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 August 6, 2013 | |
99.2 | Consolidated Report to the Financial Community, dated August 6, 2013 |
FIRSTENERGY CORP. | |
Registrant | |
By: | /s/ K. Jon Taylor |
K. Jon Taylor Vice President, Controller and Chief Accounting Officer |
Exhibit No. | Description | |
99.1 | Press Release issued by FirstEnergy Corp., dated August 6, 2013 | |
99.2 | Consolidated Report to the Financial Community, dated August 6, 2013 |
GAAP to Non-GAAP* Reconciliation | ||||||||||
Second Quarter | Year-to-Date | Full Year | ||||||||
2013 | 2012 | 2013 | 2012 | 2013 | ||||||
Basic Earnings Per Share (GAAP) | $(0.39) | $0.45 | $0.08 | $1.18 | $1.39 - $1.69 | |||||
Excluding Special Items: | ||||||||||
Mark-To-Market Adjustments | — | 0.02 | — | (0.04) | — | |||||
Regulatory Charges | 0.02 | 0.01 | 0.07 | 0.03 | 0.11 | |||||
Trust Securities Impairment | 0.05 | 0.01 | 0.06 | 0.01 | 0.06 | |||||
Income Tax - Legislative Changes | — | 0.02 | — | 0.04 | — | |||||
Merger Transaction/Integration Costs | — | — | — | 0.01 | — | |||||
Impact of Non-Core Asset Sales/Impairments | — | (0.01) | 0.01 | (0.01) | 0.02 | |||||
Plant Deactivation Costs | 0.85 | 0.07 | 0.86 | 0.13 | 0.96 | |||||
Restructuring Costs | — | — | — | — | 0.01 | |||||
Merger Accounting - Commodity Contracts | 0.02 | 0.03 | 0.05 | 0.07 | 0.08 | |||||
Debt Redemption Costs | 0.04 | — | 0.22 | — | 0.22 | |||||
Basic Earnings Per Share (Non-GAAP*) | $0.59 | $0.60 | $1.35 | $1.42 | $2.85 - $3.15 |
HIGHLIGHTS | After-Tax EPS Variance Analysis | 2nd Qtr. | |||
2Q 2012 Basic EPS - GAAP | $0.45 | ||||
• Normalized non-GAAP* earnings, excluding special items, were $0.59 per basic share for the second quarter of 2013, compared with second quarter 2012 normalized non-GAAP earnings of $0.60 per basic share. GAAP results for the second quarter of 2013 were losses of $0.39 per basic share, compared with second quarter 2012 earnings of $0.45 per basic share. | Special Items - 2012 | 0.15 | |||
2Q 2012 Normalized Basic EPS - Non-GAAP* | $0.60 | ||||
Distribution Deliveries | 0.02 | ||||
CES Commodity Margin | (0.03) | ||||
O&M Expenses | 0.06 | ||||
Depreciation | (0.03) | ||||
General Taxes | (0.02) | ||||
Effective Income Tax Rate | (0.02) | ||||
Other | 0.01 | ||||
2Q 2013 Normalized Basic EPS - Non-GAAP* | $0.59 | ||||
Special Items - 2013 | (0.98) | ||||
2Q 2013 Basic EPS - GAAP | $(0.39) | ||||
• | Distribution Deliveries - Total electric distribution deliveries decreased by 325,000 MWH, or 1%. Sales to commercial and industrial customers decreased by 323,000 MWH, or 3%, and 289,000 MWH, or 2%, respectively. Sales to residential customers increased by 296,000 MWH, or 3%. Distribution deliveries increased earnings by $0.02 per share resulting from higher residential sales as commercial and industrial customers' base revenues are derived principally on a peak demand basis. Heating-degree-days were 15% higher than the same period last year, but 5% below normal, while cooling-degree-days were 13% below the same period last year, but 12% above normal. |
• | Competitive Energy Services (CES) EPS Summary** |
Commodity Margin EPS - 2Q13 vs 2Q12 | Rate | Volume | Total | |||||||||||
(a) Contract Sales | ||||||||||||||
- Direct Sales (LCI & MCI) | $ | (0.06 | ) | $ | 0.02 | $ | (0.04 | ) | ||||||
- Governmental Aggregation Sales | (0.02 | ) | 0.09 | 0.07 | ||||||||||
- Mass Market Sales | (0.01 | ) | 0.04 | 0.03 | ||||||||||
- POLR Sales | (0.01 | ) | (0.07 | ) | (0.08 | ) | ||||||||
- Structured Sales | 0.06 | 0.06 | ||||||||||||
Subtotal - Contract Sales | $ | (0.10 | ) | $ | 0.14 | $ | 0.04 | |||||||
(b) Wholesale Sales | 0.01 | 0.01 | ||||||||||||
(c) PJM Capacity, FRR Auction Revenues | (0.12 | ) | 0.01 | (0.11 | ) | |||||||||
(d) Fuel Expense | 0.07 | (0.04 | ) | 0.03 | ||||||||||
(e) Purchased Power | (0.04 | ) | (0.05 | ) | (0.09 | ) | ||||||||
(f) Capacity Expense | 0.13 | (0.02 | ) | 0.11 | ||||||||||
(g) Net Financial Sales and Purchases | 0.02 | 0.02 | ||||||||||||
(h) Net MISO - PJM Transmission Cost | (0.01 | ) | (0.03 | ) | (0.04 | ) | ||||||||
Net Increase / (Decrease) | $ | (0.04 | ) | $ | 0.01 | $ | (0.03 | ) | ||||||
(a) | Contract Sales - CES' contract sales increased by 1.8 million MWH, or 7%, and increased earnings by $0.04 per share. The total number of retail customers was 2.7 million as of June 30, 2013, an increase of approximately 700,000 customers, or 38%, since June 30, 2012. |
• | Governmental aggregation sales increased by 1.1 million MWH, or 31%, primarily due to continued expansion in Illinois. |
• | Structured sales increased 1.0 million MWH, or 96%, due to increased municipal, cooperative, and bilateral sales. |
• | Mass market sales increased by 385,000 MWH, or 35%, primarily in Pennsylvania and Ohio. |
• | Direct sales to large and medium commercial/industrial customers increased by 71,000 MWH, or 1%. |
• | In line with CES' strategy to realign its sales portfolio, POLR generation sales decreased by 844,000 MWH, or 20%. |
CES Contract Sales - 2Q13 vs 2Q12 | ||||||||||||||
(thousand MWH) | Retail | Non-Retail | ||||||||||||
Direct | Aggr. | Mass Market | POLR | Structured | Total | |||||||||
Contract Sales Increase / (Decrease) | 71 | 1,138 | 385 | (844) | 1,006 | 1,756 | ||||||||
Planning Period | RTO | ATSI | |||||
Price Per Megawatt-Day | BR | FRR | |||||
June 2011 - May 2012 | $110.00 | $108.89 | |||||
June 2012 - May 2013 | $16.46 | $20.46 | |||||
June 2013 - May 2014 | $27.73 | N/A | |||||
(d) | Fuel Expense - Lower fuel expenses increased earnings by $0.03 per share. Lower average fuel costs for fossil generation in the second quarter of 2013 compared to the same period last year more than offset an 870,000 MWH increase in total ongoing generation output. Ongoing fossil generation output increased by 965,000 MWH resulting from increased capacity factors across the fleet, while nuclear generation output decreased by 95,000 MWH. In the second quarter of 2013, the nuclear fleet experienced a total of 66 outage days (a 47-day refueling outage at Perry and 19 forced outage days for the three plants) compared to 70 outage days in the second quarter of 2012 (Davis-Besse and Beaver Valley Unit 1 had refueling outages of 38 days and 32 days, respectively).** |
• | O&M Expenses - Lower O&M expenses increased earnings by $0.06 per share due to: |
(a) | Lower Regulated Distribution expenses increased earnings by $0.02 per share, due to a greater focus on capital work during the second quarter of 2013 and previously implemented cost savings initiatives, including staffing reductions and benefit plan changes. |
