-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OMG1u+WOh4vr9fUrnkATltFVEz7z67O8XqLQ/gLA7GtnbGic/kX/oD1Ttjb8rb9x PUVtND33q9Y5zdZXPQ4oLw== 0001031296-05-000163.txt : 20050520 0001031296-05-000163.hdr.sgml : 20050520 20050520125040 ACCESSION NUMBER: 0001031296-05-000163 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20050520 DATE AS OF CHANGE: 20050520 EFFECTIVENESS DATE: 20050520 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRSTENERGY CORP CENTRAL INDEX KEY: 0001031296 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 341843785 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: 1935 Act SEC FILE NUMBER: 070-10122 FILM NUMBER: 05847308 BUSINESS ADDRESS: STREET 1: 76 SOUTH MAIN ST CITY: AKRON STATE: OH ZIP: 44308-1890 BUSINESS PHONE: 3303845100 MAIL ADDRESS: STREET 1: 76 SOUTH MAIN ST CITY: AKRON STATE: OH ZIP: 44308-1890 35-CERT 1 fe_rule24.htm FIRSTENERGY FINANCING ACTIVITIES FOR THE QUARTER ENDED MARCH 31, 2005 FirstEnergy Financing Activities for the quarter ended March 31, 2005











SEC File No. 70-10122







SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549






CERTIFICATE PURSUANT TO

RULE 24

OF PARTIAL COMPLETION OF

TRANSACTIONS






FirstEnergy Corp.
 
 


 
 
------------------------------------------------------------------
In the matter of                 :
FirstEnergy Corp.                    :  Certificate Pursuant
                  :  to Rule 24 of Partial
                  :  Completion of
                  :  Transactions
                  :
SEC File No. 70-10122               :
(Public Utility Holding Company Act      :
of 1935)                      :                         :
-------------------------------------------------------------------   


TO THE MEMBERS OF THE SECURITIES AND EXCHANGE COMMISSION:

The undersigned, FirstEnergy Corp. (FirstEnergy) hereby certifies pursuant to Rule 24 of the Rules and Regulations under the Public Utility Holding Company Act of 1935 (the Act), that certain of the transactions proposed in the Applications, as amended, filed in SEC File No. 70-10122 have been carried out in accordance with the Commission’s Order dated June 30, 2003 as follows:

(1)  
During the period January 1, 2005 through March 31, 2005, there were no sales of common stock or preferred securities by FirstEnergy.

 (2)  
FirstEnergy purchased on the open market 305,452 shares of common stock pursuant to dividend reinvestment plans and 475,374 shares of restricted stock units were granted under employee benefit plans during the first quarter of 2005. The restrictions on restricted stock units lapse over a defined period of time or based on performance. Dividends are received on the restricted stock units and are reinvested in additional shares.

 (3)  
During the period January 1, 2005 through March 31, 2005, no FirstEnergy common stock was transferred to a seller of securities of a company being acquired.

 (4)  
During the period January 1, 2005 through March 31, 2005, there was no Long-term Debt and Preferred Securities issued by FirstEnergy. FirstEnergy issued the following Short-term Debt during the first quarter of 2005:

   
Transaction
  
Maturity
      
Transaction
  
   
       Date         
  
    Date   
  
   Rate  
  
      Amount      
  
CitiBank (FirstEnergy Revolver - 1 Billion 3 Year Facility) 
                          
FirstEnergy
    
1/3/2005
    
1/4/2005
    
5.33%
 
$
5,000,000.00
  
FirstEnergy
    
1/5/2005
    
1/12/2005
    
3.45%
 
$
110,000,000.00
  
FirstEnergy
    
1/6/2005
    
1/13/2005
    
3.45%
 
$
45,000,000.00
  
FirstEnergy
    
1/20/2005
    
1/27/2005
    
3.45%
 
$
60,000,000.00
  
FirstEnergy
    
1/31/2005
    
2/1/2005
    
5.33%
 
$
5,000,000.00
  
 
 
 
1

 
(5)  
During the period January 1, 2005 through March 31, 2005, the following short-term debt was issued by the Utility Subsidiaries:

   
Transaction
  
Maturity
      
Transaction
  
   
       Date      
  
    Date   
  
   Rate     
  
      Amount     
  
FirstMerit (Ohio Edison Company (OE) Bi-Lateral Facility)
                  
