Organization, Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies [Abstract]

ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

FirstEnergy is a diversified energy company that holds, directly or indirectly, all of the outstanding common stock of its principal subsidiaries: OE, CEI, TE, Penn (a wholly owned subsidiary of OE), ATSI, JCP&L, Met-Ed, Penelec, FENOC, AE and its principal subsidiaries (AE Supply, AGC, MP, PE, WP, TrAIL and AESC), FES and its principal subsidiaries (FGCO and NGC), and FESC. AE merged with a subsidiary of FE on February 25, 2011, with AE continuing as the surviving corporation and becoming a wholly owned subsidiary of FE (See Note 2, Merger).

FirstEnergy follows GAAP and complies with the related regulations, orders, policies and practices prescribed by the SEC, FERC, and, as applicable, the PUCO, the PPUC, the MDPSC, the NYPSC, the WVPSC, the VSCC and the NJBPU. The preparation of financial statements in conformity with GAAP requires management to make periodic estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not indicative of results of operations for any future period. FE and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

FE and its subsidiaries consolidate all majority-owned subsidiaries over which they exercise control and, when applicable, entities for which they have a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation. FE and its subsidiaries consolidate a VIE when it is determined that it is the primary beneficiary (see Note 8, Variable Interest Entities). Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but with respect to which they are not the primary beneficiary and do not exercise control, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and the percentage share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income. These Notes to the Consolidated Financial Statements are combined for FirstEnergy, FES, OE, CEI, TE JCP&L, Met-Ed and Penelec.

Certain prior year amounts have been reclassified to conform to the current year presentation, and the effects of the change in accounting for pensions and OPEB costs described further below have been retrospectively applied to all periods presented. Unless otherwise indicated, defined terms used herein have the meanings set forth in the accompanying Glossary of Terms.

ACCOUNTING FOR THE EFFECTS OF REGULATION

FirstEnergy accounts for the effects of regulation through the application of regulatory accounting to its operating utilities since their rates are established by a third-party regulator with the authority to set rates that bind customers, are cost-based and can be charged to and collected from customers.

FirstEnergy records regulatory assets and liabilities that result from the regulated rate-making process that would not be recorded under GAAP for non-regulated entities. These assets and liabilities are amortized in the Consolidated Statements of Income concurrent with the recovery or refund through customer rates. FirstEnergy believes that it is probable that its regulatory assets and liabilities will be recovered and settled, respectively, through future rates. FirstEnergy and the Utilities net their regulatory assets and liabilities based on federal and state jurisdictions.

Net regulatory assets on FirstEnergy's and the Utility Registrants' Consolidated Balance Sheets are comprised of the following:

Regulatory Assets (Liabilities)	FirstEnergy			OE			CEI			TE			JCP&L			Met-Ed			Penelec
	(In millions)
December 31, 2011
Regulatory transition costs	$	608		$	—		$	—		$	—		$	424		$	105		$	79
Customer receivables for future income taxes	508			42			1			2			29			129			145
Nuclear decommissioning, decontamination and spent fuel disposal costs	(210		)	—			—			—			(44		)	(99		)	(67		)
Asset removal costs	(240		)	(34		)	(60		)	(23		)	(147		)	—			—
PJM transmission costs	340			(3		)	(3		)	(1		)	—			181			63
Deferred generation costs	382			125			224			37			—			(23		)	(11		)
Distribution costs	267			146			73			48			—			—			—
Other	375			87			60			7			146			36			—
Net regulatory assets	$	2,030		$	363		$	295		$	70		$	408		$	329		$	209
December 31, 2010
Regulatory transition costs	$	770		$	—		$	—		$	—		$	591		$	131		$	43
Customer receivables for future income taxes	328			52			2			1			30			113			130
Nuclear decommissioning, decontamination and spent fuel disposal costs	(184		)	—			—			—			(31		)	(92		)	(61		)
Asset removal costs	(237		)	(24		)	(47		)	(19		)	(147		)	—			—
PJM transmission costs	183			—			—			—			—			131			52
Deferred generation costs	386			125			226			35			—			—			—
Distribution costs	426			216			155			55			—			—			—
Other	158			34			34			1			71			13			(1		)
Net regulatory assets	$	1,830		$	403		$	370		$	73		$	514		$	296		$	163

Additionally, FirstEnergy had $381 million of net regulatory liabilities as of December 31, 2011, including $366 million of net regulatory liabilities attributable to Allegheny that are primarily related to asset removal costs. Net regulatory liabilities are classified within Other Noncurrent Liabilities on the Consolidated Balance Sheets.

Regulatory assets that do not earn a current return as of December 31, 2011 totaled approximately $413 million. Regulatory assets that do not earn a return are primarily comprised of certain regulatory transition and PJM transmission costs for Met-Ed and Penelec of $182 million and $115 million, respectively, that are expected to be recovered by 2020, and certain storm damage costs and pension and OPEB costs incurred by JCP&L of $122 million that are expected to be recovered by 2026.

Transition Cost Amortization

JCP&L’s and Met-Ed’s regulatory transition costs include the deferral of above-market costs for power supplied from NUGs of $142 million for JCP&L (recovered through NGC revenues) and $105 million for Met-Ed (recovered through CTC revenues). Projected above-market NUG costs are adjusted to fair value at the end of each quarter, with a corresponding offset to regulatory assets. Recovery of the remaining regulatory transition costs is expected to continue pursuant to various regulatory proceedings in New Jersey and Pennsylvania (see Note 15, Regulatory Matters).

REVENUES AND RECEIVABLES

The Utilities' principal business is providing electric service to customers in Ohio, Pennsylvania, West Virginia, New Jersey and Maryland. The Utilities’ retail customers are metered on a cycle basis. FES' and AE Supply's principal business is supplying electric power to end-use customers through retail and wholesale arrangements, including affiliated company power sales to meet a portion of the POLR and default service requirements of the Ohio and Pennsylvania Companies and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland.

