For the transition period from | to |
Commission | Registrant; State of Incorporation; | I.R.S. Employer |
File Number | Address; and Telephone Number | Identification No. |
333-21011 | FIRSTENERGY CORP. | 34-1843785 |
(An Ohio Corporation) | ||
76 South Main Street | ||
Akron, OH 44308 | ||
Telephone (800)736-3402 | ||
333-145140-01 | FIRSTENERGY SOLUTIONS CORP. | 31-1560186 |
(An Ohio Corporation) | ||
c/o FirstEnergy Corp. | ||
76 South Main Street | ||
Akron, OH 44308 | ||
Telephone (800)736-3402 | ||
1-2578 | OHIO EDISON COMPANY | 34-0437786 |
(An Ohio Corporation) | ||
c/o FirstEnergy Corp. | ||
76 South Main Street | ||
Akron, OH 44308 | ||
Telephone (800)736-3402 | ||
1-2323 | THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | 34-0150020 |
(An Ohio Corporation) | ||
c/o FirstEnergy Corp. | ||
76 South Main Street | ||
Akron, OH 44308 | ||
Telephone (800)736-3402 | ||
1-3583 | THE TOLEDO EDISON COMPANY | 34-4375005 |
(An Ohio Corporation) | ||
c/o FirstEnergy Corp. | ||
76 South Main Street | ||
Akron, OH 44308 | ||
Telephone (800)736-3402 | ||
1-3141 | JERSEY CENTRAL POWER & LIGHT COMPANY | 21-0485010 |
(A New Jersey Corporation) | ||
c/o FirstEnergy Corp. | ||
76 South Main Street | ||
Akron, OH 44308 | ||
Telephone (800)736-3402 | ||
1-446 | METROPOLITAN EDISON COMPANY | 23-0870160 |
(A Pennsylvania Corporation) | ||
c/o FirstEnergy Corp. | ||
76 South Main Street | ||
Akron, OH 44308 | ||
Telephone (800)736-3402 | ||
1-3522 | PENNSYLVANIA ELECTRIC COMPANY | 25-0718085 |
(A Pennsylvania Corporation) | ||
c/o FirstEnergy Corp. | ||
76 South Main Street | ||
Akron, OH 44308 | ||
Telephone (800)736-3402 |
Yes (X) No ( ) | FirstEnergy Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company |
Yes ( ) No (X) | FirstEnergy Solutions Corp. |
Yes ( ) No ( ) | FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company, and Pennsylvania Electric Company |
Large Accelerated Filer (X) | FirstEnergy Corp. |
Accelerated Filer ( ) | N/A |
Non-accelerated Filer (Do not check if a smaller reporting company) (X) | FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company |
Smaller Reporting Company ( ) | N/A |
Yes ( )No (X) | FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company |
OUTSTANDING | |
CLASS | AS OF |
FirstEnergy Corp., $0.10 par value | 304,835,407 |
FirstEnergy Solutions Corp., no par value | 7 |
Ohio Edison Company, no par value | 60 |
The Cleveland Electric Illuminating Company, no par value | 67,930,743 |
The Toledo Edison Company, $5 par value | 29,402,054 |
Jersey Central Power & Light Company, $10 par value | |
Metropolitan Edison Company, no par value | 859,500 |
Pennsylvania Electric Company, $20 par value | 4,427,577 |
· | the speed and nature of increased competition in the electric utility industry and legislative and regulatory changes affecting how generation rates will be determined following the expiration of existing rate plans in Ohio and Pennsylvania, |
· | the impact of the PUCO’s |
· | economic or weather conditions affecting future sales and margins, |
· | changes in markets for energy services, |
· | changing energy and commodity market prices and availability, |
· | replacement power costs being higher than anticipated or inadequately hedged, |
· | the continued ability of FirstEnergy’s regulated utilities to collect transition and other charges or to recover increased transmission costs, |
· | maintenance costs being higher than anticipated, |
· | other legislative and regulatory changes, revised environmental requirements, including possible GHG emission regulations, |
· | the potential impact of the U.S. Court of Appeals’ July 11, 2008 decision requiring revisions to |
· | the uncertainty of the timing and amounts of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than |
· | adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight) by the NRC (including, but not limited to, the Demand for Information issued to FENOC on May 14, 2007), |
· |
Met-Ed’s and Penelec’s transmission service charge filings with the PPUC, |
· | the continuing availability of generating units and their ability to operate at or near full capacity, |
· | the ability to comply with applicable state and federal reliability standards, |
· | the ability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), |
· | the ability to improve electric commodity margins and to experience growth in the distribution business, |
· | the changing market conditions that could affect the value of assets held in the registrants’ nuclear decommissioning trusts, pension trusts and other trust funds, and cause FirstEnergy to make additional contributions sooner, or in an amount that is larger than currently anticipated, |
· | the ability to access the public securities and other capital and credit markets in accordance with FirstEnergy’s financing plan and the cost of such capital, |
· | changes in general economic conditions affecting the registrants, |
· | the state of the capital and credit markets affecting the registrants, |
· | interest rates and any actions taken by credit rating agencies that could negatively affect the registrants’ access to financing or its costs and increase requirements to post additional collateral to support outstanding commodity positions, LOCs and other financial guarantees, |
· | the continuing decline of the national and regional economy and its impact on the registrants’ major industrial and commercial customers, |
· | issues concerning the soundness of financial institutions and counterparties with which the registrants do business, and |
· | the risks and other factors discussed from time to time in the registrants’ SEC filings, and other similar factors. |
Pages | ||
Glossary of Terms | iii-v | |
Part I. Financial Information | ||
Items 1. and 2. - Financial Statements and Management’s Discussion and Analysis ofFinancial Condition and Results of Operations. | ||
FirstEnergy Corp. | ||
Management's Discussion and Analysis of Financial Condition and | 1-35 | |
Results of Operations | ||
Report of Independent Registered Public Accounting Firm | ||
Consolidated Statements of Income | ||
Consolidated Statements of Comprehensive Income | ||
Consolidated Balance Sheets | ||
Consolidated Statements of Cash Flows | ||
FirstEnergy Solutions Corp. | ||
Management's Narrative Analysis of Results of Operations | ||
Report of Independent Registered Public Accounting Firm | ||
Consolidated Statements of Income and Comprehensive Income | ||
Consolidated Balance Sheets | ||
Consolidated Statements of Cash Flows | ||
Ohio Edison Company | ||
Management's Narrative Analysis of Results of Operations | ||
Report of Independent Registered Public Accounting Firm | ||
Consolidated Statements of Income and Comprehensive Income | ||
Consolidated Balance Sheets | ||
Consolidated Statements of Cash Flows | ||
The Cleveland Electric Illuminating Company | ||
Management's Narrative Analysis of Results of Operations | ||
Report of Independent Registered Public Accounting Firm | ||
Consolidated Statements of Income and Comprehensive Income | ||
Consolidated Balance Sheets | ||
Consolidated Statements of Cash Flows | ||
The Toledo Edison Company | ||
Management's Narrative Analysis of Results of Operations | ||
Report of Independent Registered Public Accounting Firm | 62 | |
Consolidated Statements of Income and Comprehensive Income | 63 | |
Consolidated Balance Sheets | 64 | |
Consolidated Statements of Cash Flows | 65 | |
Jersey Central Power & Light Company | Pages | |
Management's Narrative Analysis of Results of Operations | 66-67 | |
Report of Independent Registered Public Accounting Firm | 68 | |
Consolidated Statements of Income and Comprehensive Income | 69 | |
Consolidated Balance Sheets | 70 | |
Consolidated Statements of Cash Flows | 71 | |
Metropolitan Edison Company | ||
Management's Narrative Analysis of Results of Operations | 72-73 | |
Report of Independent Registered Public Accounting Firm | 74 | |
Consolidated Statements of Income and Comprehensive Income | 75 | |
Consolidated Balance Sheets | 76 | |
Consolidated Statements of Cash Flows | 77 | |
Management's Narrative Analysis of Results of Operations | 78-79 | |
Report of Independent Registered Public Accounting Firm | 80 | |
Consolidated Statements of Income and Comprehensive Income | 81 | |
Consolidated Balance Sheets | 82 | |
Consolidated Statements of Cash Flows | 83 | |
Combined Management’s Discussion and Analysis of Registrant Subsidiaries | ||
Combined Notes to Consolidated Financial Statements | ||
Item 3. Quantitative and Qualitative Disclosures About Market Risk. | ||
Item 4. Controls and Procedures – FirstEnergy. | ||
Item 4T. Controls and Procedures – FES, OE, CEI, TE, JCP&L, Met-Ed and Penelec. | ||
Part II. Other Information | ||
Item 1. Legal Proceedings. | ||
Item 1A. Risk Factors. | ||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. | ||
Item 6. Exhibits. |
ATSI | American Transmission Systems, | |
CEI | The Cleveland Electric Illuminating Company, an Ohio electric utility operating subsidiary | |
FENOC | FirstEnergy Nuclear Operating Company, operates nuclear generating facilities | |
FES | FirstEnergy Solutions Corp., provides energy-related products and services | |
FESC | FirstEnergy Service Company, provides legal, financial and other corporate support services | |
FEV | FirstEnergy Ventures Corp., invests in certain unregulated enterprises and business ventures | |
FGCO | FirstEnergy Generation Corp., owns and operates non-nuclear generating facilities | |
FirstEnergy | FirstEnergy Corp., a public utility holding company | |
GPU | GPU, Inc., former parent of JCP&L, Met-Ed and Penelec, which merged with FirstEnergy on November 7, 2001 | |
JCP&L | Jersey Central Power & Light Company, a New Jersey electric utility operating subsidiary | |
JCP&L Transition Funding | JCP&L Transition Funding LLC, a Delaware limited liability company and issuer of transition bonds | |
JCP&L Transition Funding II | JCP&L Transition Funding II LLC, a Delaware limited liability company and issuer of transition bonds | |
Met-Ed | Metropolitan Edison Company, a Pennsylvania electric utility operating subsidiary | |
NGC | FirstEnergy Nuclear Generation Corp., owns nuclear generating facilities | |
OE | Ohio Edison Company, an Ohio electric utility operating subsidiary | |
Ohio Companies | CEI, OE and TE | |
Penelec | Pennsylvania Electric Company, a Pennsylvania electric utility operating subsidiary | |
Penn | Pennsylvania Power Company, a Pennsylvania electric utility operating subsidiary of OE | |
Pennsylvania Companies | Met-Ed, Penelec and Penn | |
PNBV | PNBV Capital Trust, a special purpose entity created by OE in 1996 | |
Shelf Registrants | OE, CEI, TE, JCP&L, Met-Ed and Penelec | |
Shippingport | Shippingport Capital Trust, a special purpose entity created by CEI and TE in 1997 | |
Signal Peak | A joint venture between FirstEnergy Ventures Corp. and Boich Companies, that owns mining and coal transportation operations near Roundup, Montana | |
TE | The Toledo Edison Company, an Ohio electric utility operating subsidiary | |
Utilities | OE, CEI, TE, Penn, JCP&L, Met-Ed and Penelec | |
Waverly | The Waverly Power and Light Company, a wholly owned subsidiary of Penelec | |
The following abbreviations and acronyms are used to identify frequently used terms in this report: | ||
AEP | American Electric Power Company, Inc. | |
ALJ | Administrative Law Judge | |
AOCL | Accumulated Other Comprehensive Loss | |
Air Quality Control | ||
BGS | Basic Generation Service | |
CAA | Clean Air Act | |
CAIR | Clean Air Interstate Rule | |
CAMR | Clean Air Mercury Rule | |
CBP | Competitive Bid Process | |
CO2 | Carbon Dioxide | |
DOJ | United States Department of Justice | |
Department of the Public Advocate, Division of | ||
EITF | Emerging Issues Task Force | |
EMP | Energy Master Plan | |
EPA | United States Environmental Protection Agency | |
EPACT | Energy Policy Act of 2005 | |
ESP | Electric Security Plan | |
FASB | Financial Accounting Standards Board | |
FERC | Federal Energy Regulatory Commission | |
FIN | FASB Interpretation | |
FIN 46R | FIN 46 (revised December 2003), "Consolidation of Variable Interest Entities" | |
FIN 48 | FIN 48, “Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109” |
FMB | First Mortgage Bond | |
FSP | FASB Staff Position | |
FSP FAS 107-1 and APB 28-1 | FSP FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments” | |
FSP FAS 115-1 and SFAS 124-1 | FSP FAS 115-1 and SFAS 124-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments” | |
FSP FAS 115-2 and FAS 124-2 | FSP FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments” | |
FSP FAS 132(R)-1 | FSP FAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit Plan Assets” | |
FSP FAS 157-4 | FSP FAS 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” | |
FTR | Financial Transmission Rights | |
GAAP | Accounting Principles Generally Accepted in the United States | |
GHG | Greenhouse Gases | |
ICE | Intercontinental Exchange | |
IRS | Internal Revenue Service | |
kV | Kilovolt | |
KWH | Kilowatt-hours | |
LED | Light-emitting Diode | |
LIBOR | London Interbank Offered Rate | |
LOC | Letter of Credit | |
MEIUG | Met-Ed Industrial Users Group | |
MISO | Midwest Independent Transmission System Operator, Inc. | |
Moody’s | Moody’s Investors Service, Inc. | |
MRO | Market Rate Offer | |
MW | Megawatts | |
MWH | Megawatt-hours | |
NAAQS | National Ambient Air Quality Standards | |
NERC | North American Electric Reliability Corporation | |
NJBPU | New Jersey Board of Public Utilities | |
NOV | Notice of Violation | |
NOX | Nitrogen Oxide | |
NRC | Nuclear Regulatory Commission | |
NSR | New Source Review | |
NUG | Non-Utility Generation | |
NUGC | Non-Utility Generation Charge | |
NYMEX | New York Mercantile Exchange | |
OVEC | Ohio Valley Electric Corporation | |
PCRB | Pollution Control Revenue Bond | |
PICA | Penelec Industrial Customer Alliance | |
PJM | PJM Interconnection L. L. C. | |
PLR | Provider of Last whose alternative supplier fails to deliver service | |
PPUC | Pennsylvania Public Utility Commission | |
PSA | Power Supply Agreement | |
PUCO | Public Utilities Commission of Ohio | |
PUHCA | Public Utility Holding Company Act of 1935 | |
RCP | Rate Certainty Plan | |
RECB | Regional Expansion Criteria and Benefits | |
RFP | Request for Proposal | |
RSP | Rate Stabilization Plan | |
RTC | Regulatory Transition Charge | |
RTO | Regional Transmission Organization | |
S&P | Standard & Poor’s Ratings Service | |
SB221 | Amended Substitute Senate Bill 221 | |
SBC | Societal Benefits Charge | |
SEC | U.S. Securities and Exchange Commission | |
SECA | Seams Elimination Cost Adjustment | |
SFAS | Statement of Financial Accounting Standards |
SFAS 115 | SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities" | |
SFAS 133 | SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” |
SFAS 157 | SFAS No. 157, “Fair Value Measurements” |
SFAS | SFAS No. |
SIP | State Implementation Plan(s) Under the Clean Air Act |
SNCR | Selective Non-Catalytic Reduction |
SO2 | Sulfur Dioxide |
TBC | Transition Bond Charge |
TMI-1 | Three Mile Island Unit 1 |
TMI-2 | Three Mile Island Unit 2 |
TSC | Transmission Service Charge |
VIE | Variable Interest Entity |
Change in Basic Earnings Per Share From Prior Year First Quarter | |
Basic Earnings Per Share – First Quarter 2008 | $ 0.91 |
Regulatory charges – 2009 | (0.55) |
Income tax resolution – 2009 | 0.04 |
Organizational restructuring – 2009 | (0.05) |
Gain on non-core asset sales – 2008 | (0.06) |
Trust securities impairment | (0.04) |
Revenues | 0.18 |
Fuel and purchased power | (0.24) |
Amortization / deferral of regulatory assets | 0.13 |
Other expenses | 0.07 |
Basic Earnings Per Share – First Quarter 2009 | $ 0.39 |
Three Months | Nine Months | ||||||
Change in Basic Earnings Per Share | Ended | Ended | |||||
From Prior Year Periods | September 30 | September 30 | |||||
Basic Earnings Per Share – 2007 | $ | 1.36 | $ | 3.39 | |||
Gain on non-core asset sales – 2008/2007 | (0.04 | ) | 0.02 | ||||
Litigation settlement – 2008 | - | 0.03 | |||||
Saxton decommissioning regulatory asset – 2007 | - | (0.05 | ) | ||||
Trust securities impairment | (0.05 | ) | (0.09 | ) | |||
Revenues | 0.57 | 1.36 | |||||
Fuel and purchased power | (0.34 | ) | (1.16 | ) | |||
Depreciation and amortization | (0.02 | ) | (0.07 | ) | |||
Deferral of new regulatory assets | (0.10 | ) | (0.23 | ) | |||
Investment Income – decommissioning trusts and corporate-owned life insurance | 0.04 | (0.05 | ) | ||||
Income tax adjustments | 0.12 | 0.12 | |||||
Other expense reductions | 0.01 | 0.02 | |||||
Reduced common shares outstanding | - | 0.03 | |||||
Basic Earnings Per Share – 2008 | $ | 1.55 | $ | 3.32 |
· | Energy Delivery Services transmits and distributes electricity through FirstEnergy’s eight utility operating companies, serving 4.5 million customers within 36,100 square miles of Ohio, Pennsylvania and New Jersey and purchases power for its PLR and default service requirements in Pennsylvania and New Jersey. This business segment derives its revenues principally from the delivery of electricity within FirstEnergy’s service areas |
· | Competitive Energy Services supplies the electric power needs of end-use customers through retail and wholesale arrangements, including associated company power sales to meet |
· | Ohio Transitional Generation Services supplies the electric power needs of non-shopping customers under the default service requirements of |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
Increase | Increase | |||||||||||||||||
2008 | 2007 | (Decrease) | 2008 | 2007 | (Decrease) | |||||||||||||
(In millions, except per share data) | ||||||||||||||||||
Net Income | ||||||||||||||||||
By Business Segment: | ||||||||||||||||||
Energy delivery services | $ | 283 | $ | 269 | $ | 14 | $ | 655 | $ | 695 | $ | (40 | ) | |||||
Competitive energy services | 164 | 148 | 16 | 317 | 388 | (71 | ) | |||||||||||
Ohio transitional generation services | 19 | 16 | 3 | 62 | 69 | (7 | ) | |||||||||||
Other and reconciling adjustments* | 5 | (20 | ) | 25 | (24) | (111 | ) | 87 | ||||||||||
Total | $ | 471 | $ | 413 | $ | 58 | $ | 1,010 | $ | 1,041 | $ | (31 | ) | |||||
Basic Earnings Per Share | $ | 1.55 | $ | 1.36 | $ | 0.19 | $ | 3.32 | $ | 3.39 | $ | (0.07 | ) | |||||
Diluted Earnings Per Share | $ | 1.54 | $ | 1.34 | $ | 0.20 | $ | 3.29 | $ | 3.35 | $ | (0.06 | ) |
Three Months Ended | ||||||||||
March 31 | Increase | |||||||||
2009 | 2008 | (Decrease) | ||||||||
Earnings (Loss) | (In millions, except per share data) | |||||||||
By Business Segment | ||||||||||
Energy delivery services | $ | (42 | ) | $ | 179 | $ | (221 | ) | ||
Competitive energy services | 155 | 87 | 68 | |||||||
Ohio transitional generation services | 24 | 23 | 1 | |||||||
Other and reconciling adjustments* | (18 | ) | (13 | ) | (5 | ) | ||||
Total | $ | 119 | $ | 276 | $ | (157 | ) | |||
Basic Earnings Per Share | $ | 0.39 | $ | 0.91 | $ | (0.52 | ) | |||
Diluted Earnings Per Share | $ | 0.39 | $ | 0.90 | $ | (0.51 | ) |
Ohio | ||||||||||||||||||||
Energy | Competitive | Transitional | Other and | |||||||||||||||||
Delivery | Energy | Generation | Reconciling | FirstEnergy | ||||||||||||||||
Third Quarter 2008 Financial Results | Services | Services | Services | Adjustments | Consolidated | |||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | 2,487 | $ | 381 | $ | 781 | $ | - | $ | 3,649 | ||||||||||
Other | 170 | 79 | 32 | (26 | ) | 255 | ||||||||||||||
Internal | - | 786 | - | (786 | ) | - | ||||||||||||||
Total Revenues | 2,657 | 1,246 | 813 | (812 | ) | 3,904 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | - | 356 | - | - | 356 | |||||||||||||||
Purchased power | 1,248 | 221 | 623 | (786 | ) | 1,306 | ||||||||||||||
Other operating expenses | 430 | 285 | 110 | (31 | ) | 794 | ||||||||||||||
Provision for depreciation | 99 | 67 | - | 2 | 168 | |||||||||||||||
Amortization of regulatory assets | 263 | - | 28 | - | 291 | |||||||||||||||
Deferral of new regulatory assets | (76 | ) | - | 18 | - | (58 | ) | |||||||||||||
General taxes | 169 | 26 | 1 | 5 | 201 | |||||||||||||||
Total Expenses | 2,133 | 955 | 780 | (810 | ) | 3,058 | ||||||||||||||
Operating Income | 524 | 291 | 33 | (2 | ) | 846 | ||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income | 48 | 13 | 1 | (22 | ) | 40 | ||||||||||||||
Interest expense | (102 | ) | (44 | ) | (1 | ) | (45 | ) | (192 | ) | ||||||||||
Capitalized interest | 1 | 13 | - | 1 | 15 | |||||||||||||||
Total Other Expense | (53 | ) | (18 | ) | - | (66 | ) | (137 | ) | |||||||||||
Income Before Income Taxes | 471 | 273 | 33 | (68 | ) | 709 | ||||||||||||||
Income taxes | 188 | 109 | 14 | (73 | ) | 238 | ||||||||||||||
Net Income | $ | 283 | $ | 164 | $ | 19 | $ | 5 | $ | 471 |
Ohio | ||||||||||||||||||||
Energy | Competitive | Transitional | Other and | |||||||||||||||||
Delivery | Energy | Generation | Reconciling | FirstEnergy | ||||||||||||||||
First Quarter 2009 Financial Results | Services | Services | Services | Adjustments | Consolidated | |||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | 1,959 | $ | 280 | $ | 902 | $ | - | $ | 3,141 | ||||||||||
Other | 150 | 55 | 10 | (22 | ) | 193 | ||||||||||||||
Internal | - | 893 | - | (893 | ) | - | ||||||||||||||
Total Revenues | 2,109 | 1,228 | 912 | (915 | ) | 3,334 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | - | 312 | - | - | 312 | |||||||||||||||
Purchased power | 978 | 160 | 898 | (893 | ) | 1,143 | ||||||||||||||
Other operating expenses | 480 | 355 | 18 | (26 | ) | 827 | ||||||||||||||
Provision for depreciation | 109 | 64 | - | 4 | 177 | |||||||||||||||
Amortization of regulatory assets | 406 | - | 5 | - | 411 | |||||||||||||||
Deferral of new regulatory assets | (43 | ) | - | (50 | ) | - | (93 | ) | ||||||||||||
General taxes | 168 | 32 | 2 | 9 | 211 | |||||||||||||||
Total Expenses | 2,098 | 923 | 873 | (906 | ) | 2,988 | ||||||||||||||
Operating Income | 11 | 305 | 39 | (9 | ) | 346 | ||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income (loss) | 29 | (29 | ) | 1 | (12 | ) | (11 | ) | ||||||||||||
Interest expense | (111 | ) | (28 | ) | - | (55 | ) | (194 | ) | |||||||||||
Capitalized interest | 1 | 10 | - | 17 | 28 | |||||||||||||||
Total Other Expense | (81 | ) | (47 | ) | 1 | (50 | ) | (177 | ) | |||||||||||
Income Before Income Taxes | (70 | ) | 258 | 40 | (59 | ) | 169 | |||||||||||||
Income taxes | (28 | ) | 103 | 16 | (37 | ) | 54 | |||||||||||||
Net Income (Loss) | (42 | ) | 155 | 24 | (22 | ) | 115 | |||||||||||||
Less: Noncontrolling interest income | - | - | - | (4 | ) | (4 | ) | |||||||||||||
Earnings (Loss) Available To Parent | $ | (42 | ) | $ | 155 | $ | 24 | $ | (18 | ) | $ | 119 |
Ohio | ||||||||||||||||||||
Energy | Competitive | Transitional | Other and | |||||||||||||||||
Delivery | Energy | Generation | Reconciling | FirstEnergy | ||||||||||||||||
First Quarter 2008 Financial Results | Services | Services | Services | Adjustments | Consolidated | |||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | 2,050 | $ | 289 | $ | 691 | $ | - | $ | 3,030 | ||||||||||
Other | 162 | 40 | 16 | 29 | 247 | |||||||||||||||
Internal | - | 776 | - | (776 | ) | - | ||||||||||||||
Total Revenues | 2,212 | 1,105 | 707 | (747 | ) | 3,277 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | 1 | 327 | - | - | 328 | |||||||||||||||
Purchased power | 982 | 206 | 588 | (776 | ) | 1,000 | ||||||||||||||
Other operating expenses | 445 | 309 | 77 | (32 | ) | 799 | ||||||||||||||
Provision for depreciation | 106 | 53 | - | 5 | 164 | |||||||||||||||
Amortization of regulatory assets | 249 | - | 9 | - | 258 | |||||||||||||||
Deferral of new regulatory assets | (100 | ) | - | (5 | ) | - | (105 | ) | ||||||||||||
General taxes | 173 | 32 | 1 | 9 | 215 | |||||||||||||||
Total Expenses | 1,856 | 927 | 670 | (794 | ) | 2,659 | ||||||||||||||
Operating Income | 356 | 178 | 37 | 47 | 618 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income | 45 | (6 | ) | 1 | (23 | ) | 17 | |||||||||||||
Interest expense | (103 | ) | (34 | ) | - | (42 | ) | (179 | ) | |||||||||||
Capitalized interest | - | 7 | - | 1 | 8 | |||||||||||||||
Total Other Expense | (58 | ) | (33 | ) | 1 | (64 | ) | (154 | ) | |||||||||||
Income Before Income Taxes | 298 | 145 | 38 | (17 | ) | 464 | ||||||||||||||
Income taxes | 119 | 58 | 15 | (5 | ) | 187 | ||||||||||||||
Net Income | 179 | 87 | 23 | (12 | ) | 277 | ||||||||||||||
Less: Noncontrolling interest income | - | - | - | 1 | 1 | |||||||||||||||
Earnings Available To Parent | $ | 179 | $ | 87 | $ | 23 | $ | (13 | ) | $ | 276 | |||||||||
Changes Between First Quarter 2009 and | ||||||||||||||||||||
First Quarter 2008 Financial Results | ||||||||||||||||||||
Increase (Decrease) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | (91 | ) | $ | (9 | ) | $ | 211 | $ | - | $ | 111 | ||||||||
Other | (12 | ) | 15 | (6 | ) | (51 | ) | (54 | ) | |||||||||||
Internal | - | 117 | - | (117 | ) | - | ||||||||||||||
Total Revenues | (103 | ) | 123 | 205 | (168 | ) | 57 | |||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | (1 | ) | (15 | ) | - | - | (16 | ) | ||||||||||||
Purchased power | (4 | ) | (46 | ) | 310 | (117 | ) | 143 | ||||||||||||
Other operating expenses | 35 | 46 | (59 | ) | 6 | 28 | ||||||||||||||
Provision for depreciation | 3 | 11 | - | (1 | ) | 13 | ||||||||||||||
Amortization of regulatory assets | 157 | - | (4 | ) | - | 153 | ||||||||||||||
Deferral of new regulatory assets | 57 | - | (45 | ) | - | 12 | ||||||||||||||
General taxes | (5 | ) | - | 1 | - | (4 | ) | |||||||||||||
Total Expenses | 242 | (4 | ) | 203 | (112 | ) | 329 | |||||||||||||
Operating Income | (345 | ) | 127 | 2 | (56 | ) | (272 | ) | ||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income (loss) | (16 | ) | (23 | ) | - | 11 | (28 | ) | ||||||||||||
Interest expense | (8 | ) | 6 | - | (13 | ) | (15 | ) | ||||||||||||
Capitalized interest | 1 | 3 | - | 16 | 20 | |||||||||||||||
Total Other Income (Expense) | (23 | ) | (14 | ) | - | 14 | (23 | ) | ||||||||||||
Income Before Income Taxes | (368 | ) | 113 | 2 | (42 | ) | (295 | ) | ||||||||||||
Income taxes | (147 | ) | 45 | 1 | (32 | ) | (133 | ) | ||||||||||||
Net Income | (221 | ) | 68 | 1 | (10 | ) | (162 | ) | ||||||||||||
Less: Noncontrolling interest income | - | - | - | (5 | ) | (5 | ) | |||||||||||||
Earnings Available To Parent | $ | (221 | ) | $ | 68 | $ | 1 | $ | (5 | ) | $ | (157 | ) |
Ohio | ||||||||||||||||||||
Energy | Competitive | Transitional | Other and | |||||||||||||||||
Delivery | Energy | Generation | Reconciling | FirstEnergy | ||||||||||||||||
Third Quarter 2007 Financial Results | Services | Services | Services | Adjustments | Consolidated | |||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | 2,340 | $ | 338 | $ | 716 | $ | - | $ | 3,394 | ||||||||||
Other | 180 | 32 | 7 | 28 | 247 | |||||||||||||||
Internal | - | 806 | - | (806 | ) | - | ||||||||||||||
Total Revenues | 2,520 | 1,176 | 723 | (778 | ) | 3,641 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | 2 | 325 | - | - | 327 | |||||||||||||||
Purchased power | 1,114 | 229 | 631 | (806 | ) | 1,168 | ||||||||||||||
Other operating expenses | 436 | 264 | 80 | (24 | ) | 756 | ||||||||||||||
Provision for depreciation | 102 | 51 | - | 9 | 162 | |||||||||||||||
Amortization of regulatory assets | 279 | - | 9 | - | 288 | |||||||||||||||
Deferral of new regulatory assets | (82 | ) | - | (25 | ) | - | (107 | ) | ||||||||||||
General taxes | 166 | 26 | 1 | 4 | 197 | |||||||||||||||
Total Expenses | 2,017 | 895 | 696 | (817 | ) | 2,791 | ||||||||||||||
Operating Income | 503 | 281 | 27 | 39 | 850 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income | 58 | 5 | - | (33 | ) | 30 | ||||||||||||||
Interest expense | (120 | ) | (44 | ) | - | (39 | ) | (203 | ) | |||||||||||
Capitalized interest | 3 | 5 | - | 1 | 9 | |||||||||||||||
Total Other Expense | (59 | ) | (34 | ) | - | (71 | ) | (164 | ) | |||||||||||
Income Before Income Taxes | 444 | 247 | 27 | (32 | ) | 686 | ||||||||||||||
Income taxes | 175 | 99 | 11 | (12 | ) | 273 | ||||||||||||||
Net Income | $ | 269 | $ | 148 | $ | 16 | $ | (20 | ) | $ | 413 | |||||||||
Changes Between Third Quarter 2008 and | ||||||||||||||||||||
Third Quarter 2007 Financial Results | ||||||||||||||||||||
Increase (Decrease) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | 147 | $ | 43 | $ | 65 | $ | - | $ | 255 | ||||||||||
Other | (10 | ) | 47 | 25 | (54 | ) | 8 | |||||||||||||
Internal | - | (20 | ) | - | 20 | - | ||||||||||||||
Total Revenues | 137 | 70 | 90 | (34 | ) | 263 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | (2 | ) | 31 | - | - | 29 | ||||||||||||||
Purchased power | 134 | (8 | ) | (8 | ) | 20 | 138 | |||||||||||||
Other operating expenses | (6 | ) | 21 | 30 | (7 | ) | 38 | |||||||||||||
Provision for depreciation | (3 | ) | 16 | - | (7 | ) | 6 | |||||||||||||
Amortization of regulatory assets | (16 | ) | - | 19 | - | 3 | ||||||||||||||
Deferral of new regulatory assets | 6 | - | 43 | - | 49 | |||||||||||||||
General taxes | 3 | - | - | 1 | 4 | |||||||||||||||
Total Expenses | 116 | 60 | 84 | 7 | 267 | |||||||||||||||
Operating Income | 21 | 10 | 6 | (41 | ) | (4 | ) | |||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income | (10 | ) | 8 | 1 | 11 | 10 | ||||||||||||||
Interest expense | 18 | - | (1 | ) | (6 | ) | 11 | |||||||||||||
Capitalized interest | (2 | ) | 8 | - | - | 6 | ||||||||||||||
Total Other Expense | 6 | 16 | - | 5 | 27 | |||||||||||||||
Income Before Income Taxes | 27 | 26 | 6 | (36 | ) | 23 | ||||||||||||||
Income taxes | 13 | 10 | 3 | (61 | ) | (35 | ) | |||||||||||||
Net Income | $ | 14 | $ | 16 | $ | 3 | $ | 25 | $ | 58 |
Three Months | ||||||||||
Ended September 30, | Increase | |||||||||
Revenues by Type of Service | 2008 | 2007 | (Decrease) | |||||||
(In millions) | ||||||||||
Distribution services | $ | 1,100 | $ | 1,104 | $ | (4 | ) | |||
Generation sales: | ||||||||||
Retail | 986 | 942 | 44 | |||||||
Wholesale | 286 | 207 | 79 | |||||||
Total generation sales | 1,272 | 1,149 | 123 | |||||||
Transmission | 241 | 219 | 22 | |||||||
Other | 44 | 48 | (4 | ) | ||||||
Total Revenues | $ | 2,657 | $ | 2,520 | $ | 137 |
Three Months Ended | ||||||||||
March 31 | Increase | |||||||||
Revenues by Type of Service | 2009 | 2008 | (Decrease) | |||||||
(In millions) | ||||||||||
Distribution services | $ | 849 | $ | 955 | $ | (106 | ) | |||
Generation sales: | ||||||||||
Retail | 812 | 790 | 22 | |||||||
Wholesale | 188 | 219 | (31 | ) | ||||||
Total generation sales | 1,000 | 1,009 | (9 | ) | ||||||
Transmission | 208 | 197 | 11 | |||||||
Other | 52 | 51 | 1 | |||||||
Total Revenues | $ | 2,109 | $ | 2,212 | $ | (103 | ) |
Electric Distribution KWH Deliveries | |||
Residential | % | ||
Commercial | ) % | ||
Industrial | ) % | ||
Total Distribution KWH Deliveries | ) % |
Sources of Change in Generation Revenues | Increase (Decrease) | |||
(In millions) | ||||
Retail: | ||||
Effect of 1.9 % decrease in sales volumes | $ | (18 | ) | |
Change in prices | 62 | |||
44 | ||||
Wholesale: | ||||
Effect of 2.4% decrease in sales volumes | (5 | ) | ||
Change in prices | 84 | |||
79 | ||||
Net Increase in Generation Revenues | $ | 123 |
Sources of Change in Generation Revenues | Increase (Decrease) | |||
(In millions) | ||||
Retail: | ||||
Effect of 3.5% decrease in sales volumes | $ | (27 | ) | |
Change in prices | 49 | |||
22 | ||||
Wholesale: | ||||
Effect of 11.6% decrease in sales volumes | (25 | ) | ||
Change in prices | (6 | ) | ||
(31 | ) | |||
Net Decrease in Generation Revenues | $ | (9 | ) |
· | Purchased power costs were |
Source of Change in Purchased Power | Increase (Decrease) | |||
(In millions) | ||||
Purchases from non-affiliates: | ||||
Change due to increased unit costs | $ | 120 | ||
Change due to decreased volumes | (103 | ) | ||
17 | ||||
Purchases from FES: | ||||
Change due to decreased unit costs | (9 | ) | ||
Change due to increased volumes | 22 | |||
13 | ||||
Increase in NUG costs deferred | (34 | ) | ||
Net Decrease in Purchased Power Costs | $ | (4 | ) |
· |
An increase in |
· |
· | The deferral of new regulatory assets decreased by $57 million during the |
· | Depreciation expense first quarter of 2008. |
· | General taxes |
Three Months Ended | ||||||||||
September 30, | Increase | |||||||||
Revenues By Type of Service | 2008 | 2007 | (Decrease) | |||||||
(In millions) | ||||||||||
Non-Affiliated Generation Sales: | ||||||||||
Retail | $ | 171 | $ | 189 | $ | (18 | ) | |||
Wholesale | 210 | 149 | 61 | |||||||
Total Non-Affiliated Generation Sales | 381 | 338 | 43 | |||||||
Affiliated Generation Sales | 786 | 806 | (20 | ) | ||||||
Transmission | 47 | 26 | 21 | |||||||
Other | 32 | 6 | 26 | |||||||
Total Revenues | $ | 1,246 | $ | 1,176 | $ | 70 |
Source of Change in Non-Affiliated Generation Revenues | Increase (Decrease) | |||
(In millions) | ||||
Retail: | ||||
Effect of 14.2% decrease in sales volumes | $ | (27 | ) | |
Change in prices | 9 | |||
(18 | ) | |||
Wholesale: | ||||
Effect of 28.8% increase in sales volumes | 43 | |||
Change in prices | 18 | |||
61 | ||||
Net Increase in Non-Affiliated Generation Revenues | $ | 43 |
Source of Change in Affiliated Generation Revenues | Increase (Decrease) | |||
(In millions) | ||||
Ohio Companies: | ||||
Effect of 3.6% decrease in sales volumes | $ | (22 | ) | |
Change in prices | 19 | |||
(3 | ) | |||
Pennsylvania Companies: | ||||
Effect of 5.9% decrease in sales volumes | (11 | ) | ||
Change in prices | (6 | ) | ||
(17 | ) | |||
Net Decrease in Affiliated Generation Revenues | $ | (20 | ) |
Three Months Ended | ||||||||||
September 30, | ||||||||||
Revenues by Type of Service | 2008 | 2007 | Increase | |||||||
(In millions) | ||||||||||
Generation sales: | ||||||||||
Retail | $ | 675 | $ | 622 | $ | 53 | ||||
Wholesale | 4 | 3 | 1 | |||||||
Total generation sales | 679 | 625 | 54 | |||||||
Transmission | 134 | 98 | 36 | |||||||
Total Revenues | $ | 813 | $ | 723 | $ | 90 |
Source of Change in Retail Generation Revenues | Increase (Decrease) | |||
(In millions) | ||||