OE
    
1/26/2005
    
Various*
    
3.06%
 
$
10,000,000.00
  
OE
    
1/28/2005
    
Various*
    
3.13%
 
$
5,000,000.00
  
OE
    
1/31/2005
    
Various*
    
3.25%
 
$
7,000,000.00
  
OE
    
2/2/2005
    
Various*
    
3.25%
 
$
4,000,000.00
  
OE
    
3/25/2005
    
3/29/2005
    
3.25%
 
$
14,000,000.00
  
                           
* Various date between 1/27/2005 to 2/4/2005
                
 
        
                           
KeyBank (OE Bi-Lateral Facility)
                          
OE
    
12/31/2004
    
1/4/2005
    
3.43%
 
$
7,000,000.00
  
OE
    
1/3/2005
    
1/4/2005
    
3.40%
 
$
3,000,000.00
  
OE
    
1/6/2005
    
1/7/2005
    
3.42%
 
$
19,000,000.00
  
OE
    
1/12/2005
    
1/13/2005
    
3.39%
 
$
19,000,000.00
  
OE
    
1/31/2005
    
2/1/2005
    
3.67%
 
$
20,000,000.00
  
OE
    
2/2/2005
    
2/3/2005
    
3.64%
 
$
8,000,000.00
  
OE
    
3/28/2005
    
3/29/2005
    
3.93%
 
$
4,000,000.00
  
OE
    
3/30/2005
    
3/31/2005
    
3.90%
 
$
6,000,000.00
  

Under the Utility Money Pool, the principal balance of borrowings at the end of the first quarter of 2005 and average interest rate during the first quarter of 2005 are as follows:

Regulated Money Pool
  
Average
  
Principal
  
Loan to/(Borrowing from):    
  
Interest Rate
  
      Balance      
  
           
OE
    
2.6591%
 
$
688,256,709
  
Pennsylvania Power Company (Penn)
    
2.6591%
 
  
(10,461,117
)
The Cleveland Electric Illuminating Company (CEI)
    
2.6591%
 
  
(457,154,966
)
The Toledo Edison Company (TE)
    
2.6591%
 
  
(394,494,352
)
American Transmission Systems, Incorporated (ATSI)
    
2.6591%
 
  
6,609,162
  
Jersey Central Power & Light Company (JCP&L)
    
2.6591%
 
  
(204,793,846
)
Metropolitan Edison Company (Met-Ed)
    
2.6591%
 
  
(108,677,559
)
Pennsylvania Electric Company (Penelec)
    
2.6591%
 
  
(69,692,586
)
York Haven Power Company
    
2.6591%
 
  
14,476,350
  

 (6)  
During the first quarter of 2005, there were no financings consummated by any Non-Utility subsidiary that were not exempt under rule 52.
 
(7)  
During the first quarter of 2005, the following guarantees were made by FirstEnergy to support activities of its subsidiaries:
 
 
2
 
 
           
Purpose of
  
Beneficiary
  
Amount
  
Terms
  
Guarantee
  
               
FirstEnergy Solutions Corp. (FES) (Trading - Electric)
                    
Bank of America NA
  
$
5,000,000
    
(a)
 
  
(c)
 
Consumers Energy
  
$
750,000
    
(a)
 
  
(c)
 
MISO
  
$
20,000,000
    
(b)
 
  
(d)
 
                     
FirstEnergy Service Company
                    
MISO
  
$
6,400,000
    
(b)
 
  
(d)
 
                   
FirstEnergy Generation Corp. (Fuel Marketing / Coal)
                    
Dominion Energy Marketing
  
$
1,000,000
    
(a)
 
  
(e)
 
Peabody COALTRADE
  
$
3,500,000
    
(a)
 
  
(e)
 
                   
Met-Ed (Long-term Power Supply)
                    
Constellation Power Source
  
$
4,000,000
    
(f)
 
  
(g)
 
                     
Penelec (Long-term Power Supply)
                    
Constellation Power Source
  
$
4,000,000
    
(f)
 
  
(h)
 
                     
RPC Mechanical, Inc. - HVAC
                    
National City Bank
  
$
4,900,000
    
1 year
    
(i)
 
   
(a)  
Such guarantees are issued for a one-year term, with a ten-day termination right by FirstEnergy.

