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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value of Financial Instruments [Line Items]

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 and other long-term obligations, excluding capital lease obligations and net unamortized premiums and discounts, as of September 30, 2011, and December 31, 2010:



	September 30, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In millions)
FirstEnergy⁽¹⁾	$	17,870	$	19,703	$	13,928	$	14,845
FES	3,738		3,975		4,279		4,403
OE	1,158		1,404		1,159		1,321
CEI	1,831		2,096		1,853		2,035
TE	600		720		600		653
JCP&L	1,787		2,074		1,810		1,962
Met-Ed	729		818		742		821
Penelec	1,120		1,245		1,120		1,189


⁽¹⁾	Includes debt assumed in the AE merger (see Note 2) with a carrying value and a fair value as of September 30, 2011, of $4,375 million and $4,515 million, respectively, and debt classified as liabilities related to assets pending sale (see Note 15) with a carrying value and a fair value as of September 30, 2011, of $363 million.

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 and losses and fair values of investments held in NDT, nuclear fuel disposal trusts and NUG trusts as of September 30, 2011 and December 31, 2010:



	September 30, 2011⁽¹⁾								December 31, 2010⁽²⁾
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(In millions)
Debt securities
FirstEnergy	$	689	$	11	$	—	$	700	$	1,699	$	31	$	—	$	1,730
FES	227		1		—		228		980		13		—		993
OE	—		—		—		—		123		1		—		124
TE	45		—		—		45		42		—		—		42
JCP&L	253		8		—		261		281		9		—		290
Met-Ed	41		—		—		41		127		4		—		131
Penelec	123		2		—		125		145		4		—		149
Equity securities
FirstEnergy	$	174	$	6	$	—	$	180	$	268	$	69	$	—	$	337
FES	83		4		—		87		—		—		—		—
TE	23		1		—		24		—		—		—		—
JCP&L	19		—		—		19		80		17		—		97
Met-Ed	30		1		—		31		125		35		—		160
Penelec	19		—		—		19		63		16		—		79


⁽¹⁾	Excludes cash investments, receivables, payables, taxes and accrued income: FirstEnergy – $1,526 million; FES – $872 million; OE – $136 million; TE – $9 million; JCP&L – $133 million; Met-Ed – $229 million and Penelec – $147 million.


⁽²⁾	Excludes cash investments, receivables, payables, taxes and accrued income: FirstEnergy – $193 million; FES – $153 million; OE – $3 million; TE – $34 million; JCP&L – $3 million; Met-Ed – $(3) million and Penelec – $4 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 available-for-sale securities, realized gains and losses on those sales net of adjustments recorded to earnings and interest and dividend income for the three months and nine months ended September 30, 2011 and 2010 were as follows:



Three Months Ended September 30
2011	Sales Proceeds		Realized Gains		Realized Losses			Interest and Dividend Income
	(In millions)
FirstEnergy	$	1,974	$	98	$	(38	)	$	20
FES	1,100		52		(19		)	9
OE	134		7		(1		)	1
TE	51		4		(2		)	—
JCP&L	234		11		(4		)	5
Met-Ed	306		15		(8		)	3
Penelec	149		9		(4		)	2

2010	Sales Proceeds		Realized Gains		Realized Losses			Interest and Dividend Income
	(In millions)
FirstEnergy	$	662	$	49	$	(32	)	$	19
FES	521		47		(30		)	11
OE	19		—		—			1
TE	12		—		(1		)	—
JCP&L	59		1		(1		)	4
Met-Ed	44		1		—			2
Penelec	7		—		—			1



Nine Months Ended September 30
2011	Sales Proceeds		Realized Gains		Realized Losses			Interest and Dividend Income
	(In millions)
FirstEnergy	$	3,678	$	220	$	(83	)	$	72
FES	1,613		74		(42		)	41
OE	154		7		(1		)	3
TE	80		5		(4		)	2
JCP&L	610		37		(10		)	13
Met-Ed	807		63		(15		)	8
Penelec	414		34		(11		)	5

