Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Entity Information [Line Items] | |||
Entity Registrant Name | FIRSTENERGY CORP | ||
Entity Central Index Key | 1031296 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock Shares Outstanding | 421,182,123 | ||
Entity Public Float | $14,551,349,320 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
FES | |||
Entity Information [Line Items] | |||
Entity Registrant Name | FirstEnergy Solutions Corp. | ||
Entity Central Index Key | 1407703 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock Shares Outstanding | 7 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (FirstEnergy Corp.) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
REVENUES: | ||||||||||||||
Electric utilities | $3,483 | $3,888 | $3,496 | $4,182 | $3,633 | $4,032 | $3,507 | $3,720 | $9,871 | $9,451 | $9,782 | |||
Unregulated businesses | 5,178 | 5,441 | 5,473 | |||||||||||
Total revenues | 15,049 | [1] | 14,892 | [1] | 15,255 | [1] | ||||||||
OPERATING EXPENSES: | ||||||||||||||
Fuel | 2,280 | 2,496 | 2,471 | |||||||||||
Purchased power | 4,716 | 3,963 | 4,246 | |||||||||||
Other operating expenses | 901 | 858 | 1,021 | 1,182 | 948 | 877 | 886 | 882 | 3,962 | 3,593 | 3,760 | |||
Pension and OPEB mark-to-market adjustment | 835 | 0 | 0 | 0 | -256 | 0 | 0 | 0 | 835 | -256 | 609 | |||
Provision for depreciation | 316 | 308 | 302 | 294 | 293 | 316 | 300 | 293 | 1,220 | 1,202 | 1,119 | |||
Amortization (deferral) of regulatory assets, net | 12 | 539 | -68 | |||||||||||
General taxes | 962 | 978 | 984 | |||||||||||
Impairment of long-lived assets | 0 | 0 | 0 | 0 | 322 | 0 | 473 | 0 | 0 | 795 | 0 | |||
Total operating expenses | 13,987 | 13,310 | 13,121 | |||||||||||
OPERATING INCOME (LOSS) | -337 | 716 | 292 | 391 | 387 | 508 | 42 | 645 | 1,062 | 1,582 | 2,134 | |||
OTHER INCOME (EXPENSE): | ||||||||||||||
Loss on debt redemptions | -8 | -132 | 0 | |||||||||||
Investment income | 72 | 33 | 77 | |||||||||||
Interest expense | -1,073 | -1,016 | -1,001 | |||||||||||
Capitalized financing costs | 118 | 103 | 90 | |||||||||||
Total other expense | -891 | -1,012 | -834 | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 171 | 570 | 1,300 | |||||||||||
INCOME TAXES | -268 | 152 | 26 | 48 | 66 | 77 | -62 | 114 | -42 | 195 | 545 | |||
INCOME FROM CONTINUING OPERATIONS | -306 | 333 | 64 | 122 | 142 | 209 | -168 | 192 | 213 | 375 | 755 | |||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | 86 | 0 | 9 | 4 | 4 | 86 | 17 | 16 | |||
NET INCOME (LOSS) | -306 | 333 | 64 | 208 | 142 | 218 | -164 | 196 | 299 | 392 | 771 | |||
Income attributable to noncontrolling interest | 0 | 0 | 1 | |||||||||||
EARNINGS AVAILABLE TO FIRSTENERGY CORP. | $299 | $392 | $770 | |||||||||||
EARNINGS PER SHARE OF COMMON STOCK: | ||||||||||||||
Basic - Continuing Operations, in dollars per share | ($0.73) | $0.79 | $0.16 | $0.29 | $0.34 | $0.50 | ($0.40) | $0.46 | $0.51 | $0.90 | $1.81 | |||
Basic - Discontinued Operations, in dollars per share | $0 | $0 | $0 | $0.21 | $0 | $0.02 | $0.01 | $0.01 | $0.20 | $0.04 | $0.04 | |||
Basic - Earnings Available to FirstEnergy Corp., in dollars per share | ($0.73) | $0.79 | $0.16 | $0.50 | $0.34 | $0.52 | ($0.39) | $0.47 | $0.71 | $0.94 | $1.85 | |||
Diluted - Continuing Operations, in dollars per share | ($0.73) | $0.79 | $0.15 | $0.29 | $0.34 | $0.50 | ($0.40) | $0.46 | $0.51 | $0.90 | $1.80 | |||
Diluted - Discontinued Operations, in dollars per share | $0 | $0 | $0 | $0.20 | $0 | $0.02 | $0.01 | $0.01 | $0.20 | $0.04 | $0.04 | |||
Diluted - Earnings Available to FirstEnergy Corp., in dollars per share | ($0.73) | $0.79 | $0.15 | $0.49 | $0.34 | $0.52 | ($0.39) | $0.47 | $0.71 | $0.94 | $1.84 | |||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||||||||||||||
Basic, in shares | 420 | 418 | 418 | |||||||||||
Diluted, in shares | 421 | 419 | 419 | |||||||||||
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK, in dollars per share | $1.44 | $1.65 | $2.20 | |||||||||||
[1] | Includes excise tax collections of $420 million, $458 million and $484 million in 2014, 2013 and 2012, respectively. |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (FirstEnergy Corp.) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Tax effect of discontinued operations | $69 | $9 | $8 |
Excise tax collections included in Revenue | $420 | $458 | $484 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (FirstEnergy Corp.) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $299 | $392 | $771 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Pension and OPEB prior service costs | -76 | -160 | -115 |
Amortized gains (losses) on derivative hedges | -2 | 3 | 1 |
Change in unrealized gain on available-for-sale securities | 26 | -10 | -6 |
Other comprehensive income (loss) | -52 | -167 | -120 |
Income tax benefits on other comprehensive loss | -14 | -66 | -79 |
Other comprehensive loss, net of tax | -38 | -101 | -41 |
COMPREHENSIVE INCOME (LOSS) | 261 | 291 | 730 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 1 |
COMPREHENSIVE INCOME AVAILABLE TO FIRSTENERGY CORP. | $261 | $291 | $729 |
Consolidated_Balance_Sheets_Fi
Consolidated Balance Sheets (FirstEnergy Corp.) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $85 | $218 |
Receivables- | ||
Customers, net of allowance for uncollectible accounts of $59 in 2014 and $52 in 2013 | 1,554 | 1,720 |
Other, net of allowance for uncollectible accounts of $5 in 2014 and $3 in 2013 | 225 | 198 |
Materials and supplies, at average cost | 817 | 752 |
Prepaid taxes | 128 | 226 |
Derivatives | 159 | 166 |
Accumulated deferred income taxes | 518 | 366 |
Collateral | 230 | 155 |
Other | 160 | 212 |
Total current assets | 3,876 | 4,013 |
PROPERTY, PLANT AND EQUIPMENT: | ||
In service | 47,484 | 44,228 |
Less - Accumulated provision for depreciation | 14,150 | 13,280 |
Property, plant and equipment in service net of accumulated provision for depreciation | 33,334 | 30,948 |
Construction work in progress | 2,449 | 2,304 |
Total net property, plant and equipment | 35,783 | 33,252 |
INVESTMENTS: | ||
Nuclear plant decommissioning trusts | 2,341 | 2,201 |
Other | 881 | 903 |
Total other property and investments | 3,222 | 3,104 |
ASSETS HELD FOR SALE (Note 19) | 0 | 235 |
DEFERRED CHARGES AND OTHER ASSETS: | ||
Goodwill | 6,418 | 6,418 |
Regulatory assets | 1,411 | 1,854 |
Other | 1,456 | 1,548 |
Total deferred charges and other assets | 9,285 | 9,820 |
Total assets | 52,166 | 50,424 |
CURRENT LIABILITIES: | ||
Currently payable long-term debt | 804 | 1,415 |
Short-term borrowings | 1,799 | 3,404 |
Accounts payable | 1,279 | 1,250 |
Accrued taxes | 490 | 485 |
Accrued compensation and benefits | 329 | 351 |
Derivatives | 167 | 111 |
Other | 693 | 621 |
Total current liabilities | 5,561 | 7,637 |
Common stockholders' equity- | ||
Common stock, $0.10 par value, authorized 490,000,000 shares - 421,102,570 and 418,628,559 shares outstanding as of December 31, 2014 and December 31, 2013, respectively | 42 | 42 |
Other paid-in capital | 9,847 | 9,776 |
Accumulated other comprehensive income | 246 | 284 |
Retained earnings | 2,285 | 2,590 |
Total common stockholders' equity | 12,420 | 12,692 |
Noncontrolling interest | 2 | 3 |
Total equity | 12,422 | 12,695 |
Long-term debt and other long-term obligations | 19,176 | 15,831 |
Total capitalization | 31,598 | 28,526 |
NONCURRENT LIABILITIES: | ||
Accumulated deferred income taxes | 7,057 | 6,968 |
Retirement benefits | 3,932 | 2,689 |
Asset retirement obligations | 1,387 | 1,678 |
Deferred gain on sale and leaseback transaction | 824 | 858 |
Adverse power contract liability | 217 | 290 |
Other | 1,590 | 1,778 |
Total noncurrent liabilities | 15,007 | 14,261 |
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 15) | ||
Total liabilities and capitalization | $52,166 | $50,424 |
Consolidated_Balance_Sheets_Fi1
Consolidated Balance Sheets (FirstEnergy Corp.) (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Common stockholders' equity- | ||
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares outstanding | 421,102,570 | 418,628,559 |
Customer [Member] | ||
Receivables- | ||
Allowance for uncollectible accounts (in dollars) | $59 | $52 |
Other [Member] | ||
Receivables- | ||
Allowance for uncollectible accounts (in dollars) | $5 | $3 |
Consolidated_Statements_of_Com1
Consolidated Statements of Common Stockholders' Equity (FirstEnergy Corp.) (USD $) | Total | Common Stock | Other Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
In Millions, except Share data, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2011 | $42 | $9,765 | $426 | $3,047 | |
Beginning Balance, Shares at Dec. 31, 2011 | 418,216,437 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Earnings available to Parent | 770 | 770 | |||
Change in unrealized loss on derivative hedges, net of income taxes | 2 | ||||
Change in unrealized gain on investments, net of income taxes | -4 | ||||
Pensions and OPEB, net of income taxes | -39 | ||||
Stock-based compensation | 4 | ||||
Cash dividends declared on common stock | -920 | ||||
Equity method adjustment (Note 9) | -9 | 9 | |||
Ending Balance at Dec. 31, 2012 | 42 | 9,769 | 385 | 2,888 | |
Beginning Balance, Shares at Dec. 31, 2012 | 418,216,437 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Earnings available to Parent | 392 | 392 | |||
Change in unrealized loss on derivative hedges, net of income taxes | 2 | ||||
Change in unrealized gain on investments, net of income taxes | -6 | ||||
Pensions and OPEB, net of income taxes | -97 | ||||
Stock-based compensation | -4 | ||||
Cash dividends declared on common stock | -690 | ||||
Stock issuance - employee benefits, Shares | 412,122 | ||||
Stock issuance - employee benefits | 11 | ||||
Ending Balance at Dec. 31, 2013 | 12,692 | 42 | 9,776 | 284 | 2,590 |
Ending Balance, Shares at Dec. 31, 2013 | 418,628,559 | 418,628,559 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Earnings available to Parent | 299 | 299 | |||
Change in unrealized loss on derivative hedges, net of income taxes | -1 | ||||
Change in unrealized gain on investments, net of income taxes | 16 | ||||
Pensions and OPEB, net of income taxes | -53 | ||||
Stock-based compensation | 20 | ||||
Cash dividends declared on common stock | -604 | ||||
Stock issuance - employee benefits, Shares | 2,474,011 | ||||
Stock issuance - employee benefits | 51 | ||||
Ending Balance at Dec. 31, 2014 | $12,420 | $42 | $9,847 | $246 | $2,285 |
Ending Balance, Shares at Dec. 31, 2014 | 421,102,570 | 421,102,570 |
Consolidated_Statements_of_Com2
Consolidated Statements of Common Stockholders' Equity (FirstEnergy Corp.) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Stockholders' Equity [Abstract] | |||
Unrealized gain (loss) on derivative hedges taxes | ($1) | $1 | ($1) |
Unrealized gain (loss) on investment taxes | 10 | -4 | -2 |
Taxes on pension and other postretirement taxes | ($23) | ($63) | ($76) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (FirstEnergy Corp.) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME | $299 | $392 | $771 |
Adjustments to reconcile net income to net cash from operating activities- | |||
Provision for depreciation | 1,220 | 1,202 | 1,119 |
Asset removal costs charged to income | 28 | 20 | 203 |
Amortization (deferral) of regulatory assets, net | 12 | 539 | -68 |
Nuclear fuel amortization | 220 | 209 | 210 |
Amortization of deferred costs on sale leaseback transaction, net | 48 | 48 | 48 |
Amortization of customer intangibles assets and deferred advertising costs | 60 | 18 | 18 |
Deferred purchased power and other costs | -115 | -76 | -238 |
Deferred income taxes and investment tax credits, net | 162 | 243 | 647 |
Impairments of long-lived assets | 0 | 795 | 0 |
Investment impairments | 37 | 90 | 27 |
Pension and OPEB mark-to-market adjustment | 835 | -256 | 609 |
Retirement benefits | -53 | -168 | -127 |
Gain on asset sales | 0 | -21 | -17 |
Commodity derivative transactions, net (Note 10) | 64 | -3 | -102 |
Pension trust contributions | 0 | 0 | -600 |
Gain on sale of investment securities held in trusts | -64 | -56 | -71 |
Loss on debt redemptions | 8 | 132 | 0 |
Make-whole premiums paid on debt redemptions | 0 | -187 | 0 |
Lease payments on sale and leaseback transaction | -137 | -136 | -186 |
Income from discontinued operations (Note 19) | -86 | -17 | -16 |
Decrease (increase) in operating assets- | |||
Receivables | 139 | -114 | -13 |
Materials and supplies | -65 | 96 | -50 |
Prepayments and other current assets | 126 | -126 | -12 |
Increase (decrease) in operating liabilities- | |||
Accounts payable | 42 | -25 | 100 |
Accrued taxes | -165 | 85 | -2 |
Accrued interest | 31 | -10 | -12 |
Accrued compensation and benefits | -22 | 19 | -55 |
Cash collateral, net | -54 | -36 | 12 |
Other | 143 | 5 | 125 |
Net cash provided from operating activities | 2,713 | 2,662 | 2,320 |
New Financing- | |||
Long-term debt | 4,528 | 3,745 | 750 |
Short-term borrowings, net | 0 | 1,435 | 1,969 |
Redemptions and Repayments- | |||
Long-term debt | -1,759 | -3,600 | -940 |
Short-term borrowings, net | -1,605 | 0 | 0 |
Tender premiums paid on debt redemptions | 0 | -110 | 0 |
Common stock dividend payments | -604 | -920 | -920 |
Other | -47 | -73 | -52 |
Net cash provided from (used for) financing activities | 513 | 477 | 807 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Property additions | -3,312 | -2,638 | -2,678 |
Nuclear fuel | -233 | -250 | -286 |
Proceeds from asset sales | 394 | 4 | 17 |
Sales of investment securities held in trusts | 2,133 | 2,047 | 2,980 |
Purchases of investment securities held in trusts | -2,236 | -2,096 | -3,020 |
Cash investments | 35 | -23 | 102 |
Asset removal costs | -153 | -146 | -229 |
Other | 13 | 9 | -43 |
Net cash used for investing activities | -3,359 | -3,093 | -3,157 |
Net change in cash and cash equivalents | -133 | 46 | -30 |
Cash and cash equivalents at beginning of period | 218 | 172 | 202 |
Cash and cash equivalents at end of period | 85 | 218 | 172 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest (net of amounts capitalized) | 931 | 969 | 962 |
Income taxes (received), net of refunds | ($103) | $36 | ($6) |
Consolidated_Statements_of_Inc2
Consolidated Statements of Income and Comprehensive Income (FirstEnergy Solutions Corp.) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
REVENUES: | ||||||
Electric sales | $5,178 | $5,441 | $5,473 | |||
Total revenues | 15,049 | [1] | 14,892 | [1] | 15,255 | [1] |
OPERATING EXPENSES: | ||||||
Fuel | 2,280 | 2,496 | 2,471 | |||
Purchased power | 4,716 | 3,963 | 4,246 | |||
Other operating expenses | 3,962 | 3,593 | 3,760 | |||
Pension and OPEB mark-to-market adjustment | 835 | -256 | 609 | |||
Provision for depreciation | 1,220 | 1,202 | 1,119 | |||
General taxes | 962 | 978 | 984 | |||
Total operating expenses | 13,987 | 13,310 | 13,121 | |||
OPERATING INCOME (LOSS) | 1,062 | 1,582 | 2,134 | |||
OTHER INCOME (EXPENSE): | ||||||
Loss on debt redemptions | -8 | -132 | 0 | |||
Investment income | 72 | 33 | 77 | |||
Interest expense | -1,073 | -1,016 | -1,001 | |||
Capitalized financing costs | 118 | 103 | 90 | |||
Total other expense | -891 | -1,012 | -834 | |||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 171 | 570 | 1,300 | |||
INCOME TAXES (BENEFITS) | -42 | 195 | 545 | |||
INCOME FROM CONTINUING OPERATIONS | 213 | 375 | 755 | |||
Discontinued operations (net of income taxes of $70, $8 and $8, respectively) (Note 19) | 86 | 17 | 16 | |||
NET INCOME (LOSS) | 299 | 392 | 771 | |||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||
NET INCOME | 299 | 392 | 771 | |||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||
Pension and OPEB prior service costs | -76 | -160 | -115 | |||
Amortized loss (gain) on derivative hedges | -2 | 3 | 1 | |||
Change in unrealized gain on available-for-sale securities | 26 | -10 | -6 | |||
Other comprehensive income (loss) | -52 | -167 | -120 | |||
Income taxes (benefits) on other comprehensive income (loss) | -14 | -66 | -79 | |||
Other comprehensive loss, net of tax | -38 | -101 | -41 | |||
COMPREHENSIVE INCOME (LOSS) | 261 | 291 | 730 | |||
Excise tax collections included in Revenue | 420 | 458 | 484 | |||
FES | ||||||
REVENUES: | ||||||
Other | 169 | 143 | 126 | |||
Total revenues | 6,144 | [2] | 6,173 | [2] | 5,894 | [2] |
OPERATING EXPENSES: | ||||||
Fuel | 1,253 | 1,262 | 1,287 | |||
Other operating expenses | 1,635 | 1,487 | 1,356 | |||
Pension and OPEB mark-to-market adjustment | 297 | -81 | 166 | |||
Provision for depreciation | 319 | 306 | 272 | |||
General taxes | 128 | 138 | 136 | |||
Total operating expenses | 6,674 | 5,931 | 5,555 | |||
OPERATING INCOME (LOSS) | -530 | 242 | 339 | |||
OTHER INCOME (EXPENSE): | ||||||
Loss on debt redemptions | -6 | -103 | 0 | |||
Investment income | 61 | 16 | 66 | |||
Miscellaneous income | 6 | 28 | 35 | |||
Capitalized financing costs | 34 | 39 | 37 | |||
Total other expense | -58 | -190 | -63 | |||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -588 | 52 | 276 | |||
INCOME TAXES (BENEFITS) | -228 | 6 | 103 | |||
INCOME FROM CONTINUING OPERATIONS | -360 | 46 | 173 | |||
Discontinued operations (net of income taxes of $70, $8 and $8, respectively) (Note 19) | 116 | 14 | 14 | |||
NET INCOME (LOSS) | -244 | 60 | 187 | |||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||
NET INCOME | -244 | 60 | 187 | |||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||
Pension and OPEB prior service costs | -6 | -15 | 6 | |||
Amortized loss (gain) on derivative hedges | -10 | -6 | -9 | |||
Change in unrealized gain on available-for-sale securities | 21 | -8 | -5 | |||
Other comprehensive income (loss) | 5 | -29 | -8 | |||
Income taxes (benefits) on other comprehensive income (loss) | 2 | -11 | -4 | |||
Other comprehensive loss, net of tax | 3 | -18 | -4 | |||
COMPREHENSIVE INCOME (LOSS) | -241 | 42 | 183 | |||
Excise tax collections included in Revenue | 69 | 78 | 77 | |||
FES | Affiliates | ||||||
REVENUES: | ||||||
Electric sales | 861 | 652 | 515 | |||
OPERATING EXPENSES: | ||||||
Purchased power | 271 | 486 | 451 | |||
OTHER INCOME (EXPENSE): | ||||||
Interest expense | -7 | -10 | -10 | |||
FES | Non-Affiliates | ||||||
REVENUES: | ||||||
Electric sales | 5,114 | 5,378 | 5,253 | |||
OPERATING EXPENSES: | ||||||
Purchased power | 2,771 | 2,333 | 1,887 | |||
OTHER INCOME (EXPENSE): | ||||||
Interest expense | ($146) | ($160) | ($191) | |||
[1] | Includes excise tax collections of $420 million, $458 million and $484 million in 2014, 2013 and 2012, respectively. | |||||
[2] | Includes excise tax collections of $69 million, $78 million and $77 million in 2014, 2013 and 2012, respectively. |
Consolidated_Statements_of_Inc3
Consolidated Statements of Income and Comprehensive Income (FirstEnergy Solutions Corp.) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Tax effect of discontinued operations | $69 | $9 | $8 |
FES | |||
Tax effect of discontinued operations | $70 | $8 | $8 |
Consolidated_Balance_Sheets_Fi2
Consolidated Balance Sheets (FirstEnergy Solutions Corp.) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $85 | $218 |
Receivables- | ||
Customers, net of allowance for uncollectible accounts of $18 in 2014 and $11 in 2013 | 1,554 | 1,720 |
Other, net of allowance for uncollectible accounts of $3 in 2014 and 2013 | 225 | 198 |
Materials and supplies | 817 | 752 |
Derivatives | 159 | 166 |
Collateral | 230 | 155 |
Prepayments and other | 160 | 212 |
Total current assets | 3,876 | 4,013 |
PROPERTY, PLANT AND EQUIPMENT: | ||
In service | 47,484 | 44,228 |
Less - Accumulated provision for depreciation | 14,150 | 13,280 |
Property, plant and equipment in service net of accumulated provision for depreciation | 33,334 | 30,948 |
Construction work in progress | 2,449 | 2,304 |
Total net property, plant and equipment | 35,783 | 33,252 |
INVESTMENTS: | ||
Nuclear plant decommissioning trusts | 2,341 | 2,201 |
Other | 881 | 903 |
Total other property and investments | 3,222 | 3,104 |
ASSETS HELD FOR SALE (Note 19) | 0 | 235 |
DEFERRED CHARGES AND OTHER ASSETS: | ||
Customer intangibles | 496 | |
Goodwill | 6,418 | 6,418 |
Other | 1,456 | 1,548 |
Total deferred charges and other assets | 9,285 | 9,820 |
Total assets | 52,166 | 50,424 |
CURRENT LIABILITIES: | ||
Currently payable long-term debt | 804 | 1,415 |
Short-term borrowings- | ||
Short-term borrowings | 1,799 | 3,404 |
Accounts payable- | ||
Accrued taxes | 490 | 485 |
Derivatives | 167 | 111 |
Other | 693 | 621 |
Total current liabilities | 5,561 | 7,637 |
Common stockholders' equity- | ||
Common stock, without par value, authorized 750 shares- 7 shares outstanding as of December 31, 2014 and 2013 | 42 | 42 |
Accumulated other comprehensive income | 246 | 284 |
Retained earnings | 2,285 | 2,590 |
Total common stockholders' equity | 12,420 | 12,692 |
Long-term debt and other long-term obligations | 19,176 | 15,831 |
Total capitalization | 31,598 | 28,526 |
NONCURRENT LIABILITIES: | ||
Deferred gain on sale and leaseback transaction | 824 | 858 |
Accumulated deferred income taxes | 7,057 | 6,968 |
Asset retirement obligations | 1,387 | 1,678 |
Retirement benefits | 3,932 | 2,689 |
Other | 1,590 | 1,778 |
Total noncurrent liabilities | 15,007 | 14,261 |
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 15) | ||
Total liabilities and capitalization | 52,166 | 50,424 |
FES | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 2 | 2 |
Receivables- | ||
Customers, net of allowance for uncollectible accounts of $18 in 2014 and $11 in 2013 | 415 | 539 |
Affiliated companies | 525 | 1,036 |
Other, net of allowance for uncollectible accounts of $3 in 2014 and 2013 | 107 | 81 |
Materials and supplies | 492 | 448 |
Derivatives | 147 | 165 |
Collateral | 229 | 136 |
Prepayments and other | 95 | 109 |
Total current assets | 2,012 | 2,516 |
PROPERTY, PLANT AND EQUIPMENT: | ||
In service | 13,596 | 12,472 |
Less - Accumulated provision for depreciation | 5,208 | 4,755 |
Property, plant and equipment in service net of accumulated provision for depreciation | 8,388 | 7,717 |
Construction work in progress | 1,010 | 1,308 |
Total net property, plant and equipment | 9,398 | 9,025 |
INVESTMENTS: | ||
Nuclear plant decommissioning trusts | 1,365 | 1,276 |
Other | 10 | 11 |
Total other property and investments | 1,375 | 1,287 |
ASSETS HELD FOR SALE (Note 19) | 0 | 122 |
DEFERRED CHARGES AND OTHER ASSETS: | ||
Customer intangibles | 78 | 95 |
Goodwill | 23 | 23 |
Property taxes | 41 | 41 |
Unamortized sale and leaseback costs | 217 | 168 |
Derivatives | 52 | 53 |
Other | 114 | 172 |
Total deferred charges and other assets | 525 | 552 |
Total assets | 13,310 | 13,502 |
CURRENT LIABILITIES: | ||
Currently payable long-term debt | 506 | 892 |
Short-term borrowings- | ||
Short-term borrowings | 99 | 4 |
Accounts payable- | ||
Affiliated companies | 416 | 765 |
Other | 248 | 290 |
Accrued taxes | 102 | 66 |
Derivatives | 166 | 110 |
Other | 184 | 197 |
Total current liabilities | 1,756 | 2,755 |
Common stockholders' equity- | ||
Common stock, without par value, authorized 750 shares- 7 shares outstanding as of December 31, 2014 and 2013 | 3,594 | 3,080 |
Accumulated other comprehensive income | 57 | 54 |
Retained earnings | 1,934 | 2,178 |
Total common stockholders' equity | 5,585 | 5,312 |
Long-term debt and other long-term obligations | 2,608 | 2,130 |
Total capitalization | 8,193 | 7,442 |
NONCURRENT LIABILITIES: | ||
Deferred gain on sale and leaseback transaction | 824 | 858 |
Accumulated deferred income taxes | 511 | 741 |
Asset retirement obligations | 841 | 1,015 |
Retirement benefits | 324 | 185 |
Derivatives | 14 | 14 |
Other | 847 | 492 |
Total noncurrent liabilities | 3,361 | 3,305 |
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 15) | ||
Total liabilities and capitalization | 13,310 | 13,502 |
FES | Affiliates | ||
Short-term borrowings- | ||
Other Short-term Borrowings | $35 | $431 |
Consolidated_Balance_Sheets_Fi3
Consolidated Balance Sheets (FirstEnergy Solutions Corp.) (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Common stockholders' equity- | ||
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares outstanding | 421,102,570 | 418,628,559 |
Customer [Member] | ||
Receivables- | ||
Allowance for uncollectible accounts (in dollars) | 59 | 52 |
Other Receivables [Member] | ||
Receivables- | ||
Allowance for uncollectible accounts (in dollars) | 5 | 3 |
FES | ||
Common stockholders' equity- | ||
Common stock, no par value | ||
Common stock, shares authorized | 750 | 750 |
Common stock, shares outstanding | 7 | 7 |
FES | Customer [Member] | ||
Receivables- | ||
Allowance for uncollectible accounts (in dollars) | 18 | 11 |
FES | Other Receivables [Member] | ||
Receivables- | ||
Allowance for uncollectible accounts (in dollars) | 3 | 3 |
Consolidated_Statements_of_Com3
Consolidated Statements of Common Stockholders' Equity (FirstEnergy Solutions Corp.) (USD $) | Total | Common Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | FES | FES | FES | FES |
In Millions, except Share data, unless otherwise specified | Common Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | |||||
Beginning Balance at Dec. 31, 2011 | $42 | $426 | $3,047 | $1,570 | $76 | $1,931 | ||
Beginning Balance, Shares at Dec. 31, 2011 | 418,216,437 | 7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 771 | 187 | 187 | |||||
Change in unrealized loss on derivative hedges, net of income taxes | 2 | -6 | ||||||
Change in unrealized gain on investments, net of income taxes | -4 | -3 | ||||||
Pensions and OPEB, net of income taxes | -39 | 5 | ||||||
Stock-based compensation | 2 | |||||||
Consolidated tax benefit allocation | 1 | |||||||
Ending Balance at Dec. 31, 2012 | 42 | 385 | 2,888 | 1,573 | 72 | 2,118 | ||
Ending Balance, Shares at Dec. 31, 2012 | 418,216,437 | 7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 196 | 2 | ||||||
Ending Balance at Mar. 31, 2013 | ||||||||
Beginning Balance at Dec. 31, 2012 | 42 | 385 | 2,888 | 1,573 | 72 | 2,118 | ||
Beginning Balance, Shares at Dec. 31, 2012 | 418,216,437 | 7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 392 | 60 | 60 | |||||
Change in unrealized loss on derivative hedges, net of income taxes | 2 | -4 | ||||||
Change in unrealized gain on investments, net of income taxes | -6 | -5 | ||||||
Pensions and OPEB, net of income taxes | -97 | -9 | ||||||
Equity contribution from parent | 1,500 | |||||||
Stock-based compensation | 1 | |||||||
Consolidated tax benefit allocation | 6 | |||||||
Ending Balance at Dec. 31, 2013 | 12,692 | 42 | 284 | 2,590 | 5,312 | 3,080 | 54 | 2,178 |
Ending Balance, Shares at Dec. 31, 2013 | 418,628,559 | 418,628,559 | 7 | 7 | ||||
Beginning Balance at Sep. 30, 2013 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 142 | 89 | ||||||
Ending Balance at Dec. 31, 2013 | 12,692 | 42 | 2,590 | 5,312 | ||||
Ending Balance, Shares at Dec. 31, 2013 | 418,628,559 | 418,628,559 | 7 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 208 | 13 | ||||||
Ending Balance at Mar. 31, 2014 | ||||||||
Beginning Balance at Dec. 31, 2013 | 12,692 | 42 | 284 | 2,590 | 5,312 | 3,080 | 54 | 2,178 |
Beginning Balance, Shares at Dec. 31, 2013 | 418,628,559 | 418,628,559 | 7 | 7 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | 299 | -244 | -244 | |||||
Change in unrealized loss on derivative hedges, net of income taxes | -1 | -6 | ||||||
Change in unrealized gain on investments, net of income taxes | 16 | 13 | ||||||
Pensions and OPEB, net of income taxes | -53 | -4 | ||||||
Equity contribution from parent | 500 | |||||||
Stock-based compensation | 7 | |||||||
Consolidated tax benefit allocation | 7 | |||||||
Ending Balance at Dec. 31, 2014 | 12,420 | 42 | 246 | 2,285 | 5,585 | 3,594 | 57 | 1,934 |
Ending Balance, Shares at Dec. 31, 2014 | 421,102,570 | 421,102,570 | 7 | 7 | ||||
Beginning Balance at Sep. 30, 2014 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
NET INCOME | -306 | -214 | ||||||
Ending Balance at Dec. 31, 2014 | $12,420 | $42 | $2,285 | $5,585 | ||||
Ending Balance, Shares at Dec. 31, 2014 | 421,102,570 | 421,102,570 | 7 |
Consolidated_Statements_of_Com4
Consolidated Statements of Common Stockholders' Equity (FirstEnergy Solutions Corp.) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrealized gain (loss) on derivative hedges taxes | ($1) | $1 | ($1) |
Unrealized gain (loss) on investment taxes | 10 | -4 | -2 |
Taxes on pension and other postretirement taxes | -23 | -63 | -76 |
FES | |||
Unrealized gain (loss) on derivative hedges taxes | -4 | -2 | -3 |
Unrealized gain (loss) on investment taxes | 8 | -3 | -2 |
Taxes on pension and other postretirement taxes | ($2) | ($6) | $1 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (FirstEnergy Solutions Corp.) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME | $299 | $392 | $771 |
Adjustments to reconcile net income (loss) to net cash from operating activities- | |||
Provision for depreciation | 1,220 | 1,202 | 1,119 |
Nuclear fuel amortization | 220 | 209 | 210 |
Amortization of deferred costs on sale leaseback transaction, net | 48 | 48 | 48 |
Amortization of customer intangibles assets and deferred advertising costs | 60 | 18 | 18 |
Deferred income taxes and investment tax credits, net | 162 | 243 | 647 |
Investment impairments | 37 | 90 | 27 |
Pension and OPEB mark-to-market adjustment | 835 | -256 | 609 |
Pension trust contributions | 0 | 0 | -600 |
Gain on sale of investment securities held in trusts | -64 | -56 | -71 |
Gain on asset sales | 0 | -21 | -17 |
Commodity derivative transactions, net (Note 10) | 64 | -3 | -102 |
Loss on debt redemptions | 8 | 132 | 0 |
Make-whole premiums paid on debt redemptions | 0 | -187 | 0 |
Lease payments on sale and leaseback transaction | -137 | -136 | -186 |
Income from discontinued operations (Note 19) | -86 | -17 | -16 |
Decrease (increase) in operating assets- | |||
Receivables | 139 | -114 | -13 |
Materials and supplies | -65 | 96 | -50 |
Prepayments and other current assets | 126 | -126 | -12 |
Increase (decrease) in operating liabilities- | |||
Accounts payable | 42 | -25 | 100 |
Accrued taxes | -165 | 85 | -2 |
Accrued compensation and benefits | -22 | 19 | -55 |
Cash collateral, net | -54 | -36 | 12 |
Other | 143 | 5 | 125 |
Net cash provided from operating activities | 2,713 | 2,662 | 2,320 |
New financing- | |||
Long-term debt | 4,528 | 3,745 | 750 |
Short-term borrowings, net | 0 | 1,435 | 1,969 |
Redemptions and Repayments- | |||
Long-term debt | -1,759 | -3,600 | -940 |
Short-term borrowings, net | -1,605 | 0 | 0 |
Tender premiums paid on debt redemptions | 0 | -110 | 0 |
Other | -47 | -73 | -52 |
Net cash provided from (used for) financing activities | 513 | 477 | 807 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Property additions | -3,312 | -2,638 | -2,678 |
Nuclear fuel | -233 | -250 | -286 |
Proceeds from asset sales | 394 | 4 | 17 |
Sales of investment securities held in trusts | 2,133 | 2,047 | 2,980 |
Purchases of investment securities held in trusts | -2,236 | -2,096 | -3,020 |
Other | 13 | 9 | -43 |
Net cash used for investing activities | -3,359 | -3,093 | -3,157 |
Net change in cash and cash equivalents | -133 | 46 | -30 |
Cash and cash equivalents at beginning of period | 218 | 172 | 202 |
Cash and cash equivalents at end of period | 85 | 218 | 172 |
Cash paid (received) during the year- | |||
Interest (net of amounts capitalized) | 931 | 969 | 962 |
Income taxes (received), net of refunds | -103 | 36 | -6 |
FES | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME | -244 | 60 | 187 |
Adjustments to reconcile net income (loss) to net cash from operating activities- | |||
Provision for depreciation | 319 | 306 | 272 |
Nuclear fuel amortization | 220 | 209 | 210 |
Amortization of deferred costs on sale leaseback transaction, net | 48 | 48 | 48 |
Amortization of customer intangibles assets and deferred advertising costs | 60 | 18 | 18 |
Deferred income taxes and investment tax credits, net | 7 | 309 | 214 |
Investment impairments | 33 | 79 | 14 |
Pension and OPEB mark-to-market adjustment | 297 | -81 | 166 |
Pension trust contributions | 0 | 0 | -209 |
Gain on sale of investment securities held in trusts | -61 | -49 | -65 |
Gain on asset sales | 0 | -20 | -17 |
Commodity derivative transactions, net (Note 10) | 65 | 5 | -74 |
Loss on debt redemptions | 6 | 103 | 0 |
Make-whole premiums paid on debt redemptions | 0 | -31 | 0 |
Lease payments on sale and leaseback transaction | -131 | -131 | -182 |
Income from discontinued operations (Note 19) | -116 | -14 | -14 |
Decrease (increase) in operating assets- | |||
Receivables | 674 | -393 | 135 |
Materials and supplies | -44 | 57 | -13 |
Prepayments and other current assets | 14 | -39 | -18 |
Increase (decrease) in operating liabilities- | |||
Accounts payable | -477 | -145 | 240 |
Accrued taxes | -50 | -207 | -64 |
Accrued compensation and benefits | -11 | 2 | 8 |
Cash collateral, net | -92 | -34 | -33 |
Other | 54 | 26 | -2 |
Net cash provided from operating activities | 571 | 78 | 821 |
New financing- | |||
Long-term debt | 878 | 0 | 650 |
Short-term borrowings, net | 0 | 431 | 3 |
Equity contribution from parent | 500 | 1,500 | 0 |
Redemptions and Repayments- | |||
Long-term debt | -816 | -1,202 | -429 |
Short-term borrowings, net | -301 | 0 | 0 |
Tender premiums paid on debt redemptions | 0 | -67 | 0 |
Other | -15 | -9 | -12 |
Net cash provided from (used for) financing activities | 246 | 653 | 212 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Property additions | -839 | -717 | -795 |
Nuclear fuel | -233 | -250 | -286 |
Proceeds from asset sales | 307 | 21 | 17 |
Sales of investment securities held in trusts | 1,163 | 940 | 1,464 |
Purchases of investment securities held in trusts | -1,219 | -1,000 | -1,502 |
Loans to affiliated companies, net | 0 | 276 | 107 |
Other | 4 | -2 | -42 |
Net cash used for investing activities | -817 | -732 | -1,037 |
Net change in cash and cash equivalents | 0 | -1 | -4 |
Cash and cash equivalents at beginning of period | 2 | 3 | 7 |
Cash and cash equivalents at end of period | 2 | 2 | 3 |
Cash paid (received) during the year- | |||
Interest (net of amounts capitalized) | 118 | 157 | 174 |
Income taxes (received), net of refunds | ($384) | $23 | $72 |
Organization_Basis_of_Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND BASIS OF PRESENTATION | ||||||||||||||||||||||||
Unless otherwise indicated, defined terms and abbreviations used herein have the meanings set forth in the accompanying Glossary of Terms. | |||||||||||||||||||||||||
FirstEnergy Corp. was organized under the laws of the State of Ohio in 1996. FE’s principal business is the holding, directly or indirectly, of all of the outstanding common stock of its principal subsidiaries: OE, CEI, TE, Penn (a wholly owned subsidiary of OE), JCP&L, ME, PN, FESC, FES and its principal subsidiaries (FG and NG), AE Supply, MP, PE, WP, FET and its principal subsidiaries (ATSI and TrAIL), and AESC. In addition, FE holds all of the outstanding common stock of other direct subsidiaries including: FirstEnergy Properties, Inc., FEV, FENOC, FELHC, Inc., GPU Nuclear, Inc., and AE Ventures, Inc. | |||||||||||||||||||||||||
FirstEnergy follows GAAP and complies with the related regulations, orders, policies and practices prescribed by the SEC, FERC, and, as applicable, the PUCO, the PPUC, the MDPSC, the NYPSC, the WVPSC, the VSCC and the NJBPU. The preparation of financial statements in conformity with GAAP requires management to make periodic estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not necessarily indicative of results of operations for any future period. FE and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. | |||||||||||||||||||||||||
FE and its subsidiaries consolidate all majority-owned subsidiaries over which they exercise control and, when applicable, entities for which they have a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation unless certain regulatory restrictions and rules apply. FE and its subsidiaries consolidate a VIE when it is determined that it is the primary beneficiary (see Note 8, Variable Interest Entities). Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but with respect to which they are not the primary beneficiary and do not exercise control, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and the percentage share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income. These Notes to the Consolidated Financial Statements are combined for FirstEnergy and FES. | |||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, capitalized financing costs on FirstEnergy's Consolidated Statements of Income include $49 million, $28 million and $18 million, respectively, of allowance for equity funds used during construction and $69 million, $75 million and $72 million, respectively, of capitalized interest. | |||||||||||||||||||||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. | |||||||||||||||||||||||||
