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Duringthesecondquarterof2015,FErefinanceda$200millionvariableinteresttermloan,maturingonDecember31,2016witha
new$200millionvariableinteresttermloanmaturingonMay29,2020.
OnJuly1,2015,FGandNGremarketedapproximately$43millionand$296million,respectively,ofPCRBs.ThePCRBswere
remarketedwithfixedinterestratesrangingfrom3.125%to4.00%andmandatoryputdatesrangingfromJuly2,2018toJuly1,
2021.
InAugust2015,JCP&Lissued$250millionof4.30%seniornotesdueJanuary2026.Theproceedsreceivedfromtheissuanceofthe
seniornoteswereusedtorepayaportionofJCP&L’sshorttermborrowingsundertheFirstEnergyregulatedcompanies'moneypool
andanexternalrevolvingcreditfacility.
Also,inthesecondquarterof2015,WPagreedtosell$150millionofnew4.45%FMBsdueSeptember2045andPEagreedtosell
$145 million of new 4.47% FMBs dueAugust 2045. The transactions closed on September 17, 2015 andAugust 17, 2015,
respectively.TheproceedsresultingfromtheissuanceoftheWPFMBswereusedtorepayWP’sborrowingsundertheFirstEnergy
regulatedcompanies'moneypoolandforothergeneralcorporatepurposes.TheproceedsresultingfromtheissuanceofthePE
FMBswereusedtorepayPE’s$145million5.125%FMBsthatmaturedonAugust15,2015.
InOctober2015,TrAILissued$75millionof3.76%seniornotesdueMay2025.Theproceedsresultingfromtheissuanceofthe
seniornoteswereused:(i)tofundcapitalexpenditures,includingwithrespecttoTrAIL'stransmissionexpansionplansand(ii)for
workingcapitalneedsandothergeneralbusinesspurposes.
Additionally,inOctober2015,ATSIissuedintotal$150millionofseniornotes:$75millionof4.00%seniornotesdueApril2026and
$75millionof5.23%seniornotesdueOctober2045.Theproceedsresultingfromtheissuanceoftheseniornoteswereused:(i)to
fundcapitalexpenditures,includingwithrespecttoATSI'stransmissionexpansionplans(ii)forworkingcapitalneedsandother
generalbusinesspurposesand(iii)torepayborrowingsundertheFirstEnergyregulatedcompanies'moneypool.
CashFlowsFromInvestingActivities
Cashusedforinvestingactivitiesin2015principallyrepresentedcashusedforpropertyadditions.Thefollowingtablesummarizes
investingactivitiesfor2015,2014and2013:
FortheYearsEndedDecember31,
CashUsedforInvestingActivities 2015 2014 2013
(Inmillions)
PropertyAdditions:
Regulateddistribution
$ 1,108
$ 972
$ 1,272
Regulatedtransmission952
1,329
461
Competitiveenergyservices 588
939
827
Otherandreconcilingadjustments 56
72
78
Nuclearfuel190
233
250
Proceedsfromassetsales (20)
(394)
(4)
Investments 107
68
72
Assetremovalcosts142
153
146
Other (1)
(13)
(9)
$ 3,122
$ 3,359
$ 3,093
Cashusedforinvestingactivityin2015ascomparedto2014wereimpactedbylowerpropertyadditionsof$608million,partially
offsetbya $374 millionreductionin proceedsreceived fromasset sales,as 2014includedproceedsfrom thesaleofcertain
hydroelectricassets.Thedeclineinpropertyadditionswereduetothefollowing:
•adecreaseof$351millionatCES,resultingfromtheabsenceofcapitalinvestmentsassociatedwiththeDavisBessesteam
generatorsthatwereplacedintoserviceinMay2014,
•adecreaseof$377millionatRegulatedTransmissionprimarilyrelatingtothetimingofcapitalinvestmentsassociatedwith
itsEnergizingtheFutureinvestmentprogram,partiallyoffsetby
•anincreaseof$136millionatRegulatedDistributionrelatingtoutilityspecificprojectinvestmentsandcostsassociatedwith
thePennsylvaniasmartmeterprogram.
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CONTRACTUALOBLIGATIONS
AsofDecember31,2015,ourestimatedcashpaymentsunderexistingcontractualobligationsthatweconsiderfirmobligationsare
asfollows:
ContractualObligations
Total
2016
20172018
20192020
Thereafter
(Inmillions)
Longtermdebt
(1)
$
20,238
$
1,039
$
3,435
$
3,499
$
12,265
Shorttermborrowings
1,708
1,708
—
—
—
Interestonlongtermdebt
(2)
12,523
1,015
1,839
1,500
8,169
Operatingleases
(3)
2,083
184
254
207
1,438
Capitalleases
(3)
150
36
55
32
27
Fuelandpurchasedpower
(4)
13,578
1,812
2,539
2,117
7,110
Capitalexpenditures
(5)
2,213
877
938
398
—
Pensionfunding
3,564
381
1,122
787
1,274
Total
$
56,057
$
7,052
$
10,182
$
8,540
$
30,283
(1)Excludesunamortizeddiscountsandpremiums,fairvalueaccountingadjustmentsandcapitalleases.