Effect of 3.1% decrease in sales volumes | $ | (19 | ) | |
Change in prices | 72 | |||
Total Increase in Retail Generation Revenues | $ | 53 |
Ohio | ||||||||||||||||||||
Energy | Competitive | Transitional | Other and | |||||||||||||||||
Delivery | Energy | Generation | Reconciling | FirstEnergy | ||||||||||||||||
First Nine Months 2008 Financial Results | Services | Services | Services | Adjustments | Consolidated | |||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | 6,567 | $ | 994 | $ | 2,142 | $ | - | $ | 9,703 | ||||||||||
Other | 484 | 170 | 61 | 8 | 723 | |||||||||||||||
Internal | - | 2,266 | - | (2,266 | ) | - | ||||||||||||||
Total Revenues | 7,051 | 3,430 | 2,203 | (2,258 | ) | 10,426 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | 1 | 999 | - | - | 1,000 | |||||||||||||||
Purchased power | 3,228 | 648 | 1,766 | (2,266 | ) | 3,376 | ||||||||||||||
Other operating expenses | 1,288 | 906 | 268 | (87 | ) | 2,375 | ||||||||||||||
Provision for depreciation | 309 | 179 | - | 12 | 500 | |||||||||||||||
Amortization of regulatory assets | 747 | - | 48 | - | 795 | |||||||||||||||
Deferral of new regulatory assets | (274 | ) | - | 13 | - | (261 | ) | |||||||||||||
General taxes | 491 | 82 | 4 | 19 | 596 | |||||||||||||||
Total Expenses | 5,790 | 2,814 | 2,099 | (2,322 | ) | 8,381 | ||||||||||||||
Operating Income | 1,261 | 616 | 104 | 64 | 2,045 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income | 133 | (1 | ) | 1 | (60 | ) | 73 | |||||||||||||
Interest expense | (305 | ) | (116 | ) | (1 | ) | (137 | ) | (559 | ) | ||||||||||
Capitalized interest | 2 | 30 | - | 4 | 36 | |||||||||||||||
Total Other Expense | (170 | ) | (87 | ) | - | (193 | ) | (450 | ) | |||||||||||
Income Before Income Taxes | 1,091 | 529 | 104 | (129 | ) | 1,595 | ||||||||||||||
Income taxes | 436 | 212 | 42 | (105 | ) | 585 | ||||||||||||||
Net Income | $ | 655 | $ | 317 | $ | 62 | $ | (24 | ) | $ | 1,010 |
Ohio | ||||||||||||||||||||
Energy | Competitive | Transitional | Other and | |||||||||||||||||
Delivery | Energy | Generation | Reconciling | FirstEnergy | ||||||||||||||||
First Nine Months 2007 Financial Results | Services | Services | Services | Adjustments | Consolidated | |||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | 6,148 | $ | 973 | $ | 1,942 | $ | - | $ | 9,063 | ||||||||||
Other | 507 | 116 | 26 | 11 | 660 | |||||||||||||||
Internal | - | 2,210 | - | (2,210 | ) | - | ||||||||||||||
Total Revenues | 6,655 | 3,299 | 1,968 | (2,199 | ) | 9,723 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | 4 | 883 | - | - | 887 | |||||||||||||||
Purchased power | 2,834 | 578 | 1,712 | (2,210 | ) | 2,914 | ||||||||||||||
Other operating expenses | 1,255 | 839 | 218 | (57 | ) | 2,255 | ||||||||||||||
Provision for depreciation | 301 | 153 | - | 23 | 477 | |||||||||||||||
Amortization of regulatory assets | 765 | - | 20 | - | 785 | |||||||||||||||
Deferral of new regulatory assets | (299 | ) | - | (100 | ) | - | (399 | ) | ||||||||||||
General taxes | 486 | 81 | 3 | 19 | 589 | |||||||||||||||
Total Expenses | 5,346 | 2,534 | 1,853 | (2,225 | ) | 7,508 | ||||||||||||||
Operating Income | 1,309 | 765 | 115 | 26 | 2,215 | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income | 190 | 13 | 1 | (111 | ) | 93 | ||||||||||||||
Interest expense | (347 | ) | (144 | ) | (1 | ) | (101 | ) | (593 | ) | ||||||||||
Capitalized interest | 7 | 13 | - | 1 | 21 | |||||||||||||||
Total Other Expense | (150 | ) | (118 | ) | - | (211 | ) | (479 | ) | |||||||||||
Income Before Income Taxes | 1,159 | 647 | 115 | (185 | ) | 1,736 | ||||||||||||||
Income taxes | 464 | 259 | 46 | (74 | ) | 695 | ||||||||||||||
Net Income | $ | 695 | $ | 388 | $ | 69 | $ | (111 | ) | $ | 1,041 | |||||||||
Changes Between First Nine Months 2008 | ||||||||||||||||||||
and First Nine Months 2007 | ||||||||||||||||||||
Financial Results Increase (Decrease) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External | ||||||||||||||||||||
Electric | $ | 419 | $ | 21 | $ | 200 | $ | - | $ | 640 | ||||||||||
Other | (23 | ) | 54 | 35 | (3 | ) | 63 | |||||||||||||
Internal | - | 56 | - | (56 | ) | - | ||||||||||||||
Total Revenues | 396 | 131 | 235 | (59 | ) | 703 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Fuel | (3 | ) | 116 | - | - | 113 | ||||||||||||||
Purchased power | 394 | 70 | 54 | (56 | ) | 462 | ||||||||||||||
Other operating expenses | 33 | 67 | 50 | (30 | ) | 120 | ||||||||||||||
Provision for depreciation | 8 | 26 | - | (11 | ) | 23 | ||||||||||||||
Amortization of regulatory assets | (18 | ) | - | 28 | - | 10 | ||||||||||||||
Deferral of new regulatory assets | 25 | - | 113 | - | 138 | |||||||||||||||
General taxes | 5 | 1 | 1 | - | 7 | |||||||||||||||
Total Expenses | 444 | 280 | 246 | (97 | ) | 873 | ||||||||||||||
Operating Income | (48 | ) | (149 | ) | (11 | ) | 38 | (170 | ) | |||||||||||
Other Income (Expense): | ||||||||||||||||||||
Investment income | (57 | ) | (14 | ) | - | 51 | (20 | ) | ||||||||||||
Interest expense | 42 | 28 | - | (36 | ) | 34 | ||||||||||||||
Capitalized interest | (5 | ) | 17 | - | 3 | 15 | ||||||||||||||
Total Other Expense | (20 | ) | 31 | - | 18 | 29 | ||||||||||||||
Income Before Income Taxes | (68 | ) | (118 | ) | (11 | ) | 56 | (141 | ) | |||||||||||
Income taxes | (28 | ) | (47 | ) | (4 | ) | (31 | ) | (110 | ) | ||||||||||
Net Income | $ | (40 | ) | $ | (71 | ) | $ | (7 | ) | $ | 87 | $ | (31 | ) |
Nine Months Ended | ||||||||||
September 30, | Increase | |||||||||
Revenues by Type of Service | 2008 | 2007 | (Decrease) | |||||||
(In millions) | ||||||||||
Distribution services | $ | 2,974 | $ | 2,996 | $ | (22 | ) | |||
Generation sales: | ||||||||||
Retail | 2,548 | 2,417 | 131 | |||||||
Wholesale | 758 | 489 | 269 | |||||||
Total generation sales | 3,306 | 2,906 | 400 | |||||||
Transmission | 633 | 595 | 38 | |||||||
Other | 138 | 158 | (20 | ) | ||||||
Total Revenues | $ | 7,051 | $ | 6,655 | $ | 396 |
Increase | |||||
Sources of Change in Generation Revenues | (Decrease) | ||||
(In millions) | |||||
Retail: | |||||
Effect of 2.2% decrease in sales volumes | $ | (54 | ) | ||
Change in prices | 185 | ||||
131 | |||||
Wholesale: | |||||
Effect of 2.8% increase in sales volumes | 14 | ||||
Change in prices | 255 | ||||
269 | |||||
Net Increase in Generation Revenues | $ | 400 |
Nine Months Ended | ||||||||||
September 30, | Increase | |||||||||
Revenues by Type of Service | 2008 | 2007 | (Decrease) | |||||||
(In millions) | ||||||||||
Non-Affiliated Generation Sales: | ||||||||||
Retail | $ | 485 | $ | 547 | $ | (62 | ) | |||
Wholesale | 509 | 426 | 83 | |||||||
Total Non-Affiliated Generation Sales | 994 | 973 | 21 | |||||||
Affiliated Generation Sales | 2,266 | 2,210 | 56 | |||||||
Transmission | 113 | 71 | 42 | |||||||
Other | 57 | 45 | 12 | |||||||
Total Revenues | $ | 3,430 | $ | 3,299 | $ | 131 |
Three Months Ended | ||||||||||
March 31 | Increase | |||||||||
Revenues by Type of Service | 2009 | 2008 | (Decrease) | |||||||
(In millions) | ||||||||||
Non-Affiliated Generation Sales: | ||||||||||
Retail | $ | 91 | $ | 160 | $ | (69 | ) | |||
Wholesale | 189 | 129 | 60 | |||||||
Total Non-Affiliated Generation Sales | 280 | 289 | (9 | ) | ||||||
Affiliated Generation Sales | 893 | 776 | 117 | |||||||
Transmission | 25 | 33 | (8 | ) | ||||||
Lease Revenue | 25 | - | 25 | |||||||
Other | 5 | 7 | (2 | ) | ||||||
Total Revenues | $ | 1,228 | $ | 1,105 | $ | 123 |
Increase | ||||
Source of Change in Non-Affiliated Generation Revenues | (Decrease) | |||
(In millions) | ||||
Retail: | ||||
Effect of 13.2% decrease in sales volumes | $ | (73 | ) | |
Change in prices | 11 | |||
(62 | ) | |||
Wholesale: | ||||
Effect of 4.6% increase in sales volumes | 19 | |||
Change in prices | 64 | |||
83 | ||||
Net Increase in Non-Affiliated Generation Revenues | $ | 21 | ||
Increase | ||||
Source of Change in Affiliated Generation Revenues | (Decrease) | |||
(In millions) | ||||
Ohio Companies: | ||||
Effect of 1.7% decrease in sales volumes | $ | (28 | ) | |
Change in prices | 97 | |||
69 | ||||
Pennsylvania Companies: | ||||
Effect of 0.2% decrease in sales volumes | (1 | ) | ||
Change in prices | (12 | ) | ||
(13 | ) | |||
Net Increase in Affiliated Generation Revenues | $ | 56 |
Source of Change in Non-Affiliated Generation Revenues | Increase (Decrease) | |||
(In millions) | ||||
Retail: | ||||
Effect of 57.0% decrease in sales volumes | $ | (91 | ) | |
Change in prices | 22 | |||
(69 | ) | |||
Wholesale: | ||||
Effect of 33.9% increase in sales volumes | 44 | |||
Change in prices | 16 | |||
60 | ||||
Net Decrease in Non-Affiliated Generation Revenues | $ | (9 | ) |
Source of Change in Affiliated Generation Revenues | Increase (Decrease) | |||
(In millions) | ||||
Ohio Companies: | ||||
Effect of 24.6% decrease in sales volumes | $ | (142 | ) | |
Change in prices | 246 | |||
104 | ||||
Pennsylvania Companies: | ||||
Effect of 11.1% increase in sales volumes | 22 | |||
Change in prices | (9 | ) | ||
13 | ||||
Net Increase in Affiliated Generation Revenues | $ | 117 |
· | Purchased power costs |
· |
· | Fossil operating costs |
· | Other operating expenses increased |
· | Nuclear operating costs increased $16 million due to higher expenses associated with the |
· | Higher depreciation |
· |
Nine Months Ended | ||||||||||
September 30 | ||||||||||
Revenues by Type of Service | 2008 | 2007 | Increase | |||||||
(In millions) | ||||||||||
Generation sales: | ||||||||||
Retail | $ | 1,868 | $ | 1,712 | $ | 156 | ||||
Wholesale | 9 | 7 | 2 | |||||||
Total generation sales | 1,877 | 1,719 | 158 | |||||||
Transmission | 319 | 248 | 71 | |||||||
Other | 7 | 1 | 6 | |||||||
Total Revenues | $ | 2,203 | $ | 1,968 | $ | 235 |
Three Months Ended | ||||||||||
March 31 | ||||||||||
Revenues by Type of Service | 2009 | 2008 | Increase (Decrease) | |||||||
(In millions) | ||||||||||
Generation sales: | ||||||||||
Retail | $ | 801 | $ | 606 | $ | 195 | ||||
Wholesale | - | 3 | (3 | ) | ||||||
Total generation sales | 801 | 609 | 192 | |||||||
Transmission | 110 | 93 | 17 | |||||||
Other | 1 | 5 | (4 | ) | ||||||
Total Revenues | $ | 912 | $ | 707 | $ | 205 |
Source of Change in Generation Revenues | Increase | |||
(In millions) | ||||
Retail: | ||||
Effect of 1.4% decrease in sales volumes | $ | (24 | ) | |
Change in prices | 180 | |||
Total Increase in Retail Generation Revenues | $ | 156 |
Source of Change in Retail Generation Revenues | Increase | |||
(In millions) | ||||
Effect of 5.0% increase in sales volumes | $ | 30 | ||
Change in prices | 165 | |||
Total Increase in Retail Generation Revenues | $ | 195 |
Increase | ||||
Source of Change in Purchased Power | (Decrease) | |||
(In millions) | ||||
Purchases from non-affiliates: | ||||
Change due to decreased unit costs | $ | (3 | ) | |
Change due to decreased volumes | (13 | ) | ||
(16 | ) | |||
Purchases from FES: | ||||
Change due to increased unit costs | 98 | |||
Change due to decreased volumes | (28 | ) | ||
70 | ||||
Net Increase in Purchased Power Costs | $ | 54 |
Source of Change in Purchased Power | Increase | |||
(In millions) | ||||
Purchases: | ||||
Change due to increased unit costs | $ | 284 | ||
Change due to increased volumes | 26 | |||
$ | 310 |
Company | Type | Maturity | Commitment | Available | |||||
(In millions) | |||||||||
FirstEnergy(1) | Revolving | Aug. 2012 | $2,750 | 404 | |||||
FirstEnergy and FES | Revolving | May 2009 | 300 | 300 | |||||
FirstEnergy | Bank lines | Various(2) | 120 | 20 | |||||
FGCO | Term loan | Oct. 2009(3) | 300 | 300 | |||||
Ohio and Pennsylvania Companies | A/R financing | Various(4) | 550 | 445 | |||||
Subtotal: | $4,020 | $1,469 | |||||||
Cash: | - | 456 | |||||||
Total: | $4,020 | $1,925 |
Currently Payable Long-term Debt | ||||
(In millions) | ||||
PCRBs supported by bank LOCs (1) | $ | 2,126 | ||
CEI FMBs (2) | 125 | |||
CEI secured PCRBs (2) | 82 | |||
Penelec unsecured notes (3) | 100 | |||
NGC collateralized lease obligation bonds (4) | 37 | |||
Sinking fund requirements (5) | 39 | |||
$ | 2,509 |
Nine Months Ended | |||||||
September 30, | |||||||
Operating Cash Flows | 2008 | 2007 | |||||
(In millions) | |||||||
Net income | $ | 1,010 | $ | 1,041 | |||
Non-cash charges | 1,008 | 358 | |||||
Pension trust contribution | - | (300 | ) | ||||
Working capital and other | (590 | ) | 111 | ||||
$ | 1,428 | $ | 1,210 |
Currently Payable Long-term Debt | |||||
PCRBs supported by bank LOCs(1) | $ | 1,636 | |||
FGCO and NGC unsecured PCRBs(1) | 82 | ||||
Penelec unsecured notes(2) | 100 | ||||
CEI secured notes(3) | 150 | ||||
Met-Ed secured notes(4) | 100 | ||||
NGC collateralized lease obligation bonds | 36 | ||||
Sinking fund requirements | 40 | ||||
$ | 2,144 | ||||
(1) Interest rate mode permits individual debt holders to put the respective debt back to the issuer prior to maturity. (2) Matured in April 2009. (3) Mature in November 2009. (4) Mature in March 2010. |
Nine Months Ended | |||||||
Securities Issued or | September 30, | ||||||
Redeemed / Repurchased | 2008 | 2007 | |||||
(In millions) | |||||||
New issues | |||||||
Pollution control notes | $ | 611 | $ | - | |||
Unsecured notes | 20 | 1,100 | |||||
$ | 631 | $ | 1,100 | ||||
Redemptions / Repurchases | |||||||
First mortgage bonds | $ | 1 | $ | 287 | |||
Pollution control notes | 534 | 4 | |||||
Senior secured notes | 23 | 203 | |||||
Unsecured notes | 175 | 153 | |||||
Common stock | - | 918 | |||||
$ | 733 | $ | 1,565 |
Company | Type | Maturity | Commitment | Available Liquidity as of May 1, 2009 | |||||||
(In millions) | |||||||||||
FirstEnergy(1) | Revolving | Aug. 2012 | $ | 2,750 | $ | 227 | |||||
FirstEnergy and FES | Revolving | May 2009 | 300 | 300 | |||||||
FirstEnergy | Bank lines | Various(2) | 120 | 20 | |||||||
FGCO | Term loan | Oct. 2009(3) | 300 | 300 | |||||||
Ohio and Pennsylvania Companies | Receivables financing | Various(4) | 550 | 416 | |||||||
Subtotal | $ | 4,020 | $ | 1,263 | |||||||
Cash | - | 698 | |||||||||
Total | $ | 4,020 | $ | 1,961 | |||||||
(1) FirstEnergy Corp. and subsidiary borrowers. (2) $100 million matures March 31, 2011; $20 million uncommitted line of credit has no maturity date. (3) Drawn amounts are payable within 30 days and may not be re-borrowed. (4) $180 million expires December 18, 2009, $370 million expires February 22, 2010. |
Revolving | Regulatory and | ||||||
Credit Facility | Other Short-Term | ||||||
Borrower | Sub-Limit | Debt Limitations | |||||
(In millions) | |||||||
FirstEnergy | $ | 2,750 | $ | - | (1) | ||
OE | 500 | 500 | |||||
Penn | 50 | 39 | (2) | ||||
CEI | 250 | (3) | 500 | ||||
TE | 250 | (3) | 500 | ||||
JCP&L | 425 | 428 | (2) | ||||
Met-Ed | 250 | 300 | (2) | ||||
Penelec | 250 | 300 | (2) | ||||
FES | 1,000 | - | (1) | ||||
ATSI | - | (4) | 50 |
Revolving | Regulatory and | ||||||
Credit Facility | Other Short-Term | ||||||
Borrower | Sub-Limit | Debt Limitations | |||||
(In millions) | |||||||
FirstEnergy | $ | 2,750 | $ | - | (1) | ||
FES | 1,000 | - | (1) | ||||
OE | 500 | 500 | |||||
Penn | 50 | 39 | (2) | ||||
CEI | 250 | (3) | 500 | ||||
TE | 250 | (3) | 500 | ||||
JCP&L | 425 | 428 | (2) | ||||
Met-Ed | 250 | 300 | (2) | ||||
Penelec | 250 | 300 | (2) | ||||
ATSI | - | (4) | 50 | ||||
(1)No regulatory approvals, statutory or charter limitations applicable. (2)Excluding amounts which may be borrowed under the regulated companies’ money pool. (3)Borrowing sub-limits for CEI and TE may be increased to up to $500 million by delivering notice to the administrative agent that such borrower has senior unsecured debt ratings of at least BBB by S&P and Baa2 by Moody’s. (4)The borrowing sub-limit for ATSI may be increased up to $100 million by delivering notice to the administrative agent that either (i) ATSI has senior unsecured debt ratings of at least BBB- by S&P and Baa3 by Moody’s or (ii) FirstEnergy has guaranteed ATSI’s obligations of such borrower under the facility. |
Borrower | |||
FirstEnergy(1) | % | ||
FES | 57.3 | % | |
OE | % | ||
Penn | % | ||
CEI | % | ||
TE | % | ||
JCP&L | % | ||
Met-Ed | % | ||
Penelec | |||
% |
Aggregate LOC | Reimbursements of | ||||||
LOC Bank | Amount(4) | LOC Termination Date | LOC Draws Due | ||||
(In millions) | |||||||
Barclays Bank | $ | 149 | June 2009 | June 2009 | |||
Bank of America(1) | 101 | June 2009 | June 2009 | ||||
The Bank of Nova Scotia | 255 | Beginning June 2010 | Shorter of 6 months or LOC termination date | ||||
The Royal Bank of Scotland | 131 | June 2012 | 6 months | ||||
KeyBank(2) | 266 | June 2010 | 6 months | ||||
Wachovia Bank | 153 | March 2014 | March 2014 | ||||
Barclays Bank(3) | 528 | Beginning December 2010 | 30 days | ||||
PNC Bank | 70 | Beginning December 2010 | 180 days | ||||
Total | $ | 1,653 | |||||
(1) Supported by two participating banks, with each having 50% of the total commitment. (2) Supported by four participating banks, with the LOC bank having 62% of the total commitment. (3) Supported by 18 participating banks, with no one bank having more than 14% of the total commitment. (4) Includes approximately $16 million of applicable interest coverage. |
Issuer | Securities | S&P | Moody’s | |||
FirstEnergy | Senior unsecured | BBB- | Baa3 | |||
FES | Senior secured | BBB | Baa1 | |||
Senior unsecured | BBB | Baa2 | ||||
OE | Senior secured | BBB+ | Baa1 | |||
Senior unsecured | BBB | Baa2 | ||||
Penn | Senior secured | A- | Baa1 | |||
CEI | Senior secured | BBB+ | Baa2 | |||
Senior unsecured | BBB | Baa3 | ||||
TE | Senior secured | BBB+ | Baa2 | |||
Senior unsecured | BBB | Baa3 | ||||
JCP&L | Senior unsecured | BBB | Baa2 | |||
Met-Ed | Senior unsecured | BBB | Baa2 | |||
Penelec | Senior unsecured | BBB | Baa2 |
Three Months Ended | |||||||
March 31, | |||||||
Operating Cash Flows | 2009 | 2008 | |||||
(In millions) | |||||||
Net income | $ | 115 | $ | 277 | |||
Non-cash charges | 375 | 211 | |||||
Working capital and other | (28 | ) | (129 | ) | |||
$ | 462 | $ | 359 |
Three Months Ended | |||||||
March 31 | |||||||
Securities Issued or Redeemed | 2009 | 2008 | |||||
(In millions) | |||||||
New issues | |||||||
Pollution control notes | $ | 100 | $ | - | |||
Unsecured notes | 600 | - | |||||
$ | 700 | $ | - | ||||
Redemptions | |||||||
Pollution control notes(1) | $ | 437 | $ | 362 | |||
Senior secured notes | 7 | 6 | |||||
$ | 444 | $ | 368 | ||||
Short-term borrowings, net | $ | - | $ | 746 | |||
(1) Includes the mandatory purchase of certain auction rate PCRBs described above. |
Summary of Cash Flows Provided from | Property | ||||||||||||
(Used for) Investing Activities | Additions | Investments | Other | Total | |||||||||
Sources (Uses) | (In millions) | ||||||||||||
Nine Months Ended September 30, 2008 | |||||||||||||
Energy delivery services | $ | (621 | ) | $ | 33 | $ | (3 | ) | $ | (591 | ) | ||
Competitive energy services(1) | (1,430 | ) | (13 | ) | (121 | ) | (1,564 | ) | |||||
Other(2) | (106 | ) | 57 | (54 | ) | (103 | ) | ||||||
Inter-Segment reconciling items | (20 | ) | (12 | ) | - | (32 | ) | ||||||
Total | $ | (2,177 | ) | $ | 65 | $ | (178 | ) | $ | (2,290 | ) | ||
Nine Months Ended September 30, 2007 | |||||||||||||
Energy delivery services | $ | (609 | ) | $ | 6 | $ | (2 | ) | $ | (605 | ) | ||
Competitive energy services | (462 | ) | 1,311 | 2 | 851 | ||||||||
Other | (6 | ) | (4 | ) | 1 | (9 | ) | ||||||
Inter-Segment reconciling items | (50 | ) | (15 | ) | - | (65 | ) | ||||||
Total | $ | (1,127 | ) | $ | 1,298 | $ | 1 | $ | 172 | ||||
(1) Other investing activities include approximately $82 million in restricted funds to redeem outstanding debt in the fourth quarter of 2008. (2) Other investing activities include approximately $64 million in cash investments for the equity interest in Signal Peak. |
Summary of Cash Flows | Property | ||||||||||||
Provided from (Used for) Investing Activities | Additions | Investments | Other | Total | |||||||||
Sources (Uses) | (In millions) | ||||||||||||
Three Months Ended March 31, 2009 | |||||||||||||
Energy delivery services | $ | (165 | ) | $ | 51 | $ | (14 | ) | $ | (128 | ) | ||
Competitive energy services | (421 | ) | 2 | (19 | ) | (438 | ) | ||||||
Other | (49 | ) | (20 | ) | 1 | (68 | ) | ||||||
Inter-segment reconciling items | (19 | ) | (25 | ) | - | (44 | ) | ||||||
Total | $ | (654 | ) | 8 | (32 | ) | (678 | ) | |||||
Three Months Ended March 31, 2008 | |||||||||||||
Energy delivery services | $ | (255 | ) | $ | 33 | $ | 2 | $ | (220 | ) | |||
Competitive energy services | (462 | ) | (3 | ) | (19 | ) | (484 | ) | |||||
Other | (12 | ) | 68 | - | 56 | ||||||||
Inter-segment reconciling items | 18 | (12 | ) | - | 6 | ||||||||
Total | $ | (711 | ) | $ | 86 | $ | (17 | ) | $ | (642 | ) |
Maximum | ||||
Guarantees and Other Assurances | Exposure | |||
(In millions) | ||||
FirstEnergy Guarantees on Behalf of its Subsidiaries | ||||
Energy and Energy-Related Contracts (1) | $ | 433 | ||
LOC (long-term debt) – interest coverage (2) | 6 | |||
Other (3) | 742 | |||
1,181 | ||||
Subsidiaries’ Guarantees | ||||
Energy and Energy-Related Contracts | 77 | |||
LOC (long-term debt) – interest coverage (2) | 9 | |||
FES’ guarantee of FGCO’s sale and leaseback obligations | 2,552 | |||
2,638 | ||||
Surety Bonds | 111 | |||
LOC (long-term debt) – interest coverage (2) | 2 | |||
LOC (non-debt) (4)(5) | 570 | |||
683 | ||||
Total Guarantees and Other Assurances | $ | 4,502 |
Maximum | ||||
Guarantees and Other Assurances | Exposure | |||
(In millions) | ||||
FirstEnergy Guarantees of Subsidiaries | ||||
Energy and Energy-Related Contracts (1) | $ | 408 | ||
LOC (long-term debt) – interest coverage (2) | 6 | |||
Other (3) | 503 | |||
917 | ||||
Subsidiaries’ Guarantees | ||||
Energy and Energy-Related Contracts | 86 | |||
LOC (long-term debt) – interest coverage (2) | 11 | |||
FES’ guarantee of FGCO’s sale and leaseback obligations | 2,591 | |||
2,688 | ||||
Surety Bonds | 94 | |||
LOC (long-term debt) – interest coverage (2) | 5 | |||
LOC (non-debt) (4)(5) | 463 | |||
562 | ||||
Total Guarantees and Other Assurances | $ | 4,167 |
(1) | Issued for open-ended terms, with a 10-day termination right by FirstEnergy. |
(2) | Reflects the interest coverage portion of LOCs issued in support of floating rate PCRBs with various maturities. The principal amount of floating-rate PCRBs of |
(3) | Includes guarantees of $300 million for OVEC obligations and $80 million for nuclear decommissioning funding assurances. Also includes $300 million for a Credit Suisse credit facility for FGCO that is guaranteed by both FirstEnergy and FES. |
(4) | Includes under FirstEnergy’s revolving credit facility. |
(5) | Includes approximately $291 million pledged in connection with the sale and leaseback of Beaver Valley Unit 2 by OE and $134 million pledged in connection with the sale and leaseback of Perry Unit 1 by OE. A $236 million LOC relating to the sale-leaseback of Beaver Valley Unit 2 by OE expires in May 2009 and is expected to be replaced by a $161 million LOC. |
Collateral Provisions | FES | Utilities | Total | |||||||
(in millions) | ||||||||||
Credit rating downgrade to below investment grade | $ | 216 | $ | 293 | $ | 509 | ||||
Material adverse event | 56 | 8 | 64 | |||||||
Total | $ | 272 | $ | 301 | $ | 573 |
Collateral Provisions | FES | Utilities | Total | |||||||
(In millions) | ||||||||||
Credit rating downgrade to below investment grade | $ | 315 | $ | 170 | $ | 485 | ||||
Acceleration of payment or funding obligation | 80 | 141 | 221 | |||||||
Material adverse event | 50 | 5 | 55 | |||||||
Total | $ | 445 | $ | 316 | $ | 761 |
Three Months | Nine Months | ||||||||||||||||||
Increase (Decrease) in the Fair Value | Ended September 30, 2008 | Ended September 30, 2008 | |||||||||||||||||
of Derivative Contracts | Non-Hedge | Hedge | Total | Non-Hedge | Hedge | Total | |||||||||||||
(In millions) | |||||||||||||||||||
Change in the Fair Value of | |||||||||||||||||||
Commodity Derivative Contracts: | |||||||||||||||||||
Outstanding net liability at beginning of period | $ | (616 | ) | $ | (37 | ) | $ | (653 | ) | $ | (713 | ) | $ | (26 | ) | $ | (739 | ) | |
Additions/change in value of existing contracts | 23 | 33 | 56 | (10 | ) | 9 | (1 | ) | |||||||||||
Settled contracts | 18 | (6 | ) | 12 | 148 | 7 | 155 | ||||||||||||
Outstanding net liability at end of period (1) | (575 | ) | (10 | ) | (585 | ) | (575 | ) | (10 | ) | (585 | ) | |||||||
Non-commodity Net Assets at End of Period: | |||||||||||||||||||
Interest rate swaps (2) | - | - | - | - | - | - | |||||||||||||
Net Liabilities - Derivative Contracts at End of Period | $ | (575 | ) | $ | (10 | ) | $ | (585 | ) | $ | (575 | ) | $ | (10 | ) | $ | (585 | ) | |
Impact of Changes in Commodity Derivative Contracts(3) | |||||||||||||||||||
Income Statement effects (pre-tax) | $ | (1 | ) | $ | - | $ | (1 | ) | $ | - | $ | - | $ | - | |||||
Balance Sheet effects: | |||||||||||||||||||
Other comprehensive income (pre-tax) | $ | - | $ | 27 | $ | 27 | $ | - | $ | 16 | $ | 16 | |||||||
Regulatory assets (net) | $ | (42 | ) | $ | - | $ | (42 | ) | $ | (138 | ) | $ | - | $ | (138 | ) |
Fair Value of Commodity Derivative Contracts | Non-Hedge | Hedge | Total | |||||||
(In millions) | ||||||||||
Change in the Fair Value of | ||||||||||
Commodity Derivative Contracts: | ||||||||||
Outstanding net liability as of January 1, 2009 | $ | (304 | ) | $ | (41 | ) | $ | (345 | ) | |
Additions/change in value of existing contracts | (227 | ) | (10 | ) | (237 | ) | ||||
Settled contracts | 74 | 22 | 96 | |||||||
Outstanding net liability as of March 31, 2009 (1) | $ | (457 | ) | $ | (29 | ) | $ | (486 | ) | |
Non-commodity Net Liabilities as of March 31, 2009: | ||||||||||
Interest rate swaps (2) | - | (4 | ) | (4 | ) | |||||
Net Liabilities - Derivative Contracts as of March 31, 2009 | $ | (457 | ) | $ | (33 | ) | $ | (490 | ) | |
Impact of Changes in Commodity Derivative Contracts(3) | ||||||||||
Income Statement effects (pre-tax) | $ | 1 | $ | - | $ | 1 | ||||
Balance Sheet effects: | ||||||||||
Other comprehensive income (pre-tax) | $ | - | $ | 12 | $ | 12 | ||||
Regulatory assets (net) | $ | 154 | $ | - | $ | 154 | ||||
(1) Includes $457 million in non-hedge commodity derivative contracts (primarily with NUGs), which are offset by a regulatory asset. (2) Interest rate swaps are treated as cash flow or fair value hedges. (3) Represents the change in value of existing contracts, settled contracts and changes in techniques/assumptions. |
Balance Sheet Classification | Non-Hedge | Hedge | Total | Non-Hedge | Hedge | Total | ||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||
Current- | ||||||||||||||||||||
Other assets | $ | - | $ | 14 | $ | 14 | $ | 1 | $ | 23 | $ | 24 | ||||||||
Other liabilities | - | (26 | ) | (26 | ) | (1 | ) | (44 | ) | (45 | ) | |||||||||
Non-Current- | ||||||||||||||||||||
Other deferred charges | 28 | 3 | 31 | 359 | - | 359 | ||||||||||||||
Other non-current liabilities | (603 | ) | (1 | ) | (604 | ) | (816 | ) | (12 | ) | (828 | ) | ||||||||
Net liabilities | $ | (575 | ) | $ | (10 | ) | $ | (585 | ) | $ | (457 | ) | $ | (33 | ) | $ | (490 | ) |
Source of Information | ||||||||||||||||||||||
- Fair Value by Contract Year | 2008(1) | 2009 | 2010 | 2011 | 2012 | Thereafter | Total | |||||||||||||||
(In millions) | ||||||||||||||||||||||
Prices actively quoted(2) | $ | (2) | $ | (5) | $ | (1) | $ | - | $ | - | $ | - | $ | (8) | ||||||||
Other external sources(3) | (58) | (182) | (151) | (106) | - | - | (497) | |||||||||||||||
Prices based on models | - | - | - | - | (32) | (48) | (80) | |||||||||||||||
Total(4) | $ | (60) | $ | (187) | $ | (152) | $ | (106) | $ | (32) | $ | (48) | $ | (585) |
Source of Information | ||||||||||||||||||||||
- Fair Value by Contract Year | 2009(1) | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | |||||||||||||||
(In millions) | ||||||||||||||||||||||
Prices actively quoted(2) | $ | (17 | ) | $ | (13 | ) | $ | - | $ | - | $ | - | $ | - | $ | (30 | ) | |||||
Other external sources(3) | (296 | ) | (241 | ) | (195 | ) | (107 | ) | - | - | (839 | ) | ||||||||||
Prices based on models | - | - | - | - | 44 | 339 | 383 | |||||||||||||||
Total(4) | $ | (313 | ) | $ | (254 | ) | $ | (195 | ) | $ | (107 | ) | $ | 44 | $ | 339 | $ | (486 | ) |
(4) | Includes $457 million in non-hedge commodity derivative contracts (primarily with NUGs), which are offset by a regulatory asset. |
September 30, 2008 | December 31, 2007 | March 31, 2009 | December 31, 2008 | |||||||||||||||||||||||||||||||||||
Notional | Maturity | Fair | Notional | Maturity | Fair | Notional | Maturity | Fair | Notional | Maturity | Fair | |||||||||||||||||||||||||||
Forward Starting Swaps | Amount | Date | Value | Amount | Date | Value | Amount | Date | Value | Amount | Date | Value | ||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||
Cash flow hedges | $ | 100 | 2009 | $ | - | $ | - | 2009 | $ | - | $ | 100 | 2009 | $ | (2 | ) | 100 | 2009 | $ | (2 | ) | |||||||||||||||||
100 | 2010 | - | - | 2010 | - | 100 | 2010 | (2 | ) | 100 | 2010 | (2 | ) | |||||||||||||||||||||||||
- | 2015 | - | 25 | 2015 | (1 | ) | - | 2011 | - | 100 | 2011 | 1 | ||||||||||||||||||||||||||
350 | 2018 | - | 325 | 2018 | (1 | ) | $ | 200 | $ | (4 | ) | 300 | $ | (3 | ) | |||||||||||||||||||||||
50 | 2020 | - | 50 | 2020 | (1 | ) | ||||||||||||||||||||||||||||||||
$ | 600 | $ | - | $ | 400 | $ | (3 | ) |
· | restructuring the electric generation business and allowing the Utilities' customers to select a competitive electric generation supplier other than the Utilities; |
· | establishing or defining the PLR obligations to customers in the Utilities' service areas; |
· | providing the Utilities with the opportunity to recover |
· | itemizing (unbundling) the price of electricity into its component elements – including generation, transmission, distribution and stranded costs recovery charges; |
· | continuing regulation of the Utilities' transmission and distribution systems; and |
· | requiring corporate separation of regulated and unregulated business activities. |
September 30, | December 31, | Increase | ||||||||
Regulatory Assets* | 2008 | 2007 | (Decrease) | |||||||
(In millions) | ||||||||||
OE | $ | 621 | $ | 737 | $ | (116 | ) | |||
CEI | 796 | 871 | (75 | ) | ||||||
TE | 145 | 204 | (59 | ) | ||||||
JCP&L | 1,295 | 1,596 | (301 | ) | ||||||
Met-Ed | 541 | 495 | 46 | |||||||
ATSI | 35 | 42 | (7 | ) | ||||||
Total | $ | 3,433 | $ | 3,945 | $ | (512 | ) |
March 31, | December 31, | Increase | ||||||||
Regulatory Assets* | 2009 | 2008 | (Decrease) | |||||||
(In millions) | ||||||||||
OE | $ | 545 | $ | 575 | $ | (30 | ) | |||
CEI | 618 | 784 | (166 | ) | ||||||
TE | 96 | 109 | (13 | ) | ||||||
JCP&L | 1,162 | 1,228 | (66 | ) | ||||||
Met-Ed | 490 | 413 | 77 | |||||||
ATSI | 27 | 31 | (4 | ) | ||||||
Total | $ | 2,938 | $ | 3,140 | $ | (202 | ) |
* | Penelec had net regulatory liabilities of approximately and of respectively. These net regulatory liabilities are included in Other Non-current Liabilities on the Consolidated Balance Sheets. |
September 30, | December 31, | Increase | ||||||||
Regulatory Assets By Source | 2008 | 2007 | (Decrease) | |||||||
(In millions) | ||||||||||
Regulatory transition costs | $ | 1,770 | $ | 2,363 | $ | (593 | ) | |||
Customer shopping incentives | 447 | 516 | (69 | ) | ||||||
Customer receivables for future income taxes | 247 | 295 | (48 | ) | ||||||
Loss on reacquired debt | 52 | 57 | (5 | ) | ||||||
Employee postretirement benefits | 33 | 39 | (6 | ) | ||||||
Nuclear decommissioning, decontamination | ||||||||||
and spent fuel disposal costs | (81 | ) | (115 | ) | 34 | |||||
Asset removal costs | (207 | ) | (183 | ) | (24 | ) | ||||
MISO/PJM transmission costs | 397 | 340 | 57 | |||||||
Fuel costs - RCP | 213 | 220 | (7 | ) | ||||||
Distribution costs - RCP | 450 | 321 | 129 | |||||||
Other | 112 | 92 | 20 | |||||||
Total | $ | 3,433 | $ | 3,945 | $ | (512 | ) |
March 31, | December 31, | Increase | ||||||||
Regulatory Assets By Source | 2009 | 2008 | (Decrease) | |||||||
(In millions) | ||||||||||
Regulatory transition costs | $ | 1,437 | $ | 1,452 | $ | (15 | ) | |||
Customer shopping incentives | 211 | 420 | (209 | ) | ||||||
Customer receivables for future income taxes | 220 | 245 | (25 | ) | ||||||
Loss on reacquired debt | 50 | 51 | (1 | ) | ||||||
Employee postretirement benefits | 29 | 31 | (2 | ) | ||||||
Nuclear decommissioning, decontamination | ||||||||||
and spent fuel disposal costs | (56 | ) | (57 | ) | 1 | |||||
Asset removal costs | (225 | ) | (215 | ) | (10 | ) | ||||
MISO/PJM transmission costs | 342 | 389 | (47 | ) | ||||||
Purchased power costs | 305 | 214 | 91 | |||||||
Distribution costs | 478 | 475 | 3 | |||||||
Other | 147 | 135 | 12 | |||||||
Total | $ | 2,938 | $ | 3,140 | $ | (202 | ) |
· | power acquired by utilities to serve customers after rate caps expire will be procured through a competitive procurement process that must include a mix of long-term and short-term contracts and spot market purchases; |
· | the competitive procurement process must be approved by the PPUC and may include auctions, |
· | utilities must provide for the installation of smart meter technology within 15 years; |
· | a minimum reduction in peak demand of 4.5% by May 31, 2013; |
· | minimum reductions in energy consumption of 1% and 3% by May 31, 2011 and May 31, 2013, respectively; and |
· | an expanded definition of alternative energy to include additional types of hydroelectric and biomass facilities. |
· | maximize energy efficiency to achieve a 20% reduction in energy consumption by 2020; |
· | reduce peak demand for electricity by 5,700 MW by 2020; |
· | meet 30% of the state’s electricity needs with renewable energy by 2020; |
· | examine smart grid technology and develop additional cogeneration and other generation resources consistent with the state’s greenhouse gas targets; and |
· | invest in innovative clean energy technologies and businesses to stimulate the industry’s growth in New Jersey. |
FSP FAS 115-2 and FAS 124-2 - “Recognition and Presentation of Other-Than-Temporary Impairments” |
FSP FAS 107-1 and APB 28-1 - “Interim Disclosures about Fair Value of Financial Instruments” |
PricewaterhouseCoopers LLP Cleveland, Ohio |
