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 May 6, 2014 | |
99.2 | Consolidated Report to the Financial Community, dated May 6, 2014 |
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 May 6, 2014 | |
99.2 | Consolidated Report to the Financial Community, dated May 6, 2014 |
Consolidated GAAP EPS to Operating (Non-GAAP) EPS* Reconciliation | |||||||||
First Quarter | 2014 Estimates | ||||||||
2014 | 2013 | Full Year | |||||||
Basic EPS | $0.50 | $0.47 | $2.27 - $2.49 | ||||||
Excluding Special Items*: | |||||||||
Mark-to-market adjustments | (0.03) | 0.01 | (0.03) | ||||||
Regulatory charges | 0.02 | 0.04 | 0.05 | ||||||
Trust securities impairment | — | 0.01 | — | ||||||
Non-core asset sales/impairments | (0.18) | 0.01 | (0.16) | ||||||
Plant deactivation costs | 0.05 | 0.01 | 0.18 - 0.20 | ||||||
Merger accounting - commodity contracts | 0.02 | 0.03 | 0.06 | ||||||
Loss on debt redemptions | 0.01 | 0.18 | 0.01 | ||||||
Total Special Items* | (0.11) | 0.29 | 0.11 - 0.13 | ||||||
Basic EPS - Operating (Non-GAAP) | $0.39 | $0.76 | $2.40 - $2.60 | ||||||
Competitive | Other & | FirstEnergy | |||||||||||
After-Tax EPS Variance Analysis | Regulated | Regulated | Energy | Reconciling | Corp. | ||||||||
(in millions, except per share amounts) | Distribution | Transmission | Services | Adjustments | Consolidated | ||||||||
1Q 2013 Net Income - GAAP | $210 | $51 | $(38) | $(27) | $196 | ||||||||
1Q 2013 Basic EPS* (avg. shares outstanding 418) | $0.50 | $0.12 | $(0.09) | $(0.06) | $0.47 | ||||||||
Special Items - 2013 | 0.02 | — | 0.27 | — | 0.29 | ||||||||
1Q 2013 Basic EPS - Operating (Non-GAAP) Earnings* | $0.52 | $0.12 | $0.18 | $(0.06) | $0.76 | ||||||||
Distribution Deliveries | 0.09 | — | — | — | 0.09 | ||||||||
Transmission Revenues | — | 0.02 | — | — | 0.02 | ||||||||
CES Commodity Margin | — | — | (0.45) | — | (0.45) | ||||||||
West Virginia (WV) Asset Transfer / Deactivated Units | 0.01 | — | 0.04 | — | 0.05 | ||||||||
O&M Expenses | (0.06) | (0.01) | (0.01) | — | (0.08) | ||||||||
Depreciation | (0.02) | — | — | — | (0.02) | ||||||||
General Taxes | — | (0.01) | — | — | (0.01) | ||||||||
Interest Expense | (0.01) | — | 0.01 | (0.02) | (0.02) | ||||||||
Effective Income Tax Rate | — | — | — | 0.03 | 0.03 | ||||||||
Other | — | — | 0.01 | 0.01 | 0.02 | ||||||||
1Q 2014 Basic EPS - Operating (Non-GAAP) Earnings* | $0.53 | $0.12 | $(0.22) | $(0.04) | $0.39 | ||||||||
Special Items - 2014 | (0.02) | — | 0.13 | — | 0.11 | ||||||||
1Q 2014 Basic EPS* (avg. shares outstanding 419) | $0.51 | $0.12 | $(0.09) | $(0.04) | $0.50 | ||||||||
1Q 2014 Net Income - GAAP | $214 | $51 | $(38) | $(19) | $208 | ||||||||
Per share amounts for the special items and earnings drivers above and throughout this report are based on the after tax effect of each item divided by the weighted average shares outstanding for the period. | |||||||||||||
Competitive | Other & | FirstEnergy | |||||||||||
Regulated | Regulated | Energy | Reconciling | Corp. | |||||||||
Special Items - 2014 | Distribution | Transmission | Services | Adjustments | Consolidated | ||||||||
Regulatory charges | $0.02 | $— | $— | $— | $0.02 | ||||||||
Plant deactivation costs | — | — | 0.05 | — | 0.05 | ||||||||
Merger accounting - commodity contracts | — | — | 0.02 | — | 0.02 | ||||||||
Impact of non-core asset sales/impairments | — | — | (0.18) | — | (0.18) | ||||||||
Loss on debt redemptions | — | — | 0.01 | — | 0.01 | ||||||||
Mark-to-market adjustments | — | — | (0.03) | — | (0.03) | ||||||||
Special Items - 2014 | $0.02 | $— | $(0.13) | $— | $(0.11) | ||||||||
Competitive | Other & | FirstEnergy | |||||||||||
Regulated | Regulated | Energy | Reconciling | Corp. | |||||||||
Special Items - 2013 | Distribution | Transmission | Services | Adjustments | Consolidated | ||||||||
Regulatory charges | $0.02 | $— | $0.02 | $— | $0.04 | ||||||||
Trust securities impairment | — | — | 0.01 | — | 0.01 | ||||||||
Plant deactivation costs | — | — | 0.01 | — | 0.01 | ||||||||
Merger accounting - commodity contracts | — | — | 0.03 | — | 0.03 | ||||||||
Impact of non-core asset sales/impairments | — | — | 0.01 | — | 0.01 | ||||||||
Loss on debt redemptions | — | — | 0.18 | — | 0.18 | ||||||||
Mark-to-market adjustments | — | — | 0.01 | — | 0.01 | ||||||||
Special Items - 2013 | $0.02 | $— | $0.27 | $— | $0.29 | ||||||||
(In millions, except per share amounts) | Regulated Distribution | Regulated Transmission | Competitive Energy Services | Corporate / Other | FirstEnergy Corp. Consolidated | ||||||||
Net Income - GAAP | $810 - $835 | $215 - $235 | $15 - $65 | $(90) | $950 - $1,045 | ||||||||
Basic EPS (avg. shares outstanding 420) | $1.93 - $1.99 | $0.52 - $0.56 | $0.04 - $0.16 | $(0.22) | $2.27 - $2.49 | ||||||||
Excluding Special Items: | |||||||||||||
Regulatory charges | 0.05 | — | — | — | 0.05 | ||||||||
Loss on debt redemptions | — | — | 0.01 | — | 0.01 | ||||||||
Mark-to-market adjustments | — | — | (0.03) | — | (0.03) | ||||||||
Non-core asset sales/impairments | — | — | (0.16) | — | (0.16) | ||||||||
Plant deactivation costs | — | — | 0.18 - 0.20 | — | 0.18 - 0.20 | ||||||||
Merger accounting - commodity contracts | — | — | 0.06 | — | 0.06 | ||||||||
Total Special Items | 0.05 | — | 0.06 - 0.08 | — | 0.11 - 0.13 | ||||||||
Basic EPS - Operating (Non-GAAP) (avg. shares outstanding 420) | $1.98 - $2.04 | $0.52 - $0.56 | $0.12 - $0.22 | $(0.22) | $2.40 - $2.60 | ||||||||
Regulated Distribution - GAAP earnings for the first quarter of 2014 were $214 million ($0.51 per basic share), compared with first quarter 2013 earnings of $210 million ($0.50 per basic share). Operating (non-GAAP) earnings, excluding special items, were $0.53 per basic share for the first quarter of 2014, compared with first quarter 2013 Operating (non-GAAP) earnings of $0.52 per basic share. | |||||||
After-Tax EPS Variance Analysis | |||||||
(In millions, except per share amounts) | |||||||
1Q 2013 Net Income - GAAP | $210 | ||||||
1Q 2013 Basic EPS (avg. shares outstanding 418M) | $0.50 | ||||||
Special Items - 2013 | 0.02 | ||||||
1Q 2013 Basic EPS - Operating (Non-GAAP) Earnings | $0.52 | ||||||
Distribution Deliveries | 0.09 | ||||||
WV Asset Transfer | 0.01 | ||||||
O&M Expenses | (0.06) | ||||||
Depreciation | (0.02) | ||||||
Interest Expense | (0.01) | ||||||
1Q 2014 Basic EPS - Operating (Non-GAAP) Earnings | $0.53 | ||||||
Special Items - 2014 | (0.02) | ||||||
1Q 2014 Basic EPS (avg. shares outstanding 419M) | $0.51 | ||||||
1Q 2014 Net Income - GAAP | $214 | ||||||
• | Distribution Deliveries - Total distribution deliveries increased earnings by $0.09 per share, primarily resulting from colder temperatures and higher Ohio Delivery Capital Recovery rider rates. Heating-degree-days were 17% above the same period last year, and 19% above normal. Total electric distribution deliveries increased 2.3 million MWH, or 6%. Sales to residential customers increased 1.6 million MWH, or 11%, while sales to commercial customers increased 579,000 MWH, or 6%. Sales to industrial customers increased 77,000 MWH, or 1%. Higher rates associated with the Ohio Delivery Capital Recovery rider contributed $0.02 per share. |
• | WV Asset Transfer(1) - The Harrison/Pleasants asset transfer increased earnings by $0.01 per share. |
• | O&M Expenses - Higher O&M expenses decreased earnings by $0.06 per share, primarily due to increased operation and maintenance activities and non-deferred storm-related restoration expenses associated with winter storm Nika during the first quarter of 2014.** |