(2)InterestonvariableratedebtbasedonratesasofDecember31,2015.
(3)SeeNote6,Leases,oftheCombinedNotestoConsolidatedFinancialStatements.
(4)Amountsundercontractwithfixedorminimumquantitiesbasedonestimatedannualrequirements.
(5)AmountsrepresentcommittedcapitalexpendituresasofDecember31,2015.
ExcludedfromthetableaboveareestimatesforthecashoutlaysfrompowerpurchasecontractsenteredintobymostoftheUtilities
andunderwhichtheyprocurethepowersupplynecessarytoprovidegenerationservicetotheircustomerswhodonotchoosean
alternativesupplier.Althoughactualamountswillbedeterminedbyfuturecustomerbehaviorandconsumptionlevels,management
currentlyestimatesthesecashoutlayswillbeapproximately$3.5billionin2016,$0.5billionofwhichareexpectedtorelatetothe
Utilities'contractswithFES.
Thetableabovealsoexcludesregulatoryliabilities(seeNote14, RegulatoryMatters),AROs(see Note13,AssetRetirement
Obligations),reservesforlitigation,injuriesanddamages,environmentalremediation,andannualinsurancepremiums,including
nuclearinsurance(seeNote15,Commitments,GuaranteesandContingencies)sincetheamountandtimingofthecashpayments
areuncertain.Thetablealsoexcludesaccumulateddeferredincometaxesandinvestmenttaxcreditssincecashpaymentsfor
incometaxesaredeterminedbasedprimarilyontaxableincomeforeachapplicablefiscalyear.
NUCLEARINSURANCE
ThePriceAndersonActlimitsthepublicliabilitywhichcanbeassessedwithrespecttoanuclearpowerplantto$13.5billion
(assuming103unitslicensedtooperate)forasinglenuclearincident,whichamountiscoveredby:(i)privateinsuranceamountingto
$375millionand(ii)$13.1billionprovidedbyanindustryretrospectiveratingplanrequiredbytheNRCpursuantthereto.Undersuch
retrospectiveratingplan,intheeventofanuclearincidentatanyunitintheUnitedStatesresultinginlossesinexcessofprivate
insurance,upto$127million(butnotmorethan$19millionperunitperyearintheeventofmorethanoneincident)mustbe
contributedforeachnuclearunitlicensedtooperateinthecountrybythelicenseesthereoftocoverliabilitiesarisingoutofthe
incident.Basedontheirpresentnuclearownershipandleaseholdinterests,FirstEnergy’smaximumpotentialassessmentunder
theseprovisionswouldbe$509million(NG$501million)perincidentbutnotmorethan$76million(NG$75million)inanyoneyear
foreachincident.
InadditiontothepublicliabilityinsuranceprovidedpursuanttothePriceAndersonAct,FirstEnergyhasalsoobtainedinsurance
coverageinlimitedamountsforeconomiclossandpropertydamagearisingoutofnuclearincidents.FirstEnergyisamemberof
NEIL,whichprovidescoverage(NEILI)fortheextraexpenseofreplacementpowerincurredduetoprolongedaccidentaloutagesof
nuclearunits.UnderNEILI,FirstEnergy’ssubsidiarieshavepolicies,renewableannually,correspondingtotheirrespectivenuclear
interests,whichprovideanaggregateindemnityofuptoapproximately$1.96billion(NG$1.93billion)forreplacementpowercosts
incurredduringanoutageafteraninitial20weekwaitingperiod.MembersofNEILIpayannualpremiumsandaresubjectto
assessmentsiflossesexceedtheaccumulatedfundsavailabletotheinsurer.FirstEnergy’spresentmaximumaggregateassessment
forincidentsatanycoverednuclearfacilityoccurringduringapolicyyearwouldbeapproximately$15million(NG$15.1million).
FirstEnergyisinsuredastoitsrespectivenuclearinterestsunderpropertydamageinsuranceprovidedbyNEILtotheoperating
companyforeachplant.Underthesearrangements,upto$2.75billionofcoveragefordecontaminationcosts,decommissioning
costs,debrisremovalandrepairand/orreplacementofpropertyisprovided.FirstEnergypaysannualpremiumsforthiscoverageand
isliableforretrospectiveassessmentsofuptoapproximately$83million(NG$81million).