8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) August 7, 2007

Commission	Registrant; State of Incorporation;	I.R.S. Employer
File Number	Address; and Telephone Number	Identification No.
333-21011	FIRSTENERGY CORP.	34-1843785
	(An Ohio Corporation)
	76 South Main Street
	Akron, OH 44308
	Telephone (800)736-3402

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 Item 2.02 Results of Operations and Financial Condition

On August 7, 2007, FirstEnergy Corp. issued two public announcements, which are attached as Exhibits 99.1 and 99.2 hereto and incorporated by reference. FirstEnergy's Consolidated Report to the Financial Community contains a non-GAAP* financial measure. Pursuant to the requirements of Regulation G, FirstEnergy has provided a quantitative reconciliation within the Consolidated Report to the Financial Community of the non-GAAP* financial measure to the most directly comparable GAAP financial measure.

The Consolidated Report to the Financial Community includes normalized earnings per share, which is not calculated in accordance with GAAP because it excludes the impact of "special items." Special items reflect the impact on earnings of events that are not routine or that may be related to discontinued businesses. Management believes presenting normalized earnings calculated in this manner provides useful information to investors in evaluating the ongoing results of FirstEnergy's businesses and assists investors in comparing the company's operating performance to the operating performance of other companies in the energy sector. Management believes presenting this non-GAAP* measure provides useful information to investors in assessing FirstEnergy's normalized operating performance. FirstEnergy's management frequently references this non-GAAP* financial measure in its decision-making, using it to facilitate historical and ongoing performance comparisons as well as comparisons to the performance of peer companies.

The non-GAAP* information presented in the Consolidated Report to the Financial Community should be considered in addition to, and not as a substitute for, the most directly comparable financial measure prepared in accordance with GAAP. Also, the non-GAAP* financial measure may not be comparable to similarly titled measures used by other entities.

 Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release issued by FirstEnergy Corp., dated August 7, 2007
99.2	Consolidated Report to the Financial Community, dated August 7, 2007

*This Form 8-K contains a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance, financial position, or cash flows that either excludes or includes amounts, or is subject to adjustment that has the effect of excluding or including amounts, that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States, or GAAP.

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Forward-Looking Statements: This Form 8-K includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “believe,” “estimate” and similar words. Actual results may differ materially due to the speed and nature of increased competition and deregulation in the electric utility industry, economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy’s regulated utilities to collect transition and other charges or to recover increased transmission costs, maintenance costs being higher than anticipated, legislative and regulatory changes (including revised environmental requirements), and the legal and regulatory changes resulting from the implementation of the Energy Policy Act of 2005 (including, but not limited to, the repeal of the Public Utility Holding Company Act of 1935), the uncertainty of the timing and amounts of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than anticipated) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation, adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight) by the Nuclear Regulatory Commission (including, but not limited to, the Demand for Information issued to FENOC on May 14, 2007) as disclosed in FirstEnergy’s SEC filings, the timing and outcome of various proceedings before the Public Utilities Commission of Ohio (including, but not limited to, the distribution rate cases and the generation supply plan filing for the Ohio Companies and the successful resolution of the issues remanded to the PUCO by the Ohio Supreme Court regarding the Rate Stabilization Plan) and the Pennsylvania Public Utility Commission (including Penn’s default service plan filing), the resolution of the Petitions for Review filed with the Commonwealth Court of Pennsylvania with respect to the transition rate plan filing for Met-Ed and Penelec, the continuing availability and operation of generating units, the ability of generating units to continue to operate at, or near full capacity, the inability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), the anticipated benefits from voluntary pension plan contributions, the ability to improve electric commodity margins and to experience growth in the distribution business, the ability to access the public securities and other capital markets and the cost of such capital, the outcome, cost and other effects of present and potential legal and administrative proceedings and claims related to the August 14, 2003 regional power outage, any final adjustment in the purchase price per share under the accelerated share repurchase program announced March 2, 2007, the risks and other factors discussed from time to time in the registrant’s SEC filings, and other similar factors.  Also, a security rating is not a recommendation to buy, sell or hold securities, and it may be subject to revision or withdrawal at any time and each such rating should be evaluated independently of any other rating. The registrant expressly disclaims any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

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 SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

August 7, 2007

FIRSTENERGY CORP.
Registrant
By:	/s/ Harvey L. Wagner
	Harvey L. Wagner Vice President, Controller and Chief Accounting Officer

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EX-99.1

EXHIBIT 99.1

FirstEnergy Corp.	For Release: August 7, 2007
76 South Main Street
Akron, Ohio 44308
www.firstenergycorp.com
News Media Contact:	Investor Contact:
Tricia Ingraham	Ronald Seeholzer
(330) 384-5247	(330) 384-5783

FIRSTENERGY REPORTS HIGHER SECOND QUARTER EARNINGS

Akron, Ohio - FirstEnergy Corp. (NYSE: FE) today reported second quarter 2007 basic earnings per share of common stock of $1.11 ($1.10 diluted) on net income of $338 million and revenue of $3.1 billion.  This compares with second quarter 2006 basic earnings per share of common stock of $0.92 ($0.91 diluted) on net income of $304 million and revenue of $2.8 billion.

Second quarter 2007 results reflect increased sales margins driven by higher electric sales revenue.  Per share earnings were further enhanced by reduced shares outstanding from the repurchase of approximately 25 million shares of common stock since the second quarter of 2006.  Earnings during the 2007 quarter were reduced by an after-tax charge of $0.02 per common share related to the impairment of securities held in trust for future nuclear decommissioning activities.

“We continue to execute our plan for achieving our operating and financial goals, which is key to meeting the expectations of our shareholders and customers,” said President and Chief Executive Officer Anthony J. Alexander.  “Our second quarter results demonstrate our commitment to continuous improvement throughout the organization.”

