Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

During the second quarter of 2012, FirstEnergy successfully completed the integration of AE into its IT business networks and financial systems. An important element of this system integration was the capability to modify the segment reporting to reflect how management now views and makes investment decisions regarding the distribution and transmission operations of FirstEnergy. The external segment reporting is now consistent with the internal financial reports used by FirstEnergy's chief executive officer (its chief operating decision maker) to regularly assess the performance of the business and allocate resources. Disclosures for FirstEnergy's operating segments for 2011 have been reclassified to conform to the current presentation.

The key changes in FirstEnergy's reportable segments during the second quarter of 2012 consisted principally of including the federally-regulated transmission assets and operations of JCP&L, ME, PN, MP, PE and WP, that were previously reported within the Regulated Distribution segment, with the renamed Regulated Transmission Segment. There were no changes to the Competitive Energy Services or Other / Corporate Segments. FirstEnergy continues to havethreereportable operating segments — Regulated Distribution, Regulated 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 the 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’stenutility operating companies, serving approximatelysix millioncustomers within65,000square 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 regulated electric generation facilities in West Virginia and New Jersey that 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 Transmission segment, previously known in part as the Regulated Independent Transmission Segment, transmits electricity through transmission lines owned and operated by certain of FirstEnergy's utilities (JCP&L, ME, PN, MP, PE and WP) and independent transmission companies (ATSI, TrAIL and PATH). Its revenues are primarily derived from rates that recover costs and provide a return on transmission capital investment. Revenues are also derived from providing transmission services to electric energy providers, power marketers and revenue from operating 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 approximately17,000MWs of capacity, excluding approximately2,700MWs from unregulated plants expected to be deactivated, (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.

The Other / Corporate Segment 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		Regulated Transmission		Competitive Energy Services		Other/Corporate			Reconciling Adjustments			Consolidated
	(In millions)
June 30, 2012
External revenues	$	2,095	$	184	$	1,616	$	(24	)	$	(2	)	$	3,869
Internal revenues	—		—		209		—			(209		)	—
Total revenues	2,095		184		1,825		(24		)	(211		)	3,869
Depreciation and amortization	215		29		103		8			(1		)	354
Investment income	19		—		6		1			(13		)	13
Net interest charges	132		22		59		42			—			255
Income taxes	94		31		14		(25		)	13			127
Net income	161		52		25		(42		)	(8		)	188
Total assets	25,787		4,473		17,216		572			—			48,048
Total goodwill	5,025		526		893		—			—			6,444
Property additions	177		59		150		26			—			412
June 30, 2011
External revenues	$	2,409	$	182	$	1,495	$	(30	)	$	(8	)	$	4,048
Internal revenues	—		—		318		—			(306		)	12
Total revenues	2,409		182		1,813		(30		)	(314		)	4,060
Depreciation and amortization	232		28		109		8			—			377
Investment income	25		—		16		—			(10		)	31
Net interest charges	134		24		69		19			(1		)	245
Income taxes	100		33		12		(30		)	(1		)	114
Net income	171		57		21		(51		)	(5		)	193
Total assets	25,069		4,202		17,146		1,179			—			47,596
Total goodwill	5,025		526		885		—			—			6,436
Property additions	266		81		197		25			—			569
Six Months Ended
June 30, 2012
External revenues	$	4,420	$	370	$	3,222	$	(47	)	$	(20	)	$	7,945
Internal revenues	—		—		477		—			(475		)	2
Total revenues	4,420		370		3,699		(47		)	(495		)	7,947
Depreciation and amortization	435		61		203		16			(1		)	714
Investment income	42		1		12		1			(32		)	24
Net interest charges	264		45		113		63			(1		)	484
Income taxes	187		66		97		(41		)	40			349
Net income	318		112		166		(69		)	(33		)	494
Total assets	25,787		4,473		17,216		572			—			48,048
Total goodwill	5,025		526		893		—			—			6,444
Property additions	443		122		393		43			—			1,001
June 30, 2011
External revenues	$	4,632	$	295	$	2,736	$	(53	)	$	(18	)	$	7,592
Internal revenues	—		—		661		—			(617		)	44
Total revenues	4,632		295		3,397		(53		)	(635		)	7,636
Depreciation and amortization	473		50		197		14			—			734
Investment income	48		—		21		1			(18		)	52
Net interest charges	256		41		122		39			—			458
Income taxes	158		47		21		(30		)	29			225
Net income	267		80		36		(105		)	(38		)	240
Total assets	25,069		4,202		17,146		1,179			—			47,596
Total goodwill	5,025		526		885		—			—			6,436
Property additions	381		170		411		56			—			1,018