Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Taxes [Abstract]

Provision For Income Taxes

PROVISION FOR INCOME TAXES	FirstEnergy			FES			OE			JCP&L
	(In millions)
2012
Currently payable (receivable)-
Federal	$	(122	)	$	(120	)	$	56		$	(120	)
State	28			17			(5		)	(18		)
	(94		)	(103		)	51			(138		)
Deferred, net-
Federal	580			208			8			201
State	78			10			16			44
	658			218			24			245
Investment tax credit amortization	(11		)	(4		)	(1		)	—
Total provision for income taxes	$	553		$	111		$	74		$	107
2011
Currently payable (receivable)-
Federal	$	(243	)	$	(219	)	$	13		$	19
State	19			9			(12		)	7
	(224		)	(210		)	1			26
Deferred, net-
Federal	785			206			65			71
State	24			(3		)	13			20
	809			203			78			91
Investment tax credit amortization	(11		)	(4		)	(1		)	—
Total provision for income taxes	$	574		$	(11	)	$	78		$	117
2010
Currently payable (receivable)-
Federal	$	(23	)	$	(23	)	$	37		$	80
State	35			(2		)	(2		)	36
	12			(25		)	35			116
Deferred, net-
Federal	432			142			41			30
State	27			12			3			1
	459			154			44			31
Investment tax credit amortization	(9		)	(4		)	(1		)	—
Total provision for income taxes	$	462		$	125		$	78		$	147

Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes

The following tables provide a reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes for the three years ended December 31.

	FirstEnergy			FES			OE			JCP&L
	(In millions)
2012
Book income (loss) before provision for income taxes	$	1,323		$	298		$	175		$	240
Federal income tax expense at statutory rate	$	463		$	104		$	61		$	84
Increases (reductions) in taxes resulting from-
Amortization of investment tax credits	(11		)	(4		)	(1		)	—
State income taxes, net of federal tax benefit	69			18			7			17
Medicare Part D	32			1			6			5
Effectively settled tax items	(20		)	(11		)	(1		)	—
State valuation allowance	60			—			—			—
State apportionment remeasurement	(50		)	—			—			—
Other, net	10			3			2			1
Total provision for income taxes	$	553		$	111		$	74		$	107
2011
Book income (loss) before provision for income taxes	$	1,459		$	(70	)	$	206		$	261
Federal income tax expense at statutory rate	$	511		$	(25	)	$	72		$	91
Increases (reductions) in taxes resulting from-
Amortization of investment tax credits	(11		)	(4		)	(1		)	—
State income taxes, net of federal tax benefit	28			4			1			18
State unitary tax adjustments	33			—			—			—
Manufacturing deduction	16			13			3			—
Medicare Part D	36			4			6			6
Effectively settled tax items	(11		)	(2		)	(3		)	—
State valuation allowance	(19		)	2			—			—
Other, net	(9		)	(3		)	—			2
Total provision for income taxes	$	574		$	(11	)	$	78		$	117
2010
Book income (loss) before provision for income taxes	$	1,204		$	356		$	233		$	330
Federal income tax expense at statutory rate	$	421		$	125		$	82		$	116
Increases (reductions) in taxes resulting from-
Amortization of investment tax credits	(9		)	(4		)	(1		)	—
State income taxes, net of federal tax benefit	40			7			1			24
Medicare Part D	17			1			2			4
Effectively settled tax items	(34		)	(2		)	(9		)	—
Other, net	27			(2		)	3			3
Total provision for income taxes	$	462		$	125		$	78		$	147

Accumulated deferred income taxes

Accumulated deferred income taxes as of December 31, 2012 and 2011 are as follows:

	FirstEnergy			FES			OE			JCP&L
	(In millions)
December 31, 2012
Property basis differences	$	7,868		$	1,060		$	728		$	919
Regulatory transition charge	79			—			5			44
Customer receivables for future income taxes	130			—			9			1
Deferred MISO/PJM transmission costs	125			—			—			—
Other regulatory assets — RCP	161			—			80			—
Deferred sale and leaseback gain	(431		)	(384		)	(26		)	(9		)
Non-utility generation costs	5			—			—			(22		)
Unamortized investment tax credits	(67		)	(17		)	(3		)	(2		)
Unrealized losses on derivative hedges	(21		)	2			—			(1		)
Pensions and OPEB	(1,102		)	(105		)	(108		)	(106		)
Lease market valuation liability	(81		)	33			—			—
Oyster Creek securitization (Note 11)	75			—			—			75
Nuclear decommissioning activities	127			111			15			(22		)
Mark-to-market adjustments	30			30			—			—
Deferred gain for asset sales — affiliated companies	—			—			27			—
Loss carryforwards and AMT credits	(1,199		)	(221		)	—			(21		)
Loss carryforward valuation reserve	102			16			—			—
Storm damage	192			—			—			163
Market transition charge	65			—			—			65
All other	239			(22		)	40			4
Net deferred income tax liability	$	6,297		$	503		$	767		$	1,088
December 31, 2011
Property basis differences	$	6,738		$	770		$	673		$	792
Regulatory transition charge	105			—			30			49
Customer receivables for future income taxes	138			—			13			12
Deferred MISO/PJM transmission costs	51			—			—			—
Other regulatory assets — RCP	165			—			82			—
Deferred sale and leaseback gain	(450		)	(398		)	(31		)	(10		)
Non-utility generation costs	36			—			—			(2		)
Unamortized investment tax credits	(72		)	(19		)	(3		)	(2		)
Unrealized losses on derivative hedges	(21		)	5			—			(1		)
Pensions and OPEB	(752		)	(85		)	(76		)	(75		)
Lease market valuation liability	(179		)	(65		)	—			—
Oyster Creek securitization (Note 11)	93			—			—			93
Nuclear decommissioning activities	123			108			15			(7		)
Mark-to-market adjustments	(7		)	(7		)	—			—
Deferred gain for asset sales — affiliated companies	—			—			31			—
Loss carryforwards and ATM credits	(612		)	(34		)	—			—
Loss carryforward valuation reserve	34			12			—			—
Storm damage	55			—			—			42
Market transition charge	17			—			—			17
All other	208			(1		)	53			(49		)
Net deferred income tax liability	$	5,670		$	286		$	787		$	859

Changes in unrecognized tax benefits

The following table summarizes the changes in unrecognized tax positions for the years ended 2012, 2011 and 2010.

	FirstEnergy			FES			OE			JCP&L
	(In millions)
Balance, January 1, 2010	$	191		$	41		$	77		$	14
Current year increases	10			6			2			—
Prior years increases	2			—			—			—
Prior years decreases	(81		)	(4		)	(19		)	(21		)
Increase (decrease) for settlements	(77		)	(2		)	(58		)	7
Balance, December 31, 2010	$	45		$	41		$	2		$	—
Increase due to merger with AE	97			—			—			—
Prior years increases	10			8			—			—
Prior years decreases	(35		)	(4		)	(2		)	—
Balance, December 31, 2011	$	117		$	45		$	—		$	—
Current year increases	2			—			—			—
Current year decreases	(7		)	—			—			—
Prior years increases	6			6			—			—
Prior years decreases	(37		)	(13		)	—			—
Decrease for settlements	(38		)	(35		)	—			—
Balance, December 31, 2012	$	43		$	3		$	—		$	—

Net interest expense (income) and cumulative net interest payable (receivable)

The following table summarizes the net interest expense (income) for the three years ended December 31st and the cumulative net interest payable (receivable) as of December 31, 2012 and 2011:

	Net Interest Expense (Income) For the Years Ended December 31,									Net Interest Payable As of December 31,
	2012			2011			2010			2012		2011
	(In millions)									(In millions)
FirstEnergy	$	(4	)	$	(5	)	$	(10	)	$	8	$	11
FES	(4		)	1			1			—		4
OE	(1		)	(2		)	(3		)	—		1
JCP&L	—			—			(2		)	—		—

Pre-tax net operating loss expiration period

Expiration Period	FirstEnergy				FES
	(In millions)
	State		Local		State		Local
2013-2017	$	9	$	1,665	$	—	$	904
2018-2022	2,907		—		43		—
2023-2027	6,505		—		45		—
2028-2032	4,728		—		746		—
	$	14,149	$	1,665	$	834	$	904

Details of general taxes

General Taxes

	FirstEnergy		FES		OE		JCP&L
	(In millions)
2012
KWH excise	$	230	$	—	$	88	$	37
State gross receipts	251		77		15		—
Real and personal property	329		35		80		6
Social security and unemployment	126		20		10		12
Other	49		4		—		—
Total general taxes	$	985	$	136	$	193	$	55
2011
KWH excise	$	244	$	—	$	90	$	50
State gross receipts	264		62		17		—
Real and personal property	299		42		73		6
Social security and unemployment	109		14		9		11
Other	62		6		1		—
Total general taxes	$	978	$	124	$	190	$	67
2010
KWH excise	$	245	$	5	$	92	$	51
State gross receipts	185		17		15		—
Real and personal property	243		53		67		5
Social security and unemployment	86		14		8		9
Other	17		5		1		—
Total general taxes	$	776	$	94	$	183	$	65