The company’s total electric generation megawatt-hour (MWH) sales increased 2.9 percent in the second quarter of 2007 compared to the 2006 period, with electricity sales to the retail sector increasing 4.5 percent, and sales to the wholesale sector decreasing 3.1 percent.  Kilowatt-hour deliveries to customers through the company’s utility distribution systems increased by 4.4 percent in the quarter.  The increase in deliveries was driven by higher weather-related use from residential and commercial customers, partially offset by slightly reduced deliveries to industrial customers.

FirstEnergy’s generating fleet set a record second quarter output of 20.4 million MWH, an increase of 0.1 million MWH over last year’s second quarter.  The company’s increase in generation capacity in the past year, as well as record quarterly output by the fossil generation fleet, contributed to this performance.  

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For the first six months of 2007 net income was $628 million, or $2.03 per basic share of common stock ($2.01 diluted), with revenue of $6.1 billion.  This compares with 2006 first-half net income of $525 million, or $1.59 per basic share of common stock ($1.58 diluted), and revenue of $5.5 billion.

    FirstEnergy’s Consolidated Report to the Financial Community – which provides highlights of company developments and financial results for the second quarter of 2007 – is posted on the company’s Web site – www.firstenergycorp.com/ir.  To access the report, click on 2Q 2007 Consolidated Report to the Financial Community.

The company invites investors, customers and other interested parties to listen to a live Internet Webcast of its teleconference for financial analysts at 1:00 p.m. Eastern Daylight Time today.  FirstEnergy management will present an overview of the company’s financial results for the quarter, followed by a question-and-answer session.  The teleconference can be accessed on the company’s Web site by selecting the Q2 2007 Earnings Conference Call link. The Webcast will be archived on the Web site.

    FirstEnergy is a diversified energy company headquartered in Akron, Ohio.  Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services.  Its seven electric utility operating companies comprise the nation’s fifth largest investor-owned electric system, based on 4.5 million customers served within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its generation subsidiaries control more than 14,000 megawatts of capacity.

Forward-Looking Statements: This news release includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “believe,” “estimate” and similar words. Actual results may differ materially due to the speed and nature of increased competition and deregulation in the electric utility industry, economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy’s regulated utilities to collect transition and other charges or to recover increased transmission costs, maintenance costs being higher than anticipated, legislative and regulatory changes (including revised environmental requirements), and the legal and regulatory changes resulting from the implementation of the Energy Policy Act of 2005 (including, but not limited to, the repeal of the Public Utility Holding Company Act of 1935), the uncertainty of the timing and amounts of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than anticipated) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation, adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight) by the NRC (including, but not limited to, the Demand For Information issued to FENOC on May 14, 2007) and the various state public utility commissions as disclosed in our SEC filings, the timing and outcome of various proceedings before the PUCO (including, but not limited to, the Distribution Rate Cases and the generation supply plan filing for the Ohio Companies and the successful resolution of the issues remanded to the

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PUCO by the Ohio Supreme Court regarding the Rate Stabilization Plan) and the PPUC (including the Pennsylvania Power Company Default Service Plan filing), the resolution of the Petitions for Review filed with the Commonwealth Court of Pennsylvania with respect to the transition rate plan for Met-Ed and Penelec, the continuing availability and operation of generating units, the ability of generating units to continue to operate at, or near full capacity, the inability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), the anticipated benefits from voluntary pension plan contributions, the ability to improve electric commodity margins and to experience growth in the distribution business, the ability to access the public securities and other capital markets and the cost of such capital, the outcome, cost and other effects of present and potential legal and administrative proceedings and claims related to the August 14, 2003 regional power outage, any final adjustment in the purchase price per share under the accelerated share repurchase program announced March 2, 2007, the risks and other factors discussed from time to time in our SEC filings, and other similar factors.  We expressly disclaim any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

(080707)

EX-99.2

EXHIBIT 99.2

Consolidated Report to the Financial Community

Second Quarter 2007

(Released August 7, 2007) (Unaudited)

HIGHLIGHTS		After-Tax EPS Variance Analysis	2nd Qtr.
		2Q 2006 Basic EPS – GAAP Basis	$	0.92
▪	Normalized non-GAAP* earnings, excluding special items, were $1.13	Special Items – 2006		0.03
	per share for the second quarter of 2007, compared with $0.95 per	2Q 2006 Normalized Earnings – Non-GAAP Basis*	$	0.95
	share for the second quarter of 2006. GAAP earnings for the second	Distribution Deliveries		0.04
	quarter of 2007 were $1.11 per share compared with $0.92 per share	Met-Ed and Penelec Distribution Rate Decrease		(0.05	)
	in the prior year.	Generation Revenues		0.25
		Purchased Power		(0.09	)
		Deferred Transmission Costs – PA (1Q06)		(0.05	)
2Q 2007 Results vs. 2Q 2006		Pensions and Other Post-retirement Benefits		0.06
		Depreciation		(0.03	)
▪	Electric distribution deliveries increased 4%, primarily due to higher	General Taxes		(0.03	)
	weather-related usage. Residential and commercial deliveries	Investment Income – NDT and COLI		0.05
	increased 9% and 5%, respectively, while industrial deliveries were	Financing Costs		(0.05	)
	flat. Higher distribution deliveries increased earnings by $0.04 per	Reduced Common Shares		0.07
	share, excluding the impact of a $0.05 per share earnings reduction	Other		0.01
	resulting from the distribution rate decrease at Metropolitan Edison	2Q 2007 Normalized Earnings – Non-GAAP Basis*	$	1.13
	Company (Met-Ed) and Pennsylvania Electric Company (Penelec),	Special Items - 2007		(0.02	)
	effective January 11, 2007.	2Q 2007 Basic EPS – GAAP Basis	$	1.11
▪	Total electric generation sales increased 3%, as an increase of 1.1 million MWh or 5% in retail generation sales was partially offset by a 0.2 million MWh or 3%
	reduction in wholesale sales.  Generation revenues, excluding power sourced from third-party auction suppliersfor our Jersey Central Power & Light Company
	(JCP&L) and Pennsylvania Power Company (Penn Power) customers, increased earnings by $0.25 per share.This increase was attributable to higher
	generation sales as well as higher retail and wholesale prices.
▪	Higher purchased power expense, excluding JCP&L and Penn Power purchases from third-party auction suppliers, reduced earnings by $0.09 per share
	primarily due to higher market prices compared to the same period last year.
▪	The deferral of incremental first quarter 2006 Met-Ed and Penelec transmission charges in the second quarter of 2006 caused a comparative reduction in
	second quarter 2007 earnings by $0.05 per share.  The companies were authorized by the Pennsylvania Public Utility Commission in May 2006 to defer these
	charges, retroactive to the beginning of the year.  Thus, results for the second quarter of 2006 included the deferrals that were applicable to the first quarter of
	2006.

