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 February 28, 2012
|
|
99.2
|
Consolidated Report to the Financial Community, dated February 28, 2012
|
FIRSTENERGY CORP.
|
||
Registrant
|
||
By:
|
||
Harvey L. Wagner
Vice President, Controller and
Chief Accounting Officer
|
Exhibit 99.1 | ||
FirstEnergy Corp. | For Release: February 28, 2012 | |
76 South Main Street | ||
Akron, Ohio 44308 | ||
www.firstenergycorp.com | ||
News Media Contact: | Investor Contact: | |
Tricia Ingraham | Irene Prezelj | |
(330) 384-5247 | (330) 384-3859 |
Fourth Quarter and Full Year GAAP to Non-GAAP* Reconciliation
|
|||||
Fourth Quarter
|
Full Year
|
||||
2011
|
2010
|
2011
|
2010
|
||
Basic Earnings Per Share (GAAP)
|
$0.23
|
$0.27
|
$2.22
|
$2.44
|
|
Excluding Special Items:
|
|||||
Regulatory Charges
|
--
|
--
|
0.05
|
0.11
|
|
Trust Securities Impairment
|
--
|
0.02
|
0.03
|
0.07
|
|
Income Tax Charge – Retiree Drug Subsidy
|
0.06
|
--
|
0.07
|
0.04
|
|
Merger Transaction/Integration Costs
|
0.01
|
0.07
|
0.41
|
0.15
|
|
Impact of Non-Core Asset Sales/Impairments
|
(0.81)
|
(0.16)
|
(0.78)
|
(0.14)
|
|
Mark-To-Market Adjustments
|
|||||
Pension/OPEB Actuarial Assumptions
|
0.74
|
0.40
|
0.78
|
0.40
|
|
Other
|
(0.03)
|
--
|
0.02
|
0.06
|
|
Merger Accounting – Commodity Contracts
|
0.08
|
--
|
0.26
|
--
|
|
Litigation Resolution
|
--
|
--
|
0.06
|
(0.01)
|
|
Generating Plant Charges
|
0.49
|
0.17
|
0.52
|
0.78
|
|
Basic Earnings Per Share (Non-GAAP*)
|
$0.77
|
$0.77
|
$3.64
|
$3.90
|
Estimated Earnings Per Share, GAAP to Non-GAAP* Reconciliation
|
|||
2012
|
2013
|
||
Basic Earnings Per Share (GAAP)
|
$2.87 - $3.17
|
$2.92 - $3.22
|
|
Excluding Special Items:
|
|||
Regulatory Charges
|
0.04
|
0.05
|
|
Income Tax Charge – Retiree Drug Subsidy
|
0.08
|
--
|
|
Impact of Non-Core Asset Sales/Impairments
|
0.03
|
0.03
|
|
Merger Transaction/Integration Costs
|
0.01
|
--
|
|
Mark-To-Market Adjustments
|
|||
Pension/OPEB Actuarial Assumptions
|
--
|
--
|
|
Other
|
--
|
--
|
|
Merger Accounting – Commodity Contracts
|
0.15
|
0.10
|
|
Plant Closing Costs
|
0.12
|
--
|
|
Basic Earnings Per Share (Non-GAAP*)
|
$3.30 - $3.60
|
$3.10 - $3.40
|
Consolidated Report to the Financial Community | ||||
Fourth Quarter 2011 | ||||
(Released February 28, 2012)
|
||||
HIGHLIGHTS |
After-Tax EPS Variance Analysis
|
4th.Qtr.
|
||
4Q 2010 Basic EPS – GAAP (a)
|
$0.27
|
|||
Special Items – 2010 (a)
|
0.50
|
|||
● | Normalized non-GAAP* earnings, excluding special items, were |
4Q 2010 Normalized Basic EPS – Non-GAAP * (a)
|
$0.77
|
|
$0.77 per basic share for the fourth quarter of 2011, compared with |
Distribution Deliveries
|
(0.03)
|
||
revised fourth quarter 2010 earnings of $0.77 per basic share. |
Commodity Margin
|
(0.10) | ||
GAAP earnings for the fourth quarter of 2011 were $0.23 per basic | O&M Expenses |
0.06
|
||
share, compared with revised fourth quarter 2010 earnings of $0.27 |
Depreciation
|
(0.02)
|
||
per basic share. | Investment Income | (0.02) | ||
Financing Costs |
(0.02)
|
|||
Increased Shares Outstanding
|
(0.22)
|
|||
Normalized non-GAAP earnings for 2011, excluding special items, | Allegheny Companies - Fourth Quarter 2011 | 0.27 | ||
were $3.64 per basic share. Revised normalized non-GAAP earnings |
Purchase Accounting
|
0.04
|
||
for 2010, excluding special items, were $3.90 per basic share. GAAP | Effective Income Tax Rate | 0.03 | ||
earnings for 2011 were $2.22 per basic share, compared with revised | Other | 0.01 | ||
earnings of $2.44 per basic share in 2010. | 4Q 2011 Normalized Basic EPS – Non-GAAP * | $0.77 | ||
Special Items - 2011 | (0.54) | |||
4Q 2011 Basic EPS – GAAP | $0.23 | |||
In December 2011, FirstEnergy Corp. adopted a change in accounting | ||||
methodology for pensions and other post-employment benefits (OPEB). | (a) Revised to reflect a change in method of accounting for pensions | |||
The change was retroactively applied to prior years. The impact of the | and OPEB | |||
revisions in the fourth quarter of 2010 and the full year of 2010 are | ||||
shown below. | ||||
4Q10
|
2010
|
||||||||||||||
Basic EPS
|
As Reported
|
Adjustments
|
Revised
|
As Reported
|
Adjustments
|
Revised
|
|||||||||
GAAP
|
$0.61
|
($0.34)
|
$0.27
|
$2.58
|
($0.14)
|
$2.44
|
|||||||||
Special Items
|
0.10 | 0.40 | 0.50 | 1.04 |
0.42
|
1.46 | |||||||||
Non-GAAP
|
$0.71
|
$0.06
|
$0.77
|
$3.62
|
$0.28
|
$3.90
|
|||||||||
·
|
Distribution Deliveries – Lower distribution delivery revenues decreased earnings by $0.03 per share. Electric distribution deliveries decreased 893,000 MWH, or 3%, primarily due to the impact of mild weather. Heating-degree-days were 21% lower than the same period last year and 17% below normal. Residential deliveries decreased 694,000 MWH or 7%, while commercial deliveries decreased 203,000 MWH, or 3%. Industrial deliveries increased slightly.
|
·
|
Commodity Margin EPS Summary
|
Commodity Margin EPS - 4Q11 vs 4Q10
|
Rate | Volume | Total | ||||||
Contract Generation Sales
|
|||||||||
- Direct Sales
|
($0.05)
|
$0.38
|
$0.33
|
||||||
- Governmental Aggregation Sales
|
$0.00
|
$0.01
|
$0.01
|
||||||
- Mass Market Sales
|
$0.00
|
$0.06
|
$0.06
|
||||||
- POLR Sales
|
$0.01
|
($0.44)
|
($0.43)
|
||||||
- Structured Sales
|
$0.00
|
($0.04)
|
($0.04)
|
||||||
Subtotal - Contract Generation Sales
|
($0.04)
|
($0.03)
|
($0.07)
|
||||||
Wholesale Sales
|
$0.06
|
($0.07)
|
($0.01)
|
||||||
PJM Capacity, FRR Auction
|
($0.02)
|
$0.14
|
$0.12
|
||||||
Fuel Expense
|
($0.04)
|
$0.09
|
$0.05
|
||||||
Purchased Power
|
($0.02)
|
($0.03)
|
($0.05)
|
||||||
Capacity Expense
|
$0.04
|
($0.14)
|
($0.10)
|
||||||
Net MISO - PJM Transmission
|
($0.13)
|
$0.09
|
($0.04)
|
||||||
Total Increase / (Decrease)
|
($0.15)
|
$0.05
|
($0.10)
|
||||||
(a)
|
Contract Generation Sales – FirstEnergy Solutions Corp.’s (FES) contract generation sales decreased by 1.1 million MWH, or 5%, and decreased earnings by $0.07 per share.
|
|
In line with FES’ strategy to realign its sales portfolio, POLR generation sales decreased by 5.5 million MWH, or 73%, as a result of the elimination of our POLR requirement in Pennsylvania in December 2010, as well as lower POLR obligations and increased shopping in Ohio. Structured sales decreased by 696,000 MWH, or 58%.
|
Consolidated Report to the Financial Community - 4th Quarter 2011 |
2
|
FES Contract Generation Sales - 4Q11 vs. 4Q10
|
||||||||||||||||
(thousand MWH) | Retail | Non-Retail | ||||||||||||||
Direct | Aggr. | Mass Market | POLR | Structured | Total | |||||||||||
Contract Generation Sales Increase / (Decrease)
|
4,470
|
57
|
632
|
(5,528)
|
(696)
|
(1,065)
|
||||||||||
|
(b) Wholesale Sales – FES wholesale electricity sales decreased by 1.9 million MWH, or 90%, and decreased earnings by $0.01 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)
|
Fuel Expenses – Lower fuel expenses increased earnings by $0.05 per share, as competitive generation output for the quarter decreased by 3.1 million MWH, or 16%.