(b) | Lower lease costs resulting from the repurchase of leasehold interests in Beaver Valley Unit 2 and the Bruce Mansfield Plant in 2012 increased earnings by $0.01 per share. |
(c) | Lower CES O&M expenses increased earnings by $0.03 per share, primarily as a result of only one nuclear refueling outage in the second quarter of 2013 compared to two nuclear outages in the same period last year.** |
• | Depreciation - Higher depreciation expense reduced earnings by $0.03 per share due to an increased asset base. |
• | General Taxes - Higher general taxes decreased earnings by $0.02 per share, primarily due to higher property taxes.** |
• | Effective Income Tax Rate - A higher effective income tax rate (39.2% in Q2 2013 vs 37.7% in Q2 2012) decreased earnings by $0.02 per share, principally due to a greater proportion of earnings in jurisdictions with higher tax rates. |
• | Special Items - The following special items were recognized during the second quarter of 2013: |
Special Items | EPS | ||||||
Plant deactivation costs | $ | 0.85 | |||||
Trust securities impairment | 0.05 | ||||||
Debt redemption costs | 0.04 | ||||||
Regulatory charges | 0.02 | ||||||
Merger accounting - commodity contracts | 0.02 | ||||||
Total | $ | 0.98 | |||||
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 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
(1 | ) | Regulated distribution | $ | 2,041 | $ | 2,139 | $ | (98 | ) | $ | 4,253 | $ | 4,493 | $ | (240 | ) | |||||||||||||
(2 | ) | Regulated transmission | 180 | 184 | (4 | ) | 356 | 370 | (14 | ) | |||||||||||||||||||
(3 | ) | Competitive energy services | 1,553 | 1,710 | (157 | ) | 3,183 | 3,497 | (314 | ) | |||||||||||||||||||
(4 | ) | Other and reconciling adjustments | (255 | ) | (278 | ) | 23 | (544 | ) | (615 | ) | 71 | |||||||||||||||||
(5 | ) | Total Revenues | 3,519 | 3,755 | (236 | ) | 7,248 | 7,745 | (497 | ) | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
(6 | ) | Fuel | 628 | 656 | (28 | ) | 1,258 | 1,197 | 61 | ||||||||||||||||||||
(7 | ) | Purchased power | 862 | 1,042 | (180 | ) | 1,805 | 2,301 | (496 | ) | |||||||||||||||||||
(8 | ) | Other operating expenses | 887 | 921 | (34 | ) | 1,771 | 1,739 | 32 | ||||||||||||||||||||
(9 | ) | Provision for depreciation | 302 | 285 | 17 | 596 | 564 | 32 | |||||||||||||||||||||
(10 | ) | Amortization of regulatory assets, net | 72 | 62 | 10 | 131 | 137 | (6 | ) | ||||||||||||||||||||
(11 | ) | General taxes | 241 | 232 | 9 | 506 | 504 | 2 | |||||||||||||||||||||
(12 | ) | Impairment of long lived assets | 473 | — | 473 | 473 | — | 473 | |||||||||||||||||||||
(13 | ) | Total Expenses | 3,465 | 3,198 | 267 | 6,540 | 6,442 | 98 | |||||||||||||||||||||
(14 | ) | Operating Income | 54 | 557 | (503 | ) | 708 | 1,303 | (595 | ) | |||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||||||
(15 | ) | Loss on debt redemptions | (24 | ) | — | (24 | ) | (141 | ) | — | (141 | ) | |||||||||||||||||
(16 | ) | Investment income | (15 | ) | 13 | (28 | ) | 3 | 24 | (21 | ) | ||||||||||||||||||
(17 | ) | Interest expense | (256 | ) | (274 | ) | 18 | (514 | ) | (520 | ) | 6 | |||||||||||||||||
(18 | ) | Capitalized interest | 19 | 19 | — | 34 | 36 | (2 | ) | ||||||||||||||||||||
(19 | ) | Total Other Expense | (276 | ) | (242 | ) | (34 | ) | (618 | ) | (460 | ) | (158 | ) | |||||||||||||||
(20 | ) | Income (Loss) Before Income Taxes | (222 | ) | 315 | (537 | ) | 90 | 843 | (753 | ) | ||||||||||||||||||
(21 | ) | Income taxes (benefits) | (58 | ) | 127 | (185 | ) | 58 | 349 | (291 | ) | ||||||||||||||||||
(22 | ) | Net Income (Loss) | (164 | ) | 188 | (352 | ) | 32 | 494 | (462 | ) | ||||||||||||||||||
(23 | ) | Income attributable to noncontrolling interest | — | 1 | (1 | ) | — | 1 | (1 | ) | |||||||||||||||||||
(24 | ) | Earnings (Losses) Available to FirstEnergy Corp. | $ | (164 | ) | $ | 187 | $ | (351 | ) | $ | 32 | $ | 493 | $ | (461 | ) | ||||||||||||
(25 | ) | Earnings (Losses) Per Share of Common Stock | |||||||||||||||||||||||||||
(26 | ) | Basic | $ | (0.39 | ) | $ | 0.45 | $ | (0.84 | ) | $ | 0.08 | $ | 1.18 | $ | (1.10 | ) | ||||||||||||
(27 | ) | Diluted | $ | (0.39 | ) | $ | 0.45 | $ | (0.84 | ) | $ | 0.08 | $ | 1.18 | $ | (1.10 | ) | ||||||||||||
(28 | ) | Weighted Average Number of | |||||||||||||||||||||||||||
(29 | ) | Common Shares Outstanding | |||||||||||||||||||||||||||
(30 | ) | Basic | 418 | 417 | 1 | 418 | 418 | — | |||||||||||||||||||||
(31 | ) | Diluted | 418 | 419 | (1 | ) | 419 | 419 | — | ||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||
Competitive | Other & | ||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | |||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
(1 | ) | Electric sales | $ | 1,977 | $ | 180 | $ | 1,331 | $ | (42 | ) | $ | 3,446 | ||||||||||
(2 | ) | Other | 64 | — | 46 | (37 | ) | 73 | |||||||||||||||
(3 | ) | Internal | — | — | 176 | (176 | ) | — | |||||||||||||||
(4 | ) | Total Revenues | 2,041 | 180 | 1,553 | (255 | ) | 3,519 | |||||||||||||||
Expenses | |||||||||||||||||||||||
(5 | ) | Fuel | 75 | — | 553 | — | 628 | ||||||||||||||||
(6 | ) | Purchased power | 762 | — | 276 | (176 | ) | 862 | |||||||||||||||
(7 | ) | Other operating expenses | 402 | 33 | 534 | (82 | ) | 887 | |||||||||||||||
(8 | ) | Provision for depreciation | 151 | 28 | 114 | 9 | 302 | ||||||||||||||||
(9 | ) | Amortization of regulatory assets, net | 69 | 3 | — | — | 72 | ||||||||||||||||
(10 | ) | General taxes | 172 | 14 | 50 | 5 | 241 | ||||||||||||||||
(11 | ) | Impairment of long-lived assets | — | — | 473 | — | 473 | ||||||||||||||||
(12 | ) | Total Expenses | 1,631 | 78 | 2,000 | (244 | ) | 3,465 | |||||||||||||||
(13 | ) | Operating Income (Loss) | 410 | 102 | (447 | ) | (11 | ) | 54 | ||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
(14 | ) | Gain (loss) on debt redemptions | — | — | (32 | ) | 8 | (24 | ) | ||||||||||||||
(15 | ) | Investment income (loss) | 9 | — | (17 | ) | (7 | ) | (15 | ) | |||||||||||||
(16 | ) | Interest expense | (135 | ) | (22 | ) | (61 | ) | (38 | ) | (256 | ) | |||||||||||
(17 | ) | Capitalized interest | 3 | 1 | 11 | 4 | 19 | ||||||||||||||||
(18 | ) | Total Other Expense | (123 | ) | (21 | ) | (99 | ) | (33 | ) | (276 | ) | |||||||||||
(19 | ) | Income (Loss) Before Income Taxes | 287 | 81 | (546 | ) | (44 | ) | (222 | ) | |||||||||||||
(20 | ) | Income taxes (benefits) | 108 | 30 | (207 | ) | 11 | (58 | ) | ||||||||||||||
(21 | ) | Net Income (Loss) | $ | 179 | $ | 51 | $ | (339 | ) | $ | (55 | ) | $ | (164 | ) | ||||||||
