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
|
||||
(d)
|
Exhibits
|
Exhibit No.
|
Description
|
|
99.1
|
Press release issued by FirstEnergy Corp., dated November 1, 2011
|
|
99.2
|
Consolidated Report to the Financial Community, dated November 1, 2011
|
FIRSTENERGY CORP.
|
||
Registrant
|
||
By:
|
||
Harvey L. Wagner
Vice President, Controller and
Chief Accounting Officer
|
Exhibit 99.1 | ||
FirstEnergy Corp. | For Release: November 1, 2011 | |
76 South Main Street | ||
Akron, Ohio 44308 | ||
www.firstenergycorp.com | ||
News Media Contact: | Investor Contact: | |
Tricia Ingraham | Ron Seeholzer | |
(330) 384-5247 | (330) 384-5415 |
GAAP to Non-GAAP* Reconciliation | ||||||
Third Quarter
|
First Nine Months
|
|||||
2011
|
2010
|
2011
|
2010
|
|||
Basic Earnings Per Share (GAAP)
|
$1.22
|
$0.59
|
$1.89
|
$1.97
|
||
Excluding Special Items:
|
||||||
Regulatory Charges
|
--
|
0.02
|
0.05
|
0.11
|
||
Trust Securities Impairment
|
0.01
|
--
|
0.03
|
0.04
|
||
Income Tax Charge–Retiree Drug Change
|
--
|
--
|
--
|
0.04
|
||
Merger-Related Costs
|
0.01
|
0.04
|
0.36
|
0.09
|
||
Non-Core Asset Sales/Impairments
|
0.02
|
--
|
0.08
|
0.02
|
||
Mark-To-Market Adjustments
|
0.01
|
0.03
|
0.06
|
0.06
|
||
Merger Accounting-Commodity Contracts
|
0.06
|
--
|
0.18
|
--
|
||
Litigation Resolution
|
0.01
|
--
|
0.06
|
(0.01)
|
||
Lake Plant Charges
|
--
|
0.60
|
--
|
0.60
|
||
Basic Earnings Per Share (Non-GAAP*)
|
$1.34
|
$1.28
|
$2.71
|
$2.92
|
Estimated 2011, 2012, 2013 Earnings Per Share, GAAP to Non-GAAP* Reconciliation | ||||
2011
|
2012
|
2013
|
||
Basic Earnings Per Share (GAAP)
|
$3.38 - $3.58
|
$3.03 - $3.33
|
$3.07 - $3.37
|
|
Excluding Special Items:
|
||||
Merger-Related Costs
|
0.37
|
0.01
|
0.01
|
|
Regulatory Charges
|
0.05
|
0.01
|
0.02
|
|
Trust Securities Impairment
|
0.03
|
--
|
--
|
|
Non-Core Asset Sales/Impairments
|
(0.85)
|
--
|
--
|
|
Mark-To-Market Adjustments
|
0.06
|
--
|
--
|
|
Litigation Resolution
|
0.06
|
--
|
--
|
|
Merger Accounting-Commodity Contracts
|
0.20
|
0.15
|
0.10
|
|
Basic Earnings Per Share (Non-GAAP*)
|
$3.30 - $3.50
|
$3.20-$3.50
|
$3.20 - $3.50
|
HIGHLIGHTS | ||||
After-Tax EPS Variance Analysis
|
3rd.Qtr.
|
|||
● | Normalized non-GAAP* earnings, excluding special items, were $1.34 per share for the |
3Q 2010 Basic EPS – GAAP Basis
|
$0.59
|
|
third quarter of 2011, compared with $1.28 per share for the third quarter of 2010. |
Special Items – 2010
|
0.69
|
||
GAAP earnings for the third quarter of 2011 were $1.22 per share, compared with $0.59 |
3Q 2010 Normalized Earnings – Non-GAAP Basis*
|
$1.28
|
||
per share for the third quarter of 2010. |
Commodity Margin
|
0.19 | ||
O&M Expenses |
(0.06)
|
|||
Depreciation
|
(0.02)
|
|||
General Taxes | (0.01) | |||
Financing Costs |
(0.05)
|
|||
Increased Common Shares Outstanding
|
(0.35)
|
|||
The following explanations reflect variances for FirstEnergy, excluding the Allegheny Companies. |
Allegheny Companies - Third Quarter 2011
|
0.32
|
||
Third quarter 2011 earnings associated with the Allegheny Companies are noted separately. | Purchase Accounting | 0.04 | ||
3Q 2011 Normalized Earnings – Non-GAAP Basis* |
$1.34
|
|||
Special Items - 2011 | (0.12) | |||
● | Total electric distribution deliveries increased by 610,000 Megawatt-hours (MWH), or 2.1%. | 3Q 2011 Basic EPS – GAAP Basis |
$1.22
|
|
Residential deliveries increased by 101,000 MWH, or 0.9%; commercial deliveries | ||||
decreased 67,000 MWH, or 0.7%, while industrial deliveries increased by 578,000 MWH, | ||||
or 6.5%. Since the increase in total deliveries was predominantly attributed to the industrial class, whose base distribution revenues are derived primarily on peak | ||||
demand as opposed to energy consumption, there was no material impact to earnings compared to the same period last year. Cooling-degree-days were 2% lower | ||||
than the same period last year, but 30% above normal. |
●
|
Higher commodity margin increased earnings by $0.19 per share, due primarily to the combination of higher direct and government aggregation sales, lower fuel expenses and purchased power costs, partially offset by lower Provider of Last Resort (POLR) and wholesale sales, and higher transmission costs.
|
Commodity Margin EPS - 3Q11 vs 3Q10 | Rate | Volume | Total | |||||||
Contract Generation Sales
|
||||||||||
- Direct Sales
|
($0.03)
|
$0.42
|
$0.39
|
|||||||
- Government Aggregation Sales
|
$0.00
|
$0.09
|
$0.09
|
|||||||
- Mass Market Sales
|
($0.01)
|
$0.05
|
$0.04
|
|||||||
Subtotal - Retail Sales
|
($0.04)
|
$0.56
|
$0.52
|
|||||||
- POLR Sales
|
$0.03
|
($0.58)
|
($0.55)
|
|||||||
- Structured Sales
|
$0.00
|
($0.02)
|
($0.02)
|
|||||||
Total - Contract Generation Sales
|
($0.01)
|
($0.04)
|
($0.05)
|
|||||||
Wholesale Sales
|
($0.02)
|
($0.01)
|
($0.03)
|
|||||||
PJM Capacity, FRR Auction
|
($0.02)
|
$0.14
|
$0.12
|
|||||||
REC Sales
|
$0.00
|
$0.01
|
$0.01
|
|||||||
Fuel Expense
|
$0.15
|
$0.04
|
$0.19
|
|||||||
Purchased Power
|
$0.09
|
$0.01
|
$0.10
|
|||||||
Capacity Expense
|
$0.09
|
($0.19)
|
($0.10)
|
|||||||
Net MISO - PJM Transmission
|
($0.15)
|
$0.10
|
($0.05)
|
|||||||
Total Increase / (Decrease)
|
$0.13
|
$0.06
|
$0.19
|
|||||||
FES Contract Generation Sales - 3Q11 vs. 3Q10
|
||||||||||||||||
(thousand MWH)
|
Retail
|
Other
|
||||||||||||||
Direct | Aggr. | Mass Market | POLR | Structured | Total | |||||||||||
Contract Generation Sales Increase / (Decrease)
|
4,858
|
915
|
489
|
(6,856)
|
(381)
|
(975)
|
||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
2
|
|
(b) Wholesale Sales – FES wholesale electricity sales decreased by 409,000 MWH, or 23%, and decreased earnings by $0.03 per share.
|
|
(c) PJM Capacity, Fixed Resource Requirement (FRR) Auction – Higher capacity revenues increased earnings by $0.12 per share, primarily due to FES receiving capacity revenues beginning in June 2011 in connection with transitioning the ATSI zone from MISO to PJM.
|
|
(d) Renewable Energy Credit (REC) Sales – Net REC activity increased earnings by $0.01 per share due to increased sales of RECs partially offset by increased costs imposed by renewable obligation requirements.
|
|
(e) Fuel Expenses – FES generation output for the quarter decreased by 905,000 MWH, or 4%, primarily due to outages at Sammis Unit #6 and load following fossil units. Lower fuel expenses increased earnings by $0.01 per share, as the reduction in generation output more than offset higher average prices in the third quarter of 2011. In addition, the benefit of fuel-contract restructuring in the third quarter of 2011 increased earnings by $0.18 per share.
|
Generation Output - 3Q11 vs. 3Q10
|
||||||||||||
(thousand MWH)
|
Fossil
|
Nuclear
|
Total
|
|||||||||
Generation Output
|
(896)
|
(9)
|
(905)
|
|||||||||
|
(f) Purchased Power – Power purchases decreased by 176,000 MWH or 5%. Spot purchases in MISO increased by 1.9 million MWH, while spot purchases in PJM decreased by 1.9 million MWH. Lower power prices in MISO compared to prices in PJM increased earnings by $0.09 per share, while lower bilateral purchases increased earnings by $0.01 per share.