• | Depreciation - Higher depreciation expense reduced earnings by $0.02 per share, due to a higher asset base. ** |
• | Interest Expense - Higher interest expense decreased earnings by $0.01 per share, primarily due to a debt issuance at Jersey Central Power & Light Company in August 2013.** |
Regulated Transmission - GAAP earnings and Operating (non-GAAP) earnings were $51 million ($0.12 per basic share) for the first quarter of 2014 and 2013. | |||||||
After-Tax EPS Variance Analysis | |||||||
(In millions, except per share amounts) | |||||||
1Q 2013 Net Income - GAAP | $51 | ||||||
1Q 2013 Basic EPS (avg. shares outstanding 418M) | $0.12 | ||||||
Special Items - 2013 | — | ||||||
1Q 2013 Basic EPS - Operating (Non-GAAP) Earnings | $0.12 | ||||||
Transmission Revenues | 0.02 | ||||||
O&M Expenses | (0.01) | ||||||
General Taxes | (0.01) | ||||||
1Q 2014 Basic EPS - Operating (Non-GAAP) Earnings | $0.12 | ||||||
Special Items - 2014 | — | ||||||
1Q 2014 Basic EPS (avg. shares outstanding 419M) | $0.12 | ||||||
1Q 2014 Net Income - GAAP | $51 | ||||||
• | Transmission Revenues - Higher transmission revenues increased earnings by $0.02 per share, primarily due to revenue requirement increases at American Transmission Systems, Incorporated (ATSI) and Trans-Allegheny Interstate Line Company (TrAILCo) associated with their annual rate filings effective June 2013. |
• | O&M Expenses - Increased O&M expenses decreased earnings by $0.01 per share, primarily due to a greater focus on maintenance activities during the quarter. |
• | General Taxes - Higher general taxes decreased earnings by $0.01 per share, primarily due to higher property taxes. |
Competitive Energy Services (CES) - GAAP losses for the first quarter of 2014 were $38 million, or ($0.09) per basic share, compared with a first quarter 2013 loss of $38 million, or ($0.09) per basic share. Operating (non-GAAP) losses, excluding special items, were ($0.22) per basic share for the first quarter of 2014, compared with first quarter 2013 Operating (non-GAAP) earnings of $0.18 per basic share. | |||||||
After-Tax EPS Variance Analysis | |||||||
(In millions, except per share amounts) | |||||||
1Q 2013 Net Loss - GAAP | $(38) | ||||||
1Q 2013 Basic EPS (avg. shares outstanding 418M) | $(0.09) | ||||||
Special Items - 2013 | 0.27 | ||||||
1Q 2013 Basic EPS - Operating (Non-GAAP) Earnings | $0.18 | ||||||
CES Commodity Margin | (0.45) | ||||||
West Virginia (WV) Asset Transfer / Deactivated Units | 0.04 | ||||||
O&M Expenses | (0.01) | ||||||
Interest Expense | 0.01 | ||||||
Other | 0.01 | ||||||
1Q 2014 Basic EPS - Operating (Non-GAAP) Losses | $(0.22) | ||||||
Special Items - 2014 | 0.13 | ||||||
1Q 2014 Basic EPS (avg. shares outstanding 419M) | $(0.09) | ||||||
1Q 2014 Net Loss - GAAP | $(38) | ||||||
• | $0.23 per share decrease primarily associated with higher purchased power resulting from planned outages and the timing of unplanned outages and derates, |
• | $0.10 per share decrease associated with the net cost to serve additional unhedged retail load as a result of increased customer demand primarily due to extreme weather conditions, |
• | $0.07 per share decrease resulting primarily from higher capacity expense driven by higher capacity prices, |
• | $0.05 per share decrease resulting from higher PJM ancillary service charges for transmission system reliability, partially offset by "pass-through" revenues to commercial and industrial customers. |
Commodity Margin EPS - 1Q14 vs 1Q13 | Rate | Volume | Total | |||||||||||
(a) Contract Sales | ||||||||||||||
- Direct Sales (LCI & MCI) | $ | 0.02 | $ | (0.06 | ) | $ | (0.04 | ) | ||||||
- Governmental Aggregation Sales | 0.01 | 0.03 | 0.04 | |||||||||||
- Mass Market Sales | — | 0.03 | 0.03 | |||||||||||
- POLR Sales | 0.03 | 0.03 | 0.06 | |||||||||||
- Structured Sales | (0.10 | ) | 0.06 | (0.04 | ) | |||||||||
Subtotal - Contract Sales | $ | (0.04 | ) | $ | 0.09 | $ | 0.05 | |||||||
(b) Wholesale Sales | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||
(c) PJM Capacity, FRR Auction Revenues | 0.02 | — | 0.02 | |||||||||||
(d) Fuel Expense | (0.02 | ) | (0.01 | ) | (0.03 | ) | ||||||||
(e) Purchased Power (net of financials) | (0.21 | ) | (0.14 | ) | (0.35 | ) | ||||||||
(f) Capacity Expense | (0.06 | ) | (0.01 | ) | (0.07 | ) | ||||||||
(g) Net MISO - PJM Transmission Cost | (0.09 | ) | (0.01 | ) | (0.10 | ) | ||||||||
(h) Pass-through Transmission Revenues | 0.05 | — | 0.05 | |||||||||||
Net Decrease | $ | (0.36 | ) | $ | (0.09 | ) | $ | (0.45 | ) | |||||
(a) | Contract Sales - CES' contract sales increased 1.3 million MWH, or 5%. As of March 31, 2014, the total number of retail customers remained at 2.7 million, comparable to the number of retail customers since March 31, 2013. |
• | Structured sales increased 982,000 MWH, or 42%, due to increased municipal, cooperative, and bilateral sales, offset by reduced gains on various structured financial sales. |
• | Governmental aggregation sales increased 383,000 MWH, or 7%, primarily due to increased weather-related usage. |
• | POLR generation sales increased 373,000 MWH, or 8% , primarily driven by increased weather-related usage. |
• | Mass market sales increased 346,000 MWH, or 19%, primarily in Pennsylvania and Ohio, resulting from the acquisition of new customers and increased weather-related usage. |
• | Direct sales to large and medium commercial / industrial customers decreased 773,000 MWH, or 6%, which reflects CES' more conservative retail sales strategy in light of current market conditions. |
CES Contract Sales - 1Q14 vs 1Q13 | |||||||||||||||
(thousand MWH) | Retail | Non-Retail | |||||||||||||
Direct | Aggr. | Mass Market | POLR | Structured | Total | ||||||||||
Contract Sales Increase / (Decrease) | (773) | 383 | 346 | 373 | 982 | 1,311 | |||||||||
Planning Period | RTO | ATSI | ATSI | MAAC | |||||||
Price Per Megawatt-Day | BR | FRR | BR | BR | |||||||
June 2012 - May 2013 | $16.46 | $20.46 | N/A | $133.37 | |||||||
June 2013 - May 2014 | $27.73 | N/A | $27.73 | $226.15 | |||||||
(d) | Fuel Expense - On-going fossil generation output increased by 638,000 MWH, primarily due to higher peaking unit and economic dispatch generation, partially offset by unplanned outages. Nuclear generation output decreased 1.1 million MWH, primarily due to a refueling outage and steam generator replacement at Davis-Besse (58 days during the first quarter of 2014) and an unplanned outage at Beaver Valley Unit 1 to replace a transformer (23 days during the first quarter of 2014). *** |
• | WV Asset Transfer / Plant Deactivations(2) - The impact of the Harrison/Pleasant asset transfer and plant deactivations in 2013 increased earnings by $0.04 per share, primarily driven by lower O&M expenses ($0.05 per share), depreciation expense ($0.03 per share), general taxes ($0.01 per share) and interest expense ($0.03 per share) as a result of utilizing cash proceeds to repurchase or redeem debt. Partially offsetting the benefit of lower expenses was higher net costs ($0.08 per share) of replacing approximately 4.4 million MWH of generation associated with transferred or deactivated units. |
• | O&M Expenses - Higher CES O&M expenses decreased earnings by $0.01 per share, primarily as a result of increased nuclear outages described above.*** |
