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100
Transfersbetweenlevelsarerecognizedattheendofthereportingperiod.Therewerenotransfersbetweenlevelsduringtheyears
endedDecember31,2015and2014.Thefollowingtablessetforththerecurringassetsandliabilitiesthatareaccountedforatfair
valuebylevelwithinthefairvaluehierarchy:
FirstEnergy
RecurringFairValueMeasurementsDecember31,2015
December31,2014
Level1
Level2
Level3
Total
Level1
Level2
Level3
Total
Assets
(Inmillions)
Corporatedebtsecurities
$
—
$
1,245
$
—
$
1,245
$
—
$
1,221
$
—
$
1,221
Derivativeassetscommoditycontracts
4
224
—
228
1
171
—
172
DerivativeassetsFTRs
—
—
8
8
—
—
39
39
DerivativeassetsNUGcontracts(1)
—
—
1
1
—
—
2
2
Equitysecurities(2)
576
—
—
576
592
—
—
592
Foreigngovernmentdebtsecurities
—
75
—
75
—
76
—
76
U.S.governmentdebtsecurities
—
180
—
180
—
182
—
182
U.S.statedebtsecurities
—
246
—
246
—
237
—
237
Other(3)
105
212
—
317
55
256
—
311
Totalassets
$
685
$
2,182
$
9
$
2,876
$
648
$
2,143
$
41
$
2,832
Liabilities
Derivativeliabilitiescommoditycontracts
$
(9
)
$
(122
)
$
—
$
(131
)
$
(26
)
$
(141
)
$
—
$
(167
)
DerivativeliabilitiesFTRs
—
—
(13
)
(13
)
—
—
(14
)
(14
)
DerivativeliabilitiesNUGcontracts(1)
—
—
(137
)
(137
)
—
—
(153
)
(153
)
Totalliabilities
$
(9
)
$
(122
)
$
(150
)
$
(281
)
$
(26
)
$
(141
)
$
(167
)
$
(334
)
Netassets(liabilities)(4)
$
676
$
2,060
$
(141
)
$
2,595
$
622
$
2,002
$
(126
)
$
2,498
(1)NUGcontractsaresubjecttoregulatoryaccountingtreatmentanddonotimpactearnings.
(2)NDTfundsholdequityportfolioswhoseperformanceisbenchmarkedagainsttheAlerianMLPIndexortheWellsFargoHybridandPreferred
SecuritiesREITindex.
(3)Primarilyconsistsofcashandshorttermcashinvestments.
(4) Excludes$7millionand$40millionasofDecember31,2015andDecember31,2014,respectively,ofreceivables,payables,taxesandaccrued
incomeassociatedwithfinancialinstrumentsreflectedwithinthefairvaluetable.
101
RollforwardofLevel3Measurements
ThefollowingtableprovidesareconciliationofchangesinthefairvalueofNUGcontractsandFTRsthatareclassifiedasLevel3in
thefairvaluehierarchyfortheperiodsendedDecember31,2015andDecember31,2014:
NUGContracts(1)FTRs
Derivative
Assets
Derivative
LiabilitiesNet
Derivative
Assets
Derivative
LiabilitiesNet
(Inmillions)
January1,2014
Balance$ 20 $ (222) $ (202) $ 4 $ (12) $ (8)
Unrealizedgain(loss) 2 (2) — 47(1) 46
Purchases — — — 26(16) 10
Settlements(20) 7151(38) 15(23)
December31,2014
Balance$ 2 $ (153) $ (151) $ 39 $ (14) $ 25
Unrealizedgain(loss) 2 (49) (47) (5) (7) (12)
Purchases — — — 22(11) 11
Settlements(3) 6562(48) 19(29)
December31,2015
Balance$ 1 $ (137) $ (136) $ 8 $ (13) $ (5)
(1)NUGcontractsaresubjecttoregulatoryaccountingtreatmentanddonotimpactearnings.
Level3QuantitativeInformation
ThefollowingtableprovidesquantitativeinformationforFTRsandNUGcontractsthatareclassifiedasLevel3inthefairvalue
hierarchyfortheperiodendedDecember31,2015:
FairValue,Net
(Inmillions)
Valuation
TechniqueSignificantInputRangeWeighted
AverageUnits
FTRs $ (5) ModelRTOauctionclearingprices($3.90)to$6.90 $1.00Dollars/MWH
NUGContracts $ (136) ModelGeneration
Regionalelectricityprices
400to3,871,000
$38.10to$45.60
839,000
$40.20
MWH
Dollars/MWH
FES
RecurringFairValueMeasurementsDecember31,2015December31,2014
Level1Level2Level3TotalLevel1Level2Level3Total
Assets(Inmillions)
Corporatedebtsecurities $ — $ 678 $ — $ 678 $ — $ 655 $ — $ 655
Derivativeassetscommoditycontracts 4 224 —228 1 171 — 172
DerivativeassetsFTRs — — 5 5 — — 2727
Equitysecurities(1)378 — — 378360 — — 360
Foreigngovernmentdebtsecurities — 59 — 59 — 57 — 57
U.S.governmentdebtsecurities — 23 — 23 — 46 —46
U.S.statedebtsecurities — 4 — 4 — 4 — 4
Other(2)— 184 —184 —199 —199
Totalassets$ 382 $ 1,172 $ 5 $ 1,559 $ 361 $ 1,132 $ 27 $ 1,520
Liabilities
Derivativeliabilitiescommoditycontracts $ (9) $ (122) $ — $ (131) $ (26) $ (141) $ — $ (167)
DerivativeliabilitiesFTRs — — (11) (11) — — (13) (13)
Totalliabilities$ (9) $ (122) $ (11) $ (142) $ (26) $ (141) $ (13) $ (180)
Netassets(liabilities)(3)$ 373 $ 1,050 $ (6) $ 1,417 $ 335 $ 991 $ 14 $ 1,340