|
FES Purchased Power - 3Q11 vs. 3Q10
|
||||||||||||
(thousand MWH)
|
Bilaterals
|
Spot
|
Total
|
|||||||||
Purchased Power Increase / (Decrease)
|
(207)
|
31
|
(176)
|
|||||||||
|
(g) Capacity Expenses – Higher capacity expense decreased earnings by $0.10 per share as a result of FES serving more retail load.
|
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
3
|
●
|
Higher O&M expenses reduced earnings by $0.06 per share. Contributing factors include outage preparation costs at the Davis-Besse plant, higher fossil O&M expenses associated with outages during the third quarter of 2011, and higher incentive compensation expense. During the quarter, Hurricane Irene storm restoration costs, primarily impacting JCP&L and Met-Ed, totaled $78 million. A total of $53 million in expenses was related to O&M activities, of which $50 million was deferred for future recovery from customers.
|
●
|
Higher depreciation expense decreased earnings by $0.02 per share, primarily due to the placement of the Sammis Air Quality Control projects in-service at the end of 2010, partially offset by the absence of depreciation expense associated with the Lake Plants, which were impaired in August 2010, and Burger, which was retired in December 2010.
|
●
|
Higher general taxes decreased earnings by $0.01 per share, primarily due to higher payroll and gross receipts tax.
|
●
|
Financing costs decreased earnings by $0.05 per share. Lower capitalized interest decreased earnings by $0.04 per share, while higher interest expense reduced earnings by $0.01 per share.
|
●
|
The increase in shares outstanding, resulting from the merger with Allegheny Energy, reduced earnings by $0.35 per share.
|
●
|
The Allegheny Companies contributed $0.32 per share in earnings during the third quarter of 2011.
|
●
|
The impact of purchase accounting associated with the merger with Allegheny Energy contributed $0.04 per share in earnings during the third quarter of 2011.
|
●
|
The following special items were recognized during the third quarter of 2011:
|
Special Items
|
EPS
|
||||||||||||
Trust Securities Impairment
|
($0.01)
|
||||||||||||
Merger Transaction / Integration Costs
|
(0.01)
|
||||||||||||
Non-Core Asset Sales / Impairments
|
(0.02)
|
||||||||||||
Mark-to-Market Adjustments
|
(0.01)
|
||||||||||||
Litigation Resolution
|
(0.01)
|
||||||||||||
Merger Accounting - Commodity Contracts
|
(0.06)
|
||||||||||||
Total
|
($0.12)
|
||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
4
|
For additional information, please contact:
|
Ronald E. Seeholzer
|
Irene M. Prezelj
|
Rey Y. Jimenez
|
Vice President, Investor Relations
|
Exec. Director, Investor Relations
|
Manager, Investor Relations
|
(330) 384-5415
|
(330) 384-3859
|
(330) 761-4239
|
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
5
|
Three Months Ended September 30
|
Nine Months Ended September 30
|
||||||||||||||||||||||||
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||||||||||||
Revenues
|
|||||||||||||||||||||||||
(1 | ) |
Regulated distribution
|
$ | 2,935 | $ | 2,745 | $ | 190 | $ | 7,688 | $ | 7,562 | $ | 126 | |||||||||||
(2 | ) |
Competitive energy services
|
2,029 | 1,601 | 428 | 5,426 | 4,330 | 1,096 | |||||||||||||||||
(3 | ) |
Regulated independent transmission
|
106 | 73 | 33 | 278 | 189 | 89 | |||||||||||||||||
(4 | ) |
Other corporate & intersegment revenues
|
(351 | ) | (691 | ) | 340 | (1,037 | ) | (1,913 | ) | 876 | |||||||||||||
(5 | ) |
Total Revenues
|
4,719 | 3,728 | 991 | 12,355 | 10,168 | 2,187 | |||||||||||||||||
Operating Expenses
|
|||||||||||||||||||||||||
(6 | ) |
Fuel
|
632 | 400 | 232 | 1,720 | 1,084 | 636 | |||||||||||||||||
(7 | ) |
Purchased power
|
1,349 | 1,319 | 30 | 3,755 | 3,620 | 135 | |||||||||||||||||
(8 | ) |
Other operating expenses
|
1,024 | 738 | 286 | 3,130 | 2,112 | 1,018 | |||||||||||||||||
(9 | ) |
Provision for depreciation
|
292 | 182 | 110 | 794 | 565 | 229 | |||||||||||||||||
(10 | ) |
Amortization of regulatory assets
|
122 | 176 | (54 | ) | 344 | 549 | (205 | ) | |||||||||||||||
(11 | ) |
General taxes
|
269 | 206 | 63 | 748 | 587 | 161 | |||||||||||||||||
(12 | ) |
Impairment of long-lived assets
|
9 | 292 | (283 | ) | 41 | 294 | (253 | ) | |||||||||||||||
(13 | ) |
Total Operating Expenses
|
3,697 | 3,313 | 384 | 10,532 | 8,811 | 1,721 | |||||||||||||||||
(14 | ) |
Operating Income
|
1,022 | 415 | 607 | 1,823 | 1,357 | 466 | |||||||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||||||
(15 | ) |
Investment income
|
48 | 46 | 2 | 100 | 93 | 7 | |||||||||||||||||
(16 | ) |
Interest expense
|
(267 | ) | (208 | ) | (59 | ) | (763 | ) | (628 | ) | (135 | ) | |||||||||||
(17 | ) |
Capitalized interest
|
17 | 41 | (24 | ) | 55 | 122 | (67 | ) | |||||||||||||||
(18 | ) |
Total Other Expense
|
(202 | ) | (121 | ) | (81 | ) | (608 | ) | (413 | ) | (195 | ) | |||||||||||
(19 | ) |
Income Before Income Taxes
|
820 | 294 | 526 | 1,215 | 944 | 271 | |||||||||||||||||
(20 | ) |
Income taxes
|
311 | 119 | 192 | 490 | 364 | 126 | |||||||||||||||||
(21 | ) |
Net Income
|
509 | 175 | 334 | 725 | 580 | 145 | |||||||||||||||||
(22 | ) |
Loss attributable to noncontrolling interest
|
(2 | ) | (4 | ) | 2 | (17 | ) | (19 | ) | 2 | |||||||||||||
(23 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 511 | $ | 179 | $ | 332 | $ | 742 | $ | 599 | $ | 143 | |||||||||||
(24 | ) |
Earnings Per Share of Common Stock
|
|||||||||||||||||||||||
(25 | ) |
Basic
|
$ | 1.22 | $ | 0.59 | $ | 0.63 | $ | 1.89 | $ | 1.97 | $ | (0.08 | ) | ||||||||||
(26 | ) |
Diluted
|
$ | 1.22 | $ | 0.59 | $ | 0.63 | $ | 1.88 | $ | 1.96 | $ | (0.08 | ) | ||||||||||
(27 | ) |
Weighted Average Number of
|
|||||||||||||||||||||||
Common Shares Outstanding
|
|||||||||||||||||||||||||
(28 | ) |
Basic
|
418 | 304 | 114 | 392 | 304 | 88 | |||||||||||||||||
(29 | ) |
Diluted
|
420 | 305 | 115 | 394 | 305 | 89 | |||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
6
|
Three Months Ended September 30, 2011
|
|||||||||||||||||||||
Competitive
|
Regulated
|
Other &
|
|||||||||||||||||||
Regulated
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Distribution (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 2,809 | $ | 1,611 | $ | - | $ | - | $ | 4,420 | |||||||||
(2 | ) |
Other
|
125 | 103 | 106 | (48 | ) | 286 | |||||||||||||
(3 | ) |
Internal revenues
|
1 | 315 | - | (303 | ) | 13 | |||||||||||||
(4 | ) |
Total Revenues
|
2,935 | 2,029 | 106 | (351 | ) | 4,719 | |||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
92 | 540 | - | - | 632 | ||||||||||||||
(6 | ) |
Purchased power
|
1,293 | 362 | - | (306 | ) | 1,349 | |||||||||||||
(7 | ) |
Other operating expenses
|
498 | 540 | 15 | (29 | ) | 1,024 | |||||||||||||
(8 | ) |
Provision for depreciation
|
159 | 110 | 17 | 6 | 292 | ||||||||||||||
(9 | ) |
Amortization of regulatory assets
|
123 | - | (1 | ) | - | 122 | |||||||||||||
(10 | ) |
General taxes
|
200 | 55 | 9 | 5 | 269 | ||||||||||||||
(11 | ) |
Impairment of long-lived assets
|
- | 9 | - | - | 9 | ||||||||||||||
(12 | ) |
Total Operating Expenses
|
2,365 | 1,616 | 40 | (324 | ) | 3,697 | |||||||||||||
(13 | ) |
Operating Income
|
570 | 413 | 66 | (27 | ) | 1,022 | |||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(14 | ) |
Investment income
|
32 | 28 | - | (12 | ) | 48 | |||||||||||||
(15 | ) |
Interest expense
|
(147 | ) | (82 | ) | (13 | ) | (25 | ) | (267 | ) | |||||||||
(16 | ) |
Capitalized interest
|
3 | 9 | 1 | 4 | 17 | ||||||||||||||
(17 | ) |
Total Other Expense
|
(112 | ) | (45 | ) | (12 | ) | (33 | ) | (202 | ) | |||||||||
(18 | ) |
Income Before Income Taxes
|
458 | 368 | 54 | (60 | ) | 820 | |||||||||||||
(19 | ) |
Income taxes
|
170 | 136 | 20 | (15 | ) | 311 | |||||||||||||
(20 | ) |
Net Income
|
288 | 232 | 34 | (45 | ) | 509 | |||||||||||||
(21 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | (2 | ) | (2 | ) | ||||||||||||
(22 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 288 | $ | 232 | $ | 34 | $ | (43 | ) | $ | 511 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (7 | ) | $ | (61 | ) | $ | - | $ | (16 | ) | $ | (84 | ) | |||||||
After-tax special items
|
$ | (4 | ) | $ | (38 | ) | $ | - | $ | (8 | ) | $ | (50 | ) | |||||||
(a)
|
Revenues are primarily derived from the delivery of electricity within FirstEnergy’s service areas, cost recovery of regulatory assets and the sale of electric generation service to retail customers who have not selected an alternative supplier (POLR or default service). Its results reflect the commodity costs of securing electric generation from affiliated and from non-affiliated power suppliers and the deferral and amortization of certain fuel costs.