• | Interest Expense - Lower interest expense increased earnings by $0.01 per share, primarily due to debt repurchases in March 2013.*** |
Corporate / Other - GAAP losses and Operating (non-GAAP) losses were $19 million, or ($0.04) per basic share for the first quarter of 2014, compared with first quarter 2013 of $27 million, or ($0.06) per basic share. | |||||||
After-Tax EPS Variance Analysis | |||||||
(In millions, except per share amounts) | |||||||
1Q 2013 Net Loss - GAAP | $(27) | ||||||
1Q 2013 Basic EPS (avg. shares outstanding 418M) | $(0.06) | ||||||
Special Items - 2013 | — | ||||||
1Q 2013 Basic EPS - Operating (Non-GAAP) Losses | $(0.06) | ||||||
Interest Expense | (0.02) | ||||||
Effective Income Tax Rate | 0.03 | ||||||
Other | 0.01 | ||||||
1Q 2014 Basic EPS - Operating (Non-GAAP) Losses | $(0.04) | ||||||
Special Items - 2014 | — | ||||||
1Q 2014 Basic EPS (avg. shares outstanding 419M) | $(0.04) | ||||||
1Q 2014 Net Loss - GAAP | $(19) | ||||||
• | Interest Expense - Higher interest expense resulting from the issuance of $1.5 billion of debt at the parent company in March of 2013 decreased earnings by $0.02 per share. |
• | Effective Income Tax Rate - A lower effective income tax rate increased earnings by $0.03 per share, primarily resulting from higher state flow-through income tax benefits, changes in state allocation factors, and the elimination of certain future tax liabilities associated with basis differences. The consolidated effective income tax rate was 30.8% in the first quarter of 2014 compared to 37.1% in the first quarter of 2013. |
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 March 31 | |||||||||||||||||
2014 | 2013 | Change | |||||||||||||||
Revenues | |||||||||||||||||
(1 | ) | Regulated distribution | $ | 2,552 | $ | 2,212 | $ | 340 | |||||||||
(2 | ) | Regulated transmission | 187 | 176 | 11 | ||||||||||||
(3 | ) | Competitive energy services | 1,771 | 1,630 | 141 | ||||||||||||
(4 | ) | Other and reconciling adjustments | (321 | ) | (295 | ) | (26 | ) | |||||||||
(5 | ) | Total Revenues | 4,189 | 3,723 | 466 | ||||||||||||
Expenses | |||||||||||||||||
(6 | ) | Fuel | 617 | 630 | (13 | ) | |||||||||||
(7 | ) | Purchased power | 1,455 | 946 | 509 | ||||||||||||
(8 | ) | Other operating expenses | 1,182 | 882 | 300 | ||||||||||||
(9 | ) | Provision for depreciation | 294 | 293 | 1 | ||||||||||||
(10 | ) | Amortization (deferral) of regulatory assets, net | (28 | ) | 59 | (87 | ) | ||||||||||
(11 | ) | General taxes | 271 | 265 | 6 | ||||||||||||
(12 | ) | Total Expenses | 3,791 | 3,075 | 716 | ||||||||||||
(13 | ) | Operating Income | 398 | 648 | (250 | ) | |||||||||||
Other Income (Expense) | |||||||||||||||||
(14 | ) | Loss on debt redemptions | (7 | ) | (117 | ) | 110 | ||||||||||
(15 | ) | Investment income | 22 | 18 | 4 | ||||||||||||
(16 | ) | Interest expense | (265 | ) | (258 | ) | (7 | ) | |||||||||
(17 | ) | Capitalized interest | 22 | 15 | 7 | ||||||||||||
(18 | ) | Total Other Expense | (228 | ) | (342 | ) | 114 | ||||||||||
(19 | ) | Income From Continuing Operations Before Income Taxes | 170 | 306 | (136 | ) | |||||||||||
(20 | ) | Income taxes | 48 | 114 | (66 | ) | |||||||||||
(21 | ) | Income From Continuing Operations | 122 | 192 | (70 | ) | |||||||||||
(22 | ) | Discontinued operations (net of income taxes) | 86 | 4 | 82 | ||||||||||||
(23 | ) | Net Income | $ | 208 | $ | 196 | $ | 12 | |||||||||
(24 | ) | Earnings Per Share of Common Stock | |||||||||||||||
(25 | ) | Basic - Continuing Operations | $ | 0.29 | $ | 0.46 | $ | (0.17 | ) | ||||||||
(26 | ) | Basic - Discontinued Operations | 0.21 | 0.01 | 0.20 | ||||||||||||
(27 | ) | Basic - Earnings Available to FirstEnergy Corp. | $ | 0.50 | $ | 0.47 | $ | 0.03 | |||||||||
(28 | ) | Diluted - Continuing Operations | $ | 0.29 | $ | 0.46 | $ | (0.17 | ) | ||||||||
(29 | ) | Diluted - Discontinued Operations | 0.20 | 0.01 | 0.19 | ||||||||||||
(30 | ) | Diluted - Earnings Available to FirstEnergy Corp. | $ | 0.49 | $ | 0.47 | $ | 0.02 | |||||||||
(31 | ) | Weighted Average Number of | |||||||||||||||
(32 | ) | Common Shares Outstanding | |||||||||||||||
(33 | ) | Basic | 419 | 418 | 1 | ||||||||||||
(34 | ) | Diluted | 420 | 419 | 1 | ||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Competitive | Other & | ||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | |||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
(1 | ) | Electric sales | $ | 2,501 | $ | 187 | $ | 1,474 | $ | (56 | ) | $ | 4,106 | ||||||||||
(2 | ) | Other | 51 | — | 48 | (16 | ) | 83 | |||||||||||||||
(3 | ) | Internal | — | — | 249 | (249 | ) | — | |||||||||||||||
(4 | ) | Total Revenues | 2,552 | 187 | 1,771 | (321 | ) | 4,189 | |||||||||||||||
Expenses | |||||||||||||||||||||||
(5 | ) | Fuel | 153 | — | 464 | — | 617 | ||||||||||||||||
(6 | ) | Purchased power | 981 | — | 723 | (249 | ) | 1,455 | |||||||||||||||
(7 | ) | Other operating expenses | 627 | 34 | 609 | (88 | ) | 1,182 | |||||||||||||||
(8 | ) | Provision for depreciation | 162 | 30 | 91 | 11 | 294 | ||||||||||||||||
(9 | ) | Amortization (deferral) of regulatory assets, net | (31 | ) | 3 | — | — | (28 | ) | ||||||||||||||
(10 | ) | General taxes | 187 | 17 | 54 | 13 | 271 | ||||||||||||||||
(11 | ) | Total Expenses | 2,079 | 84 | 1,941 | (313 | ) | 3,791 | |||||||||||||||
(12 | ) | Operating Income (loss) | 473 | 103 | (170 | ) | (8 | ) | 398 | ||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
(13 | ) | Loss on debt redemptions | — | — | (7 | ) | — | (7 | ) | ||||||||||||||
(14 | ) | Investment income | 15 | — | 14 | (7 | ) | 22 | |||||||||||||||
(15 | ) | Interest expense | (151 | ) | (25 | ) | (46 | ) | (43 | ) | (265 | ) | |||||||||||
(16 | ) | Capitalized interest | 2 | 3 | 12 | 5 | 22 | ||||||||||||||||
(17 | ) | Total Other Expense | (134 | ) | (22 | ) | (27 | ) | (45 | ) | (228 | ) | |||||||||||
(18 | ) | Income (Loss) From Continuing Operations Before Income Taxes | 339 | 81 | (197 | ) | (53 | ) | 170 | ||||||||||||||
(19 | ) | Income taxes (benefits) | 125 | 30 | (73 | ) | (34 | ) | 48 | ||||||||||||||
(20 | ) | Income (Loss) From Continuing Operations | 214 | 51 | (124 | ) | (19 | ) | 122 | ||||||||||||||
(21 | ) | Discontinued operations (net of income taxes), including gain on asset sale | — | — | 86 | — | 86 | ||||||||||||||||
(22 | ) | Net Income (loss) | $ | 214 | $ | 51 | $ | (38 | ) | $ | (19 | ) | $ | 208 | |||||||||
(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, which are recovered through rates billed to customers pursuant to each company's commission approved POLR and default service program. These revenues and expenses and other revenues and other expenses that are subject to recovery through regulated rates do not typically impact earnings and are excluded from "earnings drivers" in this Consolidated report. | ||||||||||||||||||||||
(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. Certain revenues have related expenses including capacity expenses, fuel expense, purchased power and transmission expenses. These revenues and expenses may be combined and referred to as "Commodity Margin" to get an accurate view of the segment's earnings drivers. | ||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses, income taxes and elimination of intersegment transactions. | ||||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||
