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Segment Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
During 2012, FirstEnergy completed the integration of Allegheny into its IT business networks and financial systems. An important element of this system integration was the capability of modifying 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 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 and 2010 have been reclassified to conform to the current presentation.
The key changes in FirstEnergy's reportable segments during 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 have three reportable 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 Allegheny 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 six 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 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 facilities owned and operated by ATSI, TrAIL, certain of FirstEnergy's utilities (JCP&L, ME, PN, MP, PE and WP) and the abandoned plant regulatory asset of PATH. The segment's revenues are primarily derived from rates that recover costs and provide a return on transmission capital investment. Except for the recovery of the PATH abandoned plant regulatory asset, these revenues are derived from transmission services provided pursuant to the PJM open access transmission tariff to electric energy providers, power marketers and revenue from operating the FirstEnergy transmission facilities. Its results reflect the net transmission expenses related to the delivery of electricity on FirstEnergy's transmission facilities.
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 18,000 MWs of capacity (including 885 MWs of capacity subject to RMR arrangements with PJM) 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
For the Years Ended December 31,
 
Regulated Distribution
 
Regulated Transmission
 
Competitive Energy Services
 
Other/Corporate
 
Reconciling Adjustments
 
Consolidated
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
External revenues
 
$
8,897

 
$
740

 
$
5,808

 
$
(119
)
 
$
(25
)
 
$
15,301

Internal revenues
 
—

 
—

 
866

 
—

 
(864
)
 
2

Total revenues
 
8,897

 
740

 
6,674

 
(119
)
 
(889
)
 
15,303

Depreciation, amortization and deferrals
 
493

 
115

 
414

 
34

 
—

 
1,056

Investment income
 
84

 
1

 
66

 
(5
)
 
(69
)
 
77

Interest expense
 
(540
)
 
(92
)
 
(284
)
 
(85
)
 
—

 
(1,001
)
Income taxes
 
295

 
133

 
91

 
(34
)
 
68

 
553

Net income
 
540

 
226

 
215

 
(155
)
 
(55
)
 
771

Total assets
 
27,150

 
4,777

 
18,087

 
392

 
—

 
50,406

Total goodwill
 
5,025

 
526

 
896

 
—

 
—

 
6,447

Property additions
 
1,074

 
507

 
1,014

 
83

 
—

 
2,678

 
 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
External revenues
 
$
9,740

 
$
660

 
$
5,825

 
$
(114
)
 
$
(31
)
 
$
16,080

Internal revenues
 
—

 
—

 
1,237

 
—

 
(1,170
)
 
67

Total revenues
 
9,740

 
660

 
7,062

 
(114
)
 
(1,201
)
 
16,147

Depreciation, amortization and deferrals
 
846

 
110

 
415

 
24

 
—

 
1,395

Investment income
 
99

 
—

 
56

 
1

 
(42
)
 
114

Interest expense
 
(530
)
 
(89
)
 
(298
)
 
(91
)
 
—

 
(1,008
)
Income taxes
 
287

 
114

 
222

 
(87
)
 
38

 
574

Net income
 
488

 
194

 
377

 
(149
)
 
(41
)
 
869

Total assets
 
25,534

 
4,379

 
16,796

 
617

 
—

 
47,326

Total goodwill
 
5,025

 
526

 
890

 
—

 
—

 
6,441

Property additions
 
868

 
390

 
778

 
93

 
—

 
2,129

 
 
 
 
 
 
 
 
 
 
 
 
 
2010
 
 
 
 
 
 
 
 
 
 
 
 
External revenues
 
$
9,422

 
$
398

 
$
3,575

 
$
28

 
$
(158
)
 
$
13,265

Internal revenues
 
139

 
—

 
2,301

 
—

 
(2,366
)
 
74

Total revenues
 
9,561

 
398

 
5,876

 
28

 
(2,524
)
 
13,339

Depreciation, amortization and deferrals
 
1,094

 
80

 
284

 
14

 
—

 
1,472

Investment income
 
35

 
—

 
51

 
(2
)
 
33

 
117

Interest expense
 
(395
)
 
(66
)
 
(232
)
 
(155
)
 
3

 
(845
)
Income taxes
 
307

 
50

 
128

 
(47
)
 
24

 
462

Net income
 
522

 
85

 
210

 
(79
)
 
(20
)
 
718

Total assets
 
20,340

 
2,884

 
11,320

 
987

 
—

 
35,531

Total goodwill
 
5,025

 
526

 
24

 
—

 
—

 
5,575

Property additions
 
490

 
255

 
976

 
59

 
—

 
1,780