FIRSTENERGY CORP. | FIRSTENERGY CORP. | FIRSTENERGY CORP. | ||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | CONSOLIDATED STATEMENTS OF INCOME | CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
Three Months | Nine Months | Three Months Ended | ||||||||||||||||||||||
Ended September 30 | Ended September 30 | March 31 | ||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||
(In millions, except per share amounts) | 2009 | 2008 | ||||||||||||||||||||||
(In millions, except | ||||||||||||||||||||||||
per share amounts) | ||||||||||||||||||||||||
REVENUES: | REVENUES: | |||||||||||||||||||||||
Electric utilities | Electric utilities | $ | 3,469 | $ | 3,242 | $ | 9,247 | $ | 8,619 | $ | 3,020 | $ | 2,913 | |||||||||||
Unregulated businesses | Unregulated businesses | 435 | 399 | 1,179 | 1,104 | 314 | 364 | |||||||||||||||||
Total revenues * | 3,904 | 3,641 | 10,426 | 9,723 | ||||||||||||||||||||
Total revenues* | 3,334 | 3,277 | ||||||||||||||||||||||
EXPENSES: | EXPENSES: | |||||||||||||||||||||||
Fuel | Fuel | 356 | 327 | 1,000 | 887 | 312 | 328 | |||||||||||||||||
Purchased power | Purchased power | 1,306 | 1,168 | 3,376 | 2,914 | 1,143 | 1,000 | |||||||||||||||||
Other operating expenses | Other operating expenses | 794 | 756 | 2,375 | 2,255 | 827 | 799 | |||||||||||||||||
Provision for depreciation | Provision for depreciation | 168 | 162 | 500 | 477 | 177 | 164 | |||||||||||||||||
Amortization of regulatory assets | Amortization of regulatory assets | 291 | 288 | 795 | 785 | 411 | 258 | |||||||||||||||||
Deferral of new regulatory assets | Deferral of new regulatory assets | (58 | ) | (107 | ) | (261 | ) | (399 | ) | (93 | ) | (105 | ) | |||||||||||
General taxes | General taxes | 201 | 197 | 596 | 589 | 211 | 215 | |||||||||||||||||
Total expenses | Total expenses | 3,058 | 2,791 | 8,381 | 7,508 | 2,988 | 2,659 | |||||||||||||||||
OPERATING INCOME | OPERATING INCOME | 846 | 850 | 2,045 | 2,215 | 346 | 618 | |||||||||||||||||
OTHER INCOME (EXPENSE): | OTHER INCOME (EXPENSE): | |||||||||||||||||||||||
Investment income | 40 | 30 | 73 | 93 | ||||||||||||||||||||
Investment income (loss), net | (11 | ) | 17 | |||||||||||||||||||||
Interest expense | Interest expense | (192 | ) | (203 | ) | (559 | ) | (593 | ) | (194 | ) | (179 | ) | |||||||||||
Capitalized interest | Capitalized interest | 15 | 9 | 36 | 21 | 28 | 8 | |||||||||||||||||
Total other expense | Total other expense | (137 | ) | (164 | ) | (450 | ) | (479 | ) | (177 | ) | (154 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | INCOME BEFORE INCOME TAXES | 709 | 686 | 1,595 | 1,736 | 169 | 464 | |||||||||||||||||
INCOME TAXES | INCOME TAXES | 238 | 273 | 585 | 695 | 54 | 187 | |||||||||||||||||
NET INCOME | NET INCOME | $ | 471 | $ | 413 | $ | 1,010 | $ | 1,041 | 115 | 277 | |||||||||||||
Less: Noncontrolling interest income (loss) | (4 | ) | 1 | |||||||||||||||||||||
EARNINGS AVAILABLE TO PARENT | $ | 119 | $ | 276 | ||||||||||||||||||||
BASIC EARNINGS PER SHARE OF COMMON STOCK | BASIC EARNINGS PER SHARE OF COMMON STOCK | $ | 1.55 | $ | 1.36 | $ | 3.32 | $ | 3.39 | $ | 0.39 | $ | 0.91 | |||||||||||
WEIGHTED AVERAGE NUMBER OF | ||||||||||||||||||||||||
BASIC SHARES OUTSTANDING | 304 | 304 | 304 | 307 | ||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF BASIC SHARES OUTSTANDING | 304 | 304 | ||||||||||||||||||||||
DILUTED EARNINGS PER SHARE OF COMMON STOCK | DILUTED EARNINGS PER SHARE OF COMMON STOCK | $ | 1.54 | $ | 1.34 | $ | 3.29 | $ | 3.35 | $ | 0.39 | $ | 0.90 | |||||||||||
WEIGHTED AVERAGE NUMBER OF | ||||||||||||||||||||||||
DILUTED SHARES OUTSTANDING | 307 | 307 | 307 | 311 | ||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF DILUTED SHARES OUTSTANDING | 306 | 307 | ||||||||||||||||||||||
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK | DIVIDENDS DECLARED PER SHARE OF COMMON STOCK | $ | 1.10 | $ | 1.00 | $ | 1.65 | $ | 1.50 | $ | 0.55 | $ | 0.55 | |||||||||||
* Includes excise tax collections of $115 million and $113 million in the three months ended September 30, 2008 and 2007, | ||||||||||||||||||||||||
respectively, and $329 million and $322 million in the nine months ended September 2008 and 2007, respectively. | ||||||||||||||||||||||||
* Includes $109 million and $114 million of excise tax collections in the first quarter of 2009 and 2008, respectively. | * Includes $109 million and $114 million of excise tax collections in the first quarter of 2009 and 2008, respectively. | |||||||||||||||||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Corp. are an integral part of | ||||||||||||||||||||||||
these statements. | ||||||||||||||||||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Corp. are an integral part of these statements. | The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Corp. are an integral part of these statements. |
FIRSTENERGY CORP. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In millions) | ||||||||||||||||
NET INCOME | $ | 471 | $ | 413 | $ | 1,010 | $ | 1,041 | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Pension and other postretirement benefits | (20 | ) | (12 | ) | (60 | ) | (34 | ) | ||||||||
Unrealized gain (loss) on derivative hedges | 26 | (10 | ) | 21 | 10 | |||||||||||
Change in unrealized gain on available for sale securities | (100 | ) | 26 | (181 | ) | 89 | ||||||||||
Other comprehensive income (loss) | (94 | ) | 4 | (220 | ) | 65 | ||||||||||
Income tax expense (benefit) related to other | ||||||||||||||||
comprehensive income | (34 | ) | - | (81 | ) | 19 | ||||||||||
Other comprehensive income (loss), net of tax | (60 | ) | 4 | (139 | ) | 46 | ||||||||||
COMPREHENSIVE INCOME | $ | 411 | $ | 417 | $ | 871 | $ | 1,087 | ||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Corp. are an integral part of | ||||||||||||||||
these statements. |
FIRSTENERGY CORP. | |||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31 | |||||||
2009 | 2008 | ||||||
(In millions) | |||||||
NET INCOME | $ | 115 | $ | 277 | |||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||||
Pension and other postretirement benefits | 35 | (20 | ) | ||||
Unrealized gain (loss) on derivative hedges | 15 | (13 | ) | ||||
Change in unrealized gain on available-for-sale securities | (5 | ) | (58 | ) | |||
Other comprehensive income (loss) | 45 | (91 | ) | ||||
Income tax expense (benefit) related to other comprehensive income | 15 | (33 | ) | ||||
Other comprehensive income (loss), net of tax | 30 | (58 | ) | ||||
COMPREHENSIVE INCOME | 145 | 219 | |||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4 | ) | 1 | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO PARENT | $ | 149 | $ | 218 | |||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Corp. are an integral part of these statements. |
FIRSTENERGY CORP. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
(In millions) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 181 | $ | 129 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $31 million and | ||||||||
$36 million, respectively, for uncollectible accounts) | 1,383 | 1,256 | ||||||
Other (less accumulated provisions of $9 million and | ||||||||
$22 million, respectively, for uncollectible accounts) | 148 | 165 | ||||||
Materials and supplies, at average cost | 587 | 521 | ||||||
Prepayments and other | 505 | 159 | ||||||
2,804 | 2,230 | |||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||
In service | 26,141 | 24,619 | ||||||
Less - Accumulated provision for depreciation | 10,714 | 10,348 | ||||||
15,427 | 14,271 | |||||||
Construction work in progress | 1,730 | 1,112 | ||||||
17,157 | 15,383 | |||||||
INVESTMENTS: | ||||||||
Nuclear plant decommissioning trusts | 1,873 | 2,127 | ||||||
Investments in lease obligation bonds | 674 | 717 | ||||||
Other | 720 | 754 | ||||||
3,267 | 3,598 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Goodwill | 5,583 | 5,607 | ||||||
Regulatory assets | 3,433 | 3,945 | ||||||
Pension assets | 768 | 700 | ||||||
Other | 550 | 605 | ||||||
10,334 | 10,857 | |||||||
$ | 33,562 | $ | 32,068 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 2,509 | $ | 2,014 | ||||
Short-term borrowings | 2,392 | 903 | ||||||
Accounts payable | 744 | 777 | ||||||
Accrued taxes | 253 | 408 | ||||||
Other | 1,149 | 1,046 | ||||||
7,047 | 5,148 | |||||||
CAPITALIZATION: | ||||||||
Common stockholders’ equity- | ||||||||
Common stock, $0.10 par value, authorized 375,000,000 shares- | ||||||||
304,835,407 outstanding | 31 | 31 | ||||||
Other paid-in capital | 5,465 | 5,509 | ||||||
Accumulated other comprehensive loss | (189 | ) | (50 | ) | ||||
Retained earnings | 3,994 | 3,487 | ||||||
Total common stockholders' equity | 9,301 | 8,977 | ||||||
Long-term debt and other long-term obligations | 8,674 | 8,869 | ||||||
17,975 | 17,846 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Accumulated deferred income taxes | 2,793 | 2,671 | ||||||
Asset retirement obligations | 1,314 | 1,267 | ||||||
Deferred gain on sale and leaseback transaction | 1,035 | 1,060 | ||||||
Power purchase contract loss liability | 603 | 750 | ||||||
Retirement benefits | 914 | 894 | ||||||
Lease market valuation liability | 319 | 663 | ||||||
Other | 1,562 | 1,769 | ||||||
8,540 | 9,074 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 11) | ||||||||
$ | 33,562 | $ | 32,068 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Corp. are an integral part of these | ||||||||
balance sheets. |
FIRSTENERGY CORP. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
March 31, | December 31, | ||||||
2009 | 2008 | ||||||
(In millions) | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 399 | $ | 545 | |||
Receivables- | |||||||
Customers (less accumulated provisions of $27 million and $28 million, | |||||||
respectively, for uncollectible accounts) | 1,266 | 1,304 | |||||
Other (less accumulated provisions of $9 million for uncollectible accounts) | 159 | 167 | |||||
Materials and supplies, at average cost | 657 | 605 | |||||
Prepaid taxes | 318 | 283 | |||||
Other | 205 | 149 | |||||
3,004 | 3,053 | ||||||
PROPERTY, PLANT AND EQUIPMENT: | |||||||
In service | 26,757 | 26,482 | |||||
Less - Accumulated provision for depreciation | 10,947 | 10,821 | |||||
15,810 | 15,661 | ||||||
Construction work in progress | 2,397 | 2,062 | |||||
18,207 | 17,723 | ||||||
INVESTMENTS: | |||||||
Nuclear plant decommissioning trusts | 1,649 | 1,708 | |||||
Investments in lease obligation bonds | 561 | 598 | |||||
Other | 689 | 711 | |||||
2,899 | 3,017 | ||||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||||
Goodwill | 5,575 | 5,575 | |||||
Regulatory assets | 2,938 | 3,140 | |||||
Power purchase contract asset | 340 | 434 | |||||
Other | 594 | 579 | |||||
9,447 | 9,728 | ||||||
$ | 33,557 | $ | 33,521 | ||||
LIABILITIES AND CAPITALIZATION | |||||||
CURRENT LIABILITIES: | |||||||
Currently payable long-term debt | $ | 2,144 | $ | 2,476 | |||
Short-term borrowings | 2,397 | 2,397 | |||||
Accounts payable | 704 | 794 | |||||
Accrued taxes | 281 | 333 | |||||
Other | 1,169 | 1,098 | |||||
6,695 | 7,098 | ||||||
CAPITALIZATION: | |||||||
Common stockholders’ equity- | |||||||
Common stock, $0.10 par value, authorized 375,000,000 shares- | 31 | 31 | |||||
304,835,407 shares outstanding | |||||||
Other paid-in capital | 5,459 | 5,473 | |||||
Accumulated other comprehensive loss | (1,350 | ) | (1,380 | ) | |||
Retained earnings | 4,110 | 4,159 | |||||
Total common stockholders' equity | 8,250 | 8,283 | |||||
Noncontrolling interest | 34 | 32 | |||||
Total equity | 8,284 | 8,315 | |||||
Long-term debt and other long-term obligations | 9,697 | 9,100 | |||||
17,981 | 17,415 | ||||||
NONCURRENT LIABILITIES: | |||||||
Accumulated deferred income taxes | 2,130 | 2,163 | |||||
Asset retirement obligations | 1,356 | 1,335 | |||||
Deferred gain on sale and leaseback transaction | 1,018 | 1,027 | |||||
Power purchase contract liability | 816 | 766 | |||||
Retirement benefits | 1,896 | 1,884 | |||||
Lease market valuation liability | 296 | 308 | |||||
Other | 1,369 | 1,525 | |||||
8,881 | 9,008 | ||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 8) | |||||||
$ | 33,557 | $ | 33,521 | ||||
The accompanying Notes to Consolidated Financial Statements are an integral part of these balance sheets. |
FIRSTENERGY CORP. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31 | |||||||
2009 | 2008 | ||||||
(In millions) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 115 | $ | 277 | |||
Adjustments to reconcile net income to net cash from operating activities- | |||||||
Provision for depreciation | 177 | 164 | |||||
Amortization of regulatory assets | 411 | 258 | |||||
Deferral of new regulatory assets | (93 | ) | (105 | ) | |||
Nuclear fuel and lease amortization | 27 | 26 | |||||
Deferred purchased power and other costs | (62 | ) | (43 | ) | |||
Deferred income taxes and investment tax credits, net | (28 | ) | 89 | ||||
Investment impairment | 36 | 16 | |||||
Deferred rents and lease market valuation liability | (14 | ) | 4 | ||||
Stock-based compensation | (13 | ) | (35 | ) | |||
Accrued compensation and retirement benefits | (66 | ) | (142 | ) | |||
Gain on asset sales | (5 | ) | (37 | ) | |||
Electric service prepayment programs | (8 | ) | (19 | ) | |||
Cash collateral received (paid) | (15 | ) | 8 | ||||
Decrease (increase) in operating assets- | |||||||
Receivables | 46 | (6 | ) | ||||
Materials and supplies | (7 | ) | (17 | ) | |||
Prepaid taxes | (34 | ) | (100 | ) | |||
Increase (decrease) in operating liabilities- | |||||||
Accounts payable | (90 | ) | (23 | ) | |||
Accrued taxes | (51 | ) | (5 | ) | |||
Accrued interest | 118 | 91 | |||||
Other | 18 | (42 | ) | ||||
Net cash provided from operating activities | 462 | 359 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
New Financing- | |||||||
Long-term debt | 700 | - | |||||
Short-term borrowings, net | - | 746 | |||||
Redemptions and Repayments- | |||||||
Long-term debt | (444 | ) | (368 | ) | |||
Net controlled disbursement activity | (10 | ) | 6 | ||||
Common stock dividend payments | (168 | ) | (168 | ) | |||
Other | (8 | ) | 8 | ||||
Net cash provided from financing activities | 70 | 224 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Property additions | (654 | ) | (711 | ) | |||
Proceeds from asset sales | 8 | 50 | |||||
Sales of investment securities held in trusts | 567 | 361 | |||||
Purchases of investment securities held in trusts | (584 | ) | (384 | ) | |||
Cash investments | 17 | 58 | |||||
Other | (32 | ) | (16 | ) | |||
Net cash used for investing activities | (678 | ) | (642 | ) | |||
Net change in cash and cash equivalents | (146 | ) | (59 | ) | |||
Cash and cash equivalents at beginning of period | 545 | 129 | |||||
Cash and cash equivalents at end of period | $ | 399 | $ | 70 | |||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Corp. are an integral | |||||||
part of these statements. |
FIRSTENERGY CORP. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Nine Months | |||||||
Ended September 30 | |||||||
2008 | 2007 | ||||||
(In millions) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 1,010 | $ | 1,041 | |||
Adjustments to reconcile net income to net cash from operating activities- | |||||||
Provision for depreciation | 500 | 477 | |||||
Amortization of regulatory assets | 795 | 785 | |||||
Deferral of new regulatory assets | (261 | ) | (399 | ) | |||
Nuclear fuel and lease amortization | 82 | 75 | |||||
Deferred purchased power and other costs | (163 | ) | (265 | ) | |||
Deferred income taxes and investment tax credits, net | 278 | (158 | ) | ||||
Investment impairment | 63 | 16 | |||||
Deferred rents and lease market valuation liability | (62 | ) | (41 | ) | |||
Accrued compensation and retirement benefits | (127 | ) | (50 | ) | |||
Stock-based compensation | (74 | ) | (32 | ) | |||
Commodity derivative transactions, net | 4 | 5 | |||||
Gain on asset sales | (43 | ) | (35 | ) | |||
Cash collateral | 21 | (50 | ) | ||||
Pension trust contribution | - | (300 | ) | ||||
Decrease (increase) in operating assets- | |||||||
Receivables | (117 | ) | (329 | ) | |||
Materials and supplies | (34 | ) | 62 | ||||
Prepayments and other current assets | (264 | ) | (39 | ) | |||
Increase (decrease) in operating liabilities- | |||||||
Accounts payable | (34 | ) | (15 | ) | |||
Accrued taxes | (166 | ) | 355 | ||||
Accrued interest | 107 | 104 | |||||
Electric service prepayment programs | (58 | ) | (52 | ) | |||
Other | (29 | ) | 55 | ||||
Net cash provided from operating activities | 1,428 | 1,210 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
New Financing- | |||||||
Long-term debt | 631 | 1,100 | |||||
Short-term borrowings, net | 1,489 | - | |||||
Redemptions and Repayments- | |||||||
Common stock | - | (918 | ) | ||||
Long-term debt | (733 | ) | (647 | ) | |||
Short-term borrowings, net | - | (535 | ) | ||||
Net controlled disbursement activity | 6 | 6 | |||||
Stock-based compensation tax benefit | 24 | 16 | |||||
Common stock dividend payments | (503 | ) | (464 | ) | |||
Net cash provided from (used for) financing activities | 914 | (1,442 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Property additions | (2,177 | ) | (1,127 | ) | |||
Proceeds from asset sales | 64 | 37 | |||||
Proceeds from sale and leaseback transaction | - | 1,329 | |||||
Sales of investment securities held in trusts | 1,144 | 1,010 | |||||
Purchases of investment securities held in trusts | (1,215 | ) | (1,126 | ) | |||
Cash investments | 72 | 48 | |||||
Restricted funds for debt redemption | (82 | ) | - | ||||
Other | (96 | ) | 1 | ||||
Net cash provided from (used for) investing activities | (2,290 | ) | 172 | ||||
Net change in cash and cash equivalents | 52 | (60 | ) | ||||
Cash and cash equivalents at beginning of period | 129 | 90 | |||||
Cash and cash equivalents at end of period | $ | 181 | $ | 30 | |||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Corp. are an | |||||||
integral part of these statements. |
Three Months Ended | ||||||||||
March 31 | Increase | |||||||||
Revenues by Type of Service | 2009 | 2008 | (Decrease) | |||||||
(In millions) | ||||||||||
Non-Affiliated Generation Sales: | ||||||||||
Retail | $ | 91 | $ | 160 | $ | (69 | ) | |||
Wholesale | 189 | 129 | 60 | |||||||
Total Non-Affiliated Generation Sales | 280 | 289 | (9 | ) | ||||||
Affiliated Generation Sales | 893 | 776 | 117 | |||||||
Transmission | 25 | 33 | (8 | ) | ||||||
Other | 28 | 1 | 27 | |||||||
Total Revenues | $ | 1,226 | $ | 1,099 | $ | 127 |
Nine Months Ended | ||||||||||
September 30, | Increase | |||||||||
Revenues by Type of Service | 2008 | 2007 | (Decrease) | |||||||
(In millions) | ||||||||||
Non-Affiliated Generation Sales: | ||||||||||
Retail | $ | 485 | $ | 547 | $ | (62 | ) | |||
Wholesale | 509 | 426 | 83 | |||||||
Total Non-Affiliated Generation Sales | 994 | 973 | 21 | |||||||
Affiliated Generation Sales | 2,266 | 2,210 | 56 | |||||||
Transmission | 113 | 71 | 42 | |||||||
Other | 39 | 4 | 35 | |||||||
Total Revenues | $ | 3,412 | $ | 3,258 | $ | 154 |
Increase | ||||
Source of Change in Non-Affiliated Generation Revenues | (Decrease) | |||
(In millions) | ||||
Retail: | ||||
Effect of 13.2% decrease in sales volumes | $ | (73 | ) | |
Change in prices | 11 | |||
(62 | ) | |||
Wholesale: | ||||
Effect of 4.6% increase in sales volumes | 19 | |||
Change in prices | 64 | |||
83 | ||||
Net Increase in Non-Affiliated Generation Revenues | $ | 21 |
Increase | ||||
Source of Change in Non-Affiliated Generation Revenues | (Decrease) | |||
(In millions) | ||||
Retail: | ||||
Effect of 57.0% decrease in sales volumes | $ | (91 | ) | |
Change in prices | 22 | |||
(69 | ) | |||
Wholesale: | ||||
Effect of 33.9% increase in sales volumes | 44 | |||
Change in prices | 16 | |||
60 | ||||
Net Decrease in Non-Affiliated Generation Revenues | $ | (9 | ) |
Increase | ||||
Source of Change in Affiliated Generation Revenues | (Decrease) | |||
(In millions) | ||||
Ohio Companies: | ||||
Effect of 1.7% decrease in sales volumes | $ | (28 | ) | |
Change in prices | 97 | |||
69 | ||||
Pennsylvania Companies: | ||||
Effect of 0.2% decrease in sales volumes | (1 | ) | ||
Change in prices | (12 | ) | ||
(13 | ) | |||
Net Increase in Affiliated Generation Revenues | $ | 56 |
Increase | ||||
Source of Change in Affiliated Generation Revenues | (Decrease) | |||
(In millions) | ||||
Ohio Companies: | ||||
Effect of 24.6% decrease in sales volumes | $ | (142 | ) | |
Change in prices | 246 | |||
104 | ||||
Pennsylvania Companies: | ||||
Effect of 11.1% increase in sales volumes | 22 | |||
Change in prices | (9 | ) | ||
13 | ||||
Net Increase in Affiliated Generation Revenues | $ | 117 |
Source of Change in Fuel and Purchased Power | Increase (Decrease) | |||
(In millions) | ||||
Fossil Fuel: | ||||
Change due to increased unit costs | $ | 36 | ||
Change due to volume consumed | (52 | ) | ||
(16 | ) | |||
Nuclear Fuel: | ||||
Change due to increased unit costs | 1 | |||
Change due to volume consumed | - | |||
1 | ||||
Non-affiliated Purchased Power: | ||||
Change due to decreased unit costs | (15 | ) | ||
Change due to volume purchased | (31 | ) | ||
(46 | ) | |||
Affiliated Purchased Power: | ||||
Change due to increased unit costs | 40 | |||
Change due to volume purchased | (3 | ) | ||
37 | ||||
Net Decrease in Fuel and Purchased Power Costs | $ | (24 | ) |
Source of Change in Purchased Power Costs | Increase (Decrease) | |||
(In millions) | ||||
Purchased Power From Non-affiliates: | ||||
Change due to volume purchased | $ | (121 | ) | |
Change due to increased unit costs | 192 | |||
71 | ||||
Purchased Power From Affiliates | ||||
Change due to volume purchased | (126 | ) | ||
Change due to decreased unit costs | (8 | ) | ||
(134 | ) | |||
Net Decrease in Purchased Power Costs | $ | (63 | ) |
PricewaterhouseCoopers LLP Cleveland, Ohio |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: | ||||||||||||||||
Electric sales to affiliates | $ | 785,681 | $ | 805,372 | $ | 2,266,271 | $ | 2,209,743 | ||||||||
Electric sales to non-affiliates | 381,483 | 337,561 | 994,100 | 972,591 | ||||||||||||
Other | 74,440 | 27,975 | 151,627 | 75,598 | ||||||||||||
Total revenues | 1,241,604 | 1,170,908 | 3,411,998 | 3,257,932 | ||||||||||||
EXPENSES: | ||||||||||||||||
Fuel | 349,946 | 301,786 | 982,185 | 804,201 | ||||||||||||
Purchased power from non-affiliates | 221,493 | 228,755 | 648,556 | 577,831 | ||||||||||||
Purchased power from affiliates | 15,821 | 62,508 | 75,834 | 209,576 | ||||||||||||
Other operating expenses | 279,184 | 235,033 | 863,468 | 731,774 | ||||||||||||
Provision for depreciation | 64,633 | 48,500 | 170,535 | 145,030 | ||||||||||||
General taxes | 21,736 | 22,242 | 64,728 | 64,870 | ||||||||||||
Total expenses | 952,813 | 898,824 | 2,805,306 | 2,533,282 | ||||||||||||
OPERATING INCOME | 288,791 | 272,084 | 606,692 | 724,650 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Miscellaneous income | 18,427 | 12,655 | 13,449 | 47,756 | ||||||||||||
Interest expense - affiliates | (8,015 | ) | (9,641 | ) | (25,953 | ) | (61,904 | ) | ||||||||
Interest expense - other | (32,769 | ) | (31,794 | ) | (81,809 | ) | (70,845 | ) | ||||||||
Capitalized interest | 12,395 | 5,131 | 29,599 | 12,763 | ||||||||||||
Total other expense | (9,962 | ) | (23,649 | ) | (64,714 | ) | (72,230 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 278,829 | 248,435 | 541,978 | 652,420 | ||||||||||||
INCOME TAXES | 93,174 | 93,671 | 198,245 | 243,736 | ||||||||||||
NET INCOME | 185,655 | 154,764 | 343,733 | 408,684 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Pension and other postretirement benefits | (1,821 | ) | (1,360 | ) | (5,462 | ) | (4,080 | ) | ||||||||
Unrealized gain on derivative hedges | 27,277 | 4,863 | 15,075 | 9,451 | ||||||||||||
Change in unrealized gain on available-for-sale securities | (90,198 | ) | 21,263 | (159,759 | ) | 80,053 | ||||||||||
Other comprehensive income (loss) | (64,742 | ) | 24,766 | (150,146 | ) | 85,424 | ||||||||||
Income tax expense (benefit) related to other | ||||||||||||||||
comprehensive income | (24,781 | ) | 8,915 | (55,497 | ) | 30,474 | ||||||||||
Other comprehensive income (loss), net of tax | (39,961 | ) | 15,851 | (94,649 | ) | 54,950 | ||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 145,694 | $ | 170,615 | $ | 249,084 | $ | 463,634 | ||||||||
The accompanying Notes to Consolidated Financial Statements as they related to FirstEnergy Solutions Corp. are an integral part of | ||||||||||||||||
these balance sheets. |
FIRSTENERGY SOLUTIONS CORP. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
REVENUES: | ||||||||
Electric sales to affiliates | $ | 892,690 | $ | 776,307 | ||||
Electric sales to non-affiliates | 279,746 | 288,341 | ||||||
Other | 53,670 | 34,468 | ||||||
Total revenues | 1,226,106 | 1,099,116 | ||||||
EXPENSES: | ||||||||
Fuel | 306,158 | 321,689 | ||||||
Purchased power from non-affiliates | 160,342 | 206,724 | ||||||
Purchased power from affiliates | 63,207 | 25,485 | ||||||
Other operating expenses | 307,356 | 296,546 | ||||||
Provision for depreciation | 61,373 | 49,742 | ||||||
General taxes | 23,376 | 23,197 | ||||||
Total expenses | 921,812 | 923,383 | ||||||
OPERATING INCOME | 304,294 | 175,733 | ||||||
OTHER EXPENSE: | ||||||||
Miscellaneous expense | (26,363 | ) | (2,904 | ) | ||||
Interest expense to affiliates | (2,979 | ) | (7,210 | ) | ||||
Interest expense - other | (22,527 | ) | (24,535 | ) | ||||
Capitalized interest | 10,078 | 6,663 | ||||||
Total other expense | (41,791 | ) | (27,986 | ) | ||||
INCOME BEFORE INCOME TAXES | 262,503 | 147,747 | ||||||
INCOME TAXES | 91,822 | 57,763 | ||||||
NET INCOME | 170,681 | 89,984 | ||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
Pension and other postretirement benefits | 2,568 | (1,820 | ) | |||||
Unrealized gain on derivative hedges | 11,016 | 5,718 | ||||||
Change in unrealized gain on available-for-sale securities | (1,477 | ) | (51,852 | ) | ||||
Other comprehensive income (loss) | 12,107 | (47,954 | ) | |||||
Income tax expense (benefit) related to other comprehensive income | 4,709 | (17,403 | ) | |||||
Other comprehensive income (loss), net of tax | 7,398 | (30,551 | ) | |||||
TOTAL COMPREHENSIVE INCOME | $ | 178,079 | $ | 59,433 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Solutions Corp. are an | ||||||||
integral part of these statements. |
FIRSTENERGY SOLUTIONS CORP. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 2 | $ | 2 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $5,840,000 and $8,072,000, | ||||||||
respectively, for uncollectible accounts) | 137,126 | 133,846 | ||||||
Associated companies | 263,779 | 376,499 | ||||||
Other (less accumulated provisions of $6,798,000 and $9,000 | ||||||||
respectively, for uncollectible accounts) | 22,924 | 3,823 | ||||||
Notes receivable from associated companies | 156,926 | 92,784 | ||||||
Materials and supplies, at average cost | 497,276 | 427,015 | ||||||
Prepayments and other | 179,530 | 92,340 | ||||||
1,257,563 | 1,126,309 | |||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||
In service | 9,834,662 | 8,294,768 | ||||||
Less - Accumulated provision for depreciation | 4,211,717 | 3,892,013 | ||||||
5,622,945 | 4,402,755 | |||||||
Construction work in progress | 1,385,652 | 761,701 | ||||||
7,008,597 | 5,164,456 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Nuclear plant decommissioning trusts | 1,145,384 | 1,332,913 | ||||||
Long-term notes receivable from associated companies | 62,900 | 62,900 | ||||||
Other | 40,573 | 40,004 | ||||||
1,248,857 | 1,435,817 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Accumulated deferred income tax benefits | 230,341 | 276,923 | ||||||
Lease assignment receivable from associated companies | 71,356 | 215,258 | ||||||
Goodwill | 24,248 | 24,248 | ||||||
Property taxes | 47,774 | 47,774 | ||||||
Pension assets | 14,764 | 16,723 | ||||||
Unamortized sale and leaseback costs | 57,365 | 70,803 | ||||||
Other | 49,702 | 43,953 | ||||||
495,550 | 695,682 | |||||||
$ | 10,010,567 | $ | 8,422,264 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 1,938,215 | $ | 1,441,196 | ||||
Short-term borrowings- | ||||||||
Associated companies | 311,750 | 264,064 | ||||||
Other | 1,000,000 | 300,000 | ||||||
Accounts payable- | �� | |||||||
Associated companies | 361,447 | 445,264 | ||||||
Other | 163,173 | 177,121 | ||||||
Accrued taxes | 80,719 | 171,451 | ||||||
Other | 217,914 | 237,806 | ||||||
4,073,218 | 3,036,902 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, without par value, authorized 750 shares- | ||||||||
7 shares outstanding | 1,461,541 | 1,164,922 | ||||||
Accumulated other comprehensive income | 46,005 | 140,654 | ||||||
Retained earnings | 1,409,388 | 1,108,655 | ||||||
Total common stockholder's equity | 2,916,934 | 2,414,231 | ||||||
Long-term debt and other long-term obligations | 558,923 | 533,712 | ||||||
3,475,857 | 2,947,943 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Deferred gain on sale and leaseback transaction | 1,035,013 | 1,060,119 | ||||||
Accumulated deferred investment tax credits | 63,968 | 61,116 | ||||||
Asset retirement obligations | 849,475 | 810,114 | ||||||
Retirement benefits | 67,567 | 63,136 | ||||||
Property taxes | 48,095 | 48,095 | ||||||
Lease market valuation liability | 319,129 | 353,210 | ||||||
Other | 78,245 | 41,629 | ||||||
2,461,492 | 2,437,419 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||
$ | 10,010,567 | $ | 8,422,264 | |||||
The accompanying Notes to Consolidated Financial Statements as they related to FirstEnergy Solutions Corp. are an integral | ||||||||
part of these balance sheets. |
FIRSTENERGY SOLUTIONS CORP. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
March 31, | December 31, | |||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 34 | $ | 39 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $3,994,000 and $5,899,000, | ||||||||
respectively, for uncollectible accounts) | 54,554 | 86,123 | ||||||
Associated companies | 287,935 | 378,100 | ||||||
Other (less accumulated provisions of $6,702,000 and $6,815,000 | ||||||||
respectively, for uncollectible accounts) | 66,293 | 24,626 | ||||||
Notes receivable from associated companies | 433,137 | 129,175 | ||||||
Materials and supplies, at average cost | 567,687 | 521,761 | ||||||
Prepayments and other | 112,162 | 112,535 | ||||||
1,521,802 | 1,252,359 | |||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||
In service | 9,912,603 | 9,871,904 | ||||||
Less - Accumulated provision for depreciation | 4,327,241 | 4,254,721 | ||||||
5,585,362 | 5,617,183 | |||||||
Construction work in progress | 2,114,831 | 1,747,435 | ||||||
7,700,193 | 7,364,618 | |||||||
INVESTMENTS: | ||||||||
Nuclear plant decommissioning trusts | 995,476 | 1,033,717 | ||||||
Long-term notes receivable from associated companies | 62,900 | 62,900 | ||||||
Other | 31,898 | 61,591 | ||||||
1,090,274 | 1,158,208 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Accumulated deferred income tax benefits | 241,607 | 267,762 | ||||||
Lease assignment receivable from associated companies | 71,356 | 71,356 | ||||||
Goodwill | 24,248 | 24,248 | ||||||
Property taxes | 50,104 | 50,104 | ||||||
Unamortized sale and leaseback costs | 86,302 | 69,932 | ||||||
Other | 87,141 | 96,434 | ||||||
560,758 | 579,836 | |||||||
$ | 10,873,027 | $ | 10,355,021 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 1,690,942 | $ | 2,024,898 | ||||
Short-term borrowings- | ||||||||
Associated companies | 786,116 | 264,823 | ||||||
Other | 1,100,000 | 1,000,000 | ||||||
Accounts payable- | ||||||||
Associated companies | 409,160 | 472,338 | ||||||
Other | 144,837 | 154,593 | ||||||
Accrued taxes | 122,734 | 79,766 | ||||||
Other | 239,984 | 248,439 | ||||||
4,493,773 | 4,244,857 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity - | ||||||||
Common stock, without par value, authorized 750 shares, | ||||||||
7 shares outstanding | 1,462,133 | 1,464,229 | ||||||
Accumulated other comprehensive loss | (84,473 | ) | (91,871 | ) | ||||
Retained earnings | 1,742,746 | 1,572,065 | ||||||
Total common stockholder's equity | 3,120,406 | 2,944,423 | ||||||
Long-term debt and other long-term obligations | 670,061 | 571,448 | ||||||
3,790,467 | 3,515,871 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Deferred gain on sale and leaseback transaction | 1,018,156 | 1,026,584 | ||||||
Accumulated deferred investment tax credits | 61,645 | 62,728 | ||||||
Asset retirement obligations | 877,073 | 863,085 | ||||||
Retirement benefits | 198,803 | 194,177 | ||||||
Property taxes | 50,104 | 50,104 | ||||||
Lease market valuation liability | 296,376 | 307,705 | ||||||
Other | 86,630 | 89,910 | ||||||
2,588,787 | 2,594,293 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||
$ | 10,873,027 | $ | 10,355,021 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Solutions Corp. are an integral part | ||||||||
of these balance sheets. |
FIRSTENERGY SOLUTIONS CORP. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months | ||||||||
Ended September 30 | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 343,733 | $ | 408,684 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 170,535 | 145,030 | ||||||
Nuclear fuel and lease amortization | 81,950 | 75,102 | ||||||
Deferred rents and lease market valuation liability | (36,702 | ) | - | |||||
Deferred income taxes and investment tax credits, net | 91,082 | (381,042 | ) | |||||
Investment impairment | 58,173 | 14,296 | ||||||
Accrued compensation and retirement benefits | (2,110 | ) | 3,414 | |||||
Commodity derivative transactions, net | 3,634 | 4,913 | ||||||
Gain on asset sales | (11,319 | ) | (12,105 | ) | ||||
Cash collateral, net | (8,827 | ) | (19,798 | ) | ||||
Pension trust contribution | - | (64,020 | ) | |||||
Decrease (increase) in operating assets: | ||||||||
Receivables | 106,574 | (30,172 | ) | |||||
Materials and supplies | (35,498 | ) | 48,123 | |||||
Prepayments and other current assets | (10,762 | ) | (5,118 | ) | ||||
Increase (decrease) in operating liabilities: | ||||||||
Accounts payable | (61,035 | ) | (108,949 | ) | ||||
Accrued taxes | (90,767 | ) | 434,568 | |||||
Accrued interest | 15,420 | 14,355 | ||||||
