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 and Comprehensive Income for the three months ended March 31, 2012 and 2011, Consolidating Balance Sheets as of March 31, 2012 and December 31, 2011 and Consolidating Statements of Cash Flows for the three months ended March 31, 2012 and 2011 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 AND COMPREHENSIVE INCOME

(Unaudited)



For the Three Months Ended March 31, 2012	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME

REVENUES	$	1,490		$	542		$	394		$	(910	)	$	1,516
OPERATING EXPENSES:
Fuel	—			240			55			—			295
Purchased power from affiliates	965			—			62			(910		)	117
Purchased power from non-affiliates	487			—			—			—			487
Other operating expenses	76			92			116			11			295
Provision for depreciation	1			30			34			(2		)	63
General taxes	20			10			7			—			37
Total operating expenses	1,549			372			274			(901		)	1,294

OPERATING INCOME (LOSS)	(59		)	170			120			(9		)	222
OTHER INCOME (EXPENSE):
Investment income	1			4			5			(4		)	6
Miscellaneous income, including net income from equity investees	258			—			—			(254		)	4
Interest expense — affiliates	(4		)	(1		)	(1		)	4			(2		)
Interest expense — other	(23		)	(26		)	(7		)	15			(41		)
Capitalized interest	—			1			8			—			9
Total other income (expense)	232			(22		)	5			(239		)	(24		)

INCOME BEFORE INCOME TAXES	173			148			125			(248		)	198
INCOME TAXES (BENEFITS)	51			(1		)	23			3			76

NET INCOME	$	122		$	149		$	102		$	(251	)	$	122

STATEMENTS OF COMPREHENSIVE INCOME

NET INCOME	$	122		$	149		$	102		$	(251	)	$	122

OTHER COMPREHENSIVE INCOME (LOSS):
Pensions and OPEB prior service costs	(5		)	(4		)	—			4			(5		)
Amortized loss on derivative hedges	(5		)	—			—			—			(5		)
Change in unrealized gain on available for sale securities	10			—			10			(10		)	10
Other comprehensive income (loss)	—			(4		)	10			(6		)	—
Income taxes (benefits) on other comprehensive income (loss)	2			(2		)	4			(2		)	2
Other comprehensive income (loss), net of tax	(2		)	(2		)	6			(4		)	(2		)
COMPREHENSIVE INCOME	$	120		$	147		$	108		$	(255	)	$	120

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)



For the Three Months Ended March 31, 2011	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME

REVENUES	$	1,366		$	743		$	469		$	(1,187	)	$	1,391
OPERATING EXPENSES:
Fuel	1			294			48			—			343
Purchased power from affiliates	1,185			2			69			(1,187		)	69
Purchased power from non-affiliates	297			—			—			—			297
Other operating expenses	162			111			180			12			465
Provision for depreciation	1			32			38			(2		)	69
General taxes	10			11			8			—			29
Impairment of long-lived assets	—			14			—			—			14
Total operating expenses	1,656			464			343			(1,177		)	1,286

OPERATING INCOME (LOSS)	(290		)	279			126			(10		)	105

OTHER INCOME (EXPENSE):
Investment income	1			—			5			—			6
Miscellaneous income, including net income from equity investees	242			1			—			(239		)	4
Interest expense — affiliates	(1		)	—			—			—			(1		)
Interest expense — other	(24		)	(28		)	(17		)	16			(53		)
Capitalized interest	—			5			5			—			10
Total other income (expense)	218			(22		)	(7		)	(223		)	(34		)
INCOME (LOSS) BEFORE INCOME TAXES	(72		)	257			119			(233		)	71
INCOME TAXES (BENEFITS)	(117		)	96			45			2			26

