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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative [Line Items]  
Fair value of derivatives instruments
The following table summarizes the fair value and classification of derivative instruments on FirstEnergy’s Consolidated Balance Sheets:

Derivative Assets
 
Derivative Liabilities
 
Fair Value
 
 
Fair Value
 
December 31,
2016
 
December 31,
2015
 
 
December 31,
2016
 
December 31,
2015
 
(In millions)
 
 
(In millions)
Current Assets - Derivatives
 
 
 
 
Current Liabilities - Derivatives
 
 
 
Commodity Contracts
$
133

 
$
150

 
    Commodity Contracts
$
(72
)
 
$
(94
)
FTRs
7

 
7

 
FTRs
(6
)
 
(12
)
 
140

 
157

 
 
(78
)
 
(106
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncurrent Liabilities - Adverse Power Contract Liability
 
 
 
Deferred Charges and Other Assets - Other
 
 
 
 
    NUGs(1)
(108
)
 
(137
)
Commodity Contracts
77

 
78

 
Noncurrent Liabilities - Other
 
 
 
FTRs
—

 
1

 
    Commodity Contracts
(52
)
 
(37
)
NUGs(1)
1

 
1

 
FTRs
—

 
(1
)
 
78

 
80

 
 
(160
)
 
(175
)
Derivative Assets
$
218

 
$
237

 
Derivative Liabilities
$
(238
)
 
$
(281
)


(1) 
NUG contracts are subject to regulatory accounting treatment and do not impact earnings.
Offsetting assets
The following tables summarize the fair value of derivative assets and derivative liabilities on FirstEnergy’s Consolidated Balance Sheets and the effect of netting arrangements and collateral on its financial position:

 
 
 
 
Amounts Not Offset in Consolidated Balance Sheet
 
 
December 31, 2016
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
210

 
$
(117
)
 
$
—

 
$
93

FTRs
 
7

 
(6
)
 
—

 
1

NUG contracts
 
1

 
—

 
—

 
1

 
 
$
218

 
$
(123
)
 
$
—

 
$
95

 
 
 
 
 
 
 
 
 
Derivative Liabilities 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(124
)
 
$
117

 
$
1

 
$
(6
)
FTRs
 
(6
)
 
6

 
—

 
—

NUG contracts
 
(108
)
 
—

 
—

 
(108
)
 
 
$
(238
)
 
$
123

 
$
1

 
$
(114
)
 
 
 
 
 
 
 
 
 


 
 
 
 
Amounts Not Offset in Consolidated Balance Sheet
 
 
December 31, 2015
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
228

 
$
(125
)
 
$
—

 
$
103

FTRs
 
8

 
(8
)
 
—

 
—

NUG contracts
 
1

 
—

 
—

 
1

 
 
$
237

 
$
(133
)
 
$
—

 
$
104

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(131
)
 
$
125

 
$
3

 
$
(3
)
FTRs
 
(13
)
 
8

 
5

 
—

NUG contracts
 
(137
)
 
—

 
—

 
(137
)
 
 
$
(281
)
 
$
133

 
$
8

 
$
(140
)
Offsetting liabilities
The following tables summarize the fair value of derivative assets and derivative liabilities on FirstEnergy’s Consolidated Balance Sheets and the effect of netting arrangements and collateral on its financial position:

 
 
 
 
Amounts Not Offset in Consolidated Balance Sheet
 
 
December 31, 2016
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
210

 
$
(117
)
 
$
—

 
$
93

FTRs
 
7

 
(6
)
 
—

 
1

NUG contracts
 
1

 
—

 
—

 
1

 
 
$
218

 
$
(123
)
 
$
—

 
$
95

 
 
 
 
 
 
 
 
 
Derivative Liabilities 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(124
)
 
$
117

 
$
1

 
$
(6
)
FTRs
 
(6
)
 
6

 
—

 
—

NUG contracts
 
(108
)
 
—

 
—

 
(108
)
 
 
$
(238
)
 
$
123

 
$
1

 
$
(114
)
 
 
 
 
 
 
 
 
 


 
 
 
 
Amounts Not Offset in Consolidated Balance Sheet
 
 
December 31, 2015
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
228

 
$
(125
)
 
$
—

 
$
103

FTRs
 
8

 
(8
)
 
—

 
—

NUG contracts
 
1

 
—

 
—

 
1

 
 
$
237

 
$
(133
)
 
$
—

 
$
104

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(131
)
 
$
125

 
$
3

 
$
(3
)
FTRs
 
(13
)
 
8

 
5

 
—

NUG contracts
 
(137
)
 
—

 
—

 
(137
)
 
 
$
(281
)
 
$
133

 
$
8

 
$
(140
)
Volume of First Energy's outstanding derivative transactions

The following table summarizes the volumes associated with FirstEnergy’s outstanding derivative transactions as of December 31, 2016:

 
Purchases
 
Sales
 
Net
 
Units
 
(In millions)
Power Contracts
18

 
47

 
(29
)
 
