Organization, Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies (Tables) [Abstract]

Net regulatory assets on FirstEnergy's and the Utility Registrants' Consolidated Balance Sheets are comprised of the following:



Regulatory Assets (Liabilities)	FirstEnergy			OE			CEI			TE			JCP&L			Met-Ed			Penelec
	(In millions)
December 31, 2011
Regulatory transition costs	$	608		$	—		$	—		$	—		$	424		$	105		$	79
Customer receivables for future income taxes	508			42			1			2			29			129			145
Nuclear decommissioning, decontamination and spent fuel disposal costs	(210		)	—			—			—			(44		)	(99		)	(67		)
Asset removal costs	(240		)	(34		)	(60		)	(23		)	(147		)	—			—
PJM transmission costs	340			(3		)	(3		)	(1		)	—			181			63
Deferred generation costs	382			125			224			37			—			(23		)	(11		)
Distribution costs	267			146			73			48			—			—			—
Other	375			87			60			7			146			36			—
Net regulatory assets	$	2,030		$	363		$	295		$	70		$	408		$	329		$	209

December 31, 2010
Regulatory transition costs	$	770		$	—		$	—		$	—		$	591		$	131		$	43
Customer receivables for future income taxes	328			52			2			1			30			113			130
Nuclear decommissioning, decontamination and spent fuel disposal costs	(184		)	—			—			—			(31		)	(92		)	(61		)
Asset removal costs	(237		)	(24		)	(47		)	(19		)	(147		)	—			—
PJM transmission costs	183			—			—			—			—			131			52
Deferred generation costs	386			125			226			35			—			—			—
Distribution costs	426			216			155			55			—			—			—
Other	158			34			34			1			71			13			(1		)
Net regulatory assets	$	1,830		$	403		$	370		$	73		$	514		$	296		$	163

Receivables from customers

Billed and unbilled customer receivables as of December 31, 2011 and 2010 are shown below.



Customer Receivables	FirstEnergy		FES		OE		CEI		TE⁽¹⁾		JCP&L		Met-Ed		Penelec
	(In millions)
December 31, 2011
Billed	$	800	$	220	$	67	$	40	$	24	$	117	$	79	$	72
Unbilled	725		204		96		52		25		118		60		54
Total	$	1,525	$	424	$	163	$	92	$	49	$	235	$	139	$	126
December 31, 2010
Billed	$	752	$	196	$	81	$	95	$	—	$	178	$	101	$	82
Unbilled	640		170		96		89		—		145		78		67
Total	$	1,392	$	366	$	177	$	184	$	—	$	323	$	179	$	149


⁽¹⁾	During 2011, TE's accounts receivable financing arrangement with Centerior Funding Corporation was terminated.

The maturity date of notes receivable due from affiliated companies is 2016.



	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In millions)
FirstEnergy	$	—	$	—	$	7	$	8
TE⁽¹⁾	81		92		104		118


⁽¹⁾	Represents TE's investment in the Shippingport Trust notes (see Note 6, Leases), which is eliminated during consolidation.

Reconciliation of Basic and Diluted Earnings per Share of Common Stock

The following table reconciles basic and diluted earnings per share of common stock:



Reconciliation of Basic and Diluted Earnings per Share of Common Stock	2011		2010		2009
	(In millions, except per share amounts)
Weighted average number of basic shares outstanding⁽¹⁾	399		304		304
Assumed exercise of dilutive stock options and awards⁽²⁾	2		1		2
Weighted average number of diluted shares outstanding⁽¹⁾	401		305		306

Earnings available to FirstEnergy Corp.	$	885	$	742	$	872

Basic earnings per share of common stock	$	2.22	$	2.44	$	2.87
Diluted earnings per share of common stock	$	2.21	$	2.42	$	2.85


⁽¹⁾	Includes 113 million shares issued to AE shareholders for the periods subsequent to the merger date (see Note 2, Merger).


⁽²⁾	The number of potentially dilutive securities not included in the calculation of diluted shares outstanding due to their antidilutive effect were not significant for the years ending December 31, 2011, 2010 or 2009.