|
Generation Output - 4Q11 vs. 4Q10
|
|||||||||
(thousand MWH)
|
Fossil
|
Nuclear
|
Total
|
||||||
Generation Output Increase / (Decrease)
|
(1,946)
|
(1,199)
|
(3,145)
|
||||||
|
(e) Purchased Power – Economic power purchases increased by 395,000 MWH, or 11%, and decreased earnings by $0.05 per share.
|
FES Purchased Power - 4Q11 vs. 4Q10
|
|||||||||
(thousand MWH)
|
Bilaterals
|
Spot
|
Total
|
||||||
Purchased Power Increase / (Decrease)
|
(446)
|
841
|
395
|
||||||
|
(f) Capacity Expenses – Higher capacity expenses decreased earnings by $0.10 per share as a result of FES serving more retail load.
|
|
(g) Net MISO-PJM Transmission Expenses – The Competitive Energy Services segment’s net MISO-PJM transmission costs decreased earnings by $0.04 per share due primarily to higher congestion, network, and transmission line loss expense in PJM.
|
Consolidated Report to the Financial Community - 4th Quarter 2011 |
3
|
·
|
O&M Expenses – Lower O&M expenses increased earnings by $0.06 per share.
|
(a)
|
Lower generation O&M expenses increased earnings by $0.04 per share. Lower nuclear O&M expenses increased earnings by $0.02 per share. The absence of a refueling outage in the fourth quarter of 2011 (compared to a 33-day refueling outage at Beaver Valley Unit 1 in the fourth quarter of 2010), lower employee benefit costs and more work devoted to capital projects in the fourth quarter of 2011 were partially offset by increased O&M expenses associated with the 66-day mid-cycle outage at Davis-Besse. Lower fossil O&M expenses increased earnings by $0.02 per share.
|
(b)
|
Lower energy delivery O&M expenses increased earnings by $0.02 per share. Continued cost reduction efforts in the Regulated Distribution segment were partially offset by higher non-deferred expenses associated with the October 2011 snow storm in our east coast service territories. Restoration costs associated with the October snow storm, primarily impacting JCP&L and Met-Ed, totaled $125 million. A total of $60 million was related to O&M activities, of which $54 million was deferred for future recovery from customers.
|
·
|
Depreciation – 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.
|
·
|
Investment Income – Lower nuclear decommissioning trust income decreased earnings by $0.02 per share.
|
·
|
Financing Costs – Higher net financing costs decreased earnings by $0.02 per share. Lower capitalized interest decreased earnings by $0.05 per share, while lower interest expense increased earnings by $0.03 per share.
|
·
|
Increased Shares Outstanding – The increase in shares outstanding, resulting from the merger with Allegheny Energy, reduced earnings by $0.22 per share.
|
·
|
Allegheny Companies – Fourth Quarter 2011 – The Allegheny Companies contributed $0.27 per share in earnings during the fourth quarter of 2011.
|
·
|
Purchase Accounting – The impact of purchase accounting associated with the merger with Allegheny Energy contributed $0.04 per share in earnings during the fourth quarter of 2011.
|
·
|
Effective Income Tax Rate – A lower effective income tax rate increased earnings by $0.03 per share, principally due to the reversal of tax valuation allowances previously established for state income tax benefits.
|
Consolidated Report to the Financial Community - 4th Quarter 2011 |
4
|
·
|
Special Items – The following special items were recognized during the fourth quarter of 2011:
|
Special Items
|
EPS
|
||||||||||
Income Tax Charge - Retiree Drug Subsidy
|
$0.06
|
||||||||||
Merger Transaction / Integration Costs
|
0.01
|
||||||||||
Non-Core Asset Sales / Impairments
|
(0.81)
|
||||||||||
Mark-to-Market Adjustments - Pension / OPEB
|
0.74
|
||||||||||
Mark-to-Market Adjustments - Other
|
(0.03)
|
||||||||||
Merger Accounting - Commodity Contracts
|
0.08
|
||||||||||
Generating Plant Charges
|
0.49
|
||||||||||
Total
|
$0.54
|
||||||||||
For additional information, please contact:
|
|
Irene M. Prezelj
|
Meghan G. Beringer
|
Rey Y. Jimenez
|
Vice President, Investor Relations
|
Director, Investor Relations
|
Manager, Investor Relations
|
(330) 384-3859
|
(330) 384-5832
|
(330) 761-4239
|
Consolidated Report to the Financial Community - 4th Quarter 2011 |
5
|
Three Months Ended December 31
|
Twelve Months Ended December 31
|
||||||||||||||||||||||||
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
(1 | ) |
Regulated distribution
|
$ | 2,316 | $ | 2,152 | $ | 164 | $ | 10,004 | $ | 9,710 | $ | 294 | |||||||||||
(2 | ) |
Competitive energy services
|
1,747 | 1,544 | 203 | 7,173 | 5,876 | 1,297 | |||||||||||||||||
(3 | ) |
Regulated independent transmission
|
113 | 53 | 60 | 391 | 242 | 149 | |||||||||||||||||
(3 | ) |
Other corporate & intersegment revenues
|
(273 | ) | (576 | ) | 303 | (1,310 | ) | (2,489 | ) | 1,179 | |||||||||||||
(4 | ) Total Revenues | 3,903 | 3,173 | 730 | 16,258 | 13,339 | 2,919 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(5 | ) |
Fuel
|
597 | 348 | 249 | 2,317 | 1,432 | 885 | |||||||||||||||||
(6 | ) |
Purchased power
|
1,231 | 1,004 | 227 | 4,986 | 4,624 | 362 | |||||||||||||||||
(7 | ) |
Other operating expenses
|
899 | 701 | 198 | 3,909 | 2,696 | 1,213 | |||||||||||||||||
(8 | ) |
Pension and OPEB mark-to-market
|
507 | 190 | 317 | 507 | 190 | 317 | |||||||||||||||||
(9 | ) |
Provision for depreciation
|
312 | 188 | 124 | 1,121 | 768 | 353 | |||||||||||||||||
(10 | ) |
Amortization (deferral) of regulatory assets
|
(15 | ) | 173 | (188 | ) | 329 | 722 | (393 | ) | ||||||||||||||
(11 | ) |
General taxes
|
230 | 189 | 41 | 978 | 776 | 202 | |||||||||||||||||
(12 | ) |
Impairment of long-lived assets
|
372 | 93 | 279 | 413 | 388 | 25 | |||||||||||||||||
(13 | ) Total Expenses | 4,133 | 2,886 | 1,247 | 14,560 | 11,596 | 2,964 | ||||||||||||||||||
(14 | ) Operating Income (Loss) | (230 | ) | 287 | (517 | ) | 1,698 | 1,743 | (45 | ) | |||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||
(15 | ) |
Gain on partial sale of Signal Peak
|
569 | - | 569 | 569 | - | 569 | |||||||||||||||||
(15 | ) |
Investment income
|
14 | 24 | (10 | ) | 114 | 117 | (3 | ) | |||||||||||||||
(16 | ) |
Interest expense
|
(245 | ) | (217 | ) | (28 | ) | (1,008 | ) | (845 | ) | (163 | ) | |||||||||||
(17 | ) |
Capitalized interest
|
15 | 43 | (28 | ) | 70 | 165 | (95 | ) | |||||||||||||||
(18 | ) Total Other Income (Expense) | 353 | (150 | ) | 503 | (255 | ) | (563 | ) | 308 | |||||||||||||||
(19 | ) Income Before Income Taxes | 123 | 137 | (14 | ) | 1,443 | 1,180 | 263 | |||||||||||||||||
(20 | ) Income taxes | 24 | 59 | (35 | ) | 574 | 462 | 112 | |||||||||||||||||
(21 | ) Net Income | 99 | 78 | 21 | 869 | 718 | 151 | ||||||||||||||||||
(22 | ) Income (Loss) attributable to noncontrolling interest | 1 | (5 | ) | 6 | (16 | ) | (24 | ) | 8 | |||||||||||||||
(23 | ) Earnings Available to FirstEnergy Corp. | $ | 98 | $ | 83 | $ | 15 | $ | 885 | $ | 742 | $ | 143 | ||||||||||||
(24 | ) Earnings Per Share of Common Stock | ||||||||||||||||||||||||
(25 | ) |
Basic
|
$ | 0.23 | $ | 0.27 | $ | (0.04 | ) | $ | 2.22 | $ | 2.44 | $ | (0.22 | ) | |||||||||
(26 | ) |
Diluted
|
$ | 0.23 | $ | 0.27 | $ | (0.04 | ) | $ | 2.21 | $ | 2.42 | $ | (0.21 | ) | |||||||||
(27 | ) Weighted Average Number of | ||||||||||||||||||||||||
Common Shares Outstanding | |||||||||||||||||||||||||
(28 | ) |
Basic
|
418 | 304 | 114 | 399 | 304 | 95 | |||||||||||||||||
(29 | ) |
Diluted
|
420 | 306 | 114 | 401 | 305 | 96 | |||||||||||||||||
