SUPPLEMENTAL GUARANTOR INFORMATION

In 2007, FGCO completed a sale and leaseback transaction for its 93.825% undivided interest in Bruce Mansfield Unit 1. FES has fully, unconditionally and irrevocably guaranteed all of FGCO’s obligations under each of the leases. The related lessor notes and pass through certificates are not guaranteed by FES or FGCO, but the notes are secured by, among other things, each lessor trust’s undivided interest in Unit 1, rights and interests under the applicable lease and rights and interests under other related agreements, including FES’ lease guaranty. This transaction is classified as an operating lease under GAAP for FES and FirstEnergy and as a financing for FGCO.

The condensed consolidating statements of income for the three months and nine months ended September 30, 2011 and 2010, consolidating balance sheets as of September 30, 2011 and December 31, 2010 and consolidating statements of cash flows for the nine months ended September 30, 2011 and 2010 for FES (parent and guarantor), FGCO and NGC (non-guarantor) are presented below. Investments in wholly owned subsidiaries are accounted for by FES using the equity method. Results of operations for FGCO and NGC are, therefore, reflected in FES’ investment accounts and earnings as if operating lease treatment was achieved. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions and the entries required to reflect operating lease treatment associated with the 2007 Bruce Mansfield Unit 1 sale and leaseback transaction.

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(Unaudited)



For the Three Months Ended September 30, 2011	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)

REVENUES	$	1,445		$	686		$	371		$	(1,035	)	$	1,467
OPERATING EXPENSES:
Fuel	6			323			57			—			386
Purchased power from affiliates	1,031			4			55			(1,035		)	55
Purchased power from non-affiliates	330			(2		)	—			—			328
Other operating expenses	164			100			129			12			405
Provision for depreciation	1			32			37			(1		)	69
General taxes	19			9			3			—			31
Impairment of long-lived assets	—			2			—			—			2
Total operating expenses	1,551			468			281			(1,024		)	1,276

OPERATING INCOME (LOSS)	(106		)	218			90			(11		)	191
OTHER INCOME (EXPENSE):
Investment income	—			—			28			—			28
Miscellaneous income (expense), including net income from equity investees	187			16			—			(194		)	9
Interest expense — affiliates	—			(1		)	(1		)	—			(2		)
Interest expense — other	(24		)	(26		)	(16		)	15			(51		)
Capitalized interest	—			3			5			—			8
Total other income (expense)	163			(8		)	16			(179		)	(8		)

INCOME BEFORE INCOME TAXES	57			210			106			(190		)	183
INCOME TAXES (BENEFITS)	(53		)	82			42			2			73

NET INCOME	$	110		$	128		$	64		$	(192	)	$	110

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(Unaudited)



For the Nine Months Ended September 30, 2011	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)

REVENUES	$	4,087		$	1,964		$	1,233		$	(3,133	)	$	4,151
OPERATING EXPENSES:
Fuel	13			883			149			—			1,045
Purchased power from affiliates	3,118			15			189			(3,133		)	189
Purchased power from non-affiliates	959			(5		)	—			—			954
Other operating expenses	485			333			460			37			1,315
Provision for depreciation	3			95			111			(4		)	205
General taxes	46			28			17			—			91
Impairment of long-lived assets	—			22			—			—			22
Total operating expenses	4,624			1,371			926			(3,100		)	3,821

OPERATING INCOME (LOSS)	(537		)	593			307			(33		)	330
OTHER INCOME (EXPENSE):
Investment income	1			1			48			—			50
Miscellaneous income, including net income from equity investees	543			18			—			(544		)	17
Interest expense — affiliates	(1		)	(2		)	(2		)	—			(5		)
Interest expense — other	(72		)	(82		)	(49		)	47			(156		)
Capitalized interest	—			13			15			—			28
Total other income (expense)	471			(52		)	12			(497		)	(66		)

INCOME (LOSS) BEFORE INCOME TAXES	(66		)	541			319			(530		)	264
INCOME TAXES (BENEFITS)	(232		)	201			122			7			98

NET INCOME	$	166		$	340		$	197		$	(537	)	$	166

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(Unaudited)



For the Three Months Ended September 30, 2010	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)

REVENUES	$	1,576		$	645		$	381		$	(1,013	)	$	1,589
OPERATING EXPENSES:
Fuel	13			329			49			—			391
Purchased power from affiliates	1,059			13			57			(1,013		)	116
Purchased power from non-affiliates	446			—			—			—			446
Other operating expenses	84			96			116			12			308
Provision for depreciation	1			24			36			(1		)	60
General taxes	6			9			7			—			22
Impairment of long-lived assets	—			292			—			—			292
Total operating expenses	1,609			763			265			(1,002		)	1,635

OPERATING INCOME (LOSS)	(33		)	(118		)	116			(11		)	(46		)