ACCOUNTING FOR THE EFFECTS OF REGULATION | |||||||||||||||||||||||||
FirstEnergy accounts for the effects of regulation through the application of regulatory accounting to the Utilities, AGC, ATSI, PATH and TrAIL since their rates are established by a third-party regulator with the authority to set rates that bind customers, are cost-based and can be charged to and collected from customers. | |||||||||||||||||||||||||
FirstEnergy records regulatory assets and liabilities that result from the regulated rate-making process that would not be recorded under GAAP for non-regulated entities. These assets and liabilities are amortized in the Consolidated Statements of Income concurrent with the recovery or refund through customer rates. FirstEnergy believes that it is probable that its regulatory assets and liabilities will be recovered and settled, respectively, through future rates. FirstEnergy and the Utilities net their regulatory assets and liabilities based on federal and state jurisdictions. | |||||||||||||||||||||||||
The following table provides information about the composition of net regulatory assets as of December 31, 2014 and December 31, 2013, and the changes during the year ended December 31, 2014: | |||||||||||||||||||||||||
Regulatory Assets by Source | December 31, | December 31, | Increase | ||||||||||||||||||||||
2014 | 2013 | (Decrease) | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Regulatory transition costs | $ | 240 | $ | 266 | $ | (26 | ) | ||||||||||||||||||
Customer receivables for future income taxes | 370 | 518 | (148 | ) | |||||||||||||||||||||
Nuclear decommissioning and spent fuel disposal costs | (305 | ) | (198 | ) | (107 | ) | |||||||||||||||||||
Asset removal costs | (254 | ) | (362 | ) | 108 | ||||||||||||||||||||
Deferred transmission costs | 90 | 112 | (22 | ) | |||||||||||||||||||||
Deferred generation costs | 281 | 346 | (65 | ) | |||||||||||||||||||||
Deferred distribution costs | 182 | 194 | (12 | ) | |||||||||||||||||||||
Contract valuations | 153 | 260 | (107 | ) | |||||||||||||||||||||
Storm-related costs | 465 | 455 | 10 | ||||||||||||||||||||||
Other | 189 | 263 | (74 | ) | |||||||||||||||||||||
Net Regulatory Assets included in the Consolidated Balance Sheet | $ | 1,411 | $ | 1,854 | $ | (443 | ) | ||||||||||||||||||
Regulatory assets that do not earn a current return totaled approximately $488 million and $477 million as of December 31, 2014 and 2013, respectively, primarily related to storm damage costs of which approximately $360 million relates to JCP&L for which the recovery period is subject to current rate and regulatory proceedings (see Note 14, Regulatory Matters). | |||||||||||||||||||||||||
As of December 31, 2014 and December 31, 2013, FirstEnergy had approximately $243 million and $440 million of net regulatory liabilities that are primarily related to asset removal costs and are classified within other noncurrent liabilities on the Consolidated Balance Sheets, as opposed to being included in the net regulatory assets shown above. | |||||||||||||||||||||||||
REVENUES AND RECEIVABLES | |||||||||||||||||||||||||
The Utilities' principal business is providing electric service to customers in Ohio, Pennsylvania, West Virginia, New Jersey and Maryland. FES' principal business is supplying electric power to end-use customers through retail and wholesale arrangements, including affiliated company power sales to meet a portion of the POLR and default service requirements of the Ohio and Pennsylvania Companies and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland. Retail customers are metered on a cycle basis. | |||||||||||||||||||||||||
Electric revenues are recorded based on energy delivered through the end of the calendar month. An estimate of unbilled revenues is calculated to recognize electric service provided from the last meter reading through the end of the month. This estimate includes many factors, among which are historical customer usage, load profiles, estimated weather impacts, customer shopping activity and prices in effect for each class of customer. In each accounting period, FirstEnergy accrues the estimated unbilled amount as revenue and reverses the related prior period estimate. | |||||||||||||||||||||||||
Receivables from customers include retail electric sales and distribution deliveries to residential, commercial and industrial customers for the Utilities, and retail and wholesale sales to customers for FES. There was no material concentration of receivables as of December 31, 2014 and 2013 with respect to any particular segment of FirstEnergy’s customers. Billed and unbilled customer receivables as of December 31, 2014 and 2013 are shown below. | |||||||||||||||||||||||||
Customer Receivables | FirstEnergy | FES | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Billed | $ | 914 | $ | 239 | |||||||||||||||||||||
Unbilled | 640 | 176 | |||||||||||||||||||||||
Total | $ | 1,554 | $ | 415 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Billed | $ | 1,010 | $ | 301 | |||||||||||||||||||||
Unbilled | 710 | 238 | |||||||||||||||||||||||
Total | $ | 1,720 | $ | 539 | |||||||||||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | |||||||||||||||||||||||||
Basic earnings per share of common stock are computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted earnings per share of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised. The following table reconciles basic and diluted earnings per share of common stock: | |||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings per Share of Common Stock | 2014 | 2013 | 2012 | ||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||||
Income from continuing operations | $ | 213 | $ | 375 | $ | 755 | |||||||||||||||||||
Less: Income attributable to noncontrolling interest | — | — | 1 | ||||||||||||||||||||||
Income from continuing operations available to common shareholders | 213 | 375 | 754 | ||||||||||||||||||||||
Discontinued operations (Note 19) | 86 | 17 | 16 | ||||||||||||||||||||||
Earnings available to FirstEnergy Corp. | $ | 299 | $ | 392 | $ | 770 | |||||||||||||||||||
Weighted average number of basic shares outstanding | 420 | 418 | 418 | ||||||||||||||||||||||
Assumed exercise of dilutive stock options and awards(1) | 1 | 1 | 1 | ||||||||||||||||||||||
Weighted average number of diluted shares outstanding | 421 | 419 | 419 | ||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||
Continuing operations | $ | 0.51 | $ | 0.9 | $ | 1.81 | |||||||||||||||||||
Discontinued operations (Note 19) | 0.2 | 0.04 | 0.04 | ||||||||||||||||||||||
Earnings per basic share | $ | 0.71 | $ | 0.94 | $ | 1.85 | |||||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||
Continuing operations | $ | 0.51 | $ | 0.9 | $ | 1.8 | |||||||||||||||||||
Discontinued operations (Note 19) | 0.2 | 0.04 | 0.04 | ||||||||||||||||||||||
Earnings per diluted share | $ | 0.71 | $ | 0.94 | $ | 1.84 | |||||||||||||||||||
-1 | For the years ended December 31, 2014 and 2013, approximately two million shares were excluded from the calculation of diluted shares outstanding, as their inclusion would be antidilutive. The number of potentially dilutive securities not included in the calculation of diluted shares outstanding due to their antidilutive effect was not significant for the year ending December 31, 2012. | ||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||||||||||||
Property, plant and equipment reflects original cost (net of any impairments recognized), including payroll and related costs such as taxes, employee benefits, administrative and general costs, and interest costs incurred to place the assets in service. The costs of normal maintenance, repairs and minor replacements are expensed as incurred. FirstEnergy recognizes liabilities for planned major maintenance projects as they are incurred. The cost of nuclear fuel ($2 billion included in net plant) is capitalized within the CES segment's Property, plant and equipment and charged to fuel expense using the specific identification method. Net plant in service balances by segment as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Property, Plant and Equipment | In Service | Accum. Depr. | Net Plant | In Service | Accum. Depr. | Net Plant | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Regulated Distribution | $ | 23,973 | $ | (6,759 | ) | $ | 17,214 | $ | 23,098 | $ | (6,514 | ) | $ | 16,584 | |||||||||||
Regulated Transmission | 6,634 | (1,595 | ) | 5,039 | 5,564 | (1,511 | ) | 4,053 | |||||||||||||||||
Competitive Energy Services(1) | 16,442 | (5,598 | ) | 10,844 | 15,206 | (5,088 | ) | 10,118 | |||||||||||||||||
Corporate/Other | 435 | (198 | ) | 237 | 360 | (167 | ) | 193 | |||||||||||||||||
Total | $ | 47,484 | $ | (14,150 | ) | $ | 33,334 | $ | 44,228 | $ | (13,280 | ) | $ | 30,948 | |||||||||||
(1) Primarily consists of generating assets. | |||||||||||||||||||||||||
The major classes of property, plant and equipment are largely consistent with the segment disclosures above, with the exception of Regulated Distribution which has approximately $2 billion of regulated generation net plant in service. | |||||||||||||||||||||||||
FirstEnergy provides for depreciation on a straight-line basis at various rates over the estimated lives of property included in plant in service. The respective annual composite rates for FirstEnergy's and FES' electric plant in 2014, 2013 and 2012 are shown in the following table: | |||||||||||||||||||||||||
Annual Composite Depreciation Rate | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
FirstEnergy | 2.5 | % | 2.6 | % | 2.5 | % | |||||||||||||||||||
FES | 3.1 | % | 3.1 | % | 3.1 | % | |||||||||||||||||||
Jointly Owned Plants | |||||||||||||||||||||||||
FE, through its subsidiary, AGC, owns an undivided 40% interest (1,200 MWs) in a 3,003 MW pumped storage, hydroelectric station in Bath County, Virginia, operated by the 60% owner, Virginia Electric and Power Company, a non-affiliated utility. Net Property, plant and equipment includes $686 million representing AGC's share in this facility as of December 31, 2014. AGC is obligated to pay its share of the costs of this jointly-owned facility in the same proportion as its ownership interest using its own financing. AGC's share of direct expenses of the joint plant is included in FE's operating expenses on the Consolidated Statement of Income. | |||||||||||||||||||||||||
Asset Retirement Obligations | |||||||||||||||||||||||||
FE recognizes an ARO for the future decommissioning of its nuclear power plants and future remediation of other environmental liabilities associated with all of its long-lived assets. The ARO liability represents an estimate of the fair value of FE's current obligation related to nuclear decommissioning and the retirement or remediation of environmental liabilities of other assets. A fair value measurement inherently involves uncertainty in the amount and timing of settlement of the liability. FE uses an expected cash flow approach to measure the fair value of the nuclear decommissioning and environmental remediation ARO. This approach applies probability weighting to discounted future cash flow scenarios that reflect a range of possible outcomes. The scenarios consider settlement of the ARO at the expiration of the nuclear power plant's current license, settlement based on an extended license term and expected remediation dates. The fair value of an ARO is recognized in the period in which it is incurred. The associated asset retirement costs are capitalized as part of the carrying value of the long-lived asset and are depreciated over the life of the related asset. | |||||||||||||||||||||||||
Conditional retirement obligations associated with tangible long-lived assets are recognized at fair value in the period in which they are incurred if a reasonable estimate can be made, even though there may be uncertainty about timing or method of settlement. When settlement is conditional on a future event occurring, it is reflected in the measurement of the liability, not the timing of the liability recognition. | |||||||||||||||||||||||||
AROs as of December 31, 2014, are described further in Note 13, Asset Retirement Obligations. | |||||||||||||||||||||||||
ASSET IMPAIRMENTS | |||||||||||||||||||||||||
Long-lived Assets | |||||||||||||||||||||||||
FirstEnergy reviews long-lived assets, including regulatory assets, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The recoverability of a long-lived asset is measured by comparing its carrying value to the sum of undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is greater than the undiscounted cash flows, an impairment exists and a loss is recognized for the amount by which the carrying value of the long-lived asset exceeds its estimated fair value. FirstEnergy utilizes the income approach, based upon discounted cash flows to estimate fair value. | |||||||||||||||||||||||||
On October 9, 2013, MP sold its approximate 8% share of Pleasants at its fair market value of $73 million to AE Supply, and AE Supply sold its approximate 80% share of Harrison to MP at its book value of $1.2 billion. The transaction resulted in AE Supply receiving net consideration of $1.1 billion and MP's assumption of a $73.5 million pollution control note. In connection with the closing, in the fourth quarter of 2013, MP recorded a pre-tax impairment charge of approximately $322 million to reduce the net book value of the Harrison Power Station to the amount that was permitted to be included in jurisdictional rate base. Additionally, MP recognized a regulatory liability of approximately $23 million in the fourth quarter of 2013 representing refunds to customers associated with the excess purchase price received by MP above the net book value of MP's minority interest in the Pleasants Power Station. The impairment charge is included within the results of the Regulated Distribution segment. | |||||||||||||||||||||||||
On July 8, 2013, officers of FirstEnergy and AE Supply committed to deactivating the Hatfield's Ferry, generating Units 1-3, and Mitchell, generating units 2-3. As a result of this decision, in the second quarter of 2013, FirstEnergy recorded a pre-tax impairment of approximately $473 million to continuing operations, which also includes pre-tax impairments of $13 million related to excessive inventory at these facilities. The impairment charge is included within the results of the CES segment. On October 9, 2013, Hatfield's Ferry Units 1-3 and Mitchell Units 2-3 were deactivated. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
In a business combination, the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. FirstEnergy evaluates goodwill for impairment annually on July 31 and more frequently if indicators of impairment arise. | |||||||||||||||||||||||||
FirstEnergy's reporting units are consistent with its reportable segments and consist of Regulated Distribution, Regulated Transmission, and CES. The following table presents goodwill by reporting unit: | |||||||||||||||||||||||||
Goodwill | Regulated Distribution | Regulated Transmission | Competitive Energy Services | Consolidated | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 5,092 | $ | 526 | $ | 800 | $ | 6,418 | |||||||||||||||||
There were no changes in goodwill for any reporting unit during 2014. As of December 31, 2014 and 2013, total goodwill recognized by FES was $23 million. Neither FirstEnergy nor FES has accumulated impairment charges as of December 31, 2014. | |||||||||||||||||||||||||
Annual impairment testing is conducted as of July 31 of each year and for 2014, 2013 and 2012, the analysis indicated no impairment of goodwill. FirstEnergy performed a quantitative assessment for the Regulated Distribution, Regulated Transmission and CES reporting units as of July 31, 2014. The fair values for each of the reporting units were calculated using a discounted cash flow analysis and indicated no impairment of goodwill. | |||||||||||||||||||||||||
The fair value of the CES reporting unit exceeded its carrying value by approximately 10%, impacted by near term weak economic conditions and low energy and capacity prices. Key assumptions incorporated into the CES discounted cash flow analysis requiring significant management judgment included: discount rates, future energy and capacity pricing, projected operating income, capital expenditures, including the impact of pending carbon pollution and other environmental regulation, and terminal multiples. The July 31, 2014 assessment for this reporting unit included a discount rate of 8.5% and a terminal multiple of 7.0x earnings before, interest, taxes, depreciation, and amortization. Continued weak economic conditions, lower than forecasted power and capacity prices, and revised environmental requirements could have a negative impact on future goodwill assessments. | |||||||||||||||||||||||||
Key assumptions incorporated in the Regulated Distribution and Regulated Transmission discounted cash flow analysis requiring significant management judgment included: discount rates, growth rates, projected operating income, changes in working capital, projected capital expenditures, projected funding of pension plans, expected results of future rate proceedings, and terminal multiples. | |||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||
At the end of each reporting period, FirstEnergy evaluates its investments for OTTI. Investments classified as AFS securities are evaluated to determine whether a decline in fair value below the cost basis is other than temporary. FirstEnergy first considers its intent and ability to hold an equity security until recovery and then considers, among other factors, the duration and the extent to which the security's fair value has been less than its cost and the near-term financial prospects of the security issuer when evaluating an investment for impairment. For debt securities, FirstEnergy considers its intent to hold the securities, the likelihood that it will be required to sell the securities before recovery of its cost basis and the likelihood of recovery of the securities' entire amortized cost basis. If the decline in fair value is determined to be other than temporary, the cost basis of the securities is written down to fair value. | |||||||||||||||||||||||||
Unrealized gains and losses on AFS securities are recognized in AOCI. However, unrealized losses held in the NDTs of FES, OE and TE are recognized in earnings since the trust arrangements, as they are currently defined, do not meet the required ability and intent to hold criteria in consideration of OTTI. In 2014, 2013 and 2012, FirstEnergy recognized $37 million, $90 million and $16 million, respectively, of OTTI. During the same periods, FES recognized OTTI of $33 million, $79 million and $14 million, respectively. The fair values of FirstEnergy’s investments are disclosed in Note 9, Fair Value Measurements. | |||||||||||||||||||||||||
NEW ACCOUNTING PRONOUNCEMENTS | |||||||||||||||||||||||||
In May 2014, the FASB issued Revenue from Contracts with Customers, requiring entities to recognize revenue by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the accounting for costs to obtain or fulfill a contract with a customer is specified and disclosure requirements for revenue recognition are expanded. This standard is effective for fiscal years beginning after December 15, 2016, with no early adoption permitted, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. FirstEnergy is currently evaluating the impact on its financial statements of adopting this standard. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||
The changes in AOCI, net of tax, for the years ended December 31, 2014, 2013 and 2012 for FirstEnergy and FES are shown in the following tables: | |||||||||||||||||
FirstEnergy | |||||||||||||||||
Gains & Losses on Cash Flow Hedges | Unrealized Gains on AFS Securities | Defined Benefit Pension & OPEB Plans | Total | ||||||||||||||
(In millions) | |||||||||||||||||
AOCI Balance, January 1, 2012 | $ | (39 | ) | $ | 19 | $ | 446 | $ | 426 | ||||||||
Other comprehensive income before reclassifications (1) | — | 41 | 79 | 120 | |||||||||||||
Amounts reclassified from AOCI | 1 | (45 | ) | (117 | ) | (161 | ) | ||||||||||
Net other comprehensive income (loss) | 1 | (4 | ) | (38 | ) | (41 | ) | ||||||||||
AOCI Balance, December 31, 2012 | $ | (38 | ) | $ | 15 | $ | 408 | $ | 385 | ||||||||
Other comprehensive income before reclassifications (2) | — | 29 | 23 | 52 | |||||||||||||
Amounts reclassified from AOCI | 2 | (35 | ) | (120 | ) | (153 | ) | ||||||||||
Net other comprehensive income (loss) | 2 | (6 | ) | (97 | ) | (101 | ) | ||||||||||
AOCI Balance, December 31, 2013 | $ | (36 | ) | $ | 9 | $ | 311 | $ | 284 | ||||||||
Other comprehensive income before reclassifications (3) | — | 55 | 50 | 105 | |||||||||||||
Amounts reclassified from AOCI | (1 | ) | (39 | ) | (103 | ) | (143 | ) | |||||||||
Net other comprehensive income (loss) | (1 | ) | 16 | (53 | ) | (38 | ) | ||||||||||
AOCI Balance, December 31, 2014 | $ | (37 | ) | $ | 25 | $ | 258 | $ | 246 | ||||||||
(1) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $25 million and $(3 million), respectively. | |||||||||||||||||
(2) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $17 million and $12 million, respectively. | |||||||||||||||||
(3) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $34 million and $42 million, respectively. | |||||||||||||||||
FES | |||||||||||||||||
Gains & Losses on Cash Flow Hedges | Unrealized Gains on AFS Securities | Defined Benefit Pension & OPEB Plans | Total | ||||||||||||||
(In millions) | |||||||||||||||||
AOCI Balance, January 1, 2012 | $ | 8 | $ | 16 | $ | 52 | $ | 76 | |||||||||
Other comprehensive income before reclassifications (1) | — | 38 | 16 | 54 | |||||||||||||
Amounts reclassified from AOCI | (5 | ) | (41 | ) | (12 | ) | (58 | ) | |||||||||
Net other comprehensive income (loss) | (5 | ) | (3 | ) | 4 | (4 | ) | ||||||||||
AOCI Balance, December 31, 2012 | $ | 3 | $ | 13 | $ | 56 | $ | 72 | |||||||||
Other comprehensive income before reclassifications (2) | — | 26 | 3 | 29 | |||||||||||||
Amounts reclassified from AOCI | (4 | ) | (31 | ) | (12 | ) | (47 | ) | |||||||||
Net other comprehensive income (loss) | (4 | ) | (5 | ) | (9 | ) | (18 | ) | |||||||||
AOCI Balance, December 31, 2013 | $ | (1 | ) | $ | 8 | $ | 47 | $ | 54 | ||||||||
Other comprehensive income before reclassifications (3) | — | 50 | 8 | 58 | |||||||||||||
Amounts reclassified from AOCI | (6 | ) | (37 | ) | (12 | ) | (55 | ) | |||||||||
Net other comprehensive loss | (6 | ) | 13 | (4 | ) | 3 | |||||||||||
AOCI Balance, December 31, 2014 | $ | (7 | ) | $ | 21 | $ | 43 | $ | 57 | ||||||||
(1) Gains & Losses on Cash Flow Hedges, Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $1 million, $22 million and $9 million, respectively. | |||||||||||||||||
(2) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $15 million and $2 million, respectively. | |||||||||||||||||
(3) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $30 million and $5 million, respectively. | |||||||||||||||||
The following amounts were reclassified from AOCI in the years ended December 31, 2014, 2013 and 2012 for FirstEnergy and FES are shown in the following tables: | |||||||||||||||||
FirstEnergy | Year Ended December 31 | Affected Line Item in Consolidated Statements of Income | |||||||||||||||
Reclassifications from AOCI (2) | 2014 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Gains & losses on cash flow hedges | |||||||||||||||||
Commodity contracts | $ | (10 | ) | $ | (8 | ) | $ | (9 | ) | Other operating expenses | |||||||
Long-term debt | 8 | 11 | 10 | Interest expense | |||||||||||||
(2 | ) | 3 | 1 | Total before taxes | |||||||||||||
1 | (1 | ) | — | Income taxes (benefits) | |||||||||||||
$ | (1 | ) | $ | 2 | $ | 1 | Net of tax | ||||||||||
Unrealized gains on AFS securities | |||||||||||||||||
Realized gains on sales of securities | $ | (63 | ) | $ | (56 | ) | $ | (72 | ) | Investment income | |||||||
24 | 21 | 27 | Income taxes (benefits) | ||||||||||||||
$ | (39 | ) | $ | (35 | ) | $ | (45 | ) | Net of tax | ||||||||
Defined benefit pension and OPEB plans | |||||||||||||||||
Prior-service costs | $ | (168 | ) | $ | (195 | ) | $ | (191 | ) | (1) | |||||||
65 | 75 | 74 | Income taxes (benefits) | ||||||||||||||
$ | (103 | ) | $ | (120 | ) | $ | (117 | ) | Net of tax | ||||||||
(1) These AOCI components are included in the computation of net periodic pension cost. See Note 3, Pension and Other Postemployment Benefits for additional details. | |||||||||||||||||
(2) Parenthesis represent credits to the Consolidated Statements of Income from AOCI. | |||||||||||||||||
FES | Year Ended December 31 | Affected Line Item in Consolidated Statements of Income | |||||||||||||||
Reclassifications from AOCI (2) | 2014 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Gains & losses on cash flow hedges | |||||||||||||||||
Commodity contracts | $ | (10 | ) | $ | (8 | ) | $ | (9 | ) | Other operating expenses | |||||||
Long-term debt | — | 2 | — | Interest expense - other | |||||||||||||
(10 | ) | (6 | ) | (9 | ) | Total before taxes | |||||||||||
4 | 2 | 4 | Income taxes (benefits) | ||||||||||||||
$ | (6 | ) | $ | (4 | ) | $ | (5 | ) | Net of tax | ||||||||
Unrealized gains on AFS securities | |||||||||||||||||
Realized gains on sales of securities | $ | (59 | ) | $ | (49 | ) | $ | (65 | ) | Investment income | |||||||
22 | 18 | 24 | Income taxes (benefits) | ||||||||||||||
$ | (37 | ) | $ | (31 | ) | $ | (41 | ) | Net of tax | ||||||||
Defined benefit pension and OPEB plans | |||||||||||||||||
Prior-service costs | $ | (19 | ) | $ | (20 | ) | $ | (20 | ) | (1) | |||||||
7 | 8 | 8 | Income taxes (benefits) | ||||||||||||||
$ | (12 | ) | $ | (12 | ) | $ | (12 | ) | Net of tax | ||||||||
(1) These AOCI components are included in the computation of net periodic pension cost. See Note 3, Pension and Other Postemployment Benefits for additional details. | |||||||||||||||||
(2) Parenthesis represent credits to the Consolidated Statements of Income from AOCI. |
Pension_and_Other_Postemployme
Pension and Other Postemployment Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS | PENSION AND OTHER POSTEMPLOYMENT BENEFITS | ||||||||||||||||||||||||
FirstEnergy provides noncontributory qualified defined benefit pension plans that cover substantially all of its employees and non-qualified pension plans that cover certain employees. The plans provide defined benefits based on years of service and compensation levels. In addition, FirstEnergy provides a minimum amount of noncontributory life insurance to retired employees in addition to optional contributory insurance. Health care benefits, which include certain employee contributions, deductibles and co-payments, are also available upon retirement to certain employees, their dependents and, under certain circumstances, their survivors. FirstEnergy recognizes the expected cost of providing pension and OPEB to employees and their beneficiaries and covered dependents from the time employees are hired until they become eligible to receive those benefits. FirstEnergy also has obligations to former or inactive employees after employment, but before retirement, for disability-related benefits. On August 25, 2014, the qualified pension plan was amended authorizing a voluntary cashout window program for certain eligible terminated participants with vested benefits. Eligible terminated participants were able to elect an immediate lump sum cash payment of their vested benefits. Additionally, annuity options were offered and could be elected instead of the lump sum cash payment. The election period was September 15, 2014 to October 31, 2014. Payment of benefits for participants that elected an immediate lump sum cash payment or an annuity commenced on December 1, 2014 which resulted in a $40 million reduction to the underfunded status of the pension plan. Additionally, during 2014, certain unions ratified their labor agreements that ended subsidized retiree health care resulting in a reduction to the OPEB benefit obligation by approximately $97 million. | |||||||||||||||||||||||||
FirstEnergy recognizes as a pension and OPEB mark-to-market adjustment the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pension and OPEB expense, primarily service costs, interest on obligations, assumed return on assets and prior service costs, are recorded on a monthly basis. The pension and OPEB mark-to-market adjustment for the years ended December 31, 2014, 2013, and 2012 were $1,243 million ($835 million net of amounts capitalized), $(396) million ($(256) million net of amounts capitalized), and $875 million ($609 million net of amounts capitalized), respectively. In 2014, the pension and OPEB mark-to-market adjustment primarily reflects a 75 basis point decline in the discount rate, revisions to mortality assumptions extending the expected life in key demographics as further described below, lower than expected asset returns, and changes in other demographic assumptions. | |||||||||||||||||||||||||
FirstEnergy’s pension and OPEB funding policy is based on actuarial computations using the projected unit credit method. During the year ended December 31, 2014, FirstEnergy did not make any contributions to its qualified pension plan. FirstEnergy expects to contribute $143 million to its qualified pension plan in 2015. Pension and OPEB costs are affected by employee demographics (including age, compensation levels and employment periods), the level of contributions made to the plans and earnings on plan assets. Pension and OPEB costs may also be affected by changes in key assumptions, including anticipated rates of return on plan assets, the discount rates and health care trend rates used in determining the projected benefit obligations for pension and OPEB costs. FirstEnergy uses a December 31 measurement date for its pension and OPEB plans. The fair value of the plan assets represents the actual market value as of the measurement date. | |||||||||||||||||||||||||
FirstEnergy’s assumed rate of return on pension plan assets considers historical market returns and economic forecasts for the types of investments held by the pension trusts. In 2014, FirstEnergy’s qualified pension and OPEB plan assets earned $387 million or 6.2% compared to losses of $(22) million, or (0.3)% in 2013 and assumed a 7.75% rate of return for both years on plan assets which generated $496 million and $535 million of expected returns on plan assets, respectively. The expected return on pension and OPEB assets is based on the trusts’ asset allocation targets and the historical performance of risk-based and fixed income securities. The gains or losses generated as a result of the difference between expected and actual returns on plan assets will increase or decrease future net periodic pension and OPEB cost as the difference is recognized annually in the fourth quarter of each fiscal year or whenever a plan is determined to qualify for remeasurement. | |||||||||||||||||||||||||
During 2014, the Society of Actuaries published new mortality tables and improvement scales reflecting improved life expectancies and an expectation that the trend will continue. An analysis of FirstEnergy pension and OPEB plan mortality data indicated the use of the RP2000 mortality table with projection scale BB2D was most appropriate. As such, the RP2000 mortality table with projection scale BB2D was utilized to determine the 2014 benefit cost and obligation as of December 31, 2014 for the FirstEnergy pension and OPEB plans. The impact of using the RP2000 mortality table with projection scale BB2D resulted in an increase in the projected benefit obligation of $373 million and $21 million for the pension and OPEB plans, respectively, and was included in the 2014 pension and OPEB mark-to-market adjustment. | |||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
Obligations and Funded Status | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation as of January 1 | $ | 8,263 | $ | 8,975 | $ | 879 | $ | 1,076 | |||||||||||||||||
Service cost | 167 | 197 | 9 | 13 | |||||||||||||||||||||
Interest cost | 402 | 372 | 39 | 37 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 16 | 15 | |||||||||||||||||||||
Plan amendments | 5 | 2 | (97 | ) | (37 | ) | |||||||||||||||||||
Medicare retiree drug subsidy | — | — | — | 5 | |||||||||||||||||||||
Actuarial (gain) loss | 1,123 | (846 | ) | 13 | (107 | ) | |||||||||||||||||||
Benefits paid | (711 | ) | (437 | ) | (102 | ) | (123 | ) | |||||||||||||||||
Benefit obligation as of December 31 | $ | 9,249 | $ | 8,263 | $ | 757 | $ | 879 | |||||||||||||||||
Change in fair value of plan assets: | |||||||||||||||||||||||||
Fair value of plan assets as of January 1 | $ | 6,171 | $ | 6,671 | $ | 495 | $ | 508 | |||||||||||||||||
Actual return on plan assets | 349 | (77 | ) | 38 | 56 | ||||||||||||||||||||
Company contributions | 15 | 14 | 17 | 39 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 16 | 15 | |||||||||||||||||||||
Benefits paid | (711 | ) | (437 | ) | (102 | ) | (123 | ) | |||||||||||||||||
Fair value of plan assets as of December 31 | $ | 5,824 | $ | 6,171 | $ | 464 | $ | 495 | |||||||||||||||||
Funded Status: | |||||||||||||||||||||||||
Qualified plan | $ | (3,064 | ) | $ | (1,782 | ) | |||||||||||||||||||
Non-qualified plans | (361 | ) | (310 | ) | |||||||||||||||||||||
Funded Status | $ | (3,425 | ) | $ | (2,092 | ) | $ | (293 | ) | $ | (384 | ) | |||||||||||||
Accumulated benefit obligation | $ | 8,744 | $ | 7,800 | $ | — | $ | — | |||||||||||||||||
Amounts Recognized on the Balance Sheet: | |||||||||||||||||||||||||
Current liabilities | $ | (17 | ) | $ | (15 | ) | $ | — | $ | — | |||||||||||||||
Noncurrent liabilities | (3,408 | ) | (2,077 | ) | (293 | ) | (384 | ) | |||||||||||||||||
Net liability as of December 31 | $ | (3,425 | ) | $ | (2,092 | ) | $ | (293 | ) | $ | (384 | ) | |||||||||||||
Amounts Recognized in AOCI: | |||||||||||||||||||||||||
Prior service cost (credit) | $ | 45 | $ | 48 | $ | (479 | ) | $ | (558 | ) | |||||||||||||||
Assumptions Used to Determine Benefit Obligations | |||||||||||||||||||||||||
(as of December 31) | |||||||||||||||||||||||||
Discount rate | 4.25 | % | 5 | % | 4 | % | 4.75 | % | |||||||||||||||||
Rate of compensation increase | 4.2 | % | 4.2 | % | N/A | N/A | |||||||||||||||||||
Assumed Health Care Cost Trend Rates | |||||||||||||||||||||||||
(as of December 31) | |||||||||||||||||||||||||
Health care cost trend rate assumed (pre/post-Medicare) | N/A | N/A | 7.0-7.5% | 7.25-7.75% | |||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | N/A | N/A | 4.5 | % | 5 | % | |||||||||||||||||||
Year that the rate reaches the ultimate trend rate (pre/post-Medicare) | N/A | N/A | 2026 | 2020 | |||||||||||||||||||||
Allocation of Plan Assets (as of December 31) | |||||||||||||||||||||||||
Equity securities | 36 | % | 18 | % | 49 | % | 47 | % | |||||||||||||||||
Bonds | 33 | % | 40 | % | 40 | % | 40 | % | |||||||||||||||||
Absolute return strategies | 14 | % | 23 | % | 1 | % | 3 | % | |||||||||||||||||
Real estate | 7 | % | 6 | % | 1 | % | 1 | % | |||||||||||||||||
Derivatives | 1 | % | — | % | — | % | — | % | |||||||||||||||||
Cash and short-term securities | 9 | % | 13 | % | 9 | % | 9 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
The estimated 2015 amortization of pension and OPEB prior service costs (credits) from AOCI into net periodic pension and OPEB costs (credits) is approximately $9 million and $(134) million, respectively. | |||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
Components of Net Periodic Benefit Costs | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Service cost | $ | 167 | $ | 197 | $ | 161 | $ | 9 | $ | 13 | $ | 12 | |||||||||||||