Competitive | Other & | |||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | ||||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
(1 | ) | Electric sales | $ | 2,155 | $ | 176 | $ | 1,372 | $ | (44 | ) | $ | 3,659 | |||||||||||
(2 | ) | Other | 57 | — | 42 | (35 | ) | 64 | ||||||||||||||||
(3 | ) | Internal | — | — | 216 | (216 | ) | — | ||||||||||||||||
(4 | ) | Total Revenues | 2,212 | 176 | 1,630 | (295 | ) | 3,723 | ||||||||||||||||
Expenses | ||||||||||||||||||||||||
(5 | ) | Fuel | 87 | — | 543 | — | 630 | |||||||||||||||||
(6 | ) | Purchased power | 875 | — | 287 | (216 | ) | 946 | ||||||||||||||||
(7 | ) | Other operating expenses | 415 | 30 | 526 | (89 | ) | 882 | ||||||||||||||||
(8 | ) | Provision for depreciation | 144 | 28 | 110 | 11 | 293 | |||||||||||||||||
(9 | ) | Amortization of regulatory assets, net | 58 | 1 | — | — | 59 | |||||||||||||||||
(10 | ) | General taxes | 182 | 12 | 60 | 11 | 265 | |||||||||||||||||
(11 | ) | Total Expenses | 1,761 | 71 | 1,526 | (283 | ) | 3,075 | ||||||||||||||||
(12 | ) | Operating Income | 451 | 105 | 104 | (12 | ) | 648 | ||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
(13 | ) | Loss on debt redemptions | — | — | (117 | ) | — | (117 | ) | |||||||||||||||
(14 | ) | Investment income | 18 | — | 10 | (10 | ) | 18 | ||||||||||||||||
(15 | ) | Interest expense | (135 | ) | (23 | ) | (73 | ) | (27 | ) | (258 | ) | ||||||||||||
(16 | ) | Capitalized interest | 2 | — | 10 | 3 | 15 | |||||||||||||||||
(17 | ) | Total Other Expense | (115 | ) | (23 | ) | (170 | ) | (34 | ) | (342 | ) | ||||||||||||
(18 | ) | Income From Continuing Operations Before Income Taxes | 336 | 82 | (66 | ) | (46 | ) | 306 | |||||||||||||||
(19 | ) | Income taxes (benefits) | 126 | 31 | (24 | ) | (19 | ) | 114 | |||||||||||||||
(20 | ) | Income (Loss) From Continuing Operations | 210 | 51 | (42 | ) | (27 | ) | 192 | |||||||||||||||
(21 | ) | Discontinued operations (net of income taxes) | — | — | 4 | — | 4 | |||||||||||||||||
(22 | ) | Net Income (loss) | $ | 210 | $ | 51 | $ | (38 | ) | $ | (27 | ) | $ | 196 | ||||||||||
(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, which are recovered through rates billed to customers pursuant to each company's commission approved POLR and default service program. These revenues and expenses and other revenues and other expenses that are subject to recovery through regulated rates do not typically impact earnings and are excluded from "earnings drivers" in this Consolidated report. | |||||||||||||||||||||||
(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. Certain revenues have related expenses including capacity expenses, fuel expense, purchased power and transmission expenses. These revenues and expenses may be combined and referred to as "Commodity Margin" to get an accurate view of the segment's earnings drivers. | |||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses, income taxes and elimination of intersegment transactions. | |||||||||||||||||||||||
Three Months Ended March 31, 2014 vs. Three Months Ended March 31, 2013 | ||||||||||||||||||||||||
Competitive | Other & | |||||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | FirstEnergy | ||||||||||||||||||||
Distribution (a) | Transmission (b) | Services (c) | Adjustments (d) | Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
(1 | ) | Electric sales | $ | 346 | $ | 11 | $ | 102 | $ | (12 | ) | $ | 447 | |||||||||||
(2 | ) | Other | (6 | ) | — | 6 | 19 | 19 | ||||||||||||||||
(3 | ) | Internal revenues | — | — | 33 | (33 | ) | — | ||||||||||||||||
(4 | ) | Total Revenues | 340 | 11 | 141 | (26 | ) | 466 | ||||||||||||||||
Expenses | ||||||||||||||||||||||||
(5 | ) | Fuel | 66 | — | (79 | ) | — | (13 | ) | |||||||||||||||
(6 | ) | Purchased power | 106 | — | 436 | (33 | ) | 509 | ||||||||||||||||
(7 | ) | Other operating expenses | 212 | 4 | 83 | 1 | 300 | |||||||||||||||||
(8 | ) | Provision for depreciation | 18 | 2 | (19 | ) | — | 1 | ||||||||||||||||
(9 | ) | Amortization (deferral) of regulatory assets, net | (89 | ) | 2 | — | — | (87 | ) | |||||||||||||||
(10 | ) | General taxes | 5 | 5 | (6 | ) | 2 | 6 | ||||||||||||||||
(11 | ) | Total Expenses | 318 | 13 | 415 | (30 | ) | 716 | ||||||||||||||||
(12 | ) | Operating Income (Loss) | 22 | (2 | ) | (274 | ) | 4 | (250 | ) | ||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
(13 | ) | Loss on debt redemptions | — | — | 110 | — | 110 | |||||||||||||||||
(14 | ) | Investment income | (3 | ) | — | 4 | 3 | 4 | ||||||||||||||||
(15 | ) | Interest expense | (16 | ) | (2 | ) | 27 | (16 | ) | (7 | ) | |||||||||||||
(16 | ) | Capitalized interest | — | 3 | 2 | 2 | 7 | |||||||||||||||||
(17 | ) | Total Other Expense | (19 | ) | 1 | 143 | (11 | ) | 114 | |||||||||||||||
(18 | ) | Income (Loss) From Continuing Operations Before Income Taxes | 3 | (1 | ) | (131 | ) | (7 | ) | (136 | ) | |||||||||||||
(19 | ) | Income taxes (benefits) | (1 | ) | (1 | ) | (49 | ) | (15 | ) | (66 | ) | ||||||||||||
(20 | ) | Income (Loss) From Continuing Operations | 4 | — | (82 | ) | 8 | (70 | ) | |||||||||||||||
(21 | ) | Discontinued operations (net of income tax benefits) | — | — | 82 | — | 82 | |||||||||||||||||
(22 | ) | Net Income (Loss) | $ | 4 | $ | — | $ | — | $ | 8 | $ | 12 | ||||||||||||
(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, which are recovered through rates billed to customers pursuant to each company's commission approved POLR and default service program. These revenues and expenses and other revenues and other expenses that are subject to recovery through regulated rates do not typically impact earnings and are excluded from "earnings drivers" in this Consolidated report. | |||||||||||||||||||||||
(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. Certain revenues have related expenses including capacity expenses, fuel expense, purchased power and transmission expenses. These revenues and expenses may be combined and referred to as "Commodity Margin" to get an accurate view of the segment's earnings drivers. | |||||||||||||||||||||||
(d) | Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses, income taxes and elimination of intersegment transactions. | |||||||||||||||||||||||
Condensed Consolidated Balance Sheets (GAAP) | |||||||||||
As of | As of | ||||||||||
Assets | Mar. 31, 2014 | Dec. 31, 2013 | |||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 109 | $ | 218 | |||||||
Receivables | 2,087 | 1,918 | |||||||||
Other | 2,381 | 1,877 | |||||||||
Total Current Assets | 4,577 | 4,013 | |||||||||
Property, Plant and Equipment | 33,888 | 33,252 | |||||||||
Investments | 3,161 | 3,104 | |||||||||
Assets Held for Sale | — | 235 | |||||||||
Deferred Charges and Other Assets | 9,602 | 9,820 | |||||||||
Total Assets | $ | 51,228 | $ | 50,424 | |||||||
Liabilities and Capitalization | |||||||||||
Current Liabilities: | |||||||||||
Currently payable long-term debt | $ | 1,416 | $ | 1,415 | |||||||
Short-term borrowings | 3,085 | 3,404 | |||||||||
Accounts payable | 1,455 | 1,250 | |||||||||
Other | 1,781 | 1,568 | |||||||||
Total Current Liabilities | 7,737 | 7,637 | |||||||||
Capitalization: | |||||||||||
Total equity | 12,605 | 12,695 | |||||||||
Long-term debt and other long-term obligations | 16,804 | 15,831 | |||||||||
Total Capitalization | 29,409 | 28,526 | |||||||||
Noncurrent Liabilities | 14,082 | 14,261 | |||||||||
Total Liabilities and Capitalization | $ | 51,228 | $ | 50,424 | |||||||