(b)  
This is a continuing guaranty issued to the Midwest Independent Transmission System Operator (MISO), with a ten-day termination right by FirstEnergy.

(c)  
Parental guarantees issued by FirstEnergy to provide credit support for electric power purchases by subsidiary.

(d)  
Parental guarantees issued by FirstEnergy to provide credit support for transmission and electric market activities in MISO.

(e)  
Credit backstop to support coal purchases and emission trading.

(f)  
Expires on December 31, 2010.

(g)  
Parental guaranty issued by FirstEnergy to support the long-term power purchase by Metropolitan Edison Company from Constellation.

(h)  
Parental guaranty issued by FirstEnergy to support the long-term power purchase by Pennsylvania Electric Company from Constellation.

 
    (i)
Credit backstop to support revolving credit agreement.

The following Letters of Credits (LOC) were issued during the first quarter of 2005:

       
Purpose of
  
Beneficiary
  
   Amount   
  
     LOC   
  
           
Penn
          
U.S. Department of Labor - Workers Comp Programs
  
$
250,000
    
(a)
 

(a)  
Collateral held for the Pennsylvania employees’ workers Compensation Program. Automatic renewal of previous issued LOC.
 
 
3
 
 
 (8)    
During the first quarter of 2005, FirstEnergy entered into two (2) transactions designed to hedge the fair value of a portion of its fixed-rate long-term debt portfolio against decreases in interest rates. The hedge structures are fixed - for - floating interest rate swaps, whereby FirstEnergy will receive fixed payments equivalent to the fixed coupon rate of the bond being hedged, and pay floating rate payments based on the 6-month London Interbank Offering Rates (LIBOR) plus or minus an applicable spread. The debt instruments being hedged, notional amounts, counterparties, and principal terms of the fair value hedges are filed pursuant to request for confidential treatment.
 
 (9)   
Investments made during the first quarter of 2005 in any intermediate subsidiary or financing subsidiary are as follows:
 
Company
  
     Investment   
 
   
(In Thousands $)
  
       
Penn Power Funding LLC
  
$
1,000
  

(10)
There were no U-6B-2 filed during the first quarter of 2005.
 
(11)   
There were no jurisdictional financing transactions during the first quarter of 2005.
 
(12)   
The following table presented in thousands, provides the capital structure of FirstEnergy on a consolidated basis and each Utility Subsidiary as of the end of the first quarter of 2005.
 
FirstEnergy
  
  Amount   
  
  Ratio  
  
Common Equity
  
$
8,620,953
    
43.44
%
Preferred Stock
    
238,719
    
1.20
%
Long-Term Debt
    
10,680,061
    
53.80
%
Short-Term Debt
    
310,125
    
1.56
%
Total Capitalization
  
$
19,849,858
    
100.00
%
               
OE
              
Common Equity
  
$
2,501,314
    
58.07
%
Preferred Stock
    
100,070
    
2.32
%
Long-Term Debt
    
1,496,057
    
34.73
%
Short-Term Debt
    
210,041
    
4.88
%
Total Capitalization
  
$
4,307,482
    
100.00
%
               
CEI
              
Common Equity
  
$
1,810,392
    
41.95
%
Preferred Stock
    
-
    
-
%
Long-Term Debt
    
2,034,471
    
47.14
%
Short-Term Debt
    
470,732
    
10.91
%
Total Capitalization
  
$
4,315,595
    
100.00
%
               
TE
              
Common Equity
  
$
832,493
    
47.73
%
Preferred Stock
    
126,000
    
7.22
%
Long-Term Debt
    
391,081
    
22.42
%
Short-Term Debt
    
394,761
    
22.63
%
Total Capitalization
  
$
1,744,335
    
100.00
%

Penn
          
Common Equity
  
$
333,741
    
61.36
%
Preferred Stock
    
39,105
    
7.19
%
Long-Term Debt
    
160,413
    
29.49
%
Short-Term Debt
    
10,644
    
1.96
%
Total Capitalization
  
$
543,903
    
100.00
%
               
 
 