Interest cost | 402 | 372 | 389 | 39 | 37 | 47 | |||||||||||||||||||
Expected return on plan assets | (462 | ) | (501 | ) | (486 | ) | (34 | ) | (34 | ) | (37 | ) | |||||||||||||
Amortization of prior service cost (credit) | 8 | 12 | 12 | (176 | ) | (207 | ) | (203 | ) | ||||||||||||||||
Pension & OPEB mark-to-market adjustment | 1,235 | (267 | ) | 735 | 8 | (129 | ) | 140 | |||||||||||||||||
Net periodic cost | $ | 1,350 | $ | (187 | ) | $ | 811 | $ | (154 | ) | $ | (320 | ) | $ | (41 | ) | |||||||||
Assumptions Used to Determine Net Periodic Benefit Cost | Pension | OPEB | |||||||||||||||||||||||
for Years Ended December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted-average discount rate | 5 | % | 4.25 | % | 5 | % | 4.75 | % | 4 | % | 4.75 | % | |||||||||||||
Expected long-term return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | 7.75 | % | 7.75 | % | 7.75 | % | |||||||||||||
Rate of compensation increase | 4.2 | % | 4.7 | % | 5.2 | % | N/A | N/A | N/A | ||||||||||||||||
In selecting an assumed discount rate, FirstEnergy considers currently available rates of return on high-quality fixed income investments expected to be available during the period to maturity of the pension and OPEB obligations. The assumed rates of return on plan assets consider historical market returns and economic forecasts for the types of investments held by FirstEnergy’s pension trusts. The long-term rate of return is developed considering the portfolio’s asset allocation strategy. | |||||||||||||||||||||||||
The following tables set forth pension financial assets that are accounted for at fair value by level within the fair value hierarchy. See Note 9, Fair Value Measurements, for a description of each level of the fair value hierarchy. There were no significant transfers between levels during 2014 and 2013. | |||||||||||||||||||||||||
December 31, 2014 | Asset Allocation | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Cash and short-term securities | $ | — | $ | 517 | $ | — | $ | 517 | 9 | % | |||||||||||||||
Equity investments | |||||||||||||||||||||||||
Domestic | 1,266 | 8 | — | 1,274 | 22 | % | |||||||||||||||||||
International | 355 | 414 | — | 769 | 14 | % | |||||||||||||||||||
Fixed income | |||||||||||||||||||||||||
Government bonds | — | 159 | — | 159 | 3 | % | |||||||||||||||||||
Corporate bonds | — | 1,386 | — | 1,386 | 24 | % | |||||||||||||||||||
High yield debt | — | 300 | — | 300 | 5 | % | |||||||||||||||||||
Mortgage-backed securities (non-government) | — | 37 | — | 37 | 1 | % | |||||||||||||||||||
Alternatives | |||||||||||||||||||||||||
Hedge funds (Absolute return) | — | 809 | — | 809 | 14 | % | |||||||||||||||||||
Derivatives | — | 35 | — | 35 | 1 | % | |||||||||||||||||||
Private equity funds | — | — | 25 | 25 | — | % | |||||||||||||||||||
Real estate funds | — | — | 421 | 421 | 7 | % | |||||||||||||||||||
Total (1) | $ | 1,621 | $ | 3,665 | $ | 446 | $ | 5,732 | 100 | % | |||||||||||||||
(1) | Excludes $92 million as of December 31, 2014 of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | ||||||||||||||||||||||||
December 31, 2013 | Asset Allocation | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Cash and short-term securities | $ | — | $ | 782 | $ | — | $ | 782 | 13 | % | |||||||||||||||
Equity investments | |||||||||||||||||||||||||
Domestic | 701 | 3 | — | 704 | 11 | % | |||||||||||||||||||
International | 304 | 118 | — | 422 | 7 | % | |||||||||||||||||||
Fixed income | |||||||||||||||||||||||||
Government bonds | — | 314 | — | 314 | 5 | % | |||||||||||||||||||
Corporate bonds | — | 2,128 | — | 2,128 | 34 | % | |||||||||||||||||||
Mortgage-backed securities (non-government) | — | 87 | — | 87 | 1 | % | |||||||||||||||||||
Alternatives | |||||||||||||||||||||||||
Hedge funds (Absolute return) | — | 1,395 | — | 1,395 | 23 | % | |||||||||||||||||||
Derivatives | — | 14 | — | 14 | — | % | |||||||||||||||||||
Private equity funds | — | — | 27 | 27 | — | % | |||||||||||||||||||
Real estate funds | — | — | 385 | 385 | 6 | % | |||||||||||||||||||
Total (1) | $ | 1,005 | $ | 4,841 | $ | 412 | $ | 6,258 | 100 | % | |||||||||||||||
-1 | Excludes $(87) million as of December 31, 2013 of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | ||||||||||||||||||||||||
The following table provides a reconciliation of changes in the fair value of pension investments classified as Level 3 in the fair value hierarchy during 2014 and 2013: | |||||||||||||||||||||||||
Private Equity Funds | Real Estate Funds | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 33 | $ | 357 | |||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Unrealized gains | 1 | 17 | |||||||||||||||||||||||
Realized gains | 5 | 13 | |||||||||||||||||||||||
Transfers out | (12 | ) | (2 | ) | |||||||||||||||||||||
Balance as of December 31, 2013 | $ | 27 | $ | 385 | |||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Unrealized gains (losses) | (2 | ) | 17 | ||||||||||||||||||||||
Realized gains | 1 | 14 | |||||||||||||||||||||||
Transfers in (out) | (1 | ) | 5 | ||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 25 | $ | 421 | |||||||||||||||||||||
As of December 31, 2014 and 2013, the OPEB trust investments measured at fair value were as follows: | |||||||||||||||||||||||||
December 31, 2014 | Asset Allocation | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Cash and short-term securities | $ | — | $ | 41 | $ | — | $ | 41 | 9 | % | |||||||||||||||
Equity investment | |||||||||||||||||||||||||
Domestic | 230 | — | — | 230 | 48 | % | |||||||||||||||||||
International | 3 | 3 | — | 6 | 1 | % | |||||||||||||||||||
Fixed income | |||||||||||||||||||||||||
U.S. treasuries | — | 41 | — | 41 | 9 | % | |||||||||||||||||||
Government bonds | — | 110 | — | 110 | 23 | % | |||||||||||||||||||
Corporate bonds | — | 32 | — | 32 | 7 | % | |||||||||||||||||||
High yield debt | — | 2 | — | 2 | — | % | |||||||||||||||||||
Mortgage-backed securities (non-government) | — | 3 | — | 3 | 1 | % | |||||||||||||||||||
Alternatives | |||||||||||||||||||||||||
Hedge funds | — | 5 | — | 5 | 1 | % | |||||||||||||||||||
Real estate funds | — | — | 3 | 3 | 1 | % | |||||||||||||||||||
Total (1) | $ | 233 | $ | 237 | $ | 3 | $ | 473 | 100 | % | |||||||||||||||
(1) | Excludes $(9) million as of December 31, 2014 of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | ||||||||||||||||||||||||
December 31, 2013 | Asset Allocation | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Cash and short-term securities | $ | — | $ | 47 | $ | — | $ | 47 | 9 | % | |||||||||||||||
Equity investment | |||||||||||||||||||||||||
Domestic | 227 | — | — | 227 | 45 | % | |||||||||||||||||||
International | 4 | 2 | — | 6 | 1 | % | |||||||||||||||||||
Mutual funds | 5 | — | — | 5 | 1 | % | |||||||||||||||||||
Fixed income | |||||||||||||||||||||||||
U.S. treasuries | — | 44 | — | 44 | 9 | % | |||||||||||||||||||
Government bonds | — | 91 | — | 91 | 18 | % | |||||||||||||||||||
Corporate bonds | — | 59 | — | 59 | 12 | % | |||||||||||||||||||
Mortgage-backed securities (non-government) | — | 3 | — | 3 | 1 | % | |||||||||||||||||||
Alternatives | |||||||||||||||||||||||||
Hedge funds | — | 17 | — | 17 | 3 | % | |||||||||||||||||||
Real estate funds | — | — | 5 | 5 | 1 | % | |||||||||||||||||||
Total (1) | $ | 236 | $ | 263 | $ | 5 | $ | 504 | 100 | % | |||||||||||||||
-1 | Excludes $(9) million as of December 31, 2013, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | ||||||||||||||||||||||||
The following table provides a reconciliation of changes in the fair value of OPEB trust investments classified as Level 3 in the fair value hierarchy during 2014 and 2013: | |||||||||||||||||||||||||
Real Estate Funds | |||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 5 | |||||||||||||||||||||||
Balance as of December 31, 2013 | 5 | ||||||||||||||||||||||||
Transfers out | (2 | ) | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 3 | |||||||||||||||||||||||
FirstEnergy follows a total return investment approach using a mix of equities, fixed income and other available investments while taking into account the pension plan liabilities to optimize the long-term return on plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed-income investments. Equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value, and small and large capitalization funds. Other assets such as real estate and private equity are used to enhance long-term returns while improving portfolio diversification. Derivatives may be used to gain market exposure in an efficient and timely manner; however, derivatives are not used to leverage the portfolio beyond the market value of the underlying investments. Investment risk is measured and monitored on a continuing basis through periodic investment portfolio reviews, annual liability measurements and periodic asset/liability studies. | |||||||||||||||||||||||||
FirstEnergy’s target asset allocations for its pension and OPEB trust portfolios for 2014 and 2013 are shown in the following table: | |||||||||||||||||||||||||
Target Asset Allocations | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Equities | 42 | % | 26 | % | |||||||||||||||||||||
Fixed income | 32 | % | 40 | % | |||||||||||||||||||||
Absolute return strategies | 14 | % | 22 | % | |||||||||||||||||||||
Real estate | 5 | % | 5 | % | |||||||||||||||||||||
Alternative investments | 1 | % | 1 | % | |||||||||||||||||||||
Cash | 6 | % | 6 | % | |||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||
1-Percentage-Point Increase | 1-Percentage-Point Decrease | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Effect on total of service and interest cost | $ | 2 | $ | (1 | ) | ||||||||||||||||||||
Effect on accumulated benefit obligation | $ | 23 | $ | (22 | ) | ||||||||||||||||||||
Taking into account estimated employee future service, FirstEnergy expects to make the following benefit payments from plan assets and other payments, net of participant contributions: | |||||||||||||||||||||||||
OPEB | |||||||||||||||||||||||||
Pension | Benefit Payments | Subsidy Receipts | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
2015 | $ | 467 | $ | 59 | $ | (3 | ) | ||||||||||||||||||
2016 | 476 | 59 | (3 | ) | |||||||||||||||||||||
2017 | 491 | 58 | (3 | ) | |||||||||||||||||||||
2018 | 513 | 56 | (3 | ) | |||||||||||||||||||||
2019 | 529 | 55 | (3 | ) | |||||||||||||||||||||
Years 2020-2024 | 2,887 | 260 | (10 | ) | |||||||||||||||||||||
FES’ share of the pension and OPEB net (liability) asset as of December 31, 2014 and 2013, was as follows: | |||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Net (Liability) Asset | $ | (295 | ) | $ | (149 | ) | $ | 10 | $ | (8 | ) | ||||||||||||||
FES’ share of the net periodic pension and OPEB costs (credits) for the three years ended December 31, 2014 was as follows: | |||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Net Periodic Costs (Credits) | $ | 150 | $ | (30 | ) | $ | 78 | $ | (24 | ) | $ | (40 | ) | $ | (11 | ) | |||||||||
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS | ||||||||||||
FirstEnergy has four stock-based compensation plans - ICP, 401(k) Savings Plan, EDCP and DCPD, as described further below. | |||||||||||||
ICP | |||||||||||||
The ICP includes four forms of stock-based compensation — restricted stock, restricted stock units, stock options and performance shares. | |||||||||||||
Under the ICP, total issuances cannot exceed 29 million shares of common stock or their equivalent. Stock options, restricted stock and restricted stock units are typically designated to pay out in common stock and performance shares are typically designated to pay out in cash, although the form of payout for restricted stock units and for performance shares granted prior to 2013 can vary if the recipient elects to defer the award. Vesting periods range from one to ten years with majority of awards having a vesting period of three years. As of December 31, 2014, approximately 1.3 million shares were available for future grants assuming maximum performance metrics are achieved for the 2013-2015 and 2014-2016 cycles of restricted stock units (or approximately 2.6 million shares available assuming performance at target) plus any shares that become available again under the ICP due to cancellations, forfeitures, cash settlements or other similar circumstances with respect to outstanding awards. Beginning in December 2013, shares used under the ICP are issued from authorized but unissued common stock. | |||||||||||||
FirstEnergy records the compensation costs for stock-based compensation awards over the vesting period based on the fair value on the grant date, less estimated forfeitures. FirstEnergy records the actual tax benefit realized from tax deductions when awards are exercised or distributed. Realized tax benefits during the years ended December 31, 2014, 2013 and 2012 were $13 million, $13 million and $22 million, respectively. The excess of the deductible amount over the recognized compensation cost is recorded as a component of stockholders’ equity and reported as a financing activity on the Consolidated Statements of Cash Flows. | |||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||
Restricted common stock (restricted stock) and restricted stock units (stock units) activity for the year ended December 31, 2014, was as follows: | |||||||||||||
Outstanding as of January 1, 2014 | 2,216,609 | ||||||||||||
Granted | 1,171,318 | ||||||||||||
Vested (1) | (872,574 | ) | |||||||||||
Forfeited | (103,549 | ) | |||||||||||
Outstanding as of December 31, 2014 | 2,411,804 | ||||||||||||
(1) Excludes dividend equivalents of 148,982 earned during vesting period | |||||||||||||
The 1,171,318 shares of restricted stock and stock units granted during the year ended December 31, 2014, includes 259,812 stock units related to previous grants due to above target performance. | |||||||||||||
Eligible employees receive awards of FE restricted stock or stock units subject to restrictions that lapse over a defined period of time or upon achieving performance results. Dividends are received on the restricted stock and are reinvested in additional shares. Restricted stock grants under the ICP were as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Restricted stock granted | 20,000 | 27,561 | 263,771 | ||||||||||
Weighted average market price | $ | 32.71 | $ | 42.53 | $ | 44.82 | |||||||
Weighted average vesting period (years) | 2.29 | 3.68 | 3.09 | ||||||||||
Dividends restricted | Yes | Yes | Yes | ||||||||||
Vesting activity for restricted stock during 2014 was as follows: | |||||||||||||
Restricted Stock | Number of Shares | Weighted Average Grant-Date Fair Value | |||||||||||
Nonvested as of January 1, 2014 | 417,464 | $ | 45.46 | ||||||||||
Nonvested as of December 31, 2014 | 342,286 | $ | 45.29 | ||||||||||
Granted in 2014 | 20,000 | $ | 32.71 | ||||||||||
Forfeited in 2014 | 1,743 | $ | 33.56 | ||||||||||
Vested in 2014(1) | 93,435 | $ | 37.3 | ||||||||||
(1) Excludes 16,480 shares for dividends earned during vesting period | |||||||||||||
FirstEnergy grants two types of stock unit awards: discretionary-based and performance-based. The discretionary-based awards grant the right to receive, at the end of the period of restriction, a number of shares of common stock equal to the number of stock units set forth in each agreement. Performance-based awards grant the right to receive, at the end of the period of restriction, a number of shares of common stock equal to the number of stock units set forth in the agreement subject to adjustment based on FirstEnergy's performance relative to financial and operational performance targets. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Restricted stock units granted | 1,151,318 | 924,576 | 652,120 | ||||||||||
Weighted average vesting period (years) | 3 | 3 | 3 | ||||||||||
Vesting activity for stock units during 2014 was as follows: | |||||||||||||
Restricted Stock Units | Number of Shares | Weighted Average Grant-Date Fair Value | |||||||||||
Nonvested as of January 1, 2014 | 1,799,145 | $ | 40.86 | ||||||||||
Nonvested as of December 31, 2014 | 2,069,518 | $ | 37.65 | ||||||||||
Granted in 2014 | 1,151,318 | $ | 32.17 | ||||||||||
Forfeited in 2014 | 101,806 | $ | 38.7 | ||||||||||
Vested in 2014 (1) | 779,139 | $ | 30.67 | ||||||||||
(1) Excludes dividend equivalents of 132,502 earned during vesting period | |||||||||||||
As of December 31, 2014, there was $31 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted for restricted stock and restricted stock units; that cost is expected to be recognized over a period of approximately 2 years. | |||||||||||||
Stock Options | |||||||||||||
Stock options were granted to eligible employees allowing them to purchase a specified number of common shares at a fixed grant price over a defined period of time. Stock option activity during 2014 was as follows: | |||||||||||||
Stock Option Activity | Number of Shares | Weighted Average Exercise Price | |||||||||||
Balance, January 1, 2014 (1,997,969 options exercisable) | 2,359,126 | $ | 42.59 | ||||||||||
Options exercised | (50,007 | ) | 21.58 | ||||||||||
Options forfeited | (869,974 | ) | 40.07 | ||||||||||
Balance, December 31, 2014 (1,077,988 options exercisable) | 1,439,145 | $ | 44.83 | ||||||||||
Cash received from the exercise of stock options in 2014, 2013 and 2012 was $1 million, $19 million and $50 million, respectively. The total intrinsic value of options exercised during 2014 was $1 million. | |||||||||||||
Options outstanding and range of exercise prices as of December 31, 2014, were as follows: | |||||||||||||
Options Outstanding | |||||||||||||
Range of Exercise Prices | Shares | Weighted Average Exercise Price | Remaining Contractual Life | ||||||||||
(in years) | |||||||||||||
$28.42-$37.74 | 491,245 | $ | 35.23 | 3.98 | |||||||||
$37.75-$53.08 | 667,458 | $ | 37.87 | 5.79 | |||||||||
$53.09-$81.19 | 280,442 | $ | 78.23 | 2.9 | |||||||||
Total | 1,439,145 | $ | 44.83 | 4.61 | |||||||||
The aggregate intrinsic value of stock options outstanding as of December 31, 2014 was $3 million. | |||||||||||||
Performance Shares | |||||||||||||
Performance shares are share equivalents and do not have voting rights. The performance shares track the performance of FE's common stock over a three-year vesting period. During that time, dividend equivalents accrue and at vesting are converted into additional performance shares. The final account value may be adjusted based on the ranking of FE stock performance to a composite of peer companies. In 2014, $3 million cash was paid to settle performance share obligations. During 2013 and 2012, no cash was paid to settle performance shares due to the criteria not being met for the previous three-year vesting period. | |||||||||||||
401(k) Savings Plan | |||||||||||||
In 2014, 756,412 shares of FE common stock were issued and contributed to participants' accounts. In 2013 and 2012, approximately 708,000 and 543,600 shares of FE common stock, respectively, were purchased on the market and contributed to participants’ accounts. | |||||||||||||
EDCP | |||||||||||||
Under the EDCP, covered employees can direct a portion of their compensation, including annual incentive awards and/or long-term incentive awards, into unfunded FE stock accounts to receive vested stock units or into an unfunded retirement cash account. Dividends are calculated quarterly on stock units outstanding and are credited in the form of additional stock units. The form of payout can vary depending upon the form of the award, the duration of the deferral and other factors. However, as a result of amendments to the EDCP that were implemented in January 2014 and January 2015 respectively, payments made with respect to any dividend equivalent units that accrue after January 21, 2014 and any Short-Term Incentive Awards that are deferred after January 21, 2014 are paid in cash, and effective February 23, 2015, all future contributions to stock accounts directed from performance share awards will be paid in cash upon the end of the three-year deferral period. Payout of the stock accounts typically occurs three years from the date of deferral; however, participants may elect to defer their shares into a retirement stock account that will pay out in cash upon retirement. Interest is calculated on the cash allocated to the cash account and the total balance will pay out in cash upon retirement. | |||||||||||||
DCPD | |||||||||||||
Under the DCPD, members of the Board of Directors can elect to allocate all or a portion of their equity retainers to deferred stock and their cash retainers, meeting fees and chair fees to deferred stock or deferred cash accounts. The net liability recognized for DCPD of approximately $8 million and $7 million as of December 31, 2014 and December 31, 2013, respectively, is included in the caption “Retirement benefits” on the Consolidated Balance Sheets. | |||||||||||||
The shareholder approved pools for the EDCP and DCPD expired in May 2014, after this date shares for the EDCP and DCPD have been issued from the ICP shareholder approved pool. | |||||||||||||
Stock-based Compensation Expense | |||||||||||||
Pre-tax stock-based compensation costs and the amount of stock-based compensation expense capitalized related to FirstEnergy and FES plans are included in the following tables: | |||||||||||||
FirstEnergy | Years ended December 31, | ||||||||||||
Stock-based Compensation Plan | 2014 | 2013 | 2012 | ||||||||||
(In millions) | |||||||||||||
Restricted Stock and Restricted Stock Units | $ | 31 | $ | 42 | $ | 42 | |||||||
Stock Options | — | — | 1 | ||||||||||
Performance Shares | 5 | (10 | ) | 5 | |||||||||
401(k) Savings Plan | 25 | 25 | 37 | ||||||||||
EDCP | 3 | (2 | ) | — | |||||||||
DCPD | 5 | 5 | 4 | ||||||||||
Total | $ | 69 | $ | 60 | $ | 89 | |||||||
Stock-based compensation costs capitalized | $ | 23 | $ | 20 | $ | 29 | |||||||
FES | Years ended December 31, | ||||||||||||
Stock-based Compensation Plan | 2014 | 2013 | 2012 | ||||||||||
(In millions) | |||||||||||||
Restricted Stock and Restricted Stock Units | $ | 4 | $ | 6 | $ | 6 | |||||||
Performance Shares | 1 | (1 | ) | 1 | |||||||||
401(k) Savings Plan | 4 | 4 | 6 | ||||||||||
Total | $ | 9 | $ | 9 | $ | 13 | |||||||
Stock-based compensation costs capitalized | $ | 1 | $ | 1 | $ | 1 | |||||||
Tax benefits associated with stock based compensation plan expense were $14 million, $23 million and $11 million (FES - $2 million, $1 million and $2 million) for the years ended 2014, 2013 and 2012, respectively. |
Taxes
Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Taxes [Abstract] | |||||||||||||||||||||
Taxes | TAXES | ||||||||||||||||||||
FirstEnergy records income taxes in accordance with the liability method of accounting. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recognized for tax purposes. Investment tax credits, which were deferred when utilized, are being amortized over the recovery period of the related property. Deferred income tax liabilities related to temporary tax and accounting basis differences and tax credit carryforward items are recognized at the statutory income tax rates in effect when the liabilities are expected to be paid. Deferred tax assets are recognized based on income tax rates expected to be in effect when they are settled. | |||||||||||||||||||||
FES and the Utilities are party to an intercompany income tax allocation agreement with FirstEnergy and its other subsidiaries that provides for the allocation of consolidated tax liabilities. Net tax benefits attributable to FirstEnergy, excluding any tax benefits derived from interest expense associated with acquisition indebtedness from the merger with GPU, are reallocated to the subsidiaries of FirstEnergy that have taxable income. That allocation is accounted for as a capital contribution to the company receiving the tax benefit. | |||||||||||||||||||||
On December 19, 2014, the President signed into law the Tax Increase Prevention Act of 2014 (the Act). The Act, among other things, extended retroactively the R&D tax credit until December 31, 2014, and also extended accelerated depreciation of qualified capital investments placed into service before January 1, 2015. FirstEnergy and FES recorded the effects of the Act in the fourth quarter of 2014. The retroactive extension of the tax benefits did not have a significant impact to the effective tax rate. | |||||||||||||||||||||
PROVISION FOR INCOME TAXES (BENEFITS)(1) | 2014 | 2013 | 2012 | ||||||||||||||||||
(In millions) | |||||||||||||||||||||
FirstEnergy | |||||||||||||||||||||
Currently payable (receivable)- | |||||||||||||||||||||
Federal | $ | (132 | ) | $ | (118 | ) | $ | (130 | ) | ||||||||||||
State | (72 | ) | 70 | 28 | |||||||||||||||||
(204 | ) | (48 | ) | (102 | ) | ||||||||||||||||
Deferred, net- | |||||||||||||||||||||
Federal | 214 | 305 | 580 | ||||||||||||||||||
State | (42 | ) | (54 | ) | 78 | ||||||||||||||||
172 | 251 | 658 | |||||||||||||||||||
Investment tax credit amortization | (10 | ) | (8 | ) | (11 | ) | |||||||||||||||
Total provision for income taxes (benefits) | $ | (42 | ) | $ | 195 | $ | 545 | ||||||||||||||
FES | |||||||||||||||||||||
Currently payable (receivable)- | |||||||||||||||||||||
Federal | $ | (222 | ) | $ | (300 | ) | $ | (128 | ) | ||||||||||||
State | (13 | ) | (3 | ) | 17 | ||||||||||||||||
(235 | ) | (303 | ) | (111 | ) | ||||||||||||||||
Deferred, net- | |||||||||||||||||||||
Federal | 25 | 317 | 209 | ||||||||||||||||||
State | (14 | ) | (4 | ) | 9 | ||||||||||||||||
11 | 313 | 218 | |||||||||||||||||||
Investment tax credit amortization | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||
Total provision for income taxes (benefits) | $ | (228 | ) | $ | 6 | $ | 103 | ||||||||||||||
(1)Provision for Income Taxes (Benefits) on Income from Continuing Operations. Currently payable (receivable) in 2014 excludes $106 million and $12 million of federal and state taxes, respectively, associated with discontinued operations. Deferred, net in 2014 excludes $44 million and $5 million of federal and state tax benefits, respectively, associated with discontinued operations. | |||||||||||||||||||||
FirstEnergy and FES tax rates are affected by permanent items, such as AFUDC equity and other flow-through items as well as discrete items that may occur in any given period, but are not consistent from period to period. The following tables provide a reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes on continuing operations for the three years ended December 31, 2014: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
FirstEnergy | |||||||||||||||||||||
Income from Continuing Operations before provision for income taxes | $ | 171 | $ | 570 | $ | 1,299 | |||||||||||||||
Federal income tax expense at statutory rate (35%) | $ | 60 | $ | 199 | $ | 455 | |||||||||||||||
Increases (reductions) in taxes resulting from- | |||||||||||||||||||||
Amortization of investment tax credits | (10 | ) | (8 | ) | (11 | ) | |||||||||||||||
State income taxes, net of federal tax benefit | 12 | 10 | 79 | ||||||||||||||||||
Medicare Part D | — | — | 32 | ||||||||||||||||||
Effectively settled tax items, including interest | (35 | ) | (2 | ) | (20 | ) | |||||||||||||||
ESOP dividend | (6 | ) | (9 | ) | — | ||||||||||||||||
Change in accounting method | (27 | ) | — | — | |||||||||||||||||
Tax basis balance sheet adjustments | (25 | ) | — | — | |||||||||||||||||
AFUDC equity and other flow-through | (13 | ) | (7 | ) | — | ||||||||||||||||
Other, net | 2 | 12 | 10 | ||||||||||||||||||
Total provision for income taxes (benefits) | $ | (42 | ) | $ | 195 | $ | 545 | ||||||||||||||
Effective income tax rate | (24.6 | )% | 34.2 | % | 42 | % | |||||||||||||||
FES | |||||||||||||||||||||
Income (loss) from Continuing Operations before provision for income taxes (benefits) | $ | (588 | ) | $ | 52 | $ | 276 | ||||||||||||||
Federal income tax expense (benefit) at statutory rate (35%) | $ | (206 | ) | $ | 18 | $ | 97 | ||||||||||||||
Increases (reductions) in taxes resulting from- | |||||||||||||||||||||
Amortization of investment tax credits | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||
State income taxes, net of federal tax benefit | (14 | ) | (5 | ) | 17 | ||||||||||||||||
Effectively settled tax items | — | — | (11 | ) | |||||||||||||||||
ESOP dividend | (1 | ) | (2 | ) | — | ||||||||||||||||
Other, net | (3 | ) | (1 | ) | 4 | ||||||||||||||||
Total provision for income taxes (benefits) | $ | (228 | ) | $ | 6 | $ | 103 | ||||||||||||||
Effective income tax rate | 38.8 | % | 11.5 | % | 37.3 | % | |||||||||||||||
In 2014, FirstEnergy’s effective tax rate was (24.6)% compared to 34.2% in 2013. The decrease in the effective tax rate year over year relates primarily to a $399 million decrease in income from continuing operations, tax benefits associated with an IRS approved change in accounting method for costs associated with the refurbishment of meters and transformers ($27 million), and additional tax benefits on uncertain state tax positions due to expiration of the statute of limitations ($33 million). Additionally, during 2014, income tax benefits of $25 million were recorded that related to prior periods. The out-of-period adjustment primarily related to the correction of amounts included in the Company’s tax basis balance sheet. Management has determined that this adjustment is not material to the current or any prior period. These benefits were partially offset by higher valuation allowances recorded in 2014 on state and municipal NOL carryforwards that the Company believes are no longer realizable and the absence of tax benefits recorded in 2013 for changes in state apportionment factors as well as a decrease in deferred tax liabilities associated with the elimination of business nexus in certain state jurisdictions. | |||||||||||||||||||||
In 2014, FES’ effective tax rate (on a loss from continuing operations) was 38.8% compared to 11.5% (on income from continuing operations) in 2013. During 2014, FES' effective tax rate benefited from changes to state apportionment factors but was offset by valuation allowances recorded on state and municipality NOL carryforwards. | |||||||||||||||||||||
Accumulated deferred income taxes as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||
FirstEnergy | |||||||||||||||||||||
Property basis differences | $ | 9,354 | $ | 8,734 | |||||||||||||||||
Deferred sale and leaseback gain | (381 | ) | (401 | ) | |||||||||||||||||
Pension and OPEB | (1,433 | ) | (972 | ) | |||||||||||||||||
Nuclear decommissioning activities | 458 | 460 | |||||||||||||||||||
Asset retirement obligations | (641 | ) | (651 | ) | |||||||||||||||||
Regulatory asset/liability | 768 | 750 | |||||||||||||||||||
Loss carryforwards and AMT credits | (1,932 | ) | (1,598 | ) | |||||||||||||||||
Loss carryforward valuation reserve | 174 | 125 | |||||||||||||||||||
All other | 172 | 155 | |||||||||||||||||||
Net deferred income tax liability | $ | 6,539 | $ | 6,602 | |||||||||||||||||
FES | |||||||||||||||||||||
Property basis differences | $ | 1,749 | $ | 1,354 | |||||||||||||||||
Deferred sale and leaseback gain | (356 | ) | (370 | ) | |||||||||||||||||
Pension and OPEB | (373 | ) | (66 | ) | |||||||||||||||||
Lease market valuation liability | 75 | 54 | |||||||||||||||||||
Nuclear decommissioning activities | 489 | 470 | |||||||||||||||||||
Asset retirement obligations | (486 | ) | (439 | ) | |||||||||||||||||
Loss carryforwards and AMT credits | (631 | ) | (354 | ) | |||||||||||||||||
Loss carryforward valuation reserve | 32 | 27 | |||||||||||||||||||
All other | (15 | ) | 40 | ||||||||||||||||||
Net deferred income tax liability | $ | 484 | $ | 716 | |||||||||||||||||
FirstEnergy has tax returns that are under review at the audit or appeals level by the IRS and state taxing authorities. FirstEnergy's tax returns for all state jurisdictions are open from 2010-2013. In April 2014, the IRS completed its examination of FirstEnergy’s 2011 and 2012 federal income tax returns and issued Revenue Agent Reports for those years. In addition, in January 2015, the IRS completed its examination of the 2013 federal income tax return and issued a Revenue Agent Report. For tax years 2011-2013 there were no material impacts to FirstEnergy's effective tax rate associated with these examinations. Tax year 2014 is currently under review by the IRS. | |||||||||||||||||||||
FirstEnergy has recorded as deferred income tax assets the effect of NOLs and tax credits that will more likely than not be realized through future operations and through the reversal of existing temporary differences. As of December 31, 2014, the deferred income tax assets, before any valuation allowances, consisted of $1.5 billion of Federal NOL carryforwards that expire from 2030 to 2034, Federal AMT credits of $25 million that have an indefinite carryforward period, and $413 million of state and local NOL carryforwards that will begin to expire in 2015. | |||||||||||||||||||||
The table below summarizes pre-tax NOL carryforwards for state and local income tax purposes of approximately $9.9 billion for FirstEnergy, of which approximately $5.6 billion is expected to be utilized based on current estimates and assumptions. The ultimate utilization of these NOLs may be impacted by statutory limitations on the use of NOLs imposed by state and local tax jurisdictions, changes in statutory tax rates, and changes in business which, among other things, impact both future profitability and the manner in which future taxable income is apportioned to various state and local tax jurisdictions. | |||||||||||||||||||||
Expiration Period | FirstEnergy | FES | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
State | Local | State | Local | ||||||||||||||||||
2015-2019 | $ | 63 | $ | 2,524 | $ | — | $ | 1,874 | |||||||||||||
2020-2024 | 1,813 | 646 | 182 | — | |||||||||||||||||
2025-2029 | 1,704 | — | 88 | — | |||||||||||||||||
2030-2034 | 3,172 | — | 1,001 | — | |||||||||||||||||
$ | 6,752 | $ | 3,170 | $ | 1,271 | $ | 1,874 | ||||||||||||||
FirstEnergy accounts for uncertainty in income taxes recognized in its financial statements. A recognition threshold and measurement attribute is utilized for financial statement recognition and measurement of tax positions taken or expected to be taken on a company's tax return. As of December 31, 2014 and 2013, FirstEnergy's total unrecognized income tax benefits were approximately $34 million and $48 million, respectively. All $34 million of unrecognized income tax benefits as of December 31, 2014, would impact the effective tax rate if ultimately recognized in future years. As of December 31, 2014, it is reasonably possible that approximately $10 million of unrecognized tax benefits may be resolved during 2015 as a result of the statute of limitations expiring, all of which would affect FirstEnergy's effective tax rate. | |||||||||||||||||||||
The following table summarizes the changes in unrecognized tax positions for the years ended 2014, 2013 and 2012: | |||||||||||||||||||||
FirstEnergy | FES | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Balance, January 1, 2012 | $ | 117 | $ | 45 | |||||||||||||||||
Current year increases | 2 | — | |||||||||||||||||||
Current year decreases | (7 | ) | — | ||||||||||||||||||
Prior years increases | 6 | 6 | |||||||||||||||||||
Prior years decreases | (37 | ) | (13 | ) | |||||||||||||||||
Decrease for settlements | (38 | ) | (35 | ) | |||||||||||||||||
Balance, December 31, 2012 | $ | 43 | $ | 3 | |||||||||||||||||
Prior years increases | 10 | — | |||||||||||||||||||
Prior years decreases | (5 | ) | — | ||||||||||||||||||
Balance, December 31, 2013 | $ | 48 | $ | 3 | |||||||||||||||||
Current year increases | 4 | — | |||||||||||||||||||
Prior years increases | 5 | — | |||||||||||||||||||
Prior years decreases | (23 | ) | — | ||||||||||||||||||
Balance, December 31, 2014 | $ | 34 | $ | 3 | |||||||||||||||||
FirstEnergy recognizes interest expense or income related to uncertain tax positions. That amount is computed by applying the applicable statutory interest rate to the difference between the tax position recognized and the amount previously taken or expected to be taken on the federal income tax return. FirstEnergy includes net interest and penalties in the provision for income taxes. FirstEnergy's reversal of accrued interest associated with unrecognized tax benefits reduced FirstEnergy's effective tax rate in 2014 and 2012 by approximately $6 million and $4 million, respectively. There was no reversal of accrued interest for the year ended December 31, 2013. | |||||||||||||||||||||