Consolidated Report to the Financial Community - 4th Quarter 2011 |
6
|
Three Months Ended December 31, 2011
|
|||||||||||||||||||||
Competitive
|
Regulated
|
Other &
|
|||||||||||||||||||
Regulated
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Distribution (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 2,208 | $ | 1,406 | $ | - | $ | - | $ | 3,614 | |||||||||
(2 | ) |
Other
|
109 | 83 | 113 | (26 | ) | 279 | |||||||||||||
(3 | ) |
Internal revenues
|
(1 | ) | 261 | - | (250 | ) | 10 | ||||||||||||
(4 | ) |
Total Revenues
|
2,316 | 1,750 | 113 | (276 | ) | 3,903 | |||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
79 | 518 | - | - | 597 | ||||||||||||||
(6 | ) |
Purchased power
|
1,056 | 425 | - | (250 | ) | 1,231 | |||||||||||||
(7 | ) |
Other operating expenses
|
415 | 496 | 17 | (29 | ) | 899 | |||||||||||||
(8 | ) |
Pension and OPEB mark-to-market
|
291 | 214 | 2 | - | 507 | ||||||||||||||
(9 | ) |
Provision for depreciation
|
182 | 107 | 17 | 6 | 312 | ||||||||||||||
(10 | ) |
Amortization of regulatory assets
|
(16 | ) | - | 1 | - | (15 | ) | ||||||||||||
(11 | ) |
General taxes
|
168 | 50 | 8 | 4 | 230 | ||||||||||||||
(12 | ) |
Impairment of long-lived assets
|
87 | 285 | - | - | 372 | ||||||||||||||
(13 | ) |
Total Operating Expenses
|
2,262 | 2,095 | 45 | (269 | ) | 4,133 | |||||||||||||
(14 | ) |
Operating Income (Loss)
|
54 | (345 | ) | 68 | (7 | ) | (230 | ) | |||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(15 | ) |
Gain on partial sale of Signal Peak
|
- | 569 | - | - | 569 | ||||||||||||||
(16 | ) |
Investment income
|
26 | 7 | - | (19 | ) | 14 | |||||||||||||
(17 | ) |
Interest expense
|
(146 | ) | (72 | ) | (12 | ) | (15 | ) | (245 | ) | |||||||||
(18 | ) |
Capitalized interest
|
3 | 9 | - | 3 | 15 | ||||||||||||||
(19 | ) |
Total Other Income (Expense)
|
(117 | ) | 513 | (12 | ) | (31 | ) | 353 | |||||||||||
(20 | ) |
Income Before Income Taxes
|
(63 | ) | 168 | 56 | (38 | ) | 123 | ||||||||||||
(21 | ) |
Income taxes
|
(26 | ) | 61 | 21 | (32 | ) | 24 | ||||||||||||
(22 | ) |
Net Income (Loss)
|
(37 | ) | 107 | 35 | (6 | ) | 99 | ||||||||||||
(23 | ) |
Income attributable to noncontrolling interest
|
1 | - | - | - | 1 | ||||||||||||||
(24 | ) |
Earnings (Loss) Available to FirstEnergy Corp.
|
$ | (38 | ) | $ | 107 | $ | 35 | $ | (6 | ) | $ | 98 | |||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (384 | ) | $ | 36 | $ | (2 | ) | $ | (4 | ) | $ | (354 | ) | |||||||
After-tax special items
|
$ | (242 | ) | $ | 23 | $ | (1 | ) | $ | (3 | ) | $ | (223 | ) | |||||||
(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 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 - 4th Quarter 2011 |
7
|
Three Months Ended December 31, 2010
|
|||||||||||||||||||||
Competitive
|
Regulated
|
Other &
|
|||||||||||||||||||
Regulated
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Distribution (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 2,025 | $ | 902 | $ | - | $ | 2,927 | |||||||||||
(2 | ) |
Other
|
67 | 153 | 53 | (34 | ) | 239 | |||||||||||||
(3 | ) |
Internal revenues
|
60 | 489 | - | (542 | ) | 7 | |||||||||||||
(4 | ) |
Total Revenues
|
2,152 | 1,544 | 53 | (576 | ) | 3,173 | |||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
- | 348 | - | - | 348 | ||||||||||||||
(6 | ) |
Purchased power
|
1,114 | 439 | - | (549 | ) | 1,004 | |||||||||||||
(7 | ) |
Other operating expenses
|
307 | 392 | 16 | (14 | ) | 701 | |||||||||||||
(8 | ) |
Pension and OPEB mark-to-market
|
82 | 107 | (2 | ) | 3 | 190 | |||||||||||||
(9 | ) |
Provision for depreciation
|
107 | 68 | 9 | 4 | 188 | ||||||||||||||
(10 | ) |
Amortization of regulatory assets
|
169 | - | 4 | - | 173 | ||||||||||||||
(11 | ) |
General taxes
|
146 | 32 | 8 | 3 | 189 | ||||||||||||||
(12 | ) |
Impairment of long-lived assets
|
- | 93 | - | - | 93 | ||||||||||||||
(13 | ) |
Total Operating Expenses
|
1,925 | 1,479 | 35 | (553 | ) | 2,886 | |||||||||||||
(14 | ) |
Operating Income
|
227 | 65 | 18 | (23 | ) | 287 | |||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(15 | ) |
Gain on partial sale of Signal Peak
|
- | - | - | - | - | ||||||||||||||
(16 | ) |
Investment income
|
24 | 10 | - | (10 | ) | 24 | |||||||||||||
(17 | ) |
Interest expense
|
(125 | ) | (63 | ) | (5 | ) | (24 | ) | (217 | ) | |||||||||
(18 | ) |
Capitalized interest
|
2 | 25 | 1 | 15 | 43 | ||||||||||||||
(19 | ) |
Total Other Expense
|
(99 | ) | (28 | ) | (4 | ) | (19 | ) | (150 | ) | |||||||||
(20 | ) |
Income Before Income Taxes
|
128 | 37 | 14 | (42 | ) | 137 | |||||||||||||
(21 | ) |
Income taxes
|
38 | 17 | 6 | (2 | ) | 59 | |||||||||||||
(22 | ) |
Net Income
|
90 | 20 | 8 | (40 | ) | 78 | |||||||||||||
(23 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | (5 | ) | (5 | ) | ||||||||||||
(24 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 90 | $ | 20 | $ | 8 | $ | (35 | ) | $ | 83 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (99 | ) | $ | (126 | ) | $ | (3 | ) | $ | (6 | ) | $ | (234 | ) | ||||||
After-tax special items
|
$ | (89 | ) | $ | (123 | ) | $ | (3 | ) | $ | 62 | $ | (153 | ) | |||||||
(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 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 - 4th Quarter 2011 |
8
|
Three Months Ended December 31, 2011 vs. Three Months Ended December 31, 2010
|
|||||||||||||||||||||
Energy
|
Competitive
|
Regulated
|
Other &
|
||||||||||||||||||
Delivery
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Services (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 183 | $ | 504 | $ | - | $ | - | $ | 687 | |||||||||
(2 | ) |
Other
|
42 | (70 | ) | 60 | 8 | 40 | |||||||||||||
(3 | ) |
Internal revenues
|
(61 | ) | (228 | ) | - | 292 | 3 | ||||||||||||
(4 | ) |
Total Revenues
|
164 | 206 | 60 | 300 | 730 | ||||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
79 | 170 | - | - | 249 | ||||||||||||||
(6 | ) |
Purchased power
|
(58 | ) | (14 | ) | - | 299 | 227 | ||||||||||||
(7 | ) |
Other operating expenses
|
108 | 104 | 1 | (15 | ) | 198 | |||||||||||||
(8 | ) |
Pension and OPEB mark-to-market
|
209 | 107 | 4 | (3 | ) | 317 | |||||||||||||
(9 | ) |
Provision for depreciation
|
75 | 39 | 8 | 2 | 124 | ||||||||||||||
(10 | ) |
Amortization of regulatory assets
|
(185 | ) | - | (3 | ) | - | (188 | ) | |||||||||||
(11 | ) |
General taxes
|
22 | 18 | - | 1 | 41 | ||||||||||||||
(12 | ) |
Impairment of long-lived assets
|
87 | 192 | - | - | 279 | ||||||||||||||
(13 | ) |
Total Operating Expenses
|
337 | 616 | 10 | 284 | 1,247 | ||||||||||||||
(14 | ) |
Operating Income (Loss)
|
(173 | ) | (410 | ) | 50 | 16 | (517 | ) | |||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(15 | ) |
Gain on partial sale of Signal Peak
|
- | 569 | - | - | 569 | ||||||||||||||
(16 | ) |
Investment income (loss)
|
2 | (3 | ) | - | (9 | ) | (10 | ) | |||||||||||
(17 | ) |
Interest expense
|
(21 | ) | (9 | ) | (7 | ) | 9 | (28 | ) | ||||||||||
(18 | ) |
Capitalized interest
|
1 | (16 | ) | (1 | ) | (12 | ) | (28 | ) | ||||||||||
(19 | ) |
Total Other Income (Expense)
|
(18 | ) | 541 | (8 | ) | (12 | ) | 503 | |||||||||||
(20 | ) |
Income Before Income Taxes
|
(191 | ) | 131 | 42 | 4 | (14 | ) | ||||||||||||
(21 | ) |
Income taxes
|
(64 | ) | 44 | 15 | (30 | ) | (35 | ) | |||||||||||
(22 | ) |
Net Income
|
(127 | ) | 87 | 27 | 34 | 21 | |||||||||||||
(23 | ) |
Income attributable to noncontrolling interest
|