(a) | Revenues are primarily derived from the delivery of electricity within FirstEnergy Corp.'s (FirstEnergy) 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 non-affiliated power suppliers and the deferral and amortization of certain fuel costs. | ||||||||||||||||||||||
(b) | Revenues are derived from rates charged to load serving entities and other transmission users that recover costs and provide a return on transmission capital investment owned and operated by certain of FirstEnergy's utilities and transmission companies. Its results reflect the net transmission expenses related to the delivery of the respective generation loads. | ||||||||||||||||||||||
(c) | Revenues are primarily derived from supplying electric power to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey, and the provision of partial POLR and default service for affiliated and non-affiliated utilities in Ohio, Pennsylvania and Maryland. | ||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions. | ||||||||||||||||||||||
Three Months Ended June 30, 2012 | ||||||||||||||||||||||||
Competitive | Other & | |||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | ||||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
(1 | ) | Electric sales | $ | 2,088 | $ | 184 | $ | 1,454 | $ | (59 | ) | $ | 3,667 | |||||||||||
(2 | ) | Other | 51 | — | 47 | (10 | ) | 88 | ||||||||||||||||
(3 | ) | Internal | — | — | 209 | (209 | ) | — | ||||||||||||||||
(4 | ) | Total Revenues | 2,139 | 184 | 1,710 | (278 | ) | 3,755 | ||||||||||||||||
Expenses | ||||||||||||||||||||||||
(5 | ) | Fuel | 58 | — | 598 | — | 656 | |||||||||||||||||
(6 | ) | Purchased power | 895 | — | 355 | (208 | ) | 1,042 | ||||||||||||||||
(7 | ) | Other operating expenses | 446 | 41 | 513 | (79 | ) | 921 | ||||||||||||||||
(8 | ) | Provision for depreciation | 145 | 29 | 103 | 8 | 285 | |||||||||||||||||
(9 | ) | Amortization of regulatory assets, net | 63 | — | — | (1 | ) | 62 | ||||||||||||||||
(10 | ) | General taxes | 166 | 9 | 49 | 8 | 232 | |||||||||||||||||
(11 | ) | Total Expenses | 1,773 | 79 | 1,618 | (272 | ) | 3,198 | ||||||||||||||||
(12 | ) | Operating Income | 366 | 105 | 92 | (6 | ) | 557 | ||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
(13 | ) | Investment income | 19 | 1 | 6 | (13 | ) | 13 | ||||||||||||||||
(14 | ) | Interest expense | (135 | ) | (23 | ) | (71 | ) | (45 | ) | (274 | ) | ||||||||||||
(15 | ) | Capitalized interest | 2 | 1 | 12 | 4 | 19 | |||||||||||||||||
(16 | ) | Total Other Expense | (114 | ) | (21 | ) | (53 | ) | (54 | ) | (242 | ) | ||||||||||||
(17 | ) | Income Before Income Taxes | 252 | 84 | 39 | (60 | ) | 315 | ||||||||||||||||
(18 | ) | Income taxes | 94 | 30 | 14 | (11 | ) | 127 | ||||||||||||||||
(19 | ) | Net Income | 158 | 54 | 25 | (49 | ) | 188 | ||||||||||||||||
(20 | ) | Income attributable to noncontrolling interest | — | — | — | 1 | 1 | |||||||||||||||||
(21 | ) | Earnings Available to FirstEnergy Corp. | $ | 158 | $ | 54 | $ | 25 | $ | (50 | ) | $ | 187 | |||||||||||
(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 non-affiliated power suppliers and the deferral and amortization of certain fuel costs. | |||||||||||||||||||||||
(b) | Revenues are derived from rates charged to load serving entities and other transmission users that recover costs and provide a return on transmission capital investment owned and operated by certain of FirstEnergy's utilities and transmission companies. Its results reflect the net transmission expenses related to the delivery of the respective generation loads. | |||||||||||||||||||||||
(c) | Revenues are primarily derived from supplying electric power to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey, and the provision of partial POLR and default service for affiliated and non-affiliated utilities in Ohio, Pennsylvania and Maryland. | |||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions. | |||||||||||||||||||||||
Three Months Ended June 30, 2013 vs. Three Months Ended June 30, 2012 | ||||||||||||||||||||||||
Competitive | Other & | |||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | ||||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
(1 | ) | Electric sales | $ | (111 | ) | $ | (4 | ) | $ | (123 | ) | $ | 17 | $ | (221 | ) | ||||||||
(2 | ) | Other | 13 | — | (1 | ) | (27 | ) | (15 | ) | ||||||||||||||
(3 | ) | Internal revenues | — | — | (33 | ) | 33 | — | ||||||||||||||||
(4 | ) | Total Revenues | (98 | ) | (4 | ) | (157 | ) | 23 | (236 | ) | |||||||||||||
Expenses | ||||||||||||||||||||||||
(5 | ) | Fuel | 17 | — | (45 | ) | — | (28 | ) | |||||||||||||||
(6 | ) | Purchased power | (133 | ) | — | (79 | ) | 32 | (180 | ) | ||||||||||||||
(7 | ) | Other operating expenses | (44 | ) | (8 | ) | 21 | (3 | ) | (34 | ) | |||||||||||||
(8 | ) | Provision for depreciation | 6 | (1 | ) | 11 | 1 | 17 | ||||||||||||||||
(9 | ) | Amortization of regulatory assets, net | 6 | 3 | — | 1 | 10 | |||||||||||||||||
(10 | ) | General taxes | 6 | 5 | 1 | (3 | ) | 9 | ||||||||||||||||
(11 | ) | Impairment of long-lived assets | — | — | 473 | — | 473 | |||||||||||||||||
(12 | ) | Total Expenses | (142 | ) | (1 | ) | 382 | 28 | 267 | |||||||||||||||
(13 | ) | Operating Income (Loss) | 44 | (3 | ) | (539 | ) | (5 | ) | (503 | ) | |||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
(14 | ) | Loss on debt redemptions | — | — | (32 | ) | 8 | (24 | ) | |||||||||||||||
(15 | ) | Investment income | (10 | ) | (1 | ) | (23 | ) | 6 | (28 | ) | |||||||||||||
(16 | ) | Interest expense | — | 1 | 10 | 7 | 18 | |||||||||||||||||
(17 | ) | Capitalized interest | 1 | — | (1 | ) | — | — | ||||||||||||||||
(18 | ) | Total Other Expense | (9 | ) | — | (46 | ) | 21 | (34 | ) | ||||||||||||||
(19 | ) | Income (Loss) Before Income Taxes | 35 | (3 | ) | (585 | ) | 16 | (537 | ) | ||||||||||||||
(20 | ) | Income taxes (benefits) | 14 | — | (221 | ) | 22 | (185 | ) | |||||||||||||||
(21 | ) | Net Income (Loss) | 21 | (3 | ) | (364 | ) | (6 | ) | (352 | ) | |||||||||||||
(22 | ) | Income (loss) attributable to noncontrolling interest | — | — | — | (1 | ) | (1 | ) | |||||||||||||||
(23 | ) | Earnings (Loss) Available to FirstEnergy Corp. | $ | 21 | $ | (3 | ) | $ | (364 | ) | $ | (5 | ) | $ | (351 | ) | ||||||||
(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 non-affiliated power suppliers and the deferral and amortization of certain fuel costs. | |||||||||||||||||||||||
(b) | Revenues are derived from rates charged to load serving entities and other transmission users that recover costs and provide a return on transmission capital investment owned and operated by certain of FirstEnergy's utilities and transmission companies. Its results reflect the net transmission expenses related to the delivery of the respective generation loads. | |||||||||||||||||||||||
