Allegheny Power 2015 Annual Report Download - page 157

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140
FIRSTENERGYSOLUTIONSCORP.
CONDENSEDCONSOLIDATINGSTATEMENTSOFCASHFLOWS
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FortheYearEndedDecember31,2013 FES FG NG Eliminations Consolidated
(Inmillions)
NETCASHPROVIDEDFROM(USEDFOR)
OPERATINGACTIVITIES$ (1,429) $ 753
$ 776 $ (22) $ 78
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CASHFLOWSFROMFINANCINGACTIVITIES:
NewFinancing
Shorttermborrowings,net 864
371
150
(954) 431
Equitycontributionfromparent 1,500
—
—
—
1,500
RedemptionsandRepayments
Longtermdebt (770)
(364) (90) 22
(1,202)
Shorttermborrowings,net (244)
(505) —
749
—
Tenderpremiums (67)
—
—
—
(67)
Other (4)
(5) —
—
(9)
Netcashprovidedfrom(usedfor)financing
activities1,279
(503) 60 (183) 653
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CASHFLOWSFROMINVESTINGACTIVITIES:
Propertyadditions (12)
(256) (449) —
(717)
Nuclearfuel —
—
(250)
—
(250)
Proceedsfromassetsales —
21
—
—
21
Salesofinvestmentsecuritiesheldintrusts —
—
940
—
940
Purchasesofinvestmentsecuritiesheldintrusts —
—
(1,000)
—
(1,000)
Loanstoaffiliatedcompanies,net 163
(15)
(77) 205
276
Other (1)
(1) —
—
(2)
Netcashprovidedfrom(usedfor)investing
activities150
(251) (836) 205 (732)
Netchangeincashandcashequivalents —
(1) — — (1)
Cashandcashequivalentsatbeginningofperiod —
3 — — 3
Cashandcashequivalentsatendofperiod $ —
$ 2 $ — $ — $ 2
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141
18.SEGMENTINFORMATION
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FirstEnergy'sreportablesegmentsareasfollows:RegulatedDistribution,RegulatedTransmissionandCES.
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FinancialinformationforeachofFirstEnergy’sreportablesegmentsispresentedinthetablesbelow.FESdoesnothaveseparate
reportableoperatingsegments.
Duringthefourthquarterof2015,managementconcludedthatFEV's331/3%equityinvestmentinGlobalHoldingwasnolongera
strategicassettoCES.Becauseofthisdecision,thesegmentreportingwasmodifiedtoreflecthowmanagementnowviewsand
makesinvestmentdecisionsregardingCESandGlobalHolding.Theexternalsegmentreportingisconsistentwiththeinternal
financialreportsusedbyFirstEnergy'sChiefExecutiveOfficer(itschiefoperatingdecisionmaker)toregularlyassessperformanceof
thebusinessandallocateresources.DisclosuresforFirstEnergy'sreportableoperatingsegmentsfor2014and2013havebeen
reclassifiedtoconformtothecurrentpresentationreflectingtheactivityofFEV'sinvestmentinGlobalHoldinginCorporate/Other.
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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locatedprimarilyinWestVirginia,VirginiaandNew
JerseythatMPandJCP&L,respectively,ownorcontractuallycontrol.Thesegment'sresultsreflectthecommoditycostsofsecuring
electricgenerationandthedeferralandamortizationofcertainfuelcosts.Thisbusinesssegmentcurrentlycontrols3,790MWsof
generationcapacity.
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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).Thissegmentalsoincludes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
primarily from transmission services provided pursuant to its PJM Tariff to LSEs. The segment's results also reflect the net
transmissionexpensesrelatedtothedeliveryofelectricityonFirstEnergy'stransmissionfacilities.

TheCESsegment,throughFESandAESupply,primarily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13,162MWsofcapacity.TheCES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andcapacitycostschargedbyPJMtodeliverenergytothesegment’scustomers.
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Corporatesupportandotherbusinessesthatdonotconstituteanoperatingsegment,interestexpenseonstandaloneholding
company debt and corporate income taxes are categorized as Corporate/Other for reportable business segment purposes.
Additionally, reconciling adjustments for the elimination of intersegment transactions are included in Corporate/Other. As of
December31,2015,Corporate/Otherhad$4.2billionofstandaloneholdingcompanylongtermdebt,ofwhich28%wassubjectto
variableinterestratesand$1.7billionwasborrowedundertheFErevolvingcreditfacility.