▪	Reduced pension and other post-retirement benefit costs increased earnings by $0.06 per share mainly due to retiree health care design changes and the
	impact of the $300 million voluntary contribution to the pension plan made in January 2007.
▪	Incremental property additions increased depreciation by $0.03 per share.
▪	Higher general taxes reduced earnings by $0.03 per share primarily due to increased property tax payments, Pennsylvania gross receipts taxes, and Ohio
	kilowatt-hour taxes.
▪	Investment income related to nuclear decommissioning trusts and corporate-owned life insurance increased earnings by $0.05 per share.
▪	Increased financing costs lowered earnings by $0.05 per share, primarily attributable to higher short-term borrowing levels related largely to the temporary
	funding of the accelerated share repurchase programs and the recent pension plan contribution.
▪	The reduction in shares outstanding due to the accelerated repurchases of 10.6 million and 14.4 million common shares in August 2006 and March 2007,
	respectively, enhanced earnings by $0.07 per share.
▪	During the quarter, a $0.02 per share reduction in earnings was recognized from impairment of securities held in trust for future nuclear decommissioning
	activities.
2007 Earnings Guidance
▪	Normalized non-GAAP earnings guidance for 2007, excluding special items, remains at $4.05 to $4.25 per share.   Year-to-date normalized non-GAAP
	earnings now stand at $2.01 per share.  Earnings for the remainder of the year, exclusive of any special items, are expected to be allocated approximately
	56% to the third quarter and 44% to the fourth quarter.

* The 2007 GAAP to non-GAAP reconciliation statements can be found on page 10 of this report and all GAAP to non-GAAP reconciliation statements are available on the Investor Information section of FirstEnergy Corp.'s Web site at www.firstenergycorp.com/ir.

For additional information, please contact:

Ronald E. Seeholzer	Kurt E. Turosky	Rey Y. Jimenez
Vice President, Investor Relations	Director, Investor Relations	Principal, Investor Relations
(330) 384-5783	(330) 384-5500	(330) 761-4239

Consolidated Report to the Financial Community –2nd Quarter 2007                                                                                                                                                                         ;                     2

FirstEnergy Corp. Consolidated Statements of Income (Unaudited) (In millions, except for per share amounts)
		Three Months Ended June 30,									Six Months Ended June 30,
		2007			2006			Change			2007			2006			Change
	Revenues
(1)	Electric sales	$	2,904		$	2,553		$	351		$	5,669		$	5,064		$	605
(2)	FE Facilities		-			23			(23	)		-			38			(38	)
(3)	Other		205			175			30			413			354			59
(4)	Total Revenues		3,109			2,751			358			6,082			5,456			626
	Expenses
(5)	Fuel		299			303			(4	)		560			585			(25	)
(6)	Purchased power		886			688			198			1,746			1,404			342
(7)	Other operating expenses		750			702			48			1,499			1,440			59
(8)	FE Facilities		-			16			(16	)		-			31			(31	)
(9)	Provision for depreciation		159			144			15			315			292			23
(10)	Amortization of regulatory assets		246			201			45			497			422			75
(11)	Deferral of new regulatory assets		(148	)		(146	)		(2	)		(292	)		(226	)		(66	)
(12)	General taxes		189			173			16			392			366			26
(13)	Total Expenses		2,381			2,081			300			4,717			4,314			403
(14)	Operating Income		728			670			58			1,365			1,142			223
	Other Income (Expense)
(15)	Investment income		30			31			(1	)		63			74			(11	)
(16)	Interest expense		(205	)		(178	)		(27	)		(390	)		(343	)		(47	)
(17)	Capitalized interest		7			7			-			12			14			(2	)
(18)	Subsidiaries' preferred stock dividends		-			(2	)		2			-			(4	)		4
(19)	Total Other Income (Expense)		(168	)		(142	)		(26	)		(315	)		(259	)		(56	)
(20)	Income From Continuing Operations
	Before Income Taxes		560			528			32			1,050			883			167
(21)	Income taxes		222			216			6			422			352			70
(22)	Income From Continuing Operations		338			312			26			628			531			97
(23)	Discontinued operations		-			(8	)		8			-			(6	)		6
(24)	Net Income	$	338		$	304		$	34		$	628		$	525		$	103
	Basic Earnings Per Common Share:
(25)	Income from continuing operations	$	1.11		$	0.94		$	0.17		$	2.03		$	1.61		$	0.42
(26)	Discontinued operations		-			(0.02	)		0.02			-			(0.02	)		0.02
(27)	Basic Earnings Per Common Share	$	1.11		$	0.92		$	0.19		$	2.03		$	1.59		$	0.44
(28)	Weighted Average Number of
	Basic Shares Outstanding		304			328			(24	)		309			328			(19	)
	Diluted Earnings Per Common Share:
(29)	Income from continuing operations	$	1.10		$	0.93		$	0.17		$	2.01		$	1.60		$	0.41
(30)	Discontinued operations		-			(0.02	)		0.02			-			(0.02	)		0.02
(31)	Diluted Earnings Per Common Share	$	1.10		$	0.91		$	0.19		$	2.01		$	1.58		$	0.43
(32)	Weighted Average Number of
	Diluted Shares Outstanding		308			330			(22	)		313			330			(17	)

