U-9C-3 1 fe_u9c3.htm FIRSTENERGY CORP. QUARTERLY REPORT ENDED JUNE 30, 2005 FirstEnergy Corp. Quarterly Report ended June 30, 2005

 


U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-9C-3




QUARTERLY REPORT PURSUANT TO RULE 58 OF
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935

For the quarterly period ended June 30, 2005










                   FirstEnergy Corp. (File No. 70-09501)                   
(Name of Registered Holding Company)

                76 South Main Street, Akron, Ohio 44308                
(Address of Principal Executive Offices)
 
 
 





FirstEnergy Corp.


Quarterly Report Pursuant to Rule 58 of
the Public Utility Holding Company Act of 1935

For the quarterly period ended June 30, 2005 



Table of Contents

Item
  
 
    
No.
  
                                                                                                              Title
  
Page
         
1
  
Organization Chart
  
1-3
         
2
  
Issuances and Renewals of Securities and
    
   
Capital Contributions
  
4
         
3
  
Associate Transactions
  
5-6
         
4
  
Summary of Aggregate Investment
  
7
         
5
  
Other Investments
  
8
         
6
  
Financial Statements and Exhibits:
    
         
   
A - Financial Statements
  
9
         
   
B - Exhibits
  
10
         
   
C - Certificate of FirstEnergy Corp.
  
10
         
   
Signature
  
11
         




 Note:  All dollar amounts shown in this Form U-9C-3 are expressed in
                 thousands unless otherwise noted.
 




ITEM 1 - ORGANIZATION CHART

 
 
Name of Reporting Company
  
Energy (ERC) or Gas (GRC) Related Company
  
 
Date of Organization
  
 
State of Organization
  
Percentage of Voting Securities Held
  
 
Nature of Business
  
                       
FirstEnergy Corp. (a)
                      
                       
FirstEnergy Ventures Corp. (b)
                      
Bay Shore Power Company (d)
    
ERC
    
01/26/1998
    
Ohio
    
100.0    
   
(h)
  
Centerior Energy Services, Inc. (d)
    
ERC
    
06/01/1994
    
Ohio
    
100.0    
   
(i)
 
Eastroc Technologies, LLC (c)
    
ERC
    
04/30/1996
    
Delaware
    
50.0 **
    
(j)
 
Engineered Processes, Ltd. (c)
    
ERC
    
12/30/1996
    
Ohio
    
50.0 **
    
(j)
 
Warrenton River Terminal, Ltd. (d)
    
ERC
    
09/03/1996
    
Ohio
    
100.0    
   
(k)
 
                                 
FirstEnergy Facilities Services Group, LLC (b)
                                
Dunbar Mechanical, Inc. (e)
    
ERC
    
07/16/1956
    
Ohio
    
100.0    
   
(g)
 
Edwards Electrical & Mechanical, Inc. (e)
    
ERC
    
02/28/1968
    
Indiana
    
100.0    
   
(g)
 
Roth Bros., Inc. (e)
    
ERC
    
09/06/1947
    
Ohio
    
100.0    
   
(g)
 
The Hattenbach Company (e)
    
ERC
    
03/21/1969
    
Ohio
    
100.0    
   
(l)
 
R.P.C. Mechanical, Inc. (e)
    
ERC
    
04/21/1959
    
Ohio
    
100.0    
   
(g)
 
                                 
FirstEnergy Solutions Corp. (b)
    
ERC
    
08/08/1997
    
Ohio
    
100.0    
   
(m)
 
FirstEnergy Engineering, Inc. (f)
    
ERC
    
08/09/1996
    
Ohio
    
100.0    
   
(q)
 
                                 
GPU Diversified Holdings, LLC (b)
    
ERC
    
08/03/2000
    
Delaware
    
100.0    
   
(o)
 
GPU Solar, Inc.
    