(c) | Revenues are primarily derived from supplying electric power to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey, and the provision of partial POLR and default service for affiliated and non-affiliated utilities in Ohio, Pennsylvania and Maryland. | |||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions. | |||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Competitive | Other & | ||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | |||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
(1 | ) | Electric sales | $ | 4,130 | $ | 356 | $ | 2,710 | $ | (93 | ) | $ | 7,103 | ||||||||||
(2 | ) | Other | 123 | — | 81 | (59 | ) | 145 | |||||||||||||||
(3 | ) | Internal | — | — | 392 | (392 | ) | — | |||||||||||||||
(4 | ) | Total Revenues | 4,253 | 356 | 3,183 | (544 | ) | 7,248 | |||||||||||||||
Expenses | |||||||||||||||||||||||
(5 | ) | Fuel | 162 | — | 1,096 | — | 1,258 | ||||||||||||||||
(6 | ) | Purchased power | 1,637 | — | 560 | (392 | ) | 1,805 | |||||||||||||||
(7 | ) | Other operating expenses | 817 | 63 | 1,063 | (172 | ) | 1,771 | |||||||||||||||
(9 | ) | Provision for depreciation | 295 | 56 | 225 | 20 | 596 | ||||||||||||||||
(10 | ) | Amortization of regulatory assets, net | 127 | 4 | — | — | 131 | ||||||||||||||||
(11 | ) | General taxes | 354 | 26 | 110 | 16 | 506 | ||||||||||||||||
(12 | ) | Impairment of long-lived assets | — | — | 473 | — | 473 | ||||||||||||||||
(13 | ) | Total Expenses | 3,392 | 149 | 3,527 | (528 | ) | 6,540 | |||||||||||||||
(14 | ) | Operating Income (Loss) | 861 | 207 | (344 | ) | (16 | ) | 708 | ||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
(15 | ) | Gain (loss) on debt redemptions | — | — | (149 | ) | 8 | (141 | ) | ||||||||||||||
(16 | ) | Investment income (loss) | 27 | — | (1 | ) | (23 | ) | 3 | ||||||||||||||
(17 | ) | Interest expense | (270 | ) | (45 | ) | (134 | ) | (65 | ) | (514 | ) | |||||||||||
(18 | ) | Capitalized interest | 5 | 1 | 21 | 7 | 34 | ||||||||||||||||
(19 | ) | Total Other Expense | (238 | ) | (44 | ) | (263 | ) | (73 | ) | (618 | ) | |||||||||||
(20 | ) | Income (Loss) Before Income Taxes | 623 | 163 | (607 | ) | (89 | ) | 90 | ||||||||||||||
(21 | ) | Income taxes | 234 | 61 | (230 | ) | (7 | ) | 58 | ||||||||||||||
(22 | ) | Net Income (Loss) | $ | 389 | $ | 102 | $ | (377 | ) | $ | (82 | ) | $ | 32 | |||||||||
(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 non-affiliated power suppliers and the deferral and amortization of certain fuel costs. | ||||||||||||||||||||||
(b) | Revenues are derived from rates charged to load serving entities and other transmission users that recover costs and provide a return on transmission capital investment owned and operated by certain of FirstEnergy's utilities and transmission companies. Its results reflect the net transmission expenses related to the delivery of the respective generation loads. | ||||||||||||||||||||||
(c) | Revenues are primarily derived from supplying electric power to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey, and the provision of partial POLR and default service for affiliated and non-affiliated utilities in Ohio, Pennsylvania and Maryland. | ||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions. | ||||||||||||||||||||||
Six Months Ended June 30, 2012 | ||||||||||||||||||||||||
Competitive | Other & | |||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | ||||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
(1 | ) | Electric sales | $ | 4,392 | $ | 370 | $ | 2,944 | $ | (111 | ) | $ | 7,595 | |||||||||||
(2 | ) | Other | 101 | — | 76 | (29 | ) | 148 | ||||||||||||||||
(3 | ) | Internal | — | — | 477 | (475 | ) | 2 | ||||||||||||||||
(4 | ) | Total Revenues | 4,493 | 370 | 3,497 | (615 | ) | 7,745 | ||||||||||||||||
Expenses | ||||||||||||||||||||||||
(5 | ) | Fuel | 97 | — | 1,100 | — | 1,197 | |||||||||||||||||
(6 | ) | Purchased power | 1,977 | — | 798 | (474 | ) | 2,301 | ||||||||||||||||
(7 | ) | Other operating expenses | 912 | 69 | 922 | (164 | ) | 1,739 | ||||||||||||||||
(9 | ) | Provision for depreciation | 287 | 58 | 203 | 16 | 564 | |||||||||||||||||
(10 | ) | Amortization of regulatory assets, net | 138 | — | — | (1 | ) | 137 | ||||||||||||||||
(11 | ) | General taxes | 356 | 21 | 110 | 17 | 504 | |||||||||||||||||
(12 | ) | Total Expenses | 3,767 | 148 | 3,133 | (606 | ) | 6,442 | ||||||||||||||||
(13 | ) | Operating Income (Loss) | 726 | 222 | 364 | (9 | ) | 1,303 | ||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
(14 | ) | Investment income | 42 | 1 | 12 | (31 | ) | 24 | ||||||||||||||||
(15 | ) | Interest expense | (269 | ) | (46 | ) | (136 | ) | (69 | ) | (520 | ) | ||||||||||||
(16 | ) | Capitalized interest | 5 | 1 | 23 | 7 | 36 | |||||||||||||||||
(17 | ) | Total Other Income (Expense) | (222 | ) | (44 | ) | (101 | ) | (93 | ) | (460 | ) | ||||||||||||
(18 | ) | Income (Loss) Before Income Taxes | 504 | 178 | 263 | (102 | ) | 843 | ||||||||||||||||
(19 | ) | Income taxes (benefits) | 187 | 66 | 97 | (1 | ) | 349 | ||||||||||||||||
(20 | ) | Net Income (Loss) | 317 | 112 | 166 | (101 | ) | 494 | ||||||||||||||||
(21 | ) | Income attributable to noncontrolling interest | — | — | — | 1 | 1 | |||||||||||||||||
(22 | ) | Earnings (Loss) Available to FirstEnergy Corp. | $ | 317 | $ | 112 | $ | 166 | $ | (102 | ) | $ | 493 | |||||||||||
(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 non-affiliated power suppliers and the deferral and amortization of certain fuel costs. | |||||||||||||||||||||||
(b) | Revenues are derived from rates charged to load serving entities and other transmission users that recover costs and provide a return on transmission capital investment owned and operated by certain of FirstEnergy's utilities and transmission companies. Its results reflect the net transmission expenses related to the delivery of the respective generation loads. | |||||||||||||||||||||||
(c) | Revenues are primarily derived from supplying electric power to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey, and the provision of partial POLR and default service for affiliated and non-affiliated utilities in Ohio, Pennsylvania and Maryland. | |||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions. | |||||||||||||||||||||||
Six Months Ended June 30, 2013 vs. Six Months Ended June 30, 2012 | ||||||||||||||||||||||||