General Information | ||||||||||
Three Months Ended March 31 | ||||||||||
2014 | 2013 | |||||||||
Debt redemptions | $ | (489 | ) | $ | (846 | ) | ||||
New long-term debt issues | $ | 1,467 | $ | 1,800 | ||||||
Short-term borrowings increase (decrease) | $ | (319 | ) | $ | 181 | |||||
Property additions | $ | 821 | $ | 826 | ||||||
Debt to Total Capitalization Ratio as Defined Under the FE Credit Facility | ||||||||||||||||
As of March 31 | As of December 31 | |||||||||||||||
2014 | % Total | 2013 | % Total | |||||||||||||
Total Equity (GAAP) | $ | 12,605 | 37 | % | $ | 12,695 | 37 | % | ||||||||
Non-cash Charges / Non-cash Write Downs* | 1,413 | 4 | % | 1,413 | 4 | % | ||||||||||
Accumulated Other Comprehensive Income | (271 | ) | (1 | )% | (284 | ) | (1 | )% | ||||||||
Adjusted Equity (Non-GAAP)** | 13,747 | 40 | % | 13,824 | 40 | % | ||||||||||
Long-term Debt and Other Long-term Obligations (GAAP) | 16,804 | 49 | % | 15,831 | 46 | % | ||||||||||
Currently Payable Long-term Debt (GAAP) | 1,416 | 4 | % | 1,415 | 4 | % | ||||||||||
Short-term Borrowings (GAAP) | 3,085 | 9 | % | 3,404 | 10 | % | ||||||||||
Reimbursement Obligations | 7 | — | % | 7 | — | % | ||||||||||
Guarantees of Indebtedness | 533 | 1 | % | 846 | 3 | % | ||||||||||
Less Securitization Debt | (1,078 | ) | (3 | )% | (1,123 | ) | (3 | )% | ||||||||
Adjusted Debt (Non-GAAP)** | 20,767 | 60 | % | 20,380 | 60 | % | ||||||||||
Adjusted Capitalization (Non-GAAP)** | $ | 34,514 | 100 | % | $ | 34,204 | 100 | % | ||||||||
*Includes after-tax non-cash charges and non-cash write downs, primarily associated with pension and OPEB mark-to-market adjustments, impairment of long-lived assets and regulatory asset charges, as required by the FE Credit Facility, as amended through March 31, 2014. | ||||||||||||||||
**Management uses Adjusted Equity, Adjusted Debt, and Adjusted Capitalization, each of which is a non-GAAP financial measure, to calculate and monitor its compliance with the debt to total capitalization financial covenant under the FE Credit Facility. These financial measures, as calculated in accordance with the FE Credit Facility, help shareholders understand compliance and provide a basis for understanding FE Corp.'s incremental debt capacity under the debt to total capitalization financial covenant. The financial covenant requires FE Corp. to maintain a consolidated debt to total capitalization ratio of no more than 65%, measured at the end of each fiscal quarter. | ||||||||||||||||
Condensed Consolidated Statements of Cash Flows (GAAP) | ||||||||||
Three Months Ended | ||||||||||
March 31 | ||||||||||
2014 | 2013 | |||||||||
Cash flows from operating activities | ||||||||||
Net income | $ | 208 | $ | 196 | ||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||
Depreciation and (deferral) / amortization of regulatory assets, net | 266 | 352 | ||||||||
Nuclear fuel amortization | 48 | 53 | ||||||||
Deferred purchased power and other costs | (34 | ) | (25 | ) | ||||||
Deferred income taxes and investment tax credits, net | 181 | 134 | ||||||||
Deferred rents and lease market valuation liability | 33 | 37 | ||||||||
Retirement benefits | (20 | ) | (64 | ) | ||||||
Commodity derivative transactions, net | (17 | ) | 4 | |||||||
Loss on debt redemptions | 7 | 117 | ||||||||
Income from discontinued operations | (86 | ) | (4 | ) | ||||||
Changes in current assets, current liabilities and other | (678 | ) | (750 | ) | ||||||
Cash flows provided from (used for) operating activities | (92 | ) | 50 | |||||||
Cash flows provided from financing activities | 498 | 772 | ||||||||
Cash flows used for investing activities | (515 | ) | (927 | ) | ||||||
Net change in cash and cash equivalents | $ | (109 | ) | $ | (105 | ) | ||||
Liquidity position as of April 30, 2014 | ||||||||||
Company | Type | Maturity | Amount | Available | ||||||
FirstEnergy(1) | Revolving | March 2019 | $3,500 | $1,629 | ||||||
FirstEnergy Solutions Corp. (FES) / Allegheny Energy Supply Company, LLC (AE Supply) | Revolving | March 2019 | 1,500 | 1,031 | ||||||
FirstEnergy Transmission, LLC (FET)(2) | Revolving | March 2019 | 1,000 | 250 | ||||||
(1) FirstEnergy Corp. and FEU subsidiary borrowers | Subtotal: | $6,000 | $2,910 | |||||||
(2) Includes FET, ATSI, and TrAILCo | Cash: | — | 74 | |||||||
Total: | $6,000 | $2,984 | ||||||||
Electric Distribution Deliveries | Three Months Ended March 31 | |||||||||||
(MWH in thousand) | 2014 | 2013 | Change | |||||||||
Ohio | - Residential | 5,226 | 4,616 | 13.2 | % | |||||||
- Commercial | 3,911 | 3,748 | 4.3 | % | ||||||||
- Industrial | 5,258 | 5,147 | 2.2 | % | ||||||||
- Other | 82 | 84 | -2.4 | % | ||||||||
Total Ohio | 14,477 | 13,595 | 6.5 | % | ||||||||
Pennsylvania | - Residential | 5,863 | 5,460 | 7.4 | % | |||||||
- Commercial | 3,317 | 3,136 | 5.8 | % | ||||||||
- Industrial | 5,132 | 5,114 | 0.4 | % | ||||||||
- Other | 30 | 31 | -3.2 | % | ||||||||
Total Pennsylvania | 14,342 | 13,741 | 4.4 | % | ||||||||
New Jersey | - Residential | 2,424 | 2,253 | 7.6 | % | |||||||
- Commercial | 2,297 | 2,156 | 6.5 | % | ||||||||
- Industrial | 581 | 600 | -3.2 | % | ||||||||
- Other | 21 | 21 | 0.0 | % | ||||||||
Total New Jersey | 5,323 | 5,030 | 5.8 | % | ||||||||
Maryland | - Residential | 1,106 | 990 | 11.7 | % | |||||||
- Commercial | 530 | 518 | 2.3 | % | ||||||||
- Industrial | 350 | 389 | -10.0 | % | ||||||||
- Other | 4 | 4 | 0.0 | % | ||||||||
Total Maryland | 1,990 | 1,901 | 4.7 | % | ||||||||
West Virginia | - Residential | 1,951 | 1,637 | 19.2 | % | |||||||
- Commercial | 973 | 891 | 9.2 | % | ||||||||
- Industrial | 1,379 | 1,373 | 0.4 | % | ||||||||
- Other | 7 | 7 | 0.0 | % | ||||||||
Total West Virginia | 4,310 | 3,908 | 10.3 | % | ||||||||
Total Residential | 16,570 | 14,956 | 10.8 | % | ||||||||
Total Commercial | 11,028 | 10,449 | 5.5 | % | ||||||||
Total Industrial | 12,700 | 12,623 | 0.6 | % | ||||||||
Total Other | 144 | 147 | -2.0 | % | ||||||||
Total Distribution Deliveries | 40,442 | 38,175 | 5.9 | % | ||||||||
Weather | Three Months Ended March 31 | |||||||||||
2014 | 2013 | Normal | ||||||||||
Composite Heating-Degree-Days | 3,310 | 2,841 | 2,773 | |||||||||
Composite Cooling-Degree-Days | — | — | 2 | |||||||||
Shopping Statistics (Based on MWH) | Three Months Ended March 31 | |||||
2014 | 2013 | |||||
OE | 78% | 77% | ||||
Penn | 65% | 63% | ||||
CEI | 85% | 85% | ||||
TE | 77% | 75% | ||||
JCP&L | 53% | 52% | ||||
Met-Ed | 66% | 62% | ||||
Penelec | 69% | 68% | ||||
PE(1) | 41% | 43% | ||||
WP | 61% | 60% | ||||
(1) Represents Maryland only. | ||||||
Competitive Operating Statistics | Three Months Ended March 31 | ||||||
2014 | 2013 | ||||||
Ongoing Generation Capacity Factors: | |||||||
Nuclear | 78% | 92% | |||||
Fossil - Baseload | 84% | 80% | |||||
Fossil - Load Following | 67% | 61% | |||||
Ongoing Generation Fuel Rate: | |||||||
Nuclear | $8.31 | $7.76 | |||||
Fossil | $29 | $28 | |||||
Total Fleet | $21 | $19 | |||||
Ongoing Generation Output Mix: | |||||||
Nuclear | 41% | 46% | |||||
Fossil - Baseload | 40% | 37% | |||||
Fossil - Load Following | 10% | 9% | |||||
Peaking/CT/Hydro | 9% | 8% | |||||
Competitive Energy Services - Sources and Uses (MWH in thousands) | |||||||||||||
Three Months Ended March 31 | |||||||||||||
Contract Sales | 2014 | 2013 | Change | ||||||||||
POLR | |||||||||||||
- OH | 1,358 | 1,276 | 82 | ||||||||||