|
||||||||||||||||||||
(b)
|
Supplies electric power to end-use customers through retail and wholesale arrangements, including associated company power sales to meet all or a portion of the POLR and default service requirements of FirstEnergy's Ohio and Pennsylvania utility subsidiaries and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey.
|
||||||||||||||||||||
(c)
|
Revenues are primarily derived from the formula rate recovery of costs and a return on investment for capital expenditures in connection with TrAIL, PATH and other projects and revenues from providing transmission services to electric energy providers, power marketers and receiving transmission-related revenues from operation of a portion of the FirstEnergy transmission system (ATSI). Its results reflect transmission expenses related to the delivery of the respective generation loads.
|
||||||||||||||||||||
(d)
|
Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions.
|
||||||||||||||||||||
(e)
|
See pages 17 and 18 for additional details related to special items.
|
||||||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
7
|
Three Months Ended September 30, 2010
|
|||||||||||||||||||||
Competitive
|
Regulated
|
Other &
|
|||||||||||||||||||
Regulated
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Distribution (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 2,609 | $ | 940 | $ | - | $ | - | $ | 3,549 | |||||||||
(2 | ) |
Other
|
76 | 62 | 73 | (32 | ) | 179 | |||||||||||||
(3 | ) |
Internal revenues
|
60 | 599 | - | (659 | ) | - | |||||||||||||
(4 | ) |
Total Revenues
|
2,745 | 1,601 | 73 | (691 | ) | 3,728 | |||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
- | 400 | - | - | 400 | ||||||||||||||
(6 | ) |
Purchased power
|
1,473 | 505 | - | (659 | ) | 1,319 | |||||||||||||
(7 | ) |
Other operating expenses
|
400 | 345 | 15 | (22 | ) | 738 | |||||||||||||
(8 | ) |
Provision for depreciation
|
102 | 67 | 9 | 4 | 182 | ||||||||||||||
(9 | ) |
Amortization of regulatory assets
|
176 | - | - | - | 176 | ||||||||||||||
(10 | ) |
General taxes
|
167 | 28 | 8 | 3 | 206 | ||||||||||||||
(11 | ) |
Impairment of long-lived assets
|
- | 292 | - | - | 292 | ||||||||||||||
(12 | ) |
Total Operating Expenses
|
2,318 | 1,637 | 32 | (674 | ) | 3,313 | |||||||||||||
(13 | ) |
Operating Income
|
427 | (36 | ) | 41 | (17 | ) | 415 | ||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(14 | ) |
Investment income
|
24 | 27 | - | (5 | ) | 46 | |||||||||||||
(15 | ) |
Interest expense
|
(125 | ) | (56 | ) | (6 | ) | (21 | ) | (208 | ) | |||||||||
(16 | ) |
Capitalized interest
|
- | 23 | - | 18 | 41 | ||||||||||||||
(17 | ) |
Total Other Expense
|
(101 | ) | (6 | ) | (6 | ) | (8 | ) | (121 | ) | |||||||||
(18 | ) |
Income Before Income Taxes
|
326 | (42 | ) | 35 | (25 | ) | 294 | ||||||||||||
(19 | ) |
Income taxes
|
124 | (16 | ) | 13 | (2 | ) | 119 | ||||||||||||
(20 | ) |
Net Income
|
202 | (26 | ) | 22 | (23 | ) | 175 | ||||||||||||
(21 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | (4 | ) | (4 | ) | ||||||||||||
(22 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 202 | $ | (26 | ) | $ | 22 | $ | (19 | ) | $ | 179 | |||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (21 | ) | $ | (311 | ) | $ | (1 | ) | $ | (1 | ) | $ | (334 | ) | ||||||
After-tax special items
|
$ | (15 | ) | $ | (195 | ) | $ | - | $ | (1 | ) | $ | (211 | ) | |||||||
(a)
|
Revenues are primarily derived from the delivery of electricity within FirstEnergy’s service areas, cost recovery of regulatory assets and the sale of electric generation service to retail customers who have not selected an alternative supplier (POLR or default service). Its results reflect the commodity costs of securing electric generation from affiliated and from non-affiliated power suppliers and the deferral and amortization of certain fuel costs.
|
||||||||||||||||||||
(b)
|
Supplies electric power to end-use customers through retail and wholesale arrangements, including associated company power sales to meet all or a portion of the POLR and default service requirements of FirstEnergy's Ohio and Pennsylvania utility subsidiaries and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey.
|
||||||||||||||||||||
(c)
|
Revenues are primarily derived from the formula rate recovery of costs and a return on investment for capital expenditures in connection with TrAIL, PATH and other projects and revenues from providing transmission services to electric energy providers, power marketers and receiving transmission-related revenues from operation of a portion of the FirstEnergy transmission system (ATSI). Its results reflect transmission expenses related to the delivery of the respective generation loads.
|
||||||||||||||||||||
(d)
|
Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions.
|
||||||||||||||||||||
(e)
|
See pages 17 and 18 for additional details related to special items.
|
||||||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
8
|
Three Months Ended September 30, 2011 vs. Three Months Ended September 30, 2010
|
|||||||||||||||||||||
Energy
|
Competitive
|
Regulated
|
Other &
|
||||||||||||||||||
Delivery
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Services (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 200 | $ | 671 | $ | - | $ | - | $ | 871 | |||||||||
(2 | ) |
Other
|
49 | 41 | 33 | (16 | ) | 107 | |||||||||||||
(3 | ) |
Internal revenues
|
(59 | ) | (284 | ) | - | 356 | 13 | ||||||||||||
(4 | ) |
Total Revenues
|
190 | 428 | 33 | 340 | 991 | ||||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
92 | 140 | - | - | 232 | ||||||||||||||
(6 | ) |
Purchased power
|
(180 | ) | (143 | ) | - | 353 | 30 | ||||||||||||
(7 | ) |
Other operating expenses
|
98 | 195 | - | (7 | ) | 286 | |||||||||||||
(8 | ) |
Provision for depreciation
|
57 | 43 | 8 | 2 | 110 | ||||||||||||||
(9 | ) |
Amortization of regulatory assets
|
(53 | ) | - | (1 | ) | - | (54 | ) | |||||||||||
(10 | ) |
General taxes
|
33 | 27 | 1 | 2 | 63 | ||||||||||||||
(11 | ) |
Impairment of long-lived assets
|
- | (283 | ) | - | - | (283 | ) | ||||||||||||
(12 | ) |
Total Operating Expenses
|
47 | (21 | ) | 8 | 350 | 384 | |||||||||||||
(13 | ) |
Operating Income
|
143 | 449 | 25 | (10 | ) | 607 | |||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(14 | ) |
Investment income (loss)
|
8 | 1 | - | (7 | ) | 2 | |||||||||||||
(15 | ) |
Interest expense
|
(22 | ) | (26 | ) | (7 | ) | (4 | ) | (59 | ) | |||||||||
(16 | ) |
Capitalized interest
|
3 | (14 | ) | 1 | (14 | ) | (24 | ) | |||||||||||
(17 | ) |
Total Other Loss
|
(11 | ) | (39 | ) | (6 | ) | (25 | ) | (81 | ) | |||||||||
(18 | ) |
Income Before Income Taxes
|
132 | 410 | 19 | (35 | ) | 526 | |||||||||||||
(19 | ) |
Income taxes (benefits)
|
46 | 152 | 7 | (13 | ) | 192 | |||||||||||||
(20 | ) |
Net Income
|
86 | 258 | 12 | (22 | ) | 334 | |||||||||||||
(21 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | 2 | 2 | ||||||||||||||
(22 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 86 | $ | 258 | $ | 12 | $ | (24 | ) | $ | 332 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | 14 | $ | 250 | $ | 1 | $ | (15 | ) | $ | 250 | ||||||||||
After-tax special items
|
$ | 11 | $ | 157 | $ | - | $ | (7 | ) | $ | 161 | ||||||||||
(a)
|
Revenues are primarily derived from the delivery of electricity within FirstEnergy’s service areas, cost recovery of regulatory assets and the sale of electric generation service to retail customers who have not selected an alternative supplier (POLR or default service). Its results reflect the commodity costs of securing electric generation from affiliated and from non-affiliated power suppliers and the deferral and amortization of certain fuel costs.