The following table summarizes the net interest expense (income) for the three years ended December 31, 2014 and the cumulative net interest payable as of December 31, 2014 and 2013: | |||||||||||||||||||||
Net Interest Expense (Income) | Net Interest Payable | ||||||||||||||||||||
For the Years Ended December 31, | As of December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||||||
FirstEnergy | $ | (6 | ) | $ | 1 | $ | (4 | ) | $ | 2 | $ | 9 | |||||||||
FES | — | — | (4 | ) | — | 1 | |||||||||||||||
General Taxes | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
FirstEnergy | |||||||||||||||||||||
KWH excise | $ | 194 | $ | 219 | $ | 230 | |||||||||||||||
State gross receipts | 226 | 240 | 251 | ||||||||||||||||||
Real and personal property | 393 | 368 | 328 | ||||||||||||||||||
Social security and unemployment | 112 | 110 | 126 | ||||||||||||||||||
Other | 37 | 41 | 49 | ||||||||||||||||||
Total general taxes | $ | 962 | $ | 978 | $ | 984 | |||||||||||||||
FES | |||||||||||||||||||||
State gross receipts | $ | 69 | $ | 77 | $ | 77 | |||||||||||||||
Real and personal property | 39 | 40 | 35 | ||||||||||||||||||
Social security and unemployment | 17 | 19 | 20 | ||||||||||||||||||
Other | 3 | 2 | 4 | ||||||||||||||||||
Total general taxes | $ | 128 | $ | 138 | $ | 136 | |||||||||||||||
Leases
Leases | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases [Abstract] | |||||||||||||
Leases | LEASES | ||||||||||||
FirstEnergy leases certain generating facilities, office space and other property and equipment under cancelable and noncancelable leases. | |||||||||||||
In 1987, OE sold portions of its ownership interests in Perry Unit 1 and Beaver Valley Unit 2 and entered into operating leases on the portions sold for basic lease terms of approximately 29 years, expiring in 2016. In that same year, CEI and TE also sold portions of their ownership interests in Beaver Valley Unit 2 and Bruce Mansfield Units 1, 2 and 3 and entered into similar operating leases for lease terms of approximately 30 years expiring in 2017. During the terms of their respective leases, OE, CEI and TE are responsible, to the extent of their leasehold interests, for costs associated with the units including construction expenditures, operation and maintenance expenses, insurance, nuclear fuel, property taxes and decommissioning. They have the right, at the expiration of the respective basic lease terms, to renew their respective leases. They also have the right to purchase the facilities at the expiration of the basic lease term or any renewal term at a price equal to the fair market value of the facilities. The basic rental payments are adjusted when applicable federal tax law changes. | |||||||||||||
In 2007, FG completed a sale and leaseback transaction for its 93.825% undivided interest in Bruce Mansfield Unit 1 and entered into operating leases for basic lease terms of approximately 33 years, expiring in 2040. FES has unconditionally and irrevocably guaranteed all of FG’s obligations under each of the leases. In 2013, FG acquired the remaining lessor interests in Bruce Mansfield Units 1, 2 and 3, which were part of the leases entered into by CEI and TE in 1987. | |||||||||||||
In February 2014, NG purchased 47.7 MW of lessor equity interests in OE's existing sale and leaseback of Beaver Valley Unit 2 for approximately $94 million. On June 24, 2014, OE exercised its irrevocable right to repurchase from the remaining owner participants the lessors' interests in Beaver Valley Unit 2 at the end of the lease term (June 1, 2017), which right to repurchase was assigned to NG. Additionally, on June 24, 2014, NG entered into a purchase agreement with an owner participant to purchase its lessor equity interests of the remaining non-affiliated leasehold interest in Perry Unit 1 on May 23, 2016, which is just prior to the end of the lease term. In November 2014, NG repurchased 55.3 MW of lessor equity interests in OE's existing sale and leaseback of Perry Unit 1 for approximately $87 million. OE and TE continue to lease these MW under their respective sale and leaseback arrangements and the related lease debt remains outstanding. | |||||||||||||
Established by OE in 1996, PNBV purchased a portion of the lease obligation bonds issued on behalf of lessors in OE’s Perry Unit 1 and Beaver Valley Unit 2 sale and leaseback transactions. Similarly, CEI and TE established Shippingport in 1997 to purchase the lease obligation bonds issued on behalf of lessors in their Bruce Mansfield Units 1, 2 and 3 sale and leaseback transactions. During 2013, the investments held at Shippingport were liquidated. The PNBV arrangements effectively reduce lease costs related to those transactions (see Note 8, Variable Interest Entities). | |||||||||||||
As of December 31, 2014, FirstEnergy's leasehold interest was 3.75% of Perry Unit 1, 93.83% of Bruce Mansfield Unit 1 and 2.60% of Beaver Valley Unit 2. | |||||||||||||
Operating lease expense for 2014, 2013 and 2012, is summarized as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
FirstEnergy | 199 | 224 | 291 | ||||||||||
FES | 95 | 97 | 140 | ||||||||||
The future minimum capital lease payments as of December 31, 2014 are as follows: | |||||||||||||
Capital leases | FirstEnergy | FES | |||||||||||
(In millions) | |||||||||||||
2015 | $ | 39 | $ | 6 | |||||||||
2016 | 35 | 6 | |||||||||||
2017 | 30 | 5 | |||||||||||
2018 | 23 | 2 | |||||||||||
2019 | 18 | — | |||||||||||
Years thereafter | 40 | — | |||||||||||
Total minimum lease payments | 185 | 19 | |||||||||||
Interest portion | (25 | ) | (1 | ) | |||||||||
Present value of net minimum lease payments | 160 | 18 | |||||||||||
Less current portion | 34 | 5 | |||||||||||
Noncurrent portion | $ | 126 | $ | 13 | |||||||||
FirstEnergy's future minimum consolidated operating lease payments as of December 31, 2014, are as follows: | |||||||||||||
FirstEnergy | |||||||||||||
Operating Leases | Lease Payments | PNBV | Net | ||||||||||
(In millions) | |||||||||||||
2015 | $ | 245 | $ | 40 | $ | 205 | |||||||
2016 | 197 | 13 | 184 | ||||||||||
2017 | 122 | 3 | 119 | ||||||||||
2018 | 128 | — | 128 | ||||||||||
2019 | 109 | — | 109 | ||||||||||
Years thereafter | 1,482 | — | 1,482 | ||||||||||
Total minimum lease payments | $ | 2,283 | $ | 56 | $ | 2,227 | |||||||
FES' future minimum operating lease payments as of December 31, 2014, are as follows: | |||||||||||||
Operating Leases | Lease Payments | ||||||||||||
(In millions) | |||||||||||||
2015 | $ | 142 | |||||||||||
2016 | 131 | ||||||||||||
2017 | 81 | ||||||||||||
2018 | 101 | ||||||||||||
2019 | 97 | ||||||||||||
Years thereafter | 1,383 | ||||||||||||
Total minimum lease payments | $ | 1,935 | |||||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014, intangible assets classified in Other Deferred Charges on FirstEnergy’s Consolidated Balance Sheet, include the following: | |||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Amortization Expense | ||||||||||||||||||||||||||||||||||||||||
Actual | Estimated | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Gross | Accumulated Amortization | Net | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||||||||||||
NUG contracts(1) | $ | 124 | $ | 20 | $ | 104 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 79 | |||||||||||||||||||||
OVEC | 54 | 7 | 47 | 2 | 2 | 2 | 2 | 2 | 2 | 37 | |||||||||||||||||||||||||||||||
Coal contracts(2)(3) | 556 | 289 | 267 | 55 | 51 | 51 | 45 | 30 | 30 | 19 | |||||||||||||||||||||||||||||||
FES customer contracts | 148 | 70 | 78 | 18 | 17 | 17 | 16 | 14 | 13 | 1 | |||||||||||||||||||||||||||||||
$ | 882 | $ | 386 | $ | 496 | $ | 80 | $ | 75 | $ | 75 | $ | 68 | $ | 51 | $ | 50 | $ | 136 | ||||||||||||||||||||||
-1 | NUG contracts are subject to regulatory accounting and their amortization does not impact earnings. | ||||||||||||||||||||||||||||||||||||||||
-2 | A gross amount of $40 million ($29 million, net) of the coal contracts is related to FES. The 2014 and estimated 2015 to 2019 amortization expense for FES is $5.7 million annually. | ||||||||||||||||||||||||||||||||||||||||
-3 | A gross amount of $102 million ($41 million, net) of the coal contracts was recorded with a regulatory offset and the amortization does not impact earnings. Accordingly, the amortization expense for these coal contracts is excluded from table above. | ||||||||||||||||||||||||||||||||||||||||
FES acquired certain customer contract rights which were capitalized as intangible assets. These rights allow FES to supply electric generation to customers, and the recorded value is being amortized ratably over the term of the related contracts. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Variable Interest Entities [Abstract] | ||||||||||||
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES | |||||||||||
FirstEnergy performs qualitative analyses based on powers and benefits to determine whether a variable interest gives FirstEnergy a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both power and benefits, such that an entity has (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. FirstEnergy consolidates a VIE when it is determined that it is the primary beneficiary. | ||||||||||||
VIEs included in FirstEnergy’s consolidated financial statements are: the PNBV and Shippingport capital trusts that were created to refinance debt originally issued in connection with sale and leaseback transactions; wholly-owned limited liability companies of the Ohio Companies (as described below); wholly owned limited liability companies of JCP&L created to sell transition bonds to securitize the recovery of JCP&L’s bondable stranded costs and special purpose limited liability companies at MP and PE created to issue environmental control bonds that were used to construct environmental control facilities (see Note 11, Capitalization for additional details). | ||||||||||||
The caption noncontrolling interest within the consolidated financial statements is used to reflect the portion of a VIE that FirstEnergy consolidates, but does not own. | ||||||||||||
In order to evaluate contracts for consolidation treatment and entities for which FirstEnergy has an interest, FirstEnergy aggregates variable interests into the following categories based on similar risk characteristics and significance. | ||||||||||||
Ohio Securitization | ||||||||||||
In September 2012, the Ohio Companies formed CEI Funding LLC, OE Funding LLC and TE Funding LLC, respectively, as separate, wholly-owned limited liability SPEs. The phase-in recovery bonds issued by these SPEs are payable only from, and secured by, phase-in recovery property owned by the SPEs (i.e. the right to impose, charge and collect irrevocable non-bypassable usage-based charges payable by retail electric customers in the service territories of the Ohio Companies) and the bondholder has no recourse to the general credit of FirstEnergy or any of the Ohio Companies. Each of the Ohio Companies, as servicer of its respective SPE, manages and administers the phase-in recovery property including the billing, collection and remittance of usage-based charges payable by retail electric customers. In the aggregate, the Ohio Companies are entitled to annual servicing fees of $445 thousand that are recoverable through the usage-based charges. The SPEs are considered VIEs and each one is consolidated into its applicable utility. | ||||||||||||
Mining Operations | ||||||||||||
FEV holds a 33-1/3% equity ownership in Global Holding, the holding company for a joint venture in the Signal Peak mining and coal transportation operations with coal sales in U.S. and international markets. FEV is not the primary beneficiary of the joint venture, as it does not have control over the significant activities affecting the joint venture's economic performance. FEV's ownership interest is subject to the equity method of accounting. | ||||||||||||
Previously FEV held a 50% equity ownership in Global Holding, of which a 16.7% interest was sold in 2011. In conjunction with the 2011 sale, a subsidiary of Global Holding was given the right to put up to 2 million tons annually from the Signal Peak mine to FG through 2024. Such subsidiary did not exercise their right under the put for 2014 or 2015. | ||||||||||||
Trusts | ||||||||||||
FirstEnergy's consolidated financial statements include PNBV and Shippingport. FirstEnergy used debt and available funds to purchase the notes issued by PNBV and Shippingport for the purchase of lease obligation bonds. Ownership of PNBV includes a 3% equity interest by an unaffiliated third party and a 3% equity interest held by OES Ventures, a wholly owned subsidiary of OE. During 2013, the investments held at Shippingport were liquidated. | ||||||||||||
PATH-WV | ||||||||||||
PATH is a series limited liability company that is comprised of multiple series, each of which has separate rights, powers and duties regarding specified property and the series profits and losses associated with such property. A subsidiary of FE owns 100% of the Allegheny Series (PATH-Allegheny) and 50% of the West Virginia Series (PATH-WV), which is a joint venture with a subsidiary of AEP. FirstEnergy is not the primary beneficiary of PATH-WV, as it does not have control over the significant activities affecting the economics of the portion of the PATH project that was to be constructed by PATH-WV. FirstEnergy's ownership interest in PATH-WV is subject to the equity method of accounting. | ||||||||||||
On August 24, 2012, PJM removed the PATH project from its long-range expansion plans. See Note 14, Regulatory Matters, for additional information on the abandonment of PATH. | ||||||||||||
Power Purchase Agreements | ||||||||||||
FirstEnergy evaluated its power purchase agreements and determined that certain NUG entities may be VIEs to the extent that they own a plant that sells substantially all of its output to the applicable utilities and the contract price for power is correlated with the plant’s variable costs of production. FirstEnergy maintains 17 long-term power purchase agreements with NUG entities that were entered into pursuant to PURPA. FirstEnergy was not involved in the creation of, and has no equity or debt invested in, any of these entities. | ||||||||||||
FirstEnergy has determined that for all but two of these NUG entities, it does not have variable interests in the entities or the entities do not meet the criteria to be considered a VIE. FirstEnergy may hold a variable interest in the remaining two entities; however, it applied the scope exception that exempts enterprises unable to obtain the necessary information to evaluate entities. | ||||||||||||
Because FirstEnergy has no equity or debt interests in the NUG entities, its maximum exposure to loss relates primarily to the above-market costs incurred for power. FirstEnergy expects any above-market costs incurred to be recovered from customers. Purchased power costs related to the contracts that may contain a variable interest were $185 million during the years ended December 31, 2014 and 2013. | ||||||||||||
In 1998 the PPUC issued an order approving a transition plan for WP that disallowed certain costs, including an estimated amount for an adverse power purchase commitment related to the NUG entity wherein WP may hold a variable interest, for which WP has taken the scope exception. On November 20, 2012, WP entered into an agreement to terminate the adverse power purchase commitment and accrued a pre-tax loss of $17 million. WP terminated the adverse commitment on January 1, 2013 and settled its liability. | ||||||||||||
Sale and Leaseback | ||||||||||||
FirstEnergy has variable interests in certain sale and leaseback transactions. FirstEnergy is not the primary beneficiary of these interests as it does not have control over the significant activities affecting the economics of the arrangements. See Note 6, Leases for additional details. | ||||||||||||
FirstEnergy and FES are exposed to losses under their applicable sale and leaseback agreements upon the occurrence of certain contingent events. The maximum exposure under these provisions represents the amount of casualty value payments due to the lessor, by FirstEnergy and FES, upon the occurrence of specified casualty events. Net discounted lease payments to the lessor would not be payable if the casualty loss payments were made. The following table discloses each company’s net exposure to loss based upon the casualty value provisions as of December 31, 2014: | ||||||||||||
Maximum | Discounted Lease | Net | ||||||||||
Exposure | Payments, net | Exposure | ||||||||||
(In millions) | ||||||||||||
FirstEnergy | $ | 1,308 | $ | 1,050 | $ | 258 | ||||||
FES | $ | 1,217 | $ | 1,003 | $ | 214 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||||||||
RECURRING FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||||||
Authoritative accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. The three levels of the fair value hierarchy and a description of the valuation techniques are as follows: | ||||||||||||||||||||||||||||||||||||
Level 1 | - | Quoted prices for identical instruments in active market | ||||||||||||||||||||||||||||||||||
Level 2 | - | Quoted prices for similar instruments in active market | ||||||||||||||||||||||||||||||||||
- | Quoted prices for identical or similar instruments in markets that are not active | |||||||||||||||||||||||||||||||||||
- | Model-derived valuations for which all significant inputs are observable market data | |||||||||||||||||||||||||||||||||||
Models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. | ||||||||||||||||||||||||||||||||||||
Level 3 | - | Valuation inputs are unobservable and significant to the fair value measurement | ||||||||||||||||||||||||||||||||||
FirstEnergy produces a long-term power and capacity price forecast annually with periodic updates as market conditions change. When underlying prices are not observable, prices from the long-term price forecast, which has been reviewed and approved by FirstEnergy's Risk Policy Committee, are used to measure fair value. A more detailed description of FirstEnergy's valuation process for FTRs and NUGs are as follows: | ||||||||||||||||||||||||||||||||||||
FTRs are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly day-ahead congestion price differences across transmission paths. FTRs are acquired by FirstEnergy in the annual, monthly and long-term RTO auctions and are initially recorded using the auction clearing price less cost. After initial recognition, FTRs' carrying values are periodically adjusted to fair value using a mark-to-model methodology, which approximates market. The primary inputs into the model, which are generally less observable than objective sources, are the most recent RTO auction clearing prices and the FTRs' remaining hours. The model calculates the fair value by multiplying the most recent auction clearing price by the remaining FTR hours less the prorated FTR cost. Generally, significant increases or decreases in inputs in isolation could result in a higher or lower fair value measurement. See Note 10, Derivative Instruments, for additional information regarding FirstEnergy's FTRs. | ||||||||||||||||||||||||||||||||||||
NUG contracts represent purchase power agreements with third-party non-utility generators that are transacted to satisfy certain obligations under PURPA. NUG contract carrying values are recorded at fair value and adjusted periodically using a mark-to-model methodology, which approximates market. The primary unobservable inputs into the model are regional power prices and generation MWH. Pricing for the NUG contracts is a combination of market prices for the current year and next three years based on observable data and internal models using historical trends and market data for the remaining years under contract. The internal models use forecasted energy purchase prices as an input when prices are not defined by the contract. Forecasted market prices are based on ICE quotes and management assumptions. Generation MWH reflects data provided by contractual arrangements and historical trends. The model calculates the fair value by multiplying the prices by the generation MWH. Generally, significant increases or decreases in inputs in isolation could result in a higher or lower fair value measurement. | ||||||||||||||||||||||||||||||||||||
FirstEnergy primarily applies the market approach for recurring fair value measurements using the best information available. Accordingly, FirstEnergy maximizes the use of observable inputs and minimizes the use of unobservable inputs. There were no changes in valuation methodologies used as of December 31, 2014, from those used as of December 31, 2013. The determination of the fair value measures takes into consideration various factors, including but not limited to, counterparty credit risk and the impact of credit enhancements (such as cash deposits, LOCs and priority interests). The impact of these forms of risk was not significant to the fair value measurements. | ||||||||||||||||||||||||||||||||||||
Transfers between levels are recognized at the end of the reporting period. There were no transfers between levels during the years ended December 31, 2014 and 2013. The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy: | ||||||||||||||||||||||||||||||||||||
FirstEnergy | ||||||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets | (In millions) | |||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 1,221 | $ | — | $ | 1,221 | $ | — | $ | 1,365 | $ | — | $ | 1,365 | ||||||||||||||||||||
Derivative assets - commodity contracts | 1 | 171 | — | 172 | 7 | 208 | — | 215 | ||||||||||||||||||||||||||||
Derivative assets - FTRs | — | — | 39 | 39 | — | — | 4 | 4 | ||||||||||||||||||||||||||||
Derivative assets - NUG contracts(1) | — | — | 2 | 2 | — | — | 20 | 20 | ||||||||||||||||||||||||||||
Equity securities(2) | 592 | — | — | 592 | 317 | — | — | 317 | ||||||||||||||||||||||||||||
Foreign government debt securities | — | 76 | — | 76 | — | 109 | — | 109 | ||||||||||||||||||||||||||||
U.S. government debt securities | — | 182 | — | 182 | — | 165 | — | 165 | ||||||||||||||||||||||||||||
U.S. state debt securities | — | 237 | — | 237 | — | 228 | — | 228 | ||||||||||||||||||||||||||||
Other(3) | 55 | 256 | — | 311 | 187 | 255 | — | 442 | ||||||||||||||||||||||||||||
Total assets | $ | 648 | $ | 2,143 | $ | 41 | $ | 2,832 | $ | 511 | $ | 2,330 | $ | 24 | $ | 2,865 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Derivative liabilities - commodity contracts | $ | (26 | ) | $ | (141 | ) | $ | — | $ | (167 | ) | $ | (13 | ) | $ | (100 | ) | $ | — | $ | (113 | ) | ||||||||||||||
Derivative liabilities - FTRs | — | — | (14 | ) | (14 | ) | — | — | (12 | ) | (12 | ) | ||||||||||||||||||||||||
Derivative liabilities - NUG contracts(1) | — | — | (153 | ) | (153 | ) | — | — | (222 | ) | (222 | ) | ||||||||||||||||||||||||
Total liabilities | $ | (26 | ) | $ | (141 | ) | $ | (167 | ) | $ | (334 | ) | $ | (13 | ) | $ | (100 | ) | $ | (234 | ) | $ | (347 | ) | ||||||||||||
Net assets (liabilities)(4) | $ | 622 | $ | 2,002 | $ | (126 | ) | $ | 2,498 | $ | 498 | $ | 2,230 | $ | (210 | ) | $ | 2,518 | ||||||||||||||||||
(1) | NUG contracts are subject to regulatory accounting treatment and do not impact earnings. | |||||||||||||||||||||||||||||||||||
(2) | NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index or the Wells Fargo Hybrid and Preferred Securities REIT index. | |||||||||||||||||||||||||||||||||||
(3) | Primarily consists of cash and short-term cash investments. | |||||||||||||||||||||||||||||||||||
(4) | Excludes $40 million and $10 million as of December 31, 2014 and December 31, 2013, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | |||||||||||||||||||||||||||||||||||
Rollforward of Level 3 Measurements | ||||||||||||||||||||||||||||||||||||
The following table provides a reconciliation of changes in the fair value of NUG contracts, LCAPP contracts, and FTRs that are classified as Level 3 in the fair value hierarchy for the periods ended December 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||||||||
NUG Contracts(1) | LCAPP Contracts(1) | FTRs | ||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Net | Derivative Assets | Derivative Liabilities | Net | Derivative Assets | Derivative Liabilities | Net | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
January 1, 2013 Balance | $ | 36 | $ | (290 | ) | $ | (254 | ) | $ | — | $ | (144 | ) | $ | (144 | ) | $ | 8 | $ | (9 | ) | $ | (1 | ) | ||||||||||||
Unrealized gain (loss) | (8 | ) | (17 | ) | (25 | ) | — | (22 | ) | (22 | ) | 3 | 1 | 4 | ||||||||||||||||||||||
Purchases | — | — | — | — | — | — | 6 | (15 | ) | (9 | ) | |||||||||||||||||||||||||
Terminations(2) | — | — | — | — | 166 | 166 | — | — | — | |||||||||||||||||||||||||||
Settlements | (8 | ) | 85 | 77 | — | — | — | (13 | ) | 11 | (2 | ) | ||||||||||||||||||||||||
December 31, 2013 Balance | $ | 20 | $ | (222 | ) | $ | (202 | ) | $ | — | $ | — | $ | — | $ | 4 | $ | (12 | ) | $ | (8 | ) | ||||||||||||||
Unrealized gain (loss) | 2 | (2 | ) | — | — | — | — | 47 | (1 | ) | 46 | |||||||||||||||||||||||||
Purchases | — | — | — | — | — | — | 26 | (16 | ) | 10 | ||||||||||||||||||||||||||
Settlements | (20 | ) | 71 | 51 | — | — | — | (38 | ) | 15 | (23 | ) | ||||||||||||||||||||||||
December 31, 2014 Balance | $ | 2 | $ | (153 | ) | $ | (151 | ) | $ | — | $ | — | $ | — | $ | 39 | $ | (14 | ) | $ | 25 | |||||||||||||||
(1) | Changes in the fair value of NUG and LCAPP contracts are subject to regulatory accounting treatment and do not impact earnings. | |||||||||||||||||||||||||||||||||||
(2) | LCAPP contracts are financially settled agreements associated with capacity in New Jersey. During the fourth quarter of 2013, all LCAPP contracts were terminated after being declared unconstitutional by the U.S. District Court for the District of New Jersey. | |||||||||||||||||||||||||||||||||||
Level 3 Quantitative Information | ||||||||||||||||||||||||||||||||||||
The following table provides quantitative information for FTRs and NUG contracts that are classified as Level 3 in the fair value hierarchy for the period ended December 31, 2014: | ||||||||||||||||||||||||||||||||||||
Fair Value, Net (In millions) | Valuation | Significant Input | Range | Weighted Average | Units | |||||||||||||||||||||||||||||||
Technique | ||||||||||||||||||||||||||||||||||||
FTRs | $ | 25 | Model | RTO auction clearing prices | ($7.20) to $19.30 | $1.40 | Dollars/MWH | |||||||||||||||||||||||||||||
NUG Contracts | $ | (151 | ) | Model | Generation | 500 to 4,756,000 | 950,000 | MWH | ||||||||||||||||||||||||||||
Regional electricity prices | $44.40 to $69.80 | $51.80 | Dollars/MWH | |||||||||||||||||||||||||||||||||
FES | ||||||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets | (In millions) | |||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 655 | $ | — | $ | 655 | $ | — | $ | 792 | $ | — | $ | 792 | ||||||||||||||||||||
Derivative assets - commodity contracts | 1 | 171 | — | 172 | 7 | 208 | — | 215 | ||||||||||||||||||||||||||||
Derivative assets - FTRs | — | — | 27 | 27 | — | — | 3 | 3 | ||||||||||||||||||||||||||||
Equity securities(1) | 360 | — | — | 360 | 207 | — | — | 207 | ||||||||||||||||||||||||||||
Foreign government debt securities | — | 57 | — | 57 | — | 65 | — | 65 | ||||||||||||||||||||||||||||
U.S. government debt securities | — | 46 | — | 46 | — | 27 | — | 27 | ||||||||||||||||||||||||||||
U.S. state debt securities | — | 4 | — | 4 | — | — | — | — | ||||||||||||||||||||||||||||
Other(2) | — | 199 | — | 199 | — | 176 | — | 176 | ||||||||||||||||||||||||||||
Total assets | $ | 361 | $ | 1,132 | $ | 27 | $ | 1,520 | $ | 214 | $ | 1,268 | $ | 3 | $ | 1,485 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Derivative liabilities - commodity contracts | $ | (26 | ) | $ | (141 | ) | $ | — | $ | (167 | ) | $ | (13 | ) | $ | (100 | ) | $ | — | $ | (113 | ) | ||||||||||||||
Derivative liabilities - FTRs | — | — | (13 | ) | (13 | ) | — | — | (11 | ) | (11 | ) | ||||||||||||||||||||||||
Total liabilities | $ | (26 | ) | $ | (141 | ) | $ | (13 | ) | $ | (180 | ) | $ | (13 | ) | $ | (100 | ) | $ | (11 | ) | $ | (124 | ) | ||||||||||||
Net assets (liabilities)(3) | $ | 335 | $ | 991 | $ | 14 | $ | 1,340 | $ | 201 | $ | 1,168 | $ | (8 | ) | $ | 1,361 | |||||||||||||||||||
(1) | NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index or the Wells Fargo Hybrid and Preferred Securities REIT index. | |||||||||||||||||||||||||||||||||||
(2) | Primarily consists of short-term cash investments. | |||||||||||||||||||||||||||||||||||
(3) | Excludes $44 million and $9 million as of December 31, 2014 and December 31, 2013, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | |||||||||||||||||||||||||||||||||||
Rollforward of Level 3 Measurements | ||||||||||||||||||||||||||||||||||||
The following table provides a reconciliation of changes in the fair value of FTRs held by FES and classified as Level 3 in the fair value hierarchy for the periods ended December 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||||||||
Derivative Asset | Derivative Liability | Net Asset/(Liability) | ||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
January 1, 2013 Balance | $ | 6 | $ | (6 | ) | $ | — | |||||||||||||||||||||||||||||
Unrealized loss | — | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||||
Purchases | 5 | (12 | ) | (7 | ) | |||||||||||||||||||||||||||||||
Settlements | (8 | ) | 9 | 1 | ||||||||||||||||||||||||||||||||
December 31, 2013 Balance | $ | 3 | $ | (11 | ) | $ | (8 | ) | ||||||||||||||||||||||||||||
Unrealized gain (loss) | 34 | (1 | ) | 33 | ||||||||||||||||||||||||||||||||
Purchases | 15 | (16 | ) | (1 | ) | |||||||||||||||||||||||||||||||
Settlements | (25 | ) | 15 | (10 | ) | |||||||||||||||||||||||||||||||
December 31, 2014 Balance | $ | 27 | $ | (13 | ) | $ | 14 | |||||||||||||||||||||||||||||
Level 3 Quantitative Information | ||||||||||||||||||||||||||||||||||||
The following table provides quantitative information for FTRs held by FES that are classified as Level 3 in the fair value hierarchy for the period ended December 31, 2014: | ||||||||||||||||||||||||||||||||||||
Fair Value, Net (In millions) | Valuation | Significant Input | Range | Weighted Average | Units | |||||||||||||||||||||||||||||||
Technique | ||||||||||||||||||||||||||||||||||||
FTRs | $ | 14 | Model | RTO auction clearing prices | ($7.20) to $19.30 | $1.10 | Dollars/MWH | |||||||||||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||||||||||
All temporary cash investments purchased with an initial maturity of three months or less are reported as cash equivalents on the Consolidated Balance Sheets at cost, which approximates their fair market value. Investments other than cash and cash equivalents include held-to-maturity securities, AFS securities and notes receivable. | ||||||||||||||||||||||||||||||||||||
At the end of each reporting period, FirstEnergy evaluates its investments for OTTI. Investments classified as AFS securities are evaluated to determine whether a decline in fair value below the cost basis is other than temporary. FirstEnergy first considers its intent and ability to hold an equity security until recovery and then considers, among other factors, the duration and the extent to which the security's fair value has been less than its cost and the near-term financial prospects of the security issuer when evaluating an investment for impairment. For debt securities, FirstEnergy considers its intent to hold the securities, the likelihood that it will be required to sell the securities before recovery of its cost basis and the likelihood of recovery of the securities' entire amortized cost basis. If the decline in fair value is determined to be other than temporary, the cost basis of the securities is written down to fair value. | ||||||||||||||||||||||||||||||||||||
Unrealized gains and losses on AFS securities are recognized in AOCI. However, unrealized losses held in the NDTs of FES, OE and TE are recognized in earnings since the trust arrangements, as they are currently defined, do not meet the required ability and intent to hold criteria in consideration of OTTI. | ||||||||||||||||||||||||||||||||||||
The investment policy for the NDT funds restricts or limits the trusts' ability to hold certain types of assets including private or direct placements, warrants, securities of FirstEnergy, investments in companies owning nuclear power plants, financial derivatives, securities convertible into common stock and securities of the trust funds' custodian or managers and their parents or subsidiaries. | ||||||||||||||||||||||||||||||||||||
AFS Securities | ||||||||||||||||||||||||||||||||||||
FirstEnergy holds debt and equity securities within its NDT, nuclear fuel disposal and NUG trusts. These trust investments are considered AFS securities, recognized at fair market value. FirstEnergy has no securities held for trading purposes. | ||||||||||||||||||||||||||||||||||||
The following table summarizes the amortized cost basis, unrealized gains (there were no unrealized losses) and fair values of investments held in NDT, nuclear fuel disposal and NUG trusts as of December 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||||||||
December 31, 2014(1) | December 31, 2013(2) | |||||||||||||||||||||||||||||||||||
Cost Basis | Unrealized Gains | Fair Value | Cost Basis | Unrealized Gains | Fair Value | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 1,724 | $ | 27 | $ | 1,751 | $ | 1,881 | $ | 33 | $ | 1,914 | ||||||||||||||||||||||||
FES | 788 | 13 | 801 | 918 | 17 | 935 | ||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 533 | $ | 58 | $ | 591 | $ | 308 | $ | 9 | $ | 317 | ||||||||||||||||||||||||
FES | 329 | 31 | 360 | 207 | — | 207 | ||||||||||||||||||||||||||||||
(1) | Excludes short-term cash investments: FE Consolidated - $241 million; FES - $204 million. | |||||||||||||||||||||||||||||||||||
(2) | Excludes short-term cash investments: FE Consolidated - $204 million; FES - $135 million. | |||||||||||||||||||||||||||||||||||
Proceeds from the sale of investments in AFS securities, realized gains and losses on those sales, OTTI and interest and dividend income for the three years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||||||||
December 31, 2014 | Sale Proceeds | Realized Gains | Realized Losses | OTTI | Interest and | |||||||||||||||||||||||||||||||
Dividend Income | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 2,133 | $ | 146 | $ | (75 | ) | $ | (37 | ) | $ | 96 | ||||||||||||||||||||||||
FES | 1,163 | 113 | (54 | ) | (33 | ) | 56 | |||||||||||||||||||||||||||||
December 31, 2013 | Sale Proceeds | Realized Gains | Realized Losses | OTTI | Interest and Dividend Income | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 2,047 | $ | 92 | $ | (46 | ) | $ | (90 | ) | $ | 101 | ||||||||||||||||||||||||
FES | 940 | 70 | (21 | ) | (79 | ) | 60 | |||||||||||||||||||||||||||||
December 31, 2012 | Sale Proceeds | Realized Gains | Realized Losses | OTTI | Interest and | |||||||||||||||||||||||||||||||
Dividend Income | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 2,980 | $ | 179 | $ | (83 | ) | $ | (16 | ) | $ | 70 | ||||||||||||||||||||||||
FES | 1,464 | 124 | (59 | ) | (14 | ) | 39 | |||||||||||||||||||||||||||||
Held-To-Maturity Securities | ||||||||||||||||||||||||||||||||||||
The following table provides the amortized cost basis, unrealized gains (there were no unrealized losses) and approximate fair values of investments in held-to-maturity securities as of December 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||
Cost Basis | Unrealized Gains | Fair Value | Cost Basis | Unrealized Gains | Fair Value | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 13 | $ | 4 | $ | 17 | $ | 33 | $ | 2 | $ | 35 | ||||||||||||||||||||||||