Consolidated Report to the Financial Community –2nd Quarter 2007                                                                                                                                                                       
60;                     3

FirstEnergy Corp. Consolidated Income Segments (Unaudited)     (In millions)
		Three Months Ended June 30, 2007
								Ohio
		Energy			Competitive			Transitional
		Delivery			Energy			Generation						Reconciling
		Services (a)			Services (b)			Services (c)			Other (d)			Adjustments			Consolidated
	Revenues
(1)	Electric sales	$	1,933		$	359		$	612		$	-		$	-		$	2,904
(2)	FE Facilities		-			-			-			-			-			-
(3)	Other		162			45			13			9			(24	)		205
(4)	Internal revenues		-			691			-			-			(691	)		-
(5)	Total Revenues		2,095			1,095			625			9			(715	)		3,109
	Expenses
(6)	Fuel		2			297			-			-			-			299
(7)	Purchased power		877			163			537			-			(691	)		886
(8)	Other operating expenses		410			283			87			4			(34	)		750
(9)	FE Facilities		-			-			-			-			-			-
(10)	Provision for depreciation		100			51			-			1			7			159
(11)	Amortization of regulatory assets		242			-			6			-			(2	)		246
(12)	Deferral of new regulatory assets		(93	)		-			(55	)		-			-			(148	)
(13)	General taxes		155			26			1			-			7			189
(14)	Total Expenses		1,693			820			576			5			(713	)		2,381
(15)	Operating Income		402			275			49			4			(2	)		728
	Other Income (Expense)
(16)	Investment income		62			5			-			-			(37	)		30
(17)	Interest expense		(118	)		(47	)		-			(1	)		(39	)		(205	)
(18)	Capitalized interest		2			5			-			-			-			7
(19)	Subsidiaries' preferred stock dividends		-			-			-			-			-			-
(20)	Total Other Income (Expense)		(54	)		(37	)		-			(1	)		(76	)		(168	)
(21)	Income From Continuing Operations
	Before Income Taxes		348			238			49			3			(78	)		560
(22)	Income taxes		141			96			19			(3	)		(31	)		222
(23)	Income From Continuing Operations		207			142			30			6			(47	)		338
(24)	Discontinued operations		-			-			-			-			-			-
(25)	Net Income	$	207		$	142		$	30		$	6		$	(47	)	$	338
(a) Consists of regulated transmission and distribution operations, including transition cost recovery, and provider of last resort generation service for   FirstEnergy's Pennsylvania and New Jersey electric utility subsidiaries.
(b) Consists of unregulated generation and commodity operations, including competitive electric sales, and generation sales to affiliated electric utilities.&# 160;
(c) Represents provider of last resort generation service by FirstEnergy's Ohio electric utility subsidiaries.
(d) Primarily consists of telecommunications services.

Consolidated Report to the Financial Community –2nd Quarter 2007                                                                                                                                                                       
60;                     4

FirstEnergy Corp.

Consolidated Income Segments

(Unaudited)

(In millions)

		Three Months Ended June 30, 2006
								Ohio
		Energy			Competitive			Transitional
		Delivery			Energy			Generation						Reconciling
		Services (a)			Services (b)			Services (c)			Other (d)			Adjustments			Consolidated
	Revenues
(1)	Electric sales	$	1,646		$	338		$	569		$	-		$	-		$	2,553
(2)	FE Facilities		-			-			-			23			-			23
(3)	Other		127			46			6			16			(20	)		175
(4)	Internal revenues		6			623			-			-			(629	)		-
(5)	Total Revenues		1,779			1,007			575			39			(649	)		2,751
	Expenses
(6)	Fuel		-			303			-			-			-			303
(7)	Purchased power		690			131			496			-			(629	)		688
(8)	Other operating expenses		363			289			53			25			(28	)		702
(9)	FE Facilities		-			-			-			16			-			16
(10)	Provision for depreciation		89			48			-			1			6			144
(11)	Amortization of regulatory assets		197			-			4			-			-			201
(12)	Deferral of new regulatory assets		(113	)		-			(33	)		-			-			(146	)
(13)	General taxes		144			23			2			-			4			173
(14)	Total Expenses		1,370			794			522			42			(647	)		2,081
(15)	Operating Income		409			213			53			(3	)		(2	)		670
	Other Income (Expense)
(16)	Investment income		81			2			-			-			(52	)		31
(17)	Interest expense		(101	)		(50	)		-			(2	)		(25	)		(178	)
(18)	Capitalized interest		4			3			-			-			-			7
(19)	Subsidiaries' preferred stock dividends		(5	)		-			-			-			3			(2	)
(20)	Total Other Income (Expense)		(21	)		(45	)		-			(2	)		(74	)		(142	)
(21)	Income From Continuing Operations
	Before Income Taxes		388			168			53			(5	)		(76	)		528
(22)	Income taxes		155			67			22			2			(30	)		216
(23)	Income From Continuing Operations		233			101			31			(7	)		(46	)		312
(24)	Discontinued operations		-			-			-			(8	)		-			(8	)
(25)	Net Income	$	233		$	101		$	31		$	(15	)	$	(46	)	$	304
(a) Consists of regulated transmission and distribution operations, including transition cost recovery, and provider of last resort generation service for
FirstEnergy's Pennsylvania and New Jersey electric utility subsidiaries.
(b) Consists of unregulated generation and commodity operations, including competitive electric sales, and generation sales to affiliated electric utilities.
(c) Represents provider of last resort generation service by FirstEnergy's Ohio electric utility subsidiaries.
(d) Consists of telecommunications services and non-core businesses divested in 2006 (Facilities Services Group and MYR).