|
||||||||||||||||||||
(b)
|
Supplies electric power to end-use customers through retail and wholesale arrangements, including associated company power sales to meet all or a portion of the POLR and default service requirements of FirstEnergy's Ohio and Pennsylvania utility subsidiaries and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey.
|
||||||||||||||||||||
(c)
|
Revenues are primarily derived from the formula rate recovery of costs and a return on investment for capital expenditures in connection with TrAIL, PATH and other projects and revenues from providing transmission services to electric energy providers, power marketers and receiving transmission-related revenues from operation of a portion of the FirstEnergy transmission system (ATSI). Its results reflect transmission expenses related to the delivery of the respective generation loads.
|
||||||||||||||||||||
(d)
|
Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions.
|
||||||||||||||||||||
(e)
|
See pages 17 and 18 for additional details related to special items.
|
||||||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
9
|
Nine Months Ended September 30, 2011
|
|||||||||||||||||||||
Competitive
|
Regulated
|
Other &
|
|||||||||||||||||||
Regulated
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Distribution (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 7,336 | $ | 4,167 | $ | - | $ | - | $ | 11,503 | |||||||||
(2 | ) |
Other
|
351 | 283 | 278 | (117 | ) | 795 | |||||||||||||
(3 | ) |
Internal revenues
|
1 | 976 | - | (920 | ) | 57 | |||||||||||||
(4 | ) |
Total Revenues
|
7,688 | 5,426 | 278 | (1,037 | ) | 12,355 | |||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
189 | 1,531 | - | - | 1,720 | ||||||||||||||
(6 | ) |
Purchased power
|
3,616 | 1,062 | - | (923 | ) | 3,755 | |||||||||||||
(7 | ) |
Other operating expenses
|
1,322 | 1,807 | 51 | (50 | ) | 3,130 | |||||||||||||
(8 | ) |
Provision for depreciation
|
428 | 305 | 42 | 19 | 794 | ||||||||||||||
(9 | ) |
Amortization of regulatory assets
|
339 | - | 5 | - | 344 | ||||||||||||||
(10 | ) |
General taxes
|
556 | 150 | 25 | 17 | 748 | ||||||||||||||
(11 | ) |
Impairment of long-lived assets
|
- | 30 | - | 11 | 41 | ||||||||||||||
(12 | ) |
Total Operating Expenses
|
6,450 | 4,885 | 123 | (926 | ) | 10,532 | |||||||||||||
(13 | ) |
Operating Income
|
1,238 | 541 | 155 | (111 | ) | 1,823 | |||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(14 | ) |
Investment income
|
84 | 49 | - | (33 | ) | 100 | |||||||||||||
(15 | ) |
Interest expense
|
(427 | ) | (226 | ) | (34 | ) | (76 | ) | (763 | ) | |||||||||
(16 | ) |
Capitalized interest
|
7 | 31 | 2 | 15 | 55 | ||||||||||||||
(17 | ) |
Total Other Expense
|
(336 | ) | (146 | ) | (32 | ) | (94 | ) | (608 | ) | |||||||||
(18 | ) |
Income Before Income Taxes
|
902 | 395 | 123 | (205 | ) | 1,215 | |||||||||||||
(19 | ) |
Income taxes
|
334 | 146 | 45 | (35 | ) | 490 | |||||||||||||
(20 | ) |
Net Income
|
568 | 249 | 78 | (170 | ) | 725 | |||||||||||||
(21 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | (17 | ) | (17 | ) | ||||||||||||
(22 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 568 | $ | 249 | $ | 78 | $ | (153 | ) | $ | 742 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (110 | ) | $ | (286 | ) | $ | (4 | ) | $ | (73 | ) | $ | (473 | ) | ||||||
After-tax special items
|
$ | (72 | ) | $ | (189 | ) | $ | (3 | ) | $ | (60 | ) | $ | (324 | ) | ||||||
(a)
|
Revenues are primarily derived from the delivery of electricity within FirstEnergy’s service areas, cost recovery of regulatory assets and the sale of electric generation service to retail customers who have not selected an alternative supplier (POLR or default service). Its results reflect the commodity costs of securing electric generation from affiliated and from non-affiliated power suppliers and the deferral and amortization of certain fuel costs.
|
||||||||||||||||||||
(b)
|
Supplies electric power to end-use customers through retail and wholesale arrangements, including associated company power sales to meet all or a portion of the POLR and default service requirements of FirstEnergy's Ohio and Pennsylvania utility subsidiaries and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey.
|
||||||||||||||||||||
(c)
|
Revenues are primarily derived from the formula rate recovery of costs and a return on investment for capital expenditures in connection with TrAIL, PATH and other projects and revenues from providing transmission services to electric energy providers, power marketers and receiving transmission-related revenues from operation of a portion of the FirstEnergy transmission system (ATSI). Its results reflect transmission expenses related to the delivery of the respective generation loads.
|
||||||||||||||||||||
(d)
|
Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions.
|
||||||||||||||||||||
(e)
|
See pages 17 and 18 for additional details related to special items.
|
||||||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
10
|
Nine Months Ended September 30, 2010
|
|||||||||||||||||||||
Competitive
|
Regulated
|
Other &
|
|||||||||||||||||||
Regulated
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Distribution (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 7,250 | $ | 2,348 | $ | - | $ | - | $ | 9,598 | |||||||||
(2 | ) |
Other
|
233 | 170 | 189 | (89 | ) | 503 | |||||||||||||
(3 | ) |
Internal revenues
|
79 | 1,812 | - | (1,824 | ) | 67 | |||||||||||||
(4 | ) |
Total Revenues
|
7,562 | 4,330 | 189 | (1,913 | ) | 10,168 | |||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
- | 1,084 | - | - | 1,084 | ||||||||||||||
(6 | ) |
Purchased power
|
4,159 | 1,285 | - | (1,824 | ) | 3,620 | |||||||||||||
(7 | ) |
Other operating expenses
|
1,090 | 1,037 | 45 | (60 | ) | 2,112 | |||||||||||||
(8 | ) |
Provision for depreciation
|
312 | 215 | 28 | 10 | 565 | ||||||||||||||
(9 | ) |
Amortization of regulatory assets
|
543 | - | 6 | - | 549 | ||||||||||||||
(10 | ) |
General taxes
|
459 | 92 | 22 | 14 | 587 | ||||||||||||||
(11 | ) |
Impairment of long-lived assets
|
- | 294 | - | - | 294 | ||||||||||||||
(12 | ) |
Total Operating Expenses
|
6,563 | 4,007 | 101 | (1,860 | ) | 8,811 | |||||||||||||
(13 | ) |
Operating Income
|
999 | 323 | 88 | (53 | ) | 1,357 | |||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(14 | ) |
Investment income
|
78 | 41 | - | (26 | ) | 93 | |||||||||||||
(15 | ) |
Interest expense
|
(375 | ) | (169 | ) | (17 | ) | (67 | ) | (628 | ) | |||||||||
(16 | ) |
Capitalized interest
|
2 | 70 | 1 | 49 | 122 | ||||||||||||||
(17 | ) |
Total Other Expense
|
(295 | ) | (58 | ) | (16 | ) | (44 | ) | (413 | ) | |||||||||
(18 | ) |
Income Before Income Taxes
|
704 | 265 | 72 | (97 | ) | 944 | |||||||||||||
(19 | ) |
Income taxes
|
267 | 101 | 27 | (31 | ) | 364 | |||||||||||||
(20 | ) |
Net Income
|
437 | 164 | 45 | (66 | ) | 580 | |||||||||||||
(21 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | (19 | ) | (19 | ) | ||||||||||||
(22 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 437 | $ | 164 | $ | 45 | $ | (47 | ) | $ | 599 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (67 | ) | $ | (362 | ) | $ | (2 | ) | $ | (2 | ) | $ | (433 | ) | ||||||
After-tax special items
|
$ | (57 | ) | $ | (227 | ) | $ | (1 | ) | $ | (3 | ) | $ | (288 | ) | ||||||
(a)
|
Revenues are primarily derived from the delivery of electricity within FirstEnergy’s service areas, cost recovery of regulatory assets and the sale of electric generation service to retail customers who have not selected an alternative supplier (POLR or default service). Its results reflect the commodity costs of securing electric generation from affiliated and from non-affiliated power suppliers and the deferral and amortization of certain fuel costs.
|
||||||||||||||||||||
(b)
|
Supplies electric power to end-use customers through retail and wholesale arrangements, including associated company power sales to meet all or a portion of the POLR and default service requirements of FirstEnergy's Ohio and Pennsylvania utility subsidiaries and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey.
|
||||||||||||||||||||
(c)
|
Revenues are primarily derived from the formula rate recovery of costs and a return on investment for capital expenditures in connection with TrAIL, PATH and other projects and revenues from providing transmission services to electric energy providers, power marketers and receiving transmission-related revenues from operation of a portion of the FirstEnergy transmission system (ATSI). Its results reflect transmission expenses related to the delivery of the respective generation loads.
|
||||||||||||||||||||
(d)
|
Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions.
|
||||||||||||||||||||
(e)
|
See pages 17 and 18 for additional details related to special items.