The held-to-maturity debt securities contractually mature by June 30, 2017. Investments in employee benefit trusts and cost and equity method investments, including FirstEnergy's investment in Global Holding, totaling $626 million as of December 31, 2014, and $636 million as of December 31, 2013, are excluded from the amounts reported above. | ||||||||||||||||||||||||||||||||||||
During 2012, FE increased its ownership interest in a cost method investment. The increased investment triggered a change in the investment accounting from the cost method to the equity method. As a result of this change, FE recorded a reduction of $9 million to retained earnings in 2012 to reflect the investment as if it had been historically accounted for under the equity method. | ||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS | ||||||||||||||||||||||||||||||||||||
All borrowings with initial maturities of less than one year are defined as short-term financial instruments under GAAP and are reported as Short-term borrowings on the Consolidated Balance Sheets at cost. Since these borrowings are short-term in nature, FirstEnergy believes that their costs approximate their fair market value. The following table provides the approximate fair value and related carrying amounts of long-term debt and other long-term obligations, excluding capital lease obligations and net unamortized premiums and discounts: | ||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 19,828 | $ | 21,733 | $ | 17,049 | $ | 17,957 | ||||||||||||||||||||||||||||
FES | 3,097 | 3,241 | 3,001 | 3,073 | ||||||||||||||||||||||||||||||||
The fair values of long-term debt and other long-term obligations reflect the present value of the cash outflows relating to those securities based on the current call price, the yield to maturity or the yield to call, as deemed appropriate at the end of each respective period. The yields assumed were based on securities with similar characteristics offered by corporations with credit ratings similar to those of FirstEnergy and its subsidiaries. FirstEnergy classified short-term borrowings, long-term debt and other long-term obligations as Level 2 in the fair value hierarchy as of December 31, 2014 and December 31, 2013. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS | ||||||||||||||||
FirstEnergy is exposed to financial risks resulting from fluctuating interest rates and commodity prices, including prices for electricity, natural gas, coal and energy transmission. To manage the volatility relating to these exposures, FirstEnergy’s Risk Policy Committee, comprised of senior management, provides general management oversight for risk management activities throughout FirstEnergy. The Risk Policy Committee is responsible for promoting the effective design and implementation of sound risk management programs and oversees compliance with corporate risk management policies and established risk management practice. FirstEnergy also uses a variety of derivative instruments for risk management purposes including forward contracts, options, futures contracts and swaps. | |||||||||||||||||
FirstEnergy accounts for derivative instruments on its Consolidated Balance Sheets at fair value unless they meet the normal purchases and normal sales criteria. Derivatives that meet those criteria are accounted for under the accrual method of accounting, and their effects are included in earnings at the time of contract performance. Changes in the fair value of derivative instruments that qualified and were designated as cash flow hedge instruments are recorded in AOCI. Changes in the fair value of derivative instruments that are not designated as cash flow hedge instruments are recorded in net income on a mark-to-market basis. FirstEnergy has contractual derivative agreements through 2020. | |||||||||||||||||
Cash Flow Hedges | |||||||||||||||||
FirstEnergy has used cash flow hedges for risk management purposes to manage the volatility related to exposures associated with fluctuating commodity prices and interest rates. The effective portion of gains and losses on a derivative contract is reported as a component of AOCI with subsequent reclassification to earnings in the period during which the hedged forecasted transaction affects earnings. | |||||||||||||||||
Total net unamortized gains (losses) included in AOCI associated with instruments previously designated as cash flow hedges totaled $(8) million and $2 million as of December 31, 2014 and December 31, 2013, respectively. Since the forecasted transactions remain probable of occurring, these amounts will be amortized into earnings over the life of the hedging instruments. Approximately $3 million is expected to be amortized to income during the next twelve months. | |||||||||||||||||
FirstEnergy has used forward starting swap agreements to hedge a portion of the consolidated interest rate risk associated with anticipated issuances of fixed-rate, long-term debt securities of its subsidiaries. These derivatives were treated as cash flow hedges, protecting against the risk of changes in future interest payments resulting from changes in benchmark U.S. Treasury rates between the date of hedge inception and the date of the debt issuance. No forward starting swap agreements designated as a cash flow hedge were outstanding as of December 31, 2014 or December 31, 2013. Total pre-tax unamortized losses included in AOCI associated with prior interest rate cash flow hedges totaled $50 million and $59 million as of December 31, 2014 and December 31, 2013, respectively. Based on current estimates, approximately $9 million will be amortized to interest expense during the next twelve months. | |||||||||||||||||
As of December 31, 2014 and December 31, 2013, no commodity or interest rate derivatives were designated as cash flow hedges. | |||||||||||||||||
Refer to Note 2, Accumulated Other Comprehensive Income, for reclassifications from AOCI during the years ended December 31, 2014 and 2013. | |||||||||||||||||
Fair Value Hedges | |||||||||||||||||
FirstEnergy has used fixed-for-floating interest rate swap agreements to hedge a portion of the consolidated interest rate risk associated with the debt portfolio of its subsidiaries. These derivative instruments were treated as fair value hedges of fixed-rate, long-term debt issues, protecting against the risk of changes in the fair value of fixed-rate debt instruments due to lower interest rates. As of December 31, 2014 and December 31, 2013, no fixed-for-floating interest rate swap agreements were outstanding. | |||||||||||||||||
Unamortized gains included in long-term debt associated with prior fixed-for-floating interest rate swap agreements totaled $32 million and $44 million as of December 31, 2014 and December 31, 2013, respectively. Based on current estimates, approximately $12 million will be amortized to interest expense during the next twelve months. Reclassifications from long-term debt into interest expense totaled approximately $12 million and $19 million during the years ended December 31, 2014 and 2013, respectively. In connection with the redemptions of senior notes in 2013 by FES, PN, and ME, and taxable bonds by CEI and OE, unamortized gains associated with fixed for floating interest rate swap agreements of $17 million were included in the Loss on debt redemptions in the Consolidated Statements of Income for the year ended December 31, 2013. | |||||||||||||||||
As of December 31, 2014 and December 31, 2013, no commodity or interest rate derivatives were designated as fair value hedges. | |||||||||||||||||
Commodity Derivatives | |||||||||||||||||
FirstEnergy uses both physically and financially settled derivatives to manage its exposure to volatility in commodity prices. Commodity derivatives are used for risk management purposes to hedge exposures when it makes economic sense to do so, including circumstances where the hedging relationship does not qualify for hedge accounting. | |||||||||||||||||
Electricity forwards are used to balance expected sales with expected generation and purchased power. Natural gas futures are entered into based on expected consumption of natural gas primarily for use in FirstEnergy’s combustion turbine units. Heating oil futures are entered into based on expected consumption of oil and the financial risk in FirstEnergy’s coal transportation contracts. Derivative instruments are not used in quantities greater than forecasted needs. | |||||||||||||||||
As of December 31, 2014, FirstEnergy's net asset position under commodity derivative contracts was $5 million, which related to FES positions. Under these commodity derivative contracts, FES posted $83 million of collateral. Certain commodity derivative contracts include credit risk related contingent features that would require FES to post $5 million of additional collateral if the credit rating for its debt were to fall below investment grade. | |||||||||||||||||
Based on derivative contracts held as of December 31, 2014, an adverse change of 10% in commodity prices would increase net income by approximately $1 million during the next twelve months. | |||||||||||||||||
Interest Rate Swaps | |||||||||||||||||
As of December 31, 2014 and December 31, 2013, no interest rate swaps were outstanding. | |||||||||||||||||
NUGs | |||||||||||||||||
As of December 31, 2014, FirstEnergy's net liability position under NUG contracts was $151 million representing contracts held at JCP&L, ME and PN. NUG contracts represent purchased power agreements with third-party non-utility generators that are transacted to satisfy certain obligations under PURPA. Changes in the fair value of NUG contracts are subject to regulatory accounting treatment and do not impact earnings. | |||||||||||||||||
FTRs | |||||||||||||||||
As of December 31, 2014, FirstEnergy's and FES' net asset position under FTRs was $25 million and $14 million, respectively and FES posted $5 million of collateral. FirstEnergy holds FTRs that generally represent an economic hedge of future congestion charges that will be incurred in connection with FirstEnergy’s load obligations. FirstEnergy acquires the majority of its FTRs in an annual auction through a self-scheduling process involving the use of ARRs allocated to members of an RTO that have load serving obligations and through the direct allocation of FTRs from the PJM RTO. The PJM RTO has a rule that allows directly allocated FTRs to be granted to LSEs in zones that have newly entered PJM. For the first two planning years, PJM permits the LSEs to request a direct allocation of FTRs in these new zones at no cost as opposed to receiving ARRs. The directly allocated FTRs differ from traditional FTRs in that the ownership of all or part of the FTRs may shift to another LSE if customers choose to shop with the other LSE. | |||||||||||||||||
The future obligations for the FTRs acquired at auction are reflected on the Consolidated Balance Sheets and have not been designated as cash flow hedge instruments. FirstEnergy initially records these FTRs at the auction price less the obligation due to the RTO, and subsequently adjusts the carrying value of remaining FTRs to their estimated fair value at the end of each accounting period prior to settlement. Changes in the fair value of FTRs held by FES and AE Supply are included in other operating expenses as unrealized gains or losses. Unrealized gains or losses on FTRs held by FirstEnergy’s utilities are recorded as regulatory assets or liabilities. Directly allocated FTRs are accounted for under the accrual method of accounting, and their effects are included in earnings at the time of contract performance. | |||||||||||||||||
FirstEnergy records the fair value of derivative instruments on a gross basis. The following table summarizes the fair value and classification of derivative instruments on FirstEnergy’s Consolidated Balance Sheets: | |||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | (In millions) | ||||||||||||||||
Current Assets - Derivatives | Current Liabilities - Derivatives | ||||||||||||||||
Commodity Contracts | $ | 121 | $ | 162 | Commodity Contracts | $ | (154 | ) | $ | (102 | ) | ||||||
FTRs | 38 | 4 | FTRs | (13 | ) | (9 | ) | ||||||||||
159 | 166 | (167 | ) | (111 | ) | ||||||||||||
Noncurrent Liabilities - Adverse Power Contract Liability | |||||||||||||||||
Deferred Charges and Other Assets - Other | NUGs | (153 | ) | (222 | ) | ||||||||||||
Commodity Contracts | 51 | 53 | Noncurrent Liabilities - Other | ||||||||||||||
FTRs | 1 | — | Commodity Contracts | (13 | ) | (11 | ) | ||||||||||
NUGs | 2 | 20 | FTRs | (1 | ) | (3 | ) | ||||||||||
54 | 73 | (167 | ) | (236 | ) | ||||||||||||
Derivative Assets | $ | 213 | $ | 239 | Derivative Liabilities | $ | (334 | ) | $ | (347 | ) | ||||||
FirstEnergy enters into contracts with counterparties that allow for net settlement of derivative assets and derivative liabilities. Certain of these contracts contain margining provisions that require the use of collateral to mitigate credit exposure between FirstEnergy and these counterparties. In situations where collateral is pledged to mitigate exposures related to derivative and non-derivative instruments with the same counterparty, FirstEnergy allocates the collateral based on the percentage of the net fair value of derivative instruments to the total fair value of the combined derivative and non-derivative instruments. The following tables summarize the fair value of derivative instruments on FirstEnergy’s Consolidated Balance Sheets and the effect of netting arrangements and collateral on its financial position: | |||||||||||||||||
Amounts Not Offset in Consolidated Balance Sheet | |||||||||||||||||
December 31, 2014 | Fair Value | Derivative Instruments | Cash Collateral (Received)/Pledged | Net Fair Value | |||||||||||||
(In millions) | |||||||||||||||||
Derivative Assets | |||||||||||||||||
Commodity contracts | $ | 172 | $ | (126 | ) | $ | — | $ | 46 | ||||||||
FTRs | 39 | (14 | ) | — | 25 | ||||||||||||
NUG contracts | 2 | — | — | 2 | |||||||||||||
$ | 213 | $ | (140 | ) | $ | — | $ | 73 | |||||||||
Derivative Liabilities | |||||||||||||||||
Commodity contracts | $ | (167 | ) | $ | 126 | $ | 35 | $ | (6 | ) | |||||||
FTRs | (14 | ) | 14 | — | — | ||||||||||||
NUG contracts | (153 | ) | — | — | (153 | ) | |||||||||||
$ | (334 | ) | $ | 140 | $ | 35 | $ | (159 | ) | ||||||||
Amounts Not Offset in Consolidated Balance Sheet | |||||||||||||||||
December 31, 2013 | Fair Value | Derivative Instruments | Cash Collateral (Received)/Pledged | Net Fair Value | |||||||||||||
(In millions) | |||||||||||||||||
Derivative Assets | |||||||||||||||||
Commodity contracts | $ | 215 | $ | (106 | ) | $ | (9 | ) | $ | 100 | |||||||
FTRs | 4 | (4 | ) | — | — | ||||||||||||
NUG contracts | 20 | — | — | 20 | |||||||||||||
$ | 239 | $ | (110 | ) | $ | (9 | ) | $ | 120 | ||||||||
Derivative Liabilities | |||||||||||||||||
Commodity contracts | $ | (113 | ) | $ | 106 | $ | 7 | $ | — | ||||||||
FTRs | (12 | ) | 4 | 5 | (3 | ) | |||||||||||
NUG contracts | (222 | ) | — | — | (222 | ) | |||||||||||
$ | (347 | ) | $ | 110 | $ | 12 | $ | (225 | ) | ||||||||
The following table summarizes the volumes associated with FirstEnergy’s outstanding derivative transactions as of December 31, 2014: | |||||||||||||||||
Purchases | Sales | Net | Units | ||||||||||||||
(In millions) | |||||||||||||||||
Power Contracts | 21 | 33 | (12 | ) | MWH | ||||||||||||
FTRs | 43 | — | 43 | MWH | |||||||||||||
NUGs | 6 | — | 6 | MWH | |||||||||||||
Natural Gas | 40 | — | 40 | mmBTU | |||||||||||||
The effect of derivative instruments not in a hedging relationship on the Consolidated Statements of Income during 2014 and 2013 are summarized in the following tables: | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
Commodity | FTRs | Interest Rate Swaps | Total | ||||||||||||||
Contracts | |||||||||||||||||
(In millions) | |||||||||||||||||
2014 | |||||||||||||||||
Unrealized Gain (Loss) Recognized in: | |||||||||||||||||
Other Operating Expense(1) | $ | (86 | ) | $ | 22 | $ | — | $ | (64 | ) | |||||||
Realized Gain (Loss) Reclassified to: | |||||||||||||||||
Revenues(2) | $ | (6 | ) | $ | 68 | $ | — | $ | 62 | ||||||||
Purchased Power Expense(3) | 365 | — | — | 365 | |||||||||||||
Other Operating Expense(4) | — | (44 | ) | — | (44 | ) | |||||||||||
Fuel Expense | (6 | ) | — | — | (6 | ) | |||||||||||
Interest Expense | — | — | 14 | 14 | |||||||||||||
(1) Includes ($86) million for commodity contracts and $21 million for FTRs associated with FES. | |||||||||||||||||
(2) Represents losses on structured financial contracts. Includes ($6) million for commodity contracts and $67 million for FTRs associated with FES. | |||||||||||||||||
(3) Realized losses on financially settled wholesale sales contracts of $252 million resulting from higher market prices were netted in purchased power. Includes $365 million for commodity contracts associated with FES. | |||||||||||||||||
(4) Includes ($43) million for FTRs associated with FES. | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
Commodity | FTRs | Total | |||||||||||||||
Contracts | |||||||||||||||||
(In millions) | |||||||||||||||||
2013 | |||||||||||||||||
Unrealized Gain (Loss) Recognized in: | |||||||||||||||||
Other Operating Expense(5) | $ | 11 | $ | (8 | ) | $ | 3 | ||||||||||
Realized Gain (Loss) Reclassified to: | |||||||||||||||||
Revenues(6) | $ | 46 | $ | 21 | $ | 67 | |||||||||||
Purchased Power Expense(7) | (38 | ) | — | (38 | ) | ||||||||||||
Other Operating Expense(8) | — | (36 | ) | (36 | ) | ||||||||||||
Fuel Expense | (2 | ) | — | (2 | ) | ||||||||||||
(5) Includes $11 million for commodity contracts and ($8) million for FTRs associated with FES. | |||||||||||||||||
(6) Includes $46 million for commodity contracts and $19 million for FTRs associated with FES. | |||||||||||||||||
(7) Includes ($38) million for commodity contracts associated with FES. | |||||||||||||||||
(8) Includes ($33) million for FTRs associated with FES. | |||||||||||||||||
The following table provides a reconciliation of changes in the fair value of FirstEnergy's derivative instruments subject to regulatory accounting during 2014 and 2013. Changes in the value of these contracts are deferred for future recovery from (or credit to) customers: | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
Derivatives Not in a Hedging Relationship with Regulatory Offset | NUGs | LCAPP(1) | Regulated FTRs | Total | |||||||||||||
(In millions) | |||||||||||||||||
Outstanding net liability as of January 1, 2014 | $ | (202 | ) | $ | — | $ | — | $ | (202 | ) | |||||||
Unrealized gain (loss) | (1 | ) | — | 13 | 12 | ||||||||||||
Purchases | — | — | 11 | 11 | |||||||||||||
Settlements | 52 | — | (13 | ) | 39 | ||||||||||||
Outstanding net asset (liability) as of December 31, 2014 | $ | (151 | ) | $ | — | $ | 11 | $ | (140 | ) | |||||||
Outstanding net liability as of January 1, 2013 | $ | (254 | ) | $ | (144 | ) | $ | — | $ | (398 | ) | ||||||
Unrealized gain (loss) | (23 | ) | (22 | ) | 4 | (41 | ) | ||||||||||
Purchases | — | — | (3 | ) | (3 | ) | |||||||||||
Terminations | — | 166 | — | 166 | |||||||||||||
Settlements | 75 | — | (1 | ) | 74 | ||||||||||||
Outstanding net liability as of December 31, 2013 | $ | (202 | ) | $ | — | $ | — | $ | (202 | ) | |||||||
(1) | LCAPP contracts are financially settled agreements associated with capacity in New Jersey. During the fourth quarter of 2013, all LCAPP contracts were terminated after being declared unconstitutional by the U.S. District Court for the District of New Jersey. |
Capitalization
Capitalization | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Capitalization, Long-term Debt and Equity [Abstract] | |||||||||||||||
Capitalization | CAPITALIZATION | ||||||||||||||
COMMON STOCK | |||||||||||||||
Retained Earnings and Dividends | |||||||||||||||
As of December 31, 2014, FirstEnergy’s unrestricted retained earnings were $2.3 billion. Dividends declared in 2014 were $1.44 per share, which included dividends of $0.36 per share paid in the first, second, third and fourth quarters of 2014. Dividends declared in 2013 were $1.65 per share, which included dividends of $0.55 per share paid in the second, third and fourth quarter of 2013. The amount and timing of all dividend declarations are subject to the discretion of the Board of Directors and its consideration of business conditions, results of operations, financial condition and other factors. On January 20, 2015 the Board of Directors declared a quarterly dividend of $0.36 per share to be paid in the first quarter of 2015. | |||||||||||||||
In addition to paying dividends from retained earnings, OE, CEI, TE, Penn, JCP&L, ME and PN have authorization from the FERC to pay cash dividends to FirstEnergy from paid-in capital accounts, as long as their FERC-defined equity to total capitalization ratio remains above 35%. In addition, TrAIL and AGC have authorization from the FERC to pay cash dividends to their respective parents from paid-in capital accounts, as long as their FERC-defined equity to total capitalization ratio remains above 45%. The articles of incorporation, indentures, regulatory limitations and various other agreements relating to the long-term debt of certain FirstEnergy subsidiaries contain provisions that could further restrict the payment of dividends on their common stock. None of these provisions materially restricted FirstEnergy’s subsidiaries’ abilities to pay cash dividends to FirstEnergy as of December 31, 2014. | |||||||||||||||
Stock Issuance | |||||||||||||||
In 2014, FE issued approximately 2 million shares of common stock to registered shareholders and its employees and the employees of its subsidiaries under its Stock Investment Plan and certain share-based benefit plan obligations. | |||||||||||||||
PREFERRED AND PREFERENCE STOCK | |||||||||||||||
FirstEnergy and the Utilities were authorized to issue preferred stock and preference stock as of December 31, 2014, as follows: | |||||||||||||||
Preferred Stock | Preference Stock | ||||||||||||||
Shares Authorized | Par Value | Shares Authorized | Par Value | ||||||||||||
FirstEnergy | 5,000,000 | $ | 100 | ||||||||||||
OE | 6,000,000 | $ | 100 | 8,000,000 | no par | ||||||||||
OE | 8,000,000 | $ | 25 | ||||||||||||
Penn | 1,200,000 | $ | 100 | ||||||||||||
CEI | 4,000,000 | no par | 3,000,000 | no par | |||||||||||
TE | 3,000,000 | $ | 100 | 5,000,000 | $ | 25 | |||||||||
TE | 12,000,000 | $ | 25 | ||||||||||||
JCP&L | 15,600,000 | no par | |||||||||||||
ME | 10,000,000 | no par | |||||||||||||
PN | 11,435,000 | no par | |||||||||||||
MP | 940,000 | $ | 100 | ||||||||||||
PE | 10,000,000 | $ | 0.01 | ||||||||||||
WP | 32,000,000 | no par | |||||||||||||
As of December 31, 2014, and 2013, there were no preferred or preference shares outstanding. | |||||||||||||||
LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS | |||||||||||||||
The following tables present outstanding long-term debt and capital lease obligations for FirstEnergy and FES as of December 31, 2014 and 2013: | |||||||||||||||
As of December 31, 2014 | As of December 31 | ||||||||||||||
(Dollar amounts in millions) | Maturity Date | Interest Rate | 2014 | 2013 | |||||||||||
FirstEnergy: | |||||||||||||||
FMBs | 2015 - 2044 | 3.340% - 9.740% | $ | 3,190 | $ | 3,166 | |||||||||
Secured notes - fixed rate | 2015 - 2037 | 0.000% - 7.880% | 1,793 | 1,804 | |||||||||||
Unsecured notes - fixed rate | 2015 - 2044 | 2.150% - 7.700% | 13,532 | 11,076 | |||||||||||
Unsecured notes - variable rate | 2015 - 2019 | 0.030% - 1.920% | 1,292 | 959 | |||||||||||
Total unsecured notes | 14,824 | 12,035 | |||||||||||||
Capital lease obligations | 160 | 188 | |||||||||||||
Unamortized debt premiums (discounts) | (8 | ) | 9 | ||||||||||||
Unamortized fair value adjustments | 21 | 44 | |||||||||||||
Currently payable long-term debt | (804 | ) | (1,415 | ) | |||||||||||
Total long-term debt and other long-term obligations | $ | 19,176 | $ | 15,831 | |||||||||||
FES: | |||||||||||||||
Secured notes - fixed rate | 2015 - 2017 | 0.000% - 12.000% | $ | 126 | $ | 188 | |||||||||
Unsecured notes - fixed rate | 2015 - 2039 | 2.150% - 6.800% | 2,879 | 2,077 | |||||||||||
Unsecured notes - variable rate | 2015 - 2015 | 0.030% - 0.050% | 92 | 736 | |||||||||||
Total unsecured notes | 2,971 | 2,813 | |||||||||||||
Capital lease obligations | 18 | 22 | |||||||||||||
Unamortized debt discounts | (1 | ) | (1 | ) | |||||||||||
Currently payable long-term debt | (506 | ) | (892 | ) | |||||||||||
Total long-term debt and other long-term obligations | $ | 2,608 | $ | 2,130 | |||||||||||
On March 31, 2014, FE, FES, AE Supply, FET and FE's other borrower subsidiaries entered into extensions and amendments to the three existing multi-year syndicated revolving credit facilities. Each Facility was extended until March 31, 2019. The FE facility was amended to increase the lending banks' commitments under the facility by $1 billion to a total of $3.5 billion and to increase the individual borrower sublimit for FE by $1 billion to a total of $3.5 billion. The FES/AE Supply facility was amended to decrease the lending banks' commitments by $1 billion to a total of $1.5 billion. The lending banks' commitments under the FET facility remain at $1 billion and that facility was amended to increase ATSI's individual borrower sublimit to $500 million from $100 million and TrAIL's individual borrower sublimit to $400 million from $200 million. FirstEnergy expensed approximately $5 million (FES -$3 million) of unamortized debt expense as a result of the amendments, included in Loss on Debt Redemptions in the Consolidated Statement of Income for the year ended December 31, 2014. | |||||||||||||||
On March 31, 2014, FE executed, and fully utilized, a new $1 billion variable rate term loan credit agreement with a maturity date of March 31, 2019. The initial borrowing under the term loan, which took the form of a Eurodollar rate advance, may be converted from time to time, in whole or in part, to alternate base rate advances or other Eurodollar rate advances. The proceeds from this term loan reduced borrowings under the FE Facility. | |||||||||||||||
During the first quarter of 2014, FG and NG remarketed approximately $235 million and $182 million, respectively, of PCRBs, previously held by the companies. The NG PCRBs were remarketed with a fixed interest rate of 4% per annum and a mandatory put date of June 3, 2019 and the FG PCRBs were remarketed with a fixed interest rate of 3.75% per annum and a mandatory put date of December 3, 2018. | |||||||||||||||
In addition, in the first quarter of 2014, FG and NG repurchased approximately $197 million and $16 million, respectively, of PCRBs, which were subject to a mandatory tender. The PCRBs have been remarketed in the second and third quarter as described below. Additionally, FG retired $50 million of PCRBs at maturity. | |||||||||||||||
During the first quarter of 2014, AE Supply returned $500 million of capital to FE. Additionally, FE contributed $500 million of equity to FES. | |||||||||||||||
On April 1, 2014, PN and ME repurchased approximately $45 million and $29 million of PCRBs, respectively, which were subject to a mandatory put on such date. The companies are currently holding the PCRBs for remarketing subject to future market and other conditions. Additionally, on April 1, 2014, ME retired $150 million of long-term debt at maturity. | |||||||||||||||
On May 19, 2014, FET issued $600 million of 4.35% senior notes due 2025 and $400 million of 5.45% senior notes due 2044. Proceeds received from the issuance of the senior notes were used to (i) repay borrowings under its revolving credit facility and the FirstEnergy unregulated companies' money pool; (ii) fund a capital contribution to ATSI; and (iii) for working capital needs and other general business purposes. | |||||||||||||||
On June 11, 2014, ME and PN issued $250 million of 4% senior notes due 2025 and $200 million of 4.15% senior notes due 2025, respectively. Proceeds received from the issuance of the senior notes were used to repay ME and PN's borrowings under the FirstEnergy revolving credit facility and the FirstEnergy regulated companies' money pool. | |||||||||||||||
In addition, in the second quarter of 2014, FG and NG remarketed approximately $57 million and $164 million, respectively, of PCRBs previously held by the companies. The bonds were remarketed with a fixed interest rate of 3.50% per annum and a mandatory put date of June 1, 2020. | |||||||||||||||
On September 25, 2014, ATSI issued $400 million of 5% senior notes due 2044. Proceeds received from the issuance of the senior notes were used: (i) to fund capital expenditures, including capital expenditures related to its transmission investment plans; and (ii) for working capital needs and other general business purposes. | |||||||||||||||
Also during the third quarter, FG and NG remarketed approximately $140.1 million and $101 million, respectively, of PCRBs. Of the total, approximately $45 million of PCRBs were remarketed by NG with a fixed interest rate of 3.63%, of which $15.5 million has a mandatory put date of June 1, 2020 and $29.5 million has a mandatory put date of April 1, 2020. NG also remarketed $56 million of PCRBs with a fixed interest rate of 3.95% and a mandatory put date of May 1, 2020; FG remarketed $50 million of PCRBs with a fixed interest rate of 3.10% and a mandatory put date of March 1, 2019; and $90.1 million of PCRBs with a fixed interest rate of 3.00% and a maturity date of May 15, 2019. | |||||||||||||||
On November 25, 2014, PE issued $200 million of 4.44% FMBs due November 15, 2044. Proceeds received from the issuance of the FMBs were used: (i) to refinance PE's outstanding $175 million of 5.35% FMBs due November 15, 2014; (ii) to repay PE's borrowings under the FirstEnergy regulated companies' money pool; and (iii) for other general business purposes. | |||||||||||||||
On December 1, 2014, NG repurchased approximately $26 million PCRBs, which were subject to a mandatory put on such date. NG is currently holding these PCRBs for remarketing subject to future market and other conditions. | |||||||||||||||
On December 11, 2014, TrAIL issued $550 million of 3.85% senior notes due June 1, 2025. Proceeds received from the issuance of the senior notes were used: (i) to repay TrAIL's outstanding $450 million of 4.00% senior notes due January 15, 2015; (ii) to fund capital expenditures; and (iii) for working capital needs and other general business purposes. | |||||||||||||||
On December 19, 2014, the maturity date for a $200 million term loan agreement for which FE is the borrower was extended an additional year to December 31, 2016. | |||||||||||||||
See Note 6, Leases for additional information related to capital leases. | |||||||||||||||
Securitized Bonds | |||||||||||||||
Environmental Control Bonds | |||||||||||||||
The consolidated financial statements of FirstEnergy include environmental control bonds issued by two bankruptcy remote, special purpose limited liability companies that are indirect subsidiaries of MP and PE. Proceeds from the bonds were used to construct environmental control facilities. The special purpose limited liability companies own the irrevocable right to collect non-bypassable environmental control charges from all customers who receive electric delivery service in MP's and PE's West Virginia service territories. Principal and interest owed on the environmental control bonds is secured by, and payable solely from, the proceeds of the environmental control charges. The right to collect environmental control charges is not included as an asset on FirstEnergy's consolidated balance sheets. Creditors of FirstEnergy, other than the special purpose limited liability companies, have no recourse to any assets or revenues of the special purpose limited liability companies. As of December 31, 2014 and 2013, $450 million and $472 million of environmental control bonds were outstanding, respectively. | |||||||||||||||
Transition Bonds | |||||||||||||||
The consolidated financial statements of FirstEnergy and JCP&L include the accounts of JCP&L Transition Funding and JCP&L Transition Funding II, wholly owned limited liability companies of JCP&L. In June 2002, JCP&L Transition Funding sold transition bonds to securitize the recovery of JCP&L’s bondable stranded costs associated with the previously divested Oyster Creek Nuclear Generating Station. In August 2006, JCP&L Transition Funding II sold transition bonds to securitize the recovery of deferred costs associated with JCP&L’s supply of BGS. JCP&L did not purchase and does not own any of the transition bonds, which are included as long-term debt on FirstEnergy’s and JCP&L’s Consolidated Balance Sheets. The transition bonds are the sole obligations of JCP&L Transition Funding and JCP&L Transition Funding II and are collateralized by each company’s equity and assets, which consist primarily of bondable transition property. As of December 31, 2014 and 2013, $168 million and $207 million of the transition bonds were outstanding, respectively. | |||||||||||||||
Phase-In Recovery Bonds | |||||||||||||||
In June 2013, the SPEs formed by the Ohio Companies issued approximately $445 million of pass-through trust certificates supported by phase-in recovery bonds to securitize the recovery of certain all electric customer heating discounts, fuel and purchased power regulatory assets. The phase-in recovery bonds were sold to a trust that concurrently sold a like aggregate amount of its pass through trust certificates to public investors. As of December 31, 2014 and 2013, $386 million and $445 million of the phase-in recovery bonds were outstanding, respectively. | |||||||||||||||
Other Long-term Debt | |||||||||||||||
The Ohio Companies, Penn, FG and NG each have a first mortgage indenture under which they can issue FMBs secured by a direct first mortgage lien on substantially all of their property and franchises, other than specifically excepted property. | |||||||||||||||
Based on the amount of FMBs authenticated by the respective mortgage bond trustees as of December 31, 2014, the sinking fund requirement for all FMBs issued under the various mortgage indentures amounted to payments of $8 million in 2014, all of which relate to Penn. Penn expects to meet its 2014 annual sinking fund requirement with a replacement credit under its mortgage indenture. | |||||||||||||||
As of December 31, 2014, FirstEnergy’s currently payable long-term debt included approximately $92 million of FES variable interest rate PCRBs, the bondholders of which are entitled to the benefit of irrevocable direct pay bank LOCs. The interest rates on the PCRBs are reset daily or weekly. Bondholders can tender their PCRBs for mandatory purchase prior to maturity with the purchase price payable from remarketing proceeds or, if the PCRBs are not successfully remarketed, by drawings on the irrevocable direct pay LOCs. The subsidiary obligor is required to reimburse the applicable LOC bank for any such drawings or, if the LOC bank fails to honor its LOC for any reason, must itself pay the purchase price. | |||||||||||||||
The following table presents scheduled debt repayments for outstanding long-term debt, excluding capital leases, fair value purchase accounting adjustments and unamortized debt discounts and premiums, for the next five years as of December 31, 2014. PCRBs that can be tendered for mandatory purchase prior to maturity are reflected in 2015. | |||||||||||||||
Year | FirstEnergy | FES | |||||||||||||
(In millions) | |||||||||||||||
2015 | $ | 769 | $ | 501 | |||||||||||
2016 | 1,241 | 416 | |||||||||||||
2017 | 1,641 | 163 | |||||||||||||
2018 | 1,687 | 501 | |||||||||||||
2019 | 2,266 | 322 | |||||||||||||
The following table classifies the outstanding fixed rate put PCRBs and variable rate PCRBs by year, excluding unamortized debt discounts and premiums, for the next five years based on the next date on which the debt holders may exercise their right to tender their PCRBs. | |||||||||||||||
Year | FirstEnergy | FES | |||||||||||||
(In millions) | |||||||||||||||
2015 | $ | 405 | $ | 405 | |||||||||||
2016 | 391 | 391 | |||||||||||||
2017 | 130 | 130 | |||||||||||||
2018 | 359 | 359 | |||||||||||||
2019 | 232 | 232 | |||||||||||||