Other | (59,948 | ) | (5,254 | ) | ||||
Net cash provided from operating activities | 554,133 | 522,027 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Long-term debt | 537,375 | - | ||||||
Equity contribution from parent | 280,000 | 700,000 | ||||||
Short-term borrowings, net | 747,686 | - | ||||||
Redemptions and Repayments- | ||||||||
Common stock | - | (600,000 | ) | |||||
Long-term debt | (460,902 | ) | (1,110,174 | ) | ||||
Short-term borrowings, net | - | (785,127 | ) | |||||
Common stock dividend payments | (43,000 | ) | (67,000 | ) | ||||
Net cash provided from (used for) financing activities | 1,061,159 | (1,862,301 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (1,417,205 | ) | (482,907 | ) | ||||
Proceeds from asset sales | 15,218 | 12,990 | ||||||
Proceeds from sale and leaseback transaction | - | 1,328,919 | ||||||
Sales of investment securities held in trusts | 596,291 | 521,535 | ||||||
Purchases of investment securities held in trusts | (624,899 | ) | (552,779 | ) | ||||
Loan repayments from (loans to) associated companies, net | (64,142 | ) | 510,307 | |||||
Restricted funds for debt redemption | (81,640 | ) | - | |||||
Other | (38,915 | ) | 2,209 | |||||
Net cash provided from (used for) investing activities | (1,615,292 | ) | 1,340,274 | |||||
Net change in cash and cash equivalents | - | - | ||||||
Cash and cash equivalents at beginning of period | 2 | 2 | ||||||
Cash and cash equivalents at end of period | $ | 2 | $ | 2 | ||||
The accompanying Notes to Consolidated Financial Statements as they related to FirstEnergy Solutions Corp. are | ||||||||
an integral part of these balance sheets. |
FIRSTENERGY SOLUTIONS CORP. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 170,681 | $ | 89,984 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 61,373 | 49,742 | ||||||
Nuclear fuel and lease amortization | 27,169 | 25,426 | ||||||
Deferred rents and lease market valuation liability | (37,522 | ) | (34,887 | ) | ||||
Deferred income taxes and investment tax credits, net | 24,866 | 30,781 | ||||||
Investment impairment | 33,535 | 14,943 | ||||||
Accrued compensation and retirement benefits | (3,439 | ) | (11,042 | ) | ||||
Commodity derivative transactions, net | 15,817 | 8,086 | ||||||
Gain on asset sales | (5,209 | ) | (4,964 | ) | ||||
Cash collateral, net | (5,492 | ) | 1,601 | |||||
Decrease (increase) in operating assets: | ||||||||
Receivables | 80,067 | 69,533 | ||||||
Materials and supplies | (865 | ) | (12,948 | ) | ||||
Prepayments and other current assets | (3,456 | ) | (12,260 | ) | ||||
Increase (decrease) in operating liabilities: | ||||||||
Accounts payable | (61,419 | ) | (17,149 | ) | ||||
Accrued taxes | 39,846 | (28,652 | ) | |||||
Accrued interest | 10,338 | (728 | ) | |||||
Other | 1,577 | (7,514 | ) | |||||
Net cash provided from operating activities | 347,867 | 159,952 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Long-term debt | 100,000 | - | ||||||
Short-term borrowings, net | 621,294 | 1,281,896 | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (335,916 | ) | (288,603 | ) | ||||
Common stock dividend payments | - | (10,000 | ) | |||||
Net cash provided from financing activities | 385,378 | 983,293 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (412,805 | ) | (476,529 | ) | ||||
Proceeds from asset sales | 7,573 | 5,088 | ||||||
Sales of investment securities held in trusts | 351,414 | 173,123 | ||||||
Purchases of investment securities held in trusts | (356,904 | ) | (181,079 | ) | ||||
Loans to associated companies, net | (303,963 | ) | (644,604 | ) | ||||
Other | (18,565 | ) | (19,244 | ) | ||||
Net cash used for investing activities | (733,250 | ) | (1,143,245 | ) | ||||
Net change in cash and cash equivalents | (5 | ) | - | |||||
Cash and cash equivalents at beginning of period | 39 | 2 | ||||||
Cash and cash equivalents at end of period | $ | 34 | $ | 2 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to FirstEnergy Solutions Corp. are an integral part of | ||||||||
these statements. |
Retail Generation KWH Sales | Increase (Decrease) | |||
Residential | 11.8 | % | ||
Commercial | 17.3 | % | ||
Industrial | (8.2 | )% | ||
Net Increase in Generation Sales | 7.2 | % |
Retail Generation Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 55 | ||
Commercial | 41 | |||
Industrial | 18 | |||
Increase in Generation Revenues | $ | 114 |
Distribution KWH Deliveries | Decrease | |||
Residential | )% | |||
Commercial | )% | |||
Industrial | ||||
Retail Generation Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 23 | ||
Commercial | 11 | |||
Industrial | 17 | |||
Increase in Generation Revenues | $ | 51 |
)% | ||||
Decrease in Distribution Deliveries | )% |
Distribution Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 3 | ||
Commercial | 7 | |||
Industrial | 6 | |||
Increase in Distribution Revenues | $ | 16 |
Distribution Revenues | Decrease | |||
(In millions) | ||||
Residential | $ | (8 | ) | |
Commercial | (22 | ) | ||
Industrial | (23 | ) | ||
Decrease in Distribution Revenues | $ | (53 | ) |
Expenses – Changes | Increase (Decrease) | |||
(In millions) | ||||
Purchased power costs | $ | (40 | ) | |
Other operating costs | (1 | ) | ||
Provision for depreciation | 1 | |||
Amortization of regulatory assets | 9 | |||
Deferral of new regulatory assets | 66 | |||
General taxes | 3 | |||
Net Increase in Expenses | $ | 38 |
Expenses – Changes | Increase (Decrease) | |||
(In millions) | ||||
Purchased power costs | $ | 130 | ||
Other operating costs | 17 | |||
Amortization of regulatory assets, net | (3 | ) | ||
General taxes | (1 | ) | ||
Net Increase in Expenses | $ | 143 |
PricewaterhouseCoopers LLP Cleveland, Ohio |
OHIO EDISON COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: | ||||||||||||||||
Electric sales | $ | 671,761 | $ | 638,336 | $ | 1,877,300 | $ | 1,802,110 | ||||||||
Excise tax collections | 30,500 | 30,472 | 87,165 | 89,077 | ||||||||||||
Total revenues | 702,261 | 668,808 | 1,964,465 | 1,891,187 | ||||||||||||
EXPENSES: | ||||||||||||||||
Purchased power | 349,374 | 364,709 | 997,609 | 1,037,200 | ||||||||||||
Other operating costs | 146,048 | 144,869 | 423,993 | 424,970 | ||||||||||||
Provision for depreciation | 14,997 | 19,482 | 57,904 | 57,440 | ||||||||||||
Amortization of regulatory assets | 57,660 | 53,026 | 154,054 | 144,569 | ||||||||||||
Deferral of new regulatory assets | (15,078 | ) | (41,417 | ) | (66,390 | ) | (132,410 | ) | ||||||||
General taxes | 49,255 | 46,158 | 144,097 | 141,296 | ||||||||||||
Total expenses | 602,256 | 586,827 | 1,711,267 | 1,673,065 | ||||||||||||
OPERATING INCOME | 100,005 | 81,981 | 253,198 | 218,122 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Investment income | 19,323 | 19,827 | 45,866 | 67,803 | ||||||||||||
Miscellaneous income (expense) | (1,089 | ) | 670 | (5,180 | ) | 3,362 | ||||||||||
Interest expense | (17,309 | ) | (20,311 | ) | (51,851 | ) | (62,749 | ) | ||||||||
Capitalized interest | 55 | 136 | 324 | 398 | ||||||||||||
Total other income (expense) | 980 | 322 | (10,841 | ) | 8,814 | |||||||||||
INCOME BEFORE INCOME TAXES | 100,985 | 82,303 | 242,357 | 226,936 | ||||||||||||
INCOME TAXES | 28,501 | 34,089 | 77,122 | 79,074 | ||||||||||||
NET INCOME | 72,484 | 48,214 | 165,235 | 147,862 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Pension and other postretirment benefits | (3,994 | ) | (3,423 | ) | (11,982 | ) | (10,270 | ) | ||||||||
Change in unrealized gain on available-for-sale securities | (9,936 | ) | 2,442 | (20,310 | ) | 7,415 | ||||||||||
Other comprehensive loss | (13,930 | ) | (981 | ) | (32,292 | ) | (2,855 | ) | ||||||||
Income tax benefit related to other comprehensive loss | (5,105 | ) | (573 | ) | (11,931 | ) | (1,688 | ) | ||||||||
Other comprehensive loss, net of tax | (8,825 | ) | (408 | ) | (20,361 | ) | (1,167 | ) | ||||||||
TOTAL COMPREHENSIVE INCOME | $ | 63,659 | $ | 47,806 | $ | 144,874 | $ | 146,695 | ||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to Ohio Edison Company are an integral part of | ||||||||||||||||
these statements. |
OHIO EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
STATEMENTS OF INCOME | ||||||||
REVENUES: | ||||||||
Electric sales | $ | 720,011 | $ | 622,271 | ||||
Excise and gross receipts tax collections | 28,980 | 30,378 | ||||||
Total revenues | 748,991 | 652,649 | ||||||
EXPENSES: | ||||||||
Purchased power from affiliates | 332,336 | 319,711 | ||||||
Purchased power from non-affiliates | 137,813 | 20,475 | ||||||
Other operating costs | 157,830 | 140,326 | ||||||
Provision for depreciation | 21,513 | 21,493 | ||||||
Amortization of regulatory assets, net | 20,211 | 23,127 | ||||||
General taxes | 49,120 | 50,453 | ||||||
Total expenses | 718,823 | 575,585 | ||||||
OPERATING INCOME | 30,168 | 77,064 | ||||||
OTHER INCOME (EXPENSE): | ||||||||
Investment income | 9,362 | 15,055 | ||||||
Miscellaneous expense | (810 | ) | (3,652 | ) | ||||
Interest expense | (23,287 | ) | (17,641 | ) | ||||
Capitalized interest | 220 | 110 | ||||||
Total other expense | (14,515 | ) | (6,128 | ) | ||||
INCOME BEFORE INCOME TAXES | 15,653 | 70,936 | ||||||
INCOME TAXES | 4,005 | 26,873 | ||||||
NET INCOME | 11,648 | 44,063 | ||||||
Less: Noncontrolling interest income | 146 | 154 | ||||||
EARNINGS AVAILABLE TO PARENT | $ | 11,502 | $ | 43,909 | ||||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
NET INCOME | $ | 11,648 | $ | 44,063 | ||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
Pension and other postretirement benefits | 5,738 | (3,994 | ) | |||||
Change in unrealized gain on available-for-sale securities | (2,709 | ) | (7,571 | ) | ||||
Other comprehensive income (loss) | 3,029 | (11,565 | ) | |||||
Income tax expense (benefit) related to other comprehensive income | 529 | (4,262 | ) | |||||
Other comprehensive income (loss), net of tax | 2,500 | (7,303 | ) | |||||
COMPREHENSIVE INCOME | 14,148 | 36,760 | ||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 146 | 154 | ||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO PARENT | $ | 14,002 | $ | 36,606 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Ohio Edison Company are an integral part | ||||||||
of these statements. |
OHIO EDISON COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 715 | $ | 732 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $6,888,000 and 8,032,000, | ||||||||
respectively, for uncollectible accounts) | 268,252 | 248,990 | ||||||
Associated companies | 205,776 | 185,437 | ||||||
Other (less accumulated provisions of $13,000 and $5,639,000 | ||||||||
respectively, for uncollectible accounts) | 16,731 | 12,395 | ||||||
Notes receivable from associated companies | 362,695 | 595,859 | ||||||
Prepayments and other | 11,285 | 10,341 | ||||||
865,454 | 1,053,754 | |||||||
UTILITY PLANT: | ||||||||
In service | 2,854,174 | 2,769,880 | ||||||
Less - Accumulated provision for depreciation | 1,101,572 | 1,090,862 | ||||||
1,752,602 | 1,679,018 | |||||||
Construction work in progress | 41,880 | 50,061 | ||||||
1,794,482 | 1,729,079 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Long-term notes receivable from associated companies | 257,457 | 258,870 | ||||||
Investment in lease obligation bonds | 248,751 | 253,894 | ||||||
Nuclear plant decommissioning trusts | 115,523 | 127,252 | ||||||
Other | 31,441 | 36,037 | ||||||
653,172 | 676,053 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Regulatory assets | 621,192 | 737,326 | ||||||
Pension assets | 250,762 | 228,518 | ||||||
Property taxes | 65,520 | 65,520 | ||||||
Unamortized sale and leaseback costs | 41,381 | 45,133 | ||||||
Other | 33,820 | 48,075 | ||||||
1,012,675 | 1,124,572 | |||||||
$ | 4,325,783 | $ | 4,583,458 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 159,662 | $ | 333,224 | ||||
Short-term borrowings- | ||||||||
Associated companies | - | 50,692 | ||||||
Other | 242,449 | 2,609 | ||||||
Accounts payable- | ||||||||
Associated companies | 95,604 | 174,088 | ||||||
Other | 20,902 | 19,881 | ||||||
Accrued taxes | 58,800 | 89,571 | ||||||
Accrued interest | 14,216 | 22,378 | ||||||
Other | 123,177 | 65,163 | ||||||
714,810 | 757,606 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, without par value, authorized 175,000,000 shares - | ||||||||
60 shares outstanding | 1,224,039 | 1,220,512 | ||||||
Accumulated other comprehensive income | 28,025 | 48,386 | ||||||
Retained earnings | 207,512 | 307,277 | ||||||
Total common stockholder's equity | 1,459,576 | 1,576,175 | ||||||
Long-term debt and other long-term obligations | 841,871 | 840,591 | ||||||
2,301,447 | 2,416,766 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Accumulated deferred income taxes | 776,042 | 781,012 | ||||||
Accumulated deferred investment tax credits | 14,040 | 16,964 | ||||||
Asset retirement obligations | 79,372 | 93,571 | ||||||
Retirement benefits | 173,297 | 178,343 | ||||||
Deferred revenues - electric service programs | 14,954 | 46,849 | ||||||
Other | 251,821 | 292,347 | ||||||
1,309,526 | 1,409,086 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||
$ | 4,325,783 | $ | 4,583,458 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to Ohio Edison Company are an integral | ||||||||
part of these balance sheets. |
OHIO EDISON COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
March 31, | December 31, | |||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 311,192 | $ | 146,343 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $6,621,000 and $6,065,000, respectively, | ||||||||
for uncollectible accounts) | 292,159 | 277,377 | ||||||
Associated companies | 217,455 | 234,960 | ||||||
Other (less accumulated provisions of $8,000 and $7,000, respectively, | ||||||||
for uncollectible accounts) | 19,492 | 14,492 | ||||||
Notes receivable from associated companies | 77,264 | 222,861 | ||||||
Prepayments and other | 22,544 | 5,452 | ||||||
940,106 | 901,485 | |||||||
UTILITY PLANT: | ||||||||
In service | 2,915,643 | 2,903,290 | ||||||
Less - Accumulated provision for depreciation | 1,120,219 | 1,113,357 | ||||||
1,795,424 | 1,789,933 | |||||||
Construction work in progress | 47,022 | 37,766 | ||||||
1,842,446 | 1,827,699 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Long-term notes receivable from associated companies | 256,473 | 256,974 | ||||||
Investment in lease obligation bonds | 239,501 | 239,625 | ||||||
Nuclear plant decommissioning trusts | 112,778 | 116,682 | ||||||
Other | 98,729 | 100,792 | ||||||
707,481 | 714,073 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Regulatory assets | 544,782 | 575,076 | ||||||
Property taxes | 60,542 | 60,542 | ||||||
Unamortized sale and leaseback costs | 38,880 | 40,130 | ||||||
Other | 32,418 | 33,710 | ||||||
676,622 | 709,458 | |||||||
$ | 4,166,655 | $ | 4,152,715 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 2,697 | $ | 101,354 | ||||
Short-term borrowings- | ||||||||
Associated companies | 79,810 | - | ||||||
Other | 1,540 | 1,540 | ||||||
Accounts payable- | ||||||||
Associated companies | 115,778 | 131,725 | ||||||
Other | 54,237 | 26,410 | ||||||
Accrued taxes | 72,736 | 77,592 | ||||||
Accrued interest | 23,717 | 25,673 | ||||||
Other | 124,871 | 85,209 | ||||||
475,386 | 449,503 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, without par value, authorized 175,000,000 shares - | ||||||||
60 shares outstanding | 1,224,347 | 1,224,416 | ||||||
Accumulated other comprehensive loss | (181,885 | ) | (184,385 | ) | ||||
Retained earnings | 265,525 | 254,023 | ||||||
Total common stockholder's equity | 1,307,987 | 1,294,054 | ||||||
Noncontrolling interest | 7,252 | 7,106 | ||||||
Total equity | 1,315,239 | 1,301,160 | ||||||
Long-term debt and other long-term obligations | 1,123,966 | 1,122,247 | ||||||
2,439,205 | 2,423,407 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Accumulated deferred income taxes | 650,601 | 653,475 | ||||||
Accumulated deferred investment tax credits | 12,700 | 13,065 | ||||||
Asset retirement obligations | 81,944 | 80,647 | ||||||
Retirement benefits | 305,943 | 308,450 | ||||||
Other | 200,876 | 224,168 | ||||||
1,252,064 | 1,279,805 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||
$ | 4,166,655 | $ | 4,152,715 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to Ohio Edison Company are an integral part of | ||||||||
these balance sheets. |
OHIO EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months | ||||||||
Ended September 30 | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 165,235 | $ | 147,862 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 57,904 | 57,440 | ||||||
Amortization of regulatory assets | 154,054 | 144,569 | ||||||
Deferral of new regulatory assets | (66,390 | ) | (132,410 | ) | ||||
Amortization of lease costs | 28,535 | 28,567 | ||||||
Deferred income taxes and investment tax credits, net | 17,267 | (29,155 | ) | |||||
Accrued compensation and retirement benefits | (41,190 | ) | (34,572 | ) | ||||
Pension trust contribution | - | (20,261 | ) | |||||
Decrease (increase) in operating assets- | ||||||||
Receivables | (26,009 | ) | (70,098 | ) | ||||
Prepayments and other current assets | 2,065 | (3,542 | ) | |||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | (77,463 | ) | 89,550 | |||||
Accrued taxes | (27,776 | ) | (25,734 | ) | ||||
Accrued interest | (8,162 | ) | (7,277 | ) | ||||
Electric service prepayment programs | (31,895 | ) | (27,455 | ) | ||||
Other | (1,283 | ) | 9,868 | |||||
Net cash provided from operating activities | 144,892 | 127,352 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Short-term borrowings, net | 189,148 | - | ||||||
Redemptions and Repayments- | ||||||||
Common stock | - | (500,000 | ) | |||||
Long-term debt | (175,588 | ) | (1,190 | ) | ||||
Short-term borrowings, net | - | (64,475 | ) | |||||
Dividend Payments- | ||||||||
Common stock | (265,000 | ) | (150,000 | ) | ||||
Net cash used for financing activities | (251,440 | ) | (715,665 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (135,450 | ) | (109,461 | ) | ||||
Sales of investment securities held in trusts | 115,988 | 31,624 | ||||||
Purchases of investment securities held in trusts | (121,871 | ) | (36,194 | ) | ||||
Loan repayments from associated companies, net | 234,577 | 685,364 | ||||||
Cash investments | 5,143 | 17,316 | ||||||
Other | 8,144 | (321 | ) | |||||
Net cash provided from investing activities | 106,531 | 588,328 | ||||||
Net increase (decrease) in cash and cash equivalents | (17 | ) | 15 | |||||
Cash and cash equivalents at beginning of period | 732 | 712 | ||||||
Cash and cash equivalents at end of period | $ | 715 | $ | 727 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Ohio Edison Company are an | ||||||||
integral part of these statements. |
OHIO EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 11,648 | $ | 44,063 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 21,513 | 21,493 | ||||||
Amortization of regulatory assets, net | 20,211 | 23,127 | ||||||
Purchased power cost recovery reconciliation | 2,978 | - | ||||||
Amortization of lease costs | 32,934 | 32,934 | ||||||
Deferred income taxes and investment tax credits, net | (7,272 | ) | 6,866 | |||||
Accrued compensation and retirement benefits | (1,746 | ) | (19,482 | ) | ||||
Accrued regulatory obligations | 18,350 | - | ||||||
Electric service prepayment programs | (3,944 | ) | (10,028 | ) | ||||
Decrease (increase) in operating assets- | ||||||||
Receivables | 1,435 | (27,496 | ) | |||||
Prepayments and other current assets | (9,806 | ) | (7,451 | ) | ||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | 11,880 | (3,939 | ) | |||||
Accrued taxes | (26,222 | ) | 2,991 | |||||
Accrued interest | (1,956 | ) | (5,919 | ) | ||||
Other | 6,708 | (2,220 | ) | |||||
Net cash provided from operating activities | 76,711 | 54,939 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Short-term borrowings, net | 79,810 | - | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (100,393 | ) | (75 | ) | ||||
Dividend Payments- | ||||||||
Common stock | - | (15,000 | ) | |||||
Other | (69 | ) | (5 | ) | ||||
Net cash used for financing activities | (20,652 | ) | (15,080 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (37,523 | ) | (49,011 | ) | ||||
Sales of investment securities held in trusts | 9,417 | 62,344 | ||||||
Purchases of investment securities held in trusts | (10,422 | ) | (63,797 | ) | ||||
Loan repayments from associated companies, net | 146,098 | 6,534 | ||||||
Cash investments | (243 | ) | 147 | |||||
Other | 1,463 | 3,924 | ||||||
Net cash provided from (used for) investing activities | 108,790 | (39,859 | ) | |||||
Net change in cash and cash equivalents | 164,849 | - | ||||||
Cash and cash equivalents at beginning of period | 146,343 | 732 | ||||||
Cash and cash equivalents at end of period | $ | 311,192 | $ | 732 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Ohio Edison Company are an integral part | ||||||||
of these statements. |
Retail Generation KWH Sales | Increase (Decrease) | |||
Residential | ||||
Commercial | ||||
Industrial | ( | )% | ||
Retail Generation Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 17 | ||
Commercial | 12 | |||
Industrial | 21 | |||
Increase in Generation Revenues | $ | 50 |
Retail Generation Revenues | Increase (Decrease) | |||
(in millions) | ||||
Residential | $ | 8 | ||
Commercial | 12 | |||
Industrial | (2 | ) | ||
Net Increase in Generation Revenues | $ | 18 |
Distribution KWH Deliveries | Decrease | |||
Residential | ( | )% | ||
Commercial | ( | )% | ||
Industrial | ( | )% | ||
Decrease in Distribution Deliveries | ( | )% |
Distribution Revenues | Increase | |||
(In millions) | ||||
Residential | $ | - | ||
Commercial | 2 | |||
Industrial | 6 | |||
Increase in Distribution Revenues | $ | 8 |
Distribution Revenues | Decrease | |||
(In millions) | ||||
Residential | $ | (1 | ) | |
Commercial | (1 | ) | ||
Industrial | (2 | ) | ||
Decrease in Distribution Revenues | $ | (4 | ) |
Expenses - Changes | Increase (Decrease) | |||
(In millions) | ||||
Fuel costs | $ | (40 | ) | |
Purchased power costs | 15 | |||
Other operating costs | (49 | ) | ||
Provision for depreciation | (1 | ) | ||
Amortization of regulatory assets | 15 | |||
Deferral of new regulatory assets | 43 | |||
General taxes | (2 | ) | ||
Net Decrease in Expenses | $ | (19 | ) |
Expenses - Changes | Increase (Decrease) | |||
(in millions) | ||||
Purchased power costs | $ | 117 | ||
Amortization of regulatory assets | 218 | |||
Deferral of new regulatory assets | (66 | ) | ||
General taxes | (2 | ) | ||
Net Increase in Expenses | $ | 267 |
PricewaterhouseCoopers LLP Cleveland, Ohio |
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended Septmeber 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: | ||||||||||||||||
Electric sales | $ | 505,425 | $ | 510,577 | $ | 1,342,327 | $ | 1,366,396 | ||||||||
Excise tax collections | 18,652 | 18,514 | 53,447 | 53,009 | ||||||||||||
Total revenues | 524,077 | 529,091 | 1,395,774 | 1,419,405 | ||||||||||||
EXPENSES: | ||||||||||||||||
Fuel | - | 12,160 | - | 39,683 | ||||||||||||
Purchased power | 211,445 | 216,194 | 590,300 | 575,520 | ||||||||||||
Other operating costs | 66,342 | 85,114 | 194,119 | 243,140 | ||||||||||||
Provision for depreciation | 17,677 | 18,913 | 54,497 | 56,094 | ||||||||||||
Amortization of regulatory assets | 48,155 | 42,077 | 124,936 | 110,253 | ||||||||||||
Deferral of new regulatory assets | (16,176 | ) | (37,692 | ) | (71,443 | ) | (114,708 | ) | ||||||||
General taxes | 36,722 | 37,930 | 109,230 | 110,922 | ||||||||||||
Total expenses | 364,165 | 374,696 | 1,001,639 | 1,020,904 | ||||||||||||
OPERATING INCOME | 159,912 | 154,395 | 394,135 | 398,501 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Investment income | 8,390 | 13,805 | 25,972 | 47,816 | ||||||||||||
Miscellaneous income (expense) | (1,114 | ) | (760 | ) | (1,319 | ) | 3,197 | |||||||||
Interest expense | (31,024 | ) | (34,423 | ) | (94,479 | ) | (107,430 | ) | ||||||||
Capitalized interest | 200 | 309 | 584 | 655 | ||||||||||||
Total other expense | (23,548 | ) | (21,069 | ) | (69,242 | ) | (55,762 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 136,364 | 133,326 | 324,893 | 342,739 | ||||||||||||
INCOME TAXES | 42,977 | 54,610 | 107,082 | 131,525 | ||||||||||||
NET INCOME | 93,387 | 78,716 | 217,811 | 211,214 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Pension and other postretirement benefits | (213 | ) | 1,202 | (639 | ) | 3,607 | ||||||||||
Income tax expense (benefit) related to other comprehensive income | (130 | ) | 356 | (239 | ) | 1,068 | ||||||||||
Other comprehensive income (loss), net of tax | (83 | ) | 846 | (400 | ) | 2,539 | ||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 93,304 | $ | 79,562 | $ | 217,411 | $ | 213,753 | ||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Cleveland Electric Illuminating Company are an integral | ||||||||||||||||
part of these statements. |
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
STATEMENTS OF INCOME | ||||||||
REVENUES: | ||||||||
Electric sales | $ | 431,405 | $ | 418,708 | ||||
Excise tax collections | 18,320 | 18,600 | ||||||
Total revenues | 449,725 | 437,308 | ||||||
EXPENSES: | ||||||||
Purchased power from affiliates | 238,872 | 190,196 | ||||||
Purchased power from non-affiliates | 71,746 | 3,048 | ||||||
Other operating costs | 64,830 | 65,118 | ||||||
Provision for depreciation | 18,280 | 19,076 | ||||||
Amortization of regulatory assets | 256,737 | 38,256 | ||||||
Deferral of new regulatory assets | (94,816 | ) | (29,248 | ) | ||||
General taxes | 38,141 | 40,083 | ||||||
Total expenses | 593,790 | 326,529 | ||||||
OPERATING INCOME (LOSS) | (144,065 | ) | 110,779 | |||||
OTHER INCOME (EXPENSE): | ||||||||
Investment income | 8,420 | 9,188 | ||||||
Miscellaneous income | 1,994 | 1,118 | ||||||
Interest expense | (33,322 | ) | (32,520 | ) | ||||
Capitalized interest | 67 | 196 | ||||||
Total other expense | (22,841 | ) | (22,018 | ) | ||||
INCOME (LOSS) BEFORE INCOME TAXES | (166,906 | ) | 88,761 | |||||
INCOME TAX EXPENSE (BENEFIT) | (61,506 | ) | 30,326 | |||||
NET INCOME (LOSS) | (105,400 | ) | 58,435 | |||||
Less: Noncontrolling interest income | 458 | 584 | ||||||
EARNINGS (LOSS) AVAILABLE TO PARENT | $ | (105,858 | ) | $ | 57,851 | |||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
NET INCOME (LOSS) | $ | (105,400 | ) | $ | 58,435 | |||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
Pension and other postretirement benefits | 3,967 | (213 | ) | |||||
Income tax expense related to other comprehensive income | 1,370 | 281 | ||||||
Other comprehensive income (loss), net of tax | 2,597 | (494 | ) | |||||
COMPREHENSIVE INCOME (LOSS) | (102,803 | ) | 57,941 | |||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 458 | 584 | ||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARENT | $ | (103,261 | ) | $ | 57,357 | |||
The accompanying Notes to Consolidated Financial Statements as they relate to The Cleveland Electric Illuminating | ||||||||
Company are an integral part of these statements. |
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
September 30, | December 31, | March 31, | December 31, | |||||||||||||
2008 | 2007 | 2009 | 2008 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash and cash equivalents | $ | 237 | $ | 232 | $ | 233 | $ | 226 | ||||||||
Receivables- | ||||||||||||||||
Customers (less accumulated provisions of $6,907,000 and $7,540,000 | ||||||||||||||||
respectively, for uncollectible accounts) | 292,735 | 251,000 | ||||||||||||||
Customers (less accumulated provisions of $6,199,000 and | ||||||||||||||||
$5,916,000, respectively, for uncollectible accounts) | 283,967 | 276,400 | ||||||||||||||
Associated companies | 122,210 | 166,587 | 159,819 | 113,182 | ||||||||||||
Other | 4,151 | 12,184 | 4,438 | 13,834 | ||||||||||||
Notes receivable from associated companies | 21,682 | 52,306 | 22,744 | 19,060 | ||||||||||||
Prepayments and other | 2,373 | 2,327 | 2,002 | 2,787 | ||||||||||||
443,388 | 484,636 | 473,203 | 425,489 | |||||||||||||
UTILITY PLANT: | ||||||||||||||||
In service | 2,180,347 | 2,256,956 | 2,240,065 | 2,221,660 | ||||||||||||
Less - Accumulated provision for depreciation | 836,058 | 872,801 | 852,393 | 846,233 | ||||||||||||
1,344,289 | 1,384,155 | 1,387,672 | 1,375,427 | |||||||||||||
Construction work in progress | 44,392 | 41,163 | 40,545 | 40,651 | ||||||||||||
1,388,681 | 1,425,318 | 1,428,217 | 1,416,078 | |||||||||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||||||||||
Investment in lessor notes | 425,717 | 463,431 | 388,647 | 425,715 | ||||||||||||
Other | 10,260 | 10,285 | 10,239 | 10,249 | ||||||||||||
435,977 | 473,716 | 398,886 | 435,964 | |||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||||||||||
Goodwill | 1,688,521 | 1,688,521 | 1,688,521 | 1,688,521 | ||||||||||||
Regulatory assets | 796,475 | 870,695 | 617,967 | 783,964 | ||||||||||||
Pension assets | 68,548 | 62,471 | ||||||||||||||
Property taxes | 76,000 | 76,000 | 71,500 | 71,500 | ||||||||||||
Other | 9,036 | 32,987 | 10,629 | 10,818 | ||||||||||||
2,638,580 | 2,730,674 | 2,388,617 | 2,554,803 | |||||||||||||
$ | 4,906,626 | $ | 5,114,344 | $ | 4,688,923 | $ | 4,832,334 | |||||||||
LIABILITIES AND CAPITALIZATION | ||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Currently payable long-term debt | $ | 207,312 | $ | 207,266 | $ | 150,704 | $ | 150,688 | ||||||||
Short-term borrowings- | ||||||||||||||||
Associated companies | 367,422 | 531,943 | 242,065 | 227,949 | ||||||||||||
Accounts payable- | ||||||||||||||||
Associated companies | 124,335 | 169,187 | 94,824 | 106,074 | ||||||||||||
Other | 5,704 | 5,295 | 26,914 | 7,195 | ||||||||||||
Accrued taxes | 70,515 | 94,991 | 76,130 | 87,810 | ||||||||||||
Accrued interest | 37,885 | 13,895 | 41,546 | 13,932 | ||||||||||||
Other | 41,366 | 34,350 | 44,021 | 40,095 | ||||||||||||
854,539 | 1,056,927 | 676,204 | 633,743 | |||||||||||||
CAPITALIZATION: | ||||||||||||||||
Common stockholder's equity- | ||||||||||||||||
Common stockholder's equity | ||||||||||||||||
Common stock, without par value, authorized 105,000,000 shares - | ||||||||||||||||
67,930,743 shares outstanding | 878,199 | 873,536 | 878,680 | 878,785 | ||||||||||||
Accumulated other comprehensive loss | (69,529 | ) | (69,129 | ) | (132,260 | ) | (134,857 | ) | ||||||||
Retained earnings | 793,238 | 685,428 | 754,096 | 859,954 | ||||||||||||
Total common stockholder's equity | 1,601,908 | 1,489,835 | 1,500,516 | 1,603,882 | ||||||||||||
Noncontrolling interest | 20,173 | 22,555 | ||||||||||||||
Total equity | 1,520,689 | 1,626,437 | ||||||||||||||
Long-term debt and other long-term obligations | 1,447,718 | 1,459,939 | 1,573,241 | 1,591,586 | ||||||||||||
3,049,626 | 2,949,774 | 3,093,930 | 3,218,023 | |||||||||||||
NONCURRENT LIABILITIES: | ||||||||||||||||
Accumulated deferred income taxes | 727,615 | 725,523 | 644,547 | 704,270 | ||||||||||||
Accumulated deferred investment tax credits | 13,442 | 18,567 | 12,731 | 13,030 | ||||||||||||
Retirement benefits | 95,931 | 93,456 | 129,537 | 128,738 | ||||||||||||
Deferred revenues - electric service programs | 9,594 | 27,145 | ||||||||||||||
Lease assignment payable to associated companies | 40,827 | 131,773 | 40,827 | 40,827 | ||||||||||||
Other | 115,052 | 111,179 | 91,147 | 93,703 | ||||||||||||
1,002,461 | 1,107,643 | 918,789 | 980,568 | |||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||||||||||
$ | 4,688,923 | $ | 4,832,334 | |||||||||||||
$ | 4,906,626 | $ | 5,114,344 | |||||||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Cleveland Electric Illuminating | The accompanying Notes to Consolidated Financial Statements as they relate to The Cleveland Electric Illuminating | The accompanying Notes to Consolidated Financial Statements as they relate to The Cleveland Electric Illuminating | ||||||||||||||
Company are an integral part of these balance sheets. |
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | (105,400 | ) | $ | 58,435 | |||
Adjustments to reconcile net income (loss) to net cash from operating activities- | ||||||||
Provision for depreciation | 18,280 | 19,076 | ||||||
Amortization of regulatory assets | 256,737 | 38,256 | ||||||
Deferral of new regulatory assets | (94,816 | ) | (29,248 | ) | ||||
Deferred income taxes and investment tax credits, net | (61,525 | ) | (4,965 | ) | ||||
Accrued compensation and retirement benefits | 1,828 | (3,507 | ) | |||||
Accrued regulatory obligations | 12,057 | - | ||||||
Electric service prepayment programs | (2,695 | ) | (5,847 | ) | ||||
Decrease (increase) in operating assets- | ||||||||
Receivables | (44,808 | ) | 90,280 | |||||
Prepayments and other current assets | 785 | 604 | ||||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | 18,470 | 1,111 | ||||||
Accrued taxes | (16,274 | ) | 23,196 | |||||
Accrued interest | 27,614 | 23,831 | ||||||
Other | 346 | 2,308 | ||||||
Net cash provided from operating activities | 10,599 | 213,530 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (181 | ) | (165 | ) | ||||
Short-term borrowings, net | (4,086 | ) | (177,960 | ) | ||||
Dividend Payments- | ||||||||
Common stock | (10,000 | ) | (30,000 | ) | ||||
Other | (2,840 | ) | (2,955 | ) | ||||
Net cash used for financing activities | (17,107 | ) | (211,080 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (24,900 | ) | (37,203 | ) | ||||
Loans to associated companies, net | (3,683 | ) | (2,373 | ) | ||||
Redemptions of lessor notes | 37,068 | 37,709 | ||||||
Other | (1,970 | ) | (574 | ) | ||||
Net cash provided from (used for) investing activities | 6,515 | (2,441 | ) | |||||
Net increase in cash and cash equivalents | 7 | 9 | ||||||
Cash and cash equivalents at beginning of period | 226 | 232 | ||||||
Cash and cash equivalents at end of period | $ | 233 | $ | 241 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Cleveland Electric Illuminating | ||||||||
Company are an integral part of these statements. |
THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months | ||||||||
Ended September 30 | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 217,811 | $ | 211,214 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 54,497 | 56,094 | ||||||
