SUPPLEMENTAL GUARANTOR INFORMATION

In 2007, FG completed a sale and leaseback transaction for its undivided interest in Bruce Mansfield Unit 1. FES has fully, and unconditionally and irrevocably guaranteed all of FG's obligations under each of the leases. The related lessor notes and pass through certificates are not guaranteed by FES or FG, but the notes are secured by, among other things, each lessor trust's undivided interest in Unit 1, rights and interests under the applicable lease and rights and interests under other related agreements, including FES' lease guaranty. This transaction is classified as an operating lease under GAAP for FES and FirstEnergy and as a financing lease for FG.

The Consolidating Statements of Income and Comprehensive Income for the three months ended March 31, 2013 and 2012, Consolidating Balance Sheets as of March 31, 2013 and December 31, 2012, and Consolidating Statements of Cash Flows for the three months ended March 31, 2013 and 2012, for FES (parent and guarantor), FG and NG (non-guarantor) are presented below. Investments in wholly owned subsidiaries are accounted for by FES using the equity method. Results of operations for FG and NG are, therefore, reflected in FES’ investment accounts and earnings as if operating lease treatment was achieved. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions and the entries required to reflect operating lease treatment associated with the 2007 Bruce Mansfield Unit 1 sale and leaseback transaction.

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)



For the Three Months Ended March 31, 2013	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME

REVENUES	$	1,496		$	537		$	440		$	(943	)	$	1,530
OPERATING EXPENSES:
Fuel	—			247			53			—			300
Purchased power from affiliates	1,013			—			62			(943		)	132
Purchased power from non-affiliates	505			—			—			—			505
Other operating expenses	162			75			131			12			380
Provision for depreciation	1			32			44			(1		)	76
General taxes	20			11			6			—			37
Total operating expenses	1,701			365			296			(932		)	1,430

OPERATING INCOME (LOSS)	(205		)	172			144			(11		)	100

OTHER INCOME (EXPENSE):
Loss on debt redemptions	(73		)	—			—			—			(73		)
Investment income	1			—			18			(2		)	17
Miscellaneous income, including net income from equity investees	192			1			—			(191		)	2
Interest expense — affiliates	(2		)	(1		)	(1		)	3			(1		)
Interest expense — other	(23		)	(28		)	(15		)	16			(50		)
Capitalized interest	—			—			9			—			9
Total other income (expense)	95			(28		)	11			(174		)	(96		)

INCOME (LOSS) BEFORE INCOME TAXES	(110		)	144			155			(185		)	4

INCOME TAXES (BENEFITS)	(112		)	53			58			3			2

NET INCOME	$	2		$	91		$	97		$	(188	)	$	2

STATEMENTS OF COMPREHENSIVE INCOME

NET INCOME	$	2		$	91		$	97		$	(188	)	$	2

OTHER COMPREHENSIVE INCOME (LOSS):
Pensions and OPEB prior service costs	(6		)	(5		)	—			5			(6		)
Amortized loss on derivative hedges	(1		)	—			—			—			(1		)
Change in unrealized gain on available-for-sale securities	5			—			5			(5		)	5
Other comprehensive income (loss)	(2		)	(5		)	5			—			(2		)
Income taxes (benefits) on other comprehensive income (loss)	(1		)	(2		)	2			—			(1		)
Other comprehensive income (loss), net of tax	(1		)	(3		)	3			—			(1		)
COMPREHENSIVE INCOME	$	1		$	88		$	100		$	(188	)	$	1

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)



For the Three Months Ended March 31, 2012	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME

REVENUES	$	1,490		$	542		$	394		$	(910	)	$	1,516
OPERATING EXPENSES:
Fuel	—			240			55			—			295
Purchased power from affiliates	965			—			62			(910		)	117
Purchased power from non-affiliates	487			—			—			—			487
Other operating expenses	76			92			116			11			295
Provision for depreciation	1			30			34			(2		)	63
General taxes	20			10			7			—			37
Total operating expenses	1,549			372			274			(901		)	1,294

OPERATING INCOME (LOSS)	(59		)	170			120			(9		)	222

OTHER INCOME (EXPENSE):
Investment income	1			4			5			(4		)	6
Miscellaneous income, including net income from equity investees	258			—			—			(254		)	4
Interest expense — affiliates	(4		)	(1		)	(1		)	4			(2		)
Interest expense — other	(23		)	(26		)	(7		)	15			(41		)
Capitalized interest	—			1			8			—			9
Total other income (expense)	232			(22		)	5			(239		)	(24		)