Property, Plant and Equipment

Property, plant and equipment balances as of December 31, 2011 and 2010 were as follows:



	December 31, 2011									December 31, 2010
Property, Plant and Equipment	Unregulated			Regulated			Total			Unregulated			Regulated			Total
	(In millions)
In service	$	15,472		$	24,650		$	40,122		$	12,104		$	18,172		$	30,276
Less - Accumulated depreciation	(4,424		)	(7,415		)	(11,839		)	(4,255		)	(7,028		)	(11,283		)
Net plant in service	$	11,048		$	17,235		$	28,283		$	7,849		$	11,144		$	18,993

Annual Composite Depreciation Rate

The respective annual composite rates for FirstEnergy’s subsidiaries’ electric plant in 2011, 2010 and 2009 are shown in the following table:



	Annual Composite Depreciation Rate
	2011		2010			2009
FGCO	3.1	%	4.0	%		4.6	%
NGC	3.2	%	3.1	%		3.0	%
OE	2.9	%	2.9	%		3.1	%
CEI	3.2	%	3.2	%		3.3	%
TE	3.2	%	3.3	%		3.3	%
JCP&L	2.8	%	2.4	%		2.4	%
Met-Ed	2.5	%	2.5	%		2.5	%
Penelec	2.3	%	2.5	%		2.6	%
ATSI	2.4	%	2.4	%	—	2.4	%
Penn	2.2	%	2.2	%		2.4	%
AE Supply	3.4	%
MP	2.5	%
PE	2.8	%
WP	2.5	%
TrAIL	2.7	%

Summary of changes in goodwill

Total goodwill recognized by segment in FirstEnergy's Consolidated Balance Sheet is as follows:



Goodwill	Regulated Distribution		Competitive Energy Services		Regulated Independent Transmission		Other/Corporate		Consolidated
Balance as of December 31, 2010	$	5,551	$	24	$	—	$	—	$	5,575
Merger with Allegheny	—		866		—		—		866
Balance as of December 31, 2011	$	5,551	$	890	$	—	$	—	$	6,441

Summary of changes in FES' and Utilities' goodwill

Total goodwill recognized by FES and the Utility Registrants are as follows:



Goodwill	FES		CEI		TE		JCP&L		Met-Ed		Penelec
Balance as of December 31, 2011 and 2010	$	24	$	1,689	$	501	$	1,811	$	416	$	769

Accumulated Other Comprehensive Income (Loss)

AOCI, net of tax, included on FirstEnergy’s, FES’ and the Utility Registrants’ Consolidated Balance Sheets as of December 31, 2011 and 2010, is comprised of the following:



Accumulated Other Comprehensive Income	FirstEnergy			FES		OE		CEI		TE		JCP&L			Met-Ed			Penelec
	(In millions)
Net liability for unfunded retirement benefits	$	446		$	52	$	54	$	27	$	12	$	40		$	28		$	37
Unrealized gain on investments	19			16		—		—		3		—			—			—
Unrealized gain (loss) on derivative hedges	(39		)	8		—		—		—		(1		)	—			—
Balance, December 31, 2011	$	426		$	76	$	54	$	27	$	15	$	39		$	28		$	37

Net liability for unfunded retirement benefits	$	472		$	55	$	82	$	34	$	15	$	52		$	38		$	50
Unrealized gain on investments	7			6		—		—		—		—			—			—
Unrealized gain (loss) on derivative hedges	(54		)	1		—		—		—		(1		)	(1		)	—
Balance, December 31, 2010	$	425		$	62	$	82	$	34	$	15	$	51		$	37		$	50

Other comprehensive income (loss) reclassified to net income

OCI reclassified to net income during the three years ended December 31, 2011, 2010 and 2009 is shown in the following table.