Electric revenues are recorded based on energy delivered through the end of the calendar month. An estimate of unbilled revenues is calculated to recognize electric service provided from the last meter reading through the end of the month. This estimate includes many factors, among which are historical customer usage, load profiles, estimated weather impacts, customer shopping activity and prices in effect for each class of customer. In each accounting period, the Utilities, FES and AE Supply accrue the estimated unbilled amount receivable as revenue and reverse the related prior period estimate.

Receivables from customers include distribution and retail electric sales to residential, commercial and industrial customers for the Utilities, and retail and wholesale sales to customers for FES and AE Supply. There were no material concentration of receivables as of December 31, 2011 and 2010 with respect to any particular segment of FirstEnergy’s customers. Billed and unbilled customer receivables as of December 31, 2011 and 2010 are shown below.

Customer Receivables	FirstEnergy		FES		OE		CEI		TE(1)		JCP&L		Met-Ed		Penelec
	(In millions)
December 31, 2011
Billed	$	800	$	220	$	67	$	40	$	24	$	117	$	79	$	72
Unbilled	725		204		96		52		25		118		60		54
Total	$	1,525	$	424	$	163	$	92	$	49	$	235	$	139	$	126
December 31, 2010
Billed	$	752	$	196	$	81	$	95	$	—	$	178	$	101	$	82
Unbilled	640		170		96		89		—		145		78		67
Total	$	1,392	$	366	$	177	$	184	$	—	$	323	$	179	$	149

⁽¹⁾  During 2011, TE's accounts receivable financing arrangement with Centerior Funding Corporation was terminated.

EARNINGS PER SHARE OF COMMON STOCK

Basic earnings per share of common stock are computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted earnings per share of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised. The following table reconciles basic and diluted earnings per share of common stock:

Reconciliation of Basic and Diluted Earnings per Share of Common Stock	2011		2010		2009
	(In millions, except per share amounts)
Weighted average number of basic shares outstanding(1)	399		304		304
Assumed exercise of dilutive stock options and awards(2)	2		1		2
Weighted average number of diluted shares outstanding(1)	401		305		306
Earnings available to FirstEnergy Corp.	$	885	$	742	$	872
Basic earnings per share of common stock	$	2.22	$	2.44	$	2.87
Diluted earnings per share of common stock	$	2.21	$	2.42	$	2.85

⁽¹⁾  Includes 113 million shares issued to AE shareholders for the periods subsequent to the merger date (see Note 2, Merger).

⁽²⁾  The number of potentially dilutive securities not included in the calculation of diluted shares outstanding due to their antidilutive effect were not significant for the years ending December 31, 2011, 2010 or 2009.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment reflects original cost (net of any impairments recognized), including payroll and related costs such as taxes, employee benefits, administrative and general costs, and interest costs incurred to place the assets in service. The costs of normal maintenance, repairs and minor replacements are expensed as incurred. FirstEnergy recognizes liabilities for planned major maintenance projects as they are incurred. Property, plant and equipment balances as of December 31, 2011 and 2010 were as follows:

	December 31, 2011									December 31, 2010
Property, Plant and Equipment	Unregulated			Regulated			Total			Unregulated			Regulated			Total
	(In millions)
In service	$	15,472		$	24,650		$	40,122		$	12,104		$	18,172		$	30,276
Less - Accumulated depreciation	(4,424		)	(7,415		)	(11,839		)	(4,255		)	(7,028		)	(11,283		)
Net plant in service	$	11,048		$	17,235		$	28,283		$	7,849		$	11,144		$	18,993

FirstEnergy provides for depreciation on a straight-line basis at various rates over the estimated lives of property included in plant in service. The respective annual composite rates for FirstEnergy’s subsidiaries’ electric plant in 2011, 2010 and 2009 are shown in the following table:

	Annual Composite Depreciation Rate
	2011		2010			2009
FGCO	3.1	%	4.0	%		4.6	%
NGC	3.2	%	3.1	%		3.0	%
OE	2.9	%	2.9	%		3.1	%
CEI	3.2	%	3.2	%		3.3	%
TE	3.2	%	3.3	%		3.3	%
JCP&L	2.8	%	2.4	%		2.4	%
Met-Ed	2.5	%	2.5	%		2.5	%
Penelec	2.3	%	2.5	%		2.6	%
ATSI	2.4	%	2.4	%	—	2.4	%
Penn	2.2	%	2.2	%		2.4	%
AE Supply	3.4	%
MP	2.5	%
PE	2.8	%
WP	2.5	%
TrAIL	2.7	%

Jointly Owned Plants

FirstEnergy, through its subsidiary, AGC, owns an undivided 40% interest (1,109 MWs) in a 2,773 MW pumped storage, hydroelectric station in Bath County, Virginia, operated by the 60% owner, Virginia Electric and Power Company, a non-affiliated utility. Net Property, Plant and Equipment includes $468 million relating to this facility as of December 31, 2011.

Asset Retirement Obligations

FirstEnergy recognizes an ARO for the future decommissioning of its nuclear power plants and future remediation of other environmental liabilities associated with all of its long-lived assets. The ARO liability represents an estimate of the fair value of FirstEnergy’s current obligation related to nuclear decommissioning and the retirement or remediation of environmental liabilities of other assets. A fair value measurement inherently involves uncertainty in the amount and timing of settlement of the liability. FirstEnergy uses an expected cash flow approach to measure the fair value of the nuclear decommissioning and environmental remediation ARO. This approach applies probability weighting to discounted future cash flow scenarios that reflect a range of possible outcomes. The scenarios consider settlement of the ARO at the expiration of the nuclear power plant’s current license, settlement based on an extended license term and expected remediation dates. The fair value of an ARO is recognized in the period in which it is incurred. The associated asset retirement costs are capitalized as part of the carrying value of the long-lived asset and are depreciated over the life of the related asset.