ERC
    
11/07/1997
    
New Jersey
    
50.0 **
    
(p)
 
GPU Distributed Power, Inc. *
    
ERC
    
02/29/2000
    
Delaware
    
100.0    
       
Ballard Power Systems Inc. (c)
    
ERC
                      
(r)
 
     
 
                      
 
  
Automated Power Exchange, Inc. (c)
    
ERC
                
1.16 **
    
(m)
 
     
 
                          
PowerSpan Corp. (c)
    
ERC
    
05/01/1997
    
Delaware
    
24.06 **
    
(n)
 
                                 
Utility.com, Inc. (c) *
    
ERC
                
5.0 **
    
(m)
 
                                 
                                 
                                 
*    Inactive
                                
**  Set forth the percentage of interest held directly or indirectly by FirstEnergy Corp.

1

ITEM 1 - ORGANIZATION CHART (Continued)

     (a)
FirstEnergy Corp., a registered holding company, holds securities directly or indirectly in the energy-related companies set below its name.
     (b)
These companies are direct wholly owned subsidiaries of FirstEnergy Corp.
(c)  
FirstEnergy Corp. owns an interest directly or indirectly in these energy-related companies or venture capital funds set below its name.
(d)  
These companies are direct wholly owned subsidiaries of FirstEnergy Ventures Corp.
(e)  
These companies are direct wholly owned subsidiaries of FirstEnergy Facilities Services Group, LLC.
(f)  
This company is direct wholly owned subsidiary of FirstEnergy Solutions Corp.
(g)  
This subsidiary provides HVAC equipment installation and services, facilities management, and energy management.
(h)  
This subsidiary owns and operates a petroleum coke disposal facility that will supply steam for the Bay Shore Power Plant and to BP Amoco Corporation.
(i)  
This subsidiary provides various consulting services related to energy management and procurement.
(j)  
This subsidiary holds the patent on plaster, which is manufactured using the By-products of coal-fired generation facilities.
(k)  
This subsidiary owns facilities for the transloading of bulk materials (primarily coal) on the Ohio River. The coal is in part used by the FirstEnergy Operating Companies at various generation facilities.
(l)  
This subsidiary provides refrigeration sales and services to commercial entities.
(m)  
This subsidiary or investment engages in the brokering and marketing of energy commodities.
(n)  
This company was formed to utilized advanced technology to reduce emissions of NOx, SO2 and particulate matter from utility generation facilities.
(o)  
This energy-related company holds securities directly in the energy-related company set below its name.
(p)  
This subsidiary is involved in the development and commercialization of photovoltaics.
(q)  
This subsidiary provides engineering services.
(r)  
Ballard Generations Systems Inc. develops stationary fuel cell systems.


2

ITEM 1 - ORGANIZATION CHART (Continued)


Narrative Description of Activities for Reporting Period


FirstEnergy sold L. H. Cranston and Sons, Inc. on June 30, 2005 to Cranston Acquisition Group, Inc.





3

ITEM 2 - ISSUANCES AND RENEWALS OF SECURITIES AND CAPITAL CONTRIBUTIONS


   
Type of
  
Principal
          
Company to
  
Collateral
  
Consideration
  
   
Security
  
Amount of
  
Issue or
  
Cost of
  
Whom Security
  
Given with
  
Received
  
Company Issuing Security
  
Issued
  
Security
  
Renewal
  
Capital
  
Was Issued
  
Security
  
For Each Security
  
                               
None.
                                            
                                             
                                             





Company Contributing
  
Company Receiving
  
Amount of Capital
  
Capital
  
Capital
  
Contribution
  
           
None.
              
               




Note:    The information provided in Item 2 represents the activities of the reporting period only.



4

ITEM 3 - ASSOCIATE TRANSACTIONS


Part I - Transactions Performed by Reporting Companies on Behalf of Associate Companies

 
 
Reporting Company Rendering Services
  
 
 
Associate Company Receiving Services
  
 
 
Types of Services Rendered
  
Total
Amount
Billed
  
               
Bay Shore Power Company
    
FirstEnergy Generation Corp.
    
Sale of steam
  
$
***
  
                     
Centerior Energy Services, Inc.
    
FirstEnergy Solutions Corp.
    
Energy consulting services
    
***
  
                     
Dunbar Mechanical, Inc.
    
FirstEnergy Generation Corp.
    
HVAC services
    
***
  
                     
Dunbar Mechanical, Inc.
    
FirstEnergy Nuclear Operating Company
    
HVAC services
    
***
  
                     
FirstEnergy Solutions Corp.
    
FirstEnergy Generation Corp.
    
Natural gas procurement & scheduling services
    
***
  
                     
Roth Bros., Inc.
    
FirstEnergy Generation Corp.
    
HVAC services
    
***
  
                     
Roth Bros., Inc.
    