OTHER INCOME (EXPENSE):
Investment income	1			—			29			—			30
Miscellaneous income, including net income from equity investees	5			2			—			(4		)	3
Interest expense — affiliates	—			(2		)	—			—			(2		)
Interest expense — other	(25		)	(26		)	(15		)	16			(50		)
Capitalized interest	—			19			4			—			23
Total other income (expense)	(19		)	(7		)	18			12			4
INCOME (LOSS) BEFORE INCOME TAXES	(52		)	(125		)	134			1			(42		)
INCOME TAXES (BENEFITS)	(15		)	(44		)	52			2			(5		)

NET INCOME (LOSS)	$	(37	)	$	(81	)	$	82		$	(1	)	$	(37	)

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(Unaudited)



For the Nine Months Ended September 30, 2010	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)

REVENUES	$	4,250		$	1,794		$	1,146		$	(2,887	)	$	4,303
OPERATING EXPENSES:
Fuel	26			911			125			—			1,062
Purchased power from affiliates	2,940			26			167			(2,887		)	246
Purchased power from non-affiliates	1,206			—			—			—			1,206
Other operating expenses	218			290			372			36			916
Provision for depreciation	3			78			109			(4		)	186
General taxes	18			32			21			—			71
Impairment of long-lived assets	—			294			—			—			294
Total operating expenses	4,411			1,631			794			(2,855		)	3,981

OPERATING INCOME (LOSS)	(161		)	163			352			(32		)	322
OTHER INCOME (EXPENSE):
Investment income	4			1			39			—			44
Miscellaneous income, including net income from equity investees	323			2			—			(315		)	10
Interest expense to affiliates	—			(6		)	(1		)	—			(7		)
Interest expense — other	(72		)	(81		)	(46		)	48			(151		)
Capitalized interest	1			55			11			—			67
Total other income (expense)	256			(29		)	3			(267		)	(37		)

INCOME BEFORE INCOME TAXES	95			134			355			(299		)	285
INCOME TAXES (BENEFITS)	(82		)	52			130			8			108

NET INCOME	$	177		$	82		$	225		$	(307	)	$	177

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)



As of September 30, 2011	FES		FGCO		NGC		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	6	$	—	$	—		$	6
Receivables-
Customers	452		—		—		—			452
Affiliated companies	438		504		234		(698		)	478
Other	22		21		18		—			61
Notes receivable from affiliated companies	262		921		2		(845		)	340
Materials and supplies, at average cost	58		224		195		—			477
Derivatives	170		—		—		—			170
Prepayments and other	49		12		—		—			61
	1,451		1,688		449		(1,543		)	2,045

PROPERTY, PLANT AND EQUIPMENT:
In service	82		6,111		5,632		(385		)	11,440
Less — Accumulated provision for depreciation	17		2,097		2,379		(179		)	4,314
	65		4,014		3,253		(206		)	7,126
Construction work in progress	13		216		589		—			818
Property, plant and equipment held for sale, net	—		—		—		—			—
	78		4,230		3,842		(206		)	7,944
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,187		—			1,187
Investment in affiliated companies	5,486		—		—		(5,486		)	—
Other	1		9		—		—			10
	5,487		9		1,187		(5,486		)	1,197

DEFERRED CHARGES AND OTHER ASSETS:
Accumulated deferred income tax benefits	12		286		—		(298		)	—
Customer intangibles	126		—		—		—			126
Goodwill	24		—		—		—			24
Property taxes	—		16		25		—			41
Unamortized sale and leaseback costs	—		—		—		68			68
Derivatives	136		—		—		—			136
Other	39		102		10		(68		)	83
	337		404		35		(298		)	478
	$	7,353	$	6,331	$	5,513	$	(7,533	)	$	11,664

LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	1	$	385	$	512	$	(21	)	$	877
Short-term borrowings-
Affiliated companies	750		70		25		(845		)	—
Accounts payable-
Affiliated companies	689		268		159		(691		)	425
Other	80		90		—		—			170
Derivatives	175		—		—		—			175
Other	75		182		50		16			323
	1,770		995		746		(1,541		)	1,970
CAPITALIZATION:
Total equity	3,958		2,858		2,608		(5,466		)	3,958
Long-term debt and other long-term obligations	1,484		1,942		706		(1,240		)	2,892
	5,442		4,800		3,314		(6,706		)	6,850

NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		934			934
Accumulated deferred income taxes	—		—		523		(220		)	303
Asset retirement obligations	—		27		862		—			889
Retirement benefits	51		248		—		—			299
Lease market valuation liability	—		183		—		—			183
Derivatives	67		—		—		—			67
Other	23		78		68		—			169
	141		536		1,453		714			2,844
	$	7,353	$	6,331	$	5,513	$	(7,533	)	$	11,664

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)



As of December 31, 2010	FES		FGCO		NGC		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	9	$	—	$	—		$	9
Receivables-
Customers	366		—		—		—			366
Affiliated companies	333		357		126		(338		)	478
Other	21		56		13		—			90
Notes receivable from affiliated companies	34		189		174		—			397
Materials and supplies, at average cost	41		276		228		—			545
Derivatives	182		—		—		—			182
Prepayments and other	48		10		1		—			59
	1,025		897		542		(338		)	2,126