Obligations to repay certain PCRBs are secured by several series of FMBs. Certain PCRBs are entitled to the benefit of irrevocable bank LOCs, to pay principal of, or interest on, the applicable PCRBs. To the extent that drawings are made under the LOCs, FG is entitled to a credit against its obligation to repay those bonds. FG pays annual fees based on the amounts of the LOCs to the issuing bank and is obligated to reimburse the bank for any drawings thereunder. | |||||||||||||||
The amounts and annual fees for PCRB-related LOCs for FirstEnergy and FES as of December 31, 2014, are as follows: | |||||||||||||||
Aggregate LOC Amount (1) | Annual Fees | ||||||||||||||
(In millions) | |||||||||||||||
FirstEnergy | $ | 93 | 1.65% | ||||||||||||
FES | 93 | 1.65% | |||||||||||||
-1 | Includes approximately $1 million of applicable interest | ||||||||||||||
coverage. | |||||||||||||||
Debt Covenant Default Provisions | |||||||||||||||
FirstEnergy has various debt covenants under certain financing arrangements, including its revolving credit facilities. The most restrictive of the debt covenants relate to the nonpayment of interest and/or principal on such debt and the maintenance of certain financial ratios. The failure by FirstEnergy to comply with the covenants contained in its financing arrangements could result in an event of default, which may have an adverse effect on its financial condition. As of December 31, 2014, FirstEnergy and FES remain in compliance with all debt covenant provisions. | |||||||||||||||
Additionally, there are cross-default provisions in a number of the financing arrangements. These provisions generally trigger a default in the applicable financing arrangement of an entity if it or any of its significant subsidiaries default under another financing arrangement in excess of a certain principal amount, typically $100 million. Although such defaults by any of the Utilities, ATSI or TrAIL would generally cross-default FE financing arrangements containing these provisions, defaults by any of AE Supply, FES, FG or NG would generally not cross-default to applicable financing arrangements of FE. Also, defaults by FE would generally not cross-default applicable financing arrangements of any of FE’s subsidiaries. Cross-default provisions are not typically found in any of the senior notes or FMBs of FE, FG, NG or the Utilities. |
ShortTerm_Borrowings_and_Bank_
Short-Term Borrowings and Bank Lines of Credit | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Short-term Borrowings and Bank Lines of Credit [Abstract] | |||||||||||||
SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT | SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT | ||||||||||||
FE and certain of its subsidiaries participate in three five-year syndicated revolving credit facilities with aggregate commitments of $6.0 billion (Facilities), which are available until March 31, 2019. FirstEnergy had $1,799 million and $3,404 million of short-term borrowings under the Facilities as of December 31, 2014 and 2013, respectively. FirstEnergy’s available liquidity under the Facilities as of January 31, 2015 was as follows: | |||||||||||||
Borrower(s) | Type | Maturity | Commitment | Available Liquidity | |||||||||
(In millions) | |||||||||||||
FirstEnergy(1) | Revolving | Mar-19 | $ | 3,500 | $ | 1,469 | |||||||
FES / AE Supply | Revolving | Mar-19 | 1,500 | 1,435 | |||||||||
FET(2) | Revolving | Mar-19 | 1,000 | 1,000 | |||||||||
Subtotal | $ | 6,000 | $ | 3,904 | |||||||||
Cash | — | 58 | |||||||||||
Total | $ | 6,000 | $ | 3,962 | |||||||||
-1 | FE and the Utilities | ||||||||||||
-2 | Includes FET, ATSI and TrAIL as subsidiary borrowers | ||||||||||||
Revolving Credit Facilities | |||||||||||||
FirstEnergy, FES/AE Supply and FET Facilities | |||||||||||||
On March 31, 2014, FE, FES, AE Supply, FET and FE's other borrower subsidiaries entered into extensions and amendments to the three existing multi-year syndicated revolving credit facilities. Each Facility was extended until March 31, 2019. The FE facility was amended to increase the lending banks' commitments under the facility by $1.0 billion to a total of $3.5 billion and to increase the individual borrower sublimit for FE by $1.0 billion to a total of $3.5 billion. The FES/AE Supply facility was amended to decrease the lending banks' commitments by $1.0 billion to a total of $1.5 billion. The lending banks' commitments under the FET facility remain at $1.0 billion and that facility was amended to increase ATSI's individual borrower sublimit to $500 million from $100 million and TrAIL's individual borrower sublimit to $400 million from $200 million. FirstEnergy expensed approximately $5 million (FES - $3 million) of unamortized debt expense as a result of the amendments, included in Loss on Debt Redemptions in the Consolidated Statement of Income for the year ended December 31, 2014. | |||||||||||||
Generally, borrowings under each of the Facilities are available to each borrower separately and mature on the earlier of 364 days from the date of borrowing or the commitment termination date, as the same may be extended. Each of the Facilities contains financial covenants requiring each borrower to maintain a consolidated debt to total capitalization ratio (as defined under each of the Facilities, as amended) of no more than 65%, and 75% for FET, measured at the end of each fiscal quarter. | |||||||||||||
The following table summarizes the borrowing sub-limits for each borrower under the Facilities, the limitations on short-term indebtedness applicable to each borrower under current regulatory approvals and applicable statutory and/or charter limitations, as of December 31, 2014: | |||||||||||||
Borrower | Revolving Credit Facility Sub-Limits | Regulatory and Other Short-Term Debt Limitations | |||||||||||
(In millions) | |||||||||||||
FE | $ | 3,500 | $ | — | (1) | ||||||||
FES | 1,500 | — | (2) | ||||||||||
AE Supply | 1,000 | — | (2) | ||||||||||
FET | 1,000 | — | (1) | ||||||||||
OE | 500 | 500 | (3) | ||||||||||
CEI | 500 | 500 | (3) | ||||||||||
TE | 500 | 500 | (3) | ||||||||||
JCP&L | 600 | 850 | (3) | ||||||||||
ME | 300 | 500 | (3) | ||||||||||
PN | 300 | 300 | (3) | ||||||||||
WP | 200 | 200 | (3) | ||||||||||
MP | 500 | 500 | (3) | ||||||||||
PE | 150 | 150 | (3) | ||||||||||
ATSI | 500 | 500 | (3) | ||||||||||
Penn | 50 | 50 | (3) | ||||||||||
TrAIL | 400 | 400 | (3) | ||||||||||
-1 | No limitations. | ||||||||||||
-2 | No limitation based upon blanket financing authorization from the FERC under existing market-based rate tariffs. | ||||||||||||
-3 | Excluding amounts which may be borrowed under the regulated companies' money pool. | ||||||||||||
The entire amount of the FES/AE Supply Facility, $600 million of the FE Facility and $225 million of the FET Facility, subject to each borrower’s sub-limit, is available for the issuance of LOCs (subject to borrowings drawn under the Facilities) expiring up to one year from the date of issuance. The stated amount of outstanding LOCs will count against total commitments available under each of the Facilities and against the applicable borrower’s borrowing sub-limit. | |||||||||||||
The Facilities do not contain provisions that restrict the ability to borrow or accelerate payment of outstanding advances in the event of any change in credit ratings of the borrowers. Pricing is defined in “pricing grids,” whereby the cost of funds borrowed under the Facilities is related to the credit ratings of the company borrowing the funds, other than the FET Facility, which is based on its subsidiaries' credit ratings. Additionally, borrowings under each of the Facilities are subject to the usual and customary provisions for acceleration upon the occurrence of events of default, including a cross-default for other indebtedness in excess of $100 million. | |||||||||||||
Term Loans | |||||||||||||
On March 31, 2014, FE executed, and fully utilized, a new $1 billion variable rate term loan credit agreement with a maturity date of March 31, 2019. The initial borrowing under the term loan, which took the form of a Eurodollar rate advance, may be converted from time to time, in whole or in part, to alternate base rate advances or other Eurodollar rate advances. The proceeds from this term loan reduced borrowings under the FE Facility. Additionally, FE has a $200 million variable rate term loan, for which the maturity was extended in December 2014 for an additional year to December 31, 2016. The term loan contains covenants and other terms and conditions substantially similar to FE's $1 billion variable rate term loan entered into on March 31, 2014 and FE's existing revolving credit facility, including the same consolidated debt to total capitalization ratio requirement. | |||||||||||||
As of December 31, 2014, FE was in compliance with the financial covenants associated with the applicable debt to total capitalization ratios under each of these term loans. | |||||||||||||
FirstEnergy Money Pools | |||||||||||||
FirstEnergy’s utility operating subsidiary companies also have the ability to borrow from each other and the holding company to meet their short-term working capital requirements. A similar but separate arrangement exists among FirstEnergy’s unregulated companies. FESC administers these two money pools and tracks surplus funds of FirstEnergy and the respective regulated and unregulated subsidiaries, as well as proceeds available from bank borrowings. Companies receiving a loan under the money pool agreements must repay the principal amount of the loan, together with accrued interest, within 364 days of borrowing the funds. The rate of interest is the same for each company receiving a loan from their respective pool and is based on the average cost of funds available through the pool. The average interest rate for borrowings in 2014 was 1.45% per annum for the regulated companies’ money pool and 1.35% per annum for the unregulated companies’ money pool. | |||||||||||||
Weighted Average Interest Rates | |||||||||||||
The weighted average interest rates on short-term borrowings outstanding, including borrowings under the FirstEnergy Money Pools, as of December 31, 2014 and 2013, were as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
FirstEnergy | 1.96 | % | 1.8 | % | |||||||||
FES | 3.34 | % | — | % |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Asset Retirement Obligation [Abstract] | |||||||||
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS | ||||||||
FirstEnergy has recognized applicable legal obligations for AROs and their associated cost primarily for nuclear power plant decommissioning, reclamation of sludge disposal ponds, closure of coal ash disposal sites, underground and above-ground storage tanks, wastewater treatment lagoons and transformers containing PCBs. In addition, FirstEnergy has recognized conditional retirement obligations, primarily for asbestos remediation. | |||||||||
The ARO liabilities for FES primarily relate to the decommissioning of the Beaver Valley, Davis-Besse and Perry nuclear generating facilities. FES uses an expected cash flow approach to measure the fair value of their nuclear decommissioning AROs. | |||||||||
FirstEnergy and FES maintain NDTs that are legally restricted for purposes of settling the nuclear decommissioning ARO. The fair values of the decommissioning trust assets as of December 31, 2014 and 2013 were as follows: | |||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
FirstEnergy | $ | 2,341 | $ | 2,201 | |||||
FES | $ | 1,365 | $ | 1,276 | |||||
The following table summarizes the changes to the ARO balances during 2014 and 2013: | |||||||||
ARO Reconciliation | FirstEnergy | FES | |||||||
(In millions) | |||||||||
Balance, January 1, 2013 | $ | 1,599 | $ | 965 | |||||
Liabilities settled | (18 | ) | (18 | ) | |||||
Accretion | 115 | 71 | |||||||
Revisions in estimated cash flows | (18 | ) | (3 | ) | |||||
Balance, December 31, 2013 | $ | 1,678 | $ | 1,015 | |||||
Liabilities settled | (9 | ) | (7 | ) | |||||
Accretion | 113 | 66 | |||||||
Revisions in estimated cash flows | (395 | ) | (233 | ) | |||||
Balance, December 31, 2014 | $ | 1,387 | $ | 841 | |||||
During 2013, revisions to estimated cash flows as a result of increased cost estimates for the closure of LBR increased the associated ARO liability of FES by $163 million. The revised cost estimates were the result of a Closure Plan submitted to the PA DEP by FG on March 28, 2013, which provides for placing a final cap over LBR, and a response to a technical deficiency letter issued by the PA DEP on October 3, 2013. See Note 15, Commitments, Guarantees, and Contingencies for additional information related to the closure of LBR. | |||||||||
During the third quarter of 2013, studies were completed to update the estimated cost of asbestos remediation for FirstEnergy and FES. The cost studies resulted in a revision to the estimated cash flows associated with the ARO liabilities of FirstEnergy and FES and increased the liability by $12 million and $5 million, respectively. | |||||||||
During the fourth quarter of 2013, revisions to estimated nuclear decommissioning cash flows associated with the ARO liability of FirstEnergy and FES decreased the liability by $193 million and $171 million, respectively. The revision in estimates for the ARO balances is the result of a decommissioning study that was completed by a third-party in connection with Davis-Besse’s license renewal that was submitted to the NRC in February 2014. The most significant revision from this study was related to accelerating the expected date when the DOE would begin to accept spent fuel, to be more in line with the industry assumptions. Additionally, FirstEnergy also updated and revised its estimates for Perry and Beaver Valley Units 1 and 2, in a consistent manner. | |||||||||
During the fourth quarter of 2014, based on studies completed by a third-party to reassess the estimated costs of decommissioning certain nuclear generating facilities, FE decreased its ARO by $395 million ($233 million at FES) of which $133 million was credited against a regulatory asset associated with nuclear decommissioning and spent fuel disposal costs for TMI-2. The decrease in the ARO primarily resulted from an extension in the number of years in which decommissioning activities are estimated to occur at Davis-Besse, Perry, TMI-2 and Beaver Valley Units 1 and 2. |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | |
Dec. 31, 2014 | ||
Regulated Operations [Abstract] | ||
REGULATORY MATTERS | REGULATORY MATTERS | |
STATE REGULATION | ||
Each of the Utilities' retail rates, conditions of service, issuance of securities and other matters are subject to regulation in the states in which it operates - in Maryland by the MDPSC, in Ohio by the PUCO, in New Jersey by the NJBPU, in Pennsylvania by the PPUC, in West Virginia by the WVPSC and in New York by the NYPSC. The transmission operations of PE in Virginia are subject to certain regulations of the VSCC. In addition, under Ohio law, municipalities may regulate rates of a public utility, subject to appeal to the PUCO if not acceptable to the utility. | ||
As competitive retail electric suppliers serving retail customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland, FES and AE Supply are subject to state laws applicable to competitive electric suppliers in those states, including affiliate codes of conduct that apply to FES, AE Supply and their public utility affiliates. In addition, if any of the FirstEnergy affiliates were to engage in the construction of significant new transmission or generation facilities, depending on the state, they may be required to obtain state regulatory authorization to site, construct and operate the new transmission or generation facility. | ||
MARYLAND | ||
PE provides SOS pursuant to a combination of settlement agreements, MDPSC orders and regulations, and statutory provisions. SOS supply is competitively procured in the form of rolling contracts of varying lengths through periodic auctions that are overseen by the MDPSC and a third party monitor. Although settlements with respect to residential SOS for PE customers expired on December 31, 2012, by statute, service continues in the same manner unless changed by order of the MDPSC. The settlement provisions relating to non-residential SOS have also expired; however, by MDPSC order, the terms of service remain in place unless PE requests or the MDPSC orders a change. PE recovers its costs plus a return for providing SOS. | ||
The Maryland legislature adopted a statute in 2008 codifying the EmPOWER Maryland goals to reduce electric consumption by 10% and reduce electricity demand by 15%, in each case by 2015. PE's initial plan submitted in compliance with the statute was approved in 2009, at which time expenditures were estimated to be approximately $101 million for the PE programs for the entire period of 2009-2015. PE's third plan, covering the three-year period 2015-2017, was approved by the MDPSC on December 23, 2014. The projected costs of the 2015-2017 plan are approximately $64 million for that three year period. PE continues to recover program costs subject to a five-year amortization. Maryland law only allows for the utility to recover lost distribution revenue attributable to energy efficiency or demand reduction programs through a base rate case proceeding, and to date such recovery has not been sought or obtained by PE. | ||
The MDPSC adopted rules, effective May 28, 2012, that set utility-specific SAIDI and SAIFI targets for 2012-2015; prescribed detailed tree-trimming requirements, outage restoration and downed wire response deadlines; imposed other reliability and customer satisfaction requirements; and established annual reporting requirements. The MDPSC is required to assess each utility's compliance with the new rules, and may assess penalties of up to $25,000 per day, per violation. The MDPSC issued orders accepting PE's reports on compliance under the new rules on September 3, 2013 and August 27, 2014. | ||
On February 27, 2013, the MDPSC issued an order (the February 27 Order) requiring the Maryland electric utilities to submit analyses, relating to the costs and benefits of making further system and staffing enhancements in order to attempt to reduce storm outage durations. The order further required the Staff of the MDPSC to report on possible performance-based rate structures and to propose additional rules relating to feeder performance standards, outage communication and reporting, and sharing of special needs customer information. PE's final filing on September 3, 2013, discussed the steps needed to harden the utility's system in order to attempt to achieve various levels of storm response speed described in the February 27 Order, and projected that it would require approximately $2.7 billion in infrastructure investments over 15 years to attempt to achieve the quickest level of response for the largest storm projected in the February 27 Order. On July 1, 2014, the Staff of the MDPSC issued a set of reports that recommended the imposition of extensive additional requirements in the areas of storm response, feeder performance, estimates of restoration times, and regulatory reporting. The Staff also recommended the imposition of penalties, including customer rebates, for a utility's failure or inability to comply with the escalating standards of storm restoration speed proposed by the Staff. In addition, the Staff proposed that the utilities be required to develop and implement system hardening plans, up to a rate impact cap on cost. The MDPSC conducted a hearing September 15-18, 2014, to consider certain of these matters, and has not yet scheduled further proceedings on any of the matters. | ||
NEW JERSEY | ||
JCP&L currently provides BGS for retail customers who do not choose a third party EGS and for customers of third party EGSs that fail to provide the contracted service. The supply for BGS, which is comprised of two components, is provided through contracts procured through separate, annually held descending clock auctions, the results of which are approved by the NJBPU. One BGS component and auction, reflecting hourly real time energy prices, is available for larger commercial and industrial customers. The other BGS component and auction, providing a fixed price service, is intended for smaller commercial and residential customers. All New Jersey EDCs participate in this competitive BGS procurement process and recover BGS costs directly from customers as a charge separate from base rates. | ||
In an order issued July 31, 2012, the NJBPU ordered JCP&L to file a base rate case using a historical 2011 test year. The rate case petition was filed on November 30, 2012 by JCP&L requesting approval to increase revenues by approximately $31 million, which included the recovery of 2011 storm restoration costs but excluded approximately $603 million of costs incurred in 2012 associated with the impact of Hurricane Sandy. In the initial briefs of the parties, the Division of Rate Counsel recommended that base rate revenues be reduced by $214.9 million while the NJBPU Staff recommended a $207.4 million reduction (such amounts do not address the revenue requirements associated with the major storm events of 2011 and 2012). On May 5, 2014, JCP&L submitted updated schedules to reflect the result of the generic storm cost proceeding, discussed below, to revise the debt rate to 5.93%, and to request that base rate revenues be increased by $9.1 million, including the recovery of 2011 storm costs. The record in the case was closed as of June 30, 2014. The ALJ provided his initial Decision on January 8, 2015, which recommended an annual revenue reduction of $107.5 million and did not include the recovery of 2012 storm costs or any CTA. On February 11, 2015, the NJBPU approved a 45-day extension to render a final decision. | ||
On January 23, 2013, the NJBPU opened a generic proceeding to review its policies with respect to the use of a CTA in base rate cases. The NJBPU and its Staff solicited, and were provided, input from interested stakeholders, including utilities and the Division of Rate Counsel. On June 18, 2014, the NJBPU Staff proposed to amend current CTA policy by: 1) calculating savings using a 5 year look back from the beginning of the test year; 2) allocating savings with 75% retained by the company and 25% allocated to rate payers; and 3) excluding transmission assets of electric distribution companies in the savings calculation. JCP&L and other stakeholders filed written comments on the Staff proposal. In its Order issued October 22, 2014, the NJBPU stated it would continue to apply its current CTA policy in base rate cases, subject to incorporating the staff proposed modifications (as discussed above). For pending base rate cases in which the record had closed, such as JCP&L’s, the NJBPU would, following an initial decision of the ALJ, reopen the record for the limited purpose of adding a CTA calculation reflecting the modified policy and allow parties the opportunity to comment. FirstEnergy expects the application of the modified policy in the pending JCP&L base rate case to reduce annual revenues by approximately $5 million. On November 5, 2014, the Division of Rate Counsel appealed the NJBPU Order to the New Jersey Superior Court. JCP&L has filed to participate as a respondent in that proceeding. | ||
On March 20, 2013, the NJBPU ordered that a generic proceeding be established to investigate the prudence of costs incurred by all New Jersey utilities for service restoration efforts associated with the major storm events of 2011 and 2012. The Order provided that if any utility had already filed a proceeding for recovery of such storm costs, to the extent the amount of approved recovery had not yet been determined, the prudence of such costs would be reviewed in the generic proceeding. On May 31, 2013, the NJBPU clarified its earlier order to indicate that the 2011 major storm costs would be reviewed expeditiously in the generic proceeding, with the goal of maintaining the base rate case schedule established by the ALJ where recovery of such costs would be addressed. The NJBPU further indicated that it would review the 2012 major storm costs in the generic proceeding and the recovery of such costs would be considered through a Phase II in the existing base rate case or through another appropriate method to be determined at the conclusion of the generic proceeding. On June 21, 2013, JCP&L filed a detailed report in support of recovery of major storm costs with the NJBPU. On February 24, 2014, a Stipulation was filed with the NJBPU by JCP&L, the Division of Rate Counsel and NJBPU Staff which will allow recovery of $736 million of JCP&L’s $744 million of costs related to the significant weather events of 2011 and 2012. As a result, FirstEnergy recorded a regulatory asset impairment charge of approximately $8 million (pre-tax) as of December 31, 2013. By its Order of March 19, 2014, the NJBPU approved the Stipulation of Settlement. Although the settlement permits recovery of 2011 and 2012 storm costs, the recovery of the 2011 costs will be addressed in the pending base rate case; whereas the manner and timing of recovery of the 2012 storm costs totaling $580 million will be determined by the NJBPU. | ||
OHIO | ||
The Ohio Companies primarily operate under their ESP 3 plan which expires on May 31, 2016. The material terms of ESP 3 include: | ||
• | Continuing the current base distribution rate freeze through May 31, 2016; | |
• | Continues collection of lost distribution revenues associated with energy efficiency and peak demand reduction programs; | |
• | Continuing to provide economic development and assistance to low-income customers for the two-year plan period at levels established in the prior ESP; | |
• | A 6% generation rate discount to certain low income customers provided by the Ohio Companies through a bilateral wholesale contract with FES (FES is one of the wholesale suppliers to the Ohio Companies); | |
• | Continuing to provide power to non-shopping customers at a market-based price set through an auction process; | |
• | Continuing Rider DCR that allows continued investment in the distribution system for the benefit of customers; | |
• | Continuing commitment not to recover from retail customers certain costs related to transmission cost allocations for the longer of the five-year period from June 1, 2011 through May 31, 2016 or when the amount of costs avoided by customers for certain types of products totals $360 million, subject to the outcome of certain FERC proceedings; | |
• | Securing generation supply for a longer period of time by conducting an auction for a three-year period rather than a one-year period, in each of October 2012 and January 2013, to mitigate any potential price spikes for the Ohio Companies' utility customers who do not switch to a competitive generation supplier; and | |
• | Extending the recovery period for costs associated with purchasing RECs mandated by SB221, Ohio's renewable energy and energy efficiency standard, through the end of the new ESP 3 period. This is expected to initially reduce the monthly renewable energy charge for all non-shopping utility customers of the Ohio Companies by spreading out the costs over the entire ESP period. | |
Notices of appeal of the Ohio Companies' ESP 3 plan to the Supreme Court of Ohio were filed by the Northeast Ohio Public Energy Council and the ELPC. The matter has not yet been scheduled for oral argument. | ||
The Ohio Companies filed an application with the PUCO on August 4, 2014 seeking approval of their ESP IV entitled Powering Ohio's Progress. The Ohio Companies have requested a decision by the PUCO by April 8, 2015. The Ohio Companies filed a partial Stipulation and Recommendation on December 22, 2014. The evidentiary hearing on the ESP IV is scheduled to commence on April 13, 2015. The material terms of the proposed plan include: | ||
• | Continuing a base distribution rate freeze through May 31, 2019; | |
• | Continuing collection of lost distribution revenues associated with energy efficiency and peak demand reduction programs; | |
• | Providing economic development and assistance to low-income customers for the three-year plan period; | |
• | An Economic Stability Program providing for a retail rate stability rider to flow through charges or credits representing the net result of the costs paid to FES through a proposed 15-year purchase power agreement for the output of Sammis, Davis-Besse and FES’ share of OVEC against the revenues received from selling the output into the PJM markets over the same period; | |
• | Continuing to provide power to non-shopping customers at a market-based price set through an auction process; | |
• | Continuing Rider DCR with increased revenue caps of approximately $30 million per year that allows continued investment supporting the distribution system for the benefit of customers; | |
• | A commitment not to recover from retail customers certain costs related to transmission cost allocations for the longer of the five-year period from June 1, 2011 through May 31, 2016 or when the amount of such costs avoided by customers for certain types of products totals $360 million, including appropriately such costs from MISO along with such costs from PJM, subject to the outcome of certain FERC proceedings; and | |
• | General updates to electric service regulations and tariffs to reflect regulatory orders, administrative rule changes, and current practices. | |
Under Ohio's energy efficiency standards (SB221 and SB310), and the Ohio Companies' filing of amended energy efficiency plans, the Ohio Companies are required to implement energy efficiency programs that achieve a total annual energy savings equivalent of approximately 2,237 GWHs in 2014, 2015 and 2016. The Ohio Companies are also required to reduce peak demand in 2009 by 1%, with an additional 0.75% reduction each year thereafter through 2014, and retain the 2014 level for 2015 and 2016, and then increase the benchmark by an additional 0.75% thereafter through 2020. | ||
On March 20, 2013, the PUCO approved the three-year energy efficiency portfolio plans for 2013-2015, estimated to cost the Ohio Companies approximately $250 million over the three-year period, which is expected to be recovered in rates. Applications for rehearing were filed by the Ohio Companies and several other parties. On July 17, 2013, the PUCO denied the Ohio Companies' application for rehearing, in part, but authorized the Ohio Companies to receive 20% of any revenues obtained from offering energy efficiency and DR reserves into the PJM auction. The PUCO also confirmed that the Ohio Companies can recover PJM costs and applicable penalties associated with PJM auctions, including the costs of purchasing replacement capacity from PJM incremental auctions, to the extent that such costs or penalties are prudently incurred. On August 16, 2013, ELPC and OCC filed applications for rehearing, which were granted for the sole purpose of further consideration of the issue. On September 24, 2014, the Ohio Companies filed an amendment to their portfolio plan as contemplated by SB310, seeking to suspend certain programs for the 2015-2016 period in order to better align the plan with the new benchmarks under SB310. On November 20, 2014, the PUCO approved the Ohio Companies' amended portfolio plan. Several applications for rehearing were filed, and the PUCO granted those applications for further consideration of the matters specified in those applications. | ||
On September 16, 2013, the Ohio Companies filed with the Supreme Court of Ohio a notice of appeal of the PUCO's July 17, 2013 Entry on Rehearing related to energy efficiency, alternative energy, and long-term forecast rules stating that the rules issued by the PUCO are inconsistent with, and are not supported by, statutory authority. On October 23, 2013, the PUCO filed a motion to dismiss the appeal, which is still pending. The matter has not been scheduled for oral argument. | ||
Ohio law requires electric utilities and electric service companies in Ohio to serve part of their load from renewable energy resources measured by an annually increasing percentage amount through 2024, except 2015 and 2016 that remain at the 2014 level. The Ohio Companies conducted RFPs in 2009, 2010 and 2011 to secure RECs to help meet these renewable energy requirements. In September 2011, the PUCO opened a docket to review the Ohio Companies' alternative energy recovery rider through which the Ohio Companies recover the costs of acquiring these RECs. The PUCO issued an Opinion and Order on August 7, 2013 approving the Ohio Companies' acquisition process and their purchases of RECs to meet statutory mandates in all instances except for part of the purchases arising from one auction and directing the Ohio Companies to credit non-shopping customers in the amount of $43.4 million, plus interest, on the basis that the Ohio Companies did not prove such purchases were prudent. Based on the PUCO ruling, a regulatory charge of approximately $51 million, including interest, was recorded in the fourth quarter of 2013. On December 24, 2013, following the denial of their application for rehearing, the Ohio Companies filed a notice of appeal and a motion for stay of the PUCO's order with the Supreme Court of Ohio, which was granted. On February 18, 2014, the OCC and the ELPC also filed appeals of the PUCO's order. The Ohio Companies filed their merit brief with the Supreme Court of Ohio on March 6, 2014 and the briefing process concluded on December 24, 2014. The matter is not yet scheduled for oral argument. | ||
On April 9, 2014, the PUCO initiated a generic investigation of marketing practices in the competitive retail electric service market, with a focus on the marketing of fixed-price or guaranteed percent-off SSO rate contracts where there is a provision that permits the pass-through of new or additional charges. | ||
PENNSYLVANIA | ||
The Pennsylvania Companies currently operate under DSPs that expire on May 31, 2015, and provide for the competitive procurement of generation supply for customers that do not choose an alternative EGS or for customers of alternative EGSs that fail to provide the contracted service. The default service supply is currently provided by wholesale suppliers through a mix of long-term and short-term contracts procured through descending clock auctions, competitive requests for proposals and spot market purchases. On July 24, 2014, the PPUC unanimously approved a settlement of the Pennsylvania Companies' DSPs for the period of June 1, 2015 through May 31, 2017, that provides for quarterly descending clock auctions to procure 3, 12 and 24-month energy contracts, as well as one RFP seeking 2-year contracts to secure SRECs for ME, PN and Penn. | ||
The PPUC entered an Order on March 3, 2010 that denied the recovery of marginal transmission losses through the TSC rider for the period of June 1, 2007 through March 31, 2008, and directed ME and PN to submit a new tariff or tariff supplement reflecting the removal of marginal transmission losses from the TSC. Pursuant to a plan approved by the PPUC, ME and PN refunded those amounts to customers over 29-months concluding in the second quarter of 2013. On appeal, the Commonwealth Court affirmed the PPUC's Order to the extent that it holds that line loss costs are not transmission costs and, therefore, the approximately $254 million in marginal transmission losses and associated carrying charges for the period prior to January 1, 2011, are not recoverable under ME's and PN's TSC riders. The Pennsylvania Supreme Court denied ME's and PN's Petition for Allowance of Appeal and the Supreme Court of the United States denied ME's and PN's Petition for Writ of Certiorari. The U.S. District Court for the Eastern District of Pennsylvania granted the PPUC's motion to dismiss the complaint filed by ME and PN to obtain an order that would enjoin enforcement of the PPUC and Pennsylvania court orders under a theory of federal preemption on the question of retail rate recovery of the marginal transmission loss charges. As a result of the U.S. District Court's decision, FirstEnergy recorded a regulatory asset impairment charge of approximately $254 million (pre-tax) in the quarter ended September 30, 2013. On appeal, on September 16, 2014, in a split decision, two judges of a three-judge panel of the United States Court of Appeals for the Third Circuit affirmed the U.S. District Court's dismissal of the complaint, agreeing that ME and PN had litigated the issue in the state proceedings and thus were precluded from subsequent litigation in federal court. On September 30, 2014, ME and PN filed for rehearing and rehearing en banc before the Third Circuit and, on October 15, 2014, the Third Circuit rejected that rehearing request. ME and PN filed a Petition for Certiorari with the U.S. Supreme Court on February 12, 2015. | ||