ASSET IMPAIRMENTS

Long-lived Assets

FirstEnergy reviews long-lived assets, including regulatory assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such an asset may not be recoverable. The recoverability of the long-lived asset is measured by comparing the long-lived asset’s carrying value to the sum of undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is greater than the undiscounted future cash flows of the long-lived asset, impairment exists and a loss is recognized for the amount by which the carrying value of the long-lived asset exceeds its estimated fair value. Impairments of long-lived assets recognized for the year endedDecember 31, 2011, are described further in Note 11, Impairment of Long-Lived Assets.

Goodwill

In a business combination, the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is evaluated for impairment at least annually and more frequently if indicators of impairment arise. In accordance with the accounting standards, if the fair value of a reporting unit is less than its carrying value (including goodwill), the goodwill is tested for impairment. Impairment is indicated and a loss is recognized if the implied fair value of a reporting unit's goodwill is less than the carrying value of its goodwill.

With the completion of the AE merger in the first quarter of 2011, FirstEnergy reorganized its management structure, which resulted in changes to its operating segments (see Note 19, Segment Information). FirstEnergy's goodwill from the merger of $866 million was assigned to the Competitive Energy Services segment based on expected synergies from the merger. FirstEnergy's reporting units are consistent with its operating segments, and consist of Regulated Distribution, Regulated Independent Transmission and Competitive Energy Services. Goodwill is allocated to these operating segments based on the original purchase price allocation for acquisitions within the various reporting units. As of December 31, 2011, goodwill balances for Regulated Distribution and Competitive Energy Services were $5,551 million and $890 million, respectively. No goodwill has been allocated to the Regulated Independent Transmission segment.

Annual impairment testing is conducted during the third quarter of each year and for 2011 and 2010 the analysis indicated no impairment of goodwill. For purposes of annual testing the estimated fair values of Regulated Distribution and Competitive Energy Services were determined using a discounted cash flow approach.

The discounted cash flow model of the Regulated Distribution and Competitive Energy Services segments reporting units is based on the forecasted operating cash flow for the current year, projected operating cash flows (determined using forecasted amounts as well as an estimated growth rate) and a terminal value. Discounted cash flows consist of the operating cash flows for each reporting unit less an estimate for capital expenditures. The key assumptions incorporated in the discounted cash flow approach include growth rates, projected operating income, changes in working capital, projected capital expenditures, planned funding of pension plans, anticipated funding of nuclear decommissioning trusts, expected results of future rate proceedings (applicable to Regulated Distribution segment only) and a discount rate equal to assumed long-term cost of capital. Cash flows may be adjusted to exclude certain non-recurring or unusual items. Reporting unit income was the starting point for determining operating cash flow and there were no non-recurring or unusual items excluded from the calculations of operating cash flow in any of the periods included in the determination of fair value.

This approach involves management judgment and estimates that are used in relation to changing market conditions and business environment; unanticipated changes in assumptions could have a significant effect on FirstEnergy's evaluation of goodwill. At the time FirstEnergy conducted the annual impairment testing in 2011, fair value would have to have declined in excess of 44% and 53% for the Regulated Distribution and Competitive Energy Services segments, respectively, to indicate a potential goodwill impairment. Fair value would have to have declined by more than 20% for CEI, 16% for TE, 38% for JCP&L, 62% for Met-Ed, 58% for Penelec and 62% for FES to indicate a potential goodwill impairment.

Total goodwill recognized by segment in FirstEnergy's Consolidated Balance Sheet is as follows:

Goodwill	Regulated Distribution		Competitive Energy Services		Regulated Independent Transmission		Other/Corporate		Consolidated
Balance as of December 31, 2010	$	5,551	$	24	$	—	$	—	$	5,575
Merger with Allegheny	—		866		—		—		866
Balance as of December 31, 2011	$	5,551	$	890	$	—	$	—	$	6,441

Total goodwill recognized by FES and the Utility Registrants are as follows:

Goodwill	FES		CEI		TE		JCP&L		Met-Ed		Penelec
Balance as of December 31, 2011 and 2010	$	24	$	1,689	$	501	$	1,811	$	416	$	769

FirstEnergy, FES and the Utility Registrants, with the exception of Met-Ed, have no accumulated impairment charge as of December 31, 2011. Met-Ed has an accumulated impairment charge of $355 million, which was recorded in 2006.

Investments

At the end of each reporting period, FirstEnergy evaluates its investments for impairment. Investments classified as available-for-sale securities are evaluated to determine whether a decline in fair value below the cost basis is other than temporary. FirstEnergy first considers its intent and ability to hold the investment until recovery and then considers, among other factors, the duration and the extent to which the security’s fair value has been less than its cost and the near-term financial prospects of the security issuer when evaluating investments for impairment. If the decline in fair value is determined to be other than temporary, the cost basis of the investment is written down to fair value. FirstEnergy recognizes in earnings the unrealized losses on available-for-sale securities held in its nuclear decommissioning trusts since the trust arrangements, as they are currently defined, do not meet the required ability and intent to hold criteria in consideration of other-than-temporary impairment. In 2011, 2010 and 2009, FirstEnergy recognized $19 million, $33 million and $62 million, respectively, of other-than-temporary impairments. The fair values of FirstEnergy’s investments are disclosed in Note 9, Fair Value Measurements.

