Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of derivatives instruments

The following tables summarize the fair value of derivative instruments on FirstEnergy’s Consolidated Balance Sheets:

Derivatives not designated as hedging instruments:
Derivative Assets					Derivative Liabilities
	Fair Value					Fair Value
	December 31, 2012		December 31, 2011			December 31, 2012			December 31, 2011
	(In millions)					(In millions)
Power Contracts					Power Contracts
Current Assets	$	153	$	185	Current Liabilities	$	(115	)	$	(196	)
Noncurrent Assets	99		79		Noncurrent Liabilities	(36		)	(51		)
FTRs					FTRs
Current Assets	7		1		Current Liabilities	(7		)	(22		)
Noncurrent Assets	1		—		Noncurrent Liabilities	(2		)	(1		)
NUGs - Noncurrent	36		56		NUGs - Noncurrent	(290		)	(349		)
LCAPP - Noncurrent	—		—		LCAPP - Noncurrent	(144		)	—
Other Current Assets	—		—		Other Current Liabilities	(3		)	—
	$	296	$	321		$	(597	)	$	(619	)

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, 2012:

	Purchases	Sales	Net		Units
	(In millions)
Power Contracts	23	44	(21	)	MWH
FTRs	46	—	46		MWH
NUGs	15	—	15		MWH
LCAPP	408	—	408		MW
Natural Gas	25	—	25		BTUs

Effect of derivative instruments on statements of income and comprehensive income

The effect of derivative instruments on the Consolidated Statements of Income during 2012 and 2011, are summarized in the following tables:

	Years Ended December 31
	Power Contracts			FTRs			Interest Rate Swaps			Other			Total
	(In millions)
Derivatives in a Hedging Relationship
2012
Loss Recognized in AOCI	$	(9	)	$	—		$	—		$	—		$	(9	)
2011
Gain Recognized in AOCI	$	11		$	—		$	1		$	—		$	12
Effective Gain (Loss) Reclassified to:
Purchased Power Expense	16			—			—			—			16
Revenues	(12		)	—			—			—			(12		)
Derivatives Not in a Hedging Relationship
2012
Unrealized Gain (Loss) Recognized in:
Other Operating Expense	$	92		$	13		$	—		$	(3	)	$	102
Realized Gain (Loss) Reclassified to:
Purchased Power Expense	$	(277	)	$	—		$	—		$	—		$	(277	)
Revenues	302			22			—			—			324
Other Operating Expense	—			(61		)	—			—			(61		)
Fuel Expense	—			—			—			5			5
Interest Expense	—			—			6			—			6
2011
Unrealized Gain (Loss) Recognized in:
Purchased Power Expense	$	120		$	—		$	—		$	—		$	120
Revenues	(3		)	—			—			—			(3		)
Other Operating Expense	(52		)	(6		)	2			—			(56		)
Realized Gain (Loss) Reclassified to:
Purchased Power Expense	$	(159	)	$	—		$	—		$	—		$	(159	)
Revenues	16			42			(2		)	—			56
Other Operating Expense	—			(100		)	—			—			(100		)

Derivative instruments subject to regulatory accounting

The unrealized and realized gains (losses) on FirstEnergy’s derivative instruments subject to regulatory accounting during 2012 and 2011, are summarized in the following tables:

	Years Ended December 31
	NUGs			LCAPP			Regulated FTRs			Other			Total
	(In millions)
Derivatives Not in a Hedging Relationship with Regulatory Offset
2012
Unrealized Gain (Loss) on Derivative Instrument	$	(201	)	$	(144	)	$	1		$	—		$	(344	)
Realized Gain on Derivative Instrument	240			—			7			—			247
2011
Unrealized Loss on Derivative Instrument	$	(202	)	$	—		$	(5	)	$	—		$	(207	)
Realized Gain (Loss) on Derivative Instrument	254			—			(3		)	(10		)	241

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 certain contracts that are deferred for future recovery from (or credit to) customers during 2012 and 2011:

	Years Ended December 31
Derivatives Not in a Hedging Relationship with Regulatory Offset(1)	NUGs			LCAPP			Regulated FTRs			Other			Total
	(In millions)
Outstanding net liability as of January 1, 2012	$	(293	)	$	—		$	(8	)	$	—		$	(301	)
Additions/Change in value of existing contracts	(201		)	(144		)	1			—			(344		)
Settled contracts	240			—			7			—			247
Outstanding net liability as of December 31, 2012	$	(254	)	$	(144	)	$	—		$	—		$	(398	)
Outstanding net asset (liability) as of January 1, 2011	$	(345	)	$	—		$	—		$	10		$	(335	)
Additions/Change in value of existing contracts	(202		)	—			(5		)	—			(207		)
Settled contracts	254			—			(3		)	(10		)	241
Outstanding net liability as of December 31, 2011	$	(293	)	$	—		$	(8	)	$	—		$	(301	)

⁽¹⁾  Changes in the fair value of certain contracts are deferred for future recovery from (or credited to) customers.