Consolidated Report to the Financial Community –2nd Quarter 2007                                                                                                                                                                         ;                     5

FirstEnergy Corp.
Consolidated Income Segments
(Unaudited)
(In millions)
		Three Months Ended June 30, 2007 vs. Three Months Ended June 30, 2006
								Ohio
		Energy			Competitive			Transitional
		Delivery			Energy			Generation						Reconciling
		Services (a)			Services (b)			Services (c)			Other (d)			Adjustments			Consolidated
	Revenues
(1)	Electric sales	$	287		$	21		$	43		$	-		$	-		$	351
(2)	FE Facilities		-			-			-			(23	)		-			(23	)
(3)	Other		35			(1	)		7			(7	)		(4	)		30
(4)	Internal revenues		(6	)		68			-			-			(62	)		-
(5)	Total Revenues		316			88			50			(30	)		(66	)		358
	Expenses
(6)	Fuel		2			(6	)		-			-			-			(4	)
(7)	Purchased power		187			32			41			-			(62	)		198
(8)	Other operating expenses		47			(6	)		34			(21	)		(6	)		48
(9)	FE Facilities		-			-			-			(16	)		-			(16	)
(10)	Provision for depreciation		11			3			-			-			1			15
(11)	Amortization of regulatory assets		45			-			2			-			(2	)		45
(12)	Deferral of new regulatory assets		20			-			(22	)		-			-			(2	)
(13)	General taxes		11			3			(1	)		-			3			16
(14)	Total Expenses		323			26			54			(37	)		(66	)		300
(15)	Operating Income		(7	)		62			(4	)		7			-			58
	Other Income (Expense)
(16)	Investment income		(19	)		3			-			-			15			(1	)
(17)	Interest expense		(17	)		3			-			1			(14	)		(27	)
(18)	Capitalized interest		(2	)		2			-			-			-			-
(19)	Subsidiaries' preferred stock dividends		5			-			-			-			(3	)		2
(20)	Total Other Income (Expense)		(33	)		8			-			1			(2	)		(26	)
(21)	Income From Continuing Operations
	Before Income Taxes		(40	)		70			(4	)		8			(2	)		32
(22)	Income taxes		(14	)		29			(3	)		(5	)		(1	)		6
(23)	Income From Continuing Operations		(26	)		41			(1	)		13			(1	)		26
(24)	Discontinued operations		-			-			-			8			-			8
(25)	Net Income	$	(26	)	$	41		$	(1	)	$	21		$	(1	)	$	34
(a) Consists of regulated transmission and distribution operations, including transition cost recovery, and provider of last resort generation service for
FirstEnergy's Pennsylvania and New Jersey electric utility subsidiaries.
(b) Consists of unregulated generation and commodity operations, including competitive electric sales, and generation sales to affiliated electric utilities.
(c) Represents provider of last resort generation service by FirstEnergy's Ohio electric utility subsidiaries.
(d) Consists of telecommunications services and non-core businesses divested in 2006 (Facilities Services Group and MYR).

Consolidated Report to the Financial Community –2nd Quarter 2007                                                                                                                                                                         ;                     6

FirstEnergy Corp.

Financial Statements

(Unaudited)

(In millions)

Condensed Consolidated Balance Sheets
	As of  June 30, 2007		As of  Dec 31, 2006
Assets
Current Assets:
Cash and cash equivalents	$	37	$	90
Receivables		1,594		1,267
Other		905		726
Total Current Assets		2,536		2,083
Property, Plant and Equipment		15,010		14,667
Investments		3,564		3,534
Deferred Charges and Other Assets		10,923		10,912
Total Assets	$	32,033	$	31,196
Liabilities and Capitalization
Current Liabilities:
Currently payable long-term debt	$	2,000	$	1,867
Short-term borrowings (a)		2,416		1,108
Accounts payable		801		726
Other		1,065		1,554
Total Current Liabilities		6,282		5,255
Capitalization:
Common stockholders' equity (b)		8,640		9,035
Long-term debt and other long-term obligations		8,742		8,535
Total Capitalization		17,382		17,570
Noncurrent Liabilities		8,369		8,371
Total Liabilities and Capitalization	$	32,033	$	31,196
(a)  Increase reflects interim financing of $300 million voluntary pension contribution and
$900 million accelerated common share repurchase program in 2007.
(b)  Reduction reflects $900 million common share repurchase in 2007.

General Information	Three Months Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
Debt and equity securities redemptions	$	(485	)	$	(421	)	$	(1,389	)	$	(515	)
New long-term debt issues	$	550		$	1,053		$	800		$	1,053
Short-term debt increase	$	169		$	171		$	1,308		$	371
Capital expenditures	$	401		$	292		$	697		$	739

Adjusted Capitalization (Including Off-Balance Sheet Items) - Rating Agency View
	As of June 30,
	2007		% Total			2006		% Total
Total common equity	$	8,640		38	%	$	9,488		43	%
Preferred stock		-		-			154		1	%
Long-term debt (a)		10,331		46	%		10,477		48	%
Short-term debt		2,416		11	%		557		3	%
Off-balance sheet debt equivalents:
Sale-leaseback net debt equivalents (b)		1,143		5	%		1,236		5	%
Total	$	22,530		100	%	$	21,912		100	%
(a)  Includes amount due to be paid within one year and excludes JCP&L securitization debt of $411 million and $256 million in 2007 and 2006, respectively.
(b)  Associated with 1987 sale and leaseback transactions.

Consolidated Report to the Financial Community – 2nd Quarter                                                                                                                                                                                                      7

 

FirstEnergy Corp.

