaseback transaction. FIRSTENERGY SOLUTIONS CORP. CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2011 REVENUES OPERATING EXPENSES: Fuel Purchased power from affiliates Purchased power from non-affiliates Other operating expenses Pensions and OPEB mark...

  • Page 161
    ... SOLUTIONS CORP. CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2010 REVENUES OPERATING EXPENSES: Fuel Purchased power from affiliates Purchased power from non-affiliates Other operating expenses Pensions and OPEB mark-to-market adjustment Provision for depreciation General taxes...

  • Page 162
    ... SOLUTIONS CORP. CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2009 REVENUES OPERATING EXPENSES: Fuel Purchased power from affiliates Purchased power from non-affiliates Other operating expenses Pensions and OPEB mark-to-market adjustment Provision for depreciation General taxes...

  • Page 163
    FIRSTENERGY SOLUTIONS CORP. CONSOLIDATING BALANCE SHEETS As of December 31, 2011 ASSETS CURRENT ASSETS: Cash and cash equivalents ReceivablesCustomers Associated companies Other Notes receivable from associated companies Materials and supplies, at average cost Derivatives Prepayments and other ...

  • Page 164
    FIRSTENERGY SOLUTIONS CORP. CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2010 ASSETS CURRENT ASSETS: Cash and cash equivalents ReceivablesCustomers Associated companies Other Notes receivable from associated companies Materials and supplies, at average cost Derivatives Prepayments and ...

  • Page 165
    ...: Property additions Proceeds from asset sales Sales of investment securities held in trusts Purchases of investment securities held in trusts Loans to associated companies, net Customer acquisition costs Other Net cash used for investing activities Net change in cash and cash equivalents Cash...

  • Page 166
    ... asset sales Sales of investment securities held in trusts Purchases of investment securities held in trusts Loans to associated companies, net Customer acquisition costs Leasehold improvement payments to associated companies Other Net cash provided from (used for) investing activities Net change in...

  • Page 167
    FIRSTENERGY SOLUTIONS CORP. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2009 NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES: New FinancingLong-term debt Equity contributions from parent Redemptions and RepaymentsLong-...

  • Page 168
    ...the Competitive Energy Services segment. • • The Regulated Distribution segment distributes electricity through FirstEnergy's ten utility distribution companies, serving approximately 6 million customers within 67,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and...

  • Page 169
    the related costs of electricity generation, including purchased power and net transmission (including congestion) and ancillary costs charged by PJM and MISO (prior to June 1, 2011) to deliver energy to the segment's customers. Other/Corporate contains corporate items and other businesses that are ...

  • Page 170
    reporting primarily consist of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions. Electricity sales during the years ended 2011, 2010 and 2009, were $15,117 million, $12,523 million and $12,032 million, ...

  • Page 171
    ...20 million ($0.06 per basic and diluted share of common stock) increase to income taxes related to an Allegheny purchase accounting adjustment identified in the fourth quarter of 2011. FirstEnergy will revise its 2011 quarter filings prospectively when the corresponding 2012 quarters are filed. 156

  • Page 172
    FES CONSOLIDATED STATEMENTS OF INCOME (In millions) As Reported Revenues Other operating expense Pensions and OPEB mark-to-market adjustment Provision for depreciation Impairment of long-lived assets Operating Income (loss) Income before income taxes Income taxes Net Income (loss) Mar. 31 $ 1,388.0 ...

  • Page 173
    OE CONSOLIDATED STATEMENTS OF INCOME (In millions) As Reported Revenues Other operating expense Pensions and OPEB mark-to-market adjustment Provision for depreciation Operating Income Income before income taxes Income taxes Net Income Mar. 31 $ 508.0 89.0 - 22.0 73.0 56.0 20.0 36.0 $ 2010 June 30 ...

  • Page 174
    CEI CONSOLIDATED STATEMENTS OF INCOME (In millions) As Reported Revenues Other operating expense Pensions and OPEB mark-to-market adjustment Provision for depreciation Operating Income Income before income taxes Income taxes Net Income Earnings available to Parent Mar. 31 $ 330.1 31.2 - 18.1 50.3 24...

  • Page 175
    TE CONSOLIDATED STATEMENTS OF INCOME (In millions) As Reported Revenues Other operating expense Pensions and OPEB mark-to-market adjustment Provision for depreciation Operating Income Income before income taxes Income taxes Net Income Earnings available to Parent Mar. 31 $ 132.5 25.5 - 8.0 20.9 12.9...

  • Page 176
    JCP&L CONSOLIDATED STATEMENTS OF INCOME (In millions) As Reported Revenues Other operating expense Pensions and OPEB mark-to-market adjustment Provision for depreciation Operating Income Income before income taxes Income taxes Net Income Mar. 31 $ 704.0 96.0 - 28.0 80.0 53.0 24.0 29.0 $ 2010 June 30...

  • Page 177
    Met-Ed CONSOLIDATED STATEMENTS OF INCOME (In millions) As Reported Revenues Other operating expense Pensions and OPEB mark-to-market adjustment Provision for depreciation Operating Income Income before income taxes Income taxes Net Income Mar. 31 $ 473.1 102.0 - 12.8 34.8 24.6 12.3 12.3 $ 2010 June ...

  • Page 178
    Penelec CONSOLIDATED STATEMENTS OF INCOME (In millions) As Reported Revenues Other operating expense Pensions and OPEB mark-to-market adjustment Provision for depreciation Operating Income Income before income taxes Income taxes Net Income Mar. 31 $ 403.5 72.4 - 14.7 50.0 34.5 17.2 17.3 $ 2010 June ...

  • Page 179
    ...SERVICES TRANSFER AGENT AND REGISTRAR American Stock Transfer & Trust Company, LLC, (AST) acts as the Transfer Agent, Dividend Paying Agent, and Shareholder Records Agent. Shareholders wanting to transfer stock, or who need assistance or information, can send their stock or write to FirstEnergy Corp...

  • Page 180
    PRESORTED STD. U.S. POSTAGE PAID AKRON, OHIO PERMIT NO. 561 76 South Main Street, Akron, OH 44308 -1890