Amortization of regulatory assets | 124,936 | 110,253 | ||||||
Deferral of new regulatory assets | (71,443 | ) | (114,708 | ) | ||||
Deferred rents and lease market valuation liability | - | (46,327 | ) | |||||
Deferred income taxes and investment tax credits, net | 4,623 | (40,964 | ) | |||||
Accrued compensation and retirement benefits | (3,291 | ) | 2,575 | |||||
Pension trust contribution | - | (24,800 | ) | |||||
Decrease (increase) in operating assets- | ||||||||
Receivables | 43,927 | 140,359 | ||||||
Prepayments and other current assets | (37 | ) | 661 | |||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | (44,443 | ) | (143,210 | ) | ||||
Accrued taxes | (19,613 | ) | 17,301 | |||||
Accrued interest | 23,990 | 22,360 | ||||||
Electric service prepayment programs | (17,551 | ) | (16,819 | ) | ||||
Other | 4,193 | 2,996 | ||||||
Net cash provided from operating activities | 317,599 | 176,985 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Long-term debt | - | 247,424 | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (508 | ) | (223,555 | ) | ||||
Short-term borrowings, net | (176,354 | ) | (59,328 | ) | ||||
Dividend Payments- | ||||||||
Common stock | (110,000 | ) | (304,000 | ) | ||||
Net cash used for financing activities | (286,862 | ) | (339,459 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (97,326 | ) | (100,583 | ) | ||||
Loan repayments from (loans to) associated companies, net | 30,624 | (13,863 | ) | |||||
Collection of principal on long-term notes receivable | - | 220,974 | ||||||
Redemption of lessor notes | 37,714 | 56,177 | ||||||
Other | (1,744 | ) | (218 | ) | ||||
Net cash provided from (used for) investing activities | (30,732 | ) | 162,487 | |||||
Net increase in cash and cash equivalents | 5 | 13 | ||||||
Cash and cash equivalents at beginning of period | 232 | 221 | ||||||
Cash and cash equivalents at end of period | $ | 237 | $ | 234 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Cleveland Electric Illuminating | ||||||||
Company are an integral part of these statements. |
Increase | ||||
Retail | (Decrease) | |||
Residential | ||||
Commercial | % | |||
Industrial | ( | )% | ||
Net |
Retail Generation Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 7 | ||
Commercial | 11 | |||
Industrial | 19 | |||
Increase in Retail Generation Revenues | $ | 37 |
Retail Generation Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 16 | ||
Commercial | 26 | |||
Industrial | 25 | |||
Increase in Retail Generation Revenues | $ | 67 |
Distribution KWH Deliveries | Decrease | |||
Residential | ( | )% | ||
Commercial | ( | )% | ||
Industrial | ( | )% | ||
Decrease in Distribution Deliveries | ( | )% |
Distribution Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 2 | ||
Commercial | 2 | |||
Industrial | 1 | |||
Increase in Distribution Revenues | $ | 5 |
Distribution Revenues | Decrease | |||
(In millions) | ||||
Residential | $ | (8 | ) | |
Commercial | (17 | ) | ||
Industrial | (8 | ) | ||
Decrease in Distribution Revenues | $ | (33 | ) |
Expenses – Changes | Increase (Decrease) | |||
(In millions) | ||||
Purchased power costs | $ | 11 | ||
Other operating costs | (76 | ) | ||
Provision for depreciation | (3 | ) | ||
Amortization of regulatory assets | 3 | |||
Deferral of new regulatory assets | 23 | |||
General taxes | 2 | |||
Net Decrease in Expenses | $ | (40 | ) |
Expenses – Changes | Increase (Decrease) | |||
(In millions) | ||||
Purchased power costs | $ | 64 | ||
Provision for depreciation | (1 | ) | ||
Amortization of regulatory assets, net | (6 | ) | ||
Net Increase in Expenses | $ | 57 |
PricewaterhouseCoopers LLP Cleveland, Ohio |
THE TOLEDO EDISON COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: | ||||||||||||||||
Electric sales | $ | 242,866 | $ | 261,736 | $ | 660,888 | $ | 728,429 | ||||||||
Excise tax collections | 8,239 | 7,926 | 23,417 | 22,026 | ||||||||||||
Total revenues | 251,105 | 269,662 | 684,305 | 750,455 | ||||||||||||
EXPENSES: | ||||||||||||||||
Purchased power | 111,809 | 112,502 | 315,957 | 304,947 | ||||||||||||
Other operating costs | 47,010 | 73,701 | 143,144 | 218,961 | ||||||||||||
Provision for depreciation | 7,682 | 9,231 | 24,648 | 27,475 | ||||||||||||
Amortization of regulatory assets | 31,452 | 30,460 | 81,837 | 79,284 | ||||||||||||
Deferral of new regulatory assets | (5,574 | ) | (15,645 | ) | (23,997 | ) | (47,373 | ) | ||||||||
General taxes | 13,609 | 11,912 | 40,591 | 38,646 | ||||||||||||
Total expenses | 205,988 | 222,161 | 582,180 | 621,940 | ||||||||||||
OPERATING INCOME | 45,117 | 47,501 | 102,125 | 128,515 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Investment income | 5,580 | 6,721 | 17,285 | 21,255 | ||||||||||||
Miscellaneous expense | (1,529 | ) | (2,153 | ) | (4,992 | ) | (7,309 | ) | ||||||||
Interest expense | (5,832 | ) | (8,786 | ) | (17,445 | ) | (25,205 | ) | ||||||||
Capitalized interest | 19 | 220 | 144 | 467 | ||||||||||||
Total other expense | (1,762 | ) | (3,998 | ) | (5,008 | ) | (10,792 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 43,355 | 43,503 | 97,117 | 117,723 | ||||||||||||
INCOME TAXES | 12,174 | 18,435 | 27,614 | 44,924 | ||||||||||||
NET INCOME | 31,181 | 25,068 | 69,503 | 72,799 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Pension and other postretirement benefits | (64 | ) | 574 | (191 | ) | 1,720 | ||||||||||
Change in unrealized gain on available-for-sale-securities | (247 | ) | 1,946 | (767 | ) | 1,656 | ||||||||||
Other comprehensive income (loss) | (311 | ) | 2,520 | (958 | ) | 3,376 | ||||||||||
Income tax expense (benefit) related to other | ||||||||||||||||
comprehensive income | (108 | ) | 902 | (294 | ) | 1,193 | ||||||||||
Other comprehensive income (loss), net of tax | (203 | ) | 1,618 | (664 | ) | 2,183 | ||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 30,978 | $ | 26,686 | $ | 68,839 | $ | 74,982 | ||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Toledo Edison Company are an integral | ||||||||||||||||
part of these statements. |
THE TOLEDO EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
STATEMENTS OF INCOME | ||||||||
REVENUES: | ||||||||
Electric sales | $ | 237,085 | $ | 203,669 | ||||
Excise tax collections | 7,729 | 8,025 | ||||||
Total revenues | 244,814 | 211,694 | ||||||
EXPENSES: | ||||||||
Purchased power from affiliates | 125,324 | 99,494 | ||||||
Purchased power from non-affiliates | 40,537 | 1,804 | ||||||
Other operating costs | 45,004 | 45,329 | ||||||
Provision for depreciation | 7,572 | 9,025 | ||||||
Amortization of regulatory assets, net | 9,897 | 15,531 | ||||||
General taxes | 14,250 | 14,377 | ||||||
Total expenses | 242,584 | 185,560 | ||||||
OPERATING INCOME | 2,230 | 26,134 | ||||||
OTHER INCOME (EXPENSE): | ||||||||
Investment income | 5,484 | 6,481 | ||||||
Miscellaneous expense | (1,340 | ) | (1,512 | ) | ||||
Interest expense | (5,533 | ) | (6,035 | ) | ||||
Capitalized interest | 42 | 37 | ||||||
Total other expense | (1,347 | ) | (1,029 | ) | ||||
INCOME BEFORE INCOME TAXES | 883 | 25,105 | ||||||
INCOME TAX EXPENSE (BENEFIT) | (109 | ) | 8,088 | |||||
NET INCOME | 992 | 17,017 | ||||||
Less: Noncontrolling interest income | 2 | 2 | ||||||
EARNINGS AVAILABLE TO PARENT | $ | 990 | $ | 17,015 | ||||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
NET INCOME | $ | 992 | $ | 17,017 | ||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
Pension and other postretirement benefits | 133 | (63 | ) | |||||
Change in unrealized gain on available-for-sale securities | (809 | ) | 1,961 | |||||
Other comprehensive income (loss) | (676 | ) | 1,898 | |||||
Income tax expense (benefit) related to other comprehensive income | (19 | ) | 728 | |||||
Other comprehensive income (loss), net of tax | (657 | ) | 1,170 | |||||
COMPREHENSIVE INCOME | 335 | 18,187 | ||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 2 | 2 | ||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO PARENT | $ | 333 | $ | 18,185 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Toledo Edison Company | ||||||||
are an integral part of these statements. |
THE TOLEDO EDISON COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 24 | $ | 22 | ||||
Receivables- | ||||||||
Customers | 931 | 449 | ||||||
Associated companies | 58,215 | 88,796 | ||||||
Other (less accumulated provisions of $165,000 and $615,000, | ||||||||
respectively, for uncollectible accounts) | 15,810 | 3,116 | ||||||
Notes receivable from associated companies | 111,519 | 154,380 | ||||||
Prepayments and other | 1,421 | 865 | ||||||
187,920 | 247,628 | |||||||
UTILITY PLANT: | ||||||||
In service | 860,417 | 931,263 | ||||||
Less - Accumulated provision for depreciation | 402,952 | 420,445 | ||||||
457,465 | 510,818 | |||||||
Construction work in progress | 7,626 | 19,740 | ||||||
465,091 | 530,558 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Investment in lessor notes | 142,657 | 154,646 | ||||||
Long-term notes receivable from associated companies | 37,308 | 37,530 | ||||||
Nuclear plant decommissioning trusts | 68,438 | 66,759 | ||||||
Other | 1,691 | 1,756 | ||||||
250,094 | 260,691 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Goodwill | 500,576 | 500,576 | ||||||
Regulatory assets | 145,404 | 203,719 | ||||||
Pension assets | 31,059 | 28,601 | ||||||
Property taxes | 21,010 | 21,010 | ||||||
Other | 52,325 | 20,496 | ||||||
750,374 | 774,402 | |||||||
$ | 1,653,479 | $ | 1,813,279 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 34 | $ | 34 | ||||
Accounts payable- | ||||||||
Associated companies | 88,769 | 245,215 | ||||||
Other | 3,368 | 4,449 | ||||||
Notes payable to associated companies | 95,203 | 13,396 | ||||||
Accrued taxes | 20,508 | 30,245 | ||||||
Lease market valuation liability | 36,900 | 36,900 | ||||||
Other | 26,415 | 22,747 | ||||||
271,197 | 352,986 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, $5 par value, authorized 60,000,000 shares - | ||||||||
29,402,054 shares outstanding | 147,010 | 147,010 | ||||||
Other paid-in capital | 175,643 | 173,169 | ||||||
Accumulated other comprehensive loss | (11,270 | ) | (10,606 | ) | ||||
Retained earnings | 185,121 | 175,618 | ||||||
Total common stockholder's equity | 496,504 | 485,191 | ||||||
Long-term debt and other long-term obligations | 303,382 | 303,397 | ||||||
799,886 | 788,588 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Accumulated deferred income taxes | 100,872 | 103,463 | ||||||
Accumulated deferred investment tax credits | 6,882 | 10,180 | ||||||
Lease market valuation liability | 282,325 | 310,000 | ||||||
Retirement benefits | 66,201 | 63,215 | ||||||
Asset retirement obligations | 29,715 | 28,366 | ||||||
Deferred revenues - electric service programs | 4,073 | 12,639 | ||||||
Lease assignment payable to associated companies | 30,529 | 83,485 | ||||||
Other | 61,799 | 60,357 | ||||||
582,396 | 671,705 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||
$ | 1,653,479 | $ | 1,813,279 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Toledo Edison Company | ||||||||
are an integral part of these balance sheets. |
THE TOLEDO EDISON COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
March 31, | December 31, | |||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 15 | $ | 14 | ||||
Receivables- | ||||||||
Customers | 438 | 751 | ||||||
Associated companies | 70,444 | 61,854 | ||||||
Other (less accumulated provisions of $193,000 and $203,000, | ||||||||
respectively, for uncollectible accounts) | 23,693 | 23,336 | ||||||
Notes receivable from associated companies | 133,186 | 111,579 | ||||||
Prepayments and other | 4,481 | 1,213 | ||||||
232,257 | 198,747 | |||||||
UTILITY PLANT: | ||||||||
In service | 880,315 | 870,911 | ||||||
Less - Accumulated provision for depreciation | 413,030 | 407,859 | ||||||
467,285 | 463,052 | |||||||
Construction work in progress | 10,957 | 9,007 | ||||||
478,242 | 472,059 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Investment in lessor notes | 124,329 | 142,687 | ||||||
Long-term notes receivable from associated companies | 37,154 | 37,233 | ||||||
Nuclear plant decommissioning trusts | 73,235 | 73,500 | ||||||
Other | 1,646 | 1,668 | ||||||
236,364 | 255,088 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Goodwill | 500,576 | 500,576 | ||||||
Regulatory assets | 96,351 | 109,364 | ||||||
Property taxes | 22,970 | 22,970 | ||||||
Other | 62,004 | 51,315 | ||||||
681,901 | 684,225 | |||||||
$ | 1,628,764 | $ | 1,610,119 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 222 | $ | 34 | ||||
Accounts payable- | ||||||||
Associated companies | 59,462 | 70,455 | ||||||
Other | 14,823 | 4,812 | ||||||
Notes payable to associated companies | 107,265 | 111,242 | ||||||
Accrued taxes | 23,259 | 24,433 | ||||||
Lease market valuation liability | 36,900 | 36,900 | ||||||
Other | 54,397 | 22,489 | ||||||
296,328 | 270,365 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, $5 par value, authorized 60,000,000 shares - | ||||||||
29,402,054 shares outstanding | 147,010 | 147,010 | ||||||
Other paid-in capital | 175,866 | 175,879 | ||||||
Accumulated other comprehensive loss | (34,029 | ) | (33,372 | ) | ||||
Retained earnings | 191,523 | 190,533 | ||||||
Total common stockholder's equity | 480,370 | 480,050 | ||||||
Noncontrolling interest | 2,676 | 2,675 | ||||||
Total equity | 483,046 | 482,725 | ||||||
Long-term debt and other long-term obligations | 303,021 | 299,626 | ||||||
786,067 | 782,351 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Accumulated deferred income taxes | 77,016 | 78,905 | ||||||
Accumulated deferred investment tax credits | 6,695 | 6,804 | ||||||
Lease market valuation liability | 263,875 | 273,100 | ||||||
Retirement benefits | 74,911 | 73,106 | ||||||
Asset retirement obligations | 30,719 | 30,213 | ||||||
Lease assignment payable to associated companies | 30,529 | 30,529 | ||||||
Other | 62,624 | 64,746 | ||||||
546,369 | 557,403 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||
$ | 1,628,764 | $ | 1,610,119 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Toledo Edison Company are an integral | ||||||||
part of these balance sheets. |
THE TOLEDO EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months | ||||||||
Ended September 30 | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 69,503 | $ | 72,799 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 24,648 | 27,475 | ||||||
Amortization of regulatory assets | 81,837 | 79,284 | ||||||
Deferral of new regulatory assets | (23,997 | ) | (47,373 | ) | ||||
Deferred rents and lease market valuation liability | (32,918 | ) | (23,551 | ) | ||||
Deferred income taxes and investment tax credits, net | (4,163 | ) | (32,530 | ) | ||||
Accrued compensation and retirement benefits | (196 | ) | 3,493 | |||||
Pension trust contribution | - | (7,659 | ) | |||||
Decrease (increase) in operating assets- | ||||||||
Receivables | 29,088 | (13,368 | ) | |||||
Prepayments and other current assets | (556 | ) | 224 | |||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | (157,527 | ) | 9,515 | |||||
Accrued taxes | (9,737 | ) | 13,588 | |||||
Accrued interest | 4,663 | 3,444 | ||||||
Electric service prepayment programs | (8,566 | ) | (7,650 | ) | ||||
Other | (577 | ) | 4,113 | |||||
Net cash provided from (used for) operating activities | (28,498 | ) | 81,804 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Short-term borrowings, net | 81,807 | 37,191 | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (26 | ) | (30,014 | ) | ||||
Dividend Payments- | ||||||||
Common stock | (60,000 | ) | (120,000 | ) | ||||
Net cash provided from (used for) financing activities | 21,781 | (112,823 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (44,695 | ) | (41,573 | ) | ||||
Loan repayments from associated companies, net | 42,948 | 21,438 | ||||||
Collection of principal on long-term notes receivable | 135 | 36,077 | ||||||
Redemption of lessor notes | 11,989 | 14,819 | ||||||
Sales of investment securities held in trusts | 28,774 | 39,260 | ||||||
Purchases of investment securities held in trusts | (31,297 | ) | (41,717 | ) | ||||
Other | (1,135 | ) | 2,713 | |||||
Net cash provided from investing activities | 6,719 | 31,017 | ||||||
Net increase (decrease) in cash and cash equivalents | 2 | (2 | ) | |||||
Cash and cash equivalents at beginning of period | 22 | 22 | ||||||
Cash and cash equivalents at end of period | $ | 24 | $ | 20 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Toledo Edison Company are | ||||||||
an integral part of these statements. |
THE TOLEDO EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 992 | $ | 17,017 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 7,572 | 9,025 | ||||||
Amortization of regulatory assets, net | 9,897 | 15,531 | ||||||
Purchased power cost recovery reconciliation | 2,912 | - | ||||||
Deferred rents and lease market valuation liability | 6,141 | 6,099 | ||||||
Deferred income taxes and investment tax credits, net | (2,151 | ) | (3,404 | ) | ||||
Accrued compensation and retirement benefits | 397 | (1,813 | ) | |||||
Accrued regulatory obligations | 4,450 | - | ||||||
Electric service prepayment programs | (1,240 | ) | (2,670 | ) | ||||
Decrease (increase) in operating assets- | ||||||||
Receivables | (8,395 | ) | 45,738 | |||||
Prepayments and other current assets | 492 | 181 | ||||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | 9,018 | (174,243 | ) | |||||
Accrued taxes | (4,904 | ) | 6,840 | |||||
Accrued interest | 4,613 | 4,663 | ||||||
Other | 1,465 | 989 | ||||||
Net cash provided from (used for) operating activities | 31,259 | (76,047 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Short-term borrowings, net | - | 52,821 | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (181 | ) | (9 | ) | ||||
Short-term borrowings, net | (3,977 | ) | - | |||||
Dividend Payments- | ||||||||
Common stock | (10,000 | ) | (15,000 | ) | ||||
Other | (39 | ) | - | |||||
Net cash provided from (used for) financing activities | (14,197 | ) | 37,812 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (12,233 | ) | (19,435 | ) | ||||
Loan repayments from (loans to) associated companies, net | (21,528 | ) | 46,789 | |||||
Redemption of lessor notes | 18,358 | 11,989 | ||||||
Sales of investment securities held in trusts | 44,270 | 3,908 | ||||||
Purchases of investment securities held in trusts | (44,856 | ) | (4,715 | ) | ||||
Other | (1,072 | ) | (110 | ) | ||||
Net cash provided from (used for) investing activities | (17,061 | ) | 38,426 | |||||
Net change in cash and cash equivalents | 1 | 191 | ||||||
Cash and cash equivalents at beginning of period | 14 | 22 | ||||||
Cash and cash equivalents at end of period | $ | 15 | $ | 213 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to The Toledo Edison Company are an | ||||||||
integral part of these statements. |
Retail Generation KWH Sales | Increase | |||
Residential | % | |||
Commercial | )% | |||
Industrial | % | |||
Net Decrease in Generation Sales | )% |
Retail Generation Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 99 | ||
Commercial | 42 | |||
Industrial | 6 | |||
Increase in Generation Revenues | $ | 147 |
Retail Generation Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 30 | ||
Commercial | 1 | |||
Industrial | - | |||
Increase in Generation Revenues | $ | 31 |
Increase | |||||
Distribution KWH Deliveries | |||||
Residential | - | % | |||
Commercial | (2.4 | )% | |||
Industrial | (11.4 | )% | |||
Decrease in Distribution Deliveries | (2.5 | )% |
Distribution Revenues | Increase (Decrease) | |||
(In millions) | ||||
Residential | $ | 1 | ||
Commercial | (4 | ) | ||
Industrial | - | |||
Net Decrease in Distribution Revenues | $ | (3 | ) |
Distribution Revenues | Increase (Decrease) | |||
(In millions) | ||||
Residential | $ | 2 | ||
Commercial | (2 | ) | ||
Industrial | (1 | ) | ||
Net Decrease in Distribution Revenues | $ | (1 | ) |
Expenses - Changes | Increase (Decrease) | |||
(In millions) | ||||
Purchased power costs | $ | 246 | ||
Other operating costs | (1 | ) | ||
Provision for depreciation | 6 | |||
Amortization of regulatory assets | (16 | ) | ||
General taxes | 1 | |||
Net increase in expenses | $ | 236 |
Expenses - Changes | Increase (Decrease) | ||||
(In millions) | |||||
Purchased power costs | $ | (15 | ) | ||
Other operating costs | 7 | ||||
Provision for depreciation | 2 | ||||
Amortization of regulatory assets | (5 | ) | |||
Net Decrease in Expenses | $ | (11 | ) |
PricewaterhouseCoopers LLP Cleveland, Ohio |
JERSEY CENTRAL POWER & LIGHT COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
REVENUES: | ||||||||
Electric sales | $ | 760,920 | $ | 781,433 | ||||
Excise tax collections | 12,731 | 12,795 | ||||||
Total revenues | 773,651 | 794,228 | ||||||
EXPENSES: | ||||||||
Purchased power | 481,241 | 496,681 | ||||||
Other operating costs | 85,870 | 78,784 | ||||||
Provision for depreciation | 25,103 | 23,282 | ||||||
Amortization of regulatory assets | 86,831 | 91,519 | ||||||
General taxes | 17,496 | 17,028 | ||||||
Total expenses | 696,541 | 707,294 | ||||||
OPERATING INCOME | 77,110 | 86,934 | ||||||
OTHER INCOME (EXPENSE): | ||||||||
Miscellaneous income (expense) | 805 | (389 | ) | |||||
Interest expense | (27,868 | ) | (24,464 | ) | ||||
Capitalized interest | 62 | 276 | ||||||
Total other expense | (27,001 | ) | (24,577 | ) | ||||
INCOME BEFORE INCOME TAXES | 50,109 | 62,357 | ||||||
INCOME TAXES | 22,551 | 28,403 | ||||||
NET INCOME | 27,558 | 33,954 | ||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
Pension and other postretirement benefits | 4,121 | (3,449 | ) | |||||
Unrealized gain on derivative hedges | 69 | 69 | ||||||
Other comprehensive income (loss) | 4,190 | (3,380 | ) | |||||
Income tax expense (benefit) related to other comprehensive income | 1,430 | (1,470 | ) | |||||
Other comprehensive income (loss), net of tax | 2,760 | (1,910 | ) | |||||
TOTAL COMPREHENSIVE INCOME | $ | 30,318 | $ | 32,044 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Jersey Central Power & Light Company | ||||||||
are an integral part of these statements. |
JERSEY CENTRAL POWER & LIGHT COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: | ||||||||||||||||
Electric sales | $ | 1,087,245 | $ | 1,018,049 | $ | 2,691,782 | $ | 2,457,146 | ||||||||
Excise tax collections | 15,358 | 15,168 | 39,792 | 39,849 | ||||||||||||
Total revenues | 1,102,603 | 1,033,217 | 2,731,574 | 2,496,995 | ||||||||||||
EXPENSES: | ||||||||||||||||
Purchased power | 720,996 | 654,418 | 1,751,854 | 1,505,420 | ||||||||||||
Other operating costs | 78,275 | 87,010 | 234,628 | 236,225 | ||||||||||||
Provision for depreciation | 23,205 | 22,032 | 70,030 | 63,867 | ||||||||||||
Amortization of regulatory assets | 102,954 | 107,837 | 280,980 | 296,955 | ||||||||||||
General taxes | 19,476 | 18,631 | 52,042 | 51,183 | ||||||||||||
Total expenses | 944,906 | 889,928 | 2,389,534 | 2,153,650 | ||||||||||||
OPERATING INCOME | 157,697 | 143,289 | 342,040 | 343,345 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Miscellaneous income (expense) | (565 | ) | 2,967 | 459 | 9,266 | |||||||||||
Interest expense | (25,747 | ) | (24,666 | ) | (75,051 | ) | (71,576 | ) | ||||||||
Capitalized interest | 257 | 483 | 963 | 1,559 | ||||||||||||
Total other expense | (26,055 | ) | (21,216 | ) | (73,629 | ) | (60,751 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 131,642 | 122,073 | 268,411 | 282,594 | ||||||||||||
INCOME TAXES | 55,752 | 46,275 | 115,623 | 118,637 | ||||||||||||
NET INCOME | 75,890 | 75,798 | 152,788 | 163,957 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Pension and other postretirement benefits | (3,449 | ) | (2,114 | ) | (10,347 | ) | (6,344 | ) | ||||||||
Unrealized gain on derivative hedges | 69 | 69 | 207 | 235 | ||||||||||||
Other comprehensive loss | (3,380 | ) | (2,045 | ) | (10,140 | ) | (6,109 | ) | ||||||||
Income tax benefit related to other comprehensive loss | (1,469 | ) | (994 | ) | (4,408 | ) | (2,973 | ) | ||||||||
Other comprehensive loss, net of tax | (1,911 | ) | (1,051 | ) | (5,732 | ) | (3,136 | ) | ||||||||
TOTAL COMPREHENSIVE INCOME | $ | 73,979 | $ | 74,747 | $ | 147,056 | $ | 160,821 | ||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to Jersey Central Power & Light Company are an | ||||||||||||||||
integral part of these statements. |
JERSEY CENTRAL POWER & LIGHT COMPANY | JERSEY CENTRAL POWER & LIGHT COMPANY | JERSEY CENTRAL POWER & LIGHT COMPANY | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
September 30, | December 31, | March 31, | December 31, | |||||||||||||
2008 | 2007 | 2009 | 2008 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash and cash equivalents | $ | 38 | $ | 94 | $ | 4 | $ | 66 | ||||||||
Receivables- | ||||||||||||||||
Customers (less accumulated provisions of $4,115,000 and $3,691,000, | ||||||||||||||||
Customers (less accumulated provisions of $3,415,000 and $3,230,000 | ||||||||||||||||
respectively, for uncollectible accounts) | 386,037 | 321,026 | 315,084 | 340,485 | ||||||||||||
Associated companies | 45 | 21,297 | 116 | 265 | ||||||||||||
Other | 51,020 | 59,244 | 35,941 | 37,534 | ||||||||||||
Notes receivable - associated companies | 17,874 | 18,428 | 91,362 | 16,254 | ||||||||||||
Prepaid taxes | 81,540 | 1,012 | 4,243 | 10,492 | ||||||||||||
Other | 2,059 | 17,603 | 21,006 | 18,066 | ||||||||||||
538,613 | 438,704 | 467,756 | 423,162 | |||||||||||||
UTILITY PLANT: | ||||||||||||||||
In service | 4,297,036 | 4,175,125 | 4,337,711 | 4,307,556 | ||||||||||||
Less - Accumulated provision for depreciation | 1,547,099 | 1,516,997 | 1,562,417 | 1,551,290 | ||||||||||||
2,749,937 | 2,658,128 | 2,775,294 | 2,756,266 | |||||||||||||
Construction work in progress | 65,095 | 90,508 | 69,806 | 77,317 | ||||||||||||
2,815,032 | 2,748,636 | 2,845,100 | 2,833,583 | |||||||||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||||||||||
Nuclear fuel disposal trust | 183,152 | 176,512 | 189,784 | 181,468 | ||||||||||||
Nuclear plant decommissioning trusts | 158,418 | 175,869 | 136,783 | 143,027 | ||||||||||||
Other | 2,176 | 2,083 | 2,154 | 2,145 | ||||||||||||
343,746 | 354,464 | 328,721 | 326,640 | |||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||||||||||
Goodwill | 1,810,936 | 1,810,936 | ||||||||||||||
Regulatory assets | 1,295,024 | 1,595,662 | 1,162,132 | 1,228,061 | ||||||||||||
Goodwill | 1,814,976 | 1,826,190 | ||||||||||||||
Pension Assets | 122,332 | 100,615 | ||||||||||||||
Other | 14,959 | 16,307 | 28,487 | 29,946 | ||||||||||||
3,247,291 | 3,538,774 | 3,001,555 | 3,068,943 | |||||||||||||
$ | 6,944,682 | $ | 7,080,578 | $ | 6,643,132 | $ | 6,652,328 | |||||||||
LIABILITIES AND CAPITALIZATION | ||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Currently payable long-term debt | $ | 28,713 | $ | 27,206 | $ | 29,465 | $ | 29,094 | ||||||||
Short-term borrowings- | ||||||||||||||||
Associated companies | 142,617 | 130,381 | - | 121,380 | ||||||||||||
Accounts payable- | ||||||||||||||||
Associated companies | 10,541 | 7,541 | 22,562 | 12,821 | ||||||||||||
Other | 226,947 | 193,848 | 158,972 | 198,742 | ||||||||||||
Accrued taxes | 53,998 | 20,561 | ||||||||||||||
Accrued interest | 26,594 | 9,318 | 30,446 | 9,197 | ||||||||||||
Cash collateral from suppliers | 23,510 | 583 | ||||||||||||||
Other | 123,273 | 105,827 | 129,745 | 133,091 | ||||||||||||
582,195 | 474,704 | 425,188 | 524,886 | |||||||||||||
CAPITALIZATION: | ||||||||||||||||
CAPITALIZATION | ||||||||||||||||
Common stockholder's equity- | ||||||||||||||||
Common stock, $10 par value, authorized 16,000,000 shares- | ||||||||||||||||
14,421,637 shares outstanding | 144,216 | 144,216 | ||||||||||||||
13,628,447 shares outstanding | 136,284 | 144,216 | ||||||||||||||
Other paid-in capital | 2,648,732 | 2,655,941 | 2,502,594 | 2,644,756 | ||||||||||||
Accumulated other comprehensive loss | (25,613 | ) | (19,881 | ) | (213,778 | ) | (216,538 | ) | ||||||||
Retained earnings | 204,376 | 237,588 | 121,134 | 156,576 | ||||||||||||
Total common stockholder's equity | 2,971,711 | 3,017,864 | 2,546,234 | 2,729,010 | ||||||||||||
Long-term debt and other long-term obligations | 1,540,208 | 1,560,310 | 1,824,851 | 1,531,840 | ||||||||||||
4,511,919 | 4,578,174 | 4,371,085 | 4,260,850 | |||||||||||||
NONCURRENT LIABILITIES: | ||||||||||||||||
Power purchase contract loss liability | 602,626 | 749,671 | ||||||||||||||
Power purchase contract liability | 530,538 | 531,686 | ||||||||||||||
Accumulated deferred income taxes | 791,220 | 800,214 | 664,388 | 689,065 | ||||||||||||
Nuclear fuel disposal costs | 195,688 | 192,402 | 196,260 | 196,235 | ||||||||||||
Asset retirement obligations | 93,798 | 89,669 | 96,839 | 95,216 | ||||||||||||
Retirement benefits | 185,265 | 190,182 | ||||||||||||||
Other | 167,236 | 195,744 | 173,569 | 164,208 | ||||||||||||
1,850,568 | 2,027,700 | 1,846,859 | 1,866,592 | |||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||||||||||
$ | 6,944,682 | $ | 7,080,578 | $ | 6,643,132 | $ | 6,652,328 | |||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to Jersey Central Power & Light Company | ||||||||||||||||
are an integral part of these balance sheets. | ||||||||||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to Jersey Central Power & Light Company are an integral | The accompanying Notes to Consolidated Financial Statements as they relate to Jersey Central Power & Light Company are an integral | |||||||||||||||
part of these balance sheets. |
JERSEY CENTRAL POWER & LIGHT COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months | ||||||||
Ended September 30 | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 152,788 | $ | 163,957 | ||||
Adjustments to reconcile net income to net cash from operating activities - | ||||||||
Provision for depreciation | 70,030 | 63,867 | ||||||
Amortization of regulatory assets | 280,980 | 296,955 | ||||||
Deferred purchased power and other costs | (132,820 | ) | (157,201 | ) | ||||
Deferred income taxes and investment tax credits, net | 1,051 | (23,786 | ) | |||||
Accrued compensation and retirement benefits | (32,087 | ) | (17,543 | ) | ||||
Cash collateral received from (returned to) suppliers | 23,138 | (32,243 | ) | |||||
Pension trust contribution | - | (17,800 | ) | |||||
Decrease (increase) in operating assets- | ||||||||
Receivables | (43,742 | ) | (149,024 | ) | ||||
Materials and supplies | 348 | 127 | ||||||
Prepaid taxes | (62,148 | ) | (28,337 | ) | ||||
Other current assets | (114 | ) | 2,079 | |||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | 36,099 | (6,598 | ) | |||||
Accrued taxes | 2,082 | 29,318 | ||||||
Accrued interest | 17,276 | 13,062 | ||||||
Tax collections payable | (12,493 | ) | (12,478 | ) | ||||
Other | 24,705 | 2,534 | ||||||
Net cash provided from operating activities | 325,093 | 126,889 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Long-term debt | - | 549,999 | ||||||
Short-term borrowings, net | 12,236 | - | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (19,138 | ) | (324,256 | ) | ||||
Short-term borrowings, net | - | (31,145 | ) | |||||
Common Stock | - | (125,000 | ) | |||||
Dividend Payments- | ||||||||
Common stock | (186,000 | ) | (43,000 | ) | ||||
Net cash provided from (used for) financing activities | (192,902 | ) | 26,598 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (136,265 | ) | (144,668 | ) | ||||
Proceeds from asset sales | 20,000 | - | ||||||
Loan repayments from associated companies, net | 553 | 1,722 | ||||||
Sales of investment securities held in trusts | 186,564 | 169,649 | ||||||
Purchases of investment securities held in trusts | (199,699 | ) | (181,794 | ) | ||||
Other | (3,400 | ) | 1,640 | |||||
Net cash used for investing activities | (132,247 | ) | (153,451 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (56 | ) | 36 | |||||
Cash and cash equivalents at beginning of period | 94 | 41 | ||||||
Cash and cash equivalents at end of period | $ | 38 | $ | 77 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Jersey Central Power & Light Company | ||||||||
are an integral part of these statements. |
JERSEY CENTRAL POWER & LIGHT COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 27,558 | $ | 33,954 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 25,103 | 23,282 | ||||||
Amortization of regulatory assets | 86,831 | 91,519 | ||||||
Deferred purchased power and other costs | (28,369 | ) | (23,893 | ) | ||||
Deferred income taxes and investment tax credits, net | (6,408 | ) | 723 | |||||
Accrued compensation and retirement benefits | (7,481 | ) | (15,113 | ) | ||||
Cash collateral returned to suppliers | (209 | ) | (502 | ) | ||||
Decrease (increase) in operating assets: | ||||||||
Receivables | 27,143 | 48,733 | ||||||
Materials and supplies | - | 255 | ||||||
Prepaid taxes | 6,249 | (290 | ) | |||||
Other current assets | (1,457 | ) | (1,305 | ) | ||||
Increase (decrease) in operating liabilities: | ||||||||
Accounts payable | (30,029 | ) | (14,511 | ) | ||||
Accrued taxes | 33,114 | 29,844 | ||||||
Accrued interest | 21,249 | 17,338 | ||||||
Other | 7,890 | (3,098 | ) | |||||
Net cash provided from operating activities | 161,184 | 186,936 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Long-term debt | 299,619 | - | ||||||
Redemptions and Repayments- | ||||||||
Common stock | (150,000 | ) | - | |||||
Long-term debt | (6,402 | ) | (5,872 | ) | ||||
Short-term borrowings, net | (121,380 | ) | (48,001 | ) | ||||
Dividend Payments- | ||||||||
Common stock | (63,000 | ) | (70,000 | ) | ||||
Other | (2,152 | ) | (68 | ) | ||||
Net cash used for financing activities | (43,315 | ) | (123,941 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (37,372 | ) | (56,047 | ) | ||||
Loan repayments from (loans to) associated companies, net | (75,108 | ) | 18 | |||||
Sales of investment securities held in trusts | 115,483 | 56,506 | ||||||
Purchases of investment securities held in trusts | (120,062 | ) | (61,290 | ) | ||||
Other | (872 | ) | (2,236 | ) | ||||
Net cash used for investing activities | (117,931 | ) | (63,049 | ) | ||||