PROPERTY, PLANT AND EQUIPMENT:
In service	96		6,198		5,412		(385		)	11,321
Less — Accumulated provision for depreciation	17		2,020		2,162		(175		)	4,024
	79		4,178		3,250		(210		)	7,297
Construction work in progress	9		520		534		—			1,063
	88		4,698		3,784		(210		)	8,360

INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,146		—			1,146
Investment in affiliated companies	4,942		—		—		(4,942		)	—
Other	—		12		—		—			12
	4,942		12		1,146		(4,942		)	1,158
DEFERRED CHARGES AND OTHER ASSETS:
Accumulated deferred income tax benefits	43		412		—		(455		)	—
Customer intangibles	134		—		—		—			134
Goodwill	24		—		—		—			24
Property taxes	—		16		25		—			41
Unamortized sale and leaseback costs	—		10		—		63			73
Derivatives	98		—		—		—			98
Other	21		71		14		(58		)	48
	320		509		39		(450		)	418
	$	6,375	$	6,116	$	5,511	$	(5,940	)	$	12,062
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	101	$	419	$	632	$	(20	)	$	1,132
Short-term borrowings-
Affiliated companies	—		12		—		—			12
Accounts payable-
Affiliated companies	351		213		250		(347		)	467
Other	139		102		—		—			241
Derivatives	266		—		—		—			266
Other	56		183		46		37			322
	913		929		928		(330		)	2,440

CAPITALIZATION:
Common stockholder’s equity	3,788		2,515		2,414		(4,929		)	3,788
Long-term debt and other long-term obligations	1,519		2,119		793		(1,250		)	3,181
	5,307		4,634		3,207		(6,179		)	6,969

NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		959			959
Accumulated deferred income taxes	—		—		448		(390		)	58
Asset retirement obligations	—		27		865		—			892
Retirement benefits	48		237		—		—			285
Lease market valuation liability	—		217		—		—			217
Derivatives	81		—		—		—			81
Other	26		72		63		—			161
	155		553		1,376		569			2,653
	$	6,375	$	6,116	$	5,511	$	(5,940	)	$	12,062

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)



For the Nine Months Ended September 30, 2011	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)

NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(367	)	$	539		$	374		$	(9	)	$	537
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Long-term debt	—			140			107			—			247
Short-term borrowings, net	750			59			25			(834		)	—
Redemptions and Repayments-
Long-term debt	(136		)	(351		)	(313		)	9			(791		)
Short-term borrowings, net	—			—			—			(12		)	(12		)
Other	(8		)	(1		)	(2		)	1			(10		)
Net cash provided from (used for) financing activities	606			(153		)	(183		)	(836		)	(566		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(8		)	(143		)	(322		)	—			(473		)
Proceeds from asset sales	9			510			—			—			519
Sales of investment securities held in trusts	—			—			1,613			—			1,613
Purchases of investment securities held in trusts	—			—			(1,654		)	—			(1,654		)
Loans to affiliated companies, net	(228		)	(732		)	172			845			57
Customer acquisition costs	(2		)	—			—			—			(2		)
Other	(10		)	(24		)	—			—			(34		)
Net cash provided from (used for) investing activities	(239		)	(389		)	(191		)	845			26
Net change in cash and cash equivalents	—			(3		)	—			—			(3		)
Cash and cash equivalents at beginning of period	—			9			—			—			9
Cash and cash equivalents at end of period	$	—		$	6		$	—		$	—		$	6

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)



For the Nine Months Ended September 30, 2010	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)

NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(289	)	$	402		$	520		$	(9	)	$	624
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Long-term debt	—			250			—			—			250
Redemptions and Repayments-
Long-term debt	(1		)	(261		)	(43		)	9			(296		)
Other	(1		)	—			—			—			(1		)
Net cash used for financing activities	(2		)	(11		)	(43		)	9			(47		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(5		)	(417		)	(379		)	—			(801		)
Proceeds from asset sales	—			117			—			—			117
Sales of investment securities held in trusts	—			—			1,478			—			1,478
Purchases of investment securities held in trusts	—			—			(1,511		)	—			(1,511		)
Loans to affiliated companies, net	406			(89		)	(14		)	—			303
Customer acquisition costs	(110		)	—			—			—			(110		)
Leasehold improvement payments to affiliated companies	—			—			(51		)	—			(51		)
Other	—			(2		)	—			—			(2		)
Net cash provided from (used for) investing activities	291			(391		)	(477		)	—			(577		)
Net change in cash and cash equivalents	—			—			—			—			—
Cash and cash equivalents at beginning of period	—			—			—			—			—
Cash and cash equivalents at end of period	$	—		$	—		$	—		$	—		$	—