1 | - | - | 5 | 6 | ||||||||||||||
(24 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | (128 | ) | $ | 87 | $ | 27 | $ | 29 | $ | 15 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (285 | ) | $ | 162 | $ | 1 | $ | 2 | $ | (120 | ) | |||||||||
After-tax special items
|
$ | (153 | ) | $ | 146 | $ | 2 | $ | (65 | ) | $ | (70 | ) | ||||||||
(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 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 - 4th Quarter 2011 |
9
|
Twelve Months Ended December 31, 2011
|
|||||||||||||||||||||
Competitive
|
Regulated
|
Other &
|
|||||||||||||||||||
Regulated
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Distribution (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 9,544 | $ | 5,573 | $ | - | $ | - | $ | 15,117 | |||||||||
(2 | ) |
Other
|
460 | 363 | 391 | (140 | ) | 1,074 | |||||||||||||
(3 | ) |
Internal revenues
|
- | 1,237 | - | (1,170 | ) | 67 | |||||||||||||
(4 | ) |
Total Revenues
|
10,004 | 7,173 | 391 | (1,310 | ) | 16,258 | |||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
268 | 2,049 | - | - | 2,317 | ||||||||||||||
(6 | ) |
Purchased power
|
4,672 | 1,491 | - | (1,177 | ) | 4,986 | |||||||||||||
(7 | ) |
Other operating expenses
|
1,662 | 2,256 | 68 | (77 | ) | 3,909 | |||||||||||||
(8 | ) |
Pension and OPEB mark-to-market
|
290 | 215 | 2 | - | 507 | ||||||||||||||
(9 | ) |
Provision for depreciation
|
620 | 415 | 60 | 26 | 1,121 | ||||||||||||||
(10 | ) |
Amortization of regulatory assets
|
323 | - | 6 | - | 329 | ||||||||||||||
(11 | ) |
General taxes
|
724 | 200 | 33 | 21 | 978 | ||||||||||||||
(12 | ) |
Impairment of long-lived assets
|
87 | 315 | - | 11 | 413 | ||||||||||||||
(13 | ) |
Total Operating Expenses
|
8,646 | 6,941 | 169 | (1,196 | ) | 14,560 | |||||||||||||
(14 | ) |
Operating Income
|
1,358 | 232 | 222 | (114 | ) | 1,698 | |||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(15 | ) |
Gain on partial sale of Signal Peak
|
- | 569 | - | - | 569 | ||||||||||||||
(16 | ) |
Investment income
|
110 | 56 | - | (52 | ) | 114 | |||||||||||||
(17 | ) |
Interest expense
|
(573 | ) | (298 | ) | (46 | ) | (91 | ) | (1,008 | ) | |||||||||
(18 | ) |
Capitalized interest
|
10 | 40 | 2 | 18 | 70 | ||||||||||||||
(19 | ) |
Total Other Income (Expense)
|
(453 | ) | 367 | (44 | ) | (125 | ) | (255 | ) | ||||||||||
(20 | ) |
Income Before Income Taxes
|
905 | 599 | 178 | (239 | ) | 1,443 | |||||||||||||
(21 | ) |
Income taxes
|
335 | 222 | 66 | (49 | ) | 574 | |||||||||||||
(22 | ) |
Net Income
|
570 | 377 | 112 | (190 | ) | 869 | |||||||||||||
(23 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | (16 | ) | (16 | ) | ||||||||||||
(24 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 570 | $ | 377 | $ | 112 | $ | (174 | ) | $ | 885 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (488 | ) | $ | (260 | ) | $ | (6 | ) | $ | (73 | ) | $ | (827 | ) | ||||||
After-tax special items
|
$ | (307 | ) | $ | (164 | ) | $ | (4 | ) | $ | (92 | ) | $ | (567 | ) | ||||||
(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 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 - 4th Quarter 2011 |
10
|
Twelve Months Ended December 31, 2010
|
|||||||||||||||||||||
Competitive
|
Regulated
|
Other &
|
|||||||||||||||||||
Regulated
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Distribution (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 9,271 | $ | 3,252 | $ | - | $ | - | $ | 12,523 | |||||||||
(2 | ) |
Other
|
300 | 323 | 242 | (123 | ) | 742 | |||||||||||||
(3 | ) |
Internal revenues
|
139 | 2,301 | - | (2,366 | ) | 74 | |||||||||||||
(4 | ) |
Total Revenues
|
9,710 | 5,876 | 242 | (2,489 | ) | 13,339 | |||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
- | 1,432 | - | - | 1,432 | ||||||||||||||
(6 | ) |
Purchased power
|
5,273 | 1,724 | - | (2,373 | ) | 4,624 | |||||||||||||
(7 | ) |
Other operating expenses
|
1,320 | 1,393 | 61 | (78 | ) | 2,696 | |||||||||||||
(8 | ) |
Pension and OPEB mark-to-market
|
82 | 106 | (2 | ) | 4 | 190 | |||||||||||||
(9 | ) |
Provision for depreciation
|
433 | 284 | 37 | 14 | 768 | ||||||||||||||
(10 | ) |
Amortization of regulatory assets
|
712 | - | 10 | - | 722 | ||||||||||||||
(11 | ) |
General taxes
|
605 | 124 | 30 | 17 | 776 | ||||||||||||||
(12 | ) |
Impairment of long-lived assets
|
- | 388 | - | - | 388 | ||||||||||||||
(13 | ) |
Total Operating Expenses
|
8,425 | 5,451 | 136 | (2,416 | ) | 11,596 | |||||||||||||
(14 | ) |
Operating Income
|
1,285 | 425 | 106 | (73 | ) | 1,743 | |||||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(15 | ) |
Gain on partial sale of Signal Peak
|
- | - | - | - | - | ||||||||||||||
(16 | ) |
Investment income
|
102 | 51 | - | (36 | ) | 117 | |||||||||||||
(17 | ) |
Interest expense
|
(500 | ) | (232 | ) | (22 | ) | (91 | ) | (845 | ) | |||||||||
(18 | ) |
Capitalized interest
|
4 | 95 | 2 | 64 | 165 | ||||||||||||||
(19 | ) |
Total Other Expense
|
(394 | ) | (86 | ) | (20 | ) | (63 | ) | (563 | ) | |||||||||
(20 | ) |
Income Before Income Taxes
|
891 | 339 | 86 | (136 | ) | 1,180 | |||||||||||||
(21 | ) |
Income taxes
|
339 | 128 | 32 | (37 | ) | 462 | |||||||||||||
(22 | ) |
Net Income
|
552 | 211 | 54 | (99 | ) | 718 | |||||||||||||
(23 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | (24 | ) | (24 | ) | ||||||||||||
(24 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 552 | $ | 211 | $ | 54 | $ | (75 | ) | $ | 742 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (166 | ) | $ | (492 | ) | $ | (5 | ) | $ | (8 | ) | $ | (671 | ) | ||||||
After-tax special items
|
$ | (146 | ) | $ | (353 | ) | $ | (4 | ) | $ | 59 | $ | (444 | ) | |||||||
(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 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 - 4th Quarter 2011 |
11
|
Twelve Months Ended December 31, 2011 vs. Twelve Months Ended December 31, 2010
|
|||||||||||||||||||||
Energy
|
Competitive
|
Regulated
|
Other &
|
||||||||||||||||||
Delivery
|
Energy
|
Independent
|
Reconciling
|
||||||||||||||||||
Services (a)
|
Services (b)
|
Transmission (c)
|
Adjustments (d)
|
Consolidated
|
|||||||||||||||||
Revenues
|
|||||||||||||||||||||
(1 | ) |
Electric sales
|
$ | 273 | $ | 2,321 | $ | - | $ | - | $ | 2,594 | |||||||||
(2 | ) |
Other
|
160 | 40 | 149 | (17 | ) | 332 | |||||||||||||
(3 | ) |
Internal revenues
|
(139 | ) | (1,064 | ) | - | 1,196 | (7 | ) | |||||||||||
(4 | ) |
Total Revenues
|
294 | 1,297 | 149 | 1,179 | 2,919 | ||||||||||||||
Operating Expenses
|
|||||||||||||||||||||
(5 | ) |
Fuel
|
268 | 617 | - | - | 885 | ||||||||||||||
(6 | ) |
Purchased power
|
(601 | ) | (233 | ) | - | 1,196 | 362 | ||||||||||||
(7 | ) |
Other operating expenses
|
342 | 863 | 7 | 1 | 1,213 | ||||||||||||||
(8 | ) |
Pension and OPEB mark-to-market
|
208 | 109 | 4 | (4 | ) | 317 | |||||||||||||
(9 | ) |
Provision for depreciation
|
187 | 131 | 23 | 12 | 353 | ||||||||||||||
(10 | ) |
Amortization of regulatory assets
|
(389 | ) | - | (4 | ) | - | (393 | ) | |||||||||||
(11 | ) |
General taxes
|
119 | 76 | 3 | 4 | 202 | ||||||||||||||
(12 | ) |
Impairment of long-lived assets
|
87 | (73 | ) | - | 11 | 25 | |||||||||||||
(13 | ) |
Total Operating Expenses
|
221 | 1,490 | 33 | 1,220 | 2,964 | ||||||||||||||
(14 | ) |
Operating Income (Loss)
|
73 | (193 | ) | 116 | (41 | ) | (45 | ) | |||||||||||
Other Income (Expense)
|
|||||||||||||||||||||
(15 | ) |
Gain on partial sale of Signal Peak
|
- | 569 | - | - | 569 | ||||||||||||||