Competitive | Other & | |||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | ||||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
(1 | ) | Electric sales | $ | (262 | ) | $ | (14 | ) | $ | (234 | ) | $ | 18 | $ | (492 | ) | ||||||||
(2 | ) | Other | 22 | — | 5 | (30 | ) | (3 | ) | |||||||||||||||
(3 | ) | Internal revenues | — | — | (85 | ) | 83 | (2 | ) | |||||||||||||||
(4 | ) | Total Revenues | (240 | ) | (14 | ) | (314 | ) | 71 | (497 | ) | |||||||||||||
Expenses | ||||||||||||||||||||||||
(5 | ) | Fuel | 65 | — | (4 | ) | — | 61 | ||||||||||||||||
(6 | ) | Purchased power | (340 | ) | — | (238 | ) | 82 | (496 | ) | ||||||||||||||
(7 | ) | Other operating expenses | (95 | ) | (6 | ) | 141 | (8 | ) | 32 | ||||||||||||||
(9 | ) | Provision for depreciation | 8 | (2 | ) | 22 | 4 | 32 | ||||||||||||||||
(10 | ) | Amortization of regulatory assets, net | (11 | ) | 4 | — | 1 | (6 | ) | |||||||||||||||
(11 | ) | General taxes | (2 | ) | 5 | — | (1 | ) | 2 | |||||||||||||||
(12 | ) | Impairment of long-lived assets | — | — | 473 | — | 473 | |||||||||||||||||
(13 | ) | Total Expenses | (375 | ) | 1 | 394 | 78 | 98 | ||||||||||||||||
(14 | ) | Operating Income | 135 | (15 | ) | (708 | ) | (7 | ) | (595 | ) | |||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
(15 | ) | Loss on debt redemptions | — | — | (149 | ) | 8 | (141 | ) | |||||||||||||||
(16 | ) | Investment income | (15 | ) | (1 | ) | (13 | ) | 8 | (21 | ) | |||||||||||||
(17 | ) | Interest expense | (1 | ) | 1 | 2 | 4 | 6 | ||||||||||||||||
(18 | ) | Capitalized interest | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
(19 | ) | Total Other Income (Expense) | (16 | ) | — | (162 | ) | 20 | (158 | ) | ||||||||||||||
(20 | ) | Income (Loss) Before Income Taxes | 119 | (15 | ) | (870 | ) | 13 | (753 | ) | ||||||||||||||
(21 | ) | Income taxes | 47 | (5 | ) | (327 | ) | (6 | ) | (291 | ) | |||||||||||||
(22 | ) | Net Income (Loss) | 72 | (10 | ) | (543 | ) | 19 | (462 | ) | ||||||||||||||
(23 | ) | Income (loss) attributable to noncontrolling interest | — | — | — | (1 | ) | (1 | ) | |||||||||||||||
(24 | ) | Earnings (Loss) Available to FirstEnergy Corp. | $ | 72 | $ | (10 | ) | $ | (543 | ) | $ | 20 | $ | (461 | ) | |||||||||
(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 non-affiliated power suppliers and the deferral and amortization of certain fuel costs. | |||||||||||||||||||||||
(b) | Revenues are derived from rates charged to load serving entities and other transmission users that recover costs and provide a return on transmission capital investment owned and operated by certain of FirstEnergy's utilities and transmission companies. Its results reflect the net transmission expenses related to the delivery of the respective generation loads. | |||||||||||||||||||||||
(c) | Revenues are primarily derived from supplying electric power to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Maryland, Michigan and New Jersey, and the provision of partial POLR and default service for affiliated and non-affiliated utilities in Ohio, Pennsylvania and Maryland. | |||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses and elimination of intersegment transactions. | |||||||||||||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
As of | As of | ||||||||||
Assets | Jun. 30, 2013 | Dec. 31, 2012 | |||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 71 | $ | 172 | |||||||
Receivables | 1,923 | 1,929 | |||||||||
Other | 1,566 | 1,667 | |||||||||
Total Current Assets | 3,560 | 3,768 | |||||||||
Property, Plant and Equipment | 33,091 | 32,903 | |||||||||
Investments | 3,100 | 3,194 | |||||||||
Deferred Charges and Other Assets | 10,406 | 10,541 | |||||||||
Total Assets | $ | 50,157 | $ | 50,406 | |||||||
Liabilities and Capitalization | |||||||||||
Current Liabilities: | |||||||||||
Currently payable long-term debt | $ | 1,952 | $ | 1,999 | |||||||
Short-term borrowings | 3,254 | 1,969 | |||||||||
Accounts payable | 950 | 1,599 | |||||||||
Other | 1,377 | 2,038 | |||||||||
Total Current Liabilities | 7,533 | 7,605 | |||||||||
Capitalization: | |||||||||||
Total equity | 12,803 | 13,093 | |||||||||
Long-term debt and other long-term obligations | 15,449 | 15,179 | |||||||||
Total Capitalization | 28,252 | 28,272 | |||||||||
Noncurrent Liabilities | 14,372 | 14,529 | |||||||||
Total Liabilities and Capitalization | $ | 50,157 | $ | 50,406 | |||||||
General Information | ||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Debt redemptions | $ | (1,122 | ) | $ | (730 | ) | $ | (1,968 | ) | $ | (746 | ) | ||||||
New long-term debt issues | $ | 445 | $ | 182 | $ | 2,245 | $ | 182 | ||||||||||
Short-term borrowings increase | $ | 1,104 | $ | 815 | $ | 1,285 | $ | 1,890 | ||||||||||
Property additions | $ | 586 | $ | 394 | $ | 1,412 | $ | 911 | ||||||||||
Adjusted Capitalization | ||||||||||||||||
As of June 30 | As of December 31 | |||||||||||||||
2013 | % Total | 2012 | % Total | |||||||||||||
Total Equity (GAAP) | $ | 12,803 | 36 | % | $ | 13,093 | 38 | % | ||||||||
Long-term Debt and Other Long-term Obligations | 15,449 | 43 | % | 15,179 | 43 | % | ||||||||||
Currently Payable Long-term Debt | 1,952 | 6 | % | 1,999 | 6 | % | ||||||||||
Short-term Borrowings | 3,254 | 9 | % | 1,969 | 6 | % | ||||||||||
Adjustments: | ||||||||||||||||
Operating Lease Debt Equivalent* | 1,538 | 4 | % | 1,538 | 4 | % | ||||||||||
Post-Retirement Benefit Obligations** | 1,869 | 5 | % | 1,865 | 5 | % | ||||||||||
Other | 120 | — | 120 | — | ||||||||||||
Less Securitization Debt | (1,154 | ) | (3 | )% | (736 | ) | (2 | )% | ||||||||
Adjusted capitalization (Non-GAAP) | $ | 35,831 | 100 | % | $ | 35,027 | 100 | % | ||||||||
* Present value of future operating lease payments using a discount rate of 7% | ||||||||||||||||
** After-tax unfunded Pension/OPEB PBO Liability | ||||||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30 | June 30 | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||
Net income (loss) | $ | (164 | ) | $ | 188 | $ | 32 | $ | 494 | |||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||||||||
Depreciation and deferral / amortization of regulatory assets, net | 374 | 347 | 727 | 701 | ||||||||||||||
Nuclear fuel and lease amortization | 45 | 48 | 98 | 106 | ||||||||||||||
Deferred purchased power and other costs | (14 | ) | (42 | ) | (39 | ) | (149 | ) | ||||||||||
Deferred income taxes and investment tax credits, net | (15 | ) | 158 | 119 | 423 | |||||||||||||
Impairments of long-lived assets | 473 | — | 473 | — | ||||||||||||||
Investment impairments | 46 | 3 | 53 | 7 | ||||||||||||||