MWH
FTRs
28

 
—

 
28

 
MWH
NUGs
3

 
—

 
3

 
MWH
Natural Gas
29

 
29

 
—

 
mmBTU

The following table summarizes the volumes associated with FES' outstanding derivative transactions as of December 31, 2016:

 
Purchases
 
Sales
 
Net
 
Units
 
(In millions)
Power Contracts
18

 
47

 
(29
)
 
MWH
FTRs
22

 
—

 
22

 
MWH
Natural Gas
29

 
29

 
—

 
mmBTU
Effect of derivative instruments on statements of income and comprehensive income
The effect of active derivative instruments not in a hedging relationship on FirstEnergy's Consolidated Statements of Income (Loss) during 2016, 2015 and 2014 are summarized in the following tables:

 
Year Ended December 31
 
Commodity
Contracts
 
FTRs
 
Total
 
(In millions)
2016
 

 
 

 
 

Unrealized Gain (Loss) Recognized in:
 

 
 

 
 

Other Operating Expense
$
(14
)
 
$
5

 
$
(9
)
 
 
 
 
 
 
Realized Gain (Loss) Reclassified to:
 

 
 

 
 

Revenues
$
210

 
$
8

 
$
218

Purchased Power Expense
(131
)
 
—

 
(131
)
Other Operating Expense
—

 
(35
)
 
(35
)
Fuel Expense
(8
)
 
—

 
(8
)
 
 
 
 
 
 
 

 
Year Ended December 31
 
Commodity
Contracts
 
FTRs
 
Total
 
(In millions)
2015
 

 
 

 
 

Unrealized Gain (Loss) Recognized in:
 

 
 

 
 

Other Operating Expense
$
93

 
$
(20
)
 
$
73

 
 
 
 
 
 
Realized Gain (Loss) Reclassified to:
 

 
 

 
 

Revenues
$
111

 
$
50

 
$
161

Purchased Power Expense
(130
)
 
—

 
(130
)
Other Operating Expense
—

 
(49
)
 
(49
)
Fuel Expense
(34
)
 
—

 
(34
)
 
 
 
 
 
 


 
Year Ended December 31
 
Commodity
Contracts
 
FTRs
 
Interest Rate Swaps
 
Total
 
(In millions)
2014
 

 
 

 
 
 
 

Unrealized Gain (Loss) Recognized in:
 

 
 

 
 
 
 

Other Operating Expense
$
(86
)
 
$
22

 
$
—

 
$
(64
)
 
 
 
 
 
 
 
 
Realized Gain (Loss) Reclassified to:
 

 
 

 
 
 
 

Revenues
$
(6
)
 
$
68

 
$
—

 
$
62

Purchased Power Expense
365

 
—

 
—

 
365

Other Operating Expense
—

 
(44
)
 
—

 
(44
)
Fuel Expense
(6
)
 
—

 
—

 
(6
)
Interest Expense
—

 
—

 
14

 
14
Reconciliation of changes in the fair value of certain contracts that are deferred
The following table provides a reconciliation of changes in the fair value of FirstEnergy's derivative instruments subject to regulatory accounting during 2016 and 2015. Changes in the value of these contracts are deferred for future recovery from (or credit to) customers:

 
 
Year Ended December 31
Derivatives Not in a Hedging Relationship with Regulatory Offset
 
NUGs
 
Regulated FTRs
 
Total
 
 
(In millions)
Outstanding net asset (liability) as of January 1, 2016
 
$
(136
)
 
$
1

 
$
(135
)
Unrealized loss
 
(15
)
 
(3
)
 
(18
)
Purchases
 
—

 
4

 
4

Settlements
 
44

 
—

 
44

Outstanding net asset (liability) as of December 31, 2016
 
$
(107
)
 
$
2

 
$
(105
)
 
 
 
 
 
 
 
Outstanding net asset (liability) as of January 1, 2015
 
$
(151
)
 
$
11

 
$
(140
)
Unrealized loss
 
(47
)
 
(9
)
 
(56
)
Purchases
 
—

 
12

 
12

Settlements
 
62

 
(13
)
 
49

Outstanding net asset (liability) as of December 31, 2015
 
$
(136
)
 
$
1

 
$
(135
)
FES  
Derivative [Line Items]  
Fair value of derivatives instruments
The following table summarizes the fair value and classification of derivative instruments on FES' Consolidated Balance Sheets:

Derivative Assets
 
Derivative Liabilities
 
Fair Value
 
 
Fair Value
 
December 31,
2016
 
December 31,
2015
 
 
December 31,
2016
 
December 31,
2015
 
(In millions)
 
 
(In millions)
Current Assets - Derivatives
 
 
 
 
Current Liabilities - Derivatives
 
 
 
Commodity Contracts
$
133

 
$
150

 
    Commodity Contracts
$
(72
)
 
$
(94
)
FTRs
4

 
4

 
FTRs
(5
)
 
(10
)
 
137

 
154

 
 
(77
)
 
(104
)
 
 
 
 
 
 
 
 
 