ACCUMULATED OTHER COMPREHENSIVE INCOME

AOCI, net of tax, included on FirstEnergy’s, FES’ and the Utility Registrants’ Consolidated Balance Sheets as of December 31, 2011 and 2010, is comprised of the following:

Accumulated Other Comprehensive Income	FirstEnergy			FES		OE		CEI		TE		JCP&L			Met-Ed			Penelec
	(In millions)
Net liability for unfunded retirement benefits	$	446		$	52	$	54	$	27	$	12	$	40		$	28		$	37
Unrealized gain on investments	19			16		—		—		3		—			—			—
Unrealized gain (loss) on derivative hedges	(39		)	8		—		—		—		(1		)	—			—
Balance, December 31, 2011	$	426		$	76	$	54	$	27	$	15	$	39		$	28		$	37
Net liability for unfunded retirement benefits	$	472		$	55	$	82	$	34	$	15	$	52		$	38		$	50
Unrealized gain on investments	7			6		—		—		—		—			—			—
Unrealized gain (loss) on derivative hedges	(54		)	1		—		—		—		(1		)	(1		)	—
Balance, December 31, 2010	$	425		$	62	$	82	$	34	$	15	$	51		$	37		$	50

OCI reclassified to net income during the three years ended December 31, 2011, 2010 and 2009 is shown in the following table.

	FirstEnergy			FES			OE		CEI		TE		JCP&L		Met-Ed		Penelec
	(In millions)
2011
Pensions and OPEB	$	169		$	18		$	28	$	12	$	5	$	25	$	17	$	23
Gain on investments	157			51			6		—		2		27		49		23
Loss on derivative hedges	(26		)	(26		)	—		—		—		—		—		—
	300			43			34		12		7		52		66		46
Income taxes related to reclassification to net income	118			16			12		4		3		21		27		19
Reclassification to net income	$	182		$	27		$	22	$	8	$	4	$	31	$	39	$	27
2010
Pensions and OPEB	$	87		$	46		$	23	$	2	$	3	$	5	$	8	$	15
Gain on investments	54			50			2		—		2		—		—		—
Loss on derivative hedges	(35		)	(24		)	—		—		—		—		—		—
	106			72			25		2		5		5		8		15
Income taxes related to reclassification to net income	40			26			9		—		2		3		3		6
Reclassification to net income	$	66		$	46		$	16	$	2	$	3	$	2	$	5	$	9
2009
Pensions and OPEB	$	68		$	37		$	17	$	2	$	4	$	8	$	7	$	12
Gain on investments	157			139			10		—		7		—		—		—
Loss on derivative hedges	(67		)	(27		)	—		—		—		—		—		—
	158			149			27		2		11		8		7		12
Income taxes related to reclassification to net income	60			56			10		1		4		3		3		5
Reclassification to net income	$	98		$	93		$	17	$	1	$	7	$	5	$	4	$	7

NEW ACCOUNTING PRONOUNCEMENTS

During the year, there have been various new accounting pronouncements that are not expected to have a material effect on FirstEnergy's financial statements.

CHANGE IN PENSIONS AND OPEB ACCOUNTING POLICY

Effective in 2011, FirstEnergy elected to change its method of recognizing actuarial gains and losses for its defined benefit pension and OPEB plans. Previously, FirstEnergy recognized the net actuarial gains and losses as a component of AOCI and amortized the gains and losses into income over the remaining service life of affected employees within the related plans to the extent such gains and losses were outside a corridor of the greater of 10% of the market-related value of plan assets or 10% of the plans' projected benefit obligation.

FirstEnergy has elected to immediately recognize the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pensions and OPEB expense, primarily service costs, interest on obligations, assumed return on assets and prior service costs, will be recorded on a quarterly basis.

While FirstEnergy's historical policy of recognizing pensions and OPEB expense was considered acceptable under GAAP, FirstEnergy believes that the new policy is preferable as it eliminates the delay in recognizing gains and losses to earnings. The change will also improve transparency to FirstEnergy's operational results and benefits plan performance by immediately recognizing deviations from expected actuarial assumptions in the year they are incurred.

This change in accounting policy has been applied retrospectively, adjusting all prior periods presented. Applying this change retrospectively increased property, plant and equipment as a result of capitalizing a portion of the pension and OPEB costs now recognized for each year in addition to additional depreciation expense. As a result of increasing those asset balances, FirstEnergy recognized additional affiliated company asset transfers associated with ATSI and the Generation Asset Transfer, and further impairments of certain long-lived assets in those periods. Additionally, the allocation of related pension and OPEB costs from FESC and AESC to FES and the Utility Registrants resulted in affiliated noncurrent liabilities as of December 31, 2011 of $331 million-FES, $80 million-OE, $56 million-CEI, $32 million-TE, $76 million-JCP&L, $40 million-Met-ED and $40 million-Penelec. The impact of this accounting policy change on the financial statements is summarized below:

FirstEnergy
CONSOLIDATED STATEMENTS OF INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions, except per share amounts)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	2,850		$	(154	)	$	2,696		$	2,697		$	(146	)	$	2,551
Pensions and OPEB mark-to-market adjustment	—			190			190			—			321			321
Provision for depreciation	746			22			768			736			21			757
Impairment of long-lived assets	384			4			388			6			—			6
Capitalized interest	165			—			165			130			1			131
Income before income taxes	1,242			(62		)	1,180			1,235			(195		)	1,040
Income taxes	482			(20		)	462			245			(61		)	184
Net Income	760			(42		)	718			990			(134		)	856
Earnings available to FirstEnergy Corp.	784			(42		)	742			1,006			(134		)	872
Basic earnings per share of common stock	$	2.58		$	(0.14	)	$	2.44		$	3.31		$	(0.44	)	$	2.87
Diluted earnings per share of common stock	$	2.57		$	(0.15	)	$	2.42		$	3.29		$	(0.44	)	$	2.85
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Net Income	$	760		$	(42	)	$	718		$	990		$	(134	)	$	856
Pension and other postretirement benefits	(258		)	38			(220		)	15			260			275
Income taxes (benefits) on other comprehensive income	(90		)	16			(74		)	27			101			128
Comprehensive income	636			(20		)	616			955			25			980
Comprehensive income attributable to FirstEnergy Corp.	660			(20		)	640			971			25			996
CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In millions)	As			Effect of			As
	Reported			Change			Revised
Property, plant & equipment - In service	$	29,451		$	825		$	30,276
Accumulated provision for depreciation	11,180			103			11,283
Total property, plant, and equipment	18,271			722			18,993
Regulatory assets	1,826			4			1,830
Total assets	34,805			726			35,531
Accumulated other comprehensive income (loss)	(1,539		)	1,964			425
Retained earnings	4,609			(1,525		)	3,084
Total common stockholders' equity	8,545			439			8,984
Total equity	8,513			439			8,952
Total capitalization	21,092			439			21,531
Accrued taxes	326			6			332
Accumulated deferred income taxes	2,879			281			3,160
Total liabilities and capitalization	34,805			726			35,531
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	4,495		$	(1,483	)	$	3,012		$	4,159		$	(1,349	)	$	2,810
Earnings available to Parent	784			(42		)	742			1,006			(134		)	872
Ending Balance	4,609			(1,525		)	3,084			4,495			(1,483		)	3,012
Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(1,415	)	$	1,942		$	527		$	(1,380	)	$	1,783		$	403
Pension and other postretirement benefits, net of taxes	(151		)	22			(129		)	(19		)	159			140
Ending Balance	(1,539		)	1,964			425			(1,415		)	1,942			527
CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	760		$	(42	)	$	718		$	990		$	(134	)	$	856
Provision for depreciation	746			22			768			736			21			757
Deferred income taxes and investment tax credits, net	470			(20		)	450			384			(61		)	323
Pensions and OPEB mark-to-market adjustment	—			190			190			—			321			321
Accrued compensation and retirement benefits	89			(154		)	(65		)	22			(146		)	(124		)
Impairments of long-lived assets	384			4			388			6			—			6
Other operating activities	45			—			45			30			(1		)	29

FES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	1,280		$	(50	)	$	1,230		$	1,183		$	(40	)	$	1,143
Pensions and OPEB mark-to-market adjustment	—			107			107			—			150			150
Provision for depreciation	243			3			246			259			3			262
Impairment of long-lived assets	384			4			388			6			—			6
Income before income taxes	420			(64		)	356			892			(113		)	779
Income taxes	151			(26		)	125			315			(34		)	281
Net Income	269			(38		)	231			577			(79		)	498
Pension and other postretirement benefits	(58		)	28			(30		)	14			54			68
Income taxes (benefits) on other comprehensive income	(11		)	14			3			(6		)	20			14
Comprehensive income	252			(24		)	228			566			(45		)	521
CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In millions)	As			Effect of			As
	Reported			Change			Revised
Property, plant & equipment - In service	$	11,321		$	106		$	11,427
Accumulated provision for depreciation	4,024			14			4,038
Total property, plant, and equipment	7,297			92			7,389
Total assets	12,063			92			12,155
Common stock	1,490			77			1,567
Accumulated other comprehensive income (loss)	(120		)	182			62
Retained earnings	2,418			(428		)	1,990
Total equity	3,788			(169		)	3,619
Total capitalization	6,969			(169		)	6,800
Accumulated deferred income taxes	58			9			67
Other noncurrent liabilities	244			252			496
Total liabilities and capitalization	12,063			92			12,155
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	2,149			(390		)	1,759			1,572			(311		)	1,261
Net income	269			(38		)	231			577			(79		)	498
Ending Balance	2,418			(428		)	1,990			2,149			(390		)	1,759
Accumulated Comprehensive Income (Loss)-
Beginning Balance	(103		)	168			65			(92		)	134			42
Pension and other postretirement benefits, net of taxes	(36		)	14			(22		)	6			34			40
Ending Balance	(120		)	182			62			(103		)	168			65
Common Stock-
Beginning Balance	1,468			77			1,545			1,464			77			1,541
Ending Balance	1,490			77			1,567			1,468			77			1,545
CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	269		$	(38	)	$	231		$	577		$	(79	)	$	498
Provision for depreciation	243			3			246			259			3			262
Deferred income taxes and investment tax credits, net	176			(26		)	150			220			(34		)	186
Pensions and OPEB mark-to-market adjustment	—			107			107			—			150			150
Accrued compensation and retirement benefits	25			(50		)	(25		)	6			(40		)	(34		)
Impairments of long-lived assets	384			4			388			6			—			6