Deferred rents and lease market valuation liability | (96 | ) | (83 | ) | (59 | ) | (106 | ) | ||||||||||
Stock based compensation | 6 | 11 | (22 | ) | (18 | ) | ||||||||||||
Retirement benefits | (40 | ) | (25 | ) | (104 | ) | (64 | ) | ||||||||||
Commodity derivative transactions, net | 17 | (22 | ) | 21 | (86 | ) | ||||||||||||
Pension trust contribution | — | — | — | (600 | ) | |||||||||||||
Cash collateral, net | (41 | ) | 50 | (42 | ) | 22 | ||||||||||||
Loss on debt redemptions | 24 | — | 141 | — | ||||||||||||||
Make-whole premiums paid on debt redemptions | (61 | ) | — | (61 | ) | — | ||||||||||||
Change in working capital and other | (111 | ) | (158 | ) | (844 | ) | (668 | ) | ||||||||||
Cash flows provided from operating activities | 443 | 475 | 493 | 62 | ||||||||||||||
Cash flows provided from financing activities | 204 | 12 | 976 | 831 | ||||||||||||||
Cash flows used for investing activities | (643 | ) | (467 | ) | (1,570 | ) | (1,001 | ) | ||||||||||
Net change in cash and cash equivalents | $ | 4 | $ | 20 | $ | (101 | ) | $ | (108 | ) | ||||||||
Liquidity position as of July 31, 2013 | ||||||||||
Company | Type | Maturity | Amount | Available | ||||||
FirstEnergy(1) | Revolving | May 2018 | $2,500 | $268 | ||||||
FES / AE Supply | Revolving | May 2018 | 2,500 | 2,499 | ||||||
FirstEnergy Transmission, LLC (FET)(2) | Revolving | May 2018 | 1,000 | — | ||||||
Allegheny Generating Company (AGC) | Revolving | Dec. 2013 | 50 | 30 | ||||||
(1) FirstEnergy Corp. and subsidiary borrowers | Subtotal: | $6,050 | $2,797 | |||||||
(2) Includes FET, American Transmission Systems, Incorporated (ATSI), and Trans-Allegheny Interstate Line Company, (TrAIL) | Cash: | — | 189 | |||||||
Total: | $6,050 | $2,986 | ||||||||
Electric Distribution Deliveries | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
(MWH in thousand) | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||
Ohio | - Residential | 3,837 | 3,896 | -1.5 | % | 8,453 | 8,397 | 0.7 | % | ||||||||||||
- Commercial | 3,669 | 3,829 | -4.2 | % | 7,417 | 7,575 | -2.1 | % | |||||||||||||
- Industrial | 5,168 | 5,361 | -3.6 | % | 10,314 | 10,430 | -1.1 | % | |||||||||||||
- Other | 79 | 84 | -6.0 | % | 164 | 166 | -1.2 | % | |||||||||||||
Total Ohio | 12,753 | 13,170 | -3.2 | % | 26,348 | 26,568 | -0.8 | % | |||||||||||||
Pennsylvania | - Residential | 4,238 | 4,037 | 5.0 | % | 9,697 | 9,085 | 6.7 | % | ||||||||||||
- Commercial | 3,037 | 3,143 | -3.4 | % | 6,173 | 6,230 | -0.9 | % | |||||||||||||
- Industrial | 5,101 | 5,173 | -1.4 | % | 10,215 | 10,358 | -1.4 | % | |||||||||||||
- Other | 30 | 34 | -11.8 | % | 61 | 65 | -6.2 | % | |||||||||||||
Total Pennsylvania | 12,406 | 12,387 | 0.2 | % | 26,146 | 25,738 | 1.6 | % | |||||||||||||
New Jersey | - Residential | 2,139 | 2,141 | -0.1 | % | 4,393 | 4,288 | 2.4 | % | ||||||||||||
- Commercial | 2,186 | 2,232 | -2.1 | % | 4,342 | 4,383 | -0.9 | % | |||||||||||||
- Industrial | 558 | 653 | -14.5 | % | 1,158 | 1,256 | -7.8 | % | |||||||||||||
- Other | 22 | 22 | 0.0 | % | 44 | 44 | 0.0 | % | |||||||||||||
Total New Jersey | 4,905 | 5,048 | -2.8 | % | 9,937 | 9,971 | -0.3 | % | |||||||||||||
Maryland | - Residential | 712 | 673 | 5.8 | % | 1,702 | 1,552 | 9.7 | % | ||||||||||||
- Commercial | 502 | 487 | 3.1 | % | 1,020 | 998 | 2.2 | % | |||||||||||||
- Industrial | 416 | 344 | 20.9 | % | 806 | 802 | 0.5 | % | |||||||||||||
- Other | 4 | 4 | 0.0 | % | 8 | 8 | 0.0 | % | |||||||||||||
Total Maryland | 1,634 | 1,508 | 8.4 | % | 3,536 | 3,360 | 5.2 | % | |||||||||||||
West Virginia | - Residential | 1,202 | 1,085 | 10.8 | % | 2,839 | 2,604 | 9.0 | % | ||||||||||||
- Commercial | 847 | 873 | -3.0 | % | 1,738 | 1,762 | -1.4 | % | |||||||||||||
- Industrial | 1,252 | 1,253 | -0.1 | % | 2,626 | 2,509 | 4.7 | % | |||||||||||||
- Other | 7 | 7 | 0.0 | % | 13 | 14 | -7.1 | % | |||||||||||||
Total West Virginia | 3,308 | 3,218 | 2.8 | % | 7,216 | 6,889 | 4.7 | % | |||||||||||||
Total Residential | 12,128 | 11,832 | 2.5 | % | 27,084 | 25,926 | 4.5 | % | |||||||||||||
Total Commercial | 10,241 | 10,564 | -3.1 | % | 20,690 | 20,948 | -1.2 | % | |||||||||||||
Total Industrial | 12,495 | 12,784 | -2.3 | % | 25,119 | 25,355 | -0.9 | % | |||||||||||||
Total Other | 142 | 151 | -6.0 | % | 290 | 297 | -2.4 | % | |||||||||||||
Total Distribution Deliveries | 35,006 | 35,331 | -0.9 | % | 73,183 | 72,526 | 0.9 | % | |||||||||||||
Weather | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||
2013 | 2012 | Normal | 2013 | 2012 | Normal | ||||||||||||||||
Composite Heating-Degree-Days | 579 | 503 | 612 | 3,420 | 2,695 | 3,386 | |||||||||||||||
Composite Cooling-Degree-Days | 289 | 332 | 259 | 289 | 344 | 261 | |||||||||||||||
Shopping Statistics (Based Upon MWH) | Three Months Ended June 30 | Six Months Ended June 30 | ||||||||
2013 | 2012 | 2013 | 2012 | |||||||
OE | 79% | 77% | 78% | 75% | ||||||
Penn | 67% | 67% | 65% | 64% | ||||||
CEI | 86% | 85% | 86% | 84% | ||||||
TE | 78% | 76% | 76% | 75% | ||||||
JCP&L | 54% | 51% | 53% | 50% | ||||||
Met-Ed | 67% | 65% | 64% | 60% | ||||||
Penelec | 71% | 69% | 70% | 66% | ||||||
MP | N/A | N/A | N/A | N/A | ||||||
PE(1) | 50% | 49% | 46% | 46% | ||||||
WP | 64% | 61% | 62% | 58% | ||||||
(1) Represents Maryland only. | ||||||||||
Competitive Operating Statistics | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Ongoing Generation Capacity Factors: | |||||||||||
Nuclear | 76% | 78% | 84% | 88% | |||||||
Fossil - Baseload | 76% | 71% | 74% | 68% | |||||||
Fossil - Load Following | 61% | 55% | 58% | 37% | |||||||
Ongoing Generation Fuel Rate: | |||||||||||
Nuclear | $7.86 | $7.78 | $7.81 | $7.58 | |||||||
Fossil | $26 | $28 | $27 | $28 | |||||||
Total Fleet | $21 | $22 | $21 | $21 | |||||||
Ongoing Generation Output Mix: | |||||||||||
Nuclear | 29% | 30% | 31% | 34% | |||||||
Fossil - Baseload | 58% | 56% | 56% | 54% | |||||||
Fossil - Load Following | 9% | 8% | 8% | 7% | |||||||
Peaking/CT/Hydro | 5% | 5% | 5% | 5% | |||||||
Competitive Energy Services - Sources and Uses (MWH in thousands) | ||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
Contract Sales | 2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||
POLR | ||||||||||||||||||||||
- OH | 1,022 | 1,539 | (517 | ) | 2,298 | 3,395 | (1,097 | ) | ||||||||||||||
- PA | 1,796 | 2,081 | (285 | ) | 4,095 | 4,865 | (770 | ) | ||||||||||||||
- MD | 664 | 706 | (42 | ) | 1,543 | 1,481 | 62 | |||||||||||||||
Total POLR | 3,482 | 4,326 | (844 | ) | 7,936 | 9,741 | (1,805 | ) | ||||||||||||||
Structured Sales | ||||||||||||||||||||||
- Bilaterals | 1,329 | 619 | 710 | 2,718 | 1,403 | 1,315 | ||||||||||||||||