2010	Sales Proceeds		Realized Gains		Realized Losses			Interest and Dividend Income
	(In millions)
FirstEnergy	$	2,577	$	132	$	(118	)	$	56
FES	1,478		101		(88		)	33
OE	79		2		—			2
TE	118		3		(1		)	1
JCP&L	340		10		(10		)	10
Met-Ed	420		10		(12		)	5
Penelec	141		6		(7		)	5

Amortized cost basis, unrealized gains and losses, and approximate fair values of investments in held-to-maturity securities

The following table provides the amortized cost basis, unrealized gains and losses, and approximate fair values of investments in held-to-maturity securities as of September 30, 2011, and December 31, 2010:



	September 30, 2011								December 31, 2010
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(In millions)
Debt Securities
FirstEnergy	$	414	$	45	$	—	$	459	$	476	$	91	$	—	$	567
OE	178		17		—		195		190		51		—		241
CEI	287		27		—		314		340		41		—		381

Approximate fair value and related carrying amounts of notes receivable

The table below provides the approximate fair value and related carrying amounts of notes receivable as of September 30, 2011, and December 31, 2010. The fair value of notes receivable represents the present value of the cash inflows based on the yield to maturity. The yields assumed were based on financial instruments with similar characteristics and terms. The maturity dates range from 2013 to 2016.



	September 30, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In millions)
Notes Receivable
FirstEnergy	$	—	$	—	$	7	$	8
TE	82		92		104		118

Assets and liabilities measured on recurring basis

The following tables summarize assets and liabilities recorded on FirstEnergy’s Consolidated Balance Sheets at fair value as of September 30, 2011, and December 31, 2010:



September 30, 2011	Level 1		Level 2			Level 3			Total
	(In millions)
Assets
Corporate debt securities	$	—	$	60		$	—		$	60
Derivative assets — commodity contracts	—		225			—			225
Derivative assets — FTRs	—		—			4			4
Derivative assets — NUG contracts⁽¹⁾	—		—			59			59
Equity securities⁽²⁾	181		—			—			181
Foreign government debt securities	—		2			—			2
U.S. government debt securities	—		331			—			331
U.S. state debt securities	—		310			—			310
Other⁽⁴⁾	—		1,564			—			1,564
Total assets	$	181	$	2,492		$	63		$	2,736

Liabilities
Derivative liabilities — commodity contracts	$	—	$	(257	)	$	—		$	(257	)
Derivative liabilities — FTRs	—		—			(13		)	(13		)
Derivative liabilities — NUG contracts⁽¹⁾	—		—			(542		)	(542		)
Total liabilities	$	—	$	(257	)	$	(555	)	$	(812	)

Net assets (liabilities)⁽³⁾	$	181	$	2,235		$	(492	)	$	1,924

December 31, 2010	Level 1		Level 2			Level 3			Total
	(In millions)
Assets
Corporate debt securities	$	—	$	597		$	—		$	597
Derivative assets — commodity contracts	—		250			—			250
Derivative assets — NUG contracts⁽¹⁾	—		—			122			122
Equity securities⁽²⁾	338		—			—			338
Foreign government debt securities	—		149			—			149
U.S. government debt securities	—		595			—			595
U.S. state debt securities	—		379			—			379
Other⁽⁴⁾	—		219			—			219
Total assets	$	338	$	2,189		$	122		$	2,649

Liabilities
Derivative liabilities — commodity contracts	$	—	$	(348	)	$	—		$	(348	)
Derivative liabilities — NUG contracts⁽¹⁾	—		—			(466		)	(466		)
Total liabilities	$	—	$	(348	)	$	(466	)	$	(814	)

Net assets (liabilities)⁽³⁾	$	338	$	1,841		$	(344	)	$	1,835


⁽¹⁾	NUG contracts are generally subject to regulatory accounting and do not materially impact earnings.


⁽²⁾	NDT funds hold equity portfolios the performance of which is benchmarked against the S&P 500 Index or Russell 3000 Index.