INCOME BEFORE INCOME TAXES	173			148			125			(248		)	198

INCOME TAXES (BENEFITS)	51			(1		)	23			3			76

NET INCOME	$	122		$	149		$	102		$	(251	)	$	122

STATEMENTS OF COMPREHENSIVE INCOME

NET INCOME	$	122		$	149		$	102		$	(251	)	$	122

OTHER COMPREHENSIVE INCOME (LOSS)
Pensions and OPEB prior service costs	(5		)	(4		)	—			4			(5		)
Amortized loss on derivative hedges	(5		)	—			—			—			(5		)
Change in unrealized gain on available for sale securities	10			—			10			(10		)	10
Other comprehensive income (loss)	—			(4		)	10			(6		)	—
Income taxes (benefits) on other comprehensive income (loss)	2			(2		)	4			(2		)	2
Other comprehensive income (loss), net of tax	(2		)	(2		)	6			(4		)	(2		)
COMPREHENSIVE INCOME	$	120		$	147		$	108		$	(255	)	$	120

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)



As of March 31, 2013	FES		FG		NG		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	3	$	—	$	—		$	3
Receivables-
Customers	489		—		—		—			489
Affiliated companies	434		417		279		(634		)	496
Other	56		25		64		—			145
Notes receivable from affiliated companies	292		—		1,115		(1,407		)	—
Materials and supplies	62		205		210		—			477
Derivatives	183		—		—		—			183
Prepayments and other	46		50		10		—			106
	1,562		700		1,678		(2,041		)	1,899
PROPERTY, PLANT AND EQUIPMENT:
In service	114		6,193		6,412		(383		)	12,336
Less — Accumulated provision for depreciation	33		1,933		2,727		(185		)	4,508
	81		4,260		3,685		(198		)	7,828
Construction work in progress	16		116		957		—			1,089
	97		4,376		4,642		(198		)	8,917
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,306		—			1,306
Investment in affiliated companies	5,171		—		—		(5,171		)	—
Other	—		13		—		—			13
	5,171		13		1,306		(5,171		)	1,319
DEFERRED CHARGES AND OTHER ASSETS:
Accumulated deferred income tax benefits	—		265		—		(265		)	—
Customer intangibles	107		—		—		—			107
Goodwill	24		—		—		—			24
Property taxes	—		14		22		—			36
Unamortized sale and leaseback costs	—		—		—		147			147
Derivatives	87		—		—		—			87
Other	151		189		4		(106		)	238
	369		468		26		(224		)	639
	$	7,199	$	5,557	$	7,652	$	(7,634	)	$	12,774

LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	401	$	600	$	537	$	(22	)	$	1,516
Short-term borrowings-
Affiliated companies	1,253		270		586		(1,407		)	702
Other	—		4		—		—			4
Accounts payable-
Affiliated companies	632		273		224		(634		)	495
Other	104		95		—		—			199
Accrued taxes	31		19		24		(6		)	68
Derivatives	125		—		—		—			125
Other	41		64		24		79			208
	2,587		1,325		1,395		(1,990		)	3,317
CAPITALIZATION:
Total equity	3,772		1,884		3,266		(5,150		)	3,772
Long-term debt and other long-term obligations	713		1,887		834		(1,208		)	2,226
	4,485		3,771		4,100		(6,358		)	5,998
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		883			883
Accumulated deferred income taxes	18		—		744		(171		)	591
Asset retirement obligations	—		170		951		—			1,121
Retirement benefits	26		219		—		—			245
Derivatives	53		—		—		—			53
Other	30		72		462		2			566
	127		461		2,157		714			3,459
	$	7,199	$	5,557	$	7,652	$	(7,634	)	$	12,774

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)



