Allegheny Power 2013 Annual Report Download - page 167

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152
19. SEGMENT INFORMATION
Financial information for each of FirstEnergy’s reportable segments is presented in the tables below. FES does not have separate
reportable operating segments.
The Regulated Distribution segment distributes electricity through FirstEnergy’s ten utility operating companies, serving
approximately six million customers within 65,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and
New York, and purchases power for its POLR, SOS, SSO and default service requirements in Ohio, Pennsylvania, New Jersey and
Maryland. This segment also includes regulated electric generation facilities in West Virginia and New Jersey that MP and JCP&L,
respectively, own or contractually control. Its results reflect the commodity costs of securing electric generation and the deferral
and amortization of certain fuel costs. This business segment currently controls approximately 3,780 MWs of generation capacity,
including the net transfer to Regulated Distribution of 1,476 MWs of capacity associated with the Harrison and Pleasants asset
swap which occurred on October 9, 2013.
The Regulated Transmission segment transmits electricity through transmission facilities owned and operated by ATSI, TrAIL, and
certain of FirstEnergy's utilities (JCP&L, ME, PN, MP, PE and WP) and the regulatory asset associated with the abandoned PATH
project. The segment's revenues are primarily derived from rates that recover costs and provide a return on transmission capital
investment. Except for the recovery of the PATH abandoned project regulatory asset, these revenues are derived from transmission
services provided pursuant to the PJM open access transmission tariff to LSEs. Its results also reflect the net transmission expenses
related to the delivery of electricity on FirstEnergy's transmission facilities.
The Competitive Energy Services segment, through FES and AE Supply, supplies electricity to end-use customers through retail
and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan,
New Jersey and Maryland, and the provision of partial POLR and default service for some utilities in Ohio, Pennsylvania and
Maryland, including the Utilities. This business segment currently controls approximately 14,000 MWs of capacity, including 885
MWs of capacity subject to RMR arrangements with PJM and excluding 1,476 MWs of generation capacity transferred to Regulated
Distribution in connection with the Harrison and Pleasants asset swap that occurred on October 9, 2013. This segment also purchases
electricity to meet sales obligations. The segment’s net income is primarily derived from electric generation sales less the related
costs of electricity generation, including fuel, purchased power and net transmission (including congestion) and ancillary costs
charged by PJM to deliver energy to the segment’s customers.
The Other/Corporate Segment contains corporate items and other businesses that are below the quantifiable threshold for separate
disclosure as a reportable segment. Reconciling adjustments primarily consist of elimination of intersegment transactions.