⁽³⁾	Excludes $(29) million and $(7) million as of September 30, 2011 and December 31, 2010, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.


⁽⁴⁾	Primarily consists of short-term cash investments.

Reconciliation of changes in the fair value roll forward of level 3 measurements of NUG contracts

The following table provides a reconciliation of changes in the fair value of NUG contracts held by the Utilities and FTRs held by FirstEnergy and classified as Level 3 in the fair value hierarchy during the periods ending September 30, 2011 and December 31, 2010:



	Derivative Asset⁽¹⁾			Derivative Liability⁽¹⁾			Net⁽¹⁾
	(In millions)
January 1, 2011 Balance	$	122		$	(466	)	$	(344	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(52		)	(285		)	(337		)
Purchases	13			(3		)	10
Issuances	—			—			—
Sales	—			—			—
Settlements	(20		)	211			191
Transfers into Level 3	—			(12		)	(12		)
September 30, 2011 Balance	$	63		$	(555	)	$	(492	)
January 1, 2010 Balance	$	200		$	(643	)	$	(443	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(71		)	(110		)	(181		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(7		)	287			280
Transfers into Level 3	—			—			—
December 31, 2010 Balance	$	122		$	(466	)	$	(344	)


⁽¹⁾	Changes in the fair value of NUG contracts are generally subject to regulatory accounting and do not materially impact earnings.

FES

Fair Value of Financial Instruments [Line Items]

Assets and liabilities measured on recurring basis

The following tables summarize assets and liabilities recorded on FES’ Consolidated Balance Sheets at fair value as of September 30, 2011 and December 31, 2010:



September 30, 2011	Level 1		Level 2			Level 3			Total
	(In millions)
Assets
Corporate debt securities	$	—	$	53		$	—		$	53
Derivative assets — commodity contracts	—		200			—			200
Derivative assets — FTRs	—		—			2			2
Equity securities⁽³⁾	87		—			—			87
Foreign government debt securities	—		2			—			2
U.S. government debt securities	—		172			—			172
Other⁽²⁾	—		904			—			904
Total assets	$	87	$	1,331		$	2		$	1,420

Liabilities
Derivative liabilities — commodity contracts	$	—	$	(238	)	$	—		$	(238	)
Derivative liabilities — FTRs	—		—			(4		)	(4		)
Total liabilities	$	—	$	(238	)	$	(4	)	$	(242	)
Net assets (liabilities)⁽¹⁾	$	87	$	1,093		$	(2	)	$	1,178

December 31, 2010	Level 1		Level 2			Level 3			Total
	(In millions)
Assets
Corporate debt securities	$	—	$	528		$	—		$	528
Derivative assets — commodity contracts	—		241			—			241
Foreign government debt securities	—		147			—			147
U.S. government debt securities	—		308			—			308
U.S. state debt securities	—		6			—			6
Other⁽²⁾	—		148			—			148
Total assets	$	—	$	1,378		$	—		$	1,378

Liabilities
Derivative liabilities — commodity contracts	$	—	$	(348	)	$	—		$	(348	)
Total liabilities	$	—	$	(348	)	$	—		$	(348	)
Net assets⁽¹⁾	$	—	$	1,030		$	—		$	1,030


⁽¹⁾	Excludes $(31) million and $7 million as of September 30, 2011 and December 31, 2010, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.


⁽²⁾	Primarily consists of short-term cash investments.


⁽³⁾	NDT funds hold equity portfolios the performance of which is benchmarked against the S&P 500 Index or Russell 3000 Index.