NET INCOME	$	45		$	161		$	74		$	(235	)	$	45

STATEMENTS OF COMPREHENSIVE INCOME

NET INCOME	$	45		$	161		$	74		$	(235	)	$	45

OTHER COMPREHENSIVE INCOME
Pensions and OPEB prior service costs	(10		)	(4		)	(6		)	10			(10		)
Amortized loss on derivative hedges	(9		)	—			—			—			(9		)
Change in unrealized gain on available for sale securities	8			—			8			(8		)	8
Other comprehensive income (loss)	(11		)	(4		)	2			2			(11		)
Income taxes (benefits) on other comprehensive income (loss)	(6		)	(2		)	1			1			(6		)
Other comprehensive income (loss), net of tax	(5		)	(2		)	1			1			(5		)
COMPREHENSIVE INCOME	$	40		$	159		$	75		$	(234	)	$	40

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)



As of March 31, 2012	FES		FGCO		NGC		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	7	$	—	$	—		$	7
Receivables-
Customers	395		—		—		—			395
Affiliated companies	472		439		241		(611		)	541
Other	50		19		53		—			122
Notes receivable from affiliated companies	81		1,369		44		(1,482		)	12
Materials and supplies, at average cost	62		283		206		—			551
Derivatives	322		—		—		—			322
Prepayments and other	7		17		1		(1		)	24
	1,389		2,134		545		(2,094		)	1,974
PROPERTY, PLANT AND EQUIPMENT:
In service	84		5,614		5,689		(385		)	11,002
Less — Accumulated provision for depreciation	29		1,843		2,524		(182		)	4,214
	55		3,771		3,165		(203		)	6,788
Construction work in progress	31		171		971		—			1,173
	86		3,942		4,136		(203		)	7,961
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,240		—			1,240
Investment in affiliated companies	5,956		—		—		(5,956		)	—
Other	—		7		—		—			7
	5,956		7		1,240		(5,956		)	1,247
DEFERRED CHARGES AND OTHER ASSETS:
Accumulated deferred income tax benefits	—		274		—		(274		)	—
Customer intangibles	120		—		—		—			120
Goodwill	24		—		—		—			24
Property taxes	—		20		23		—			43
Unamortized sale and leaseback costs	—		21		—		99			120
Derivatives	117		—		—		—			117
Other	123		111		2		(65		)	171
	384		426		25		(240		)	595
	$	7,815	$	6,509	$	5,946	$	(8,493	)	$	11,777

LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	1	$	411	$	514	$	(21	)	$	905
Short-term borrowings-
Affiliated companies	1,413		69		—		(1,482		)	—
Accounts payable-
Affiliated companies	663		175		256		(611		)	483
Other	69		121		—		—			190
Accrued Taxes	31		33		24		(13		)	75
Derivatives	281		—		—		—			281
Other	38		111		24		72			245
	2,496		920		818		(2,055		)	2,179
CAPITALIZATION:
Total equity	3,695		3,244		2,697		(5,941		)	3,695
Long-term debt and other long-term obligations	1,482		1,903		641		(1,229		)	2,797
	5,177		5,147		3,338		(7,170		)	6,492
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		917			917
Accumulated deferred income taxes	18		—		532		(185		)	365
Asset retirement obligations	—		28		891		—			919
Retirement benefits	31		120		—		—			151
Lease market valuation liability	—		160		—		—			160
Other	93		134		367		—			594
	142		442		1,790		732			3,106
	$	7,815	$	6,509	$	5,946	$	(8,493	)	$	11,777

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)



As of December 31, 2011	FES		FGCO		NGC		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	7	$	—	$	—		$	7
Receivables-
Customers	424		—		—		—			424
Affiliated companies	476		643		262		(781		)	600
Other	28		20		13		—			61
Notes receivable from affiliated companies	155		1,346		69		(1,187		)	383
Materials and supplies, at average cost	60		232		200		—			492
Derivatives	219		—		—		—			219
Prepayments and other	11		26		1		—			38
	1,373		2,274		545		(1,968		)	2,224
PROPERTY, PLANT AND EQUIPMENT:
In service	84		5,573		5,711		(385		)	10,983
Less — Accumulated provision for depreciation	28		1,813		2,449		(180		)	4,110
	56		3,760		3,262		(205		)	6,873
Construction work in progress	29		195		790		—			1,014
	85		3,955		4,052		(205		)	7,887
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,223		—			1,223
Investment in affiliated companies	5,716		—		—		(5,716		)	—
Other	—		7		—		—			7
	5,716		7		1,223		(5,716		)	1,230
DEFERRED CHARGES AND OTHER ASSETS:
Accumulated deferred income tax benefits	10		307		—		(317		)	—
Customer intangibles	123		—		—		—			123
Goodwill	24		—		—		—			24
Property taxes	—		20		23		—			43
Unamortized sale and leaseback costs	—		5		—		75			80
Derivatives	79		—		—		—			79
Other	89		99		3		(62		)	129
	325		431		26		(304		)	478
	$	7,499	$	6,667	$	5,846	$	(8,193	)	$	11,819

LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	1	$	411	$	513	$	(20	)	$	905
Short-term borrowings-
Affiliated companies	1,065		89		32		(1,186		)	—
Accounts payable-
Affiliated companies	777		228		211		(780		)	436
Other	99		121		—		—			220
Accrued Taxes	84		42		110		(9		)	227
Derivatives	189		—		—		—			189
Other	62		141		16		42			261
	2,277		1,032		882		(1,953		)	2,238
CAPITALIZATION:
Common stockholder’s equity	3,593		3,097		2,587		(5,700		)	3,577
Long-term debt and other long-term obligations	1,483		1,905		641		(1,230		)	2,799
	5,076		5,002		3,228		(6,930		)	6,376
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		925			925
Accumulated deferred income taxes	12		—		510		(236		)	286
Asset retirement obligations	—		28		876		—			904
Retirement benefits	56		300		—		—			356
Lease market valuation liability	—		171		—		—			171
Other	78		134		350		1			563
	146		633		1,736		690			3,205
	$	7,499	$	6,667	$	5,846	$	(8,193	)	$	11,819

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)



For the Three Months Ended March 31, 2012	FES			FGCO			NGC			Eliminations			Consolidated
	(In millions)

NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(419	)	$	66		$	175		$	—		$	(178	)
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Short-term borrowings, net	347			—			—			(347		)	—
Redemptions and Repayments-
Short-term borrowings, net	—			(20		)	(32		)	52			—
Other	—			(2		)	(1		)	—			(3		)
Net cash provided from (used for) financing activities	347			(22		)	(33		)	(295		)	(3		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(2		)	(18		)	(161		)	—			(181		)
Sales of investment securities held in trusts	—			—			83			—			83
Purchases of investment securities held in trusts	—			—			(90		)	—			(90		)
Loans to affiliated companies, net	74			(23		)	25			295			371
Other	—			(3		)	1			—			(2		)
Net cash provided from (used for) investing activities	72			(44		)	(142		)	295			181
Net change in cash and cash equivalents	—			—			—			—			—
Cash and cash equivalents at beginning of period	—			7			—			—			7
Cash and cash equivalents at end of period	$	—		$	7		$	—		$	—		$	7

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)



For the Three Months Ended March 31, 2011	FES			FGCO			NGC			Eliminations		Consolidated
	(In millions)

NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(215	)	$	267		$	42		$	—	$	94
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Long-term debt	—			90			60			—		150
Short-term borrowings, net	322			28			—			—		350
Redemptions and Repayments-
Long-term debt	(131		)	(141		)	(60		)	—		(332		)
Other	(1		)	—			—			—		(1		)
Net cash used for financing activities	190			(23		)	—			—		167

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(3		)	(40		)	(116		)	—		(159		)
Sales of investment securities held in trusts	—			—			216			—		216
Purchases of investment securities held in trusts	—			—			(231		)	—		(231		)
Loans to affiliated companies, net	28			(200		)	90			—		(82		)
Customer acquisition costs	—			—			—			—		—
Other	—			(6		)	(1		)	—		(7		)
Net cash provided from (used for) investing activities	25			(246		)	(42		)	—		(263		)
Net change in cash and cash equivalents	—			(2		)	—			—		(2		)
Cash and cash equivalents at beginning of period	—			9			—			—		9
Cash and cash equivalents at end of period	$	—		$	7		$	—		$	—	$	7