(16 | ) |
Investment income (loss)
|
8 | 5 | - | (16 | ) | (3 | ) | ||||||||||||
(17 | ) |
Interest expense
|
(73 | ) | (66 | ) | (24 | ) | - | (163 | ) | ||||||||||
(18 | ) |
Capitalized interest
|
6 | (55 | ) | - | (46 | ) | (95 | ) | |||||||||||
(19 | ) |
Total Other Income (Expense)
|
(59 | ) | 453 | (24 | ) | (62 | ) | 308 | |||||||||||
(20 | ) |
Income Before Income Taxes
|
14 | 260 | 92 | (103 | ) | 263 | |||||||||||||
(21 | ) |
Income taxes
|
(4 | ) | 94 | 34 | (12 | ) | 112 | ||||||||||||
(22 | ) |
Net Income
|
18 | 166 | 58 | (91 | ) | 151 | |||||||||||||
(23 | ) |
Loss attributable to noncontrolling interest
|
- | - | - | 8 | 8 | ||||||||||||||
(24 | ) |
Earnings Available to FirstEnergy Corp.
|
$ | 18 | $ | 166 | $ | 58 | $ | (99 | ) | $ | 143 | ||||||||
Included in GAAP Earnings (e):
|
|||||||||||||||||||||
Pre-tax special items
|
$ | (322 | ) | $ | 232 | $ | (1 | ) | $ | (65 | ) | $ | (156 | ) | |||||||
After-tax special items
|
$ | (161 | ) | $ | 189 | $ | - | $ | (151 | ) | $ | (123 | ) | ||||||||
(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 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 - 4th Quarter 2011 |
12
|
Condensed Consolidated Balance Sheets
|
||||||||
As of
|
As of
|
|||||||
Assets
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 202 | $ | 1,019 | ||||
Receivables
|
1,794 | 1,568 | ||||||
Other
|
1,359 | 1,111 | ||||||
Total Current Assets
|
3,355 | 3,698 | ||||||
Property, Plant and Equipment
|
30,337 | 20,510 | ||||||
Investments
|
3,522 | 3,002 | ||||||
Deferred Charges and Other Assets
|
10,112 | 8,321 | ||||||
Total Assets
|
$ | 47,326 | $ | 35,531 | ||||
Liabilities and Capitalization
|
||||||||
Current Liabilities:
|
||||||||
Currently payable long-term debt
|
$ | 1,621 | $ | 1,486 | ||||
Short-term borrowings
|
- | 700 | ||||||
Accounts payable
|
1,174 | 872 | ||||||
Other
|
2,060 | 1,646 | ||||||
Total Current Liabilities
|
4,855 | 4,704 | ||||||
Capitalization:
|
||||||||
Total equity
|
13,299 | 8,952 | ||||||
Long-term debt and other long-term obligations
|
15,716 | 12,579 | ||||||
Total Capitalization
|
29,015 | 21,531 | ||||||
Noncurrent Liabilities
|
13,456 | 9,296 | ||||||
Total Liabilities and Capitalization
|
$ | 47,326 | $ | 35,531 | ||||
General Information
|
||||||||||||||||
Three Months Ended Dec. 31
|
Twelve Months Ended Dec. 31
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Debt redemptions
|
$ | (328 | ) | $ | (593 | ) | $ | (1,909 | ) | $ | (1,015 | ) | ||||
New long-term debt issues
|
$ | 1 | $ | 848 | $ | 604 | $ | 1,099 | ||||||||
Short-term borrowings decrease
|
$ | - | $ | (207 | ) | $ | (700 | ) | $ | (378 | ) | |||||
Property additions
|
$ | 749 | $ | 496 | $ | 2,278 | $ | 1,963 | ||||||||
Adjusted Capitalization
|
||||||||||||||||
As of December 31
|
||||||||||||||||
2011
|
% Total
|
2010
|
% Total
|
|||||||||||||
Total equity
|
$ | 13,299 | 43 | % | $ | 8,952 | 38 | % | ||||||||
Long-term debt and other long-term obligations
|
15,716 | 51 | % | 12,579 | 52 | % | ||||||||||
Currently payable long-term debt
|
1,621 | 5 | % | 1,486 | 6 | % | ||||||||||
Short-term borrowings
|
- | 0 | % | 700 | 3 | % | ||||||||||
Adjustments:
|
||||||||||||||||
Sale-leaseback net debt equivalents
|
1,278 | 4 | % | 1,357 | 6 | % | ||||||||||
Securitization debt and cash
|
(971 | ) | -3 | % | (1,295 | ) | -5 | % | ||||||||
Total
|
$ | 30,943 | 100 | % | $ | 23,779 | 100 | % | ||||||||
Consolidated Report to the Financial Community - 4th Quarter 2011 |
13
|
Condensed Consolidated Statements of Cash Flows
|
||||||||||||||||
Three Months Ended Dec. 31
|
Twelve Months Ended Dec. 31
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Net income
|
$ | 99 | $ | 78 | $ | 869 | $ | 718 | ||||||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||||||||||
Depreciation, amortization, and deferral of regulatory assets
|
346 | 406 | 1,651 | 1,658 | ||||||||||||
Deferred purchased power and other costs
|
(56 | ) | (62 | ) | (278 | ) | (254 | ) | ||||||||
Deferred income taxes and investment tax credits
|
102 | 152 | 798 | 450 | ||||||||||||
Deferred rents and lease market valuation liability
|
(32 | ) | (33 | ) | (49 | ) | (54 | ) | ||||||||
Pensions and OPEB mark-to-market
|
507 | 190 | 507 | 190 | ||||||||||||
Accrued compensation and retirement benefits
|
(57 | ) | 4 | (82 | ) | (65 | ) | |||||||||
Gain on sale of assets
|
(545 | ) | (2 | ) | (545 | ) | (2 | ) | ||||||||
Cash collateral, net
|
(13 | ) | 28 | (79 | ) | (26 | ) | |||||||||
Commodity derivative transactions, net
|
(5 | ) | (41 | ) | (27 | ) | (81 | ) | ||||||||
Interest rate swap transactions
|
- | - | - | 129 | ||||||||||||
Impairment of long-lived assets
|
372 | 93 | 413 | 388 | ||||||||||||
Pension trust contribution
|
- | - | (372 | ) | - | |||||||||||
Gain on investment securities held in trusts, net
|
(3 | ) | (16 | ) | (59 | ) | (55 | ) | ||||||||
Change in working capital and other
|
119 | 206 | 316 | 80 | ||||||||||||
Cash flows provided from operating activities
|
834 | 1,003 | 3,063 | 3,076 | ||||||||||||
Cash flows provided from (used for) financing activities
|
(522 | ) | (113 | ) | (2,924 | ) | (983 | ) | ||||||||
Cash flows used for investing activities
|
(401 | ) | (503 | ) | (956 | ) | (1,948 | ) | ||||||||
Net change in cash and cash equivalents
|
$ | (89 | ) | $ | 387 | $ | (817 | ) | $ | 145 | ||||||
Deferral and Amortization
|
Three Months Ended December 31
|
Twelve Months Ended December 31
|
|||||||||||||||||||||||
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||||||||||||
Ohio Amended ESP Amortization (Deferral)
|
|||||||||||||||||||||||||
Uncollectible customer accounts
|
$ | 1 | $ | 1 | $ | - | $ | (1 | ) | $ | (2 | ) | $ | 1 | |||||||||||
Economic development costs & interest
|
(7 | ) | (10 | ) | 3 | (4 | ) | (2 | ) | (2 | ) | ||||||||||||||
Generation cost rider true-up & interest
|
3 | 18 | (15 | ) | (8 | ) | 19 | (27 | ) | ||||||||||||||||
Distribution reliability costs (RDD/NDD)
|
(1 | ) | 47 | (48 | ) | 122 | 133 | (11 | ) | ||||||||||||||||
Ohio Transmission Amortization
|
|||||||||||||||||||||||||
Transmission costs
|
- | 3 | (3 | ) | 5 | (34 | ) | 39 | |||||||||||||||||
Ohio Other Amortization (Deferral)
|
|||||||||||||||||||||||||
Generation related deferral
|
(39 | ) | (27 | ) | (12 | ) | (84 | ) | (63 | ) | (21 | ) | |||||||||||||
Distribution related deferral
|
6 | 8 | (2 | ) | 42 | 58 | (16 | ) | |||||||||||||||||
All Other
|
- | 26 | (26 | ) | - | 155 | (155 | ) | |||||||||||||||||
Pennsylvania Amortization (Deferral)
|
|||||||||||||||||||||||||
PJM transmission costs
|
(49 | ) | 6 | (55 | ) | (175 | ) | 2 | (177 | ) | |||||||||||||||
NUG costs
|
41 | 10 | 31 | 203 | 48 | 155 | |||||||||||||||||||
Storm costs
|
(14 | ) | - | (14 | ) | (32 | ) | - | (32 | ) | |||||||||||||||
All Other
|
60 | 21 | 39 | 172 | 88 | 84 | |||||||||||||||||||
New Jersey Amortization (Deferral)
|
|||||||||||||||||||||||||
NUG costs
|
19 | 58 | (39 | ) | 141 | 265 | (124 | ) | |||||||||||||||||
Storm costs
|
(41 | ) | - | (41 | ) | (91 | ) | (19 | ) | (72 | ) | ||||||||||||||
All Other
|
12 | 12 | - | 58 | 74 | (16 | ) | ||||||||||||||||||
Allegheny Amortization (Deferral)*
|
(6 | ) | N/A | (6 | ) | (19 | ) | N/A | (19 | ) | |||||||||||||||
Total Amortization (Deferral)
|
$ | (15 | ) | $ | 173 | $ | (188 | ) | $ | 329 | $ | 722 | $ | (393 | ) | ||||||||||
*Represents data for March 2011 - December 2011 only.