As of December 31, 2012	FES		FG		NG		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	3	$	—	$	—		$	3
Receivables-
Customers	483		—		—		—			483
Affiliated companies	232		417		478		(748		)	379
Other	56		19		16		—			91
Notes receivable from affiliated companies	366		7		607		(704		)	276
Materials and supplies	66		231		208		—			505
Derivatives	158		—		—		—			158
Prepayments and other	38		39		10		—			87
	1,399		716		1,319		(1,452		)	1,982
PROPERTY, PLANT AND EQUIPMENT:
In service	91		5,899		6,391		(384		)	11,997
Less — Accumulated provision for depreciation	32		1,915		2,646		(185		)	4,408
	59		3,984		3,745		(199		)	7,589
Construction work in progress	34		230		877		—			1,141
	93		4,214		4,622		(199		)	8,730
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,283		—			1,283
Investment in affiliated companies	4,972		—		—		(4,972		)	—
Other	—		12		—		—			12
	4,972		12		1,283		(4,972		)	1,295
DEFERRED CHARGES AND OTHER ASSETS:
Accumulated deferred income tax benefits	—		313		—		(313		)	—
Customer intangibles	110		—		—		—			110
Goodwill	24		—		—		—			24
Property taxes	—		14		22		—			36
Unamortized sale and leaseback costs	—		—		—		119			119
Derivatives	99		—		—		—			99
Other	160		194		5		(106		)	253
	393		521		27		(300		)	641
	$	6,857	$	5,463	$	7,251	$	(6,923	)	$	12,648

LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	1	$	586	$	537	$	(22	)	$	1,102
Short-term borrowings-
Affiliated companies	358		346		—		(704		)	—
Other	—		4		—		—			4
Accounts payable-
Affiliated companies	748		143		583		(748		)	726
Other	63		96		—		—			159
Accrued taxes	126		25		20		—			171
Derivatives	124		—		—		—			124
Other	71		148		15		46			280
	1,491		1,348		1,155		(1,428		)	2,566
CAPITALIZATION:
Total equity	3,763		1,787		3,165		(4,952		)	3,763
Long-term debt and other long-term obligations	1,482		2,009		834		(1,207		)	3,118
	5,245		3,796		3,999		(6,159		)	6,881
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		892			892
Accumulated deferred income taxes	28		—		714		(227		)	515
Asset retirement obligations	—		29		936		—			965
Retirement benefits	26		215		—		—			241
Derivatives	37		—		—		—			37
Other	30		75		447		(1		)	551
	121		319		2,097		664			3,201
	$	6,857	$	5,463	$	7,251	$	(6,923	)	$	12,648

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)



For the Three Months Ended March 31, 2013	FES			FG			NG			Eliminations			Consolidated
	(In millions)

NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(529	)	$	298		$	36		$	—		$	(195	)
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Short-term borrowings, net	894			—			586			(778		)	702
Redemptions and Repayments-
Long-term debt	(436		)	(107		)	—			—			(543		)
Short-term borrowings, net	—			(76		)	—			76			—
Other	—			(1		)	—			—			(1		)
Net cash provided from (used for) financing activities	458			(184		)	586			(702		)	158
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(5		)	(138		)	(74		)	—			(217		)
Nuclear fuel	—			—			(27		)	—			(27		)
Proceeds from asset sales	—			17			—			—			17
Sales of investment securities held in trusts	—			—			252			—			252
Purchases of investment securities held in trusts	—			—			(265		)	—			(265		)
Loans to affiliated companies, net	75			7			(508		)	702			276
Other	1			—			—			—			1
Net cash provided from (used for) investing activities	71			(114		)	(622		)	702			37
Net change in cash and cash equivalents	—			—			—			—			—
Cash and cash equivalents at beginning of period	—			3			—			—			3
Cash and cash equivalents at end of period	$	—		$	3		$	—		$	—		$	3

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)



For the Three Months Ended March 31, 2012	FES			FG			NG			Eliminations			Consolidated
	(In millions)

NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(419	)	$	66		$	175		$	—		$	(178	)
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Short-term borrowings, net	347			—			—			(347		)	—
Redemptions and Repayments-
Short-term borrowings, net	—			(20		)	(32		)	52			—
Other	—			(2		)	(1		)	—			(3		)
Net cash provided from (used for) financing activities	347			(22		)	(33		)	(295		)	(3		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(2		)	(18		)	(89		)	—			(109		)
Nuclear fuel	—			—			(72		)	—			(72		)
Sales of investment securities held in trusts	—			—			83			—			83
Purchases of investment securities held in trusts	—			—			(90		)	—			(90		)
Loans to affiliated companies, net	74			(23		)	25			295			371
Other	—			(3		)	1			—			(2		)
Net cash provided from (used for) investing activities	72			(44		)	(142		)	295			181
Net change in cash and cash equivalents	—			—			—			—			—
Cash and cash equivalents at beginning of period	—			7			—			—			7
Cash and cash equivalents at end of period	$	—		$	7		$	—		$	—		$	7