FirstEnergy Nuclear Operating Company
    
HVAC services
    
***
  
                     
Warrenton River Terminal, Ltd.
    
FirstEnergy Generation Corp.
    
Loading, unloading and storage of coal and petcoke
    
***
  



Note:     The information provided in Item 3 represents the activities of the reporting period only.
               The amounts required under the caption "Total Amount Billed" are being filed pursuant to request for confidential treatment.

5

ITEM 3 - ASSOCIATE TRANSACTIONS (Continued)


Part II - Transactions Performed by Associate Companies on Behalf of Reporting Companies


 
 
Associate Company Rendering Services
  
 
 
Reporting Company Receiving Services
  
 
 
Types of Services Rendered
  
Total
Amount
Billed
  
               
FirstEnergy Service Company
    
GPU Diversified Holdings LLC
    
Legal and certain general and administrative services
  
$
***
  
           
 
        
FirstEnergy Generation Corp.
    
Bay Shore Power Company
    
Sale of limestone drying oil
    
***
  
                     
FirstEnergy Generation Corp.
    
Bay Shore Power Company
    
Sale of light-off oil
    
***
  
                     
FirstEnergy Generation Corp.
    
Bay Shore Power Company
    
Plant operation & maintenance services
    
***
  
                     
FirstEnergy Service Company
    
FirstEnergy Solutions Corp.
    
General and administrative services
    
***
  
                     




Note:
The information provided in Item 3 represents the activities of the reporting period only.
 
The amounts required under the caption "Total Amount Billed" are being filed pursuant to request for confidential treatment.



6

ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT


Investments in energy-related companies:
              
               
Total average consolidated capitalization as of June 30, 2005 
  
$
20,020,881
          
Line 1
  
Total capitalization multiplied by 15% (line 1 multiplied by 0.15)
    
3,003,132
          
Line 2
  
Greater of $50 million or line 2
        
$
3,003,132
    
Line 3
  
                     
Total current aggregate investment:
                    
(categorized by major line of energy-related business)
                    
Development and commercialization of photovoltaics (Category II)
    
14,788
              
Production, conversion, sale and distribution of thermal energy
                    
  products (Category VI)
    
29,063
              
Sale of technical, operational, management, and other services
                    
  related to HVAC, refrigeration systems (Category VII)
    
1,980
              
Fuel transportation, handling and storage facilities (Category IX)
    
50
              
                     
Total current aggregate investment
          
45,881
    
Line 4
  
                     
Difference between the greater of $50 million or 15% of capitalization
                   
and the total aggregate investment of the registered holding company
                   
system (line 3 less line 4)
        
$
2,957,251
    
Line 5
  




Note:
The caption "Total average consolidated capitalization" includes total common equity, preferred equity (including amounts due within one year), long-term debt (including amounts due within one year) and short-term debt.

 
The caption "Total current aggregate investment" includes all amounts invested or committed to be invested in energy-related companies on or after the date of effectiveness of Rule 58 (March 24, 1997), or after FirstEnergy Corp. registered as a holding company (November 7, 2001) for which there is recourse, directly or indirectly, to FirstEnergy Corp. or any subsidiary company thereof. The amounts do not include purchase accounting adjustments.

7

ITEM 5 - OTHER INVESTMENTS

 
Major Line of Energy-Related Business
  
Aggregate Investment as of March 31, 2005
  
Change in Investments During Reporting Period
  
 
Reason for Change in Investments
  
               
Energy management services (Category I)
  
$
1,766(1
)
  
-
    
No change.
  
                     
Development and commercialization of electrotechnologies (Category II)
    
40,554(2
)
  
-
    
No Change.
  
                     
Energy services and retail energy sales (Category V)
    
18,158(3
)
  
-
    
No change.
  
                     
Production, conversion, sale and distribution of thermal energy products (Category VI)
    
70,913(4
)
  
-
    
No change.
  
                     
Sale of technical, operational, management, and other services related to HVAC, refrigeration systems (Category VII)
    
143,190(5
)
$
(13,521
)
  
In the second quarter of 2005, FirstEnergy sold
L. H. Cranston and Sons, Inc..
  
                     
Fuel transportation, handling and storage facilities (Category IX)
    
4,959(6
)
  
-
    
No change.
  
                     
Development and commercialization of technologies that utilize coal waste by-products (Category X)
    
46(7
)
  
-
    
No change.
  