|
||||||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
11
|
Nine Months Ended September 30, 2011 vs. Nine Months Ended September 30, 2010
|
|||||||||||||||||||||
Energy
|
Competitive
|
Regulated
|
Other &
|
||||||||||||||||||
Delivery
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Services (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 86 | $ | 1,819 | $ | - | $ | - | $ | 1,905 | |||||||||
(2 | ) |
Other
|
118 | 113 | 89 | (28 | ) | 292 | |||||||||||||
(3 | ) |
Internal revenues
|
(78 | ) | (836 | ) | - | 904 | (10 | ) | |||||||||||
(4 | ) |
Total Revenues
|
126 | 1,096 | 89 | 876 | 2,187 | ||||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
189 | 447 | - | - | 636 | ||||||||||||||
(6 | ) |
Purchased power
|
(543 | ) | (223 | ) | - | 901 | 135 | ||||||||||||
(7 | ) |
Other operating expenses
|
232 | 770 | 6 | 10 | 1,018 | ||||||||||||||
(8 | ) |
Provision for depreciation
|
116 | 90 | 14 | 9 | 229 | ||||||||||||||
(9 | ) |
Amortization of regulatory assets
|
(204 | ) | - | (1 | ) | - | (205 | ) | |||||||||||
(10 | ) |
General taxes
|
97 | 58 | 3 | 3 | 161 | ||||||||||||||
(11 | ) |
Impairment of long-lived assets
|
- | (264 | ) | - | 11 | (253 | ) | ||||||||||||
(12 | ) |
Total Operating Expenses
|
(113 | ) | 878 | 22 | 934 | 1,721 | |||||||||||||
(13 | ) |
Operating Income
|
239 | 218 | 67 | (58 | ) | 466 | |||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(14 | ) |
Investment income (loss)
|
6 | 8 | - | (7 | ) | 7 | |||||||||||||
(15 | ) |
Interest expense
|
(52 | ) | (57 | ) | (17 | ) | (9 | ) | (135 | ) | |||||||||
(16 | ) |
Capitalized interest
|
5 | (39 | ) | 1 | (34 | ) | (67 | ) | |||||||||||
(17 | ) |
Total Other Income
|
(41 | ) | (88 | ) | (16 | ) | (50 | ) | (195 | ) | |||||||||
(18 | ) |
Income Before Income Taxes
|
198 | 130 | 51 | (108 | ) | 271 | |||||||||||||
(19 | ) |
Income taxes (benefits)
|
67 | 45 | 18 | (4 | ) | 126 | |||||||||||||
(20 | ) |
Net Income
|
131 | 85 | 33 | (104 | ) | 145 | |||||||||||||
(21 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | 2 | 2 | ||||||||||||||
(22 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 131 | $ | 85 | $ | 33 | $ | (106 | ) | $ | 143 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (43 | ) | $ | 76 | $ | (2 | ) | $ | (71 | ) | $ | (40 | ) | |||||||
After-tax special items
|
$ | (15 | ) | $ | 38 | $ | (2 | ) | $ | (57 | ) | $ | (36 | ) | |||||||
(a)
|
Revenues are primarily derived from the delivery of electricity within FirstEnergy’s service areas, cost recovery of regulatory assets and the sale of electric generation service to retail customers who have not selected an alternative supplier (POLR or default service). Its results reflect the commodity costs of securing electric generation from affiliated and from non-affiliated power suppliers and the deferral and amortization of certain fuel costs.
|
||||||||||||||||||||
(b)
|
Supplies electric power to end-use customers through retail and wholesale arrangements, including associated company power sales to meet all or a portion of the POLR and default service requirements of FirstEnergy's Ohio and Pennsylvania utility subsidiaries and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey.
|
||||||||||||||||||||
(c)
|
Revenues are primarily derived from the formula rate recovery of costs and a return on investment for capital expenditures in connection with TrAIL, PATH and other projects and revenues from providing transmission services to electric energy providers, power marketers and receiving transmission-related revenues from operation of a portion of the FirstEnergy transmission system (ATSI). Its results reflect transmission expenses related to the delivery of the respective generation loads.
|
||||||||||||||||||||
(d)
|
Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions.
|
||||||||||||||||||||
(e)
|
See pages 17 and 18 for additional details related to special items.
|
||||||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
12
|
Condensed Consolidated Balance Sheets
|
||||||||
As of
|
As of
|
|||||||
Assets
|
Sep. 30, 2011
|
Dec. 31, 2010
|
||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 291 | $ | 1,019 | ||||
Receivables
|
1,880 | 1,568 | ||||||
Other
|
1,420 | 1,111 | ||||||
Total Current Assets
|
3,591 | 3,698 | ||||||
Assets Pending Sale
|
402 | - | ||||||
Property, Plant and Equipment
|
29,267 | 19,788 | ||||||
Investments
|
3,132 | 3,002 | ||||||
Deferred Charges and Other Assets
|
10,269 | 8,317 | ||||||
Total Assets
|
$ | 46,661 | $ | 34,805 | ||||
Liabilities and Capitalization
|
||||||||
Current Liabilities:
|
||||||||
Currently payable long-term debt
|
$ | 1,840 | $ | 1,486 | ||||
Short-term borrowings
|
- | 700 | ||||||
Accounts payable
|
1,009 | 872 | ||||||
Other
|
2,014 | 1,640 | ||||||
Total Current Liabilities
|
4,863 | 4,698 | ||||||
Liabilities Related to Assets Pending Sale
|
401 | - | ||||||
Capitalization:
|
||||||||
Total equity
|
13,015 | 8,513 | ||||||
Long-term debt and other long-term obligations
|
15,823 | 12,579 | ||||||
Total Capitalization
|
28,838 | 21,092 | ||||||
Noncurrent Liabilities
|
12,559 | 9,015 | ||||||
Total Liabilities and Capitalization
|
$ | 46,661 | $ | 34,805 | ||||
General Information
|
||||||||||||||||
Three Months Ended Sep. 30
|
Nine Months Ended Sep. 30
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Debt redemptions
|
$ | (579 | ) | $ | (15 | ) | $ | (1,581 | ) | $ | (422 | ) | ||||
New long-term debt issues
|
$ | 100 | $ | 251 | $ | 603 | $ | 251 | ||||||||
Short-term borrowings decrease
|
$ | (656 | ) | $ | (452 | ) | $ | (700 | ) | $ | (171 | ) | ||||
Property additions
|
$ | 511 | $ | 470 | $ | 1,529 | $ | 1,467 | ||||||||
Adjusted Capitalization**
|
||||||||||||||||
As of September 30
|
As of December 31
|
|||||||||||||||
2011
|
% Total
|
2010
|
% Total
|
|||||||||||||
Total equity (GAAP)*
|
$ | 13,015 | 42 | % | $ | 8,513 | 36 | % | ||||||||
Long-term debt and other long-term obligations
|
15,823 | 51 | % | 12,579 | 55 | % | ||||||||||
Currently payable long-term debt
|
1,840 | 7 | % | 1,486 | 6 | % | ||||||||||
Short-term borrowings
|
- | - | 700 | 3 | % | |||||||||||
Adjustments:
|
||||||||||||||||
Sale-leaseback net debt equivalents
|
1,312 | 4 | % | 1,357 | 6 | % | ||||||||||
Securitization debt and cash
|
(1,058 | ) | -4 | % | (1,295 | ) | -6 | % | ||||||||
Adjusted capitalization (Non-GAAP)
|
$ | 30,932 | 100 | % | $ | 23,340 | 100 | % | ||||||||
*Includes $(1,436) million and $(1,539) million, respectively, of Accumulated Other Comprehensive Loss
|
||||||||||||||||
** Excludes "Liabilities Related to Assets Pending Sale"
|
||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
13
|
Condensed Consolidated Statements of Cash Flows
|
||||||||||||||||
Three Months Ended September 30
|
Nine Months Ended September 30
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Net income
|
$ | 509 | $ | 175 | $ | 725 | $ | 580 | ||||||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||||||||||
Depreciation and amortization of regulatory assets
|
414 | 358 | 1,138 | 1,114 | ||||||||||||
Nuclear fuel and lease amortization
|
60 | 47 | 152 | 123 | ||||||||||||
Deferred purchased power and other costs
|
(54 | ) | (46 | ) | (222 | ) | (192 | ) | ||||||||
Deferred income taxes and investment tax credits
|
84 | 100 | 636 | 259 | ||||||||||||
Deferred rents and lease market valuation liability
|
44 | 41 | (17 | ) | (21 | ) | ||||||||||
Accrued compensation and retirement benefits
|
46 | 75 | 95 | 48 | ||||||||||||
Commodity derivative transactions, net
|
(1 | ) | (11 | ) | (22 | ) | (40 | ) | ||||||||
Pension trust contribution
|
(113 | ) | - | (375 | ) | - | ||||||||||
Asset impairments
|
18 | 294 | 59 | 315 | ||||||||||||
Cash collateral paid, net
|
(35 | ) | 9 | (66 | ) | (54 | ) | |||||||||
Interest rate swap transactions
|
- | 86 | - | 129 | ||||||||||||
Gain on investment securities held in trusts
|
(49 | ) | (20 | ) | (56 | ) | (39 | ) | ||||||||
Change in working capital and other
|
275 | 107 | 182 | (149 | ) | |||||||||||
Cash flows provided from operating activities
|
1,198 | 1,215 | 2,229 | 2,073 | ||||||||||||
Cash flows provided from (used for) financing activities
|
(1,363 | ) | (386 | ) | (2,402 | ) | (870 | ) | ||||||||
Cash flows used for investing activities*
|
(20 | ) | (478 | ) | (555 | ) | (1,445 | ) | ||||||||
Net change in cash and cash equivalents
|
$ | (185 | ) | $ | 351 | $ | (728 | ) | $ | (242 | ) | |||||
*Includes $590 million of cash received from the Allegheny merger for the nine months ended September 30, 2011.