- PA | 2,625 | 2,299 | 326 | ||||||||||
- MD | 844 | 879 | (35 | ) | |||||||||
Total POLR | 4,827 | 4,454 | 373 | ||||||||||
Structured Sales | |||||||||||||
- Bilaterals | 1,964 | 1,389 | 575 | ||||||||||
- Muni/Co-op | 1,381 | 974 | 407 | ||||||||||
Total Structured Sales | 3,345 | 2,363 | 982 | ||||||||||
Direct - LCI | |||||||||||||
- OH | 6,730 | 7,260 | (530 | ) | |||||||||
- PA | 3,221 | 3,703 | (482 | ) | |||||||||
- NJ | 337 | 201 | 136 | ||||||||||
- MI | 756 | 710 | 46 | ||||||||||
- IL | 607 | 564 | 43 | ||||||||||
- MD | 182 | 188 | (6 | ) | |||||||||
Total Direct - LCI | 11,833 | 12,626 | (793 | ) | |||||||||
Direct - MCI | |||||||||||||
- OH | 568 | 600 | (32 | ) | |||||||||
- PA | 385 | 347 | 38 | ||||||||||
- IL | 52 | 41 | 11 | ||||||||||
- MD | 1 | — | 1 | ||||||||||
- NJ | 2 | — | 2 | ||||||||||
Total Direct - MCI | 1,008 | 988 | 20 | ||||||||||
Aggregation | |||||||||||||
- OH | 4,337 | 4,226 | 111 | ||||||||||
- IL | 1,432 | 1,160 | 272 | ||||||||||
Total Aggregation | 5,769 | 5,386 | 383 | ||||||||||
Mass Market | |||||||||||||
- OH | 593 | 533 | 60 | ||||||||||
- PA | 1,445 | 1,184 | 261 | ||||||||||
- IL | 41 | 19 | 22 | ||||||||||
- MD | 47 | 44 | 3 | ||||||||||
Total Mass Market | 2,126 | 1,780 | 346 | ||||||||||
Total Contract Sales | 28,908 | 27,597 | 1,311 | ||||||||||
Wholesale Sales | |||||||||||||
- Spot | 11 | 235 | (224 | ) | |||||||||
Total Wholesale Sales | 11 | 235 | (224 | ) | |||||||||
Purchased Power | |||||||||||||
- Bilaterals | 706 | 598 | 108 | ||||||||||
- Spot | 10,327 | 4,175 | 6,152 | ||||||||||
Total Purchased Power | 11,033 | 4,773 | 6,260 | ||||||||||
Generation Output | |||||||||||||
- Ongoing Fossil | 9,805 | 9,167 | 638 | ||||||||||
- Nuclear | 6,827 | 7,922 | (1,095 | ) | |||||||||
Total Ongoing Generation Output | 16,632 | 17,089 | (457 | ) | |||||||||
- WV Asset Transfer*/Deactivated Units | 2,349 | 6,767 | (4,418 | ) | |||||||||
- RMR | 429 | 484 | (55 | ) | |||||||||
Total Generation Output | 19,410 | 24,340 | (4,930 | ) | |||||||||
*In the first quarter of 2014, includes 100% ownership of the Pleasants plant; in the first quarter of 2013, includes approximately 92% and 80% ownership of the Pleasants plant and Harrison plant, respectively |
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
GAAP | Special Items | Operating -Non-GAAP | GAAP | Special Items | Operating -Non-GAAP | |||||||||||||||||||||||
(1 | ) | Revenues | $ | 4,189 | $ | 1 | (a) | $ | 4,190 | $ | 3,723 | $ | 9 | (a,c) | $ | 3,732 | ||||||||||||
Expenses | ||||||||||||||||||||||||||||
(2 | ) | Fuel | 617 | (34 | ) | (b,c) | 583 | 630 | (19 | ) | (b,c,g) | 611 | ||||||||||||||||
(3 | ) | Purchased power | 1,455 | — | 1,455 | 946 | (1 | ) | (a) | 945 | ||||||||||||||||||
(4 | ) | Other operating expenses | 1,182 | (3 | ) | (a,b,c,d) | 1,179 | 882 | (30 | ) | (a,b,c,d) | 852 | ||||||||||||||||
(5 | ) | Provision for depreciation | 294 | — | 294 | 293 | — | 293 | ||||||||||||||||||||
(6 | ) | Amortization (deferral) of regulatory assets, net | (28 | ) | (1 | ) | (a) | (29 | ) | 59 | (1 | ) | (a) | 58 | ||||||||||||||
(7 | ) | General taxes | 271 | (1 | ) | (b) | 270 | 265 | (2 | ) | (b) | 263 | ||||||||||||||||
(8 | ) | Total Expenses | 3,791 | (39 | ) | 3,752 | 3,075 | (53 | ) | 3,022 | ||||||||||||||||||
(9 | ) | Operating Income | 398 | 40 | 438 | 648 | 62 | 710 | ||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
(10 | ) | Loss on debt redemption | (7 | ) | 7 | (h) | — | (117 | ) | 117 | (h) | — | ||||||||||||||||
(11 | ) | Investment income | 22 | 4 | (e,f) | 26 | 18 | 12 | (e,f) | 30 | ||||||||||||||||||
(12 | ) | Interest expense | (265 | ) | — | (265 | ) | (258 | ) | 2 | (h) | (256 | ) | |||||||||||||||
(13 | ) | Capitalized interest | 22 | — | 22 | 15 | — | 15 | ||||||||||||||||||||
(14 | ) | Total Other Expense | (228 | ) | 11 | (217 | ) | (342 | ) | 131 | (211 | ) | ||||||||||||||||
(15 | ) | Income From Continuing Operations Before Income Taxes | 170 | 51 | 221 | 306 | 193 | 499 | ||||||||||||||||||||
(16 | ) | Income taxes | 48 | 19 | (a - h) | 67 | 114 | 72 | (a - h) | 186 | ||||||||||||||||||
(17 | ) | Income From Continuing Operations | 122 | 32 | 154 | 192 | 121 | 313 | ||||||||||||||||||||
(18 | ) | Discontinued operations (net of income taxes) | 86 | (78 | ) | (e) | 8 | 4 | — | 4 | ||||||||||||||||||
(19 | ) | Net Income | $ | 208 | $ | (46 | ) | $ | 162 | $ | 196 | $ | 121 | $ | 317 | |||||||||||||
The above GAAP to Non-GAAP reconciliation provides additional transparency to our disclosures by providing specific line items to which the special items are recorded. Management consistently utilizes these reconciliations to assist in its analysis of historical and ongoing performance. See page 24 for GAAP to Operating (non-GAAP) EPS reconciliation. | ||||||||||||||||||||||||||||
(a) | Regulatory charges: 2014 ($0.02 per share), $1 million included in Revenues; ($10) million included in "Other operating expenses"; ($1) million included in "Amortization of regulatory assets, net". 2013 ($0.04 per share), $1 million included in Revenues; ($1) million included in "Purchased power"; ($26) million included in "Other operating expenses"; ($1) million included in "Amortization of regulatory assets, net". | |||||||||||||||||||||||||||
(b) | Plant deactivation costs: 2014 ($0.05 per share), ($23) million included in "Fuel"; ($11) million included in "Other operating expenses"; ($1) million included in "General taxes". 2013 ($0.01 per share), ($6) million included in "Fuel"; ($1) million included in "Other operating expenses"; ($2) million included in "General taxes". | |||||||||||||||||||||||||||
(c) | Merger accounting - commodity contracts: 2014 ($0.02 per share), ($11) million included in "Fuel", $1 million included in "Other operating expenses". 2013 ($0.03 per share), $8 million included in "Revenues", ($12) million included in "Fuel", $1 million included in "Other operating expenses". | |||||||||||||||||||||||||||
(d) | Mark-to-market adjustments: 2014 (($0.03) per share), $17 million included in "Other operating expenses". 2013 ($0.01 per share), ($4) million included in "Other operating expenses". | |||||||||||||||||||||||||||
(e) | Impact of non-core asset sales/impairments: 2014 (($0.18) per share), $2 million included in "Investment income" and ($78) million included in "Discontinued operations (net of income taxes)". 2013 ($0.01 per share), $6 million included in "Investment income" | |||||||||||||||||||||||||||
(f) | Trust securities impairment: 2014, $2 million included in "Investment income". 2013 ($0.01 per share), $6 million included in "Investment income" | |||||||||||||||||||||||||||
(g) | Merger transaction / integration costs: 2013, ($1) million included in "Fuel". | |||||||||||||||||||||||||||
(h) | Loss on debt redemptions: 2014 ($0.01 per share) $7 million included in "Loss on debt redemptions". 2013 ($0.18 per share) $117 million included in "Loss on debt redemptions" and $2 million included in "Interest Expense". | |||||||||||||||||||||||||||
Per share amounts included above are based on the after tax effect of the above special items divided by the weighted average shares outstanding of 419 million shares in the first quarter of 2014 and 418 million shares in the first quarter of 2013. | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
Operating - | Operating - | |||||||||||||||||||||||||||