Reconciliation of changes in the fair value roll forward of level 3 measurements of NUG contracts

The following table provides a reconciliation of changes in the fair value of FTRs held by FES and classified as Level 3 in the fair value hierarchy during the period ending September 30, 2011:



	Derivative Asset FTRs			Derivative Liability FTRs			Net FTRs
	(In millions)
January 1, 2011 Balance	$	—		$	—		$	—
Realized gain (loss)	—			—			—
Unrealized gain (loss)	4			(4		)	—
Purchases	2			—			2
Issuances	—			—			—
Sales	—			—			—
Settlements	(4		)	—			(4		)
Transfers in (out) of Level 3	—			—			—
September 30, 2011 Balance	$	2		$	(4	)	$	(2	)

Fair Value of Financial Instruments [Line Items]

Assets and liabilities measured on recurring basis

The following tables summarize assets and liabilities recorded on OE’s Consolidated Balance Sheets at fair value as of September 30, 2011 and December 31, 2010:



September 30, 2011	Level 1		Level 2		Level 3		Total
	(In millions)
Assets
Other⁽²⁾	$	—	$	138	$	—	$	138
Total assets⁽¹⁾	$	—	$	138	$	—	$	138

December 31, 2010	Level 1		Level 2		Level 3		Total
	(In millions)
Assets
U.S. government debt securities	$	—	$	124	$	—	$	124
Other	—		2		—		2
Total assets⁽¹⁾	$	—	$	126	$	—	$	126


⁽¹⁾	Excludes $(2) million and $1 million as of September 30, 2011 and December 31, 2010, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.


⁽²⁾	Primarily consists of short-term cash investments.

Fair Value of Financial Instruments [Line Items]

Assets and liabilities measured on recurring basis

The following tables summarize assets and liabilities recorded on TE’s Consolidated Balance Sheets at fair value as of September 30, 2011 and December 31, 2010:



September 30, 2011	Level 1		Level 2		Level 3		Total
	(In millions)
Assets
Corporate debt securities	$	—	$	7	$	—	$	7
Equity securities⁽³⁾	24		—		—		24
U.S. government debt securities	—		38		—		38
Other⁽²⁾	—		9		—		9
Total assets⁽¹⁾	$	24	$	54	$	—	$	78

December 31, 2010	Level 1		Level 2		Level 3		Total
	(In millions)
Assets
Corporate debt securities	$	—	$	7	$	—	$	7
U.S. government debt securities	—		33		—		33
U.S. state debt securities	—		1		—		1
Other⁽²⁾	—		35		—		35
Total assets⁽¹⁾	$	—	$	76	$	—	$	76


⁽¹⁾	Excludes $2 million as of December 31, 2010 of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.


⁽²⁾	Primarily consists of short-term cash investments.


⁽³⁾	NDT funds hold equity portfolios the performance of which is benchmarked against the S&P 500 Index or Russell 3000 Index.

JCP&L

Fair Value of Financial Instruments [Line Items]

Assets and liabilities measured on recurring basis

The following tables summarize assets and liabilities recorded on JCP&L’s Consolidated Balance Sheets at fair value as of September 30, 2011 and December 31, 2010:



September 30, 2011	Level 1		Level 2		Level 3			Total
	(In millions)
Assets
Derivative assets — NUG contracts⁽¹⁾	$	—	$	—	$	4		$	4
Equity securities⁽²⁾	20		—		—			20
U.S. government debt securities	—		51		—			51
U.S. state debt securities	—		212		—			212
Other⁽⁴⁾	—		123		—			123
Total assets	$	20	$	386	$	4		$	410
Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(222	)	$	(222	)
Total liabilities	$	—	$	—	$	(222	)	$	(222	)

Net assets (liabilities)⁽³⁾	$	20	$	386	$	(218	)	$	188

December 31, 2010	Level 1		Level 2		Level 3			Total
	(In millions)
Assets
Corporate debt securities	$	—	$	23	$	—		$	23
Derivative assets — commodity contracts	—		2		—			2
Derivative assets — NUG contracts⁽¹⁾	—		—		6			6
Equity securities⁽²⁾	96		—		—			96
U.S. government debt securities	—		33		—			33
U.S. state debt securities	—		236		—			236
Other⁽⁴⁾	—		4		—			4
Total assets	$	96	$	298	$	6		$	400
Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(233	)	$	(233	)
Total liabilities	$	—	$	—	$	(233	)	$	(233	)

Net assets (liabilities)⁽³⁾	$	96	$	298	$	(227	)	$	167


⁽¹⁾	NUG contracts are subject to regulatory accounting and do not impact earnings.


