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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
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,
2017
 
December 31,
2016
 
 
December 31,
2017
 
December 31,
2016
 
(In millions)
 
 
(In millions)
Current Assets - Derivatives
 
 
 
 
Current Liabilities - Other
 
 
 
Commodity Contracts
$
33

 
$
133

 
    Commodity Contracts
$
(27
)
 
$
(72
)
FTRs
4

 
7

 
FTRs
(1
)
 
(6
)
 
37

 
140

 
 
(28
)
 
(78
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncurrent Liabilities - Adverse Power Contract Liability
 
 
 
Deferred Charges and Other Assets - Other
 
 
 
 
    NUGs(1)
(79
)
 
(108
)
Commodity Contracts
—

 
77

 
Noncurrent Liabilities - Other
 
 
 
FTRs
—

 
—

 
    Commodity Contracts
—

 
(52
)
NUGs(1)
—

 
1

 
FTRs
—

 
—

 
—

 
78

 
 
(79
)
 
(160
)
Derivative Assets
$
37

 
$
218

 
Derivative Liabilities
$
(107
)
 
$
(238
)


(1) 
NUG contracts are subject to regulatory accounting treatment and changes in market values 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, 2017
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
33

 
$
(19
)
 
$
—

 
$
14

FTRs
 
4

 
(1
)
 
—

 
3

 
 
$
37

 
$
(20
)
 
$
—

 
$
17

 
 
 
 
 
 
 
 
 
Derivative Liabilities 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(27
)
 
$
19

 
$
3

 
$
(5
)
FTRs
 
(1
)
 
1

 
—

 
—

NUG contracts
 
(79
)
 
—

 
—

 
(79
)
 
 
$
(107
)
 
$
20

 
$
3

 
$
(84
)
 
 
 
 
 
 
 
 
 


 
 
 
 
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
)
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, 2017
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
33

 
$
(19
)
 
$
—

 
$
14

FTRs
 
4

 
(1
)
 
—

 
3

 
 
$
37

 
$
(20
)
 
$
—

 
$
17

 
 
 
 
 
 
 
 
 
Derivative Liabilities 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(27
)
 
$
19

 
$
3

 
$
(5
)
FTRs
 
(1
)
 
1

 
—

 
—

NUG contracts
 
(79
)
 
—

 
—

 
(79
)
 
 
$
(107
)
 
$
20

 
$
3

 
$
(84
)
 
 
 
 
 
 
 
 
 


 
 
 
 
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
)
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, 2017:

 
Purchases
 
Sales
 
Net
 
Units
 
(In millions)
Power Contracts
2

 
11

 
(9
)
 
MWH
FTRs
9

 
—

 
9

 
MWH
NUGs
2

 
—

 
2

 
MWH

The following table summarizes the volumes associated with FES' outstanding derivative transactions as of December 31, 2017:

 
Purchases
 
Sales
 
Net
 
Units
 
(In millions)
Power Contracts
2

 
11

 
(9
)
 
MWH
FTRs
5

 
—

 
5

 
MWH
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 2017, 2016 and 2015 are summarized in the following tables:

 
Year Ended December 31
 
Commodity
Contracts
 
FTRs
 
Total
 
(In millions)
2017
 

 
 

 
 

Unrealized Gain (Loss) Recognized in:
 

 
 

 
 

Other Operating Expense
$
(82
)
 
$
1

 
$
(81
)
 
 
 
 
 
 
Realized Gain (Loss) Reclassified to:
 

 
 

 
 

Revenues
$
54

 
$
(4
)
 
$
50

Purchased Power Expense
(17
)
 
—

 
(17
)
Other Operating Expense
—

 
(14
)
 
(14
)
Fuel Expense
5

 
—

 
5

 
 
 
 
 
 
 

 
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
)
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 2017 and 2016. 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, 2017
 
$
(107
)
 
$
2

 
$
(105
)
Unrealized loss
 
(9
)
 
(1
)
 
(10
)
Purchases
 
—

 
3

 
3

Settlements
 
37

 
(1
)
 
36

Outstanding net asset (liability) as of December 31, 2017
 
$
(79
)
 
$
3

 
$
(76
)
 
 
 
 
 
 
 
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
)
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,
2017
 
December 31,
2016
 
 
December 31,
2017
 
December 31,
2016
 
(In millions)
 
 
(In millions)
Current Assets - Derivatives
 
 
 
 
Current Liabilities - Derivatives
 
 
 
Commodity Contracts
$
33

 
$
133

 
    Commodity Contracts
$
(23
)
 
$
(72
)
FTRs
1

 
4

 
FTRs
(1
)
 
(5
)
 
34

 
137

 
 
(24
)
 
(77
)
 
 
 
 
 
 
 
 
 
Deferred Charges and Other Assets - Derivatives
 
 
 
 
Noncurrent Liabilities - Other
 
 
 
Commodity Contracts
—

 
77

 
    Commodity Contracts
—

 
(52
)
 
—

 
77

 
 
—

 
(52
)
Derivative Assets
$
34

 
$
214

 
Derivative Liabilities
$
(24
)
 
$
(129
)
 
 
 
 
 
 
 
 
 
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, 2017
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
33

 
$
(19
)
 
$
—

 
$
14

FTRs
 
1

 
(1
)
 
—

 
—

 
 
$
34

 
$
(20
)
 
$
—

 
$
14

 
 
 
 
 
 
 
 
 
Derivative Liabilities 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(23
)
 
$
19

 
$
—

 
$
(4
)
FTRs
 
(1
)
 
1

 
—

 
—

 
 
$
(24
)
 
$
20

 
$
—

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)
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, 2017
 
Fair Value
 
Derivative Instruments
 
Cash Collateral (Received)/Pledged
 
Net Fair Value
 
 
(In millions)
Derivative Assets
 
 
 
 
 
 
 
 
Commodity contracts
 
$
33

 
$
(19
)
 
$
—

 
$
14

FTRs
 
1

 
(1
)
 
—

 
—

 
 
$
34

 
$
(20
)
 
$
—

 
$
14

 
 
 
 
 
 
 
 
 
Derivative Liabilities 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(23
)
 
$
19

 
$
—

 
$
(4
)
FTRs
 
(1
)
 
1

 
—

 
—

 
 
$
(24
)
 
$
20

 
$
—

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)
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 2017, 2016 and 2015 are summarized in the following tables:

 
Year Ended December 31
 
Commodity
Contracts
 
FTRs
 
Total
 
(In millions)
2017
 

 
 

 
 

Unrealized Gain (Loss) Recognized in:
 

 
 

 
 

Other Operating Expense
$
(79
)
 
$
1

 
$
(78
)
 
 
 
 
 
 
Realized Gain (Loss) Reclassified to:
 

 
 

 
 

Revenues
$
54

 
$
(4
)
 
$
50

Purchased Power Expense
(17
)
 
—

 
(17
)
Other Operating Expense
—

 
(14
)
 
(14
)

 
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
)