- Muni/Co-op | 730 | 434 | 296 | 1,704 | 878 | 826 | ||||||||||||||||
Total Structured Sales | 2,059 | 1,053 | 1,006 | 4,422 | 2,281 | 2,141 | ||||||||||||||||
Direct - LCI | ||||||||||||||||||||||
- OH | 7,310 | 7,254 | 56 | 14,569 | 13,501 | 1,068 | ||||||||||||||||
- PA | 3,804 | 4,025 | (221 | ) | 7,507 | 7,970 | (463 | ) | ||||||||||||||
- NJ | 255 | 319 | (64 | ) | 456 | 657 | (201 | ) | ||||||||||||||
- MI | 740 | 577 | 163 | 1,450 | 1,130 | 320 | ||||||||||||||||
- IL | 598 | 767 | (169 | ) | 1,162 | 1,493 | (331 | ) | ||||||||||||||
- MD | 211 | 165 | 46 | 399 | 316 | 83 | ||||||||||||||||
Total Direct - LCI | 12,918 | 13,107 | (189 | ) | 25,543 | 25,067 | 476 | |||||||||||||||
Direct - MCI | ||||||||||||||||||||||
- OH | 643 | 586 | 57 | 1,243 | 1,154 | 89 | ||||||||||||||||
- PA | 370 | 242 | 128 | 717 | 493 | 224 | ||||||||||||||||
- IL | 64 | 1 | 63 | 105 | 1 | 104 | ||||||||||||||||
- MD | 1 | 1 | — | 1 | 1 | — | ||||||||||||||||
- NJ | 12 | — | 12 | 12 | — | 12 | ||||||||||||||||
Total Direct - MCI | 1,090 | 830 | 260 | 2,078 | 1,649 | 429 | ||||||||||||||||
Aggregation | ||||||||||||||||||||||
- OH | 3,576 | 3,612 | (36 | ) | 7,802 | 7,548 | 254 | |||||||||||||||
- IL | 1,200 | 26 | 1,174 | 2,360 | 56 | 2,304 | ||||||||||||||||
Total Aggregation | 4,776 | 3,638 | 1,138 | 10,162 | 7,604 | 2,558 | ||||||||||||||||
Mass Market | ||||||||||||||||||||||
- OH | 410 | 303 | 107 | 943 | 647 | 296 | ||||||||||||||||
- PA | 1,017 | 787 | 230 | 2,201 | 1,659 | 542 | ||||||||||||||||
- IL | 32 | 5 | 27 | 51 | 9 | 42 | ||||||||||||||||
- MD | 32 | 11 | 21 | 76 | 11 | 65 | ||||||||||||||||
Total Mass Market | 1,491 | 1,106 | 385 | 3,271 | 2,326 | 945 | ||||||||||||||||
Total Contract Sales | 25,816 | 24,060 | 1,756 | 53,412 | 48,668 | 4,744 | ||||||||||||||||
Wholesale Sales* | ||||||||||||||||||||||
- Spot | 599 | 2,055 | (1,456 | ) | 831 | 2,766 | (1,935 | ) | ||||||||||||||
Total Wholesale Sales | 599 | 2,055 | (1,456 | ) | 831 | 2,766 | (1,935 | ) | ||||||||||||||
Purchased Power* | ||||||||||||||||||||||
- Bilaterals | 504 | 400 | 104 | 1,103 | 928 | 175 | ||||||||||||||||
- Spot | 3,747 | 1,896 | 1,851 | 7,919 | 4,323 | 3,596 | ||||||||||||||||
Total Purchased Power | 4,251 | 2,296 | 1,955 | 9,022 | 5,251 | 3,771 | ||||||||||||||||
Generation Output | ||||||||||||||||||||||
- Ongoing Fossil | 16,681 | 15,716 | 965 | 32,615 | 29,172 | 3,443 | ||||||||||||||||
- Nuclear | 6,673 | 6,768 | (95 | ) | 14,595 | 15,367 | (772 | ) | ||||||||||||||
Total Ongoing Generation Output | 23,354 | 22,484 | 870 | 47,210 | 44,539 | 2,671 | ||||||||||||||||
- Deactivated / RMR Fossil | 220 | 2,365 | (2,145 | ) | 704 | 3,748 | (3,044 | ) | ||||||||||||||
Total Generation Output | 23,574 | 24,849 | (1,275 | ) | 47,914 | 48,287 | (373 | ) | ||||||||||||||
*Actual MWH - includes deactivated and RMR coal plants | ||||||||||||||||||||||
Competitive | |||||||||||||||||||||||
Regulated | Regulated | Energy | |||||||||||||||||||||
Special Items - Three Months Ended June 30, 2013 | Distribution | Transmission | Services | Other | Consolidated | ||||||||||||||||||
GAAP Earnings (Loss) Available to FirstEnergy Corp. | $ | 179 | $ | 51 | $ | (339 | ) | $ | (55 | ) | $ | (164 | ) | ||||||||||
Pre-Tax Items: | |||||||||||||||||||||||
Regulatory charges (a) | 12 | — | 5 | — | 17 | ||||||||||||||||||
Trust securities impairment (b) | 7 | — | 30 | — | 37 | ||||||||||||||||||
Impact of non-core asset sales/impairments (b) | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Mark-to-market adjustments (c) | (2 | ) | — | — | — | (2 | ) | ||||||||||||||||
Merger accounting - commodity contracts (d) | — | — | 15 | — | 15 | ||||||||||||||||||
Plant deactivation costs (e) | 1 | — | 536 | — | 537 | ||||||||||||||||||
Debt redemption costs (f) | — | — | 33 | (8 | ) | 25 | |||||||||||||||||
Subtotal | 18 | — | 618 | (8 | ) | 628 | |||||||||||||||||
Income taxes (g) | (7 | ) | — | (235 | ) | 25 | (217 | ) | |||||||||||||||
After-Tax Effect | 11 | — | 383 | 17 | 411 | ||||||||||||||||||
Non - GAAP Earnings Available to FirstEnergy Corp. | $ | 190 | $ | 51 | $ | 44 | $ | (38 | ) | $ | 247 | ||||||||||||
(a) | $14 million included in "Other operating expenses"; $1 million included in Revenues; $1 million included in "Amortization of regulatory assets, net"; $1 million included in "Purchased power". | ||||||||||||||||||||||
(b) | Included in "Investment income". | ||||||||||||||||||||||
(c) | Included in "Other operating expenses". | ||||||||||||||||||||||
(d) | $4 million included in "Revenues", $12 million included in "Fuel", ($1) million included in "Other operating expenses". | ||||||||||||||||||||||
(e) | $47 million included in "Fuel", $15 million included in "Other operating expenses"; $2 million included in "General Taxes", $473 million included in "Impairment of long-lived assets". | ||||||||||||||||||||||
(f) | $24 million included in "Loss on debt redemptions", $1 million included in "Interest expense". | ||||||||||||||||||||||
(g) | Includes $20 million associated with valuation reserves against net operating loss carryforwards as a result of plant deactivations. |
Competitive | |||||||||||||||||||||||
Regulated | Regulated | Energy | |||||||||||||||||||||
Special Items - Three Months Ended June 30, 2012 | Distribution | Transmission | Services | Other | Consolidated | ||||||||||||||||||
GAAP Earnings Available to FirstEnergy Corp. | $ | 158 | $ | 54 | $ | 25 | $ | (50 | ) | $ | 187 | ||||||||||||
Pre-Tax Items: | |||||||||||||||||||||||
Regulatory charges (a) | 9 | — | — | — | 9 | ||||||||||||||||||
Trust securities impairment (b) | — | — | 3 | — | 3 | ||||||||||||||||||
Merger transaction/integration costs (c) | 2 | — | 1 | — | 3 | ||||||||||||||||||
Impact of non-core asset sales/impairments (d) | — | — | (12 | ) | — | (12 | ) | ||||||||||||||||
Mark-to-market adjustments (e) | — | — | (9 | ) | 20 | 11 | |||||||||||||||||
Merger accounting - commodity contracts (f) | 2 | — | 21 | — | 23 | ||||||||||||||||||
Plant deactivation costs (g) | 6 | — | 42 | — | 48 | ||||||||||||||||||
Subtotal | 19 | — | 46 | 20 | 85 | ||||||||||||||||||
Income tax legislative changes | — | — | — | 8 | 8 | ||||||||||||||||||
Income taxes | (7 | ) | — | (17 | ) | (7 | ) | (31 | ) | ||||||||||||||
After-Tax Effect | 12 | — | 29 | 21 | 62 | ||||||||||||||||||
Non - GAAP Earnings Available to FirstEnergy Corp. | $ | 170 | $ | 54 | $ | 54 | $ | (29 | ) | $ | 249 | ||||||||||||
(a) | $7 million included in "Other operating expenses"; $2 million included in "Amortization of regulatory assets, net". | ||||||||||||||||||||||