	FirstEnergy			FES			OE		CEI		TE		JCP&L		Met-Ed		Penelec
	(In millions)
2011
Pensions and OPEB	$	169		$	18		$	28	$	12	$	5	$	25	$	17	$	23
Gain on investments	157			51			6		—		2		27		49		23
Loss on derivative hedges	(26		)	(26		)	—		—		—		—		—		—
	300			43			34		12		7		52		66		46
Income taxes related to reclassification to net income	118			16			12		4		3		21		27		19
Reclassification to net income	$	182		$	27		$	22	$	8	$	4	$	31	$	39	$	27
2010
Pensions and OPEB	$	87		$	46		$	23	$	2	$	3	$	5	$	8	$	15
Gain on investments	54			50			2		—		2		—		—		—
Loss on derivative hedges	(35		)	(24		)	—		—		—		—		—		—
	106			72			25		2		5		5		8		15
Income taxes related to reclassification to net income	40			26			9		—		2		3		3		6
Reclassification to net income	$	66		$	46		$	16	$	2	$	3	$	2	$	5	$	9
2009
Pensions and OPEB	$	68		$	37		$	17	$	2	$	4	$	8	$	7	$	12
Gain on investments	157			139			10		—		7		—		—		—
Loss on derivative hedges	(67		)	(27		)	—		—		—		—		—		—
	158			149			27		2		11		8		7		12
Income taxes related to reclassification to net income	60			56			10		1		4		3		3		5
Reclassification to net income	$	98		$	93		$	17	$	1	$	7	$	5	$	4	$	7

Schedule of Changes in Accounting Principles

The impact of this accounting policy change on the financial statements is summarized below:



FirstEnergy
CONSOLIDATED STATEMENTS OF INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions, except per share amounts)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	2,850		$	(154	)	$	2,696		$	2,697		$	(146	)	$	2,551
Pensions and OPEB mark-to-market adjustment	—			190			190			—			321			321
Provision for depreciation	746			22			768			736			21			757
Impairment of long-lived assets	384			4			388			6			—			6
Capitalized interest	165			—			165			130			1			131
Income before income taxes	1,242			(62		)	1,180			1,235			(195		)	1,040
Income taxes	482			(20		)	462			245			(61		)	184
Net Income	760			(42		)	718			990			(134		)	856
Earnings available to FirstEnergy Corp.	784			(42		)	742			1,006			(134		)	872
Basic earnings per share of common stock	$	2.58		$	(0.14	)	$	2.44		$	3.31		$	(0.44	)	$	2.87
Diluted earnings per share of common stock	$	2.57		$	(0.15	)	$	2.42		$	3.29		$	(0.44	)	$	2.85

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Net Income	$	760		$	(42	)	$	718		$	990		$	(134	)	$	856
Pension and other postretirement benefits	(258		)	38			(220		)	15			260			275
Income taxes (benefits) on other comprehensive income	(90		)	16			(74		)	27			101			128
Comprehensive income	636			(20		)	616			955			25			980
Comprehensive income attributable to FirstEnergy Corp.	660			(20		)	640			971			25			996

CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In millions)	As			Effect of			As
	Reported			Change			Revised
Property, plant & equipment - In service	$	29,451		$	825		$	30,276
Accumulated provision for depreciation	11,180			103			11,283
Total property, plant, and equipment	18,271			722			18,993
Regulatory assets	1,826			4			1,830
Total assets	34,805			726			35,531
Accumulated other comprehensive income (loss)	(1,539		)	1,964			425
Retained earnings	4,609			(1,525		)	3,084
Total common stockholders' equity	8,545			439			8,984
Total equity	8,513			439			8,952
Total capitalization	21,092			439			21,531
Accrued taxes	326			6			332
Accumulated deferred income taxes	2,879			281			3,160
Total liabilities and capitalization	34,805			726			35,531

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	4,495		$	(1,483	)	$	3,012		$	4,159		$	(1,349	)	$	2,810
Earnings available to Parent	784			(42		)	742			1,006			(134		)	872
Ending Balance	4,609			(1,525		)	3,084			4,495			(1,483		)	3,012

Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(1,415	)	$	1,942		$	527		$	(1,380	)	$	1,783		$	403
Pension and other postretirement benefits, net of taxes	(151		)	22			(129		)	(19		)	159			140
Ending Balance	(1,539		)	1,964			425			(1,415		)	1,942			527

CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	760		$	(42	)	$	718		$	990		$	(134	)	$	856
Provision for depreciation	746			22			768			736			21			757
Deferred income taxes and investment tax credits, net	470			(20		)	450			384			(61		)	323
Pensions and OPEB mark-to-market adjustment	—			190			190			—			321			321
Accrued compensation and retirement benefits	89			(154		)	(65		)	22			(146		)	(124		)
Impairments of long-lived assets	384			4			388			6			—			6
Other operating activities	45			—			45			30			(1		)	29