|
|||||||||||||||||||||||||
Consolidated Report to the Financial Community - 4th Quarter 2011 |
14
|
Electric Sales Statistics (MWh in thousands)
|
||||||||||||||||
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||
Electric Distribution Deliveries | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||
Ohio
|
- Residential
|
3,995
|
4,286
|
-6.8%
|
17,819
|
17,809
|
0.1%
|
|||||||||
- Commercial
|
3,728
|
3,737
|
-0.2%
|
15,520
|
15,545
|
-0.2%
|
||||||||||
- Industrial
|
4,843
|
4,853
|
-0.2%
|
20,273
|
19,602
|
3.4%
|
||||||||||
- Other
|
88
|
87
|
1.1%
|
346
|
350
|
-1.1%
|
||||||||||
Total Ohio
|
12,654
|
12,963
|
-2.4%
|
53,958
|
53,306
|
1.2%
|
||||||||||
Pennsylvania
|
- Residential
|
2,730
|
2,955
|
-7.6%
|
11,853
|
12,018
|
-1.4%
|
|||||||||
- Commercial
|
1,877
|
1,963
|
-4.4%
|
7,808
|
7,988
|
-2.3%
|
||||||||||
- Industrial
|
3,083
|
3,041
|
1.4%
|
12,951
|
12,524
|
3.4%
|
||||||||||
- Other
|
19
|
20
|
-5.0%
|
77
|
83
|
-7.2%
|
||||||||||
Total Pennsylvania
|
7,709
|
7,979
|
-3.4%
|
32,689
|
32,613
|
0.2%
|
||||||||||
New Jersey
|
- Residential
|
1,940
|
2,118
|
-8.4%
|
9,697
|
9,993
|
-3.0%
|
|||||||||
- Commercial
|
2,187
|
2,295
|
-4.7%
|
9,282
|
9,563
|
-2.9%
|
||||||||||
- Industrial
|
548
|
576
|
-4.9%
|
2,413
|
2,487
|
-3.0%
|
||||||||||
- Other
|
22
|
22
|
0.0%
|
90
|
89
|
1.1%
|
||||||||||
Total New Jersey
|
4,697
|
5,011
|
-6.3%
|
21,482
|
22,132
|
-2.9%
|
||||||||||
Total Residential
|
8,665
|
9,359
|
-7.4%
|
39,369
|
39,820
|
-1.1%
|
||||||||||
Total Commercial
|
7,792
|
7,995
|
-2.5%
|
32,610
|
33,096
|
-1.5%
|
||||||||||
Total Industrial
|
8,474
|
8,470
|
0.0%
|
35,637
|
34,613
|
3.0%
|
||||||||||
Total Other
|
129
|
129
|
0.0%
|
513
|
522
|
-1.7%
|
||||||||||
Total Distribution Deliveries
|
25,060
|
25,953
|
-3.4%
|
108,129
|
108,051
|
0.1%
|
||||||||||
Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||||
2011 | 2010 | Normal | 2011 | 2010 | Normal | |||||||||||
Composite Heating-Degree-Days
|
1,631
|
2,052
|
1,958
|
5,116
|
5,292
|
5,572
|
||||||||||
Composite Cooling-Degree-Days
|
5
|
7
|
12
|
1,150
|
1,249
|
897
|
||||||||||
Shopping Statistics | Three Months Ended December 31 | Twelve Months Ended December 31 (1) | |||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
OE
|
74%
|
67%
|
73%
|
59%
|
|||||||||
PP
|
61%
|
56%
|
58%
|
55%
|
|||||||||
CEI
|
83%
|
70%
|
82%
|
63%
|
|||||||||
TE
|
73%
|
68%
|
73%
|
66%
|
|||||||||
JCP&L
|
49%
|
41%
|
44%
|
35%
|
|||||||||
Met-Ed
|
54%
|
8%
|
47%
|
3%
|
|||||||||
Penelec
|
61%
|
4%
|
55%
|
4%
|
|||||||||
MP
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||
PE(2)
|
43%
|
N/A
|
61%
|
N/A
|
|||||||||
WP
|
55%
|
N/A
|
52%
|
N/A
|
|||||||||
(1) MP, PE and WP are based upon March - December MWH.
|
|||||||||||||
(2) Represents Maryland only.