|
||||||||||||||||
Deferral and Amortization
|
Three Months Ended September 30
|
Nine Months Ended September 30
|
|||||||||||||||||||||||
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||||||||||||
Ohio Amended ESP Amortization (Deferral)
|
|||||||||||||||||||||||||
Uncollectible customer accounts
|
$ | - | $ | (1 | ) | $ | 1 | $ | (2 | ) | $ | (3 | ) | $ | 1 | ||||||||||
Economic development costs & interest
|
17 | 1 | 16 | 3 | 8 | (5 | ) | ||||||||||||||||||
Generation cost rider true-up & interest
|
13 | (6 | ) | 19 | (11 | ) | 1 | (12 | ) | ||||||||||||||||
Distribution reliability costs (RDD/NDD)
|
(1 | ) | 14 | (15 | ) | 123 | 85 | 38 | |||||||||||||||||
Ohio Transmission Amortization
|
|||||||||||||||||||||||||
Transmission costs
|
6 | (16 | ) | 22 | 5 | (37 | ) | 42 | |||||||||||||||||
Ohio Other Amortization (Deferral)
|
|||||||||||||||||||||||||
Generation related deferral
|
23 | 17 | 6 | (45 | ) | (36 | ) | (9 | ) | ||||||||||||||||
Distribution related deferral
|
26 | 2 | 24 | 36 | 50 | (14 | ) | ||||||||||||||||||
All Other
|
- | 48 | (48 | ) | - | 129 | (129 | ) | |||||||||||||||||
Pennsylvania Amortization (Deferral)
|
|||||||||||||||||||||||||
PJM transmission costs
|
(58 | ) | (20 | ) | (38 | ) | (126 | ) | (4 | ) | (122 | ) | |||||||||||||
NUG costs
|
49 | 15 | 34 | 162 | 38 | 124 | |||||||||||||||||||
Storm costs
|
(14 | ) | - | (14 | ) | (18 | ) | - | (18 | ) | |||||||||||||||
All Other
|
67 | 22 | 45 | 112 | 67 | 45 | |||||||||||||||||||
New Jersey Amortization (Deferral)
|
|||||||||||||||||||||||||
NUG costs
|
26 | 81 | (55 | ) | 122 | 207 | (85 | ) | |||||||||||||||||
Storm costs
|
(48 | ) | (1 | ) | (47 | ) | (50 | ) | (19 | ) | (31 | ) | |||||||||||||
All Other
|
18 | 20 | (2 | ) | 46 | 63 | (17 | ) | |||||||||||||||||
Allegheny Amortization (Deferral)*
|
(2 | ) | N/A | (2 | ) | (13 | ) | N/A | (13 | ) | |||||||||||||||
Total Amortization (Deferral)
|
$ | 122 | $ | 176 | $ | (54 | ) | $ | 344 | $ | 549 | $ | (205 | ) | |||||||||||
*Represents data for March 2011 - September 2011 only.
|
|||||||||||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
14
|
Electric Sales Statistics (kWh in millions)
|
||||||||||||||||
Electric Distribution Deliveries |
Three Months Ended September 30
|
Nine Months Ended September 30 | ||||||||||||||
Pre-Merger Companies
|
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||
Ohio
|
- Residential
|
5,058
|
4,993
|
1.3%
|
13,824
|
13,522
|
2.2%
|
|||||||||
- Commercial
|
4,192
|
4,273
|
-1.9%
|
11,795
|
11,814
|
-0.2%
|
||||||||||
- Industrial
|
5,563
|
5,043
|
10.3%
|
15,439
|
14,757
|
4.6%
|
||||||||||
- Other
|
86
|
86
|
0.0%
|
257
|
263
|
-2.3%
|
||||||||||
Total Ohio
|
14,899
|
14,395
|
3.5%
|
41,315
|
40,356
|
2.4%
|
||||||||||
Pennsylvania
|
- Residential
|
3,135
|
3,095
|
1.3%
|
9,123
|
9,063
|
0.7%
|
|||||||||
- Commercial
|
2,099
|
2,061
|
1.8%
|
5,931
|
6,026
|
-1.6%
|
||||||||||
- Industrial
|
3,333
|
3,251
|
2.5%
|
9,868
|
9,483
|
4.1%
|
||||||||||
- Other
|
19
|
21
|
-9.5%
|
59
|
62
|
-4.8%
|
||||||||||
Total Pennsylvania
|
8,586
|
8,428
|
1.9%
|
24,981
|
24,634
|
1.4%
|
||||||||||
New Jersey
|
- Residential
|
3,250
|
3,254
|
-0.1%
|
7,757
|
7,875
|
-1.5%
|
|||||||||
- Commercial
|
2,676
|
2,700
|
-0.9%
|
7,096
|
7,268
|
-2.4%
|
||||||||||
- Industrial
|
636
|
660
|
-3.6%
|
1,865
|
1,911
|
-2.4%
|
||||||||||
- Other
|
23
|
23
|
0.0%
|
67
|
67
|
0.0%
|
||||||||||
Total New Jersey
|
6,585
|
6,637
|
-0.8%
|
16,785
|
17,121
|
-2.0%
|
||||||||||
Total Residential
|
11,443
|
11,342
|
0.9%
|
30,704
|
30,460
|
0.8%
|
||||||||||
Total Commercial
|
8,967
|
9,034
|
-0.7%
|
24,822
|
25,108
|
-1.1%
|
||||||||||
Total Industrial
|
9,532
|
8,954
|
6.5%
|
27,172
|
26,151
|
3.9%
|
||||||||||
Total Other
|
128
|
130
|
-1.5%
|
383
|
392
|
-2.3%
|
||||||||||
Total Pre-Merger Companies Distribution Deliveries
|
30,070
|
29,460
|
2.1%
|
83,081
|
82,111
|
1.2%
|
||||||||||
AYE Companies*
|
||||||||||||||||
Pennsylvania
|
5,134
|
5,188
|
-1.0%
|
11,630
|
N/A
|
N/A
|
||||||||||
West Virginia
|
3,603
|
3,596
|
0.2%
|
7,999
|
N/A
|
N/A
|
||||||||||
Maryland
|
1,843
|
1,817
|
1.4%
|
4,019
|
N/A
|
N/A
|
||||||||||
Total AYE Distribution Deliveries
|
10,580
|
10,601
|
-0.2%
|
23,648
|
N/A
|
N/A
|
||||||||||
Total Distribution Deliveries
|
40,650
|
29,460
|
38.0%
|
106,729
|
82,111
|
30.0%
|
||||||||||
* Represents data beginning in March 2011. Q3 2010 is shown for informational purposes only and is excluded from the "Total Distribution Deliveries" line item.
|
||||||||||||||||
Weather
|
Three Months Ended September 30
|
Nine Months Ended September 30
|
||||||||||||||
2011
|
2010
|
Normal
|
2011
|
2010
|
Normal
|
|||||||||||
Composite Heating-Degree-Days
|
66
|
51
|
91
|
3,485
|
3,240
|
3,534
|
||||||||||
Composite Cooling-Degree-Days
|
829
|
862
|
644
|
1,145
|
1,242
|
889
|
||||||||||
Shopping Statistics(1) | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
OE
|
75%
|
61%
|
73%
|
56%
|
||||||||
PP
|
59%
|
55%
|
57%
|
54%
|
||||||||
CEI
|
84%
|
67%
|
82%
|
61%
|
||||||||
TE
|
75%
|
69%
|
73%
|
65%
|
||||||||
JCP&L
|
42%
|
33%
|
43%
|
33%
|
||||||||
Met-Ed
|
48%
|
3%
|
45%
|
1%
|
||||||||
Penelec
|
59%
|
4%
|
53%
|
3%
|
||||||||
MP
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||
PE(2)
|
44%
|
N/A
|
44%
|
N/A
|
||||||||
WP
|
52%
|
N/A
|
50%
|
N/A
|
||||||||
(1) Based upon average quarterly MWH, except for MP, PE and WP which is based upon March - September MWH.
|
||||||||||||
(2) Represents Maryland only.
|
Competitive Operating Statistics* | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
Capacity Factors:
|
|||||||||||||
Nuclear
|
98%
|
98%
|
88%
|
87%
|
|||||||||
Fossil - Baseload
|
76%
|
83%
|
69%
|
72%
|
|||||||||
Fossil - Load Following
|
48%
|
55%
|
51%
|
57%
|
|||||||||
Generation Output:
|
|||||||||||||
Nuclear
|
30%
|
42%
|
31%
|
42%
|
|||||||||
Fossil - Baseload
|
55%
|
39%
|
51%
|
38%
|
|||||||||
Fossil - Load Following
|
13%
|
18%
|
15%
|
21%
|
|||||||||
Peaking/Hydro
|
3%
|
1%
|
2%
|
-
|
|||||||||
* Includes data for AYE's unregulated generating plants beginning in March 2011.