FES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	1,280		$	(50	)	$	1,230		$	1,183		$	(40	)	$	1,143
Pensions and OPEB mark-to-market adjustment	—			107			107			—			150			150
Provision for depreciation	243			3			246			259			3			262
Impairment of long-lived assets	384			4			388			6			—			6
Income before income taxes	420			(64		)	356			892			(113		)	779
Income taxes	151			(26		)	125			315			(34		)	281
Net Income	269			(38		)	231			577			(79		)	498
Pension and other postretirement benefits	(58		)	28			(30		)	14			54			68
Income taxes (benefits) on other comprehensive income	(11		)	14			3			(6		)	20			14
Comprehensive income	252			(24		)	228			566			(45		)	521

CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In millions)	As			Effect of			As
	Reported			Change			Revised
Property, plant & equipment - In service	$	11,321		$	106		$	11,427
Accumulated provision for depreciation	4,024			14			4,038
Total property, plant, and equipment	7,297			92			7,389
Total assets	12,063			92			12,155
Common stock	1,490			77			1,567
Accumulated other comprehensive income (loss)	(120		)	182			62
Retained earnings	2,418			(428		)	1,990
Total equity	3,788			(169		)	3,619
Total capitalization	6,969			(169		)	6,800
Accumulated deferred income taxes	58			9			67
Other noncurrent liabilities	244			252			496
Total liabilities and capitalization	12,063			92			12,155

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	2,149			(390		)	1,759			1,572			(311		)	1,261
Net income	269			(38		)	231			577			(79		)	498
Ending Balance	2,418			(428		)	1,990			2,149			(390		)	1,759

Accumulated Comprehensive Income (Loss)-
Beginning Balance	(103		)	168			65			(92		)	134			42
Pension and other postretirement benefits, net of taxes	(36		)	14			(22		)	6			34			40
Ending Balance	(120		)	182			62			(103		)	168			65

Common Stock-
Beginning Balance	1,468			77			1,545			1,464			77			1,541
Ending Balance	1,490			77			1,567			1,468			77			1,545

CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	269		$	(38	)	$	231		$	577		$	(79	)	$	498
Provision for depreciation	243			3			246			259			3			262
Deferred income taxes and investment tax credits, net	176			(26		)	150			220			(34		)	186
Pensions and OPEB mark-to-market adjustment	—			107			107			—			150			150
Accrued compensation and retirement benefits	25			(50		)	(25		)	6			(40		)	(34		)
Impairments of long-lived assets	384			4			388			6			—			6



OE
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	364		$	(22	)	$	342		$	461		$	(22	)	$	439
Pensions and OPEB mark-to-market adjustment	—			24			24			—			26			26
Provision for depreciation	88			3			91			89			3			92
Income before income taxes	238			(5		)	233			188			(7		)	181
Income taxes	81			(3		)	78			66			(4		)	62
Net Income	157			(2		)	155			122			(3		)	119
Pension and other postretirement benefits	(27		)	(4		)	(31		)	46			7			53
Income taxes (benefits) on other comprehensive income	(11		)	2			(9		)	16			3			19
Comprehensive income	141			(8		)	133			143			1			144

CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In millions)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	3,137		$	85		$	3,222
Accumulated provision for depreciation	1,208			10			1,218
Total property, plant, and equipment	1,929			75			2,004
Regulatory assets	400			3			403
Total assets	3,686			78			3,764
Common Stock	952			(39		)	913
Accumulated other comprehensive income (loss)	(179		)	261			82
Retained earnings	142			(254		)	(112		)
Total common stockholder's equity	915			(32		)	883
Total equity	921			(32		)	889
Total capitalization	2,073			(32		)	2,041
Accrued taxes	79			1			80
Accumulated deferred income taxes	696			41			737
Other noncurrent liabilities	197			68			265
Total liabilities and capitalization	3,686			78			3,764

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	30		$	(252	)	$	(222	)	$	254		$	(249	)	$	5
Earnings available to Parent	157			(2		)	155			122			(3		)	119
Ending Balance	142			(254		)	(112		)	30			(252		)	(222		)

Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(163	)	$	267		$	104		$	(184	)	$	263		$	79
Pension and other postretirement benefits, net of taxes	(16		)	(6		)	(22		)	26			4			30
Ending Balance	(179		)	261			82			(163		)	267			104