Pursuant to Pennsylvania's EE&C legislation (Act 129 of 2008), the PPUC was charged with reviewing the cost effectiveness of energy efficiency and peak demand reduction programs. The PPUC found the energy efficiency programs to be cost effective and directed all of the electric utilities in Pennsylvania to submit by November 15, 2012, a Phase II EE&C Plan that would be in effect for the period June 1, 2013 through May 31, 2016. The PPUC deferred ruling on the need to create peak demand reduction targets and did not include a peak demand reduction requirement in the Phase II plans. On March 14, 2013, the PPUC adopted a settlement among the Pennsylvania Companies and interested parties and approved the Pennsylvania Companies' Phase II EE&C Plans for the period 2013-2016. Total costs of these plans are expected to be approximately $234 million and recoverable through the Pennsylvania Companies' reconcilable EE&C riders. | ||
On August 4, 2014, the Pennsylvania Companies each filed tariffs with the PPUC proposing general rate increases associated with their distribution operations. The filings request approval to increase operating revenues by approximately $151.9 million at ME, $119.8 million at PN, $28.5 million at Penn, and $115.5 million at WP based upon fully projected future test years for the twelve months ending April 30, 2016 at each of the Pennsylvania Companies. On February 3, 2015, each of the Pennsylvania Companies filed a Joint Petition for Settlement seeking PPUC approval of the agreements reached in each proceeding which included, among other things: 1) increases in current distribution revenues of $89.3 million for ME, $90.8 million for PN, $15.9 million for Penn and $96.8 million for WP; 2) a Universal Services Charge Rider to be established for WP; 3) storm reserve accounts for future storm recovery to be established for each of the Pennsylvania Companies; and 4) certain other operational and customer service-related provisions. The sole issue reserved for briefing was with respect to the scope and pricing of the Companies' proposed LED offerings. Orders on the proposed increases are expected in May 2015. | ||
WEST VIRGINIA | ||
On April 30, 2014, MP and PE filed a rate case, as amended on June 13, 2014, requesting a base rate increase of approximately $104 million, or 9.9%, based on an historic 2013 test year. The filing also included a request for an additional $48 million to recover by surcharge costs for new and existing vegetation management programs. On November 3, 2014, a Joint Stipulation was submitted by all parties which settled all issues in the proceeding. The settlement includes, among other things: a $15 million increase in base rate revenues effective February 25, 2015; the implementation of a Vegetation Management Surcharge effective February 25, 2015 to recover all costs related to both new and existing vegetation maintenance programs; authority to establish a regulatory asset for MATS investments placed into service in 2016 and 2017; authority to defer, amortize and recover over a 5-year period approximately $46 million of storm restoration costs; and elimination of the Temporary Transaction Surcharge for costs associated with MP's acquisition of the Harrison plant in October 2013 and movement of those costs into base rates effective February 25, 2015. On February 3, 2015, the WVPSC approved the settlement in full and without modification. MP and PE's new rates will go into effect February 25, 2015. | ||
On August 29, 2014, MP and PE filed their annual ENEC case proposing an approximate $65.8 million annual increase in ENEC rates, which is a 5.7% overall increase to existing rates. The increase is comprised of an actual $51.6 million under-recovered balance as of June 30, 2014, and a projected $14.2 million in under-recovery for the 2015 rate effective period. A settlement was reached by all the parties, which was filed with the WVPSC on December 2, 2014. The parties agreed to defer $16.8 million of the energy portion of the under-recovery balance for medium and large customers for one year at a carrying cost of 4% in order to mitigate the proposed rate impact to those customers. The settlement permits MP and PE to recover all of their costs incurred during the two year review period and closes the review period except for two coal issues for further review in next year’s ENEC case. On January 29, 2015, the WVPSC approved the settlement in full without modification and new ENEC rates will go into effect February 25, 2015. | ||
RELIABILITY MATTERS | ||
Federally-enforceable mandatory reliability standards apply to the bulk electric system and impose certain operating, record-keeping and reporting requirements on the Utilities, FES, AE Supply, FG, FENOC, NG, ATSI and TrAIL. NERC is the ERO designated by FERC to establish and enforce these reliability standards, although NERC has delegated day-to-day implementation and enforcement of these reliability standards to eight regional entities, including RFC. All of FirstEnergy's facilities are located within the RFC region. FirstEnergy actively participates in the NERC and RFC stakeholder processes, and otherwise monitors and manages its companies in response to the ongoing development, implementation and enforcement of the reliability standards implemented and enforced by RFC. | ||
FirstEnergy believes that it is in compliance with all currently-effective and enforceable reliability standards. Nevertheless, in the course of operating its extensive electric utility systems and facilities, FirstEnergy occasionally learns of isolated facts or circumstances that could be interpreted as excursions from the reliability standards. If and when such occurrences are found, FirstEnergy develops information about the occurrence and develops a remedial response to the specific circumstances, including in appropriate cases “self-reporting” an occurrence to RFC. Moreover, it is clear that NERC, RFC and FERC will continue to refine existing reliability standards as well as to develop and adopt new reliability standards. Any inability on FirstEnergy's part to comply with the reliability standards for its bulk electric system could result in the imposition of financial penalties that could have a material adverse effect on its financial condition, results of operations and cash flows. | ||
FERC MATTERS | ||
PJM Transmission Rates | ||
PJM and its stakeholders have been debating the proper method to allocate costs for new transmission facilities. While FirstEnergy and other parties advocate for a traditional "beneficiary pays" (or usage based) approach, others advocate for “socializing” the costs on a load-ratio share basis, where each customer in the zone would pay based on its total usage of energy within PJM. This question has been the subject of extensive litigation before FERC and the appellate courts, including most recently before the Seventh Circuit. On June 25, 2014, a divided three-judge panel of the Seventh Circuit ruled that FERC had not quantified the benefits that western PJM utilities would derive from certain new 500 kV or higher lines and thus had not adequately supported its decision to socialize the costs of these lines. The majority found that eastern PJM utilities are the primary beneficiaries of the lines, while western PJM utilities are only incidental beneficiaries, and that, while incidental beneficiaries should pay some share of the costs of the lines, that share should be proportionate to the benefit they derive from the lines, and not on load-ratio share in PJM as a whole. The court remanded the case to FERC, which issued an order setting the issue of cost allocation for hearing and settlement proceedings. Settlement discussions under a FERC-appointed settlement judge are ongoing. | ||
Order No. 1000, issued by FERC on July 21, 2011, announced new policies regarding transmission planning and transmission cost allocation, requiring the submission of a compliance filing by PJM and the PJM transmission owners demonstrating that the cost allocation methodology for new transmission projects directed by the PJM Board of Managers satisfied the principles set forth in the order. On August 15, 2014 the U.S. Court of Appeals for the D.C. Circuit affirmed Order No. 1000, including its termination of certain "right of first refusal" privileges discussed in more detail below. The court subsequently denied a request for rehearing of its decision. | ||
In series of orders, including certain of the orders related to the Order No. 1000 proceedings, FERC has asserted that the PJM transmission owners do not hold an incumbent “right of first refusal” to construct, own and operate transmission projects within their respective footprints that are approved as part of PJM’s RTEP process. FirstEnergy and other PJM transmission owners have appealed these rulings, and those appeals are pending before the U.S. Court of Appeals for the D.C. Circuit. | ||
To demonstrate compliance with the regional cost allocation principles of Order No. 1000, the PJM transmission owners, including FirstEnergy, proposed a hybrid allocation of 50% beneficiary pays and 50% socialized to be effective for RTEP projects approved by the PJM Board of Managers on, and after, the requested February 1, 2013 effective date of the compliance filing. FERC has accepted that approach. | ||
Separately, the PJM transmission owners, including FirstEnergy, submitted filings to FERC setting forth the cost allocation method for projects that cross the borders between the PJM Region and: (1) the NYISO region; (2) the MISO region; and (3) the FERC-jurisdictional members of the SERTP region. These filings propose to allocate the cost of these interregional transmission projects based on the costs of projects that otherwise would have been constructed separately in each region, or, in the case of MISO, indicate that the cost allocation provisions for interregional transmission projects provided in the Joint Operating Agreement between PJM and MISO comply with the requirements of Order No. 1000. FERC accepted the PJM/MISO and PJM/SERTP filing, subject to refund and further compliance requirements. The PJM/NYISO cross-border project cost allocation filing remains pending before FERC. | ||
The outcome of these proceedings and their impact, if any, on FirstEnergy cannot be predicted at this time. | ||
RTO Realignment | ||
On June 1, 2011, ATSI and the ATSI zone transferred from MISO to PJM. While many of the matters involved with the move have been resolved, FERC denied recovery under ATSI's transmission rate for certain charges that collectively can be described as "exit fees" and certain other transmission cost allocation charges totaling approximately $78.8 million until such time as ATSI submits a cost/benefit analysis demonstrating net benefits to customers from the move. FERC rejected a proposed settlement agreement to resolve the exit fee and transmission cost allocation issues, stating that its action is without prejudice to ATSI submitting a cost/benefit analysis demonstrating that the benefits of the RTO realignment decisions outweigh the exit fee and transmission cost allocation charges. FirstEnergy's request for rehearing of FERC's order remains pending. | ||
Separately, the question of ATSI's responsibility for certain costs for the “Michigan Thumb” transmission project continues to be disputed. Potential responsibility arises under the MISO MVP tariff, which has been litigated in complex proceedings before FERC and certain U.S. appellate courts. In the event of a final non-appealable order that rules that ATSI must pay these charges, ATSI will seek recovery of these charges through its formula rate. On a related issue, FirstEnergy joined certain other PJM transmission owners in a protest of MISO's proposal to allocate MVP costs to energy transactions that cross MISO's borders into the PJM Region. On January 22, 2015, FERC issued an order establishing a paper hearing on remand from the Seventh Circuit of the issue of whether any limitation on "export pricing" for sales of energy from MISO into PJM is justified in light of applicable FERC precedent. Initial comments on the MISO/PJM MVP issue are due March 9, 2015, and reply comments are due April 8, 2015. | ||
In addition, in a May 31, 2011 order, FERC ruled that the costs for certain "legacy RTEP" transmission projects in PJM approved before ATSI joined PJM could be charged to transmission customers in the ATSI zone. The amount to be paid, and the question of derived benefits, is pending before FERC as a result of the Seventh Circuit's June 25, 2014 order described above under PJM Transmission Rates. | ||
The outcome of those proceedings that address the remaining open issues related to ATSI's move into PJM cannot be predicted at this time. | ||
2014 ATSI Formula Rate Filing | ||
On October 31, 2014, ATSI filed a proposal with FERC to change the structure of its formula rate. The proposed change requested to move from an “historical looking” approach, where transmission rates reflect actual costs for the prior year, to a “forward looking” approach, where transmission rates would be based on the estimated costs for the coming year, with an annual true up. Several parties protested ATSI's filing. On December 31, 2014, FERC issued an order accepting ATSI's filing effective January 1, 2015, as requested, subject to refund and the outcome of hearing and settlement proceedings. Settlement discussions under a FERC-appointed settlement judge are ongoing. FERC also initiated an inquiry pursuant to Section 206 of the FPA into ATSI's ROE and certain other matters, with a refund effective date of January 12, 2015, for any refund resulting from the inquiry. A procedural schedule for the Section 206 inquiry has not yet been established. | ||
California Claims Matters | ||
In October 2006, several California governmental and utility parties presented AE Supply with a settlement proposal to resolve alleged overcharges for power sales by AE Supply to the California Energy Resource Scheduling division of the CDWR during 2001. The settlement proposal claims that CDWR is owed approximately $190 million for these alleged overcharges. This proposal was made in the context of mediation efforts by FERC and the Ninth Circuit in several pending proceedings to resolve all outstanding refund and other claims, including claims of alleged price manipulation in the California energy markets during 2000 and 2001. The Ninth Circuit had previously remanded one of those proceedings to FERC, which dismissed the claims of the California Parties in May 2011. The California Parties appealed FERC's decision back to the Ninth Circuit, where the appeal remains pending. AE Supply joined with other intervenors in the case and filed a brief in support of FERC's dismissal of the case. Oral argument was held on February 11, 2015. The matter is now before the Ninth Circuit for decision. | ||
In another proceeding, in June 2009, the California Attorney General, on behalf of certain California parties, filed a complaint with FERC against various sellers, including AE Supply, again seeking refunds for transactions in the California energy markets during 2000 and 2001. The above-noted transactions with CDWR are the basis for including AE Supply in this complaint. AE Supply filed a motion to dismiss, which FERC granted. The California Attorney General appealed FERC's dismissal of its complaint to the Ninth Circuit, which has consolidated the case with other pending appeals related to California refund claims, and stayed the proceedings pending further order. | ||
FirstEnergy cannot predict the outcome of either of the above matters or estimate the possible loss or range of loss. | ||
PATH Transmission Project | ||
On August 24, 2012, the PJM Board of Managers canceled the PATH project, a proposed transmission line from West Virginia through Virginia and into Maryland which PJM had previously suspended in February 2011. As a result of PJM canceling the project, approximately $62 million and approximately $59 million in costs incurred by PATH-Allegheny and PATH-WV (an equity method investment for FE), respectively, were reclassified from net property, plant and equipment to a regulatory asset for future recovery. PATH-Allegheny and PATH-WV requested authorization from FERC to recover the costs with a proposed ROE of 10.9% (10.4% base plus 0.5% for RTO membership) from PJM customers over five years. FERC issued an order denying the 0.5% ROE adder for RTO membership and allowing the tariff changes enabling recovery of these costs to become effective on December 1, 2012, subject to settlement judge proceedings and hearing if the parties do not agree to a settlement. On March 24, 2014, the FERC Chief ALJ terminated settlement judge procedures and appointed an ALJ to preside over the hearing phase of the case. The FERC Chief ALJ later extended the procedural schedule to allow time for the parties to address the applicability of FERC's Opinion No. 531 to the PATH proceedings. FERC's Opinion No. 531, as discussed below, revises FERC's methodology for calculating ROE. The hearing is scheduled to commence in March 2015. | ||
MISO Capacity Portability | ||
On June 11, 2012, in response to certain arguments advanced by MISO, FERC issued a Notice of Request for Comments regarding whether existing rules on transfer capability act as barriers to the delivery of capacity between MISO and PJM. FirstEnergy and other parties have submitted filings arguing that MISO's concerns largely are without foundation and suggested that FERC address the remaining concerns in the existing stakeholder process that is described in the PJM/MISO Joint Operating Agreement. FERC has not mandated a solution, and the RTOs and affected parties are working to address the MISO's proposal in stakeholder proceedings. In January 2015, the RTOs and affected parties indicated to FERC that discussions on the various issues are continuing. Changes to the criteria and qualifications for participation in the PJM RPM capacity auctions could have a significant impact on the outcome of those auctions, including a negative impact on the prices at which those auctions would clear. | ||
FTR Underfunding Complaint | ||
In PJM, FTRs are a mechanism to hedge congestion and operate as a financial replacement for physical firm transmission service. FTRs are financially-settled instruments that entitle the holder to a stream of revenues based on the hourly congestion price differences across a specific transmission path in the PJM Day-ahead Energy Market. FE also performs bilateral transactions for the purpose of hedging the price differences between the location of supply resources and retail load obligations. Due to certain language in the PJM Tariff, the funds that are set aside to pay FTRs can be diverted to other uses, resulting in “underfunding” of FTR payments. Since June 2010, FES and AE Supply have lost more than $94 million in revenues that they otherwise would have received as FTR holders to hedge congestion costs. FES and AE Supply expect to continue to experience significant underfunding. | ||
On February 15, 2013, FES and AE Supply filed a renewed complaint with FERC for the purpose of changing the PJM Tariff to eliminate FTR underfunding. On June 5, 2013, FERC issued its order denying the new complaint. Requests for rehearing, and all subsequent filings in the docket, are pending before FERC. The PJM stakeholders continue to discuss FTR underfunding. | ||
A recent and related issue is the effect that certain financial trades have on congestion. On August 29, 2014, FERC instituted an investigation to address the question of whether the current rules regarding “Up-to Congestion” transactions are just and reasonable. FESC, on behalf of FES and the Utilities, filed comments supporting the investigation, arguing that PJM Tariff changes would decrease the incidence of Up-to Congestion transactions, and funding for FTRs likely would increase. FERC convened a technical conference on January 7, 2015 to discuss application of certain FTR-related rules to Up-to Congestion and virtual transactions and whether PJM’s current uplift allocation for Up-to Congestion and virtual transactions is just and reasonable. FERC action following the technical conference is pending. | ||
PJM Market Reform: 2014 PJM RPM Tariff Amendments | ||
In late 2013 and early 2014, PJM submitted a series of amendments to the PJM Tariff to ensure that resources that clear in the RPM auctions are available as physical resources in the delivery year and that the rules implement comparable obligations for different types of resources. PJM's filings can be grouped into four categories: (i) DR; (ii) imports; (iii) modeling of transmission upgrades in calculating geographic clearing prices; and (iv) arbitrage/capacity replacement. In each of the relevant dockets, FirstEnergy and other parties submitted comments largely supporting PJM's proposed amendments. FERC largely approved the PJM Tariff amendments as proposed by PJM regarding DR, imports, and transmission upgrade modeling. Compliance filings pursuant to and requests for rehearing of certain of these orders are pending before FERC. However, FERC rejected the arbitrage/capacity replacement amendments, directing instead that a technical conference be convened to further examine the issues. The technical conference has yet to be scheduled. | ||
PJM Market Reform: PJM Capacity Performance Proposal and 2015/2016 Reliability Filings | ||
On December 12, 2014, PJM submitted two filings to implement its proposed “Capacity Performance” reform of the RPM capacity market. PJM proposes to revise the PJM Tariff to, among other things: (i) adopt a modified version of the FERC-approved ISO New England Inc. capacity performance payment structure; (ii) allow no excuses for nonperformance except under certain defined circumstances; (iii) maintain DR as a supply-side resource; and (iv) impose a Capacity Performance Resource must-offer requirement (units that can perform as a Capacity Performance Resource must offer into the capacity market, except certain defined resources, including DR). PJM also proposes, among other things, to revise the PJM Operating Agreement to provide limits in energy market offers based on specific physical characteristics and to ensure that capacity resources are available when the PJM Region needs them to perform. PJM requested an effective date of April 1, 2015 for these proposed reforms. Numerous parties filed comments on and protests to PJM’s Capacity Performance filings. FESC, on behalf of its affected affiliates, and, as part of a coalition of certain other PJM utilities, filed comments and protests on the proposed reforms. PJM's filings and all related pleadings are pending before FERC. | ||
In addition, on December 24, 2014, PJM submitted two filings seeking to ensure enough capacity is available during the 2015/2016 Delivery Year. First, PJM proposed to revise the PJM Tariff to allow PJM to procure an undetermined amount of additional capacity for the 2015/2016 Delivery Year to address reliability concerns. PJM requested an effective date of February 23, 2015 for this revision. Second, PJM requested a one-time PJM Tariff waiver that would permit PJM to keep approximately 2,000 MW of committed capacity that should be released for the third incremental auction for the 2015/2016 Delivery Year. Without the waiver, PJM would be required under the PJM Tariff to release this capacity. PJM requests an effective date of February 23, 2015 for the waiver. Numerous parties filed comments on and protests to these PJM filings. FESC, on behalf of its affected affiliates, and, as part of a coalition of certain other PJM utilities, filed comments in support of both PJM filings and seeking additional information from PJM about the scope of any capacity shortfall. PJM's filings and all related pleadings are pending before FERC. | ||
PJM Market Reform: PJM RPM Auctions - Calculation of Unit-Specific Offer Caps | ||
The PJM Tariff describes the rules for calculating the “offer cap” for each unit that offers into the RPM auctions. FES disagreed with the PJM Market Monitor's approach for calculating the offer caps and in 2014, FES asked FERC to determine which PJM Tariff interpretation, FES's or the PJM Market Monitor's, was correct. On August 25, 2014, FERC issued a declaratory order agreeing with the FES interpretation of the PJM Tariff language. FERC went on, however, to initiate a new proceeding to examine whether the existing PJM Tariff language is just and reasonable. PJM filed its brief explaining why the existing PJM Tariff language is just and reasonable. Other parties, including FES, submitted responsive briefs. The briefs and related pleadings are pending before FERC. | ||
PJM Market Reform: FERC Order No. 745 - DR | ||
On May 23, 2014, a divided three-judge panel of the U.S. Court of Appeals for the D.C. Circuit issued an opinion vacating FERC Order No. 745, which required that, under certain parameters, DR participating in organized wholesale energy markets be compensated at LMP. The majority concluded that DR is a retail service, and therefore falls under state, and not federal, jurisdiction, and that FERC, therefore, lacks jurisdiction to regulate DR. The majority also found that even if FERC had jurisdiction over DR, Order No. 745 would be arbitrary and capricious because, under its requirements, DR was inappropriately receiving a double payment (LMP plus the savings of foregone energy purchases). On January 15, 2015, FERC and a coalition of DR providers and industrial end-user groups filed separate petitions for U.S. Supreme Court review of the May 23, 2014 decision. Responses to those petitions are due March 19, 2015. The U.S. Court of Appeals for the D.C. Circuit will withhold issuance of the mandate pending the United States Supreme Court's disposition of those petitions. | ||
On May 23, 2014, FESC, on behalf of its affiliates with market-based rate authorization, filed a complaint asking FERC to issue an order requiring the removal of all portions of the PJM Tariff allowing or requiring DR to be included in the PJM capacity market, with a refund effective date of May 23, 2014. FESC also requested that the results of the May 2014 PJM BRA be considered void and legally invalid to the extent that DR cleared that auction because the participation of DR in that auction was unlawful in light of the May 23, 2014 U.S. Court of Appeals for the D.C. Circuit decision discussed above. FESC, on behalf of FES, subsequently filed an amended complaint renewing its request that DR be removed from the May 2014 BRA. Specifically, FESC requested that FERC direct PJM to recalculate the results of the May 2014 BRA by: (i) removing DR from the PJM capacity supply pool; (ii) leaving the offers of actual capacity suppliers unchanged; and then (iii) determining which capacity suppliers clear the auction on the basis of the offers they submitted consistent with the existing PJM Tariff once the unlawful DR resources have been removed. The complaint remains pending before FERC. The timing of FERC action and the outcome of this proceeding cannot be predicted at this time. | ||
On January 14, 2015, PJM filed proposed amendments to the PJM Tariff for the purpose of addressing the uncertainty of DR. The amendments, which will become effective only in certain defined conditions, purport to be in response to the U.S. Court of Appeals for the D.C. Circuit's May 23, 2014 decision regarding FERC's jurisdiction to regulate DR, as discussed above. If implemented, the amendments will move DR from the supply side to the load side for purposes of PJM's RPM capacity markets, and will permit loads to bid load reductions into the RPM auctions occurring after April 1, 2015. On February 13, 2015, FirstEnergy, as part of a coalition, filed a protest against PJM's proposed amendments. FirstEnergy expects further filings before FERC rules on this matter. | ||
PJM Market Reform: PJM 2014 Triennial RPM Review | ||
The PJM Tariff obligates PJM to perform a thorough review of its RPM program every three years. On September 25, 2014, PJM filed proposed changes to the PJM Tariff as part of the latest review cycle. Among other adjustments, the filing included: (i) shifting the VRR curve one percentage point to the right, which would increase the amount of capacity supply that is procured in the RPM auctions and the clearing price; and (ii) a change to the index used for calculating the generation plant construction costs of the Net CONE formula for the future years between triennial reviews. On November 28, 2014, FERC accepted the PJM Tariff amendments as proposed, subject to a minor compliance requirement. PJM subsequently submitted the required compliance filing. On December 23, 2014, a coalition including FESC, on behalf of its affected affiliates, requested rehearing of FERC's order. PJM's compliance filing, and the coalition's and others' requests for rehearing, remain pending before FERC. | ||
Market-Based Rate Authority, Triennial Update | ||
The Utilities, AE Supply, FES, FG, NG, FirstEnergy Generation Mansfield Unit 1 Corp., Buchanan Generation, LLC, and Green Valley Hydro, LLC each hold authority from FERC to sell electricity at market-based rates. One condition for retaining this authority is that every three years each entity must file an update with the FERC that demonstrates that each entity continues to meet FERC’s requirements for holding market-based rate authority. On December 20, 2013, FESC, on behalf of its affiliates with market-based rate authority, submitted to FERC the most recent triennial market power analysis filing for each market-based rate holder for the current cycle of this filing requirement. On August 13, 2014, FERC accepted the triennial filing as submitted. | ||
FERC Opinion No. 531 | ||
On June 19, 2014, FERC issued Opinion No. 531, in which FERC revised its approach for calculating the discounted cash flow element of FERC’s ROE methodology, and announced a qualitative adjustment to the ROE methodology results. Under the old methodology, FERC used a five-year forecast for the dividend growth variable, whereas going forward the growth variable will consist of two parts: (a) a five-year forecast for dividend growth (2/3 weight); and (b) a long-term dividend growth based on a forecast for the U.S. economy (1/3 weight). Regarding the qualitative adjustment, FERC formerly pegged ROE at the mid-point of the “zone of reasonableness” that came out of the ROE formula, whereas going forward, FERC may rely on record evidence to make qualitative adjustments to the outcome of the ROE methodology in order to reach a level sufficient to attract future investment. Requests for rehearing of Opinion No. 531 are currently pending before FERC. On October 16, 2014, FERC issued its Opinion No. 531-A, applying the revised ROE methodology to certain ISO New England Inc. transmission owners. FirstEnergy is evaluating the potential impact of Opinion No. 531 on the authorized ROE of our FERC-regulated transmission utilities and the cost-of-service wholesale power generation transactions of MP. |
Commitments_Guarantees_and_Con
Commitments, Guarantees and Contingencies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES | COMMITMENTS, GUARANTEES AND CONTINGENCIES | ||||||||||||||||
NUCLEAR INSURANCE | |||||||||||||||||
The Price-Anderson Act limits the public liability which can be assessed with respect to a nuclear power plant to $13.6 billion (assuming 104 units licensed to operate) for a single nuclear incident, which amount is covered by: (i) private insurance amounting to $375 million; and (ii) $13.2 billion provided by an industry retrospective rating plan required by the NRC pursuant thereto. Under such retrospective rating plan, in the event of a nuclear incident at any unit in the United States resulting in losses in excess of private insurance, up to $127 million (but not more than $19 million per unit per year in the event of more than one incident) must be contributed for each nuclear unit licensed to operate in the country by the licensees thereof to cover liabilities arising out of the incident. Based on their present nuclear ownership and leasehold interests, FirstEnergy’s maximum potential assessment under these provisions would be $509 million (NG-$501 million) per incident but not more than $76 million (NG-$75 million) in any one year for each incident. | |||||||||||||||||
In addition to the public liability insurance provided pursuant to the Price-Anderson Act, FirstEnergy has also obtained insurance coverage in limited amounts for economic loss and property damage arising out of nuclear incidents. FirstEnergy is a member of NEIL, which provides coverage (NEIL I) for the extra expense of replacement power incurred due to prolonged accidental outages of nuclear units. Under NEIL I, FirstEnergy’s subsidiaries have policies, renewable annually, corresponding to their respective nuclear interests, which provide an aggregate indemnity of up to approximately $1.96 billion (NG-$1.93 billion) for replacement power costs incurred during an outage after an initial 20-week waiting period. Members of NEIL I pay annual premiums and are subject to assessments if losses exceed the accumulated funds available to the insurer. FirstEnergy’s present maximum aggregate assessment for incidents at any covered nuclear facility occurring during a policy year would be approximately $14 million (NG-$13 million). | |||||||||||||||||
FirstEnergy is insured as to its respective nuclear interests under property damage insurance provided by NEIL to the operating company for each plant. Under these arrangements, up to $2.75 billion of coverage for decontamination costs, decommissioning costs, debris removal and repair and/or replacement of property is provided. FirstEnergy pays annual premiums for this coverage and is liable for retrospective assessments of up to approximately $74 million (NG-$72 million). | |||||||||||||||||
FirstEnergy intends to maintain insurance against nuclear risks as described above as long as it is available. To the extent that replacement power, property damage, decontamination, decommissioning, repair and replacement costs and other such costs arising from a nuclear incident at any of FirstEnergy’s plants exceed the policy limits of the insurance in effect with respect to that plant, to the extent a nuclear incident is determined not to be covered by FirstEnergy’s insurance policies, or to the extent such insurance becomes unavailable in the future, FirstEnergy would remain at risk for such costs. | |||||||||||||||||
The NRC requires nuclear power plant licensees to obtain minimum property insurance coverage of $1.06 billion or the amount generally available from private sources, whichever is less. The proceeds of this insurance are required to be used first to ensure that the licensed reactor is in a safe and stable condition and can be maintained in that condition so as to prevent any significant risk to the public health and safety. Within 30 days of stabilization, the licensee is required to prepare and submit to the NRC a cleanup plan for approval. The plan is required to identify all cleanup operations necessary to decontaminate the reactor sufficiently to permit the resumption of operations or to commence decommissioning. Any property insurance proceeds not already expended to place the reactor in a safe and stable condition must be used first to complete those decontamination operations that are ordered by the NRC. FirstEnergy is unable to predict what effect these requirements may have on the availability of insurance proceeds. | |||||||||||||||||
GUARANTEES AND OTHER ASSURANCES | |||||||||||||||||
