Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured on Recurring Basis

The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy:

	September 30, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(In millions)
Derivative assets FTRs(1)	$	—	$	—	$	10	$	10	$	—	$	—	$	3	$	3
Equity securities	2		—		—		2		2		—		—		2
U.S. state debt securities	—		271		—		271		—		276		—		276
Cash, cash equivalents and restricted cash(2)	684		—		—		684		1,801		—		—		1,801
Other(3)	—		43		—		43		—		41		—		41
Total assets	$	686	$	314	$	10	$	1,010	$	1,803	$	317	$	3	$	2,123
Liabilities
Derivative liabilities FTRs(1)	$	—	$	—	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Net assets (liabilities)(4)	$	686	$	314	$	9	$	1,009	$	1,803	$	317	$	3	$	2,123

(1)Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.

(2)Restricted cash of $107 million and $67 million as of September 30, 2021 and December 31, 2020 respectively, primarily relates to cash collected from JCP&L, MP, PE and the Ohio Companies’ customers that is specifically used to service debt of their respective funding companies.

(3)Primarily consists of short-term investments.

(4)Excludes $1 million as of December 31, 2020, of net receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.

Quantitative Information for Level 3 Valuation

The following table provides quantitative information for FTRs contracts that are classified as Level 3 in the fair value hierarchy for the period ended September 30, 2021:

	Fair Value, Net (In millions)		Valuation Technique	Significant Input	Range					Weighted Average	Units
FTRs	$	9	Model	RTO auction clearing prices	$	0.50	to	$	3.30	$1.40	Dollars/MWH

Amortized Cost Basis, Unrealized Gains and Losses and Fair Values of Investments in Available-for-sale Securities

The following table summarizes the amortized cost basis, unrealized gains, unrealized losses and fair values of investments held in spent nuclear fuel disposal trusts as of September 30, 2021, and December 31, 2020:

	September 30, 2021(1)								December 31, 2020(2)
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(In millions)
Debt securities	$	277	$	2	$	(8)	$	271	$	275	$	7	$	(6)	$	276

(1) Excludes short-term cash investments of $12 million.

    (2) Excludes short-term cash investments of $9 million.

Proceeds from the Sale of Investments in Available-for-sale Securities, Realized Gains and Losses on Those Sales, and Interest and Dividend Income

Proceeds from the sale of investments in AFS debt securities, realized gains and losses on those sales and interest and dividend income for the three and nine months ended September 30, 2021 and 2020, were as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020(1)		2021		2020(1)
	(In millions)
Sale proceeds	$	16	$	6	$	29	$	45
Realized gains	—		—		—		4
Realized losses	(1)		—		(2)		(7)
Interest and dividend income	3		4		8		18

(1) Includes amounts associated with NDTs that were previously held by JCP&L, ME, and PN. See above for additional information.

Fair Value and Related Carrying Amounts of Long-term Debt and Other Long-term Obligations

The following table provides the approximate fair value and related carrying amounts of long-term debt, which excludes finance lease obligations and net unamortized debt issuance costs, unamortized fair value adjustments, premiums and discounts as of September 30, 2021 and December 31, 2020:

	September 30, 2021		December 31, 2020
	(In millions)
Carrying value	$	23,819	$	22,377
Fair value	$	27,018	$	25,465

Schedule of Long-term Debt Instruments

During the nine months ended September 30, 2021, the following long-term debt was issued:

Company	Issuance Date	Interest Rate	Maturity	Amount	Use of proceeds
FET	3/19/2021	2.866%	2028	$500 million	Repay short-term borrowings under the former FET Revolving Facility.
MP	4/9/2021	3.55%	2027	$200 million	Fund MP’s ongoing capital expenditures, for working capital needs and for other general corporate purposes.
TE	5/6/2021	2.65%	2028	$150 million	Repay short-term borrowings, fund TE’s ongoing capital expenditures and for other general corporate purposes.
MAIT	5/24/2021	4.10%	2028	$150 million	Repay borrowings outstanding under FirstEnergy’s regulated company money pool, fund MAIT’s ongoing capital expenditures, to fund working capital and for other general corporate purposes.
JCP&L	6/10/2021	2.75%	2032	$500 million	Repay $450 million of short-term debt under the former FE Revolving Facility, storm recovery and restoration costs and expenses, to fund JCP&L’s ongoing capital expenditures, working capital requirements and for other general corporate purposes.