Common Stock-
Beginning Balance	$	1,155		$	(39	)	$	1,116		$	1,224		$	(39	)	$	1,185
Ending Balance	952			(39		)	913			1,155			(39		)	1,116

CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	157		$	(2	)	$	155		$	122		$	(3	)	$	119
Provision for depreciation	88			3			91			89			3			92
Deferred income taxes and investment tax credits, net	46			(3		)	43			41			(4		)	37
Pensions and OPEB mark-to-market adjustment	—			24			24			—			26			26
Accrued compensation and retirement benefits	(23		)	(22		)	(45		)	(14		)	(22		)	(36		)



CEI
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	130,018		$	(14,952	)	$	115,066		$	161,407		$	(12,840	)	$	148,567
Pensions and OPEB mark-to-market adjustment	—			11,945			11,945			—			38,329			38,329
Provision for depreciation	72,753			2,154			74,907			71,908			1,975			73,883
Capitalized interest	82			(19		)	63			173			88			261
Income before income taxes	111,848			834			112,682			(21,175		)	(27,376		)	(48,551		)
Income taxes	38,673			(3,546		)	35,127			(10,183		)	(9,611		)	(19,794		)
Net Income	73,175			4,380			77,555			(10,992		)	(17,765		)	(28,757		)
Earnings available to Parent	71,658			4,380			76,038			(12,706		)	(17,765		)	(30,471		)
Pension and other postretirement benefits	(26,955		)	(13,487		)	(40,442		)	(1,378		)	47,566			46,188
Income taxes (benefits) on other comprehensive income	(11,926		)	(2,806		)	(14,732		)	1,923			17,374			19,297
Comprehensive income	58,146			(6,301		)	51,845			(14,293		)	12,427			(1,866		)
Comprehensive income available to Parent	56,629			(6,301		)	50,328			(16,007		)	12,427			(3,580		)

CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In thousands)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	2,396,893		$	63,224		$	2,460,117
Accumulated provision for depreciation	932,246			12,371			944,617
Total property, plant, and equipment	1,464,647			50,853			1,515,500
Regulatory assets	370,403			(574		)	369,829
Total assets	4,303,849			50,279			4,354,128
Common Stock	887,087			(23,715		)	863,372
Accumulated other comprehensive income (loss)	(153,187		)	187,298			34,111
Retained earnings	568,906			(187,230		)	381,676
Total common stockholder's equity	1,302,806			(23,647		)	1,279,159
Total equity	1,320,823			(23,647		)	1,297,176
Total capitalization	3,173,353			(23,647		)	3,149,706
Accrued taxes	84,668			678			85,346
Accumulated deferred income taxes	622,771			24,521			647,292
Other noncurrent liabilities	100,161			48,727			148,888
Total liabilities and capitalization	4,303,849			50,279			4,354,128

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	597,248		$	(191,610	)	$	405,638		$	859,954		$	(173,845	)	$	686,109
Earnings available to Parent	71,658			4,380			76,038			(12,706		)	(17,765		)	(30,471		)
Ending Balance	568,906			(187,230		)	381,676			597,248			(191,610		)	405,638

Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(138,158	)	$	197,979		$	59,821		$	(134,857	)	$	167,787		$	32,930
Pension and other postretirement benefits, net of taxes	(15,029		)	(10,681		)	(25,710		)	(3,301		)	30,192			26,891
Ending Balance	(153,187		)	187,298			34,111			(138,158		)	197,979			59,821

Common Stock-
Beginning Balance	$	884,897		$	(23,715	)	$	861,182		$	878,785		$	(23,715	)	$	855,070
Ending Balance	887,087			(23,715		)	863,372			884,897			(23,715		)	861,182

CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	73,175		$	4,380		$	77,555		$	(10,992	)	$	(17,765	)	$	(28,757	)
Provision for depreciation	72,753			2,154			74,907			71,908			1,975			73,883
Deferred income taxes and investment tax credits, net	(20,068		)	(3,546		)	(23,614		)	(51,839		)	(9,611		)	(61,450		)
Pensions and OPEB mark-to-market adjustment	—			11,945			11,945			—			38,329			38,329
Accrued compensation and retirement benefits	12,724			(14,952		)	(2,228		)	8,514			(12,840		)	(4,326		)
Other operating activities	2,090			19			2,109			8,820			(88		)	8,732