Net change in cash and cash equivalents | (62 | ) | (54 | ) | ||||
Cash and cash equivalents at beginning of period | 66 | 94 | ||||||
Cash and cash equivalents at end of period | $ | 4 | $ | 40 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Jersey Central Power & Light Company | ||||||||
are an integral part of these statements. |
Increase | ||||
Retail Generation KWH Sales | (Decrease) | |||
Residential | ||||
Commercial | )% | |||
Industrial | ( | )% | ||
Net Decrease in Retail Generation Sales | ( | )% |
Increase | ||||
Retail Generation Revenues | (Decrease) | |||
(In millions) | ||||
Residential | $ | |||
Commercial | ) | |||
Industrial | ( | ) | ||
Net Decrease in Retail Generation Revenues | $ | ( | ) |
Increase | ||||
Distribution KWH Deliveries | (Decrease) | |||
Residential | ||||
Commercial | )% | |||
Industrial | ( | )% | ||
Net Decrease in Distribution Deliveries | ( | )% |
Distribution Revenues | Increase | |||
(In millions) | ||||
Residential | $ | |||
Commercial | ||||
Industrial | ||||
Increase in Distribution Revenues | $ |
Expenses – Changes | Increase (Decrease) | |||
(In millions) | ||||
Purchased power costs | $ | 96 | ||
Other operating costs | 35 | |||
Provision for depreciation | 2 | |||
Amortization of regulatory assets | (1 | ) | ||
Deferral of new regulatory assets | (18 | ) | ||
General taxes | 2 | |||
Net Increase in expenses | $ | 116 |
Expenses – Changes | Increase (Decrease) | |||
(In millions) | ||||
Purchased power costs | $ | 7 | ||
Other operating costs | (1 | ) | ||
Provision for depreciation | 1 | |||
Deferral of new regulatory assets | 30 | |||
Net Increase in Expenses | $ | 37 |
PricewaterhouseCoopers LLP Cleveland, Ohio |
METROPOLITAN EDISON COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: | ||||||||||||||||
Electric sales | $ | 434,742 | $ | 391,083 | $ | 1,188,171 | $ | 1,087,460 | ||||||||
Gross receipts tax collections | 20,793 | 19,524 | 59,669 | 55,146 | ||||||||||||
Total revenues | 455,535 | 410,607 | 1,247,840 | 1,142,606 | ||||||||||||
EXPENSES: | ||||||||||||||||
Purchased power | 245,699 | 209,842 | 680,424 | 584,249 | ||||||||||||
Other operating costs | 126,659 | 106,104 | 350,704 | 315,227 | ||||||||||||
Provision for depreciation | 11,394 | 11,154 | 33,446 | 31,969 | ||||||||||||
Amortization of regulatory assets | 34,642 | 36,853 | 101,383 | 101,965 | ||||||||||||
Deferral of new regulatory assets | (30,962 | ) | (19,151 | ) | (111,545 | ) | (93,772 | ) | ||||||||
General taxes | 23,030 | 21,986 | 64,887 | 63,208 | ||||||||||||
Total expenses | 410,462 | 366,788 | 1,119,299 | 1,002,846 | ||||||||||||
OPERATING INCOME | 45,073 | 43,819 | 128,541 | 139,760 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Interest income | 4,016 | 7,239 | 14,368 | 22,740 | ||||||||||||
Miscellaneous income | 88 | 1,366 | 568 | 3,973 | ||||||||||||
Interest expense | (11,014 | ) | (13,291 | ) | (33,666 | ) | (38,471 | ) | ||||||||
Capitalized interest | 93 | 292 | 73 | 940 | ||||||||||||
Total other expense | (6,817 | ) | (4,394 | ) | (18,657 | ) | (10,818 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 38,256 | 39,425 | 109,884 | 128,942 | ||||||||||||
INCOME TAXES | 16,270 | 14,737 | 45,866 | 53,145 | ||||||||||||
NET INCOME | 21,986 | 24,688 | 64,018 | 75,797 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Pension and other postretirement benefits | (2,233 | ) | (1,452 | ) | (6,699 | ) | (4,357 | ) | ||||||||
Unrealized gain on derivative hedges | 84 | 83 | 252 | 251 | ||||||||||||
Other comprehensive loss | (2,149 | ) | (1,369 | ) | (6,447 | ) | (4,106 | ) | ||||||||
Income tax benefit related to other comprehensive loss | (971 | ) | (693 | ) | (2,912 | ) | (2,078 | ) | ||||||||
Other comprehensive loss, net of tax | (1,178 | ) | (676 | ) | (3,535 | ) | (2,028 | ) | ||||||||
TOTAL COMPREHENSIVE INCOME | $ | 20,808 | $ | 24,012 | $ | 60,483 | $ | 73,769 | ||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to Metropolitan Edison Company are an integral | ||||||||||||||||
part of these statements. |
METROPOLITAN EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
REVENUES: | ||||||||
Electric sales | $ | 409,686 | $ | 379,608 | ||||
Gross receipts tax collections | 19,983 | 20,718 | ||||||
Total revenues | 429,669 | 400,326 | ||||||
EXPENSES: | ||||||||
Purchased power from affiliates | 100,077 | 83,442 | ||||||
Purchased power from non-affiliates | 123,911 | 133,540 | ||||||
Other operating costs | 106,357 | 107,017 | ||||||
Provision for depreciation | 12,139 | 11,112 | ||||||
Amortization of regulatory assets | 35,432 | 35,575 | ||||||
Deferral of new regulatory assets | (7,841 | ) | (37,772 | ) | ||||
General taxes | 21,935 | 21,781 | ||||||
Total expenses | 392,010 | 354,695 | ||||||
OPERATING INCOME | 37,659 | 45,631 | ||||||
OTHER INCOME (EXPENSE): | ||||||||
Interest income | 3,186 | 5,479 | ||||||
Miscellaneous income (expense) | 856 | (309 | ) | |||||
Interest expense | (13,359 | ) | (11,672 | ) | ||||
Capitalized interest | 15 | (219 | ) | |||||
Total other expense | (9,302 | ) | (6,721 | ) | ||||
INCOME BEFORE INCOME TAXES | 28,357 | 38,910 | ||||||
INCOME TAXES | 11,735 | 16,675 | ||||||
NET INCOME | 16,622 | 22,235 | ||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
Pension and other postretirement benefits | 4,553 | (2,233 | ) | |||||
Unrealized gain on derivative hedges | 84 | 84 | ||||||
Other comprehensive income (loss) | 4,637 | (2,149 | ) | |||||
Income tax expense (benefit) related to other comprehensive income | 1,793 | (970 | ) | |||||
Other comprehensive income (loss), net of tax | 2,844 | (1,179 | ) | |||||
TOTAL COMPREHENSIVE INCOME | $ | 19,466 | $ | 21,056 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Metropolitan Edison Company | ||||||||
are an integral part of these statements. |
METROPOLITAN EDISON COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 129 | $ | 135 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $3,905,000 and $4,327,000 | ||||||||
respectively, for uncollectible accounts) | 149,363 | 142,872 | ||||||
Associated companies | 22,060 | 27,693 | ||||||
Other | 21,130 | 18,909 | ||||||
Notes receivable from associated companies | 11,412 | 12,574 | ||||||
Prepaid taxes | 19,626 | 14,615 | ||||||
Other | 481 | 1,348 | ||||||
224,201 | 218,146 | |||||||
UTILITY PLANT: | ||||||||
In service | 2,044,493 | 1,972,388 | ||||||
Less - Accumulated provision for depreciation | 770,510 | 751,795 | ||||||
1,273,983 | 1,220,593 | |||||||
Construction work in progress | 32,801 | 30,594 | ||||||
1,306,784 | 1,251,187 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Nuclear plant decommissioning trusts | 256,366 | 286,831 | ||||||
Other | 982 | 1,360 | ||||||
257,348 | 288,191 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Goodwill | 418,568 | 424,313 | ||||||
Regulatory assets | 540,785 | 494,947 | ||||||
Pension assets | 59,740 | 51,427 | ||||||
Other | 30,714 | 36,411 | ||||||
1,049,807 | 1,007,098 | |||||||
$ | 2,838,140 | $ | 2,764,622 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 28,500 | $ | - | ||||
Short-term borrowings- | ||||||||
Associated companies | 65,286 | 185,327 | ||||||
Other | 250,000 | 100,000 | ||||||
Accounts payable- | ||||||||
Associated companies | 23,643 | 29,855 | ||||||
Other | 63,656 | 66,694 | ||||||
Accrued taxes | 2,483 | 16,020 | ||||||
Accrued interest | 7,273 | 6,778 | ||||||
Other | 30,858 | 27,393 | ||||||
471,699 | 432,067 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, without par value, authorized 900,000 shares- | ||||||||
859,500 shares outstanding | 1,198,206 | 1,203,186 | ||||||
Accumulated other comprehensive loss | (18,932 | ) | (15,397 | ) | ||||
Accumulated deficit | (75,139 | ) | (139,157 | ) | ||||
Total common stockholder's equity | 1,104,135 | 1,048,632 | ||||||
Long-term debt and other long-term obligations | 513,721 | 542,130 | ||||||
1,617,856 | 1,590,762 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Accumulated deferred income taxes | 455,898 | 438,890 | ||||||
Accumulated deferred investment tax credits | 7,922 | 8,390 | ||||||
Nuclear fuel disposal costs | 44,205 | 43,462 | ||||||
Asset retirement obligations | 168,367 | 160,726 | ||||||
Retirement benefits | 5,252 | 8,681 | ||||||
Other | 66,941 | 81,644 | ||||||
748,585 | 741,793 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||
$ | 2,838,140 | $ | 2,764,622 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to Metropolitan Edison Company are an | ||||||||
integral part of these balance sheets. |
METROPOLITAN EDISON COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
March 31, | December 31, | |||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 127 | $ | 144 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $3,867,000 and $3,616,000, | ||||||||
respectively, for uncollectible accounts) | 161,613 | 159,975 | ||||||
Associated companies | 27,349 | 17,034 | ||||||
Other | 17,521 | 19,828 | ||||||
Notes receivable from associated companies | 229,614 | 11,446 | ||||||
Prepaid taxes | 57,115 | 6,121 | ||||||
Other | 5,238 | 1,621 | ||||||
498,577 | 216,169 | |||||||
UTILITY PLANT: | ||||||||
In service | 2,093,792 | 2,065,847 | ||||||
Less - Accumulated provision for depreciation | 784,064 | 779,692 | ||||||
1,309,728 | 1,286,155 | |||||||
Construction work in progress | 19,087 | 32,305 | ||||||
1,328,815 | 1,318,460 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Nuclear plant decommissioning trusts | 217,476 | 226,139 | ||||||
Other | 975 | 976 | ||||||
218,451 | 227,115 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Goodwill | 416,499 | 416,499 | ||||||
Regulatory assets | 489,680 | 412,994 | ||||||
Power purchase contract asset | 248,762 | 300,141 | ||||||
Other | 37,231 | 31,031 | ||||||
1,192,172 | 1,160,665 | |||||||
$ | 3,238,015 | $ | 2,922,409 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 128,500 | $ | 28,500 | ||||
Short-term borrowings- | ||||||||
Associated companies | - | 15,003 | ||||||
Other | 250,000 | 250,000 | ||||||
Accounts payable- | ||||||||
Associated companies | 29,764 | 28,707 | ||||||
Other | 46,216 | 55,330 | ||||||
Accrued taxes | 8,489 | 16,238 | ||||||
Accrued interest | 11,557 | 6,755 | ||||||
Other | 29,506 | 30,647 | ||||||
504,032 | 431,180 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, without par value, authorized 900,000 shares- | ||||||||
859,500 shares outstanding | 1,196,090 | 1,196,172 | ||||||
Accumulated other comprehensive loss | (138,140 | ) | (140,984 | ) | ||||
Accumulated deficit | (34,502 | ) | (51,124 | ) | ||||
Total common stockholder's equity | 1,023,448 | 1,004,064 | ||||||
Long-term debt and other long-term obligations | 713,782 | 513,752 | ||||||
1,737,230 | 1,517,816 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Accumulated deferred income taxes | 390,448 | 387,757 | ||||||
Accumulated deferred investment tax credits | 7,653 | 7,767 | ||||||
Nuclear fuel disposal costs | 44,334 | 44,328 | ||||||
Asset retirement obligations | 171,561 | 170,999 | ||||||
Retirement benefits | 144,459 | 145,218 | ||||||
Power purchase contract liability | 172,520 | 150,324 | ||||||
Other | 65,778 | 67,020 | ||||||
996,753 | 973,413 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||
$ | 3,238,015 | $ | 2,922,409 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to Metropolitan Edison Company are an integral | ||||||||
part of these balance sheets. |
METROPOLITAN EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 16,622 | $ | 22,235 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 12,139 | 11,112 | ||||||
Amortization of regulatory assets | 35,432 | 35,575 | ||||||
Deferred costs recoverable as regulatory assets | (19,633 | ) | (10,628 | ) | ||||
Deferral of new regulatory assets | (7,841 | ) | (37,772 | ) | ||||
Deferred income taxes and investment tax credits, net | 4,657 | 17,307 | ||||||
Accrued compensation and retirement benefits | 1,029 | (9,655 | ) | |||||
Cash collateral to suppliers | (9,500 | ) | - | |||||
Increase in operating assets- | ||||||||
Receivables | (9,860 | ) | (30,863 | ) | ||||
Prepayments and other current assets | (50,422 | ) | (41,088 | ) | ||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | (8,058 | ) | (14,196 | ) | ||||
Accrued taxes | (7,749 | ) | (14,519 | ) | ||||
Accrued interest | 4,803 | 281 | ||||||
Other | 2,460 | 3,892 | ||||||
Net cash used for operating activities | (35,921 | ) | (68,319 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Long-term debt | 300,000 | - | ||||||
Short-term borrowings, net | - | 131,743 | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | - | (28,500 | ) | |||||
Short-term borrowings, net | (15,003 | ) | - | |||||
Other | (2,150 | ) | (15 | ) | ||||
Net cash provided from financing activities | 282,847 | 103,228 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (25,922 | ) | (31,296 | ) | ||||
Sales of investment securities held in trusts | 27,800 | 40,513 | ||||||
Purchases of investment securities held in trusts | (29,821 | ) | (43,391 | ) | ||||
Loans to associated companies, net | (218,168 | ) | (254 | ) | ||||
Other | (832 | ) | (484 | ) | ||||
Net cash used for investing activities | (246,943 | ) | (34,912 | ) | ||||
Net change in cash and cash equivalents | (17 | ) | (3 | ) | ||||
Cash and cash equivalents at beginning of period | 144 | 135 | ||||||
Cash and cash equivalents at end of period | $ | 127 | $ | 132 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Metropolitan Edison Company are | ||||||||
an integral part of these statements. |
METROPOLITAN EDISON COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months | ||||||||
Ended September 30 | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 64,018 | $ | 75,797 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 33,446 | 31,969 | ||||||
Amortization of regulatory assets | 101,383 | 101,965 | ||||||
Deferred costs recoverable as regulatory assets | (9,673 | ) | (53,276 | ) | ||||
Deferral of new regulatory assets | (111,545 | ) | (93,772 | ) | ||||
Deferred income taxes and investment tax credits, net | 39,919 | 20,514 | ||||||
Accrued compensation and retirement benefits | (18,948 | ) | (14,404 | ) | ||||
Cash collateral | - | 1,650 | ||||||
Pension trust contribution | - | (11,012 | ) | |||||
Decrease (increase) in operating assets- | ||||||||
Receivables | (19,751 | ) | (57,599 | ) | ||||
Prepayments and other current assets | (4,144 | ) | 7,227 | |||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | (9,250 | ) | (79,316 | ) | ||||
Accrued taxes | (13,285 | ) | 3,024 | |||||
Accrued interest | 495 | (153 | ) | |||||
Other | 13,510 | 11,386 | ||||||
Net cash provided from (used for) operating activities | 66,175 | (56,000 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Long-term debt | 28,500 | - | ||||||
Short-term borrowings, net | 29,959 | 193,324 | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (28,640 | ) | (50,000 | ) | ||||
Net cash provided from financing activities | 29,819 | 143,324 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (87,536 | ) | (74,812 | ) | ||||
Sales of investment securities held in trusts | 131,915 | 153,943 | ||||||
Purchases of investment securities held in trusts | (140,429 | ) | (162,573 | ) | ||||
Loans from (to) associated companies, net | 1,163 | (3,511 | ) | |||||
Other | (1,113 | ) | (375 | ) | ||||
Net cash used for investing activities | (96,000 | ) | (87,328 | ) | ||||
Net decrease in cash and cash equivalents | (6 | ) | (4 | ) | ||||
Cash and cash equivalents at beginning of period | 135 | 130 | ||||||
Cash and cash equivalents at end of period | $ | 129 | $ | 126 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Metropolitan Edison Company are an | ||||||||
integral part of these statements. |
Retail Generation KWH Sales | Increase (Decrease) | |||
Residential | % | |||
Commercial | ) % | |||
Industrial | ( | ) % | ||
Net | ) % |
Retail Generation Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 1 | ||
Commercial | 2 | |||
Industrial | - | |||
Increase in Retail Generation Revenues | $ | 3 |
Retail Generation Revenues | Decrease | |||
(In millions) | ||||
Residential | $ | - | ||
Commercial | (2 | ) | ||
Industrial | (6 | ) | ||
Decrease in Retail Generation Revenues | $ | (8 | ) |
Distribution KWH Deliveries | Increase (Decrease) | |||
Residential | % | |||
Commercial | ) % | |||
Industrial | ) % | |||
| ) % |
Distribution Revenues | Increase | |||
(In millions) | ||||
Residential | $ | 4 | ||
Commercial | 1 | |||
Industrial | - | |||
Increase in Distribution Revenues | $ | 5 |
Distribution Revenues | Increase (Decrease) | ||||
(In millions) | |||||
Residential | $ | 6 | |||
Commercial | 2 | ||||
Industrial | (1 | ) | |||
Net Increase in Distribution Revenues | $ | 7 |
Expenses - Changes | Increase | |||
(In millions) | ||||
Purchased power costs | $ | 69 | ||
Other operating costs | 6 | |||
Provision for depreciation | 4 | |||
Amortization of regulatory assets, net | 23 | |||
General taxes | 3 | |||
Increase in expenses | $ | 105 |
Expenses – Changes | Increase (Decrease) | |||
(In millions) | ||||
Purchased power costs | $ | 2 | ||
Other operating costs | 6 | |||
Provision for depreciation | 2 | |||
Deferral of new regulatory assets | (4 | ) | ||
General taxes | (1 | ) | ||
Net Increase in Expenses | $ | 5 |
PricewaterhouseCoopers LLP Cleveland, Ohio |
PENNSYLVANIA ELECTRIC COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: | ||||||||||||||||
Electric sales | $ | 372,576 | $ | 336,798 | $ | 1,083,986 | $ | 991,769 | ||||||||
Gross receipts tax collections | 17,200 | 16,637 | 52,704 | 48,989 | ||||||||||||
Total revenues | 389,776 | 353,435 | 1,136,690 | 1,040,758 | ||||||||||||
EXPENSES: | ||||||||||||||||
Purchased power | 230,656 | 203,247 | 657,681 | 588,583 | ||||||||||||
Other operating costs | 54,727 | 51,571 | 175,904 | 169,299 | ||||||||||||
Provision for depreciation | 14,097 | 12,566 | 40,531 | 36,678 | ||||||||||||
Amortization of regulatory assets, net | 23,415 | 20,861 | 55,346 | 32,648 | ||||||||||||
General taxes | 20,285 | 19,433 | 60,485 | 57,634 | ||||||||||||
Total expenses | 343,180 | 307,678 | 989,947 | 884,842 | ||||||||||||
OPERATING INCOME | 46,596 | 45,757 | 146,743 | 155,916 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Miscellaneous income (expense) | (93 | ) | 1,483 | 774 | 5,035 | |||||||||||
Interest expense | (14,934 | ) | (14,017 | ) | (45,157 | ) | (38,426 | ) | ||||||||
Capitalized interest | 57 | 194 | (679 | ) | 737 | |||||||||||
Total other expense | (14,970 | ) | (12,340 | ) | (45,062 | ) | (32,654 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 31,626 | 33,417 | 101,681 | 123,262 | ||||||||||||
INCOME TAXES | 9,058 | 10,387 | 39,324 | 49,025 | ||||||||||||
NET INCOME | 22,568 | 23,030 | 62,357 | 74,237 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
Pension and other postretirement benefits | (3,474 | ) | (2,825 | ) | (10,421 | ) | (8,475 | ) | ||||||||
Unrealized gain on derivative hedges | 16 | 16 | 48 | 49 | ||||||||||||
Change in unrealized gain on available-for-sale securities | 2 | 10 | (8 | ) | (6 | ) | ||||||||||
Other comprehensive loss | (3,456 | ) | (2,799 | ) | (10,381 | ) | (8,432 | ) | ||||||||
Income tax benefit related to other comprehensive loss | (1,510 | ) | (1,294 | ) | (4,536 | ) | (3,894 | ) | ||||||||
Other comprehensive loss, net of tax | (1,946 | ) | (1,505 | ) | (5,845 | ) | (4,538 | ) | ||||||||
TOTAL COMPREHENSIVE INCOME | $ | 20,622 | $ | 21,525 | $ | 56,512 | $ | 69,699 | ||||||||
The accompanying Notes to Consolidated Financial Statements as they relate to Pennsylvania Electric Company are an integral | ||||||||||||||||
part of these statements. |
PENNSYLVANIA ELECTRIC COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
REVENUES: | ||||||||
Electric sales | $ | 371,293 | $ | 376,028 | ||||
Gross receipts tax collections | 17,292 | 19,464 | ||||||
Total revenues | 388,585 | 395,492 | ||||||
EXPENSES: | ||||||||
Purchased power from affiliates | 96,081 | 83,464 | ||||||
Purchased power from non-affiliates | 127,166 | 137,770 | ||||||
Other operating costs | 77,289 | 71,077 | ||||||
Provision for depreciation | 14,455 | 12,516 | ||||||
Amortization of regulatory assets | 16,141 | 16,346 | ||||||
Deferral of new regulatory assets | (7,365 | ) | (3,526 | ) | ||||
General taxes | 20,593 | 21,855 | ||||||
Total expenses | 344,360 | 339,502 | ||||||
OPERATING INCOME | 44,225 | 55,990 | ||||||
OTHER INCOME (EXPENSE): | ||||||||
Miscellaneous income (expense) | 798 | (191 | ) | |||||
Interest expense | (13,233 | ) | (15,322 | ) | ||||
Capitalized interest | 22 | (806 | ) | |||||
Total other expense | (12,413 | ) | (16,319 | ) | ||||
INCOME BEFORE INCOME TAXES | 31,812 | 39,671 | ||||||
INCOME TAXES | 13,122 | 18,279 | ||||||
NET INCOME | 18,690 | 21,392 | ||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
Pension and other postretirement benefits | 2,955 | (3,473 | ) | |||||
Unrealized gain on derivative hedges | 16 | 16 | ||||||
Change in unrealized gain on available-for-sale securities | (22 | ) | 11 | |||||
Other comprehensive income (loss) | 2,949 | (3,446 | ) | |||||
Income tax expense (benefit) related to other comprehensive income | 1,055 | (1,506 | ) | |||||
Other comprehensive income (loss), net of tax | 1,894 | (1,940 | ) | |||||
TOTAL COMPREHENSIVE INCOME | $ | 20,584 | $ | 19,452 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Pennsylvania Electric Company | ||||||||
are an integral part of these statements. |
PENNSYLVANIA ELECTRIC COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
March 31, | December 31, | |||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 13 | $ | 23 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $3,285,000 and $3,121,000, | ||||||||
respectively, for uncollectible accounts) | 140,783 | 146,831 | ||||||
Associated companies | 80,387 | 65,610 | ||||||
Other | 19,493 | 26,766 | ||||||
Notes receivable from associated companies | 15,198 | 14,833 | ||||||
Prepaid taxes | 66,392 | 16,310 | ||||||
Other | 1,142 | 1,517 | ||||||
323,408 | 271,890 | |||||||
UTILITY PLANT: | ||||||||
In service | 2,345,475 | 2,324,879 | ||||||
Less - Accumulated provision for depreciation | 873,677 | 868,639 | ||||||
1,471,798 | 1,456,240 | |||||||
Construction work in progress | 25,042 | 25,146 | ||||||
1,496,840 | 1,481,386 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Nuclear plant decommissioning trusts | 113,265 | 115,292 | ||||||
Non-utility generation trusts | 117,899 | 116,687 | ||||||
Other | 289 | 293 | ||||||
231,453 | 232,272 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Goodwill | 768,628 | 768,628 | ||||||
Power purchase contract asset | 78,226 | 119,748 | ||||||
Other | 15,308 | 18,658 | ||||||
862,162 | 907,034 | |||||||
$ | 2,913,863 | $ | 2,892,582 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 145,000 | $ | 145,000 | ||||
Short-term borrowings- | ||||||||
Associated companies | 112,034 | 31,402 | ||||||
Other | 250,000 | 250,000 | ||||||
Accounts payable- | ||||||||
Associated companies | 49,981 | 63,692 | ||||||
Other | 42,004 | 48,633 | ||||||
Accrued taxes | 4,053 | 13,264 | ||||||
Accrued interest | 13,730 | 13,131 | ||||||
Other | 26,591 | 31,730 | ||||||
643,393 | 596,852 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, $20 par value, authorized 5,400,000 shares- | ||||||||
4,427,577 shares outstanding | 88,552 | 88,552 | ||||||
Other paid-in capital | 912,380 | 912,441 | ||||||
Accumulated other comprehensive loss | (126,103 | ) | (127,997 | ) | ||||
Retained earnings | 94,803 | 76,113 | ||||||
Total common stockholder's equity | 969,632 | 949,109 | ||||||
Long-term debt and other long-term obligations | 633,355 | 633,132 | ||||||
1,602,987 | 1,582,241 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Regulatory liabilities | 48,847 | 136,579 | ||||||
Accumulated deferred income taxes | 183,906 | 169,807 | ||||||
Retirement benefits | 172,544 | 172,718 | ||||||
Asset retirement obligations | 87,395 | 87,089 | ||||||
Power purchase contract liability | 112,462 | 83,600 | ||||||
Other | 62,329 | 63,696 | ||||||
667,483 | 713,489 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||
$ | 2,913,863 | $ | 2,892,582 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to Pennsylvania Electric Company | ||||||||
are an integral part of these balance sheets. |
PENNSYLVANIA ELECTRIC COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 18,690 | $ | 21,392 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 14,455 | 12,516 | ||||||
Amortization of regulatory assets | 16,141 | 16,346 | ||||||
Deferral of new regulatory assets | (7,365 | ) | (3,526 | ) | ||||
Deferred costs recoverable as regulatory assets | (20,022 | ) | (8,403 | ) | ||||
Deferred income taxes and investment tax credits, net | 11,833 | 10,541 | ||||||
Accrued compensation and retirement benefits | 431 | (10,488 | ) | |||||
Cash collateral | - | 301 | ||||||
Increase in operating assets- | ||||||||
Receivables | (1,709 | ) | (13,701 | ) | ||||
Prepayments and other current assets | (49,707 | ) | (40,591 | ) | ||||
Increase (Decrease) in operating liabilities- | ||||||||
Accounts payable | (5,340 | ) | (3,144 | ) | ||||
Accrued taxes | (9,065 | ) | (5,809 | ) | ||||
Accrued interest | 599 | 510 | ||||||
Other | (988 | ) | 4,991 | |||||
Net cash used for operating activities | (32,047 | ) | (19,065 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Short-term borrowings, net | 80,632 | 118,209 | ||||||
Redemptions and Repayments | ||||||||
Long-term debt | - | (45,112 | ) | |||||
Dividend Payments- | ||||||||
Common stock | (15,000 | ) | (20,000 | ) | ||||
Net cash provided from financing activities | 65,632 | 53,097 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (28,190 | ) | (28,902 | ) | ||||
Sales of investment securities held in trusts | 18,800 | 24,407 | ||||||
Purchases of investment securities held in trusts | (22,108 | ) | (29,083 | ) | ||||
Loan repayments to associated companies, net | (365 | ) | (610 | ) | ||||
Other | (1,732 | ) | 153 | |||||
Net cash used for investing activities | (33,595 | ) | (34,035 | ) | ||||
Net change in cash and cash equivalents | (10 | ) | (3 | ) | ||||
Cash and cash equivalents at beginning of period | 23 | 46 | ||||||
Cash and cash equivalents at end of period | $ | 13 | $ | 43 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Pennsylvania Electric Company are | ||||||||
an integral part of these statements. |
PENNSYLVANIA ELECTRIC COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 36 | $ | 46 | ||||
Receivables- | ||||||||
Customers (less accumulated provisions of $3,240,000 and $3,905,000 | ||||||||
respectively, for uncollectible accounts) | 130,427 | 137,455 | ||||||
Associated companies | 57,715 | 22,014 | ||||||
Other | 20,367 | 19,529 | ||||||
Notes receivable from associated companies | 15,406 | 16,313 | ||||||
Prepaid taxes | 31,313 | 1,796 | ||||||
Other | 494 | 1,281 | ||||||
255,758 | 198,434 | |||||||
UTILITY PLANT: | ||||||||
In service | 2,290,777 | 2,219,002 | ||||||
Less - Accumulated provision for depreciation | 858,150 | 838,621 | ||||||
1,432,627 | 1,380,381 | |||||||
Construction work in progress | 29,503 | 24,251 | ||||||
1,462,130 | 1,404,632 | |||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||
Nuclear plant decommissioning trusts | 128,594 | 137,859 | ||||||
Non-utility generation trusts | 115,938 | 112,670 | ||||||
Other | 299 | 531 | ||||||
244,831 | 251,060 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||
Goodwill | 771,085 | 777,904 | ||||||
Pension assets | 75,992 | 66,111 | ||||||
Other | 29,610 | 33,893 | ||||||
876,687 | 877,908 | |||||||
$ | 2,839,406 | $ | 2,732,034 | |||||
LIABILITIES AND CAPITALIZATION | ||||||||
CURRENT LIABILITIES: | ||||||||
Currently payable long-term debt | $ | 145,000 | $ | - | ||||
Short-term borrowings- | ||||||||
Associated companies | 30,483 | 214,893 | ||||||
Other | 250,000 | - | ||||||
Accounts payable- | ||||||||
Associated companies | 83,058 | 83,359 | ||||||
Other | 47,796 | 51,777 | ||||||
Accrued taxes | 3,923 | 15,111 | ||||||
Accrued interest | 14,034 | 13,167 | ||||||
Other | 30,297 | 25,311 | ||||||
604,591 | 403,618 | |||||||
CAPITALIZATION: | ||||||||
Common stockholder's equity- | ||||||||
Common stock, $20 par value, authorized 5,400,000 shares- | ||||||||
4,427,577 shares outstanding | 88,552 | 88,552 | ||||||
Other paid-in capital | 914,863 | 920,616 | ||||||
Accumulated other comprehensive income (loss) | (899 | ) | 4,946 | |||||
Retained earnings | 50,300 | 57,943 | ||||||
Total common stockholder's equity | 1,052,816 | 1,072,057 | ||||||
Long-term debt and other long-term obligations | 632,910 | 777,243 | ||||||
1,685,726 | 1,849,300 | |||||||
NONCURRENT LIABILITIES: | ||||||||
Regulatory liabilities | 104,927 | 73,559 | ||||||
Asset retirement obligations | 85,748 | 81,849 | ||||||
Accumulated deferred income taxes | 253,798 | 210,776 | ||||||
Retirement benefits | 40,864 | 41,298 | ||||||
Other | 63,752 | 71,634 | ||||||
549,089 | 479,116 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||
$ | 2,839,406 | $ | 2,732,034 | |||||
The accompanying Notes to Consolidated Financial Statements as they relate to Pennsylvania Electric Company are | ||||||||
an integral part of these statements. |
PENNSYLVANIA ELECTRIC COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months | ||||||||
Ended September 30 | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 62,357 | $ | 74,237 | ||||
Adjustments to reconcile net income to net cash from operating activities- | ||||||||
Provision for depreciation | 40,531 | 36,678 | ||||||
Amortization of regulatory assets, net | 55,346 | 32,648 | ||||||
Deferred costs recoverable as regulatory assets | (20,304 | ) | (54,228 | ) | ||||
Deferred income taxes and investment tax credits, net | 68,377 | 8,065 | ||||||
Accrued compensation and retirement benefits | (21,190 | ) | (16,032 | ) | ||||
Cash collateral | - | 50 | ||||||
Pension trust contribution | - | (13,436 | ) | |||||
Decrease (increase) in operating assets- | ||||||||
Receivables | (42,971 | ) | 13,809 | |||||
Prepayments and other current assets | (28,730 | ) | (4,757 | ) | ||||
Increase (decrease) in operating liabilities- | ||||||||
Accounts payable | (3,437 | ) | 14,299 | |||||
Accrued taxes | (11,521 | ) | (4,930 | ) | ||||
Accrued interest | 867 | 6,608 | ||||||
Other | 14,663 | 9,197 | ||||||
Net cash provided from operating activities | 113,988 | 102,208 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
New Financing- | ||||||||
Long-term debt | 45,000 | 297,149 | ||||||
Short-term borrowings, net | 65,590 | 53,082 | ||||||
Redemptions and Repayments- | ||||||||
Long-term debt | (45,332 | ) | - | |||||
Common stock | - | (200,000 | ) | |||||
Dividend Payments- | ||||||||
Common stock | (70,000 | ) | (125,000 | ) | ||||
Net cash provided from (used for) financing activities | (4,742 | ) | 25,231 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Property additions | (94,810 | ) | (70,076 | ) | ||||
Loan repayments from associated companies, net | 907 | 2,378 | ||||||
Sales of investment securities held in trust | 84,499 | 94,292 | ||||||
Purchases of investment securities held in trust | (96,950 | ) | (150,711 | ) | ||||
Other | (2,902 | ) | (3,328 | ) | ||||
Net cash used for investing activities | (109,256 | ) | (127,445 | ) | ||||
Net decrease in cash and cash equivalents | (10 | ) | (6 | ) | ||||
Cash and cash equivalents at beginning of period | 46 | 44 | ||||||
Cash and cash equivalents at end of period | $ | 36 | $ | 38 | ||||
The accompanying Notes to Consolidated Financial Statements as they relate to Pennsylvania Electric Company are | ||||||||
an integral part of these statements. |
· | restructuring the electric generation business and allowing the Utilities' customers to select a competitive electric generation supplier other than the Utilities; |
· | establishing or defining the PLR obligations to customers in the Utilities' service areas; |
· | providing the Utilities with the opportunity to recover |
· | itemizing (unbundling) the price of electricity into its component elements – including generation, transmission, distribution and stranded costs recovery charges; |
· | continuing regulation of the Utilities' transmission and distribution systems; and |
· | requiring corporate separation of regulated and unregulated business activities. |
September 30, | December 31, | Increase | ||||||||
Regulatory Assets* | 2008 | 2007 | (Decrease) | |||||||
(In millions) | ||||||||||
OE | $ | 621 | $ | 737 | $ | (116 | ) | |||
CEI | 796 | 871 | (75 | ) | ||||||
TE | 145 | 204 | (59 | ) | ||||||
JCP&L | 1,295 | 1,596 | (301 | ) | ||||||
Met-Ed | 541 | 495 | 46 | |||||||
ATSI | 35 | 42 | (7 | ) | ||||||
Total | $ | 3,433 | $ | 3,945 | $ | (512 | ) |
March 31, | December 31, | Increase | ||||||||
Regulatory Assets* | 2009 | 2008 | (Decrease) | |||||||
(In millions) | ||||||||||
OE | $ | 545 | $ | 575 | $ | (30 | ) | |||
CEI | 618 | 784 | (166 | ) | ||||||
TE | 96 | 109 | (13 | ) | ||||||
JCP&L | 1,162 | 1,228 | (66 | ) | ||||||
Met-Ed | 490 | 413 | 77 | |||||||
ATSI | 27 | 31 | (4 | ) | ||||||
Total | $ | 2,938 | $ | 3,140 | $ | (202 | ) |
* | Penelec had net regulatory liabilities of approximately and respectively. These net regulatory liabilities are included in Other Non-current Liabilities on the Consolidated Balance Sheets. |
· | power acquired by utilities to serve customers after rate caps expire will be procured through a competitive procurement process that must include a mix of long-term and short-term contracts and spot market purchases; |
· | the competitive procurement process must be approved by the PPUC and may include auctions, |
· | utilities must provide for the installation of smart meter technology within 15 years; |
· | a minimum reduction in peak demand of 4.5% by May 31, 2013; |
· | minimum reductions in energy consumption of 1% and 3% by May 31, 2011 and May 31, 2013, respectively; and |
· | an expanded definition of alternative energy to include additional types of hydroelectric and biomass facilities. |
· | maximize energy efficiency to achieve a 20% reduction in energy consumption by 2020; |
