Allegheny Power 2013 Annual Report Download - page 45
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30
Revenues —
Total revenues increased by $80 million principally due to revenues from TrAIL, PATH and the Allegheny Utilities' transmission
assets in 2012 compared to 2011.
Revenues by transmission asset owner are shown in the following table:
For the Years Ended
December 31,
Revenues by Transmission Asset Owner 2012 2011 Increase
(In millions)
ATSI $ 213 $ 207 $ 6
TrAIL(1) 200 170 30
PATH(1) 18 14 4
Utilities(1) 309 269 40
Total Revenues $ 740 $ 660 $ 80
(1) Allegheny results include 12 months in 2012 and 10 months in 2011.
Operating Expenses —
Total operating expenses increased by $28 million principally due to the addition of TrAIL, PATH and the Allegheny Utilities'
transmission operating expenses for twelve months in 2012 compared to ten months in 2011, partially offset by reduced regulatory
asset amortization due to the completion in May 2011 of ATSI's deferred vegetation management cost recovery.
Other Expense —
Other expense increased by $1 million due to twelve months of TrAIL interest expense in 2012 compared to ten months in 2011.
Competitive Energy Services — 2012 Compared with 2011
Net income decreased by $162 million in 2012, compared to 2011. The decrease in net income was primarily due to a $569 million
gain ($358 million net of tax) on the partial sale of FEV's interest in Signal Peak in 2011 partially offset by 2011 impairment charges
of $315 million primarily resulting from the decision to deactivate six older coal-fired generating plants. In addition, higher operating
expenses were partially offset by increased direct and governmental aggregation sales and the inclusion of two additional months
of earnings from the Allegheny companies in 2012.
Results of operations for the year ended December 31, 2011, include only ten months of Allegheny results which have been
segregated from the pre-merger companies (FirstEnergy and its subsidiaries prior to the merger) for reporting and analysis.
Revenues —
Total revenues decreased by $376 million in 2012, compared to 2011, primarily due to a decline in POLR and structured sales and
the sale of RECs. Revenues were also adversely impacted by lower unit prices compared to 2011.These decreases were partially
offset by growth in direct, governmental aggregation and mass market sales and the inclusion of the Allegheny companies for twelve
months in 2012 compared to ten months in 2011.