GAAP | Special Items | Non-GAAP | GAAP | Special Items | Non-GAAP | |||||||||||||||||||||||
(1 | ) | Revenues | $ | 2,552 | $ | 1 | (a) | $ | 2,553 | $ | 2,212 | $ | 1 | (a) | $ | 2,213 | ||||||||||||
Expenses | ||||||||||||||||||||||||||||
(2 | ) | Fuel | 153 | — | 153 | 87 | — | 87 | ||||||||||||||||||||
(3 | ) | Purchased power | 981 | — | 981 | 875 | (1 | ) | (a) | 874 | ||||||||||||||||||
(4 | ) | Other operating expenses | 627 | (10 | ) | (a) | 617 | 415 | (9 | ) | (a) | 406 | ||||||||||||||||
(5 | ) | Provision for depreciation | 162 | — | 162 | 144 | — | 144 | ||||||||||||||||||||
(6 | ) | Amortization (deferral) of regulatory assets, net | (31 | ) | (1 | ) | (a) | (32 | ) | 58 | (1 | ) | (a) | 57 | ||||||||||||||
(7 | ) | General taxes | 187 | — | 187 | 182 | (2 | ) | (b) | 180 | ||||||||||||||||||
(8 | ) | Total Expenses | 2,079 | (11 | ) | 2,068 | 1,761 | (13 | ) | 1,748 | ||||||||||||||||||
(9 | ) | Operating Income | 473 | 12 | 485 | 451 | 14 | 465 | ||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
(10 | ) | Investment income | 15 | — | 15 | 18 | — | 18 | ||||||||||||||||||||
(11 | ) | Interest expense | (151 | ) | — | (151 | ) | (135 | ) | — | (135 | ) | ||||||||||||||||
(12 | ) | Capitalized interest | 2 | — | 2 | 2 | — | 2 | ||||||||||||||||||||
(13 | ) | Total Other Expense | (134 | ) | — | (134 | ) | (115 | ) | — | (115 | ) | ||||||||||||||||
(14 | ) | Income From Continuing Operations Before Income Taxes | 339 | 12 | 351 | 336 | 14 | 350 | ||||||||||||||||||||
(15 | ) | Income taxes | 125 | 4 | 129 | 126 | 5 | 131 | ||||||||||||||||||||
(16 | ) | Income From Continuing Operations | 214 | 8 | 222 | 210 | 9 | 219 | ||||||||||||||||||||
(17 | ) | Discontinued operations (net of income taxes) | — | — | — | — | — | — | ||||||||||||||||||||
(18 | ) | Net Income | $ | 214 | $ | 8 | $ | 222 | $ | 210 | $ | 9 | $ | 219 | ||||||||||||||
The above GAAP to Non-GAAP reconciliation provides additional transparency to our disclosures by providing specific line items to which the special items are recorded. Management consistently utilizes these reconciliations to assist in its analysis of historical and ongoing performance. See page 24 for GAAP to Operating (non-GAAP) EPS reconciliation. | ||||||||||||||||||||||||||||
(a) | Regulatory charges: 2014 ($0.02 per share), $1 million included in Revenues; ($10) million included in "Other operating expenses"; ($1) million included in "Amortization of regulatory assets, net". 2013 ($0.02 per share), $1 million included in Revenues; ($1) million included in "Purchased power"; ($9) million included in "Other operating expenses"; ($1) million included in "Amortization of regulatory assets, net". | |||||||||||||||||||||||||||
(b) | Plant Closing Costs: 2013 ($2) million included in "General taxes". | |||||||||||||||||||||||||||
Per share amounts included above are based on the after tax effect of the above special items divided by the weighted average shares outstanding of 419 million shares in the first quarter of 2014 and 418 million shares in the first quarter of 2013. | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
Operating - | Operating - | |||||||||||||||||||||||||||
GAAP | Special Items | Non-GAAP | GAAP | Special Items | Non-GAAP | |||||||||||||||||||||||
(1 | ) | Revenues | $ | 187 | $ | — | $ | 187 | $ | 176 | $ | — | $ | 176 | ||||||||||||||
Expenses | ||||||||||||||||||||||||||||
(2 | ) | Fuel | — | — | — | — | — | — | ||||||||||||||||||||
(3 | ) | Purchased power | — | — | — | — | — | — | ||||||||||||||||||||
(4 | ) | Other operating expenses | 34 | — | 34 | 30 | — | 30 | ||||||||||||||||||||
(5 | ) | Provision for depreciation | 30 | — | 30 | 28 | — | 28 | ||||||||||||||||||||
(6 | ) | Amortization of regulatory assets, net | 3 | — | 3 | 1 | — | 1 | ||||||||||||||||||||
(7 | ) | General taxes | 17 | — | 17 | 12 | — | 12 | ||||||||||||||||||||
(8 | ) | Total Expenses | 84 | — | 84 | 71 | — | 71 | ||||||||||||||||||||
(9 | ) | Operating Income | 103 | — | 103 | 105 | — | 105 | ||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
(10 | ) | Interest expense | (25 | ) | — | (25 | ) | (23 | ) | — | (23 | ) | ||||||||||||||||
(11 | ) | Capitalized interest | 3 | — | 3 | — | — | — | ||||||||||||||||||||
(12 | ) | Total Other Expense | (22 | ) | — | (22 | ) | (23 | ) | — | (23 | ) | ||||||||||||||||
(13 | ) | Income From Continuing Operations Before Income Taxes | 81 | — | 81 | 82 | — | 82 | ||||||||||||||||||||
(14 | ) | Income taxes | 30 | — | 30 | 31 | — | 31 | ||||||||||||||||||||
(15 | ) | Income From Continuing Operations | 51 | — | 51 | 51 | — | 51 | ||||||||||||||||||||
(16 | ) | Discontinued operations (net of income taxes) | — | — | — | — | — | — | ||||||||||||||||||||
(17 | ) | Net Income | $ | 51 | $ | — | $ | 51 | $ | 51 | $ | — | $ | 51 | ||||||||||||||
The above GAAP to Non-GAAP reconciliation provides additional transparency to our disclosures by providing specific line items to which the special items are recorded. Management consistently utilizes these reconciliations to assist in its analysis of historical and ongoing performance. See page 24 for GAAP to Operating (non-GAAP) EPS reconciliation. | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
Operating - | Operating - | |||||||||||||||||||||||||||
GAAP | Special Items | Non-GAAP | GAAP | Special Items | Non-GAAP | |||||||||||||||||||||||
(1 | ) | Revenues | $ | 1,771 | $ | — | $ | 1,771 | $ | 1,630 | $ | 8 | (g) | $ | 1,638 | |||||||||||||
Expenses | ||||||||||||||||||||||||||||
(2 | ) | Fuel | 464 | (34 | ) | (b,c) | 430 | 543 | (19 | ) | (b,c,g) | 524 | ||||||||||||||||
(3 | ) | Purchased power | 723 | — | 723 | 287 | — | 287 | ||||||||||||||||||||
(4 | ) | Other operating expenses | 609 | 7 | (a,b,c,d) | 616 | 526 | (21 | ) | (a,b,c,d) | 505 | |||||||||||||||||
(5 | ) | Provision for depreciation | 91 | — | 91 | 110 | — | 110 | ||||||||||||||||||||
(6 | ) | General taxes | 54 | (1 | ) | (b) | 53 | 60 | (1 | ) | (b) | 59 | ||||||||||||||||
(7 | ) | Total Expenses | 1,941 | (28 | ) | 1,913 | 1,526 | (41 | ) | 1,485 | ||||||||||||||||||
(8 | ) | Operating Income (Loss) | (170 | ) | 28 | (142 | ) | 104 | 49 | 153 | ||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
(9 | ) | Loss on debt redemption | (7 | ) | 7 | (h) | — | (117 | ) | 117 | (h) | — | ||||||||||||||||
(10 | ) | Investment income | 14 | 4 | (b,e,f) | 18 | 10 | 12 | (e,f) | 22 | ||||||||||||||||||
(11 | ) | Interest expense | (46 | ) | — | (46 | ) | (73 | ) | 2 | (h) | (71 | ) | |||||||||||||||
(12 | ) | Capitalized interest | 12 | — | 12 | 10 | — | 10 | ||||||||||||||||||||
(13 | ) | Total Other Expense | (27 | ) | 11 | (16 | ) | (170 | ) | 131 | (39 | ) | ||||||||||||||||
(14 | ) | Income (Loss) From Continuing Operations Before Income Taxes | (197 | ) | 39 | (158 | ) | (66 | ) | 180 | 114 | |||||||||||||||||
(15 | ) | Income tax benefits | (73 | ) | 15 | (a - h) | (58 | ) | (24 | ) | 68 | (a - h) | 44 | |||||||||||||||
(16 | ) | Income (Loss) From Continuing Operations | (124 | ) | 24 | (100 | ) | (42 | ) | 112 | 70 | |||||||||||||||||
(17 | ) | Discontinued operations (net of income taxes) | 86 | (78 | ) | (e) | 8 | 4 | — | 4 | ||||||||||||||||||
(18 | ) | Net Income (Loss) | $ | (38 | ) | $ | (54 | ) | $ | (92 | ) | $ | (38 | ) | $ | 112 | $ | 74 | ||||||||||