⁽²⁾	NDT funds hold equity portfolios the performance of which is benchmarked against the S&P 500 Index or Russell 3000 Index.


⁽³⁾	Excludes $6 million and $(3) million as of September 30, 2011 and December 31, 2010, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.


⁽⁴⁾	Primarily consists of short-term cash investments.

Reconciliation of changes in the fair value roll forward of level 3 measurements of NUG contracts

The following table provides a reconciliation of changes in the fair value of NUG contracts held by JCP&L and classified as Level 3 in the fair value hierarchy during the periods ending September 30, 2011 and December 31, 2010:



	Derivative Asset NUG Contracts⁽¹⁾			Derivative Liability NUG Contracts⁽¹⁾			Net NUG Contracts⁽¹⁾
	(In millions)
January 1, 2011 Balance	$	6		$	(233	)	$	(227	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(2		)	(71		)	(73		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	—			82			82
Transfers in (out) of Level 3	—			—			—
September 30, 2011 Balance	$	4		$	(222	)	$	(218	)
January 1, 2010 Balance	$	8		$	(399	)	$	(391	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(1		)	36			35
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(1		)	130			129
Transfers in (out) of Level 3	—			—			—
December 31, 2010 Balance	$	6		$	(233	)	$	(227	)


⁽¹⁾	Changes in the fair value of NUG contracts are subject to regulatory accounting and do not impact earnings.

Met-Ed

Fair Value of Financial Instruments [Line Items]

Assets and liabilities measured on recurring basis

The following tables summarize assets and liabilities recorded on Met-Ed’s Consolidated Balance Sheets at fair value as of September 30, 2011 and December 31, 2010:



September 30, 2011	Level 1		Level 2		Level 3			Total
	(In millions)
Assets
Corporate debt securities	$	—	$	—	$	—		$	—
Derivative assets — NUG contracts⁽¹⁾	—		—		52			52
Equity securities⁽²⁾	31		—		—			31
Foreign government debt securities	—		—		—			—
U.S. government debt securities	—		41		—			41
U.S. state debt securities	—		—		—			—
Other⁽⁴⁾	—		233		—			233
Total assets	$	31	$	274	$	52		$	357
Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(132	)	$	(132	)
Total liabilities	$	—	$	—	$	(132	)	$	(132	)

Net assets (liabilities)⁽³⁾	$	31	$	274	$	(80	)	$	225

December 31, 2010	Level 1		Level 2		Level 3			Total
	(In millions)
Assets
Corporate debt securities	$	—	$	32	$	—		$	32
Derivative assets — commodity contracts	—		5		—			5
Derivative assets — NUG contracts⁽¹⁾	—		—		112			112
Equity securities⁽²⁾	160		—		—			160
Foreign government debt securities	—		1		—			1
U.S. government debt securities	—		88		—			88
U.S. state debt securities	—		2		—			2
Other⁽⁴⁾	—		14		—			14
Total assets	$	160	$	142	$	112		$	414

Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(116	)	$	(116	)
Total liabilities	$	—	$	—	$	(116	)	$	(116	)
Net assets (liabilities)⁽³⁾	$	160	$	142	$	(4	)	$	298


⁽¹⁾	NUG contracts are subject to regulatory accounting and do not impact earnings.


⁽²⁾	NDT funds hold equity portfolios the performance of which is benchmarked against the S&P 500 Index or Russell 3000 Index.


⁽³⁾	Excludes $(3) million and $(9) million as of September 30, 2011 and December 31, 2010, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.


⁽⁴⁾	Primarily consists of short-term cash investments.