OE
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	364		$	(22	)	$	342		$	461		$	(22	)	$	439
Pensions and OPEB mark-to-market adjustment	—			24			24			—			26			26
Provision for depreciation	88			3			91			89			3			92
Income before income taxes	238			(5		)	233			188			(7		)	181
Income taxes	81			(3		)	78			66			(4		)	62
Net Income	157			(2		)	155			122			(3		)	119
Pension and other postretirement benefits	(27		)	(4		)	(31		)	46			7			53
Income taxes (benefits) on other comprehensive income	(11		)	2			(9		)	16			3			19
Comprehensive income	141			(8		)	133			143			1			144
CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In millions)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	3,137		$	85		$	3,222
Accumulated provision for depreciation	1,208			10			1,218
Total property, plant, and equipment	1,929			75			2,004
Regulatory assets	400			3			403
Total assets	3,686			78			3,764
Common Stock	952			(39		)	913
Accumulated other comprehensive income (loss)	(179		)	261			82
Retained earnings	142			(254		)	(112		)
Total common stockholder's equity	915			(32		)	883
Total equity	921			(32		)	889
Total capitalization	2,073			(32		)	2,041
Accrued taxes	79			1			80
Accumulated deferred income taxes	696			41			737
Other noncurrent liabilities	197			68			265
Total liabilities and capitalization	3,686			78			3,764
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	30		$	(252	)	$	(222	)	$	254		$	(249	)	$	5
Earnings available to Parent	157			(2		)	155			122			(3		)	119
Ending Balance	142			(254		)	(112		)	30			(252		)	(222		)
Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(163	)	$	267		$	104		$	(184	)	$	263		$	79
Pension and other postretirement benefits, net of taxes	(16		)	(6		)	(22		)	26			4			30
Ending Balance	(179		)	261			82			(163		)	267			104
Common Stock-
Beginning Balance	$	1,155		$	(39	)	$	1,116		$	1,224		$	(39	)	$	1,185
Ending Balance	952			(39		)	913			1,155			(39		)	1,116
CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	157		$	(2	)	$	155		$	122		$	(3	)	$	119
Provision for depreciation	88			3			91			89			3			92
Deferred income taxes and investment tax credits, net	46			(3		)	43			41			(4		)	37
Pensions and OPEB mark-to-market adjustment	—			24			24			—			26			26
Accrued compensation and retirement benefits	(23		)	(22		)	(45		)	(14		)	(22		)	(36		)

CEI
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	130,018		$	(14,952	)	$	115,066		$	161,407		$	(12,840	)	$	148,567
Pensions and OPEB mark-to-market adjustment	—			11,945			11,945			—			38,329			38,329
Provision for depreciation	72,753			2,154			74,907			71,908			1,975			73,883
Capitalized interest	82			(19		)	63			173			88			261
Income before income taxes	111,848			834			112,682			(21,175		)	(27,376		)	(48,551		)
Income taxes	38,673			(3,546		)	35,127			(10,183		)	(9,611		)	(19,794		)
Net Income	73,175			4,380			77,555			(10,992		)	(17,765		)	(28,757		)
Earnings available to Parent	71,658			4,380			76,038			(12,706		)	(17,765		)	(30,471		)
Pension and other postretirement benefits	(26,955		)	(13,487		)	(40,442		)	(1,378		)	47,566			46,188
Income taxes (benefits) on other comprehensive income	(11,926		)	(2,806		)	(14,732		)	1,923			17,374			19,297
Comprehensive income	58,146			(6,301		)	51,845			(14,293		)	12,427			(1,866		)
Comprehensive income available to Parent	56,629			(6,301		)	50,328			(16,007		)	12,427			(3,580		)
CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In thousands)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	2,396,893		$	63,224		$	2,460,117
Accumulated provision for depreciation	932,246			12,371			944,617
Total property, plant, and equipment	1,464,647			50,853			1,515,500
Regulatory assets	370,403			(574		)	369,829
Total assets	4,303,849			50,279			4,354,128
Common Stock	887,087			(23,715		)	863,372
Accumulated other comprehensive income (loss)	(153,187		)	187,298			34,111
Retained earnings	568,906			(187,230		)	381,676
Total common stockholder's equity	1,302,806			(23,647		)	1,279,159
Total equity	1,320,823			(23,647		)	1,297,176
Total capitalization	3,173,353			(23,647		)	3,149,706
Accrued taxes	84,668			678			85,346
Accumulated deferred income taxes	622,771			24,521			647,292
Other noncurrent liabilities	100,161			48,727			148,888
Total liabilities and capitalization	4,303,849			50,279			4,354,128
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	597,248		$	(191,610	)	$	405,638		$	859,954		$	(173,845	)	$	686,109
Earnings available to Parent	71,658			4,380			76,038			(12,706		)	(17,765		)	(30,471		)
Ending Balance	568,906			(187,230		)	381,676			597,248			(191,610		)	405,638
Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(138,158	)	$	197,979		$	59,821		$	(134,857	)	$	167,787		$	32,930
Pension and other postretirement benefits, net of taxes	(15,029		)	(10,681		)	(25,710		)	(3,301		)	30,192			26,891
Ending Balance	(153,187		)	187,298			34,111			(138,158		)	197,979			59,821
Common Stock-
Beginning Balance	$	884,897		$	(23,715	)	$	861,182		$	878,785		$	(23,715	)	$	855,070
Ending Balance	887,087			(23,715		)	863,372			884,897			(23,715		)	861,182
CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	73,175		$	4,380		$	77,555		$	(10,992	)	$	(17,765	)	$	(28,757	)
Provision for depreciation	72,753			2,154			74,907			71,908			1,975			73,883
Deferred income taxes and investment tax credits, net	(20,068		)	(3,546		)	(23,614		)	(51,839		)	(9,611		)	(61,450		)
Pensions and OPEB mark-to-market adjustment	—			11,945			11,945			—			38,329			38,329
Accrued compensation and retirement benefits	12,724			(14,952		)	(2,228		)	8,514			(12,840		)	(4,326		)
Other operating activities	2,090			19			2,109			8,820			(88		)	8,732