Financial Statements

(Unaudited)

(In millions)

Condensed Consolidated Statements of Cash Flows
	Three Months Ended June 30,						Six Months Ended June 30,
	2007			2006			2007			2006
Cash flows from operating activities:
Net income	$	338		$	304		$	628		$	525
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, amortization, and deferral
of regulatory assets		257			197			520			487
Deferred purchased power and other costs		(69	)		(135	)		(185	)		(239	)
Deferred income taxes and investment tax credits		32			26			85			32
Deferred rents and lease market valuation liability		(67	)		(67	)		(92	)		(105	)
Electric service prepayment programs		(19	)		(15	)		(36	)		(29	)
Cash collateral, net		(25	)		51			(19	)		(55	)
Pension trust contribution		-			-			(300	)		-
Change in working capital and other		(241	)		(200	)		(470	)		(131	)
Cash flows provided from operating activities		206			161			131			485
Cash flows provided from financing activities		108			668			454			618
Cash flows used for investing activities		(366	)		(274	)		(638	)		(584	)
Net increase (decrease) in cash and cash equivalents	$	(52	)	$	555		$	(53	)	$	519

Deferrals and Amortizations
	Three Months Ended June 30,									Six Months Ended June 30,
	2007			2006			Change			2007			2006			Change
Ohio Regulatory Assets
Deferred Balance - Beginning	$	1,820		$	1,891					$	1,844		$	1,924
Deferral of shopping incentives		-			-		$	-			-			3		$	(3	)
Interest on shopping incentives		9			11			(2	)		19			21			(2	)
Deferral of MISO costs and interest		30			4			26			38			7			31
Deferral of RCP distribution reliability costs		44			41			3			91			81			10
Deferral of RCP fuel costs		27			30			(3	)		41			51			(10	)
Deferral of other regulatory assets		5			2			3			11			5			6
Current period deferrals	$	115		$	88		$	27		$	200		$	168		$	32
Amortization
Ohio transition costs amortization	$	(72	)	$	(62	)	$	(10	)	$	(140	)	$	(134	)	$	(6	)
Shopping incentives amortization		(29	)		(29	)		-			(59	)		(59	)		-
MISO costs amortization		(6	)		(5	)		(1	)		(11	)		(9	)		(2	)
Other		(2	)		(1	)		(1	)		(8	)		(8	)		-
Current period amortization	$	(109	)	$	(97	)	$	(12	)	$	(218	)	$	(210	)	$	(8	)
Deferred Balance - Ending	$	1,826		$	1,882					$	1,826		$	1,882
Pennsylvania Deferred PJM Costs
Beginning Balance	$	186		$	-		$	186		$	157		$	-		$	157
Deferrals		30			57			(27	)		63			57			6
Interest		2			-			2			3			-			3
Amortizations		(2	)		-			(2	)		(7	)		-			(7	)
Ending Balance	$	216		$	57		$	159		$	216		$	57		$	159
New Jersey Deferred Energy Costs
Beginning Balance	$	357		$	558					$	369		$	541
Deferral of energy costs		35			80		$	(45	)		23			97		$	(74	)
Ending Balance	$	392		$	638					$	392		$	638

Consolidated Report to the Financial Community – 2nd Quarter 2007                                                                                                                                                                       
60;                    8

FirstEnergy Corp.

Statistical Summary

(Unaudited)

 

Electric Sales Statistics
		Three Months Ended June 30,							Six Months Ended June 30,
(in millions of kWhs)		2007		2006		Change			2007		2006		Change
Electric Generation Sales
Retail - Regulated			23,186		22,591		2.6	%		47,994		46,597		3.0	%
Retail - Competitive			3,285		2,740		19.9	%		6,491		5,459		18.9	%
Total Retail			26,471		25,331		4.5	%		54,485		52,056		4.7	%
Wholesale			6,360		6,561		-3.1	%		11,423		11,983		-4.7	%
Total Electric Generation Sales			32,831		31,892		2.9	%		65,908		64,039		2.9	%
Electric Distribution Deliveries
Ohio	-Residential		3,835		3,583		7.0	%		8,666		8,026		8.0	%
	-Commercial		3,674		3,516		4.5	%		7,469		7,160		4.3	%
	-Industrial		5,908		5,902		0.1	%		11,587		11,561		0.2	%
	-Other		93		95		-2.1	%		186		186		0	%
	Total Ohio		13,510		13,096		3.2	%		27,908		26,933		3.6	%
Pennsylvania	-Residential		2,564		2,365		8.4	%		5,868		5,457		7.5	%
	-Commercial		2,730		2,602		4.9	%		5,501		5,252		4.7	%
	-Industrial		2,567		2,611		-1.7	%		5,109		5,175		-1.3	%
	-Other		21		21		-			40		41		-2.4	%
	Total Pennsylvania		7,882		7,599		3.7	%		16,518		15,925		3.7	%
New Jersey	-Residential		2,387		2,100		13.7	%		4,740		4,354		8.9	%
	-Commercial		2,416		2,292		5.4	%		4,713		4,496		4.8	%
	-Industrial		724		703		3.0	%		1,426		1,393		2.4	%
	-Other		21		21		-			43		43		0	%
	Total New Jersey		5,548		5,116		8.4	%		10,922		10,286		6.2	%
Total Residential			8,786		8,048		9.2	%		19,274		17,837		8.1	%
Total Commercial			8,820		8,410		4.9	%		17,683		16,908		4.6	%
Total Industrial			9,199		9,216		-0.2	%		18,122		18,129		0	%
Total Other			135		137		-1.5	%		269		270		-0.4	%
Total Distribution Deliveries			26,940		25,811		4.4	%		55,348		53,144		4.1	%
Electric Sales Shopped
Ohio	-Residential		489		497		-1.6	%		1,050		1,093		-3.9	%
	-Commercial		872		910		-4.2	%		1,752		1,866		-6.1	%
	-Industrial		692		709		-2.4	%		1,333		1,444		-7.7	%
	Total Ohio		2,053		2,116		-3.0	%		4,135		4,403		-6.1	%
Pennsylvania	-Residential		11		-		-			11		1		0	%
	-Commercial		156		-		-			264		1		0	%
	-Industrial		460		94		389.4	%		876		225		289.3	%
	Total Pennsylvania		627		94		567.0	%		1,151		227		407.0	%
New Jersey	-Residential		-		-		-			-		-		-
	-Commercial		519		491		5.7	%		994		894		11.2	%
	-Industrial		555		519		6.9	%		1,074		1,023		5.0	%
	Total New Jersey		1,074		1,010		6.3	%		2,068		1,917		7.9	%
Total Electric Sales Shopped			3,754		3,220		16.6	%		7,354		6,547		12.3	%