4
 
JCP&L
              
Common Equity
  
$
3,149,797
    
68.20
%
Preferred Stock
    
12,649
    
0.27
%
Long-Term Debt
    
1,251,591
    
27.10
%
Short-Term Debt
    
204,794
    
4.43
%
Total Capitalization
  
$
4,618,831
    
100.00
%
               
 
Met-Ed
          
Common Equity  
$
 1,292,944     60.61
%
Preferred Stock
    
-
    
-
%
Long-Term Debt
    
731,609
    
34.30
%
Short-Term Debt
    
108,677
    
5.09
%
Total Capitalization
  
$
2,133,230
    
100.00
%
               
Penelec
              
Common Equity
  
$
1,321,407
    
64.42
%
Preferred Stock
    
-
    
-
%
Long-Term Debt
    
490,220
    
23.90
%
Short-Term Debt
    
239,693
    
11.68
%
Total Capitalization
  
$
2,051,320
    
100.00
%

(13)  
The following table presented in thousands provides retained earnings analysis of FirstEnergy on a consolidated basis and each Utility Subsidiary as of the end of the first quarter 2005.

   
FirstEnergy
  
OE     
  
CEI    
  
TE     
  
Balance, December 31, 2004
  
$
1,856,863
  
$
442,198
  
$
553,740
  
$
191,059
  
Net Income
    
159,726
    
56,757
    
15,472
    
365
  
Cash Dividends on Preferred Stock
    
-
    
(659
)
  
(1,429
)
  
(2,211
)
Cash Dividends on Common Stock
    
(135,542
)
  
(47,000
)
  
(55,000
)
  
-
  
Other
    
-
    
-
    
(1,495
)
  
-
  
Balance, March 31, 2005
  
$
1,881,047
  
$
451,296
  
$
511,288
  
$
189,213
  
                           
 
    
Penelec
    
JCP&L
   
Met-Ed
   
Penelec
 
Balance, December 31, 2004
  
$
87,695
  
$
43,271
  
$
38,966
  
$
46,068
  
Net Income
    
15,002
    
14,519
    
16,476
    
21,384
  
Cash Dividends on Preferred Stock
    
(640
)
  
(125
)
  
-
    
-
  
Cash Dividends on Common Stock
    
(8,000
)
  
(20,000
)
  
(9,000
)
  
(5,000
)
Other
    
-
    
-
    
-
    
1
  
Balance, March 31, 2005
  
$
94,057
  
$
37,665
 
$
46,442
  
$
62,453
  
 
(14)      
During the first quarter of 2005, there was no change to any of the credit ratings of FirstEnergy Corp. or any of its subsidiaries by any of the nationally recognized credit rating agencies.

(15)    
FirstEnergy’s aggregate investment includes all amounts invested, or commitments to be invested, in exempt wholesale generators (EWGs), for which there is recourse, directly or indirectly, to the registered holding company. Accordingly, FirstEnergy’s aggregate investment as of March 31, 2005 is as follows:

   
(In Thousands)
  
FE Generation Corp.
  
$
979,479
  
Termobarranquilla S. A.
    
46,551
  
Aggregate Investment in EWGs
  
$
1,026,030*
  
 
*  Aggregate investment amounts reflected here include LOCs and guarantees, but do not include any goodwill or other fair value adjustments.
 
5

Aggregate Investment as a Percentage of FirstEnergy and Subsidiary Companies:

Total capitalization
  
$
19,849,858
    
5.2
%
Net utility plant
  
$
13,550,063
    
7.6
%
Total consolidated assets
  
$
31,260,563
    
3.3
%
Market value of common equity
  
$
13,836,632
    
7.4
%

(16)    
Set forth below is a summary of the direct or indirect investments as defined in SEC Rule 53(a) by FirstEnergy, as of March 31, 2005 in EWGs, as well as the percentage of equity ownership.

 
 
 
Associate Company
FirstEnergy’s
Investment at
03/31/05
    ($000)*    
 
FirstEnergy’s
% Equity
   Ownership  
 
          Owners not affiliated with FirstEnergy            
 
  Name of Entity   
Type of Entity
         
Termobarranquilla S.A. (a)
$           46,551
0%
ABB Energy Ventures, Inc.
Foreign
     
Lancaster Steel
Foreign
     
Distral Group
Foreign
     
Corp. Electrica
Foreign
     
Corp. Electrica
  
     
De la Costa
  
     
Atlantica
  
     
Darby Mazzanine
  
     
Holdings, LLC
  
     
 
  
FE Generation Corp.
          979,479
100%
Not Applicable
N/A
         
Total Aggregate Investment in EWGs
 
$       1,026,030
      
 
 (*)    Aggregate investment amounts reflected here include LOCs and guarantees, but do not include any goodwill or other fair value adjustments.
 