· | reduce peak demand for electricity by 5,700 MW by 2020; |
· | meet 30% of the state’s electricity needs with renewable energy by 2020; |
· | examine smart grid technology and develop additional cogeneration and other generation resources consistent with the state’s greenhouse gas targets; and |
· | invest in innovative clean energy technologies and businesses to stimulate the industry’s growth in New Jersey. |
FSP FAS 107-1 and APB 28-1 - “Interim Disclosures about Fair Value of Financial Instruments” |
Reconciliation of Basic and Diluted | Three Months Ended March 31 | ||||||
Earnings per Share of Common Stock | 2009 | 2008 | |||||
(In millions, except per share amounts) | |||||||
Earnings available to parent | $ | 119 | $ | 276 | |||
Average shares of common stock outstanding – Basic | 304 | 304 | |||||
Assumed exercise of dilutive stock options and awards | 2 | 3 | |||||
Average shares of common stock outstanding – Diluted | 306 | 307 | |||||
Basic earnings per share of common stock | $ | 0.39 | $ | 0.91 | |||
Diluted earnings per share of common stock | $ | 0.39 | $ | 0.90 |
Three Months | Nine Months | ||||||||||||
Ended September 30 | Ended September 30 | ||||||||||||
Reconciliation of Basic and Diluted Earnings per Share | 2008 | 2007 | 2008 | 2007 | |||||||||
(In millions, except per share amounts) | |||||||||||||
Net income | $ | 471 | $ | 413 | $ | 1,010 | $ | 1,041 | |||||
Average shares of common stock outstanding – Basic | 304 | 304 | 304 | 307 | |||||||||
Assumed exercise of dilutive stock options and awards | 3 | 3 | 3 | 4 | |||||||||
Average shares of common stock outstanding – Dilutive | 307 | 307 | 307 | 311 | |||||||||
Basic earnings per share | $ | 1.55 | $ | 1.36 | $ | 3.32 | $ | 3.39 | |||||
Diluted earnings per share | $ | 1.54 | $ | 1.34 | $ | 3.29 | $ | 3.35 |
Three Months Ended | FirstEnergy | FES | CEI | TE | JCP&L | Met-Ed | Penelec | |||||||||||||||
(In millions) | ||||||||||||||||||||||
Balance as of July 1, 2008 | $ | 5,606 | $ | 24 | $ | 1,689 | $ | 501 | $ | 1,826 | $ | 424 | $ | 778 | ||||||||
Adjustments related to GPU acquisition | (23 | ) | - | - | - | (11 | ) | (5 | ) | (7 | ) | |||||||||||
Balance as of September 30, 2008 | $ | 5,583 | $ | 24 | $ | 1,689 | $ | 501 | $ | 1,815 | $ | 419 | $ | 771 |
Nine Months Ended | FirstEnergy | FES | CEI | TE | JCP&L | Met-Ed | Penelec | |||||||||||||||
(In millions) | ||||||||||||||||||||||
Balance as of January 1, 2008 | $ | 5,607 | $ | 24 | $ | 1,689 | $ | 501 | $ | 1,826 | $ | 425 | $ | 778 | ||||||||
Adjustments related to GPU acquisition | (24 | ) | - | - | - | (11 | ) | (6 | ) | (7 | ) | |||||||||||
Balance as of September 30, 2008 | $ | 5,583 | $ | 24 | $ | 1,689 | $ | 501 | $ | 1,815 | $ | 419 | $ | 771 |
September 30, 2008 | |||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||
(In millions) | |||||||||||||
Assets: | |||||||||||||
Derivatives | $ | - | $ | 45 | $ | - | $ | 45 | |||||
Nuclear decommissioning trusts | 761 | 1,112 | - | 1,873 | |||||||||
Other investments | 19 | 312 | - | 331 | |||||||||
Total | $ | 780 | $ | 1,469 | $ | - | $ | 2,249 | |||||
Liabilities: | |||||||||||||
Derivatives | $ | 8 | $ | 19 | $ | - | $ | 27 | |||||
NUG contracts(1) | - | - | 603 | 603 | |||||||||
Total | $ | 8 | $ | 19 | $ | 603 | $ | 630 |
Recurring Fair Value Measures | |||||||||||||
as of March 31, 2009 | Level 1 | Level 2 | Level 3 | Total | |||||||||
(In millions) | |||||||||||||
Assets: | |||||||||||||
Derivatives | $ | - | $ | 43 | $ | - | $ | 43 | |||||
Available-for-sale securities(1) | 427 | 1,533 | - | 1,960 | |||||||||
NUG contracts(2) | - | - | 340 | 340 | |||||||||
Other investments | - | 80 | - | 80 | |||||||||
Total | $ | 427 | $ | 1,656 | $ | 340 | $ | 2,423 | |||||
Liabilities: | |||||||||||||
Derivatives | $ | 30 | $ | 27 | $ | - | $ | 57 | |||||
NUG contracts(2) | - | - | 816 | 816 | |||||||||
Total | $ | 30 | $ | 27 | $ | 816 | $ | 873 |
(1) | Primarily consists of investments in nuclear decommissioning trusts, the spent nuclear fuel trusts and the NUG trusts. Balance excludes $3 million of receivables, payables and accrued income. |
(2) | NUG contracts are completely offset by regulatory assets. |
Recurring Fair Value Measures | |||||||||||||
as of December 31, 2008 | Level 1 | Level 2 | Level 3 | Total | |||||||||
(In millions) | |||||||||||||
Assets: | |||||||||||||
Derivatives | $ | - | $ | 40 | $ | - | $ | 40 | |||||
Available-for-sale securities(1) | 537 | 1,464 | - | 2,001 | |||||||||
NUG contracts(2) | - | - | 434 | 434 | |||||||||
Other investments | - | 83 | - | 83 | |||||||||
Total | $ | 537 | $ | 1,587 | $ | 434 | $ | 2,558 | |||||
Liabilities: | |||||||||||||
Derivatives | $ | 25 | $ | 31 | $ | - | $ | 56 | |||||
NUG contracts(2) | - | - | 766 | 766 | |||||||||
Total | $ | 25 | $ | 31 | $ | 766 | $ | 822 |
(1) | Primarily consists of investments in nuclear decommissioning trusts, the spent nuclear fuel trusts and the NUG trusts. Balance excludes $5 million of receivables, payables and accrued income. |
Three Months | Nine Months | |||||||
(In millions) | ||||||||
Balance at beginning of period | $ | 644 | $ | 750 | ||||
Realized and unrealized gains (losses)(1) | (32 | ) | (120 | ) | ||||
Purchases, sales, issuances and settlements, net(1) | (9 | ) | (27 | ) | ||||
Net transfers to (from) Level 3 | - | - | ||||||
Balance as of September 30, 2008 | $ | 603 | $ | 603 | ||||
Change in unrealized gains (losses) relating to | ||||||||
instruments held as of September 30, 2008 | $ | (32 | ) | $ | (120 | ) |
99 |
Three Months Ended March 31 | |||||||
2009 | 2008 | ||||||
Balance as of January 1 | $ | (332 | ) | $ | (803 | ) | |
Settlements(1) | 83 | 64 | |||||
Unrealized gains (losses)(1) | (227 | ) | 320 | ||||
Net transfers to (from) Level 3 | - | - | |||||
Balance as of March 31, 2009 | $ | (476 | ) | $ | (419 | ) | |
Change in unrealized gains (losses) relating to | |||||||
instruments held as of March 31 | $ | (227 | ) | $ | 320 | ||
(1) Changes in the fair value of NUG contracts are completely offset by regulatory assets and do not impact earnings. |
Three Months Ended | ||||||||
March 31 | ||||||||
2009 | 2008 | |||||||
Effective Portion | (in millions) | |||||||
Loss Recognized in AOCL | $ | (2 | ) | $ | - | |||
Loss Reclassified from AOCL into Interest Expense | (5 | ) | (4 | ) | ||||
Ineffective Portion | ||||||||
Loss Recognized in Interest Expense | - | (1 | ) |
Derivative Assets | Derivative Liabilities | |||||||||||
Fair Value | Fair Value | |||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||
2009 | 2008 | 2009 | 2008 | |||||||||
Cash Flow Hedges | (in millions) | Cash Flow Hedges | (in millions) | |||||||||
Electricity Forwards | Electricity Forwards | |||||||||||
Current Assets | $ | 23 | $ | 11 | Current Liabilities | $ | 23 | $ | 27 | |||
Natural Gas Futures | Natural Gas Futures | |||||||||||
Current Assets | - | - | Current Liabilities | 11 | 4 | |||||||
Long-Term Deferred Charges | - | - | Noncurrent Liabilities | 5 | 5 | |||||||
Other | Other | |||||||||||
Current Assets | - | - | Current Liabilities | 10 | 12 | |||||||
Long-Term Deferred Charges | - | - | Noncurrent Liabilities | 3 | 4 | |||||||
$ | 23 | $ | 11 | $ | 52 | $ | 52 |
Derivative Assets | Derivative Liabilities | |||||||||||
Fair Value | Fair Value | |||||||||||
March 31, 2009 | December 31, 2008 | March 31, 2009 | December 31, 2008 | |||||||||
Economic Hedges | (in millions) | Economic Hedges | (in millions) | |||||||||
NUG Contracts | NUG Contracts | |||||||||||
Power Purchase | $ | 340 | $ | 434 | Power Purchase | $ | 816 | $ | 766 | |||
Contract Asset | Contract Liability | |||||||||||
Other | Other | |||||||||||
Current Assets | 1 | 1 | Current Liabilities | 1 | 1 | |||||||
Long-Term Deferred Charges | 19 | 28 | Noncurrent Liabilities | - | - | |||||||
$ | 360 | $ | 463 | $ | 817 | $ | 767 | |||||
Total Commodity Derivatives | $ | 383 | $ | 474 | Total Commodity Derivatives | $ | 869 | $ | 819 |
Purchases | Sales | Net | Units | |||||||||
(in thousands) | ||||||||||||
Electricity Forwards | 772 | (1,735 | ) | (963 | ) | MWh | ||||||
Heating Oil Futures | 20,496 | (2,520 | ) | 17,976 | Gallons | |||||||
Natural Gas Futures | 4,850 | - | 4,850 | mmBtu |
Derivatives in Cash Flow Hedging Relationships | Electricity | Natural Gas | Heating Oil | ||||||||||
Forwards | Futures | Futures | Total | ||||||||||
2009 | (in millions) | ||||||||||||
Gain (Loss) Recognized in AOCL (Effective Portion) | $ | (2 | ) | $ | (7 | ) | $ | (1 | ) | $ | (10 | ) | |
Effective Gain (Loss) Reclassified to:(1) | |||||||||||||
Purchased Power Expense | (18 | ) | - | - | (18 | ) | |||||||
Fuel Expense | - | - | (4 | ) | (4 | ) | |||||||
2008 | |||||||||||||
Gain (Loss) Recognized in AOCL (Effective Portion) | $ | (14 | ) | $ | 3 | $ | - | $ | (11 | ) | |||
Effective Gain (Loss) Reclassified to:(1) | |||||||||||||
Purchased Power Expense | (17 | ) | - | - | (17 | ) | |||||||
Fuel Expense | - | - | - | ||||||||||
(1) The ineffective portion was immaterial. |
Derivatives Not in Hedging Relationships | NUG | ||||||||||
Contracts | Other | Total | |||||||||
2009 | (in millions) | ||||||||||
Unrealized Gain (Loss) Recognized in: | |||||||||||
Regulatory Assets(1) | $ | (227 | ) | $ | - | $ | (227 | ) | |||
Realized Gain (Loss) Reclassified to: | |||||||||||
Fuel Expense(2) | $ | - | $ | (1 | ) | $ | (1 | ) | |||
Regulatory Assets(3) | (83 | ) | 10 | (73 | ) | ||||||
$ | (83 | ) | $ | 9 | $ | (74 | ) | ||||
2008 | |||||||||||
Unrealized Gain (Loss) Recognized in: | |||||||||||
Regulatory Assets(1) | $ | 320 | $ | - | $ | 320 | |||||
Realized Gain (Loss) Reclassified to: | |||||||||||
Regulatory Assets(3) | $ | (64 | ) | $ | 11 | $ | (53 | ) | |||
(1) | Changes in the fair value of NUG Contracts are deferred for future recovery from (or refund to) customers. | ||||||||||
(2) | The realized gain (loss) is reclassified upon termination of the derivative instrument | ||||||||||
(3) | The above market cost of NUG power is deferred for future recovery from (or refund to) customers. |
ARO Reconciliation | FirstEnergy | FES | OE | CEI | TE | JCP&L | Met-Ed | Penelec | |||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Balance, July 1, 2008 | $ | 1,307 | $ | 836 | $ | 96 | $ | 2 | $ | 29 | $ | 92 | $ | 166 | $ | 84 | |||||||||
Liabilities incurred | 5 | - | - | - | - | - | - | - | |||||||||||||||||
Liabilities settled | (1 | ) | (1 | ) | - | - | - | - | - | - | |||||||||||||||
Accretion | 21 | 14 | 1 | - | 1 | 2 | 2 | 2 | |||||||||||||||||
Revisions in estimated cash flows | (18 | ) | - | (18 | ) | - | - | - | - | - | |||||||||||||||
Balance, September 30, 2008 | $ | 1,314 | $ | 849 | $ | 79 | $ | 2 | $ | 30 | $ | 94 | $ | 168 | $ | 86 | |||||||||
Balance, July 1, 2007 | $ | 1,228 | $ | 784 | $ | 91 | $ | 2 | $ | 27 | $ | 87 | $ | 156 | $ | 79 | |||||||||
Liabilities incurred | - | - | - | - | - | - | - | - | |||||||||||||||||
Liabilities settled | - | - | - | - | - | - | - | - | |||||||||||||||||
Accretion | 19 | 13 | 1 | - | 1 | 1 | 2 | 2 | |||||||||||||||||
Revisions in estimated cash flows | - | - | - | - | - | - | - | - | |||||||||||||||||
Balance, September 30, 2007 | $ | 1,247 | $ | 797 | $ | 92 | $ | 2 | $ | 28 | $ | 88 | $ | 158 | $ | 81 |
ARO Reconciliation | FirstEnergy | FES | OE | CEI | TE | JCP&L | Met-Ed | Penelec | |||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Balance, January 1, 2008 | $ | 1,267 | $ | 810 | $ | 94 | $ | 2 | $ | 28 | $ | 90 | $ | 161 | $ | 82 | |||||||||
Liabilities incurred | 5 | - | - | - | - | - | - | - | |||||||||||||||||
Liabilities settled | (2 | ) | (1 | ) | (1 | ) | - | - | - | - | - | ||||||||||||||
Accretion | 62 | 40 | 4 | - | 2 | 4 | 7 | 4 | |||||||||||||||||
Revisions in estimated cash flows | (18 | ) | - | (18 | ) | - | - | - | - | - | |||||||||||||||
Balance, September 30, 2008 | $ | 1,314 | $ | 849 | $ | 79 | $ | 2 | $ | 30 | $ | 94 | $ | 168 | $ | 86 | |||||||||
Balance, January 1, 2007 | $ | 1,190 | $ | 760 | $ | 88 | $ | 2 | $ | 27 | $ | 84 | $ | 151 | $ | 77 | |||||||||
Liabilities incurred | - | - | - | - | - | - | - | - | |||||||||||||||||
Liabilities settled | (2 | ) | (1 | ) | - | - | - | - | - | - | |||||||||||||||
Accretion | 59 | 38 | 4 | - | 1 | 4 | 7 | 4 | |||||||||||||||||
Revisions in estimated cash flows | - | - | - | - | - | - | - | - | |||||||||||||||||
Balance, September 30, 2007 | $ | 1,247 | $ | 797 | $ | 92 | $ | 2 | $ | 28 | $ | 88 | $ | 158 | $ | 81 |
Three Months | Nine Months | ||||||||||||
Ended September 30 | Ended September 30 | ||||||||||||
Pension Benefits | 2008 | 2007 | 2008 | 2007 | |||||||||
(In millions) | |||||||||||||
Service cost | $ | 21 | $ | 21 | $ | 62 | $ | 63 | |||||
Interest cost | 72 | 71 | 217 | 213 | |||||||||
Expected return on plan assets | (116 | ) | (112 | ) | (347 | ) | (337 | ) | |||||
Amortization of prior service cost | 3 | 2 | 7 | 7 | |||||||||
Recognized net actuarial loss | 1 | 10 | 4 | 31 | |||||||||
Net periodic cost (credit) | $ | (19 | ) | $ | (8 | ) | $ | (57 | ) | $ | (23 | ) |
Three Months | Nine Months | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||
Ended September 30 | Ended September 30 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||
Other Postretirement Benefits | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||
Service cost | $ | 5 | $ | 5 | $ | 14 | $ | 16 | $ | 22 | $ | 22 | $ | 5 | $ | 5 | ||||||||||
Interest cost | 18 | 17 | 55 | 52 | 80 | 75 | 20 | 18 | ||||||||||||||||||
Expected return on plan assets | (13 | ) | (12 | ) | (38 | ) | (38 | ) | (81 | ) | (116 | ) | (9 | ) | (13 | ) | ||||||||||
Amortization of prior service cost | (37 | ) | (37 | ) | (111 | ) | (112 | ) | 3 | 3 | (38 | ) | (37 | ) | ||||||||||||
Recognized net actuarial loss | 12 | 11 | 35 | 34 | 42 | 2 | 16 | 12 | ||||||||||||||||||
Net periodic cost (credit) | $ | (15 | ) | $ | (16 | ) | $ | (45 | ) | $ | (48 | ) | $ | 66 | $ | (14 | ) | $ | (6 | ) | $ | (15 | ) |
Pension Benefit Cost (Credit) | Other Postretirement Benefit Cost (Credit) | ||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||
(In millions) | |||||||||||||
FES | $ | 18 | $ | 5 | $ | (1 | ) | $ | (2 | ) | |||
OE | 7 | (6 | ) | (2 | ) | (2 | ) | ||||||
CEI | 5 | (1 | ) | 1 | 1 | ||||||||
TE | 2 | (1 | ) | 1 | 1 | ||||||||
JCP&L | 9 | (3 | ) | (1 | ) | (4 | ) | ||||||
Met-Ed | 6 | (2 | ) | (1 | ) | (3 | ) | ||||||
Penelec | 4 | (3 | ) | - | (3 | ) | |||||||
Other FirstEnergy subsidiaries | 15 | (3 | ) | (3 | ) | (3 | ) | ||||||
$ | 66 | $ | (14 | ) | $ | (6 | ) | $ | (15 | ) |
Three Months | Nine Months | ||||||||||||
Ended September 30 | Ended September 30 | ||||||||||||
Pension Benefit Cost (Credit) | 2008 | 2007 | 2008 | 2007 | |||||||||
(In millions) | |||||||||||||
FES | $ | 4 | $ | 5 | $ | 11 | $ | 16 | |||||
OE | (6 | ) | (4 | ) | (20 | ) | (12 | ) | |||||
CEI | (1 | ) | - | (3 | ) | 1 | |||||||
TE | (1 | ) | - | (2 | ) | - | |||||||
JCP&L | (4 | ) | (2 | ) | (11 | ) | (7 | ) | |||||
Met-Ed | (3 | ) | (2 | ) | (8 | ) | (5 | ) | |||||
Penelec | (3 | ) | (2 | ) | (10 | ) | (8 | ) | |||||
Other FirstEnergy subsidiaries | (5 | ) | (3 | ) | (14 | ) | (8 | ) | |||||
$ | (19 | ) | $ | (8 | ) | $ | (57 | ) | $ | (23 | ) |
Three Months | Nine Months | ||||||||||||
Ended September 30 | Ended September 30 | ||||||||||||
Other Postretirement Benefit Cost (Credit) | 2008 | 2007 | 2008 | 2007 | |||||||||
(In millions) | |||||||||||||
FES | $ | (2 | ) | $ | (2 | ) | $ | (5 | ) | $ | (7 | ) | |
OE | (2 | ) | (3 | ) | (5 | ) | (8 | ) | |||||
CEI | 1 | 1 | 2 | 3 | |||||||||
TE | 1 | 1 | 3 | 4 | |||||||||
JCP&L | (4 | ) | (4 | ) | (12 | ) | (12 | ) | |||||
Met-Ed | (3 | ) | (3 | ) | (8 | ) | (8 | ) | |||||
Penelec | (3 | ) | (3 | ) | (10 | ) | (10 | ) | |||||
Other FirstEnergy subsidiaries | (3 | ) | (3 | ) | (10 | ) | (10 | ) | |||||
$ | (15 | ) | $ | (16 | ) | $ | (45 | ) | $ | (48 | ) |
Maximum Exposure | Discounted Lease Payments, net | Net Exposure | |||||||
(in millions) | |||||||||
FES | $ | 1,363 | $ | 1,209 | $ | 154 | |||
OE | 788 | 597 | 191 | ||||||
CEI | 718 | 79 | 639 | ||||||
TE | 718 | 421 | 297 |
Maximum Exposure | Discounted Lease Payments, net(1) | Net Exposure | |||||||
(In millions) | |||||||||
FES | $ | 1,373 | $ | 1,202 | $ | 171 | |||
OE | 759 | 587 | 172 | ||||||
CEI | 740 | 73 | 667 | ||||||
TE | 740 | 419 | 321 |
(1) The net present value of FirstEnergy’s consolidated sale and leaseback operating lease commitments is $1.7 billion |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||
September 30 | September 30 | March 31, | ||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2009 | 2008 | |||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||
JCP&L | $ | 26 | $ | 30 | $ | 67 | $ | 71 | $ | 19 | $ | 19 | ||||||||
Met-Ed | 12 | 13 | 44 | 40 | 15 | 16 | ||||||||||||||
Penelec | 8 | 7 | 25 | 22 | 9 | 8 | ||||||||||||||
Total | $ | 46 | $ | 50 | $ | 136 | $ | 133 | ||||||||||||
$ | 43 | $ | 43 |
(B) | ENVIRONMENTAL MATTERS |
· | power acquired by utilities to serve customers after rate caps expire will be procured through a competitive procurement process that must include a mix of long-term and short-term contracts and spot market purchases; |
· | the competitive procurement process must be approved by the PPUC and may include auctions, |
· | utilities must provide for the installation of smart meter technology within 15 years; |
· | a minimum reduction in peak demand of 4.5% by May 31, 2013; |
· | minimum reductions in energy consumption of 1% and 3% by May 31, 2011 and May 31, 2013, respectively; and |
· | an expanded definition of alternative energy to include additional types of hydroelectric and biomass facilities. |
· | maximize energy efficiency to achieve a 20% reduction in energy consumption by 2020; |
· | reduce peak demand for electricity by 5,700 MW by 2020; |
· | meet 30% of the state’s electricity needs with renewable energy by 2020; |
· | examine smart grid technology and develop additional cogeneration and other generation resources consistent with the state’s greenhouse gas targets; and |
· | invest in innovative clean energy technologies and businesses to stimulate the industry’s growth in New Jersey. |
FSP FAS 115-2 and FAS 124-2 - “Recognition and Presentation of Other-Than-Temporary Impairments” |
FSP FAS 107-1 and APB 28-1 - “Interim Disclosures about Fair Value of Financial Instruments” |
Segment Financial Information | ||||||||||||||||||||||||
Ohio | ||||||||||||||||||||||||
Energy | Competitive | Transitional | ||||||||||||||||||||||
Delivery | Energy | Generation | Reconciling | |||||||||||||||||||||
Three Months Ended | Services | Services | Services | Other | Adjustments | Consolidated | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
March 31, 2009 | ||||||||||||||||||||||||
External revenues | $ | 2,109 | $ | 335 | $ | 912 | $ | 7 | $ | (29 | ) | $ | 3,334 | |||||||||||
Internal revenues | - | 893 | - | - | (893 | ) | - | |||||||||||||||||
Total revenues | 2,109 | 1,228 | 912 | 7 | (922 | ) | 3,334 | |||||||||||||||||
Depreciation and amortization | 472 | 64 | (45 | ) | 1 | 3 | 495 | |||||||||||||||||
Investment income (loss), net | 29 | (29 | ) | 1 | - | (12 | ) | (11 | ) | |||||||||||||||
Net interest charges | 110 | 18 | - | 1 | 37 | 166 | ||||||||||||||||||
Income taxes | (28 | ) | 103 | 16 | (17 | ) | (20 | ) | 54 | |||||||||||||||
Net income (loss) | (42 | ) | 155 | 24 | 17 | (39 | ) | 115 | ||||||||||||||||
Total assets | 22,669 | 9,925 | 336 | 632 | (5 | ) | 33,557 | |||||||||||||||||
Total goodwill | 5,550 | 24 | - | - | - | 5,574 | ||||||||||||||||||
Property additions | 165 | 421 | - | 49 | 19 | 654 | ||||||||||||||||||
March 31, 2008 | ||||||||||||||||||||||||
External revenues | $ | 2,212 | $ | 329 | $ | 707 | $ | 40 | $ | (11 | ) | $ | 3,277 | |||||||||||
Internal revenues | - | 776 | - | - | (776 | ) | - | |||||||||||||||||
Total revenues | 2,212 | 1,105 | 707 | 40 | (787 | ) | 3,277 | |||||||||||||||||
Depreciation and amortization | 255 | 53 | 4 | - | 5 | 317 | ||||||||||||||||||
Investment income (loss), net | 45 | (6 | ) | 1 | - | (23 | ) | 17 | ||||||||||||||||
Net interest charges | 103 | 27 | - | - | 41 | 171 | ||||||||||||||||||
Income taxes | 119 | 58 | 15 | 14 | (19 | ) | 187 | |||||||||||||||||
Net income | 179 | 87 | 23 | 22 | (34 | ) | 277 | |||||||||||||||||
Total assets | 23,211 | 8,108 | 257 | 281 | 558 | 32,415 | ||||||||||||||||||
Total goodwill | 5,582 | 24 | - | - | - | 5,606 | ||||||||||||||||||
Property additions | 255 | 462 | - | 12 | (18 | ) | 711 |
Segment Financial Information | ||||||||||||||||||||||||
Ohio | ||||||||||||||||||||||||
Energy | Competitive | Transitional | ||||||||||||||||||||||
Delivery | Energy | Generation | Reconciling | |||||||||||||||||||||
Three Months Ended | Services | Services | Services | Other | Adjustments | Consolidated | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
September 30, 2008 | ||||||||||||||||||||||||
External revenues | $ | 2,657 | $ | 460 | $ | 813 | $ | 5 | $ | (31 | ) | $ | 3,904 | |||||||||||
Internal revenues | - | 786 | - | - | (786 | ) | - | |||||||||||||||||
Total revenues | 2,657 | 1,246 | 813 | 5 | (817 | ) | 3,904 | |||||||||||||||||
Depreciation and amortization | 286 | 67 | 46 | 1 | 1 | 401 | ||||||||||||||||||
Investment income | 48 | 13 | 1 | - | (22 | ) | 40 | |||||||||||||||||
Net interest charges | 101 | 31 | 1 | - | 44 | 177 | ||||||||||||||||||
Income taxes | 188 | 109 | 14 | (46 | ) | (27 | ) | 238 | ||||||||||||||||
Net income | 283 | 164 | 19 | 48 | (43 | ) | 471 | |||||||||||||||||
Total assets | 23,088 | 9,360 | 270 | 457 | 387 | 33,562 | ||||||||||||||||||
Total goodwill | 5,559 | 24 | - | - | - | 5,583 | ||||||||||||||||||
Property additions | 170 | 285 | - | 85 | 20 | 560 | ||||||||||||||||||
September 30, 2007 | ||||||||||||||||||||||||
External revenues | $ | 2,520 | $ | 370 | $ | 723 | $ | 9 | $ | 19 | $ | 3,641 | ||||||||||||
Internal revenues | - | 806 | - | - | (806 | ) | - | |||||||||||||||||
Total revenues | 2,520 | 1,176 | 723 | 9 | (787 | ) | 3,641 | |||||||||||||||||
Depreciation and amortization | 299 | 51 | (16 | ) | 1 | 8 | 343 | |||||||||||||||||
Investment income | 58 | 5 | - | 1 | (34 | ) | 30 | |||||||||||||||||
Net interest charges | 117 | 39 | - | 1 | 37 | 194 | ||||||||||||||||||
Income taxes | 175 | 99 | 11 | (2 | ) | (10 | ) | 273 | ||||||||||||||||
Net income | 269 | 148 | 16 | 6 | (26 | ) | 413 | |||||||||||||||||
Total assets | 23,308 | 7,182 | 268 | 232 | 663 | 31,653 | ||||||||||||||||||
Total goodwill | 5,585 | 24 | - | - | - | 5,609 | ||||||||||||||||||
Property additions | 209 | 199 | - | 3 | 19 | 430 | ||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 30, 2008 | ||||||||||||||||||||||||
External revenues | $ | 7,051 | $ | 1,164 | $ | 2,203 | $ | 65 | $ | (57 | ) | $ | 10,426 | |||||||||||
Internal revenues | - | 2,266 | - | - | (2,266 | ) | - | |||||||||||||||||
Total revenues | 7,051 | 3,430 | 2,203 | 65 | (2,323 | ) | 10,426 | |||||||||||||||||
Depreciation and amortization | 782 | 179 | 61 | 2 | 10 | 1,034 | ||||||||||||||||||
Investment income | 133 | (1 | ) | 1 | 6 | (66 | ) | 73 | ||||||||||||||||
Net interest charges | 303 | 86 | 1 | - | 133 | 523 | ||||||||||||||||||
Income taxes | 436 | 212 | 42 | (33 | ) | (72 | ) | 585 | ||||||||||||||||
Net income | 655 | 317 | 62 | 96 | (120 | ) | 1,010 | |||||||||||||||||
Total assets | 23,088 | 9,360 | 270 | 457 | 387 | 33,562 | ||||||||||||||||||
Total goodwill | 5,559 | 24 | - | - | - | 5,583 | ||||||||||||||||||
Property additions | 621 | 1,430 | - | 106 | 20 | 2,177 | ||||||||||||||||||
September 30, 2007 | ||||||||||||||||||||||||
External revenues | $ | 6,655 | $ | 1,089 | $ | 1,968 | $ | 29 | $ | (18 | ) | $ | 9,723 | |||||||||||
Internal revenues | - | 2,210 | - | - | (2,210 | ) | - | |||||||||||||||||
Total revenues | 6,655 | 3,299 | 1,968 | 29 | (2,228 | ) | 9,723 | |||||||||||||||||
Depreciation and amortization | 767 | 153 | (80 | ) | 3 | 20 | 863 | |||||||||||||||||
Investment income | 190 | 13 | 1 | 1 | (112 | ) | 93 | |||||||||||||||||
Net interest charges | 340 | 131 | 1 | 3 | 97 | 572 | ||||||||||||||||||
Income taxes | 464 | 259 | 46 | - | (74 | ) | 695 | |||||||||||||||||
Net income | 695 | 388 | 69 | 13 | (124 | ) | 1,041 | |||||||||||||||||
Total assets | 23,308 | 7,182 | 268 | 232 | 663 | 31,653 | ||||||||||||||||||
Total goodwill | 5,585 | 24 | - | - | - | 5,609 | ||||||||||||||||||
Property additions | 609 | 462 | - | 6 | 50 | 1,127 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Three Months Ended September 30, 2008 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
REVENUES | $ | 1,222,783 | $ | 574,394 | $ | 267,017 | $ | (822,590 | ) | $ | 1,241,604 | |||||||||
EXPENSES: | ||||||||||||||||||||
Fuel | 8,177 | 307,646 | 34,123 | - | 349,946 | |||||||||||||||
Purchased power from non-affiliates | 221,493 | - | - | - | 221,493 | |||||||||||||||
Purchased power from affiliates | 815,243 | 7,347 | 15,821 | (822,590 | ) | 15,821 | ||||||||||||||
Other operating expenses | 35,596 | 110,701 | 120,697 | 12,190 | 279,184 | |||||||||||||||
Provision for depreciation | 1,978 | 33,432 | 30,559 | (1,336 | ) | 64,633 | ||||||||||||||
General taxes | 4,829 | 10,768 | 6,139 | - | 21,736 | |||||||||||||||
Total expenses | 1,087,316 | 469,894 | 207,339 | (811,736 | ) | 952,813 | ||||||||||||||
- | - | - | - | |||||||||||||||||
OPERATING INCOME | 135,467 | 104,500 | 59,678 | (10,854 | ) | 288,791 | ||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Miscellaneous income (expense), including | ||||||||||||||||||||
net income from equity investees | 102,777 | (515 | ) | 13,287 | (97,122 | ) | 18,427 | |||||||||||||
Interest expense - affiliates | (120 | ) | (4,963 | ) | (2,932 | ) | - | (8,015 | ) | |||||||||||
Interest expense - other | (8,464 | ) | (23,447 | ) | (17,183 | ) | 16,325 | (32,769 | ) | |||||||||||
Capitalized interest | 41 | 11,376 | 978 | - | 12,395 | |||||||||||||||
Total other income (expense) | 94,234 | (17,549 | ) | (5,850 | ) | (80,797 | ) | (9,962 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 229,701 | 86,951 | 53,828 | (91,651 | ) | 278,829 | ||||||||||||||
INCOME TAXES | 44,046 | 31,863 | 14,995 | 2,270 | 93,174 | |||||||||||||||
NET INCOME | $ | 185,655 | $ | 55,088 | $ | 38,833 | $ | (93,921 | ) | $ | 185,655 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2009 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
REVENUES | $ | 1,201,895 | $ | 545,926 | $ | 395,628 | $ | (917,343 | ) | $ | 1,226,106 | |||||||||
EXPENSES: | ||||||||||||||||||||
Fuel | 2,095 | 274,847 | 29,216 | - | 306,158 | |||||||||||||||
Purchased power from non-affiliates | 160,342 | - | - | - | 160,342 | |||||||||||||||
Purchased power from affiliates | 915,261 | 2,082 | 63,207 | (917,343 | ) | 63,207 | ||||||||||||||
Other operating expenses | 38,267 | 104,443 | 152,456 | 12,190 | 307,356 | |||||||||||||||
Provision for depreciation | 1,019 | 30,020 | 31,649 | (1,315 | ) | 61,373 | ||||||||||||||
General taxes | 4,706 | 12,626 | 6,044 | - | 23,376 | |||||||||||||||
Total expenses | 1,121,690 | 424,018 | 282,572 | (906,468 | ) | 921,812 | ||||||||||||||
OPERATING INCOME | 80,205 | 121,908 | 113,056 | (10,875 | ) | 304,294 | ||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Miscellaneous income (expense), including | ||||||||||||||||||||
net income from equity investees | 120,513 | (47 | ) | (29,637 | ) | (117,192 | ) | (26,363 | ) | |||||||||||
Interest expense to affiliates | (34 | ) | (1,758 | ) | (1,187 | ) | - | (2,979 | ) | |||||||||||
Interest expense - other | (2,520 | ) | (21,058 | ) | (15,168 | ) | 16,219 | (22,527 | ) | |||||||||||
Capitalized interest | 51 | 7,750 | 2,277 | - | 10,078 | |||||||||||||||
Total other income (expense) | 118,010 | (15,113 | ) | (43,715 | ) | (100,973 | ) | (41,791 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 198,215 | 106,795 | 69,341 | (111,848 | ) | 262,503 | ||||||||||||||
INCOME TAXES | 27,534 | 39,142 | 22,929 | 2,217 | 91,822 | |||||||||||||||
NET INCOME | $ | 170,681 | $ | 67,653 | $ | 46,412 | $ | (114,065 | ) | $ | 170,681 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Three Months Ended September 30, 2007 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
REVENUES | $ | 1,180,449 | $ | 496,204 | $ | 280,072 | $ | (785,817 | ) | $ | 1,170,908 | |||||||||
EXPENSES: | ||||||||||||||||||||
Fuel | 10,944 | 261,759 | 29,083 | - | 301,786 | |||||||||||||||
Purchased power from non-affiliates | 228,755 | - | - | - | 228,755 | |||||||||||||||
Purchased power from affiliates | 774,873 | 57,927 | 15,525 | (785,817 | ) | 62,508 | ||||||||||||||
Other operating expenses | 41,828 | 75,985 | 117,220 | - | 235,033 | |||||||||||||||
Provision for depreciation | 650 | 24,669 | 23,181 | - | 48,500 | |||||||||||||||
General taxes | 5,406 | 11,788 | 5,048 | - | 22,242 | |||||||||||||||
Total expenses | 1,062,456 | 432,128 | 190,057 | (785,817 | ) | 898,824 | ||||||||||||||
OPERATING INCOME | 117,993 | 64,076 | 90,015 | - | 272,084 | |||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Miscellaneous income, including | ||||||||||||||||||||
net income from equity investees | 82,870 | 2,375 | 3,935 | (76,525 | ) | 12,655 | ||||||||||||||
Interest expense - affiliates | (676 | ) | (4,769 | ) | (4,196 | ) | - | (9,641 | ) | |||||||||||
Interest expense - other | (808 | ) | (21,274 | ) | (9,712 | ) | - | (31,794 | ) | |||||||||||
Capitalized interest | 9 | 3,889 | 1,233 | - | 5,131 | |||||||||||||||
Total other income (expense) | 81,395 | (19,779 | ) | (8,740 | ) | (76,525 | ) | (23,649 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 199,388 | 44,297 | 81,275 | (76,525 | ) | 248,435 | ||||||||||||||
INCOME TAXES | 44,624 | 19,850 | 29,197 | - | 93,671 | |||||||||||||||
NET INCOME | $ | 154,764 | $ | 24,447 | $ | 52,078 | $ | (76,525 | ) | $ | 154,764 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2008 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
REVENUES | $ | 1,099,848 | $ | 567,701 | $ | 325,684 | $ | (894,117 | ) | $ | 1,099,116 | |||||||||
EXPENSES: | ||||||||||||||||||||
Fuel | 2,138 | 291,239 | 28,312 | - | 321,689 | |||||||||||||||
Purchased power from non-affiliates | 206,724 | - | - | - | 206,724 | |||||||||||||||
Purchased power from affiliates | 891,979 | 2,138 | 25,485 | (894,117 | ) | 25,485 | ||||||||||||||
Other operating expenses | 37,596 | 107,167 | 139,595 | 12,188 | 296,546 | |||||||||||||||
Provision for depreciation | 307 | 26,599 | 24,194 | (1,358 | ) | 49,742 | ||||||||||||||
General taxes | 5,415 | 11,570 | 6,212 | - | 23,197 | |||||||||||||||
Total expenses | 1,144,159 | 438,713 | 223,798 | (883,287 | ) | 923,383 | ||||||||||||||
OPERATING INCOME (LOSS) | (44,311 | ) | 128,988 | 101,886 | (10,830 | ) | 175,733 | |||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Miscellaneous income (expense), including | ||||||||||||||||||||
net income from equity investees | 121,725 | (1,208 | ) | (6,537 | ) | (116,884 | ) | (2,904 | ) | |||||||||||
Interest expense to affiliates | (82 | ) | (5,289 | ) | (1,839 | ) | - | (7,210 | ) | |||||||||||
Interest expense - other | (3,978 | ) | (25,968 | ) | (11,018 | ) | 16,429 | (24,535 | ) | |||||||||||
Capitalized interest | 21 | 6,228 | 414 | - | 6,663 | |||||||||||||||
Total other income (expense) | 117,686 | (26,237 | ) | (18,980 | ) | (100,455 | ) | (27,986 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 73,375 | 102,751 | 82,906 | (111,285 | ) | 147,747 | ||||||||||||||
INCOME TAXES (BENEFIT) | (16,609 | ) | 39,285 | 32,764 | 2,323 | 57,763 | ||||||||||||||
NET INCOME | $ | 89,984 | $ | 63,466 | $ | 50,142 | $ | (113,608 | ) | $ | 89,984 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2008 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
REVENUES | $ | 3,387,258 | $ | 1,707,320 | $ | 879,729 | $ | (2,562,309 | ) | $ | 3,411,998 | |||||||||
EXPENSES: | ||||||||||||||||||||
Fuel | 13,920 | 876,077 | 92,188 | - | 982,185 | |||||||||||||||
Purchased power from non-affiliates | 648,556 | - | - | - | 648,556 | |||||||||||||||
Purchased power from affiliates | 2,549,892 | 12,417 | 75,834 | (2,562,309 | ) | 75,834 | ||||||||||||||
Other operating expenses | 103,034 | 342,041 | 381,826 | 36,567 | 863,468 | |||||||||||||||
Provision for depreciation | 3,885 | 90,058 | 80,646 | (4,054 | ) | 170,535 | ||||||||||||||
General taxes | 14,971 | 33,842 | 15,915 | - | 64,728 | |||||||||||||||
Total expenses | 3,334,258 | 1,354,435 | 646,409 | (2,529,796 | ) | 2,805,306 | ||||||||||||||
OPERATING INCOME | 53,000 | 352,885 | 233,320 | (32,513 | ) | 606,692 | ||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Miscellaneous income (expense), including | ||||||||||||||||||||
net income from equity investees | 323,092 | (1,234 | ) | (2,699 | ) | (305,710 | ) | 13,449 | ||||||||||||
Interest expense - affiliates | (252 | ) | (18,172 | ) | (7,529 | ) | - | (25,953 | ) | |||||||||||
Interest expense - other | (19,105 | ) | (73,112 | ) | (38,833 | ) | 49,241 | (81,809 | ) | |||||||||||
Capitalized interest | 90 | 27,460 | 2,049 | - | 29,599 | |||||||||||||||
Total other income (expense) | 303,825 | (65,058 | ) | (47,012 | ) | (256,469 | ) | (64,714 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 356,825 | 287,827 | 186,308 | (288,982 | ) | 541,978 | ||||||||||||||
INCOME TAXES | 13,092 | 109,615 | 68,597 | 6,941 | 198,245 | |||||||||||||||
NET INCOME | $ | 343,733 | $ | 178,212 | $ | 117,711 | $ | (295,923 | ) | $ | 343,733 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of March 31, 2009 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | - | $ | 34 | $ | - | $ | - | $ | 34 | ||||||||||
Receivables- | ||||||||||||||||||||
Customers | 54,554 | - | - | - | 54,554 | |||||||||||||||
Associated companies | 295,513 | 192,816 | 125,514 | (325,908 | ) | 287,935 | ||||||||||||||
Other | 2,562 | 14,705 | 49,026 | - | 66,293 | |||||||||||||||
Notes receivable from associated companies | 404,869 | 28,268 | - | - | 433,137 | |||||||||||||||
Materials and supplies, at average cost | 8,610 | 349,038 | 210,039 | - | 567,687 | |||||||||||||||
Prepayments and other | 84,466 | 26,589 | 1,107 | - | 112,162 | |||||||||||||||
850,574 | 611,450 | 385,686 | (325,908 | ) | 1,521,802 | |||||||||||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||||||||||||||
