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Long-Term Debt Capacity

As of December 31, 2011, the Ohio Companies and Penn had the aggregate capability to issue approximately $2.7 billion of

additional FMBs on the basis of property additions and retired bonds under the terms of their respective mortgage indentures. The

issuance of FMBs by the Ohio Companies is also subject to provisions of their senior note indentures generally limiting the incurrence

of additional secured debt, subject to certain exceptions that would permit, among other things, the issuance of secured debt

(including FMBs) supporting pollution control notes or similar obligations, or as an extension, renewal or replacement of previously

outstanding secured debt. In addition, these provisions would permit OE and CEI to incur additional secured debt not otherwise

permitted by a specified exception of up to $232 million and $20 million, respectively. As a result of the indenture provisions, TE

cannot incur any additional secured debt. Met-Ed and Penelec had the capability to issue secured debt of approximately $376

million and $382 million, respectively, under provisions of their senior note indentures as of December 31, 2011. In addition, based

upon their respective FMB indentures, net earnings and available bondable property additions as of December 31, 2011, MP, PE

and WP had the capability to issue approximately $1.1 billion of additional FMBs in the aggregate. These companies may be further

limited by the financial covenants of the Facilities and subject to current regulatory approvals and applicable statutory and/or charter

limitations.

Based upon FGCO’s net earnings and available bondable property additions under its FMB indentures as of December 31, 2011,

FGCO had the capability to issue $2.1 billion of additional FMBs under the terms of that indenture. Based upon NGC’s net earnings

and available bondable property additions under its FMB indenture as of December 31, 2011, NGC had the capability to issue $2.0

billion of additional FMBs under the terms of that indenture.

FirstEnergy’s access to capital markets and costs of financing are influenced by the credit ratings of its securities. On March 21,

2011, S&P affirmed the ratings and stable outlook of FirstEnergy and its subsidiaries. On May 27, 2011, Fitch upgraded ratings for

certain subsidiaries and revised the outlook to stable from negative for FirstEnergy and FES. On August 18, 2011, Moody's

downgraded ratings for FES to Baa3 from Baa2 and revised FES' outlook to stable. On January 18, 2012, Moody's upgraded ratings

for TrAIL to A3 from Baa2. The following table displays FirstEnergy’s and its subsidiaries’ debt credit ratings as of February 24,

2012:

Issuer

FES

AE Supply

AGC

ATSI

CEI

JCP&L

Met-Ed

Penelec

Penn

TrAIL

Senior Secured

S&P

—

BBB

—

BBB

BBB+

BBB

BBB+

BBB

—

BBB+

Moody’s

—

Baa1

—

Baa1

—

Fitch

—

BBB

—

A-

BBB+

A-

BBB

—

A-

Senior Unsecured

S&P

BB+

BBB-

—

BBB-

—

BBB-

Moody’s

Baa3

Baa1

Baa3

Baa2

Baa3

Baa2

—

Baa3

—

Baa2

Fitch

BBB

BBB-

BBB

A-

BBB-

BBB+

BBB

—

BBB+

—

A-

BBB+

See Note 12, Capitalization of the Combined Notes to the Consolidated 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 to approximately $1 billion as of

December 31, 2010. As of December 31, 2011 and 2010, FirstEnergy had approximately $79 million and $13 million, respectively,

of restricted cash included in other current assets on the Consolidated Balance Sheet.

During 2011, FirstEnergy received $1.8 billion of cash dividends from its subsidiaries and paid $881 million in cash dividends to

common shareholders, including $20 million paid in March by AE to its former shareholders.