|
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
15
|
Summary of Sales, Power Purchases and Generation Output (kWh in millions)
|
||||||||||||||||
Pre-Merger Companies
|
Three Months Ended September 30
|
Nine Months Ended September 30
|
||||||||||||||
FES Contract Generation Sales
|
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||
POLR
|
||||||||||||||||
- OH
|
821
|
3,999
|
(3,178)
|
5,382
|
12,480
|
(7,098)
|
||||||||||
- PA
|
1,696
|
5,374
|
(3,678)
|
6,414
|
15,533
|
(9,119)
|
||||||||||
Total POLR
|
2,517
|
9,373
|
(6,856)
|
11,796
|
28,013
|
(16,217)
|
||||||||||
Structured/Standard Sales
|
||||||||||||||||
- Bilaterals
|
711
|
1,092
|
(381)
|
993
|
2,119
|
(1,126)
|
||||||||||
Total Structured/Standard Sales
|
711
|
1,092
|
(381)
|
993
|
2,119
|
(1,126)
|
||||||||||
Direct - LCI
|
||||||||||||||||
- OH
|
6,360
|
4,875
|
1,485
|
16,839
|
12,693
|
4,146
|
||||||||||
- PA
|
3,505
|
1,125
|
2,380
|
9,764
|
3,183
|
6,581
|
||||||||||
- NJ
|
477
|
382
|
95
|
1,278
|
1,016
|
262
|
||||||||||
- MI
|
538
|
438
|
100
|
1,440
|
1,126
|
314
|
||||||||||
- IL
|
810
|
611
|
199
|
2,231
|
1,601
|
630
|
||||||||||
- MD
|
168
|
81
|
87
|
441
|
208
|
233
|
||||||||||
Total Direct - LCI
|
11,858
|
7,512
|
4,346
|
31,993
|
19,827
|
12,166
|
||||||||||
Direct - MCI
|
||||||||||||||||
- OH
|
573
|
298
|
275
|
1,344
|
832
|
512
|
||||||||||
- PA
|
244
|
7
|
237
|
556
|
16
|
540
|
||||||||||
Total Direct - MCI
|
817
|
305
|
512
|
1,900
|
848
|
1,052
|
||||||||||
Aggregation
|
||||||||||||||||
- OH
|
4,540
|
3,628
|
912
|
12,319
|
8,832
|
3,487
|
||||||||||
- IL
|
3
|
-
|
3
|
3
|
-
|
3
|
||||||||||
Total Aggregation
|
4,543
|
3,628
|
915
|
12,322
|
8,832
|
3,490
|
||||||||||
Mass Market
|
||||||||||||||||
- OH
|
224
|
137
|
87
|
529
|
342
|
187
|
||||||||||
- PA
|
428
|
26
|
402
|
624
|
64
|
560
|
||||||||||
Total Mass Market
|
652
|
163
|
489
|
1,153
|
406
|
747
|
||||||||||
Total Contract Generation Sales
|
21,098
|
22,073
|
(975)
|
60,157
|
60,045
|
112
|
||||||||||
Wholesale Sales
|
||||||||||||||||
- Spot
|
1,334
|
1,743
|
(409)
|
2,714
|
3,281
|
(567)
|
||||||||||
Total Wholesale Sales
|
1,334
|
1,743
|
(409)
|
2,714
|
3,281
|
(567)
|
||||||||||
Purchased Power
|
||||||||||||||||
- Bilaterals
|
540
|
747
|
(207)
|
2,008
|
2,511
|
(503)
|
||||||||||
- Spot
|
2,940
|
2,909
|
31
|
9,121
|
6,691
|
2,430
|
||||||||||
Total Purchased Power
|
3,480
|
3,656
|
(176)
|
11,129
|
9,202
|
1,927
|
||||||||||
Generation Output
|
||||||||||||||||
- Fossil
|
11,209
|
12,105
|
(896)
|
30,897
|
32,810
|
(1,913)
|
||||||||||
- Nuclear
|
8,661
|
8,670
|
(9)
|
23,039
|
22,876
|
163
|
||||||||||
Total Generation Output
|
19,870
|
20,775
|
(905)
|
53,936
|
55,686
|
(1,750)
|
||||||||||
Allegheny Companies*
|
||||||||||||||||
AE Supply Contract Generation Sales
|
2011
|
2011
|
||||||||||||||
POLR
|
2,603
|
5,584
|
||||||||||||||
Structured/Standard Sales
|
179
|
1,328
|
||||||||||||||
Direct - LCI
|
413
|
983
|
||||||||||||||
Total Contract Generation Sales
|
3,195
|
7,895
|
||||||||||||||
Wholesale Sales
|
5,735
|
11,722
|
||||||||||||||
Purchased Power
|
134
|
298
|
||||||||||||||
Generation Output - Competitive
|
8,881
|
8,258
|
623
|
19,492
|
||||||||||||
*Represents data beginning in March 2011. Generation output for AYE Companies in 3Q 2010 is shown for informational purposes only.
|
||||||||||||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
16
|
Competitive
|
Regulated
|
|||||||||||||||||||||
Regulated
|
Energy
|
Independent
|
||||||||||||||||||||
Special Items - Three Months Ended Sep. 30, 2011 |
Distribution
|
Services
|
Transmission
|
Other
|
Consolidated
|
|||||||||||||||||
Pre-Tax Items: | ||||||||||||||||||||||
Regulatory charges | $ | (3 | ) | $ | - | $ | - | $ | - | $ | (3 | ) | ||||||||||
Trust securities impairment | (1 | ) | (8 | ) | - | - | (9 | ) | ||||||||||||||
Merger transaction/integration costs | (2 | ) | (2 | ) | - | - | (4 | ) | ||||||||||||||
Non-core asset sales/impairments | - | (1 | ) | - | (16 | ) | (17 | ) | ||||||||||||||
Mark-to-market adjustments | - | (6 | ) | - | - | (6 | ) | |||||||||||||||
Merger accounting - commodity contracts | (2 | ) | (39 | ) | - | - | (41 | ) | ||||||||||||||
Litigation resolution | 1 | (5 | ) | - | - | (4 | ) | |||||||||||||||
Debt redemption costs | - | - | - | - | - | |||||||||||||||||
Subtotal | (7 | ) | (61 | ) | - | (16 | ) | (84 | ) | |||||||||||||
Income taxes | 3 | 23 | - | 8 | 34 | |||||||||||||||||
After-Tax Effect | $ | (4 | ) | $ | (38 | ) | $ | - | $ | (8 | ) | $ | (50 | ) | ||||||||
Competitive
|
Regulated
|
|||||||||||||||||||||
Regulated
|
Energy
|
Independent
|
||||||||||||||||||||
Special Items - Three Months Ended Sep. 30, 2010 |
Distribution
|
Services
|
Transmission
|
Other
|
Consolidated
|
|||||||||||||||||
Pre-Tax Items: | ||||||||||||||||||||||
Regulatory charges | $ | (12 | ) | $ | - | $ | - | $ | - | $ | (12 | ) | ||||||||||
Trust securities impairment | - | (2 | ) | - | - | (2 | ) | |||||||||||||||
Merger transaction/integration costs | (9 | ) | (4 | ) | (1 | ) | (1 | ) | (15 | ) | ||||||||||||
Mark-to-market adjustments | - | (13 | ) | - | - | (13 | ) | |||||||||||||||
Lake plant charges | - | (292 | ) | - | - | (292 | ) | |||||||||||||||
Subtotal | (21 | ) | (311 | ) | (1 | ) | (1 | ) | (334 | ) | ||||||||||||
Income taxes | 6 | 116 | 1 | - | 123 | |||||||||||||||||
After-Tax Effect | $ | (15 | ) | $ | (195 | ) | $ | - | $ | (1 | ) | $ | (211 | ) | ||||||||
Competitive
|
Regulated
|
|||||||||||||||||||||
Regulated
|
Energy
|
Independent
|
||||||||||||||||||||
Special Items - Nine Months Ended Sep. 30, 2011 |
Distribution
|
Services
|
Transmission
|
Other
|
Consolidated
|
|||||||||||||||||
Pre-Tax Items: | ||||||||||||||||||||||
Regulatory charges | $ | (24 | ) | $ | - | $ | - | $ | (10 | ) | $ | (34 | ) | |||||||||
Trust securities impairment | (2 | ) | (16 | ) | - | - | (18 | ) | ||||||||||||||
Merger transaction/integration costs | (82 | ) | (87 | ) | (4 | ) | (5 | ) | (178 | ) | ||||||||||||
Non-core asset sales/impairments | - | (22 | ) | - | (27 | ) | (49 | ) | ||||||||||||||
Mark-to-market adjustments | - | (38 | ) | - | - | (38 | ) | |||||||||||||||
Merger accounting - commodity contracts | (4 | ) | (112 | ) | - | - | (116 | ) | ||||||||||||||
Litigation resolution | 2 | (10 | ) | - | (29 | ) | (37 | ) | ||||||||||||||
Debt redemption costs | - | (1 | ) | - | (2 | ) | (3 | ) | ||||||||||||||
Subtotal | (110 | ) | (286 | ) | (4 | ) | (73 | ) | (473 | ) | ||||||||||||
Income tax charge/income tax resolution | - | (1 | ) | - | (16 | ) | (17 | ) | ||||||||||||||
Income tax effect of pre-tax items | 38 | 98 | 1 | 29 | 166 | |||||||||||||||||
After-Tax Effect | $ | (72 | ) | $ | (189 | ) | $ | (3 | ) | $ | (60 | ) | $ | (324 | ) | |||||||
Competitive
|
Regulated
|
|||||||||||||||||||||
Regulated
|
Energy
|
Independent
|
||||||||||||||||||||
Special Items - Nine Months Ended Sep. 30, 2010 |
Distribution
|
Services