Operating Statistics
		Three Months Ended June 30,			Six Months Ended June 30,
		2007	2006		2007	2006
Capacity Factors:
	Fossil - Baseload	90.3%	92.2%		77.5%	92.6%
	Fossil - Load Following	71.8%	67.7%		72.9%	67.9%
	Peaking	2.2%	0.3%		1.2%	0.2%
	Nuclear	79.7%	84.0%		89.3%	83.0%
Generation Output:
	Fossil - Baseload	43.2%	43.7%		37.8%	44.0%
	Fossil - Load Following	22.8%	21.7%		23.7%	21.8%
	Peaking	0.4%	0.1%		0.2%	0.0%
	Nuclear	33.5%	34.5%		38.3%	34.2%
		Three Months Ended June 30,			Six Months Ended June 30,
Weather		2007	2006	Normal	2007	2006	Normal
Composite Heating-Degree-Days		659	569	653	3,567	3,092	3,457
Composite Cooling-Degree-Days		287	206	251	288	206	259

Consolidated Report to the Financial Community – 2nd Quarter 2007                                                                                                                                                                       
60;                    9 

FirstEnergy Corp.

2007 EPS Reconciliations

(Unaudited)

Special Items
	Three Months Ended June 30,							Six Months Ended June 30,
	2007				2006			2007			2006
Pre-tax Items - Income Increase (Decrease)
Gain (Loss) on Non-Core Asset Sales of:
Loss on sale on MYR 60% interest (a)	$	-			$	-		$	-		$	(5	)
All other (a)(f)		-				6			-			6
Total Gain on Non-Core Asset Sales		-				6			-			1
Saxton decommissioning costs regulatory assets (b)		-				-			27			-
Trust securities impairment (c)		(8	)			-			(12	)		-
FE Facilities sales/impairment (d)(e)(g)		-				(12	)		-			(12	)
Total-Pretax Items	$	(8	)		$	(6	)	$	15		$	(11	)
EPS Effect	$	(0.02	)		$	(0.03	)	$	0.02		$	(0.03	)
(a) Included in "Other operating expenses"				(e) Included in "Discontinued Operations"
(b) Included in "Deferral of new regulatory assets"				(f)  Before first quarter 2006 tax benefit of $2.5 million
(c) Included in "Investment income"				(g)  Non-tax deductible
(d) Included in "FE Facilities expenses"

2007 Earnings Per Share (EPS)
(Reconciliation of GAAP to Non-GAAP)
	ACTUAL		ACTUAL			Non-GAAP
	Three Months		Six Months			Guidance For
	Ended June 30		Ended June 30			Year 2007
Basic EPS (GAAP basis)	$	1.11	$	2.03		$	4.11 - $4.31
Excluding Special Items:
New regulatory asset authorized by PPUC		-		(0.05	)		(0.05	)
Gain on sale of non-core assets		-		-			(0.04	)
Trust securities impairment		0.02		0.03			0.03
Basic EPS (Non-GAAP basis)	$	1.13	$	2.01		$	4.05 - $4.25

Consolidated Report to the Financial Community - 2nd Quarter 2007                                                                                                                                                                       
60;                     10

RECENT DEVELOPMENTS

Record Generation Output

FirstEnergy set a new second quarter generation output record of 20.4 million megawatt-hours, which represented a 0.4% increase over the prior record established in the second quarter of 2006.  The generation record was primarily attributable to performance of the fossil generation fleet, which established its best quarterly output ever.

Sale and Leaseback of Bruce Mansfield Unit 1

On July 13, 2007, FirstEnergy Generation Corp. (Genco) completed a $1.3 billion sale and leaseback transaction for its 779 MW portion of Unit 1 of the Bruce Mansfield Plant.  The applicable lease agreements provide for an approximate 33-year lease of the unit.  FirstEnergy used the net after-tax proceeds of approximately $1.2 billion, to repay short-term debt that was used to fund the March 2007 $900 million accelerated share repurchase program and the January 2007 $300 million pension contribution.  Genco continues to operate the plant and is entitled to its full output.

Ohio Distribution Rate Case Filing

On June 7, 2007, FirstEnergy subsidiaries Ohio Edison (OE), The Cleveland Electric Illuminating Company (CEI), and Toledo Edison (TE) (collectively Ohio Companies) filed their base distribution rate increase request and supporting testimony with the Public Utilities Commission of Ohio (PUCO).  On August 6, the Ohio Companies provided an Update Filing with three months of actual results (March through May 2007) for the test year and actual asset and liability balances as of May 31, 2007.  The requested increase in annualized distribution revenues totals $332 million to recover expenses related to distribution operations and the costs deferred under previously approved rate plans.  The new rates would be effective January 1, 2009, for OE and TE customers, and are expected to be effective in May 2009 for CEI customers.  Concurrent with the effective dates, the Ohio Companies will reduce or eliminate their Regulatory Transition Charges (RTC), resulting in an aggregate net reduction of $262 million on the regulated portion of customers’ bills.  It is estimated the PUCO Staff will issue its report in the case in the fourth quarter of 2007 with evidentiary hearings to follow in late 2007.  The PUCO Order is expected in March 2008.

Ohio Competitive Generation Supply Plan Filing

On July 10, 2007, the Ohio Companies filed an application with the PUCO requesting approval of a comprehensive supply plan for providing generation service, beginning January 1, 2009, to customers who choose not to purchase electricity from an alternative supplier.  The proposed competitive bidding process would average the results of multiple bidding sessions conducted at different times during the year beginning in 2008.  The Ohio Companies offered two alternatives for structuring the bids, either by customer class or a “slice-of-system” approach that combines all customer classes into tranches that represent a portion of the total customer load.  The proposal provides the PUCO with an option to phase in generation price increases for residential tariff groups that would experience a change in the average total price of 15 percent or more.  The Ohio Companies requested that the PUCO issue an order by November 1, 2007, to provide sufficient time to conduct the bidding process.  The PUCO has scheduled a technical conference to be held on August 16, 2007 to allow interested parties an opportunity to better understand the filing.