|
|||||||||||||
Operating Statistics | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | ||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||
Capacity Factors:
|
||||||||||||||
Nuclear
|
77%
|
91%
|
85%
|
88%
|
||||||||||
Fossil - Baseload
|
66%
|
88%
|
68%
|
76%
|
||||||||||
Fossil - Load Following
|
25%
|
37%
|
44%
|
52%
|
||||||||||
Generation Output:
|
||||||||||||||
Nuclear
|
29%
|
42%
|
31%
|
41%
|
||||||||||
Fossil - Baseload
|
60%
|
45%
|
53%
|
39%
|
||||||||||
Fossil - Load Following
|
8%
|
13%
|
13%
|
18%
|
||||||||||
Peaking/Hydro
|
2%
|
1%
|
2%
|
1%
|
||||||||||
Consolidated Report to the Financial Community - 4th Quarter 2011 |
15
|
Summary of Sales, Power Purchases and Generation Output (MWh in thousands)
|
||||||||||||||||||
Pre-Merged Companies
|
Three Months Ended Dec 31
|
Twelve Months Ended Dec 31
|
||||||||||||||||
FES Generation Sales
|
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||||
POLR
|
||||||||||||||||||
- OH
|
715
|
3,121
|
(2,406)
|
6,097
|
15,601
|
(9,504)
|
||||||||||||
- PA
|
1,333
|
4,455
|
(3,122)
|
7,747
|
19,988
|
(12,241)
|
||||||||||||
Total POLR
|
2,048
|
7,576
|
(5,528)
|
13,844
|
35,589
|
(21,745)
|
||||||||||||
Structured Sales
|
||||||||||||||||||
- Bilaterals
|
503
|
1,199
|
(696)
|
1,496
|
3,318
|
(1,822)
|
||||||||||||
Total Structured Sales
|
503
|
1,199
|
(696)
|
1,496
|
3,318
|
(1,822)
|
||||||||||||
Direct - LCI
|
|
|||||||||||||||||
- OH
|
6,135
|
4,793
|
1,342
|
22,974
|
17,486
|
5,488
|
||||||||||||
- PA
|
3,635
|
1,341
|
2,294
|
13,399
|
4,524
|
8,875
|
||||||||||||
- NJ
|
368
|
358
|
10
|
1,646
|
1,374
|
272
|
||||||||||||
- MI
|
539
|
392
|
147
|
1,979
|
1,518
|
461
|
||||||||||||
- IL
|
716
|
551
|
165
|
2,947
|
2,152
|
795
|
||||||||||||
- MD
|
130
|
73
|
57
|
571
|
281
|
290
|
||||||||||||
Total Direct - LCI
|
11,523
|
7,508
|
4,015
|
43,516
|
27,335
|
16,181
|
||||||||||||
Direct - MCI
|
||||||||||||||||||
- OH
|
541
|
309
|
232
|
1,885
|
1,141
|
744
|
||||||||||||
- PA
|
230
|
7
|
223
|
786
|
23
|
763
|
||||||||||||
- IL
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||
Total Direct - MCI
|
771
|
316
|
455
|
2,671
|
1,164
|
1,507
|
||||||||||||
Aggregation
|
||||||||||||||||||
- OH
|
3,460
|
3,407
|
53
|
15,779
|
12,239
|
3,540
|
||||||||||||
- IL
|
4
|
-
|
4
|
7
|
-
|
7
|
||||||||||||
Total Aggregation
|
3,464
|
3,407
|
57
|
15,786
|
12,239
|
3,547
|
||||||||||||
Mass Market
|
||||||||||||||||||
- OH
|
214
|
125
|
89
|
743
|
467
|
276
|
||||||||||||
- PA
|
567
|
26
|
541
|
1,191
|
90
|
1,101
|
||||||||||||
- IL
|
2
|
-
|
2
|
2
|
-
|
2
|
||||||||||||
Total Mass Market
|
783
|
151
|
632
|
1,936
|
557
|
1,379
|
||||||||||||
Total Contract Generation Sales
|
19,092
|
20,157
|
(1,065)
|
79,249
|
80,202
|
(953)
|
||||||||||||
Wholesale Sales
|
||||||||||||||||||
- Spot
|
203
|
2,111
|
(1,908)
|
2,916
|
5,391
|
(2,475)
|
||||||||||||
Total Wholesale Sales
|
203
|
2,111
|
(1,908)
|
2,916
|
5,391
|
(2,475)
|
||||||||||||
Purchased Power
|
||||||||||||||||||
- Bilaterals
|
605
|
1,051
|
(446)
|
2,613
|
3,562
|
(949)
|
||||||||||||
- Spot
|
3,391
|
2,550
|
841
|
12,512
|
9,241
|
3,271
|
||||||||||||
Total Purchased Power
|
3,996
|
3,601
|
395
|
15,125
|
12,803
|
2,322
|
||||||||||||
Generation Output
|
||||||||||||||||||
- Fossil
|
9,307
|
11,253
|
(1,946)
|
40,204
|
44,063
|
(3,859)
|
||||||||||||
- Nuclear
|
6,796
|
7,995
|
(1,199)
|
29,835
|
30,871
|
(1,036)
|
||||||||||||
Total Generation Output
|
16,103
|
19,248
|
(3,145)
|
70,039
|
74,934
|
(4,895)
|
||||||||||||
Allegheny Companies | Twelve Months | |||||||||||||||||
Three Months Ended Dec 31
|
Ended Dec 31 | |||||||||||||||||
AS Generation Sales
|
2011
|
2010
|
Change
|
2011
|
||||||||||||||
POLR
|
2,389
|
7,974
|
||||||||||||||||
Structured Sales
|
164
|
1,492
|
||||||||||||||||
Direct - LCI
|
407
|
1,390
|
||||||||||||||||
Total Generation Sales
|
2,960
|
10,856
|
||||||||||||||||
Wholesale Sales
|
4,031
|
15,754
|
||||||||||||||||
Purchased Power
|
87
|
385
|
||||||||||||||||
Generation Output - Competitive
|
6,962
|
6,519
|
443
|
26,454
|
||||||||||||||
Consolidated Report to the Financial Community - 4th Quarter 2011 |
16
|
Competitive
|
Regulated
|
|||||||||||||||||||||
Regulated
|
Energy
|
Independent
|
||||||||||||||||||||
Special Items - Three Months Ended Dec. 31, 2011 |
Distribution
|
Services
|
Transmission
|
Other
|
Consolidated
|
|||||||||||||||||
Pre-Tax Items: | ||||||||||||||||||||||
Regulatory charges | $ | (2 | ) | $ | - | $ | - | $ | - | $ | (2 | ) | ||||||||||
Trust securities impairment | - | (1 | ) | - | - | (1 | ) | |||||||||||||||
Merger transaction/integration costs | (2 | ) | (2 | ) | - | (1 | ) | (5 | ) | |||||||||||||
Non-core asset sales/impairments | - | 526 | - | (3 | ) | 523 | ||||||||||||||||
Mark-to-market adjustments - | ||||||||||||||||||||||
Pensions/OPEB actuarial assumptions | (291 | ) | (214 | ) | (2 | ) | - | (507 | ) | |||||||||||||
Other | - | 23 | - | - | 23 | |||||||||||||||||
Merger accounting - commodity contracts | (2 | ) | (49 | ) | - | - | (51 | ) | ||||||||||||||
Generating plant charges | (87 | ) | (247 | ) | - | - | (334 | ) | ||||||||||||||
Subtotal | (384 | ) | 36 | (2 | ) | (4 | ) | (354 | ) | |||||||||||||
Income tax charge (retiree drug subsidy) | - | - | - | (26 | ) | (26 | ) | |||||||||||||||
Income taxes | 142 | (13 | ) | 1 | 27 | 157 | ||||||||||||||||
After-Tax Effect | $ | (242 | ) | $ | 23 | $ | (1 | ) | $ | (3 | ) | $ | (223 | ) | ||||||||
Competitive
|
Regulated
|
|||||||||||||||||||||
Regulated
|
Energy
|
Independent
|
||||||||||||||||||||
Special Items - Three Months Ended Dec. 31, 2010 |
Distribution
|
Services
|
Transmission
|
Other
|
Consolidated
|
|||||||||||||||||
Pre-Tax Items: | ||||||||||||||||||||||
Trust securities impairment | - | (11 | ) | - | - | (11 | ) | |||||||||||||||
Merger transaction/integration costs | (19 | ) | (9 | ) | (1 | ) | - | (29 | ) | |||||||||||||
Mark-to-market adjustments - | ||||||||||||||||||||||
Pensions/OPEB actuarial assumptions | (78 | ) | (107 | ) | (2 | ) | (3 | ) | (190 | ) | ||||||||||||
Other | - | - | - | - | - | |||||||||||||||||
Non-core asset sales/impairments | (2 | ) | 85 | (3 | ) | 80 | ||||||||||||||||
Generating plant charges | - | (84 | ) | - | - | (84 | ) | |||||||||||||||
Subtotal | (99 | ) | (126 | ) | (3 | ) | (6 | ) | (234 | ) | ||||||||||||
Income tax charge (retiree drug subsidy) | (2 | ) | (1 | ) | - | - | (3 | ) | ||||||||||||||
Income taxes | 12 | 4 | - | 68 | 84 | |||||||||||||||||
After-Tax Effect | $ | (89 | ) | $ | (123 | ) | $ | (3 | ) | $ | 62 | $ | (153 | ) | ||||||||
Competitive
|
Regulated
|
|||||||||||||||||||||
Regulated
|
Energy
|
Independent
|
||||||||||||||||||||
Special Items - Twelve Months Ended Dec. 31, 2011 |
Distribution
|
Services
|
Transmission
|
Other
|
Consolidated
|
|||||||||||||||||
Pre-Tax Items: | ||||||||||||||||||||||
Regulatory charges | $ | (26 | ) | $ | - | $ | - | $ | (10 | ) | $ | (36 | ) | |||||||||
Trust securities impairment | (2 | ) | (17 | ) | - | - | (19 | ) | ||||||||||||||
Merger transaction/integration costs | (78 | ) | (100 | ) | (4 | ) | (2 | ) | (184 | ) | ||||||||||||
Non-core asset sales/impairments | - | 504 | - | (30 | ) | 474 | ||||||||||||||||
Mark-to-market adjustments - | ||||||||||||||||||||||