TE
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	108,072		$	(6,177	)	$	101,895		$	142,203		$	(6,265	)	$	135,938
Pensions and OPEB mark-to-market adjustment	—			4,183			4,183			—			14,360			14,360
Provision for depreciation	31,613			548			32,161			30,727			454			31,181
Miscellaneous expense	(4,206		)	(81		)	(4,287		)	(2,436		)	267			(2,169		)
Capitalized interest	358			(54		)	304			169			114			283
Income before income taxes	50,693			1,311			52,004			31,917			(8,168		)	23,749
Income taxes	17,645			(1,889		)	15,756			7,939			(2,592		)	5,347
Net Income	33,048			3,200			36,248			23,978			(5,576		)	18,402
Earnings available to Parent	33,044			3,200			36,244			23,957			(5,576		)	18,381
Pension and other postretirement benefits	(655		)	(6,295		)	(6,950		)	(7,880		)	16,958			9,078
Income taxes (benefits) on other comprehensive income	(1,144		)	(277		)	(1,421		)	(6,630		)	6,097			(533		)
Comprehensive income	33,668			(2,818		)	30,850			7,547			5,285			12,832
Comprehensive income available to Parent	33,664			(2,818		)	30,846			7,526			5,285			12,811

CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In thousands)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	947,203		$	15,225		$	962,428
Accumulated provision for depreciation	446,401			4,130			450,531
Total property, plant, and equipment	500,802			11,095			511,897
Regulatory assets	72,059			529			72,588
Total assets	1,614,306			11,624			1,625,930
Other Paid-In Capital	178,182			(15,161		)	163,021
Accumulated other comprehensive income (loss)	(49,183		)	64,269			15,086
Retained earnings	117,534			(75,034		)	42,500
Total common stockholder's equity	393,543			(25,926		)	367,617
Total equity	396,132			(25,926		)	370,206
Total capitalization	996,625			(25,926		)	970,699
Accrued taxes	24,401			222			24,623
Accumulated deferred income taxes	132,019			8,696			140,715
Other noncurrent liabilities	65,090			28,632			93,722
Total liabilities and capitalization	1,614,306			11,624			1,625,930

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	214,490		$	(78,234	)	$	136,256		$	190,533		$	(72,658	)	$	117,875
Earnings available to Parent	33,044			3,200			36,244			23,957			(5,576		)	18,381
Ending Balance	117,534			(75,034		)	42,500			214,490			(78,234		)	136,256

Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(49,803	)	$	70,287		$	20,484		$	(33,372	)	$	59,426		$	26,054
Pension and other postretirement benefits, net of taxes	535			(6,018		)	(5,483		)	(7,006		)	10,861			3,855
Ending Balance	(49,183		)	64,269			15,086			(49,803		)	70,287			20,484

Other Paid-In Capital-
Beginning Balance	$	178,181		$	(15,161	)	$	163,020		$	175,879		$	(15,161	)	$	160,718
Ending Balance	178,182			(15,161		)	163,021			178,181			(15,161		)	163,020

CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	33,048		$	3,200		$	36,248		$	23,978		$	(5,576	)	$	18,402
Provision for depreciation	31,613			548			32,161			30,727			454			31,181
Deferred income taxes and investment tax credits, net	28,041			(1,889		)	26,152			2,003			(2,592		)	(589		)
Pensions and OPEB mark-to-market adjustment	—			4,183			4,183			—			14,360			14,360
Accrued compensation and retirement benefits	5,517			(6,177		)	(660		)	3,489			(6,265		)	(2,776		)
Other operating activities	(7,689		)	135			(7,554		)	7,135			(381		)	6,754



JCP&L
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	344		$	(21	)	$	323		$	310		$	(26	)	$	284
Pensions and OPEB mark-to-market adjustment	—			26			26			—			37			37
Provision for depreciation	108			5			113			103			5			108
Income before income taxes	340			(10		)	330			279			(16		)	263
Income taxes	148			(1		)	147			109			(4		)	105
Net Income	192			(9		)	183			170			(12		)	158
Pension and other postretirement benefits	(19		)	2			(17		)	(40		)	22			(18		)
Income taxes (benefits) on other comprehensive income	(9		)	(1		)	(10		)	(14		)	10			(4		)
Comprehensive income	182			(6		)	176			144			—			144

CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In millions)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	4,563		$	220		$	4,783
Accumulated provision for depreciation	1,657			25			1,682
Total property, plant, and equipment	2,906			195			3,101
Regulatory assets	513			1			514
Total assets	6,317			196			6,513
Accumulated other comprehensive income (loss)	(253		)	304			51
Retained earnings	227			(250		)	(23		)
Total common stockholder's equity	2,619			54			2,673
Total capitalization	4,389			54			4,443
Other	26			2			28
Accumulated deferred income taxes	716			77			793
Other noncurrent liabilities	171			63			234
Total liabilities and capitalization	6,317			196			6,513

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	200		$	(241	)	$	(41	)	$	157		$	(229	)	$	(72	)
Net Income	192			(9		)	183			170			(12		)	158
Ending Balance	227			(250		)	(23		)	200			(241		)	(41		)

Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(243	)	$	301		$	58		$	(217	)	$	289		$	72
Pension and other postretirement benefits, net of taxes	(10		)	3			(7		)	(26		)	12			(14		)
Ending Balance	(253		)	304			51			(243		)	301			58

CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In millions)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	192		$	(9	)	$	183		$	170		$	(12	)	$	158
Provision for depreciation	108			5			113			103			5			108
Deferred income taxes and investment tax credits, net	32			(1		)	31			43			(4		)	39
Pensions and OPEB mark-to-market adjustment	—			26			26			—			37			37
Accrued compensation and retirement benefits	14			(21		)	(7		)	13			(26		)	(13		)



Met-Ed
CONSOLIDATED STATEMENTS OF INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	418,569		$	(17,553	)	$	401,016		$	277,024		$	(17,889	)	$	259,135
Pensions and OPEB mark-to-market adjustment	—			6,993			6,993			—			16,044			16,044
Provision for depreciation	52,176			3,616			55,792			51,006			3,646			54,652
Miscellaneous income	5,901			—			5,901			4,033			74			4,107
Capitalized interest	653			—			653			159			22			181
Income before income taxes	100,873			6,944			107,817			84,117			(1,705		)	82,412
Income taxes	42,866			4,867			47,733			28,594			281			28,875
Net Income	58,007			2,077			60,084			55,523			(1,986		)	53,537
Pension and other postretirement benefits	289			(13,257		)	(12,968		)	(118		)	685			567
Income taxes (benefits) on other comprehensive income	(544		)	(7,008		)	(7,552		)	2,784			286			3,070
Comprehensive income	59,175			(4,172		)	55,003			52,956			(1,587		)	51,369

CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In thousands)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	2,247,853		$	145,648		$	2,393,501
Accumulated provision for depreciation	846,003			16,514			862,517
Total property, plant, and equipment	1,401,850			129,134			1,530,984
Regulatory assets	295,856			52			295,908
Total assets	3,044,670			129,186			3,173,856
Accumulated other comprehensive income (loss)	(142,383		)	179,807			37,424
Retained earnings	32,406			(138,967		)	(106,561		)
Total common stockholder's equity	1,087,099			40,840			1,127,939
Total capitalization	1,805,959			40,840			1,846,799
Accrued taxes	60,856			482			61,338
Accumulated deferred income taxes	473,009			53,458			526,467
Other noncurrent liabilities	53,689			34,406			88,095
Total liabilities and capitalization	3,044,670			129,186			3,173,856

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	4,399		$	(141,044	)	$	(136,645	)	$	(51,124	)	$	(139,058	)	$	(190,182	)
Net income	58,007			2,077			60,084			55,523			(1,986		)	53,537
Ending Balance	32,406			(138,967		)	(106,561		)	4,399			(141,044		)	(136,645		)

Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(143,551	)	$	186,056		$	42,505		$	(140,984	)	$	185,657		$	44,673
Pension and other postretirement benefits, net of taxes	1,355			(6,249		)	(4,894		)	(2,902		)	399			(2,503		)
Ending Balance	(142,383		)	179,807			37,424			(143,551		)	186,056			42,505

CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	58,007		$	2,077		$	60,084		$	55,523		$	(1,986	)	$	53,537
Provision for depreciation	52,176			3,616			55,792			51,006			3,646			54,652
Deferred income taxes and investment tax credits, net	29,528			4,867			34,395			66,965			281			67,246
Pensions and OPEB mark-to-market adjustment	—			6,993			6,993			—			16,044			16,044
Accrued compensation and retirement benefits	(2,474		)	(17,553		)	(20,027		)	5,876			(17,889		)	(12,013		)
Other operating activities	8,026			—			8,026			5,022			(96		)	4,926



Penelec
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Other operating expense	$	268,614		$	(21,648	)	$	246,966		$	209,156		$	(16,395	)	$	192,761
Pensions and OPEB mark-to-market adjustment	—			8,279			8,279			—			33,983			33,983
Provision for depreciation	61,141			4,553			65,694			61,317			4,320			65,637
Miscellaneous income	5,928			29			5,957			3,662			—			3,662
Capitalized interest	750			20			770			98			132			230
Income before income taxes	100,665			8,865			109,530			111,082			(21,776		)	89,306
Income taxes	41,173			5,167			46,340			45,694			(7,186		)	38,508
Net Income	59,492			3,698			63,190			65,388			(14,590		)	50,798
Pension and other postretirement benefits	(5,749		)	(14,672		)	(20,421		)	(51,421		)	50,601			(820		)
Income taxes (benefits) on other comprehensive income	(4,262		)	(7,532		)	(11,794		)	(17,252		)	22,083			4,831
Comprehensive income	58,070			(3,442		)	54,628			31,281			13,928			45,209

CONSOLIDATED BALANCE SHEETS	As of December 31, 2010
(In thousands)	As			Effect of			As
	Reported			Change			Revised
Utility plant - In service	$	2,532,629		$	181,912		$	2,714,541
Accumulated provision for depreciation	935,259			20,055			955,314
Total property, plant, and equipment	1,597,370			161,857			1,759,227
Regulatory assets	163,407			21			163,428
Total assets	3,062,669			161,878			3,224,547
Accumulated other comprehensive income (loss)	(163,526		)	213,908			50,382
Retained earnings	60,993			(151,872		)	(90,879		)
Total common stockholder's equity	899,538			62,036			961,574
Total capitalization	1,971,800			62,036			2,033,836
Accrued taxes	5,075			1,456			6,531
Accumulated deferred income taxes	371,877			65,655			437,532
Other noncurrent liabilities	47,889			32,731			80,620
Total liabilities and capitalization	3,062,669			161,878			3,224,547

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Retained Earnings-
Beginning Balance	$	91,501		$	(155,570	)	$	(64,069	)	$	76,113		$	(140,980	)	$	(64,867	)
Net Income	59,492			3,698			63,190			65,388			(14,590		)	50,798
Ending Balance	60,993			(151,872		)	(90,879		)	91,501			(155,570		)	(64,069		)

Accumulated Comprehensive Income (Loss)-
Beginning Balance	$	(162,104	)	$	221,048		$	58,944		$	(127,997	)	$	192,530		$	64,533
Pension and other postretirement benefits, net of taxes	(1,382		)	(7,140		)	(8,522		)	(34,177		)	28,518			(5,659		)
Ending Balance	(163,526		)	213,908			50,382			(162,104		)	221,048			58,944

CONSOLIDATED STATEMENTS OF CASH FLOW	Year Ended December 31, 2010									Year Ended December 31, 2009
(In thousands)	As			Effect of			As			As			Effect of			As
	Reported			Change			Revised			Reported			Change			Revised
Cash flows provided by operating activities:
Net income	$	59,492		$	3,698		$	63,190		$	65,388		$	(14,590	)	$	50,798
Provision for depreciation	61,141			4,553			65,694			61,317			4,320			65,637
Deferred income taxes and investment tax credits, net	133,885			5,167			139,052			63,065			(7,186		)	55,879
Pensions and OPEB mark-to-market adjustment	—			8,279			8,279			—			33,983			33,983
Accrued compensation and retirement benefits	8,206			(21,648		)	(13,442		)	3,866			(16,395		)	(12,529		)
Other operating activities	4,909			(49		)	4,860			3,236			(132		)	3,104