The above GAAP to Non-GAAP reconciliation provides additional transparency to our disclosures by providing specific line items to which the special items are recorded. Management consistently utilizes these reconciliations to assist in its analysis of historical and ongoing performance. See page 24 for GAAP to Operating (non-GAAP) EPS reconciliation. | ||||||||||||||||||||||||||||
(a) | Regulatory charges: 2013 ($0.02 per share), ($16) million included in "Other operating expenses". | |||||||||||||||||||||||||||
(b) | Plant deactivation costs: 2014 ($0.05 per share), ($23) million included in "Fuel"; ($11) million included in "Other operating expenses"; ($1) million included in "General taxes" . 2013 ($0.01 per share), ($6) million included in "Fuel"; ($1) million included in "Other operating expenses"; ($1) million included in "General taxes". | |||||||||||||||||||||||||||
(c) | Merger accounting - commodity contracts: 2014 ($0.02 per share), ($11) million included in "Fuel", $1 million included in "Other operating expenses". 2013 ($0.03 per share) $8 million included in "Revenues", ($12) million included in "Fuel", $1 million included in "Other operating expenses". | |||||||||||||||||||||||||||
(d) | Mark-to-market adjustments: 2014 (($0.03) per share), $17 million included in "Other operating expenses". 2013 ($0.01 per share), ($4) million included in "Other operating expenses". | |||||||||||||||||||||||||||
(e) | Impact of non-core asset sales/impairments: 2014 (($0.18) per share), $2 million included in "Investment income" and ($78) million included in "Discontinued operations (net of income taxes)". 2013 ($0.01 per share), $6 million included in "Investment income" | |||||||||||||||||||||||||||
(f) | Trust securities impairment: 2014, $2 million included in "Investment income". 2013 ($0.01 per share), $6 million included in "Investment income" | |||||||||||||||||||||||||||
(g) | Merger transaction / integration costs: 2013, ($1) million included in "Fuel". | |||||||||||||||||||||||||||
(h) | Loss on debt redemptions: 2014 ($0.01 per share), $7 million included in "Loss on debt redemptions". 2013 ($0.18 per share), $117 million included in "Loss on debt redemptions" and $2 million included in "Interest Expense". | |||||||||||||||||||||||||||
Per share amounts included above are based on the after tax effect of the above special items divided by the weighted average shares outstanding of 419 million shares in the first quarter of 2014 and 418 million shares in the first quarter of 2013. | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||
Operating - | Operating - | |||||||||||||||||||||||||||
GAAP | Special Items | Non-GAAP | GAAP | Special Items | Non-GAAP | |||||||||||||||||||||||
(1 | ) | Revenues | $ | (321 | ) | $ | — | $ | (321 | ) | $ | (295 | ) | $ | — | $ | (295 | ) | ||||||||||
Expenses | ||||||||||||||||||||||||||||
(2 | ) | Fuel | — | — | — | — | — | — | ||||||||||||||||||||
(3 | ) | Purchased power | (249 | ) | — | (249 | ) | (216 | ) | — | (216 | ) | ||||||||||||||||
(4 | ) | Other operating expenses | (88 | ) | — | (88 | ) | (89 | ) | — | (89 | ) | ||||||||||||||||
(5 | ) | Provision for depreciation | 11 | — | 11 | 11 | — | 11 | ||||||||||||||||||||
(6 | ) | Amortization of regulatory assets, net | — | — | — | — | — | — | ||||||||||||||||||||
(7 | ) | General taxes | 13 | — | 13 | 11 | — | 11 | ||||||||||||||||||||
(8 | ) | Total Expenses | (313 | ) | — | (313 | ) | (283 | ) | — | (283 | ) | ||||||||||||||||
(9 | ) | Operating Loss | (8 | ) | — | (8 | ) | (12 | ) | — | (12 | ) | ||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
(10 | ) | Investment loss | (7 | ) | — | (7 | ) | (10 | ) | — | (10 | ) | ||||||||||||||||
(11 | ) | Interest expense | (43 | ) | — | (43 | ) | (27 | ) | — | (27 | ) | ||||||||||||||||
(12 | ) | Capitalized interest | 5 | — | 5 | 3 | — | 3 | ||||||||||||||||||||
(13 | ) | Total Other Expense | (45 | ) | — | (45 | ) | (34 | ) | — | (34 | ) | ||||||||||||||||
(14 | ) | Loss From Continuing Operations Before Income Taxes | (53 | ) | — | (53 | ) | (46 | ) | — | (46 | ) | ||||||||||||||||
(15 | ) | Income tax benefits | (34 | ) | — | (34 | ) | (19 | ) | — | (19 | ) | ||||||||||||||||
(16 | ) | Loss From Continuing Operations | (19 | ) | — | (19 | ) | (27 | ) | — | (27 | ) | ||||||||||||||||
(17 | ) | Discontinued operations (net of income taxes) | — | — | — | — | — | |||||||||||||||||||||
(18 | ) | Net Loss | $ | (19 | ) | $ | — | $ | (19 | ) | $ | (27 | ) | $ | — | $ | (27 | ) | ||||||||||
The above GAAP to Non-GAAP reconciliation provides additional transparency to our disclosures by providing specific line items to which the special items are recorded. Management consistently utilizes these reconciliations to assist in its analysis of historical and ongoing performance. See page 24 for GAAP to Operating (non-GAAP) EPS reconciliation. | ||||||||||||||||||||||||||||
Earnings Per Share (EPS) | |||||||||||||||||||||||
(Reconciliation of GAAP to Operating (Non-GAAP) Earnings) | |||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||
Three Months Ended March 31, 2014 | Competitive | Other & | FirstEnergy | ||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | Corp. | |||||||||||||||||||
Distribution | Transmission | Services | Adjustments | Consolidated | |||||||||||||||||||
1Q 2014 Net Income - GAAP | $ | 214 | $ | 51 | $ | (38 | ) | $ | (19 | ) | $ | 208 | |||||||||||
1Q 2014 Basic EPS (avg. shares outstanding 419) | $ | 0.51 | $ | 0.12 | $ | (0.09 | ) | $ | (0.04 | ) | $ | 0.50 | |||||||||||
Excluding Special Items: | |||||||||||||||||||||||
Mark-to-market adjustments | — | — | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||
Regulatory charges | 0.02 | — | — | — | 0.02 | ||||||||||||||||||
Impact of non-core asset sales/impairments | — | — | (0.18 | ) | — | (0.18 | ) | ||||||||||||||||
Plant deactivation costs | — | — | 0.05 | — | 0.05 | ||||||||||||||||||
Merger accounting - commodity contracts | — | — | 0.02 | — | 0.02 | ||||||||||||||||||
Loss on debt redemptions | — | — | 0.01 | — | 0.01 | ||||||||||||||||||
Total Special Items | 0.02 | — | (0.13 | ) | — | (0.11 | ) | ||||||||||||||||
Basic EPS - Operating (Non-GAAP) | $ | 0.53 | $ | 0.12 | $ | (0.22 | ) | $ | (0.04 | ) | $ | 0.39 | |||||||||||
Three Months Ended March 31, 2013 | Competitive | Other & | FirstEnergy | ||||||||||||||||||||
Regulated | Regulated | Energy | Reconciling | Corp. | |||||||||||||||||||
Distribution | Transmission | Services | Adjustments | Consolidated | |||||||||||||||||||
1Q 2013 Net Income - GAAP | $ | 210 | $ | 51 | $ | (38 | ) | $ | (27 | ) | $ | 196 | |||||||||||
1Q 2013 Basic EPS (avg. shares outstanding 418) | $ | 0.50 | $ | 0.12 | $ | (0.09 | ) | $ | (0.06 | ) | $ | 0.47 | |||||||||||
Excluding Special Items: | |||||||||||||||||||||||
Mark-to-market adjustments | — | — | 0.01 | — | 0.01 | ||||||||||||||||||
Regulatory charges | 0.02 | — | 0.02 | — | 0.04 | ||||||||||||||||||
Trust securities impairment | — | — | 0.01 | — | 0.01 | ||||||||||||||||||
Impact of non-core asset sales/impairments | — | — | 0.01 | — | 0.01 | ||||||||||||||||||
Plant deactivation costs | — | — | 0.01 | — | 0.01 | ||||||||||||||||||
Merger accounting - commodity contracts | — | — | 0.03 | — | 0.03 | ||||||||||||||||||
Loss on debt redemptions | — | — | 0.18 | — | 0.18 | ||||||||||||||||||
Total Special Items | 0.02 | — | 0.27 | — | 0.29 | ||||||||||||||||||
Basic EPS - Operating (Non-GAAP) | $ | 0.52 | $ | 0.12 | $ | 0.18 | $ | (0.06 | ) | $ | 0.76 | ||||||||||||