(1)  
Includes $1,766 that was invested in energy-related companies, prior to FirstEnergy Corp. registered as a holding company (November 7, 2001).
(2)  
Includes $25,766 that was invested in energy-related companies, prior to FirstEnergy Corp. registered as a holding company (November 7, 2001).
(3)  
Includes $18,158 that was invested in energy-related companies, prior to FirstEnergy Corp. registered as a holding company (November 7, 2001).
(4)  
Includes $41,850 that was invested in energy-related companies, prior to FirstEnergy Corp. registered as a holding company (November 7, 2001).
(5)  
Includes $127,689 that was invested in energy-related companies, prior to FirstEnergy Corp. registered as a holding company (November 7, 2001).
(6)  
Includes $4,909 that was invested in energy-related companies, prior to FirstEnergy Corp. registered as a holding company (November 7, 2001).
(7)  
Includes $46 that was invested in energy-related companies, prior to FirstEnergy Corp. registered as a holding company (November 7, 2001).


8


ITEM 6 - FINANCIAL STATEMENTS AND EXHIBITS



A.     Financial Statements
   
A-1
Financial statements of FirstEnergy Solutions Corp. for the quarter ended June 30, 2005.
   
A-2
Financial statements of GPU Diversified Holdings for the quarter ended June 30, 2005.
   
A-3
Financial statements of Bay Shore Power Company for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-4
Financial statements of Centerior Energy Services, Inc. for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-5
Financial statements of Warrenton River Terminal, Ltd. for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-6
Financial statements of Dunbar Mechanical, Inc. for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-7
Financial statements of Edwards Electrical & Mechanical, Inc. for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-8
Financial statements of L.H. Cranston and Sons, Inc. for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-9
Financial statements of Roth Bros., Inc. for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-10
Financial statements of The Hattenbach Company for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-11
Financial statements of R.P.C. Mechanical, Inc for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
A-12
Financial statements of GPU Solar, Inc. for the quarter ended June 30, 2005 - filed pursuant to request for confidential treatment.
   
   

9

ITEM 6 - FINANCIAL STATEMENTS AND EXHIBITS (Continued)



B.    Exhibits
   
Contracts Required by Item 3
   
B-1
Stockholders Agreement made and entered into as of January 7, 1998 by and among GPU International, Inc., AstroPower, Inc. and GPU Solar, Inc. (in connection with the sale of GPU International, Inc. on December 22, 2000, the Stockholders Agreement was amended such that GPU International, Inc. transferred its interest in GPU Solar, Inc. and its rights and responsibilities under the Stockholders Agreement to GPU Diversified Holdings LLC) - incorporated by reference to Exhibit B-12 to GPU's Quarterly Report on Form U-9C-3 for the period ended December 31, 2000.
   
B-2
Amendment No. 1 to Stockholders Agreement made and entered into as of December 1, 2000 by and among GPU International, Inc., AstroPower, Inc., GPU Diversified Holdings LLC and GPU Solar, Inc. (this amendment essentially transferred GPU International, Inc.'s interest in GPU Solar, Inc. and its rights and responsibilities under the Stockholders Agreement to GPU Diversified Holdings LLC) - incorporated by reference to Exhibit B-13 to GPU's Quarterly Report on Form U-9C-3 for the period ended December 31, 2000.
   
B-3
Contract between FirstEnergy Service Company and GPU Diversified Holdings LLC to provide legal and certain general and administrative services - incorporated by reference to Exhibit B-3 to FirstEnergy’s Quarterly Report on Form U-9C-3 for the period ended September 30, 2003.
   
B-4
Contract between FirstEnergy Service Company and FirstEnergy Solutions Corp. to provide legal and certain general and administrative services - incorporated by reference to Exhibit B-4 to FirstEnergy’s Quarterly Report on Form U-9C-3 for the period ended September 30, 2003.
   
   
Note:
Services rendered by all other FirstEnergy energy related companies to their associate companies are provided pursuant to written and oral contracts.
   
   
C.
Certificate of FirstEnergy Corp.




10

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.
     
     
     
August 22, 2005
    
 
By:
  /s/  Harvey L. Wagner
 
         Harvey L. Wagner
  Vice President, Controller
and Chief Accounting Officer
(Principal Accounting Officer)



11