 (a)    FirstEnergy sold Termobarranquilla S.A. on January 31, 2004. The remaining investment represents outstanding LOCs issued by FirstEnergy.
 
 (17)  
FirstEnergy and Subsidiary Companies Consolidated Capitalization Ratios as of March 31, 2005:
 

   
Amount (000’s)
  
Ratio 
  
Common equity
 
$
8,620,953
    
43.4
%
Preferred stock not subject to mandatory redemption
    
238,719
    
1.2
%
Long-term debt
    
10,680,061
    
53.8
%
Notes payable
    
310,125
    
1.6
%
               
Total capitalization
  
$
19,849,858
    
100.0
%
 
 (18)  
Market-to-book ratio of FirstEnergy and Subsidiary Companies common stock at March 31, 2005:
 
 
    
Closing Market Price per Share   $
41.95
  
Book Value per Share
 
$
26.25
  
Market-to Book Ratio of Common Stock
    
159.8
%

(19)  
No new EWG/FUCO project covered by the Modified Rule 53 Test in which FirstEnergy has invested or committed to invest during the first quarter of 2005.
 
 
6
 
 
 (20) 
Analysis of Growth in Retained Earnings for FirstEnergy and Subsidiary Companies:
 
   
(In Thousands)
  
Retained Earnings as of 03/31/05
  
$
1,881,047
  
Retained Earnings as of 12/31/04
    
1,856,863
  
Growth in Retained Earnings
  
$
24,184
  
         
Analysis of Growth in Retained Earnings:
        
Income contribution from regulated utility companies
  
$
125,591
  
Income contribution from EWGs
    
25,155
  
Income contribution from all other companies
    
35,872
  
FirstEnergy Holding and Service companies
    
(26,892
)
Cash dividends declared on common stock
    
(135,542
)
Growth in Retained Earnings
  
$
24,184
  

(21)  
Statements of Operations for the period ended March 31, 2005 for FirstEnergy Generation Corp. will be filed separately under a request for confidential treatment under Rule 104 (b)


7

SIGNATURE


The undersigned registered holding company has duly caused this quarterly report to be signed on its behalf by the undersigned officer thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935.


     
 
FirstEnergy Corp.
     
     
     
May 20, 2005
    
 
By:
  /s/  Harvey L. Wagner
 
        Harvey L. Wagner
  Vice President, Controller
and Chief Accounting Officer
(Principal Accounting Officer)



8


 EX-99 2 ex-a.htm CERTIFICATE Certificate

Exhibit A

FirstEnergy Corp.
76 South Main Street, Akron, Ohio 44308


Certificate


Pursuant to the requirements of Rule 24 of the Public Utility Holding Company Act of 1935, the undersigned certifies that:
A copy of certificate pursuant to Rule 24 related to FirstEnergy Corp.’s financing activities, for the period ended December 31, 2004, was filed with the New Jersey and Pennsylvania state commissions having jurisdiction over the electric retail rates of the company’s public utility subsidiary companies. As requested by the Ohio State Commission, a letter was sent to notify the commission having jurisdiction over the electric retail rates of the company’s public utility subsidiary companies of the URL address where the filing could be accessed on the SEC Web site.
The names and addresses of these state commissions are as follows:
New Jersey Division of Energy
Board of Public Utilities
Two Gateway Center
Newark, NJ 07102
Commonwealth of Pennsylvania*
Public Utility Commission
P.O. Box 3265
Harrisburg, PA 17105-3265
The Public Utilities Commission of Ohio
180 E. Broad Street
Columbus, Ohio 43215-3793

*
A conformed copy of the publicly available report was filed with the Pennsylvania Public Utility Commission.

     
 
FirstEnergy Corp.
     
     
     
May 20, 2005
    
 
By:
 
 
Harvey L. Wagner
   Vice President, Controller
and Chief Accounting Officer
(Principal Accounting Officer)



Note:
Pennsylvania Electric Company (Penelec) is also subject to retail rate regulation by the New York Public Service Commission with respect to retail service to approximately 3,700 customers in Waverly, New York served by Waverly Electric Power & Light Company, a Penelec subsidiary. Waverly Electric's revenues are immaterial, accounting for less than 1% of Penelec's total operating revenues.
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