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Segment Information
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
During 2012, FirstEnergy completed the integration of AE 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 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 certain of FirstEnergy's utilities (JCP&L, ME, PN, MP, PE and WP) and transmission companies (ATSI, TrAIL and PATH). Its revenues are primarily derived from rates that recover costs and provide a return on transmission capital investment. These revenues are derived from providing transmission services 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 17,000 MWs of capacity, excluding approximately 2,700 MWs from unregulated plants recently deactivated or planned to be deactivated (see Note 9, 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)
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
External revenues
 
$
2,438

 
$
187

 
$
1,719

 
$
(30
)
 
$
(3
)
 
$
4,311

Internal revenues
 
—

 
—

 
210

 
—

 
(210
)
 
—

Total revenues
 
2,438

 
187

 
1,929

 
(30
)
 
(213
)
 
4,311

Depreciation and amortization
 
202

 
28

 
105

 
8

 
—

 
343

Investment income
 
20

 
—

 
36

 
(1
)
 
(16
)
 
39

Net interest charges
 
132

 
22

 
62

 
(4
)
 
—

 
212

Income taxes
 
168

 
35

 
76

 
(9
)
 
39

 
309

Net income*
 
286

 
59

 
129

 
(11
)
 
(38
)
 
425

Total assets
 
26,122

 
4,519

 
16,846

 
1,251

 
—

 
48,738

Total goodwill
 
5,025

 
526

 
893

 
—

 
—

 
6,444

Property additions
 
308

 
47

 
412

 
8

 
—

 
775

 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2011
 
 
 
 
 
 
 
 
 
 
 
 
External revenues
 
$
2,864

 
$
181

 
$
1,714

 
$
(40
)
 
$
(12
)
 
$
4,707

Internal revenues
 
1

 
—

 
315

 
—

 
(304
)
 
12

Total revenues
 
2,865

 
181

 
2,029

 
(40
)
 
(316
)
 
4,719

Depreciation and amortization
 
273

 
31

 
110

 
5

 
—

 
419

Investment income
 
28

 
—

 
28

 
—

 
(8
)
 
48

Net interest charges
 
133

 
23

 
73

 
21

 
—

 
250

Income taxes
 
164

 
32

 
142

 
(23
)
 
10

 
325

Net income
 
280

 
56

 
242

 
(40
)
 
(8
)
 
530

Total assets
 
26,802

 
4,246

 
16,809

 
816

 
—

 
48,673

Total goodwill
 
5,025

 
526

 
877

 
—

 
—

 
6,428

Property additions
 
234

 
80

 
186

 
—

 
—

 
500

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
External revenues
 
$
6,857

 
$
557

 
$
4,942

 
$
(78
)
 
$
(22
)
 
$
12,256

Internal revenues
 
—

 
—

 
686

 
—

 
(684
)
 
2

Total revenues
 
6,857

 
557

 
5,628

 
(78
)
 
(706
)
 
12,258

Depreciation and amortization
 
636

 
89

 
307

 
25

 
—

 
1,057

Investment income
 
62

 
1

 
48

 
(1
)
 
(47
)
 
63

Net interest charges
 
396

 
68

 
175

 
57

 
—

 
696

Income taxes
 
355

 
101

 
173

 
(49
)
 
78

 
658

Net income*
 
603

 
171

 
295

 
(82
)
 
(68
)
 
919

Total assets
 
26,122

 
4,519

 
16,846

 
1,251

 
—

 
48,738

Total goodwill
 
5,025

 
526

 
893

 
—

 
—

 
6,444

Property additions
 
751

 
169

 
715

 
51

 
—

 
1,686

 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2011
 
 
 
 
 
 
 
 
 
 
 
 
External revenues
 
$
7,496

 
$
476

 
$
4,450

 
$
(93
)
 
$
(30
)
 
$
12,299

Internal revenues
 
1

 
—

 
976

 
—

 
(921
)
 
56

Total revenues
 
7,497

 
476

 
5,426

 
(93
)
 
(951
)
 
12,355

Depreciation and amortization
 
746

 
81

 
307

 
19

 
—

 
1,153

Investment income
 
76

 
—

 
49

 
1

 
(26
)
 
100

Net interest charges
 
389

 
64

 
195

 
60

 
—

 
708

Income taxes
 
322

 
79

 
163

 
(53
)
 
39

 
550

Net income
 
547

 
136

 
278

 
(145
)
 
(46
)
 
770

Total assets
 
26,802

 
4,246

 
16,809

 
816

 
—

 
48,673

Total goodwill
 
5,025

 
526

 
877

 
—

 
—

 
6,428

Property additions
 
615

 
250

 
543

 
56

 
—

 
1,464


* Regulated Distribution net income for the three and nine months ended September 30, 2012, include adjustments of $21.8 million and $15.1 million, respectively, from capitalizing various construction activities of the Allegheny Utilities that were previously expensed. The effect of these adjustments was not material to the current or previous periods.