Reconciliation of changes in the fair value roll forward of level 3 measurements of NUG contracts

The following table provides a reconciliation of changes in the fair value of NUG contracts held by Met-Ed and classified as Level 3 in the fair value hierarchy during the periods ending September 30, 2011 and December 31, 2010:



	Derivative Asset NUG Contracts⁽¹⁾			Derivative Liability NUG Contracts⁽¹⁾			Net NUG Contracts⁽¹⁾
	(In millions)
January 1, 2011 Balance	$	112		$	(116	)	$	(4	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(54		)	(61		)	(115		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(6		)	45			39
Transfers in (out) of Level 3	—			—			—
September 30, 2011 Balance	$	52		$	(132	)	$	(80	)
January 1, 2010 Balance	$	176		$	(143	)	$	33
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(59		)	(38		)	(97		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(5		)	65			60
Transfers in (out) of Level 3	—			—			—
December 31, 2010 Balance	$	112		$	(116	)	$	(4	)


⁽¹⁾	Changes in the fair value of NUG contracts are subject to regulatory accounting and do not impact earnings.

Penelec

Fair Value of Financial Instruments [Line Items]

Assets and liabilities measured on recurring basis

The following tables summarize assets and liabilities recorded on Penelec’s Consolidated Balance Sheets at fair value as of September 30, 2011 and December 31, 2010:



September 30, 2011	Level 1		Level 2		Level 3			Total
	(In millions)
Assets
Derivative assets — NUG contracts⁽¹⁾	$	—	$	—	$	3		$	3
Equity securities⁽²⁾	19		—		—			19
U.S. government debt securities	—		28		—			28
U.S. state debt securities	—		98		—			98
Other⁽⁴⁾	—		144		—			144
Total assets	$	19	$	270	$	3		$	292
Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(188	)	$	(188	)
Total liabilities	$	—	$	—	$	(188	)	$	(188	)

Net assets (liabilities)⁽³⁾	$	19	$	270	$	(185	)	$	104

December 31, 2010	Level 1		Level 2		Level 3			Total
	(In millions)
Assets
Corporate debt securities	$	—	$	8	$	—		$	8
Derivative assets — commodity contracts	—		2		—			2
Derivative assets — NUG contracts⁽¹⁾	—		—		4			4
Equity securities⁽²⁾	81		—		—			81
U.S. government debt securities	—		9		—			9
U.S. state debt securities	—		133		—			133
Other⁽⁴⁾	—		5		—			5
Total assets	$	81	$	157	$	4		$	242
Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(117	)	$	(117	)
Total liabilities	$	—	$	—	$	(117	)	$	(117	)

Net assets (liabilities)⁽³⁾	$	81	$	157	$	(113	)	$	125


⁽¹⁾	NUG contracts are subject to regulatory accounting and do not impact earnings.


⁽²⁾	NDT funds hold equity portfolios the performance of which is benchmarked against the S&P 500 Index or Russell 3000 Index.


⁽³⁾	Excludes $1 million and $(3) million as of September 30, 2011 and December 31, 2010, respectively, of receivables, payables and accrued income associated with the financial instruments reflected within the fair value table.


⁽⁴⁾	Primarily consists of short-term cash investments.

Reconciliation of changes in the fair value roll forward of level 3 measurements of NUG contracts

The following table provides a reconciliation of changes in the fair value of NUG and commodity contracts held by Penelec and classified as Level 3 in the fair value hierarchy during the periods ended September 30, 2011 and December 31, 2010:



	Derivative Asset NUG Contracts⁽¹⁾			Derivative Liability NUG Contracts⁽¹⁾			Net NUG Contracts⁽¹⁾
	(In millions)
January 1, 2011 Balance	$	4		$	(117	)	$	(113	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	—			(139		)	(139		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(1		)	68			67
Transfers in (out) of Level 3	—			—			—
September 30, 2011 Balance	$	3		$	(188	)	$	(185	)
January 1, 2010 Balance	$	16		$	(101	)	$	(85	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(11		)	(108		)	(119		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(1		)	92			91
Transfers in (out) of Level 3	—			—			—
December 31, 2010 Balance	$	4		$	(117	)	$	(113	)


⁽¹⁾	Changes in the fair value of NUG contracts are subject to regulatory accounting and do not impact earnings.

- Definition

Tabular disclosure of available-for-sale securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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