TE
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	108,072		$	(6,177	)	$	101,895		$	142,203		$	(6,265	)	$	135,938
Pensions and OPEB mark-to-market adjustment	—			4,183			4,183			—			14,360			14,360
Provision for depreciation	31,613			548			32,161			30,727			454			31,181
Miscellaneous expense	(4,206		)	(81		)	(4,287		)	(2,436		)	267			(2,169		)
Capitalized interest	358			(54		)	304			169			114			283
Income before income taxes	50,693			1,311			52,004			31,917			(8,168		)	23,749
Income taxes	17,645			(1,889		)	15,756			7,939			(2,592		)	5,347
Net Income	33,048			3,200			36,248			23,978			(5,576		)	18,402
Earnings available to Parent	33,044			3,200			36,244			23,957			(5,576		)	18,381
Pension and other postretirement benefits	(655		)	(6,295		)	(6,950		)	(7,880		)	16,958			9,078
Income taxes (benefits) on other comprehensive income	(1,144		)	(277		)	(1,421		)	(6,630		)	6,097			(533		)
Comprehensive income	33,668			(2,818		)	30,850			7,547			5,285			12,832
Comprehensive income available to Parent	33,664			(2,818		)	30,846			7,526			5,285			12,811
CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In thousands)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	947,203		$	15,225		$	962,428
Accumulated provision for depreciation	446,401			4,130			450,531
Total property, plant, and equipment	500,802			11,095			511,897
Regulatory assets	72,059			529			72,588
Total assets	1,614,306			11,624			1,625,930
Other Paid-In Capital	178,182			(15,161		)	163,021
Accumulated other comprehensive income (loss)	(49,183		)	64,269			15,086
Retained earnings	117,534			(75,034		)	42,500
Total common stockholder's equity	393,543			(25,926		)	367,617
Total equity	396,132			(25,926		)	370,206
Total capitalization	996,625			(25,926		)	970,699
Accrued taxes	24,401			222			24,623
Accumulated deferred income taxes	132,019			8,696			140,715
Other noncurrent liabilities	65,090			28,632			93,722
Total liabilities and capitalization	1,614,306			11,624			1,625,930
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	214,490		$	(78,234	)	$	136,256		$	190,533		$	(72,658	)	$	117,875
Earnings available to Parent	33,044			3,200			36,244			23,957			(5,576		)	18,381
Ending Balance	117,534			(75,034		)	42,500			214,490			(78,234		)	136,256
Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(49,803	)	$	70,287		$	20,484		$	(33,372	)	$	59,426		$	26,054
Pension and other postretirement benefits, net of taxes	535			(6,018		)	(5,483		)	(7,006		)	10,861			3,855
Ending Balance	(49,183		)	64,269			15,086			(49,803		)	70,287			20,484
Other Paid-In Capital-
Beginning Balance	$	178,181		$	(15,161	)	$	163,020		$	175,879		$	(15,161	)	$	160,718
Ending Balance	178,182			(15,161		)	163,021			178,181			(15,161		)	163,020
CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	33,048		$	3,200		$	36,248		$	23,978		$	(5,576	)	$	18,402
Provision for depreciation	31,613			548			32,161			30,727			454			31,181
Deferred income taxes and investment tax credits, net	28,041			(1,889		)	26,152			2,003			(2,592		)	(589		)
Pensions and OPEB mark-to-market adjustment	—			4,183			4,183			—			14,360			14,360
Accrued compensation and retirement benefits	5,517			(6,177		)	(660		)	3,489			(6,265		)	(2,776		)
Other operating activities	(7,689		)	135			(7,554		)	7,135			(381		)	6,754

JCP&L
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	344		$	(21	)	$	323		$	310		$	(26	)	$	284
Pensions and OPEB mark-to-market adjustment	—			26			26			—			37			37
Provision for depreciation	108			5			113			103			5			108
Income before income taxes	340			(10		)	330			279			(16		)	263
Income taxes	148			(1		)	147			109			(4		)	105
Net Income	192			(9		)	183			170			(12		)	158
Pension and other postretirement benefits	(19		)	2			(17		)	(40		)	22			(18		)
Income taxes (benefits) on other comprehensive income	(9		)	(1		)	(10		)	(14		)	10			(4		)
Comprehensive income	182			(6		)	176			144			—			144
CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In millions)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	4,563		$	220		$	4,783
Accumulated provision for depreciation	1,657			25			1,682
Total property, plant, and equipment	2,906			195			3,101
Regulatory assets	513			1			514
Total assets	6,317			196			6,513
Accumulated other comprehensive income (loss)	(253		)	304			51
Retained earnings	227			(250		)	(23		)
Total common stockholder's equity	2,619			54			2,673
Total capitalization	4,389			54			4,443
Other	26			2			28
Accumulated deferred income taxes	716			77			793
Other noncurrent liabilities	171			63			234
Total liabilities and capitalization	6,317			196			6,513
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	200		$	(241	)	$	(41	)	$	157		$	(229	)	$	(72	)
Net Income	192			(9		)	183			170			(12		)	158
Ending Balance	227			(250		)	(23		)	200			(241		)	(41		)
Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(243	)	$	301		$	58		$	(217	)	$	289		$	72
Pension and other postretirement benefits, net of taxes	(10		)	3			(7		)	(26		)	12			(14		)
Ending Balance	(253		)	304			51			(243		)	301			58
CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	192		$	(9	)	$	183		$	170		$	(12	)	$	158
Provision for depreciation	108			5			113			103			5			108
Deferred income taxes and investment tax credits, net	32			(1		)	31			43			(4		)	39
Pensions and OPEB mark-to-market adjustment	—			26			26			—			37			37
Accrued compensation and retirement benefits	14			(21		)	(7		)	13			(26		)	(13		)