Deferred Charges and Other Assets - Other
 
 
 
 
Noncurrent Liabilities - Other
 
 
 
Commodity Contracts
77

 
78

 
    Commodity Contracts
(52
)
 
(37
)
FTRs
—

 
1

 
FTRs
—

 
(1
)
 
77

 
79

 
 
(52
)
 
(38
)
Derivative Assets
$
214

 
$
233

 
Derivative Liabilities
$
(129
)
 
$
(142
)
 
 
 
 
 
 
 
 
 
Offsetting assets
The following tables summarize the fair value of derivative assets and derivative liabilities on FES’ Consolidated Balance Sheets and the effect of netting arrangements and collateral on its financial position:    
 
 
 
 
Amounts Not Offset in Consolidated Balance Sheet
 
 
December 31, 2016
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
210

 
$
(117
)
 
$
—

 
$
93

FTRs
 
4

 
(4
)
 
—

 
—

 
 
$
214

 
$
(121
)
 
$
—

 
$
93

 
 
 
 
 
 
 
 
 
Derivative Liabilities 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(124
)
 
$
117

 
$
1

 
$
(6
)
FTRs
 
(5
)
 
4

 
1

 
—

 
 
$
(129
)
 
$
121

 
$
2

 
$
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts Not Offset in Consolidated Balance Sheet
 
 
December 31, 2015
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
228

 
$
(125
)
 
$
—

 
$
103

FTRs
 
5

 
(5
)
 
—

 
—

 
 
$
233

 
$
(130
)
 
$
—

 
$
103

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(131
)
 
$
125

 
$
3

 
$
(3
)
FTRs
 
(11
)
 
5

 
6

 
—

 
 
$
(142
)
 
$
130

 
$
9

 
$
(3
)
Offsetting liabilities
The following tables summarize the fair value of derivative assets and derivative liabilities on FES’ Consolidated Balance Sheets and the effect of netting arrangements and collateral on its financial position:    
 
 
 
 
Amounts Not Offset in Consolidated Balance Sheet
 
 
December 31, 2016
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
210

 
$
(117
)
 
$
—

 
$
93

FTRs
 
4

 
(4
)
 
—

 
—

 
 
$
214

 
$
(121
)
 
$
—

 
$
93

 
 
 
 
 
 
 
 
 
Derivative Liabilities 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(124
)
 
$
117

 
$
1

 
$
(6
)
FTRs
 
(5
)
 
4

 
1

 
—

 
 
$
(129
)
 
$
121

 
$
2

 
$
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts Not Offset in Consolidated Balance Sheet
 
 
December 31, 2015
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
228

 
$
(125
)
 
$
—

 
$
103

FTRs
 
5

 
(5
)
 
—

 
—

 
 
$
233

 
$
(130
)
 
$
—

 
$
103

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(131
)
 
$
125

 
$
3

 
$
(3
)
FTRs
 
(11
)
 
5

 
6

 
—

 
 
$
(142
)
 
$
130

 
$
9

 
$
(3
)
Effect of derivative instruments on statements of income and comprehensive income
The effect of active derivative instruments not in a hedging relationship on FES' Consolidated Statements of Income (Loss) during 2016, 2015 and 2014 are summarized in the following tables:

 
Year Ended December 31
 
Commodity
Contracts
 
FTRs
 
Total
 
(In millions)
2016
 

 
 

 
 

Unrealized Gain (Loss) Recognized in:
 

 
 

 
 

Other Operating Expense
$
(14
)
 
$
5

 
$
(9
)
 
 
 
 
 
 
Realized Gain (Loss) Reclassified to:
 

 
 

 
 

Revenues
$
210

 
$
8

 
$
218

Purchased Power Expense
(131
)
 
—

 
(131
)
Other Operating Expense
—

 
(35
)
 
(35
)
 
 
 
 
 
 

 
Year Ended December 31
 
Commodity
Contracts
 
FTRs
 
Total
 
(In millions)
2015
 

 
 

 
 

Unrealized Gain (Loss) Recognized in:
 

 
 

 
 

Other Operating Expense
$
93

 
$
(19
)
 
$
74

 
 
 
 
 
 
Realized Gain (Loss) Reclassified to:
 

 
 

 
 

Revenues
$
111

 
$
49

 
$
160

Purchased Power Expense
(130
)
 
—

 
(130
)
Other Operating Expense
—

 
(49
)
 
(49
)
 
 
 
 
 
 

 
Year Ended December 31
 
Commodity
Contracts
 
FTRs
 
Total
 
(In millions)
2014
 

 
 

 
 

Unrealized Gain (Loss) Recognized in:
 

 
 

 
 

Other Operating Expense
$
(86
)
 
$
21

 
$
(65
)
 
 
 
 
 
 
Realized Gain (Loss) Reclassified to:
 

 
 

 
 

Revenues
$
(6
)
 
$
67

 
$
61

Purchased Power Expense
365

 
—

 
365

Other Operating Expense
—

 
(43
)
 
(43
)