In service | 88,064 | 5,477,939 | 4,736,544 | (389,944 | ) | 9,912,603 | ||||||||||||||
Less - Accumulated provision for depreciation | 10,821 | 2,732,040 | 1,755,879 | (171,499 | ) | 4,327,241 | ||||||||||||||
77,243 | 2,745,899 | 2,980,665 | (218,445 | ) | 5,585,362 | |||||||||||||||
Construction work in progress | 4,728 | 1,626,685 | 483,418 | - | 2,114,831 | |||||||||||||||
81,971 | 4,372,584 | 3,464,083 | (218,445 | ) | 7,700,193 | |||||||||||||||
INVESTMENTS: | ||||||||||||||||||||
Nuclear plant decommissioning trusts | - | - | 995,476 | - | 995,476 | |||||||||||||||
Long-term notes receivable from associated companies | - | - | 62,900 | - | 62,900 | |||||||||||||||
Investment in associated companies | 3,712,870 | - | - | (3,712,870 | ) | - | ||||||||||||||
Other | 1,714 | 29,982 | 202 | - | 31,898 | |||||||||||||||
3,714,584 | 29,982 | 1,058,578 | (3,712,870 | ) | 1,090,274 | |||||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||||||||||||||
Accumulated deferred income tax benefits | 18,209 | 458,730 | - | (235,332 | ) | 241,607 | ||||||||||||||
Lease assignment receivable from associated companies | - | 71,356 | - | - | 71,356 | |||||||||||||||
Goodwill | 24,248 | - | - | - | 24,248 | |||||||||||||||
Property taxes | - | 27,494 | 22,610 | - | 50,104 | |||||||||||||||
Unamortized sale and leaseback costs | - | 32,128 | - | 54,174 | 86,302 | |||||||||||||||
Other | 65,233 | 58,004 | 8,332 | (44,428 | ) | 87,141 | ||||||||||||||
107,690 | 647,712 | 30,942 | (225,586 | ) | 560,758 | |||||||||||||||
$ | 4,754,819 | $ | 5,661,728 | $ | 4,939,289 | $ | (4,482,809 | ) | $ | 10,873,027 | ||||||||||
LIABILITIES AND CAPITALIZATION | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Currently payable long-term debt | $ | 708 | $ | 930,763 | $ | 777,218 | $ | (17,747 | ) | $ | 1,690,942 | |||||||||
Short-term borrowings- | ||||||||||||||||||||
Associated companies | - | 345,664 | 440,452 | - | 786,116 | |||||||||||||||
Other | 1,100,000 | - | - | - | 1,100,000 | |||||||||||||||
Accounts payable- | ||||||||||||||||||||
Associated companies | 361,848 | 132,694 | 232,204 | (317,586 | ) | 409,160 | ||||||||||||||
Other | 27,081 | 117,756 | - | - | 144,837 | |||||||||||||||
Accrued taxes | 22,861 | 75,462 | 45,300 | (20,889 | ) | 122,734 | ||||||||||||||
Other | 58,938 | 112,048 | 23,023 | 45,975 | 239,984 | |||||||||||||||
1,571,436 | 1,714,387 | 1,518,197 | (310,247 | ) | 4,493,773 | |||||||||||||||
CAPITALIZATION: | ||||||||||||||||||||
Common stockholder's equity | 3,120,406 | 1,901,085 | 1,797,764 | (3,698,849 | ) | 3,120,406 | ||||||||||||||
Long-term debt and other long-term obligations | 21,819 | 1,466,373 | 469,839 | (1,287,970 | ) | 670,061 | ||||||||||||||
3,142,225 | 3,367,458 | 2,267,603 | (4,986,819 | ) | 3,790,467 | |||||||||||||||
NONCURRENT LIABILITIES: | ||||||||||||||||||||
Deferred gain on sale and leaseback transaction | - | - | - | 1,018,156 | 1,018,156 | |||||||||||||||
Accumulated deferred income taxes | - | - | 203,899 | (203,899 | ) | - | ||||||||||||||
Accumulated deferred investment tax credits | - | 38,669 | 22,976 | - | 61,645 | |||||||||||||||
Asset retirement obligations | - | 24,274 | 852,799 | - | 877,073 | |||||||||||||||
Retirement benefits | 23,242 | 175,561 | - | - | 198,803 | |||||||||||||||
Property taxes | - | 27,494 | 22,610 | - | 50,104 | |||||||||||||||
Lease market valuation liability | - | 296,376 | - | - | 296,376 | |||||||||||||||
Other | 17,916 | 17,509 | 51,205 | - | 86,630 | |||||||||||||||
41,158 | 579,883 | 1,153,489 | 814,257 | 2,588,787 | ||||||||||||||||
$ | 4,754,819 | $ | 5,661,728 | $ | 4,939,289 | $ | (4,482,809 | ) | $ | 10,873,027 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2007 | FES | �� | FGCO | NGC | Eliminations | Consolidated | ||||||||||||||
(In thousands) | ||||||||||||||||||||
REVENUES | $ | 3,274,694 | $ | 1,501,112 | $ | 793,255 | $ | (2,311,129 | ) | $ | 3,257,932 | |||||||||
EXPENSES: | ||||||||||||||||||||
Fuel | 20,824 | 698,643 | 84,734 | - | 804,201 | |||||||||||||||
Purchased power from non-affiliates | 577,831 | - | - | - | 577,831 | |||||||||||||||
Purchased power from affiliates | 2,290,305 | 176,654 | 53,746 | (2,311,129 | ) | 209,576 | ||||||||||||||
Other operating expenses | 123,596 | 240,774 | 367,404 | - | 731,774 | |||||||||||||||
Provision for depreciation | 1,572 | 74,844 | 68,614 | - | 145,030 | |||||||||||||||
General taxes | 15,942 | 31,406 | 17,522 | - | 64,870 | |||||||||||||||
Total expenses | 3,030,070 | 1,222,321 | 592,020 | (2,311,129 | ) | 2,533,282 | ||||||||||||||
OPERATING INCOME | 244,624 | 278,791 | 201,235 | - | 724,650 | |||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Miscellaneous income, including | ||||||||||||||||||||
net income from equity investees | 271,599 | 2,669 | 13,350 | (239,862 | ) | 47,756 | ||||||||||||||
Interest expense - affiliates | (676 | ) | (47,090 | ) | (14,138 | ) | - | (61,904 | ) | |||||||||||
Interest expense - other | (7,966 | ) | (34,150 | ) | (28,729 | ) | - | (70,845 | ) | |||||||||||
Capitalized interest | 20 | 9,044 | 3,699 | - | 12,763 | |||||||||||||||
Total other income (expense) | 262,977 | (69,527 | ) | (25,818 | ) | (239,862 | ) | (72,230 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 507,601 | 209,264 | 175,417 | (239,862 | ) | 652,420 | ||||||||||||||
INCOME TAXES | 98,917 | 82,031 | 62,788 | - | 243,736 | |||||||||||||||
NET INCOME | $ | 408,684 | $ | 127,233 | $ | 112,629 | $ | (239,862 | ) | $ | 408,684 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2008 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | - | $ | 39 | $ | - | $ | - | $ | 39 | ||||||||||
Receivables- | ||||||||||||||||||||
Customers | 86,123 | - | - | - | 86,123 | |||||||||||||||
Associated companies | 363,226 | 225,622 | 113,067 | (323,815 | ) | 378,100 | ||||||||||||||
Other | 991 | 11,379 | 12,256 | - | 24,626 | |||||||||||||||
Notes receivable from associated companies | 107,229 | 21,946 | - | - | 129,175 | |||||||||||||||
Materials and supplies, at average cost | 5,750 | 303,474 | 212,537 | - | 521,761 | |||||||||||||||
Prepayments and other | 76,773 | 35,102 | 660 | - | 112,535 | |||||||||||||||
640,092 | 597,562 | 338,520 | (323,815 | ) | 1,252,359 | |||||||||||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||||||||||||||
In service | 134,905 | 5,420,789 | 4,705,735 | (389,525 | ) | 9,871,904 | ||||||||||||||
Less - Accumulated provision for depreciation | 13,090 | 2,702,110 | 1,709,286 | (169,765 | ) | 4,254,721 | ||||||||||||||
121,815 | 2,718,679 | 2,996,449 | (219,760 | ) | 5,617,183 | |||||||||||||||
Construction work in progress | 4,470 | 1,441,403 | 301,562 | - | 1,747,435 | |||||||||||||||
126,285 | 4,160,082 | 3,298,011 | (219,760 | ) | 7,364,618 | |||||||||||||||
INVESTMENTS: | ||||||||||||||||||||
Nuclear plant decommissioning trusts | - | - | 1,033,717 | - | 1,033,717 | |||||||||||||||
Long-term notes receivable from associated companies | - | - | 62,900 | - | 62,900 | |||||||||||||||
Investment in associated companies | 3,596,152 | - | - | (3,596,152 | ) | - | ||||||||||||||
Other | 1,913 | 59,476 | 202 | - | 61,591 | |||||||||||||||
3,598,065 | 59,476 | 1,096,819 | (3,596,152 | ) | 1,158,208 | |||||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||||||||||||||
Accumulated deferred income tax benefits | 24,703 | 476,611 | - | (233,552 | ) | 267,762 | ||||||||||||||
Lease assignment receivable from associated companies | - | 71,356 | - | - | 71,356 | |||||||||||||||
Goodwill | 24,248 | - | - | - | 24,248 | |||||||||||||||
Property taxes | - | 27,494 | 22,610 | - | 50,104 | |||||||||||||||
Unamortized sale and leaseback costs | - | 20,286 | - | 49,646 | 69,932 | |||||||||||||||
Other | 59,642 | 59,674 | 21,743 | (44,625 | ) | 96,434 | ||||||||||||||
108,593 | 655,421 | 44,353 | (228,531 | ) | 579,836 | |||||||||||||||
$ | 4,473,035 | $ | 5,472,541 | $ | 4,777,703 | $ | (4,368,258 | ) | $ | 10,355,021 | ||||||||||
LIABILITIES AND CAPITALIZATION | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Currently payable long-term debt | $ | 5,377 | $ | 925,234 | $ | 1,111,183 | $ | (16,896 | ) | $ | 2,024,898 | |||||||||
Short-term borrowings- | ||||||||||||||||||||
Associated companies | 1,119 | 257,357 | 6,347 | - | 264,823 | |||||||||||||||
Other | 1,000,000 | - | - | - | 1,000,000 | |||||||||||||||
Accounts payable- | ||||||||||||||||||||
Associated companies | 314,887 | 221,266 | 250,318 | (314,133 | ) | 472,338 | ||||||||||||||
Other | 35,367 | 119,226 | - | - | 154,593 | |||||||||||||||
Accrued taxes | 8,272 | 60,385 | 30,790 | (19,681 | ) | 79,766 | ||||||||||||||
Other | 61,034 | 136,867 | 13,685 | 36,853 | 248,439 | |||||||||||||||
1,426,056 | 1,720,335 | 1,412,323 | (313,857 | ) | 4,244,857 | |||||||||||||||
CAPITALIZATION: | ||||||||||||||||||||
Common stockholder's equity | 2,944,423 | 1,832,678 | 1,752,580 | (3,585,258 | ) | 2,944,423 | ||||||||||||||
Long-term debt and other long-term obligations | 61,508 | 1,328,921 | 469,839 | (1,288,820 | ) | 571,448 | ||||||||||||||
3,005,931 | 3,161,599 | 2,222,419 | (4,874,078 | ) | 3,515,871 | |||||||||||||||
NONCURRENT LIABILITIES: | ||||||||||||||||||||
Deferred gain on sale and leaseback transaction | - | - | - | 1,026,584 | 1,026,584 | |||||||||||||||
Accumulated deferred income taxes | - | - | 206,907 | (206,907 | ) | - | ||||||||||||||
Accumulated deferred investment tax credits | - | 39,439 | 23,289 | - | 62,728 | |||||||||||||||
Asset retirement obligations | - | 24,134 | 838,951 | - | 863,085 | |||||||||||||||
Retirement benefits | 22,558 | 171,619 | - | - | 194,177 | |||||||||||||||
Property taxes | - | 27,494 | 22,610 | - | 50,104 | |||||||||||||||
Lease market valuation liability | - | 307,705 | - | - | 307,705 | |||||||||||||||
Other | 18,490 | 20,216 | 51,204 | - | 89,910 | |||||||||||||||
41,048 | 590,607 | 1,142,961 | 819,677 | 2,594,293 | ||||||||||||||||
$ | 4,473,035 | $ | 5,472,541 | $ | 4,777,703 | $ | (4,368,258 | ) | $ | 10,355,021 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
As of September 30, 2008 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 2 | $ | - | $ | - | $ | - | $ | 2 | ||||||||||
Receivables- | ||||||||||||||||||||
Customers | 137,126 | - | - | - | 137,126 | |||||||||||||||
Associated companies | 267,777 | 195,005 | 100,481 | (299,484 | ) | 263,779 | ||||||||||||||
Other | 910 | 1,595 | 20,419 | - | 22,924 | |||||||||||||||
Notes receivable from associated companies | 118,526 | 38,400 | - | - | 156,926 | |||||||||||||||
Materials and supplies, at average cost | 3,519 | 288,623 | 205,134 | - | 497,276 | |||||||||||||||
Prepayments and other | 64,585 | 84,138 | 30,807 | - | 179,530 | |||||||||||||||
592,445 | 607,761 | 356,841 | (299,484 | ) | 1,257,563 | |||||||||||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||||||||||||||
In service | 108,733 | 5,413,310 | 4,704,478 | (391,859 | ) | 9,834,662 | ||||||||||||||
Less - Accumulated provision for depreciation | 10,990 | 2,712,638 | 1,658,863 | (170,774 | ) | 4,211,717 | ||||||||||||||
97,743 | 2,700,672 | 3,045,615 | (221,085 | ) | 5,622,945 | |||||||||||||||
Construction work in progress | 2,827 | 1,225,381 | 157,444 | - | 1,385,652 | |||||||||||||||
100,570 | 3,926,053 | 3,203,059 | (221,085 | ) | 7,008,597 | |||||||||||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||||||||||||||
Nuclear plant decommissioning trusts | - | - | 1,145,384 | - | 1,145,384 | |||||||||||||||
Long-term notes receivable from associated companies | - | - | 62,900 | - | 62,900 | |||||||||||||||
Investment in associated companies | 3,581,979 | - | - | (3,581,979 | ) | - | ||||||||||||||
Other | 2,124 | 38,247 | 202 | - | 40,573 | |||||||||||||||
3,584,103 | 38,247 | 1,208,486 | (3,581,979 | ) | 1,248,857 | |||||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||||||||||||||
Accumulated deferred income taxes | 9,655 | 471,718 | - | (251,032 | ) | 230,341 | ||||||||||||||
Lease assignment receivable from associated companies | - | 71,356 | - | - | 71,356 | |||||||||||||||
Goodwill | 24,248 | - | - | - | 24,248 | |||||||||||||||
Property taxes | - | 25,007 | 22,767 | - | 47,774 | |||||||||||||||
Pension assets | 3,208 | 11,556 | - | - | 14,764 | |||||||||||||||
Unamortized sale and leaseback costs | - | 8,445 | - | 48,920 | 57,365 | |||||||||||||||
Other | 18,343 | 59,511 | 18,717 | (46,869 | ) | 49,702 | ||||||||||||||
55,454 | 647,593 | 41,484 | (248,981 | ) | 495,550 | |||||||||||||||
$ | 4,332,572 | $ | 5,219,654 | $ | 4,809,870 | $ | (4,351,529 | ) | $ | 10,010,567 | ||||||||||
LIABILITIES AND CAPITALIZATION | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Currently payable long-term debt | $ | 4,679 | $ | 873,562 | $ | 1,077,289 | $ | (17,315 | ) | $ | 1,938,215 | |||||||||
Short-term borrowings- | ||||||||||||||||||||
Associated companies | - | 147,108 | 164,642 | - | 311,750 | |||||||||||||||
Other | 1,000,000 | - | - | - | 1,000,000 | |||||||||||||||
Accounts payable- | ||||||||||||||||||||
Associated companies | 276,155 | 202,678 | 158,215 | (275,601 | ) | 361,447 | ||||||||||||||
Other | 36,724 | 126,449 | - | - | 163,173 | |||||||||||||||
Accrued taxes | 4,109 | 88,826 | 17,661 | (29,877 | ) | 80,719 | ||||||||||||||
Other | 36,491 | 116,637 | 26,777 | 38,009 | 217,914 | |||||||||||||||
1,358,158 | 1,555,260 | 1,444,584 | (284,784 | ) | 4,073,218 | |||||||||||||||
CAPITALIZATION: | ||||||||||||||||||||
Common stockholder's equity | 2,916,934 | 1,813,911 | 1,755,054 | (3,568,965 | ) | 2,916,934 | ||||||||||||||
Long-term debt and other long-term obligations | 40,333 | 1,364,207 | 451,365 | (1,296,982 | ) | 558,923 | ||||||||||||||
2,957,267 | 3,178,118 | 2,206,419 | (4,865,947 | ) | 3,475,857 | |||||||||||||||
NONCURRENT LIABILITIES: | ||||||||||||||||||||
Deferred gain on sale and leaseback transaction | - | - | - | 1,035,013 | 1,035,013 | |||||||||||||||
Accumulated deferred income taxes | - | - | 235,811 | (235,811 | ) | - | ||||||||||||||
Accumulated deferred investment tax credits | - | 40,209 | 23,759 | - | 63,968 | |||||||||||||||
Asset retirement obligations | - | 24,148 | 825,327 | - | 849,475 | |||||||||||||||
Retirement benefits | 9,745 | 57,822 | - | - | 67,567 | |||||||||||||||
Property taxes | - | 25,328 | 22,767 | - | 48,095 | |||||||||||||||
Lease market valuation liability | - | 319,129 | - | - | 319,129 | |||||||||||||||
Other | 7,402 | 19,640 | 51,203 | - | 78,245 | |||||||||||||||
17,147 | 486,276 | 1,158,867 | 799,202 | 2,461,492 | ||||||||||||||||
$ | 4,332,572 | $ | 5,219,654 | $ | 4,809,870 | $ | (4,351,529 | ) | $ | 10,010,567 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2009 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
NET CASH PROVIDED FROM OPERATING ACTIVITIES | $ | 200,420 | $ | 28,545 | $ | 118,902 | $ | - | $ | 347,867 | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
New Financing- | ||||||||||||||||||||
Long-term debt | - | 100,000 | - | - | 100,000 | |||||||||||||||
Short-term borrowings, net | 98,881 | 88,308 | 434,105 | - | 621,294 | |||||||||||||||
Redemptions and Repayments- | ||||||||||||||||||||
Long-term debt | (1,189 | ) | (626 | ) | (334,101 | ) | - | (335,916 | ) | |||||||||||
Net cash provided from financing activities | 97,692 | 187,682 | 100,004 | - | 385,378 | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Property additions | (358 | ) | (198,631 | ) | (213,816 | ) | - | (412,805 | ) | |||||||||||
Proceeds from asset sales | - | 7,573 | - | - | 7,573 | |||||||||||||||
Sales of investment securities held in trusts | - | - | 351,414 | - | 351,414 | |||||||||||||||
Purchases of investment securities held in trusts | - | - | (356,904 | ) | - | (356,904 | ) | |||||||||||||
Loans to associated companies, net | (297,641 | ) | (6,322 | ) | - | - | (303,963 | ) | ||||||||||||
Other | (113 | ) | (18,852 | ) | 400 | - | (18,565 | ) | ||||||||||||
Net cash used for investing activities | (298,112 | ) | (216,232 | ) | (218,906 | ) | - | (733,250 | ) | |||||||||||
Net change in cash and cash equivalents | - | (5 | ) | - | - | (5 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | - | 39 | - | - | 39 | |||||||||||||||
Cash and cash equivalents at end of period | $ | - | $ | 34 | $ | - | $ | - | $ | 34 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2008 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
NET CASH PROVIDED FROM (USED FOR) | ||||||||||||||||||||
OPERATING ACTIVITIES | $ | 273,827 | $ | (122,171 | ) | $ | 8,108 | $ | 188 | $ | 159,952 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
New Financing- | ||||||||||||||||||||
Short-term borrowings, net | 400,000 | 646,975 | 234,921 | - | 1,281,896 | |||||||||||||||
Redemptions and Repayments- | ||||||||||||||||||||
Long-term debt | - | (135,063 | ) | (153,540 | ) | - | (288,603 | ) | ||||||||||||
Common stock dividend payments | (10,000 | ) | - | - | - | (10,000 | ) | |||||||||||||
Net cash provided from financing activities | 390,000 | 511,912 | 81,381 | - | 983,293 | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Property additions | (19,406 | ) | (375,391 | ) | (81,545 | ) | (187 | ) | (476,529 | ) | ||||||||||
Proceeds from asset sales | - | 5,088 | - | - | 5,088 | |||||||||||||||
Sales of investment securities held in trusts | - | - | 173,123 | - | 173,123 | |||||||||||||||
Purchases of investment securities held in trusts | - | - | (181,079 | ) | - | (181,079 | ) | |||||||||||||
Loans to associated companies, net | (644,604 | ) | - | - | - | (644,604 | ) | |||||||||||||
Other | 183 | (19,438 | ) | 12 | (1 | ) | (19,244 | ) | ||||||||||||
Net cash used for investing activities | (663,827 | ) | (389,741 | ) | (89,489 | ) | (188 | ) | (1,143,245 | ) | ||||||||||
Net change in cash and cash equivalents | - | - | - | - | - | |||||||||||||||
Cash and cash equivalents at beginning of period | 2 | - | - | - | 2 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 2 | $ | - | $ | - | $ | - | $ | 2 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
As of December 31, 2007 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 2 | $ | - | $ | - | $ | - | $ | 2 | ||||||||||
Receivables- | ||||||||||||||||||||
Customers | 133,846 | - | - | - | 133,846 | |||||||||||||||
Associated companies | 327,715 | 237,202 | 98,238 | (286,656 | ) | 376,499 | ||||||||||||||
Other | 2,845 | 978 | - | - | 3,823 | |||||||||||||||
Notes receivable from associated companies | 23,772 | - | 69,012 | - | 92,784 | |||||||||||||||
Materials and supplies, at average cost | 195 | 215,986 | 210,834 | - | 427,015 | |||||||||||||||
Prepayments and other | 67,981 | 21,605 | 2,754 | - | 92,340 | |||||||||||||||
556,356 | 475,771 | 380,838 | (286,656 | ) | 1,126,309 | |||||||||||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||||||||||||||
In service | 25,513 | 5,065,373 | 3,595,964 | (392,082 | ) | 8,294,768 | ||||||||||||||
Less - Accumulated provision for depreciation | 7,503 | 2,553,554 | 1,497,712 | (166,756 | ) | 3,892,013 | ||||||||||||||
18,010 | 2,511,819 | 2,098,252 | (225,326 | ) | 4,402,755 | |||||||||||||||
Construction work in progress | 1,176 | 571,672 | 188,853 | - | 761,701 | |||||||||||||||
19,186 | 3,083,491 | 2,287,105 | (225,326 | ) | 5,164,456 | |||||||||||||||
OTHER PROPERTY AND INVESTMENTS: | ||||||||||||||||||||
Nuclear plant decommissioning trusts | - | - | 1,332,913 | - | 1,332,913 | |||||||||||||||
Long-term notes receivable from associated companies | - | - | 62,900 | - | 62,900 | |||||||||||||||
Investment in associated companies | 2,516,838 | - | - | (2,516,838 | ) | - | ||||||||||||||
Other | 2,732 | 37,071 | 201 | - | 40,004 | |||||||||||||||
2,519,570 | 37,071 | 1,396,014 | (2,516,838 | ) | 1,435,817 | |||||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | ||||||||||||||||||||
Accumulated deferred income taxes | 16,978 | 522,216 | - | (262,271 | ) | 276,923 | ||||||||||||||
Lease assignment receivable from associated companies | - | 215,258 | - | - | 215,258 | |||||||||||||||
Goodwill | 24,248 | - | - | - | 24,248 | |||||||||||||||
Property taxes | - | 25,007 | 22,767 | - | 47,774 | |||||||||||||||
Pension asset | 3,217 | 13,506 | - | - | 16,723 | |||||||||||||||
Unamortized sale and leaseback costs | - | 27,597 | - | 43,206 | 70,803 | |||||||||||||||
Other | 22,956 | 52,971 | 6,159 | (38,133 | ) | 43,953 | ||||||||||||||
67,399 | 856,555 | 28,926 | (257,198 | ) | 695,682 | |||||||||||||||
$ | 3,162,511 | $ | 4,452,888 | $ | 4,092,883 | $ | (3,286,018 | ) | $ | 8,422,264 | ||||||||||
LIABILITIES AND CAPITALIZATION | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Currently payable long-term debt | $ | - | $ | 596,827 | $ | 861,265 | $ | (16,896 | ) | $ | 1,441,196 | |||||||||
Short-term borrowings- | ||||||||||||||||||||
Associated companies | - | 238,786 | 25,278 | - | 264,064 | |||||||||||||||
Other | 300,000 | - | - | - | 300,000 | |||||||||||||||
Accounts payable- | ||||||||||||||||||||
Associated companies | 287,029 | 175,965 | 268,926 | (286,656 | ) | 445,264 | ||||||||||||||
Other | 56,194 | 120,927 | - | - | 177,121 | |||||||||||||||
Accrued taxes | 18,831 | 125,227 | 28,229 | (836 | ) | 171,451 | ||||||||||||||
Other | 57,705 | 131,404 | 11,972 | 36,725 | 237,806 | |||||||||||||||
719,759 | 1,389,136 | 1,195,670 | (267,663 | ) | 3,036,902 | |||||||||||||||
CAPITALIZATION: | ||||||||||||||||||||
Common stockholder's equity | 2,414,231 | 951,542 | 1,562,069 | (2,513,611 | ) | 2,414,231 | ||||||||||||||
Long-term debt and other long-term obligations | - | 1,597,028 | 242,400 | (1,305,716 | ) | 533,712 | ||||||||||||||
2,414,231 | 2,548,570 | 1,804,469 | (3,819,327 | ) | 2,947,943 | |||||||||||||||
NONCURRENT LIABILITIES: | ||||||||||||||||||||
Deferred gain on sale and leaseback transaction | - | - | - | 1,060,119 | 1,060,119 | |||||||||||||||
Accumulated deferred income taxes | - | - | 259,147 | (259,147 | ) | - | ||||||||||||||
Accumulated deferred investment tax credits | - | 36,054 | 25,062 | - | 61,116 | |||||||||||||||
Asset retirement obligations | - | 24,346 | 785,768 | - | 810,114 | |||||||||||||||
Retirement benefits | 8,721 | 54,415 | - | - | 63,136 | |||||||||||||||
Property taxes | - | 25,328 | 22,767 | - | 48,095 | |||||||||||||||
Lease market valuation liability | - | 353,210 | - | - | 353,210 | |||||||||||||||
Other | 19,800 | 21,829 | - | - | 41,629 | |||||||||||||||
28,521 | 515,182 | 1,092,744 | 800,972 | 2,437,419 | ||||||||||||||||
$ | 3,162,511 | $ | 4,452,888 | $ | 4,092,883 | $ | (3,286,018 | ) | $ | 8,422,264 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2008 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
NET CASH PROVIDED FROM OPERATING ACTIVITIES: | $ | 47,463 | $ | 267,933 | $ | 247,054 | $ | (8,317 | ) | $ | 554,133 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
New Financing- | ||||||||||||||||||||
Long-term debt | - | 328,325 | 209,050 | - | 537,375 | |||||||||||||||
Equity contribution from parent | 280,000 | 675,000 | 175,000 | (850,000 | ) | 280,000 | ||||||||||||||
Short-term borrowings, net | 700,000 | - | 139,363 | (91,677 | ) | 747,686 | ||||||||||||||
Redemptions and Repayments- | ||||||||||||||||||||
Long-term debt | (1,777 | ) | (286,776 | ) | (180,666 | ) | 8,317 | (460,902 | ) | |||||||||||
Short-term borrowings, net | - | (91,677 | ) | - | 91,677 | - | ||||||||||||||
Common stock dividend payment | (43,000 | ) | - | - | - | (43,000 | ) | |||||||||||||
Net cash provided from financing activities | 935,223 | 624,872 | 342,747 | (841,683 | ) | 1,061,159 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Property additions | (38,481 | ) | (778,329 | ) | (600,395 | ) | - | (1,417,205 | ) | |||||||||||
Proceeds from asset sales | - | 15,218 | - | - | 15,218 | |||||||||||||||
Sales of investment securities held in trusts | - | - | 596,291 | - | 596,291 | |||||||||||||||
Purchases of investment securities held in trusts | - | - | (624,899 | ) | - | (624,899 | ) | |||||||||||||
Loan repayments from (loans to) associated companies, net | (94,755 | ) | (38,399 | ) | 69,012 | - | (64,142 | ) | ||||||||||||
Investment in subsidiary | (850,000 | ) | - | - | 850,000 | - | ||||||||||||||
Restricted funds for debt redemption | - | (52,090 | ) | (29,550 | ) | - | (81,640 | ) | ||||||||||||
Other | 550 | (39,205 | ) | (260 | ) | - | (38,915 | ) | ||||||||||||
Net cash used for investing activities | (982,686 | ) | (892,805 | ) | (589,801 | ) | 850,000 | (1,615,292 | ) | |||||||||||
Net change in cash and cash equivalents | - | - | - | - | - | |||||||||||||||
Cash and cash equivalents at beginning of period | 2 | - | - | - | 2 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 2 | $ | - | $ | - | $ | - | $ | 2 |
FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2007 | FES | FGCO | NGC | Eliminations | Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
NET CASH PROVIDED FROM (USED FOR) | ||||||||||||||||||||
OPERATING ACTIVITIES | $ | (7,937 | ) | $ | 350,927 | $ | 179,037 | $ | - | $ | 522,027 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
New Financing- | ||||||||||||||||||||
Long-term debt | - | 1,328,919 | - | (1,328,919 | ) | - | ||||||||||||||
Equity contribution from parent | 700,000 | 700,000 | - | (700,000 | ) | 700,000 | ||||||||||||||
Short-term borrowings, net | 223,942 | - | 13,128 | (237,070 | ) | - | ||||||||||||||
Redemptions and Repayments- | ||||||||||||||||||||
Common stock | (600,000 | ) | - | - | - | (600,000 | ) | |||||||||||||
Long-term debt | - | (795,019 | ) | (315,155 | ) | - | (1,110,174 | ) | ||||||||||||
Short-term borrowings, net | - | (1,022,197 | ) | - | 237,070 | (785,127 | ) | |||||||||||||
Common stock dividend payment | (67,000 | ) | - | - | - | (67,000 | ) | |||||||||||||
Net cash provided from (used for) financing activities | 256,942 | 211,703 | (302,027 | ) | (2,028,919 | ) | (1,862,301 | ) | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Property additions | (10,119 | ) | (332,499 | ) | (140,289 | ) | - | (482,907 | ) | |||||||||||
Proceeds from asset sales | - | 12,990 | - | - | 12,990 | |||||||||||||||
Proceeds from sale and leaseback transaction | - | - | - | 1,328,919 | 1,328,919 | |||||||||||||||
Sales of investment securities held in trusts | - | - | 521,535 | - | 521,535 | |||||||||||||||
Purchases of investment securities held in trusts | - | - | (552,779 | ) | - | (552,779 | ) | |||||||||||||
Loan repayments from (loans to) associated companies, net | 460,023 | (242,612 | ) | 292,896 | - | 510,307 | ||||||||||||||
Investment in subsidiary | (700,000 | ) | - | 700,000 | - | |||||||||||||||
Other | 1,091 | (509 | ) | 1,627 | - | 2,209 | ||||||||||||||
Net cash provided from (used for) investing activities | (249,005 | ) | (562,630 | ) | 122,990 | 2,028,919 | 1,340,274 | |||||||||||||
Net change in cash and cash equivalents | - | - | - | - | - | |||||||||||||||
Cash and cash equivalents at beginning of period | 2 | - | - | - | 2 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 2 | $ | - | $ | - | $ | - | $ | 2 |
Period | |||||||||
July 1-31, | August 1-31, | September 1-30, | Third | ||||||
2008 | 2008 | 2008 | Quarter | ||||||
Total Number of Shares Purchased (a) | 52,166 | 32,187 | 208,772 | 293,125 | |||||
Average Price Paid per Share | $81.63 | $71.63 | $72.09 | $73.74 | |||||
Total Number of Shares Purchased | |||||||||
As Part of Publicly Announced Plans | |||||||||
or Programs | |||||||||
Maximum Number (or Approximate Dollar | - | - | - | - | |||||
Value) of Shares that May Yet Be | |||||||||
Purchased Under the Plans or Programs | - | - | - | - |
Period | ||||||||||
January | February | March | First Quarter | |||||||
Total Number of Shares Purchased (a) | 23,535 | 20,090 | 887,792 | 931,417 | ||||||
Average Price Paid per Share | $50.09 | $46.20 | $41.34 | $41.67 | ||||||
Total Number of Shares Purchased | ||||||||||
As Part of Publicly Announced Plans | ||||||||||
or Programs | - | - | - | - | ||||||
Maximum Number (or Approximate Dollar | ||||||||||
Value) of Shares that May Yet Be | ||||||||||
Purchased Under the Plans or Programs | - | - | - | - |
(a) | Share amounts reflect purchases on the open market to satisfy FirstEnergy's obligations to deliver common stock under its 2007 Incentive Compensation Plan, Deferred Compensation Plan for Outside Directors, Executive Deferred Compensation Plan, Savings Plan and Stock Investment Plan. In addition, such amounts reflect shares tendered by employees to pay the exercise price or withholding taxes upon exercise of stock options granted under the 2007 Incentive Compensation Plan and the Executive Deferred Compensation Plan, and shares purchased as part of publicly announced plans. |
Exhibit Number | |||||
FirstEnergy | |||||
10.1 | |||||
10.2 | Form of Management Director Indemnification Agreement | ||||
12 | Fixed charge ratios | ||||
15 | Letter from independent registered public accounting firm | ||||
31.1 | Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a) | ||||
31.2 | Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a) | ||||
32 | Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350 | ||||
101* | The following materials from the Quarterly Report on Form 10-Q of FirstEnergy Corp. for the three months ended March 31, 2009, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income and Comprehensive Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, (iv) related notes to these financial statements tagged as blocks of text and (v) document and entity information. | ||||
FES | |||||
4.1 | Open-End Mortgage, General Mortgage Indenture and Deed of Trust, dated as of June 19, 2008, of FirstEnergy Generation Corp. to The Bank of New York Trust Company, N.A., as Trustee | ||||
4.1(a) | First Supplemental Indenture dated as of June 25, 2008 providing among other things for First Mortgage Bonds, Guarantee Series A of 2008 due 2009 and First Mortgage Bonds, Guarantee Series B of 2008 due 2009 | ||||
4.1(b) | Second Supplemental Indenture dated as of March 1, 2009 providing among other things for First Mortgage Bonds, Guarantee Series A of 2009 due 2014 and First Mortgage Bonds, Guarantee Series B of 2009 due 2023 | ||||
4.1(c) | Third Supplemental Indenture dated as of March 31, 2009 providing among other things for First Mortgage Bonds, Collateral Series A of 2009 due 2011 | ||||
31.1 | Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a) | ||||
31.2 | Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a) | ||||
32 | Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350 | ||||
OE | |||||
12 | Fixed charge ratios | ||||
15 | Letter from independent registered public accounting firm | ||||
31.1 | Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a) | ||||
31.2 | Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a) | ||||
32 | Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350 | ||||
12 | Fixed charge ratios | ||||
15 | Letter from independent registered public accounting firm | ||||
31.1 | Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a) | ||||
31.2 | Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a) | ||||
32 | Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350 | ||||
4.1 | First Supplemental Indenture, dated as of April 24, 2009, between the Toledo Edison Company and The Bank of New York Mellon Trust Company, N.A., as trustee to the Indenture dated as of November 1, 2006 (incorporated by reference to April 24, 2009 Form 8-K, Exhibit 4.1) | ||||
4.2 | Officer’s Certificate (including the Form of the 7.25% Senior Secured Notes due 2020), dated April 24, 2009 (incorporated by reference to April 24, 2009 Form 8-K, Exhibit 4.2) | ||||
4.3 | Fifty-sixth Supplemental Indenture, dated as of April 23, 2009, between The Toledo Edison Company and JPMorgan Chase Bank, N.A., as trustee, to the Indenture of Mortgage and Deed of Trust dated as of April 1, 1947 (incorporated by reference to April 24, 2009 Form 8-K, Exhibit 4.3) | ||||
4.4 | Fifty-seventh Supplemental Indenture, dated as of April 24, 2009, between the Toledo Edison Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee, to the Indenture of Mortgage and Deed of Trust dated as of April 1, 1947 (incorporated by reference to April 24, 2009 Form 8-K, Exhibit 4.4) | ||||
4.5 | Form of First Mortgage Bonds, 7.25% Series of 2009 Due 2020 (incorporated by reference to April 24, 2009 Form 8-K, Exhibit 4.5) | ||||
12 | Fixed charge ratios | ||||
15 | Letter from independent registered public accounting firm | ||||
31.1 | Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a) | ||||
31.2 | Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a) | ||||
32 | Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350 | ||||
12 | Fixed charge ratios | ||||
15 | Letter from independent registered public accounting firm | ||||
31.1 | Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a) | ||||
31.2 | Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a) | ||||
32 | Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350 |
Met-Ed | ||
12 | Fixed charge ratios | |
15 | Letter from independent registered public accounting firm | |
31.1 | Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a) | |
31.2 | Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a) | |
32 | Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350 | |
Penelec | ||
12 | Fixed charge ratios | |
15 | Letter from independent registered public accounting firm | |
31.1 | Certification of chief executive officer, as adopted pursuant to Rule 13a-14(a) | |
31.2 | Certification of chief financial officer, as adopted pursuant to Rule 13a-14(a) | |
32 | Certification of chief executive officer and chief financial officer, pursuant to 18 U.S.C. Section 1350 |
FIRSTENERGY | |
Registrant | |
FIRSTENERGY SOLUTIONS CORP. | |
Registrant | |
OHIO EDISON COMPANY | |
Registrant | |
THE CLEVELAND ELECTRIC | |
ILLUMINATING COMPANY | |
Registrant | |
THE TOLEDO EDISON COMPANY | |
Registrant | |
METROPOLITAN EDISON COMPANY | |
Registrant | |
PENNSYLVANIA ELECTRIC COMPANY | |
Registrant |
/s/ Harvey L. Wagner | |
Harvey L. Wagner | |
Vice President, Controller | |
and Chief Accounting Officer |
JERSEY CENTRAL POWER & LIGHT COMPANY | |
Registrant | |
/s/ Paulette R. Chatman | |
Paulette R. Chatman | |
Controller | |
(Principal Accounting Officer) |