Segment Information

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

FirstEnergy has three reportable operating segments — Regulated Distribution, Regulated Independent Transmission and Competitive Energy Services.

Financial information for each of FirstEnergy’s reportable segments is presented in the tables below, which includes financial results for Allegheny subsidiaries beginning February 25, 2011. FES, OE and JCP&L do not have separate reportable operating segments.

The Regulated Distribution segment distributes electricity through FirstEnergy’s ten utility operating companies, serving approximately 6 million customers within 65,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and New York, and purchases power for its POLR, SOS and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland. This segment also includes the transmission operations of JCP&L, ME, PN, WP, MP and PE and the regulated electric generation facilities in West Virginia and New Jersey which MP and JCP&L, respectively, own or contractually control. Its results reflect the commodity costs of securing electric generation and the deferral and amortization of certain fuel costs.

The Regulated Independent Transmission segment transmits electricity through transmission lines and its revenues are primarily derived from formulaic rates that recover costs and provide a return on investment for capital expenditures in connection with TrAIL, PATH and other projects and revenues from providing transmission services to electric energy providers, power marketers and revenues from operating a portion of the FirstEnergy transmission system. Its results reflect the net transmission expenses related to the delivery of the respective generation loads.

The Competitive Energy Services segment, through FES and AE Supply, supplies electricity to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland and the provision of partial POLR and default service for some utilities in Ohio, Pennsylvania and Maryland, including the Utilities. This business segment controls approximately 17,000 MWs of capacity (excluding approximately 2,700 MWs from unregulated plants expected to be closed by September 1, 2012 (see Note 8, Regulatory Matters of the Combined Notes to Consolidated Financial Statements) and also purchases electricity to meet sales obligations. The segment’s net income is primarily derived from electric generation sales less the related costs of electricity generation, including purchased power and net transmission (including congestion) and ancillary costs charged by PJM and MISO (prior to June 1, 2011) to deliver energy to the segment’s customers.

Other/Corporate contains corporate items and other businesses that are below the quantifiable threshold for separate disclosure as a reportable segment. Reconciling adjustments primarily consist of elimination of intersegment transactions.

Segment Financial Information

Three Months Ended	Regulated Distribution		Competitive Energy Services		Regulated Independent Transmission		Other/Corporate			Reconciling Adjustments			Consolidated
	(In millions)
March 31, 2012
External revenues	$	2,383	$	1,607	$	109	$	(24	)	$	1		$	4,076
Internal revenues	—		268		—		—			(266		)	2
Total revenues	2,383		1,875		109		(24		)	(265		)	4,078
Depreciation and amortization	234		100		18		8			—			360
Investment income	24		6		—		—			(19		)	11
Net interest charges	142		54		12		21			—			229
Income taxes	108		83		20		(16		)	27			222
Net income	183		141		34		(28		)	(24		)	306
Total assets	27,551		17,187		2,452		501			—			47,691
Total goodwill	5,551		893		—		—			—			6,444
Property additions	301		243		28		17			—			589
March 31, 2011
External revenues	$	2,268	$	1,254	$	67	$	(23	)	$	(22	)	$	3,544
Internal revenues	—		343		—		—			(311		)	32
Total revenues	2,268		1,597		67		(23		)	(333		)	3,576
Depreciation and amortization	250		88		13		6			—			357
Investment income	25		6		—		—			(10		)	21
Net interest charges	131		68		9		19			(14		)	213
Income taxes	64		9		7		—			31			111
Net income	109		15		12		(55		)	(34		)	47
Total assets	27,766		17,399		2,486		914			—			48,565
Total goodwill	5,551		956		—		—			—			6,507
Property additions	177		214		27		31			—			449