Met-Ed
CONSOLIDATED STATEMENTS OF INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	418,569		$	(17,553	)	$	401,016		$	277,024		$	(17,889	)	$	259,135
Pensions and OPEB mark-to-market adjustment	—			6,993			6,993			—			16,044			16,044
Provision for depreciation	52,176			3,616			55,792			51,006			3,646			54,652
Miscellaneous income	5,901			—			5,901			4,033			74			4,107
Capitalized interest	653			—			653			159			22			181
Income before income taxes	100,873			6,944			107,817			84,117			(1,705		)	82,412
Income taxes	42,866			4,867			47,733			28,594			281			28,875
Net Income	58,007			2,077			60,084			55,523			(1,986		)	53,537
Pension and other postretirement benefits	289			(13,257		)	(12,968		)	(118		)	685			567
Income taxes (benefits) on other comprehensive income	(544		)	(7,008		)	(7,552		)	2,784			286			3,070
Comprehensive income	59,175			(4,172		)	55,003			52,956			(1,587		)	51,369
CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In thousands)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	2,247,853		$	145,648		$	2,393,501
Accumulated provision for depreciation	846,003			16,514			862,517
Total property, plant, and equipment	1,401,850			129,134			1,530,984
Regulatory assets	295,856			52			295,908
Total assets	3,044,670			129,186			3,173,856
Accumulated other comprehensive income (loss)	(142,383		)	179,807			37,424
Retained earnings	32,406			(138,967		)	(106,561		)
Total common stockholder's equity	1,087,099			40,840			1,127,939
Total capitalization	1,805,959			40,840			1,846,799
Accrued taxes	60,856			482			61,338
Accumulated deferred income taxes	473,009			53,458			526,467
Other noncurrent liabilities	53,689			34,406			88,095
Total liabilities and capitalization	3,044,670			129,186			3,173,856
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	4,399		$	(141,044	)	$	(136,645	)	$	(51,124	)	$	(139,058	)	$	(190,182	)
Net income	58,007			2,077			60,084			55,523			(1,986		)	53,537
Ending Balance	32,406			(138,967		)	(106,561		)	4,399			(141,044		)	(136,645		)
Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(143,551	)	$	186,056		$	42,505		$	(140,984	)	$	185,657		$	44,673
Pension and other postretirement benefits, net of taxes	1,355			(6,249		)	(4,894		)	(2,902		)	399			(2,503		)
Ending Balance	(142,383		)	179,807			37,424			(143,551		)	186,056			42,505
CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	58,007		$	2,077		$	60,084		$	55,523		$	(1,986	)	$	53,537
Provision for depreciation	52,176			3,616			55,792			51,006			3,646			54,652
Deferred income taxes and investment tax credits, net	29,528			4,867			34,395			66,965			281			67,246
Pensions and OPEB mark-to-market adjustment	—			6,993			6,993			—			16,044			16,044
Accrued compensation and retirement benefits	(2,474		)	(17,553		)	(20,027		)	5,876			(17,889		)	(12,013		)
Other operating activities	8,026			—			8,026			5,022			(96		)	4,926

Penelec
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	268,614		$	(21,648	)	$	246,966		$	209,156		$	(16,395	)	$	192,761
Pensions and OPEB mark-to-market adjustment	—			8,279			8,279			—			33,983			33,983
Provision for depreciation	61,141			4,553			65,694			61,317			4,320			65,637
Miscellaneous income	5,928			29			5,957			3,662			—			3,662
Capitalized interest	750			20			770			98			132			230
Income before income taxes	100,665			8,865			109,530			111,082			(21,776		)	89,306
Income taxes	41,173			5,167			46,340			45,694			(7,186		)	38,508
Net Income	59,492			3,698			63,190			65,388			(14,590		)	50,798
Pension and other postretirement benefits	(5,749		)	(14,672		)	(20,421		)	(51,421		)	50,601			(820		)
Income taxes (benefits) on other comprehensive income	(4,262		)	(7,532		)	(11,794		)	(17,252		)	22,083			4,831
Comprehensive income	58,070			(3,442		)	54,628			31,281			13,928			45,209
CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In thousands)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	2,532,629		$	181,912		$	2,714,541
Accumulated provision for depreciation	935,259			20,055			955,314
Total property, plant, and equipment	1,597,370			161,857			1,759,227
Regulatory assets	163,407			21			163,428
Total assets	3,062,669			161,878			3,224,547
Accumulated other comprehensive income (loss)	(163,526		)	213,908			50,382
Retained earnings	60,993			(151,872		)	(90,879		)
Total common stockholder's equity	899,538			62,036			961,574
Total capitalization	1,971,800			62,036			2,033,836
Accrued taxes	5,075			1,456			6,531
Accumulated deferred income taxes	371,877			65,655			437,532
Other noncurrent liabilities	47,889			32,731			80,620
Total liabilities and capitalization	3,062,669			161,878			3,224,547
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	91,501		$	(155,570	)	$	(64,069	)	$	76,113		$	(140,980	)	$	(64,867	)
Net Income	59,492			3,698			63,190			65,388			(14,590		)	50,798
Ending Balance	60,993			(151,872		)	(90,879		)	91,501			(155,570		)	(64,069		)
Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(162,104	)	$	221,048		$	58,944		$	(127,997	)	$	192,530		$	64,533
Pension and other postretirement benefits, net of taxes	(1,382		)	(7,140		)	(8,522		)	(34,177		)	28,518			(5,659		)
Ending Balance	(163,526		)	213,908			50,382			(162,104		)	221,048			58,944
CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	59,492		$	3,698		$	63,190		$	65,388		$	(14,590	)	$	50,798
Provision for depreciation	61,141			4,553			65,694			61,317			4,320			65,637
Deferred income taxes and investment tax credits, net	133,885			5,167			139,052			63,065			(7,186		)	55,879
Pensions and OPEB mark-to-market adjustment	—			8,279			8,279			—			33,983			33,983
Accrued compensation and retirement benefits	8,206			(21,648		)	(13,442		)	3,866			(16,395		)	(12,529		)
Other operating activities	4,909			(49		)	4,860			3,236			(132		)	3,104