Pensions/OPEB actuarial assumptions | (291 | ) | (214 | ) | (2 | ) | - | (507 | ) | |||||||||||||
Other | - | (14 | ) | - | - | (14 | ) | |||||||||||||||
Merger accounting - commodity contracts | (6 | ) | (161 | ) | - | - | (167 | ) | ||||||||||||||
Litigation resolution | 2 | (10 | ) | - | (29 | ) | (37 | ) | ||||||||||||||
Debt redemption costs | - | (1 | ) | - | (2 | ) | (3 | ) | ||||||||||||||
Generating plant charges | (87 | ) | (247 | ) | (334 | ) | ||||||||||||||||
Subtotal | (488 | ) | (260 | ) | (6 | ) | (73 | ) | (827 | ) | ||||||||||||
Income tax charge (retiree drug subsidy) | - | - | - | (26 | ) | (26 | ) | |||||||||||||||
Income tax effect of pre-tax items | 181 | 96 | 2 | 7 | 286 | |||||||||||||||||
After-Tax Effect | $ | (307 | ) | $ | (164 | ) | $ | (4 | ) | $ | (92 | ) | $ | (567 | ) | |||||||
Competitive
|
Regulated
|
|||||||||||||||||||||
Regulated
|
Energy
|
Independent
|
||||||||||||||||||||
Special Items - Twelve Months Ended Dec. 31, 2010 |
Distribution
|
Services
|
Transmission
|
Other
|
Consolidated
|
|||||||||||||||||
Pre-Tax Items: | ||||||||||||||||||||||
Regulatory charges | $ | (52 | ) | $ | - | $ | - | $ | - | $ | (52 | ) | ||||||||||
Trust securities impairment | - | (32 | ) | - | - | (32 | ) | |||||||||||||||
Merger transaction/integration costs | (41 | ) | (19 | ) | (3 | ) | (2 | ) | (65 | ) | ||||||||||||
Mark-to-market adjustments - | ||||||||||||||||||||||
Pensions/OPEB actuarial assumptions | (78 | ) | (107 | ) | (2 | ) | (3 | ) | (190 | ) | ||||||||||||
Other | - | (30 | ) | - | - | (30 | ) | |||||||||||||||
Non-core asset sales/impairments | (2 | ) | 76 | - | (3 | ) | 71 | |||||||||||||||
Litigation resolution | 7 | - | - | - | 7 | |||||||||||||||||
Generating plant charges | - | (380 | ) | - | - | (380 | ) | |||||||||||||||
Subtotal | (166 | ) | (492 | ) | (5 | ) | (8 | ) | (671 | ) | ||||||||||||
Income tax charge (retiree drug subsidy) | (15 | ) | (1 | ) | - | - | (16 | ) | ||||||||||||||
Income tax effect of pre-tax items | 35 | 140 | 1 | 67 | 243 | |||||||||||||||||
After-Tax Effect | $ | (146 | ) | $ | (353 | ) | $ | (4 | ) | $ | 59 | $ | (444 | ) | ||||||||
Consolidated Report to the Financial Community - 4th Quarter 2011 |
17
|
Special Items | ||||||||||||||||||||
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||
Pre-tax Items - Income Increase (Decrease)
|
||||||||||||||||||||
Regulatory charges (a)
|
$ | (2 | ) | $ | - | $ | (36 | ) | $ | (52 | ) | |||||||||
Trust securities impairment (b)
|
(1 | ) | (11 | ) | (19 | ) | (32 | ) | ||||||||||||
Merger transaction/integration costs (c)
|
(5 | ) | (29 | ) | (184 | ) | (65 | ) | ||||||||||||
Non-core asset sales/impairments (d)
|
523 | 80 | 474 | 71 | ||||||||||||||||
Mark-to-market adjustments -
|
||||||||||||||||||||
Pension/OPEB actuarial assumptions (e)
|
(507 | ) | (190 | ) | (507 | ) | (190 | ) | ||||||||||||
Other (f)
|
23 | - | (14 | ) | (30 | ) | ||||||||||||||
Merger accounting - commodity contracts (g)
|
(51 | ) | - | (167 | ) | - | ||||||||||||||
Litigation resolution (h)
|
- | - | (37 | ) | 7 | |||||||||||||||
Debt redemption costs (i)
|
- | - | (3 | ) | - | |||||||||||||||
Generating plant charges (j)
|
(334 | ) | (84 | ) | (334 | ) | (380 | ) | ||||||||||||
Total-Pretax Items
|
$ | (354 | ) | $ | (234 | ) | $ | (827 | ) | $ | (671 | ) | ||||||||
Income tax charge (retiree drug subsidy)
|
$ | (26 | ) | $ | (3 | ) | $ | (26 | ) | $ | (16 | ) | ||||||||
Basic EPS Effect
|
$ | (0.54 | ) | $ | (0.50 | ) | $ | (1.42 | ) | $ | (1.46 | ) | ||||||||
(a)
|
For YTD 2011, $17 million included in "Amortization of regulatory assets"; $13 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, $176 million Included in "Other operating expenses"; $8 million included in "Fuel". For YTD 2010, included in "Other operating expenses".
|
|||||||||||||||||||
(d)
|
For YTD 2011, $(569) million in "Gain on partial sale of Signal Peak"; $85 million included in "Impairment of long-lived assets"; $8 million included in "Revenues"; and $2 million in "Other operating expenses". For YTD 2010, $7 million included in "Depreciation"; $64 million included in Revenues
|
|||||||||||||||||||
(e)
|
Included in "Other operating expenses".
|
|||||||||||||||||||
(f)
|
For YTD 2011, included in "Other operating expenses". For YTD, 2010 included in "Purchased power"
|
|||||||||||||||||||
(g)
|
For YTD 2011, $49 million included in "Fuel"; $58 million included in Revenues - "Competitive energy services"; $60 million included in "Other operating expenses".
|
|||||||||||||||||||
(h)
|
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.
|
|||||||||||||||||||
(i)
|
Included in "Interest expense".
|
|||||||||||||||||||
(j)
|
Included in "Impairment of long-lived assets".
|
|||||||||||||||||||
Basic Earnings Per Share (EPS)
|
||||||||||||||||||||||||
(Reconciliation of GAAP to Non-GAAP)
|
||||||||||||||||||||||||
Three Months Ended Dec. 31
|
Twelve Months Ended Dec. 31
|
Estimated
|
||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2012
|
2013
|
|||||||||||||||||||
Basic EPS (GAAP basis) | $ | 0.23 | $ | 0.27 | $ | 2.22 | $ | 2.44 | $ | 2.87 - $3.17 | $ | 2.92 - $3.22 | ||||||||||||
Excluding Special Items:
|
||||||||||||||||||||||||
Regulatory charges
|
- | - | 0.05 | 0.11 | 0.04 | 0.05 | ||||||||||||||||||
Trust securities impairment
|
- | 0.02 | 0.03 | 0.07 | - | - | ||||||||||||||||||
Income tax charge - retiree drug subsidy
|
0.06 | - | 0.07 | 0.04 | 0.08 | - | ||||||||||||||||||
Merger transaction/integration costs
|
0.01 | 0.07 | 0.41 | 0.15 | 0.01 | - | ||||||||||||||||||
Impact of non-core asset sales/impairments
|
(0.81 | ) | (0.16 | ) | (0.78 | ) | (0.14 | ) | 0.03 | 0.03 | ||||||||||||||
Mark-to-market adjustments --
|
||||||||||||||||||||||||
Pension/OPEB actuarial assumptions
|
0.74 | 0.40 | 0.78 | 0.40 | - | - | ||||||||||||||||||
Other
|
(0.03 | ) | - | 0.02 | 0.06 | - | - | |||||||||||||||||
Merger accounting - commodity contracts
|
0.08 | - | 0.26 | - | 0.15 | 0.10 | ||||||||||||||||||
Litigation resolution
|
- | - | 0.06 | (0.01 | ) | - | - | |||||||||||||||||
Plant closing costs
|
- | - | - | - | 0.12 | - | ||||||||||||||||||
Generating plant charges
|
0.49 | 0.17 | 0.52 | 0.78 | - | - | ||||||||||||||||||
Basic EPS (Non-GAAP basis)
|
$ | 0.77 | $ | 0.77 | $ | 3.64 | $ | 3.90 | $ | 3.30 - $3.60 | $ | 3.10 - $3.40 | ||||||||||||
Consolidated Report to the Financial Community - 4th Quarter 2011 |
18
|
Liquidity position as of January 31, 2012
|
|||||||
|
|
||||||
(in millions)
|
|||||||
Company | Type | Maturity | Commitment | Available | |||
FirstEnergy(1)
|
Revolving
|
June 2016
|
$2,000
|
$1,395
|
|||
FES/AE Supply
|
Revolving
|
June 2016
|
2,500
|
2,498
|
|||
TrAIL
|
Revolving
|
Jan. 2013
|
450
|
450
|
|||
AGC
|
Revolving
|
Dec. 2013
|
50
|
0
|
|||
(1) FirstEnergy Corp. and subsidiary borrowers
|
Subtotal:
|
5,000
|
4,343
|
||||
Cash:
|
-
|
49
|
|||||
Total:
|
$5,000
|
$4,392
|
|||||
Consolidated Report to the Financial Community - 4th Quarter 2011 |
19
|
Consolidated Report to the Financial Community - 4th Quarter 2011 |
20
|
Consolidated Report to the Financial Community - 4th Quarter 2011 |
21
|
Consolidated Report to the Financial Community - 4th Quarter 2011 |
22
|