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140
FIRSTENERGYSOLUTIONSCORP.
CONDENSEDCONSOLIDATINGSTATEMENTSOFCASHFLOWS
FortheYearEndedDecember31,2013
FES
FG
NG
Eliminations
Consolidated
(Inmillions)
NETCASHPROVIDEDFROM(USEDFOR)
OPERATINGACTIVITIES
$
(1,429
)
$
753
$
776
$
(22
)
$
78
CASHFLOWSFROMFINANCINGACTIVITIES:
NewFinancing
Shorttermborrowings,net
864
371
150
(954
)
431
Equitycontributionfromparent
1,500
—
—
—
1,500
RedemptionsandRepayments
Longtermdebt
(770
)
(364
)
(90
)
22
(1,202
)
Shorttermborrowings,net
(244
)
(505
)
—
749
—
Tenderpremiums
(67
)
—
—
—
(67
)
Other
(4
)
(5
)
—
—
(9
)
Netcashprovidedfrom(usedfor)financing
activities
1,279
(503
)
60
(183
)
653
CASHFLOWSFROMINVESTINGACTIVITIES:
Propertyadditions
(12
)
(256
)
(449
)
—
(717
)
Nuclearfuel
—
—
(250
)
—
(250
)
Proceedsfromassetsales
—
21
—
—
21
Salesofinvestmentsecuritiesheldintrusts
—
—
940
—
940
Purchasesofinvestmentsecuritiesheldintrusts
—
—
(1,000
)
—
(1,000
)
Loanstoaffiliatedcompanies,net
163
(15
)
(77
)
205
276
Other
(1
)
(1
)
—
—
(2
)
Netcashprovidedfrom(usedfor)investing
activities
150
(251
)
(836
)
205
(732
)
Netchangeincashandcashequivalents
—
(1
)
—
—
(1
)
Cashandcashequivalentsatbeginningofperiod
—
3
—
—
3
Cashandcashequivalentsatendofperiod
$
—
$
2
$
—
$
—
$
2
141
18.SEGMENTINFORMATION
FirstEnergy'sreportablesegmentsareasfollows:RegulatedDistribution,RegulatedTransmissionandCES.
FinancialinformationforeachofFirstEnergy’sreportablesegmentsispresentedinthetablesbelow.FESdoesnothaveseparate
reportableoperatingsegments.
Duringthefourthquarterof2015,managementconcludedthatFEV's331/3%equityinvestmentinGlobalHoldingwasnolongera
strategicassettoCES.Becauseofthisdecision,thesegmentreportingwasmodifiedtoreflecthowmanagementnowviewsand
makesinvestmentdecisionsregardingCESandGlobalHolding.Theexternalsegmentreportingisconsistentwiththeinternal
financialreportsusedbyFirstEnergy'sChiefExecutiveOfficer(itschiefoperatingdecisionmaker)toregularlyassessperformanceof
thebusinessandallocateresources.DisclosuresforFirstEnergy'sreportableoperatingsegmentsfor2014and2013havebeen
reclassifiedtoconformtothecurrentpresentationreflectingtheactivityofFEV'sinvestmentinGlobalHoldinginCorporate/Other.
The Regulated Distributionsegment distributes electricity through FirstEnergy’s ten utility operating companies, serving
approximatelysixmillioncustomerswithin65,000squaremilesofOhio,Pennsylvania,WestVirginia,Maryland,NewJerseyandNew
York,andpurchasespowerforitsPOLR,SOS,SSOanddefaultservicerequirementsinOhio,Pennsylvania,NewJerseyand
Maryland.ThissegmentalsoincludesregulatedelectricgenerationfacilitieslocatedprimarilyinWestVirginia,VirginiaandNew
JerseythatMPandJCP&L,respectively,ownorcontractuallycontrol.Thesegment'sresultsreflectthecommoditycostsofsecuring
electricgenerationandthedeferralandamortizationofcertainfuelcosts.Thisbusinesssegmentcurrentlycontrols3,790MWsof
generationcapacity.
TheRegulatedTransmissionsegmenttransmitselectricitythroughtransmissionfacilitiesownedandoperatedbyATSI,TrAIL,and
certainofFirstEnergy'sutilities(JCP&L,ME,PN,MP,PEandWP).Thissegmentalsoincludestheregulatoryassetassociatedwith
theabandonedPATHproject.Thesegment'srevenuesareprimarilyderivedfromratesthatrecovercostsandprovideareturnon
transmissioncapitalinvestment.ExceptfortherecoveryofthePATHabandonedprojectregulatoryasset,theserevenuesare
primarily from transmission services provided pursuant to its PJM Tariff to LSEs. The segment's results also reflect the net
transmissionexpensesrelatedtothedeliveryofelectricityonFirstEnergy'stransmissionfacilities.
TheCESsegment,throughFESandAESupply,primarilysupplieselectricitytoendusecustomersthroughretailandwholesale
arrangements,includingcompetitiveretailsalestocustomersprimarilyinOhio,Pennsylvania,Illinois,Michigan,NewJerseyand
Maryland,andtheprovisionofpartialPOLRanddefaultserviceforsomeutilitiesinOhio,PennsylvaniaandMaryland,includingthe
Utilities.Thisbusinesssegmentcurrentlycontrols13,162MWsofcapacity.TheCESsegment’snetincomeisprimarilyderivedfrom
electricgenerationsaleslesstherelatedcostsof electricitygeneration,includingfuel,purchasedpowerand nettransmission
(includingcongestion)andancillarycostsandcapacitycostschargedbyPJMtodeliverenergytothesegment’scustomers.
Corporatesupportandotherbusinessesthatdonotconstituteanoperatingsegment,interestexpenseonstandaloneholding
company debt and corporate income taxes are categorized as Corporate/Other for reportable business segment purposes.
Additionally, reconciling adjustments for the elimination of intersegment transactions are included in Corporate/Other. As of
December31,2015,Corporate/Otherhad$4.2billionofstandaloneholdingcompanylongtermdebt,ofwhich28%wassubjectto
variableinterestratesand$1.7billionwasborrowedundertheFErevolvingcreditfacility.