Ohio Companies’ Green Option for Customers

On May 29, 2007, OE, CEI and TE filed a proposed program with the PUCO that would provide customers with the opportunity to purchase Renewable Energy Certificates (RECs) to support alternative energy.  The program was designed in collaboration with the PUCO Staff and the Office of the Ohio Consumers’ Counsel.  The proposal is currently pending before the PUCO.

Pennsylvania Power Company Default Service Plan Update

On May 2, 2007, Pennsylvania Power Company made a filing with the Pennsylvania Public Utility Commission (PPUC) proposing a process to procure the power supply needed for default service customers during the period of June 1, 2008 through May 31, 2011. The hearings are scheduled for September 10-11, 2007, with an Administrative Law Judge (ALJ) recommended decision expected by October 25, 2007.  A PPUC Order is expected on or about November 29, 2007.

Consolidated Report to the Financial Community - 2nd Quarter 2007                                                                                                                                                                       
60;                     11

Met-Ed and Penelec Commonwealth Court Appeals

On June 19, 2007, initial briefs were filed by all parties in the appeal of the PPUC’s January 2007 transition rate plan order to the Pennsylvania Commonwealth Court.  Responsive briefs are due August 20, 2007, with reply briefs due September 4, 2007.  Metropolitan Edison Company (Met-Ed) and Pennsylvania Electric Company (Penelec) appealed the PPUC’s decision on the denial of generation rate relief and on a consolidated income tax adjustment related to cost of capital, while other parties appealed the PPUC’s decision on transmission rate relief.  Oral arguments are expected to take place in late 2007 or early 2008.

Met-Ed and Penelec NUG Accounting Case Update

On May 3, 2007, the ALJ issued a recommended decision denying Met-Ed’s and Penelec’s request to modify their Non-Utility Generation (NUG) stranded cost accounting methodology.  The companies filed exceptions to the initial decision on May 23, 2007.  It is not known when the PPUC may issue a final decision in this matter.

Nuclear Update

On May 14, 2007, the Nuclear Regulatory Commission (NRC) issued a Demand for Information related to recent reports prepared at the request of FirstEnergy Nuclear Operating Company (FENOC) by expert witnesses for arbitration of an insurance claim for replacing the damaged reactor head at the Davis-Besse Plant in 2002.  FENOC filed a response with the NRC on June 13, and supplemented that response on July 16, 2007, after participating in an NRC public meeting June 27, 2007, to discuss the company's initial response.

FirstEnergy’s Perry Plant completed its regularly scheduled refueling outage on May 13, 2007. Major work activities performed on the 1,258 megawatt (MW) facility included replacing approximately one-third of the fuel assemblies in the reactor and two of the three low-pressure turbine rotors in the main generator.  On June 29, 2007, the Perry Plant began an outage to replace a 30-ton motor in the reactor recirculation system.  In addition to motor replacement, routine and preventive maintenance and several system inspections were performed to assure continued safe and reliable operation of the plant.  On July 24, the Perry Plant exited its outage and returned to service.

Environmental Update

On May 30, 2007, FirstEnergy announced that Genco plans to install an Electro-Catalytic Oxidation (ECO) system on units 4 and 5 of the R. E. Burger Plant.  The two units produce 312 MW combined.  The original plans called for installation of an ECO system on Unit 4 of the Bay Shore Plant (215 MW).  The decision to install ECO at the Burger Plant will result in additional scrubbed megawatts and better fits the coal-purchasing strategy for both plants.  Design engineering for the new Burger Plant ECO system will begin later this year with anticipated start-up during the first quarter of 2011.  

Jersey Central Power & Light Debt Offering

On May 21, 2007, Jersey Central Power & Light (JCP&L) issued $550 million of senior unsecured notes.  The offering was in two tranches, consisting of $250 million of 5.65% senior notes due 2017, and $300 million of 6.15% senior notes due 2037.  Proceeds from the transaction were used to redeem all outstanding JCP&L first mortgage bonds, repay short-term debt and repurchase common stock from FirstEnergy Corp.

Forward-Looking Statements:  This Consolidated Report to the Financial Community includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “believe,” “estimate” and similar words. Actual results may differ materially due to the speed and nature of increased competition and deregulation in the electric utility industry, economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy’s regulated utilities to collect transition and other charges or to recover increased transmission costs, maintenance costs being higher than anticipated, legislative and regulatory changes (including revised environmental requirements), and the legal and regulatory changes resulting from the implementation of the Energy Policy Act of 2005 (including, but not limited to, the repeal of the Public Utility Holding Company Act of 1935), the uncertainty of the timing and amounts of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than anticipated) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation, adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight) by the NRC (including, but not limited to, the Demand For Information issued to FENOC on May 14, 2007) and the various state public utility commissions as disclosed in our SEC filings, the timing and outcome of various proceedings before the PUCO (including, but not limited to, the Distribution Rate Cases and the generation supply plan filing for the Ohio Companies and the successful resolution of the issues remanded to the PUCO by the Ohio Supreme Court regarding the Rate Stabilization Plan) and the PPUC (including the Pennsylvania Power Company Default Service Plan filing), the resolution of the Petitions for Review filed with the Commonwealth Court of Pennsylvania with respect to the transition rate plan for Met-Ed and Penelec, the continuing availability and operation of generating units, the ability of generating units to continue to operate at, or near full capacity, the inability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), the anticipated benefits from voluntary pension plan contributions, the ability to improve electric commodity margins and to experience growth in the distribution business, the ability to access the public securities and other capital markets and the cost of such capital, the outcome, cost and other effects of present and potential legal and administrative proceedings and claims related to the August 14, 2003 regional power outage, any final adjustment in the purchase price per share under the accelerated share repurchase program announced March 2, 2007, the risks and other factors discussed from time to time in our SEC filings, and other similar factors.  We expressly disclaim any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

Consolidated Report to the Financial Community - 2nd Quarter 2007                                                                                                                                                                       
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