|
Transmission
|
Other
|
Consolidated
|
|||||||||||||||||
Pre-Tax Items: | ||||||||||||||||||||||
Regulatory charges | $ | (52 | ) | $ | - | $ | - | $ | - | $ | (52 | ) | ||||||||||
Trust securities impairment | - | (21 | ) | - | - | (21 | ) | |||||||||||||||
Merger transaction/integration costs | (22 | ) | (10 | ) | (2 | ) | (2 | ) | (36 | ) | ||||||||||||
Non-core asset sales/impairments | - | (9 | ) | - | - | (9 | ) | |||||||||||||||
Mark-to-market adjustments | - | (30 | ) | - | - | (30 | ) | |||||||||||||||
Litigation resolution | 7 | - | - | - | 7 | |||||||||||||||||
Lake plant charges | - | (292 | ) | - | - | (292 | ) | |||||||||||||||
Subtotal | (67 | ) | (362 | ) | (2 | ) | (2 | ) | (433 | ) | ||||||||||||
Income tax charge/income tax resolution | (13 | ) | - | - | - | (13 | ) | |||||||||||||||
Income tax effect of pre-tax items | 23 | 135 | 1 | (1 | ) | 158 | ||||||||||||||||
After-Tax Effect | $ | (57 | ) | $ | (227 | ) | $ | (1 | ) | $ | (3 | ) | $ | (288 | ) | |||||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
17
|
Special Items | ||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||
Pre-tax Items - Income Increase (Decrease)
|
||||||||||||||||||||
Regulatory charges (a)
|
$ | (3 | ) | $ | (12 | ) | $ | (34 | ) | $ | (52 | ) | ||||||||
Trust securities impairment (b)
|
(9 | ) | (2 | ) | (18 | ) | (21 | ) | ||||||||||||
Merger transaction/integration costs (c)
|
(4 | ) | (15 | ) | (178 | ) | (36 | ) | ||||||||||||
Non-core asset sales/impairments (d)
|
(17 | ) | - | (49 | ) | (9 | ) | |||||||||||||
Mark-to-market adjustments (e)
|
(6 | ) | (13 | ) | (38 | ) | (30 | ) | ||||||||||||
Merger accounting - commodity contracts (f)
|
(41 | ) | - | (116 | ) | - | ||||||||||||||
Litigation resolution (g)
|
(4 | ) | - | (37 | ) | 7 | ||||||||||||||
Debt redemption costs (h)
|
- | - | (3 | ) | - | |||||||||||||||
Lake plant charges (i)
|
- | (292 | ) | - | (292 | ) | ||||||||||||||
Total-Pretax Items
|
$ | (84 | ) | $ | (334 | ) | $ | (473 | ) | $ | (433 | ) | ||||||||
Income tax charge/Income tax resolution
|
$ | - | $ | - | $ | (17 | ) | $ | (13 | ) | ||||||||||
EPS Effect
|
$ | (0.12 | ) | $ | (0.69 | ) | $ | (0.82 | ) | $ | (0.95 | ) | ||||||||
(a)
|
For YTD 2011, $16 million included in "Amortization of regulatory assets"; $12 million included in "Other operating expenses"; $6 million included in "Revenues". For YTD 2010, $35 million included in "Amortization of regulatory assets"; $17 million included in "Other operating expenses".
|
|||||||||||||||||||
(b)
|
Included in "Investment income".
|
|||||||||||||||||||
(c)
|
For YTD 2011, $172 million Included in "Other operating expenses"; $6 million included in "Fuel". For YTD 2010, included in "Other operating expenses".
|
|||||||||||||||||||
(d)
|
For YTD 2011, $41 million included in "Impairment of long-lived assets"; $8 million included in "Revenues". For YTD 2010, $7 million included in "Depreciation"; $2 million included in Revenues - "Competitive energy services".
|
|||||||||||||||||||
(e)
|
For YTD 2011, included in "Other operating expenses". For YTD, 2010 included in "Purchased power".
|
|||||||||||||||||||
(f)
|
For YTD 2011, $45 million included in "Fuel"; $50 million included in Revenues - "Competitive energy services"; $21 million included in "Other operating expenses".
|
|||||||||||||||||||
(g)
|
For YTD 2011, $29 million included in "Other operating expenses"; $22 million included in "Revenues"; ($9) million included in "Amortization of regulatory assets; ($5) million included in "Purchased power". For YTD 2010, included in "Other operating expenses.
|
|||||||||||||||||||
(h)
|
Included in "Interest expense".
|
|||||||||||||||||||
(i)
|
Included in "Impairment of long-lived assets".
|
|||||||||||||||||||
Earnings Per Share (EPS)
|
||||||||||||||||||||||||
(Reconciliation of GAAP to Non-GAAP)
|
||||||||||||||||||||||||
Three Months Ended Sep. 30
|
Nine Months Ended Sep. 30
|
Estimate for Year
|
||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2012 |
2013
|
||||||||||||||||||
Basic EPS (GAAP basis)
|
$ | 1.22 | $ | 0.59 | $ | 1.89 | $ | 1.97 | $ | 3.38 - $3.58 | $ | 3.03 - $3.33 | $ | 3.07 - $3.37 | ||||||||||
Excluding Special Items:
|
||||||||||||||||||||||||
Regulatory charges
|
- | 0.02 | 0.05 | 0.11 | 0.05 | 0.01 | 0.02 | |||||||||||||||||
Trust securities impairment
|
0.01 | - | 0.03 | 0.04 | 0.03 | - | - | |||||||||||||||||
Income tax charge - retiree drug change
|
- | - | - | 0.04 | - | - | - | |||||||||||||||||
Merger transaction/integration costs
|
0.01 | 0.04 | 0.36 | 0.09 | 0.37 | 0.01 | 0.01 | |||||||||||||||||
Non-core asset sales/impairments
|
0.02 | - | 0.08 | 0.02 | (0.85 | ) | - | - | ||||||||||||||||
Mark-to-market adjustments
|
0.01 | 0.03 | 0.06 | 0.06 | 0.06 | - | - | |||||||||||||||||
Merger accounting - commodity contracts
|
0.06 | - | 0.18 | - | 0.20 | 0.15 | 0.10 | |||||||||||||||||
Litigation resolution
|
0.01 | - | 0.06 | (0.01 | ) | 0.06 | - | - | ||||||||||||||||
Lake plant charges
|
- | 0.60 | - | 0.60 | - | - | - | |||||||||||||||||
Basic EPS (Non-GAAP basis)
|
$ | 1.34 | $ | 1.28 | $ | 2.71 | $ | 2.92 | $ | 3.30 - $3.50 | $ | 3.20 - $3.50 | $ | 3.20 - $3.50 | ||||||||||
Liquidity position as of October 28, 2011 | |||||||
Company
|
Type
|
Maturity
|
Amount (M)
|
Available (M)
|
|||
FirstEnergy(1)
|
Revolving
|
June 2016
|
$2,000
|
$1,951
|
|||
FES/AE Supply
|
Revolving
|
June 2016
|
$2,500
|
$2,485
|
|||
TrAIL
|
Revolving
|
Jan. 2013
|
$450
|
$450
|
|||
AGC
|
Revolving
|
Dec. 2013
|
$50
|
$0
|
|||
(1) FirstEnergy Corp. and subsidiary borrowers
|
Subtotal:
|
$5,000
|
$4,886
|
||||
Cash:
|
-
|
834
|
|||||
Total:
|
$5,000
|
$5,720
|
|||||
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
18
|
Allegheny Energy Supply (AE Supply) | $ 37.5M | (a) | ||
FirstEnergy Generation Corp. (FGCO) | 158.1 | (b) | ||
FirstEnergy Nuclear Generation Corp. (NGC) | 158.9 | (b) | ||
Monongahela Power Company (MP) | 70.2 | (a) | ||
(a) Includes $14.4 million in PCRBs redeemed for which MP and AE Supply are co-obligors. | ||||
(b) Subject to market conditions, these bonds are being held for future remarketing.
|
●
|
Proceeds of nearly $260 million will be used to reduce FE’s net debt position
|
●
|
De-consolidation of Signal Peak will result in debt reduction of $360 million and an increase to equity of $50 million on FE's consolidated balance sheet.
|
●
|
Gain on sale and revaluation of remaining ownership stake will increase equity by approximately $370 million
|
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
19
|
●
|
CSAPR SO2 Allowances for 2012
|
●
|
CSAPR SO2 Allowances for 2013
|
●
|
CSAPR Annual NOX Allowances for 2012
|
●
|
CSAPR Annual NOX Allowances for 2013
|
●
|
CSAPR Seasonal NOX Allowances for 2012
|
●
|
CSAPR Seasonal NOX Allowances for 2013
|
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
20
|
Consolidated Report to the Financial Community - 3rd Quarter 2011 |
21
|