(b) | Included in "Investment income" | ||||||||||||||||||||||
(c) | Included in "Other operating expenses" | ||||||||||||||||||||||
(d) | ($17) million included in "Revenues", $5 million included in "Investment income". | ||||||||||||||||||||||
(e) | $20 million included in "Interest Expense"; ($9) million in "Other operating expenses". | ||||||||||||||||||||||
(f) | $9 million included in "Revenues", $10 million included in "Fuel", $4 million included in Purchased Power. | ||||||||||||||||||||||
(g) | $3 million included in "Revenues", $95 million included in "Fuel", ($73) million included in Purchased Power, $18 million included in "Other operating expenses"; and $5 million included in General Taxes. |
Competitive | |||||||||||||||||||||||
Regulated | Regulated | Energy | |||||||||||||||||||||
Special Items - Six Months Ended June 30, 2013 | Distribution | Transmission | Services | Other | Consolidated | ||||||||||||||||||
GAAP Earnings (Loss) Available to FirstEnergy Corp. | $ | 389 | $ | 102 | $ | (377 | ) | $ | (82 | ) | $ | 32 | |||||||||||
Pre-Tax Items: | |||||||||||||||||||||||
Regulatory charges (a) | 24 | — | 21 | — | 45 | ||||||||||||||||||
Trust securities impairment (b) | 7 | — | 37 | — | 44 | ||||||||||||||||||
Merger transaction/integration costs (c) | — | — | 1 | — | 1 | ||||||||||||||||||
Impact of non-core asset sales/impairments (b) | — | — | 5 | — | 5 | ||||||||||||||||||
Mark-to-market adjustments (d) | (2 | ) | — | 4 | — | 2 | |||||||||||||||||
Merger accounting - commodity contracts (e) | — | — | 34 | — | 34 | ||||||||||||||||||
Plant deactivation costs (f) | 3 | — | 544 | — | 547 | ||||||||||||||||||
Debt redemption costs (g) | — | — | 152 | (8 | ) | 144 | |||||||||||||||||
Subtotal | 32 | — | 798 | (8 | ) | 822 | |||||||||||||||||
Income taxes (h) | (12 | ) | — | (303 | ) | 25 | (290 | ) | |||||||||||||||
After-Tax Effect | 20 | — | 495 | 17 | 532 | ||||||||||||||||||
Non - GAAP Earnings Available to FirstEnergy Corp. | $ | 409 | $ | 102 | $ | 118 | $ | (65 | ) | $ | 564 | ||||||||||||
(a) | $39 million included in "Other operating expenses"; $2 million included in Revenues; $1 million included in "Amortization of regulatory assets, net"; $3 million included in "Purchased power". | ||||||||||||||||||||||
(b) | Included in "Investment income". | ||||||||||||||||||||||
(c) | Included in "Fuel". | ||||||||||||||||||||||
(d) | Included in "Other operating expenses". | ||||||||||||||||||||||
(e) | $13 million included in "Revenues", $23 million included in "Fuel", ($2) million included in "Other operating expenses". | ||||||||||||||||||||||
(f) | $53 million included in "Fuel", $17 million included in "Other operating expenses"; $4 million included in "General Taxes", $473 million included in "Impairment of long-lived assets". | ||||||||||||||||||||||
(g) | $141 million included in "Loss on debt redemptions", $3 million included in "Interest expense". | ||||||||||||||||||||||
(h) | Includes $20 million associated with valuation reserves against net operating loss carryforwards as a result of plant deactivations. |
Competitive | |||||||||||||||||||||||
Regulated | Regulated | Energy | |||||||||||||||||||||
Special Items - Six Months Ended June 30, 2012 | Distribution | Transmission | Services | Other | Consolidated | ||||||||||||||||||
GAAP Earnings Available to FirstEnergy Corp. | $ | 317 | $ | 112 | $ | 166 | $ | (102 | ) | $ | 493 | ||||||||||||
Pre-Tax Items: | |||||||||||||||||||||||
Regulatory charges (a) | 17 | — | — | — | 17 | ||||||||||||||||||
Trust securities impairment (b) | — | — | 6 | — | 6 | ||||||||||||||||||
Merger transaction/integration costs (c) | 3 | — | 2 | — | 5 | ||||||||||||||||||
Impact of non-core asset sales/impairments (d) | — | — | (7 | ) | 1 | (6 | ) | ||||||||||||||||
Mark-to-market adjustments (e) | — | — | (48 | ) | 20 | (28 | ) | ||||||||||||||||
Merger accounting - commodity contracts (f) | 4 | — | 47 | — | 51 | ||||||||||||||||||
Plant deactivation costs (g) | 12 | — | 72 | — | 84 | ||||||||||||||||||
Subtotal | 36 | — | 72 | 21 | 129 | ||||||||||||||||||
Income tax legislative changes | — | — | — | 16 | 16 | ||||||||||||||||||
Income taxes | (13 | ) | — | (27 | ) | (5 | ) | (45 | ) | ||||||||||||||
After-Tax Effect | 23 | — | 45 | 32 | 100 | ||||||||||||||||||
Non - GAAP Earnings Available to FirstEnergy Corp. | $ | 340 | $ | 112 | $ | 211 | $ | (70 | ) | $ | 593 | ||||||||||||
(a) | $15 million included in "Other operating expenses"; $2 million included in "Amortization of regulatory assets, net". | ||||||||||||||||||||||
(b) | Included in "Investment income". | ||||||||||||||||||||||
(c) | Included in "Other operating expenses". | ||||||||||||||||||||||
(d) | ($17) million included in "Revenues", $11 million included in "Investment income". | ||||||||||||||||||||||
(e) | $20 million included in "Interest Expense"; ($48) million in "Other operating expenses". | ||||||||||||||||||||||
(f) | $27 million included in "Revenues", $20 million included in "Fuel", $4 million included in Purchased Power. | ||||||||||||||||||||||
(g) | ($1) million included in "Revenues", $136 million included in "Fuel", ($98) million included in Purchased Power, $40 million included in "Other operating expenses"; and $7 million included in General Taxes. |
Earnings Per Share (EPS) | |||||||||||||||||||||
(Reconciliation of GAAP to Non-GAAP) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | Estimate | |||||||||||||||||||
June 30 | June 30 | for Year | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | |||||||||||||||||
Basic EPS (GAAP basis) | $ | (0.39 | ) | $ | 0.45 | $ | 0.08 | $ | 1.18 | $1.39 - $1.69 | |||||||||||
Excluding Special Items: | |||||||||||||||||||||
Mark-to-market adjustments | — | 0.02 | — | (0.04 | ) | — | |||||||||||||||
Regulatory charges | 0.02 | 0.01 | 0.07 | 0.03 | 0.11 | ||||||||||||||||
Trust securities impairment | 0.05 | 0.01 | 0.06 | 0.01 | 0.06 | ||||||||||||||||
Income tax legislative changes | — | 0.02 | — | 0.04 | — | ||||||||||||||||
Merger transaction/integration costs | — | — | — | 0.01 | — | ||||||||||||||||
Impact of non-core asset sales/impairments | — | (0.01 | ) | 0.01 | (0.01 | ) | 0.02 | ||||||||||||||
Plant deactivation costs | 0.85 | 0.07 | 0.86 | 0.13 | 0.96 | ||||||||||||||||
Restructuring costs | — | — | — | — | 0.01 | ||||||||||||||||
Merger accounting - commodity contracts | 0.02 | 0.03 | 0.05 | 0.07 | 0.08 | ||||||||||||||||
Debt redemption costs | 0.04 | — | 0.22 | — | 0.22 | ||||||||||||||||
Basic EPS (Non-GAAP basis) | $ | 0.59 | $ | 0.60 | $ | 1.35 | $ | 1.42 | $2.85 - $3.15 | ||||||||||||