FirstEnergy has various financial and performance guarantees and indemnifications which are issued in the normal course of business. These contracts include performance guarantees, stand-by letters of credit, debt guarantees, surety bonds and indemnifications. FirstEnergy enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. | |||||||||||||||||
As of December 31, 2014, outstanding guarantees and other assurances aggregated approximately $4.0 billion, consisting of parental guarantees ($712 million), subsidiaries' guarantees ($2,338 million) and other guarantees ($649 million). | |||||||||||||||||
Of this amount, substantially all relates to guarantees of wholly-owned consolidated entities. FES' debt obligations are generally guaranteed by its subsidiaries, FG and NG, and FES guarantees the debt obligations of each of FG and NG. Accordingly, present and future holders of indebtedness of FES, FG, and NG would have claims against each of FES, FG, and NG, regardless of whether their primary obligor is FES, FG, or NG. | |||||||||||||||||
COLLATERAL AND CONTINGENT-RELATED FEATURES | |||||||||||||||||
In the normal course of business, FE and its subsidiaries routinely enter into physical or financially settled contracts for the sale and purchase of electric capacity, energy, fuel and emission allowances. Certain bilateral agreements and derivative instruments contain provisions that require FE or its subsidiaries to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon FE's or its subsidiaries' credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. The incremental collateral requirement allows for the offsetting of assets and liabilities with the same counterparty, where the contractual right of offset exists under applicable master netting agreements. | |||||||||||||||||
Bilateral agreements and derivative instruments entered into by FE and its subsidiaries have margining provisions that require posting of collateral. Based on FES' power portfolio exposure as of December 31, 2014, FES has posted collateral of $175 million and AE Supply has posted no collateral. The Regulated Distribution segment has posted collateral of $1 million. | |||||||||||||||||
These credit-risk-related contingent features stipulate that if the subsidiary were to be downgraded or lose its investment grade credit rating (based on its senior unsecured debt rating), it would be required to provide additional collateral. Depending on the volume of forward contracts and future price movements, higher amounts for margining could be required. | |||||||||||||||||
Subsequent to the occurrence of a senior unsecured credit rating downgrade to below S&P's BBB- and Moody's Baa3, or a “material adverse event,” the immediate posting of collateral or accelerated payments may be required of FE or its subsidiaries. The following table discloses the additional credit contingent contractual obligations that may be required under certain events as of December 31, 2014: | |||||||||||||||||
Collateral Provisions | FES | AE Supply | Utilities | Total | |||||||||||||
(In millions) | |||||||||||||||||
Split Rating (One rating agency's rating below investment grade) | $ | 603 | $ | 6 | $ | 48 | $ | 657 | |||||||||
BB+/Ba1 Credit Ratings | $ | 643 | $ | 6 | $ | 48 | $ | 697 | |||||||||
Full impact of credit contingent contractual obligations | $ | 886 | $ | 72 | $ | 86 | $ | 1,044 | |||||||||
Excluded from the preceding chart are the potential collateral obligations due to affiliate transactions between the Regulated Distribution segment and CES segment. As of December 31, 2014, neither FES nor AE Supply had any collateral posted with their affiliates. In the event of a senior unsecured credit rating downgrade to below S&P's BB- or Moody's Ba3, FES would be required to post $24 million with affiliated parties. | |||||||||||||||||
OTHER COMMITMENTS AND CONTINGENCIES | |||||||||||||||||
FirstEnergy is a guarantor under a syndicated three-year senior secured term loan facility due October 18, 2015, under which Global Holding borrowed $350 million. Proceeds from the loan were used to repay Signal Peak's and Global Rail's maturing $350 million syndicated two-year senior secured term loan facility. In addition to FirstEnergy, Signal Peak, Global Rail, Global Mining Group, LLC and Global Coal Sales Group, LLC, each being a direct or indirect subsidiary of Global Holding, have also provided their joint and several guaranties of the obligations of Global Holding under the new facility. | |||||||||||||||||
In connection with the current facility, 69.99% of Global Holding's direct and indirect membership interests in Signal Peak, Global Rail and their affiliates along with FEV's and WMB Marketing Ventures, LLC's respective 33-1/3% membership interests in Global Holding, are pledged to the lenders under the current facility as collateral. | |||||||||||||||||
FirstEnergy, FEV and the other two co-owners of Global Holding, Pinesdale LLC, a Gunvor Group, Ltd. subsidiary, and WMB Marketing Ventures, LLC, have agreed to use their best efforts to refinance the new facility no later than July 20, 2015, which reflects the terms of an amendment dated August 14, 2013, on a non-recourse basis so that FirstEnergy's guaranty can be terminated and/or released. If that refinancing does not occur, FirstEnergy may require each co-owner to lend to Global Holding, on a pro rata basis, funds sufficient to prepay the new facility in full. In lieu of providing such funding, the co-owners, at FirstEnergy's option, may provide their several guaranties of Global Holding's obligations under the facility. FirstEnergy receives a fee for providing its guaranty, payable semiannually, which accrued at a rate of 4% through December 31, 2012, and accrues at a rate of 5% from January 1, 2013 through October 18, 2015, which amends the rate in the prior agreement, in each case based upon the average daily outstanding aggregate commitments under the facility for such semiannual period. | |||||||||||||||||
ENVIRONMENTAL MATTERS | |||||||||||||||||
Various federal, state and local authorities regulate FirstEnergy with regard to air and water quality and other environmental matters. Compliance with environmental regulations could have a material adverse effect on FirstEnergy's earnings and competitive position to the extent that FirstEnergy competes with companies that are not subject to such regulations and, therefore, do not bear the risk of costs associated with compliance, or failure to comply, with such regulations. | |||||||||||||||||
Clean Air Act | |||||||||||||||||
FirstEnergy complies with SO2 and NOx emission reduction requirements under the CAA and SIP(s) by burning lower-sulfur fuel, utilizing combustion controls and post-combustion controls, generating more electricity from lower or non-emitting plants and/or using emission allowances. CAIR requires reductions of NOx and SO2 emissions in two phases (2009/2010 and 2015), ultimately capping SO2 emissions in affected states to 2.5 million tons annually and NOx emissions to 1.3 million tons annually. In 2008, the U.S. Court of Appeals for the D.C. Circuit decided that CAIR violated the CAA but allowed CAIR to remain in effect to “temporarily preserve its environmental values” until the EPA replaced CAIR with a new rule consistent with the Court's decision. In July 2011, the EPA finalized CSAPR, to replace CAIR, requiring reductions of NOx and SO2 emissions in two phases (2012 and 2014), ultimately capping SO2 emissions in affected states to 2.4 million tons annually and NOx emissions to 1.2 million tons annually. CSAPR allows trading of NOx and SO2 emission allowances between power plants located in the same state and interstate trading of NOx and SO2 emission allowances with some restrictions. On December 30, 2011, CSAPR was stayed by the U.S. Court of Appeals for the D.C. Circuit and was ultimately vacated by the Court on August 21, 2012. The Court subsequently ordered the EPA to continue administration of CAIR until it finalized a valid replacement for CAIR. On April 29, 2014, the U.S. Supreme Court reversed the U.S. Court of Appeals for the D.C. Circuit decision vacating CSAPR and generally upheld the EPA's authority under the CAA to establish the regulatory structure underpinning CSAPR. On October 23, 2014, the U.S. Court of Appeals for the D.C. Circuit lifted its stay of CSAPR allowing its Phase 1 reductions of NOx and SO2 emissions to begin in 2015, a three year delay from EPA's original rule. CSAPR Phase 2 will also be delayed by three years to 2017. Depending on the outcome of further proceedings in this matter and how the EPA and the states implement the final rules, the future cost of compliance may be substantial and changes to FirstEnergy's and FES' operations may result. | |||||||||||||||||
MATS imposes emission limits for mercury, PM, and HCL for all existing and new coal-fired electric generating units effective in April 2015 with averaging of emissions from multiple units located at a single plant. Under the CAA, state permitting authorities can grant an additional compliance year through April 2016, as needed, including instances when necessary to maintain reliability where electric generating units are being closed. On December 28, 2012, the WVDEP granted a conditional extension through April 16, 2016 for MATS compliance at the Fort Martin, Harrison and Pleasants stations. On March 20, 2013, the PA DEP granted an extension through April 16, 2016 for MATS compliance at the Hatfield's Ferry and Bruce Mansfield stations. In December 2014, FG requested an extension through April 16, 2016 for MATS compliance at the Bay Shore and Sammis stations and await a decision from OEPA. In addition, an EPA enforcement policy document contemplates up to an additional year to achieve compliance, through April 2017, under certain circumstances for reliability critical units. MATS was challenged in the U.S. Court of Appeals for the D.C. Circuit by various entities, including FirstEnergy's challenge of the PM emission limit imposed on petroleum coke boilers, such as Bay Shore Unit 1. On April 15, 2014, MATS was upheld by the U.S. Court of Appeals for the D.C. Circuit, however, the Court refused to decide FirstEnergy's challenge of the PM emission limit imposed on petroleum coke boilers due to a January 2013 petition for reconsideration still pending but not addressed by EPA. On November 25, 2014, the U.S. Supreme Court agreed to review MATS, specifically, to determine if EPA should have evaluated the cost of MATS prior to regulating. Depending on the outcome of the U.S. Supreme Court review and how the MATS are ultimately implemented, FirstEnergy's total capital cost for compliance (over the 2012 to 2018 time period) is currently expected to be approximately $370 million (CES segment of $178 million and Regulated Distribution segment of $192 million), of which $133 million has been spent through 2014 ($56 million at CES and $77 million at Regulated Distribution). | |||||||||||||||||
As of September 1, 2012, Albright, Armstrong, Bay Shore Units 2-4, Eastlake Units 4-5, R. Paul Smith, Rivesville and Willow Island were deactivated. FG entered into RMR arrangements with PJM for Eastlake Units 1-3, Ashtabula Unit 5 and Lake Shore Unit 18 through the spring of 2015, when they are scheduled to be deactivated. In February 2014, PJM notified FG that Eastlake Units 1-3 and Lake Shore Unit 18 will be released from RMR status as of September 15, 2014. FG intends to operate the plants through April 2015, subject to market conditions. As of October 9, 2013, the Hatfield's Ferry and Mitchell stations were also deactivated. | |||||||||||||||||
FirstEnergy and FES have various long-term coal supply and transportation agreements, some of which run through 2025 and certain of which are related to the plants described above. FE and FES have asserted force majeure defenses for delivery shortfalls under certain agreements, and are in discussion with the applicable counterparties. As to coal transportation agreements, FE and FES have agreed to pay liquidated damages for delivery shortfalls for 2014 in the estimated amount of $70 million. If FE and FES fail to reach a resolution with the applicable counterparties for the agreements associated with the deactivated plants or unresolved aspects of the agreements and it were ultimately determined that, contrary to their belief, the force majeure provisions or other defenses, do not excuse or otherwise mitigate the delivery shortfalls, the results of operations and financial condition of both FirstEnergy and FES could be materially adversely impacted. If that were to occur, FE and FES are unable to estimate the loss or range of loss. Additionally, on July 1, 2014, FES terminated a long-term fuel supply agreement. In connection with this termination, FES recognized a pre-tax charge of $67 million in the second quarter of 2014. In one coal supply agreement, AE Supply has asserted termination rights effective in 2015. In response to the notification of the termination, the coal supplier has commenced litigation alleging AE Supply does not have sufficient justification to terminate the agreement. There are 6 million tons remaining under the contract for delivery. At this time, FirstEnergy cannot estimate the loss or range of loss regarding the on-going litigation with respect to this agreement. | |||||||||||||||||
In June 2005, the PA DEP and the Attorneys General of New York, New Jersey, Connecticut and Maryland filed suit against AE, AE Supply, MP, PE and WP in the U.S. District Court for the Western District of Pennsylvania alleging, among other things, that AE performed major modifications in violation of the NSR provisions of the CAA and the Pennsylvania Air Pollution Control Act at the coal-fired Hatfield's Ferry, Armstrong and Mitchell Plants in Pennsylvania. On February 6, 2014, the Court entered judgment for AE, AE Supply, MP, PE and WP finding they had not violated the CAA or the Pennsylvania Air Pollution Control Act. New York, Connecticut, and Maryland withdrew their appeal to the U.S. Court of Appeals for the Third Circuit on December 15, 2014, concluding this litigation. This decision does not change the status of these plants which remain deactivated. | |||||||||||||||||
In September 2007, AE received an NOV from the EPA alleging NSR and PSD violations under the CAA, as well as Pennsylvania and West Virginia state laws at the coal-fired Hatfield's Ferry and Armstrong plants in Pennsylvania and the coal-fired Fort Martin and Willow Island plants in West Virginia. The EPA's NOV alleges equipment replacements during maintenance outages triggered the pre-construction permitting requirements under the NSR and PSD programs. On June 29, 2012, January 31, 2013, and March 27, 2013, EPA issued CAA section 114 requests for the Harrison coal-fired plant seeking information and documentation relevant to its operation and maintenance, including capital projects undertaken since 2007. On December 12, 2014, EPA issued a CAA section 114 request for the Fort Martin coal-fired plant seeking information and documentation relevant to its operation and maintenance, including capital projects undertaken since 2009. FirstEnergy intends to comply with the CAA but, at this time, is unable to predict the outcome of this matter or estimate the possible loss or range of loss. | |||||||||||||||||
In July 2008, three complaints representing multiple plaintiffs were filed against FG in the U.S. District Court for the Western District of Pennsylvania seeking damages based on air emissions from the coal-fired Bruce Mansfield Plant. Two of these complaints also seek to enjoin the Bruce Mansfield Plant from operating except in a “safe, responsible, prudent and proper manner.” One complaint was filed on behalf of twenty-one individuals and the other is a class action complaint seeking certification as a class with the eight named plaintiffs as the class representatives. FG believes the claims are without merit and intends to vigorously defend itself against the allegations made in these complaints, but, at this time, is unable to predict the outcome of this matter or estimate the possible loss or range of loss. | |||||||||||||||||
Climate Change | |||||||||||||||||
There are a number of initiatives to reduce GHG emissions at the state, federal and international level. Certain northeastern states are participating in the RGGI and western states led by California, have implemented programs, primarily cap and trade mechanisms, to control emissions of certain GHGs. Additional policies reducing GHG emissions, such as demand reduction programs, renewable portfolio standards and renewable subsidies have been implemented across the nation. A June 2013, Presidential Climate Action Plan outlined goals to: (1) cut carbon pollution in America by 17% by 2020 (from 2005 levels); (2) prepare the United States for the impacts of climate change; and (3) lead international efforts to combat global climate change and prepare for its impacts. GHG emissions have already been reduced by 10% between 2005 and 2012 according to an April, 2014 EPA Report. In a joint announcement on November 12, 2014, President Obama stated a U.S. target of reducing GHG emissions by 26 to 28% by 2025 from 2005 emission levels and China's President stated its GHG emissions will "peak", around 2030 with approximately 20% of its energy generated by non-fossil fuels by that same year. Due to plant deactivations and increased efficiencies, FirstEnergy anticipates its CO2 emissions will be reduced 25% below 2005 levels by 2015, exceeding the President’s Climate Action Plan goals both in terms of timing and reduction levels. | |||||||||||||||||
850 mmBTU/hr), and 1,100 lbs. CO2/MWH for other natural gas fired units (≤ 850 mmBTU/hr), and 1,100 lbs. CO2/MWH for fossil fuel fired units which would require partial carbon capture and storage. EPA proposed regulations in June 2014, to reduce CO2 emissions from existing fossil fuel electric generating units that would require each state to develop state implementation plans by June 30, 2016, to meet EPA's state specific CO2 emission rate goals. EPA's proposal allows states to request a 1-year extension for single-SIPs (June 30, 2017) or a 2-year extension for multi-state SIPs (June 30, 2018). EPA also proposed separate regulations imposing additional CO2 emission limits on modified and reconstructed fossil fuel electric generating units. On January 7, 2015, EPA announced it would complete all of these so-called "Carbon Pollution Standards" by "midsummer" 2015. On June 23, 2014, the U.S. Supreme Court decided that CO2 or other GHG emissions alone cannot trigger permitting requirements under the CAA, but that air emission sources that need PSD permits due to other regulated air pollutants can be required by EPA to install GHG control technologies. On November 13, 2014, the U.S. Court of Appeals for the D.C. Circuit scheduled expedited briefing to consider challenges to prevent EPA from regulating CO2 emissions from existing fossil fuel electric generating units. Depending on the outcome of appeals and how any final rules are ultimately implemented, the future cost of compliance may be substantial." id="sjs-B81">EPA released its final “Endangerment and Cause or Contribute Findings for Greenhouse Gases under the Clean Air Act” in December 2009, concluding that concentrations of several key GHGs constitutes an "endangerment" and may be regulated as "air pollutants" under the CAA and mandated measurement and reporting of GHG emissions from certain sources, including electric generating plants. EPA proposed a new source performance standard in September 2013, which would not apply to any existing, modified, or reconstructed fossil fuel generating units, of 1,000 lbs. CO2/MWH for large natural gas fired units (> 850 mmBTU/hr), and 1,100 lbs. CO2/MWH for other natural gas fired units (≤ 850 mmBTU/hr), and 1,100 lbs. CO2/MWH for fossil fuel fired units which would require partial carbon capture and storage. EPA proposed regulations in June 2014, to reduce CO2 emissions from existing fossil fuel electric generating units that would require each state to develop state implementation plans by June 30, 2016, to meet EPA's state specific CO2 emission rate goals. EPA's proposal allows states to request a 1-year extension for single-SIPs (June 30, 2017) or a 2-year extension for multi-state SIPs (June 30, 2018). EPA also proposed separate regulations imposing additional CO2 emission limits on modified and reconstructed fossil fuel electric generating units. On January 7, 2015, EPA announced it would complete all of these so-called "Carbon Pollution Standards" by "midsummer" 2015. On June 23, 2014, the U.S. Supreme Court decided that CO2 or other GHG emissions alone cannot trigger permitting requirements under the CAA, but that air emission sources that need PSD permits due to other regulated air pollutants can be required by EPA to install GHG control technologies. On November 13, 2014, the U.S. Court of Appeals for the D.C. Circuit scheduled expedited briefing to consider challenges to prevent EPA from regulating CO2 emissions from existing fossil fuel electric generating units. Depending on the outcome of appeals and how any final rules are ultimately implemented, the future cost of compliance may be substantial. | |||||||||||||||||
At the international level, the United Nations Framework Convention on Climate Change resulted in the Kyoto Protocol requiring participating countries, which does not include the U.S., to reduce GHGs commencing in 2008 and has been extended through 2020. FirstEnergy cannot currently estimate the financial impact of climate change policies, although potential legislative or regulatory programs restricting CO2 emissions, or litigation alleging damages from GHG emissions, could require significant capital and other expenditures or result in changes to its operations. The CO2 emissions per KWH of electricity generated by FirstEnergy is lower than many of its regional competitors due to its diversified generation sources, which include low or non-CO2 emitting gas-fired and nuclear generators. | |||||||||||||||||
Clean Water Act | |||||||||||||||||
Various water quality regulations, the majority of which are the result of the federal CWA and its amendments, apply to FirstEnergy's plants. In addition, the states in which FirstEnergy operates have water quality standards applicable to FirstEnergy's operations. | |||||||||||||||||
The EPA finalized CWA Section 316(b) regulations in May 2014, requiring cooling water intake structures with an intake velocity greater than 0.5 feet per second to reduce fish impingement when aquatic organisms are pinned against screens or other parts of a cooling water intake system to a 12% annual average and requiring cooling water intake structures exceeding 125 million gallons per day to conduct studies to determine site-specific controls, if any, to reduce entrainment, which occurs when aquatic life is drawn into a facility's cooling water system. FirstEnergy is studying various control options and their costs and effectiveness, including pilot testing of reverse louvers in a portion of the Bay Shore power plant's cooling water intake channel to divert fish away from the plant's cooling water intake system. Depending on the results of such studies and any final action taken by the states based on those studies, the future costs of compliance with these standards may require material capital expenditures. | |||||||||||||||||
The EPA proposed updates to the waste water effluent limitations guidelines and standards for the Steam Electric Power Generating category (40 CFR Part 423) in April 2013. The EPA proposed eight treatment options for waste water discharges from electric power plants, of which four are "preferred" by the agency. The preferred options range from more stringent chemical and biological treatment requirements to zero discharge requirements. The EPA is required to finalize this rulemaking by September 30, 2015, under a consent decree entered by a U.S. District Court and the treatment obligations are proposed to phase-in as permits are renewed on a 5-year cycle from 2017 to 2022. Depending on the content of the EPA's final rule and any final action taken by the states, the future costs of compliance with these standards may require material capital expenditures. | |||||||||||||||||
In October 2009, the WVDEP issued an NPDES water discharge permit for the Fort Martin Plant, which imposes TDS, sulfate concentrations and other effluent limitations for heavy metals, as well as temperature limitations. Concurrent with the issuance of the Fort Martin NPDES permit, WVDEP also issued an administrative order setting deadlines for MP to meet certain of the effluent limits that were effective immediately under the terms of the NPDES permit. MP appealed, and a stay of certain conditions of the NPDES permit and order have been granted pending a final decision on the appeal and subject to WVDEP moving to dissolve the stay. The Fort Martin NPDES permit could require an initial capital investment ranging from $150 million to $300 million in order to install technology to meet the TDS and sulfate limits, which technology may also meet certain of the other effluent limits. Additional technology may be needed to meet certain other limits in the Fort Martin NPDES permit. MP intends to vigorously pursue these issues but cannot predict the outcome of these appeals or estimate the possible loss or range of loss. | |||||||||||||||||
In December 2010, PA DEP recommended a sulfate impairment designation for an approximately 68 mile stretch of the Monongahela River north of the West Virginia border which EPA approved in May of 2011. PA DEP subsequently recommended that the sulfate impairment designation for the Monongahela River be removed in its bi-annual water report. The EPA approved the removal of the sulfate impairment designation for the Monongahela River on December 19, 2014. | |||||||||||||||||
FirstEnergy intends to vigorously defend against the CWA matters described above but, except as indicated above, cannot predict their outcomes or estimate the possible loss or range of loss. | |||||||||||||||||
Regulation of Waste Disposal | |||||||||||||||||
Federal and state hazardous waste regulations have been promulgated as a result of the RCRA, as amended, and the Toxic Substances Control Act. Certain coal combustion residuals, such as coal ash, were exempted from hazardous waste disposal requirements pending the EPA's evaluation of the need for future regulation. | |||||||||||||||||
In December 2014, the EPA finalized regulations for the disposal of CCRs (non-hazardous), establishing national standards regarding landfill design, structural integrity design and assessment criteria for surface impoundments, groundwater monitoring and protection procedures and other operational and reporting procedures to assure the safe disposal of CCRs from electric generating plants. Depending on how the final rules are ultimately implemented, the future costs of compliance with such CCR regulations may require material capital expenditures. | |||||||||||||||||
The PA DEP filed a 2012 complaint against FG in the U.S. District Court for the Western District of Pennsylvania with claims under the RCRA and Pennsylvania's Solid Waste Management Act regarding the LBR CCR Impoundment and simultaneously proposed a consent decree between PA DEP and FG to resolve those claims. On December 14, 2012, a modified consent decree was entered by the court, requiring FG to conduct monitoring studies and submit a closure plan to the PA DEP, no later than March 31, 2013, and discontinue disposal to LBR as currently permitted by December 31, 2016. The modified consent decree also required payment of civil penalties of $800,000 to resolve claims under the Solid Waste Management Act. PA DEP issued a 2014 permit requiring FE to provide bonding for 45 years of closure and post-closure activities and to complete closure within a 12-year period, but authorizing FE to seek a permit modification based on "unexpected site conditions that have or will slow closure progress." The permit does not require active dewatering of the CCRs, but does require a groundwater assessment for arsenic and abatement if certain conditions in the permit are met. The Bruce Mansfield Plant is pursuing several options for its CCRs following December 31, 2016. A 2013 complaint filed by Citizens Coal Counsel and other NGOs in the U.S. District Court for the Western District of Pennsylvania, against the owner and operator of a reclamation mine in LaBelle, Pennsylvania that is one possible alternative, alleged the LaBelle site is in violation of RCRA and state laws. On July 14, 2014, Citizens Coal Council served FE, FG and NRG with a citizen suit notice alleging violations of RCRA due to beneficial reuse of "coal ash" at the LaBelle Site. | |||||||||||||||||
On October 10, 2013 approximately 61 individuals filed a complaint against FG in the U.S. District Court for the Northern District of West Virginia seeking damages for alleged property damage, bodily injury and emotional distress related to the LBR CCR Impoundment. The complaints state claims for private nuisance, negligence, negligence per se, reckless conduct and trespass related to alleged groundwater contamination and odors emanating from the Impoundment. FG believes the claims are without merit and intends to vigorously defend itself against the allegations made in the complaints, but, at this time, is unable to predict the outcome of the above matter or estimate the possible loss or range of loss. A similar complaint involving approximately 26 individuals filed in the U.S. District Court for the Western District of Pennsylvania has been resolved and was closed on February 9, 2015, pending the filing of a stipulation for dismissal. | |||||||||||||||||
FirstEnergy and certain of its subsidiaries have been named as potentially responsible parties at waste disposal sites, which may require cleanup under the CERCLA. Allegations of disposal of hazardous substances at historical sites and the liability involved are often unsubstantiated and subject to dispute; however, federal law provides that all potentially responsible parties for a particular site may be liable on a joint and several basis. Environmental liabilities that are considered probable have been recognized on the Consolidated Balance Sheet as of December 31, 2014 based on estimates of the total costs of cleanup, FE's and its subsidiaries' proportionate responsibility for such costs and the financial ability of other unaffiliated entities to pay. Total liabilities of approximately $125 million have been accrued through December 31, 2014. Included in the total are accrued liabilities of approximately $85 million for environmental remediation of former manufactured gas plants and gas holder facilities in New Jersey, which are being recovered by JCP&L through a non-bypassable SBC. FirstEnergy or its subsidiaries could be found potentially responsible for additional amounts or additional sites, but the possible losses or range of losses cannot be determined or reasonably estimated at this time. | |||||||||||||||||
OTHER LEGAL PROCEEDINGS | |||||||||||||||||
Nuclear Plant Matters | |||||||||||||||||
Under NRC regulations, FirstEnergy must ensure that adequate funds will be available to decommission its nuclear facilities. As of December 31, 2014, FirstEnergy had approximately $2.3 billion invested in external trusts to be used for the decommissioning and environmental remediation of Davis-Besse, Beaver Valley, Perry and TMI-2. The values of FirstEnergy's NDTs fluctuate based on market conditions. If the value of the trusts decline by a material amount, FirstEnergy's obligation to fund the trusts may increase. Disruptions in the capital markets and their effects on particular businesses and the economy could also affect the values of the NDTs. By a letter dated July 2, 2014, FENOC submitted a $155 million FES parental guaranty relating to a shortfall in nuclear decommissioning funding for Beaver Valley Unit 1 and Perry to the NRC for approval. FE and FES have also entered into a total of $23 million in parental guaranties in support of the decommissioning of the spent fuel storage facilities located at the nuclear facilities. As required by the NRC, FirstEnergy annually recalculates and adjusts the amount of its parental guaranties, as appropriate. | |||||||||||||||||
In August 2010, FENOC submitted an application to the NRC for renewal of the Davis-Besse operating license for an additional twenty years, until 2037. An NRC ASLB granted an opportunity for a hearing on the Davis-Besse license renewal application to a group of Intervenors, subject to admissible contentions. On September 29, 2014, the Intervenors filed a petition, accompanied by a request to admit a new contention, to suspend the final licensing decision on Davis-Besse license renewal. These filings argue that the NRC's Continued Storage Rule failed to make necessary safety findings regarding the technical feasibility of spent fuel disposal and the adequacy of future repository capacity required by the Atomic Energy Act. On October 31, 2014, FENOC and the NRC Staff filed their opposition to these requests. | |||||||||||||||||
As part of routine inspections of the concrete shield building at Davis-Besse in 2013, FENOC identified changes to the subsurface laminar cracking condition originally discovered in 2011. These inspections revealed that the cracking condition had propagated a small amount in select areas. FENOC's analysis confirms that the building continues to maintain its structural integrity, and its ability to safely perform all of its functions. On September 2, 2014, the Intervenors in the Davis-Besse license renewal proceeding requested that the ASLB introduce issues based on FENOC's plans to manage the subsurface laminar cracking in the Davis-Besse shield building. On January 15, 2015, the ASLB denied this request. The NRC continues to evaluate FENOC's analysis of the shield building. | |||||||||||||||||
On March 12, 2012, the NRC issued orders requiring safety enhancements at U.S. reactors based on recommendations from the lessons learned Task Force review of the accident at Japan's Fukushima Daiichi nuclear power plant. These orders require additional mitigation strategies for beyond-design-basis external events, and enhanced equipment for monitoring water levels in spent fuel pools. The NRC also requested that licensees including FENOC: re-analyze earthquake and flooding risks using the latest information available; conduct earthquake and flooding hazard walkdowns at their nuclear plants; assess the ability of current communications systems and equipment to perform under a prolonged loss of onsite and offsite electrical power; and assess plant staffing levels needed to fill emergency positions. These and other NRC requirements adopted as a result of the accident at Fukushima Daiichi are likely to result in additional material costs from plant modifications and upgrades at FENOC's nuclear facilities. | |||||||||||||||||
ICG Litigation | |||||||||||||||||
On December 28, 2006, AE Supply and MP filed a complaint in the Court of Common Pleas of Allegheny County, Pennsylvania against ICG, Anker WV, and Anker Coal for failure to supply coal required by a long term CSA. A non-jury trial was held from January 10, 2011 through February 1, 2011 regarding past and future damages incurred by AE Supply and MP as a result of the shortfall. On May 2, 2011, the court entered a verdict in favor of AE Supply and MP for $104 million ($90 million in future damages and $14 million for past damages/interest) and on August 25, 2011, the verdict became final. On August 26, 2011, ICG filed a Notice of Appeal with the Superior Court. On August 13, 2012, the Superior Court affirmed the $14 million past damages award against ICG but vacated the $90 million future damages award. While the Superior Court found that defendants still owed future damages, it remanded the calculation of those damages back to the trial court. Efforts by AE Supply and MP to have the Superior Court reconsider this decision or challenge it at the Pennsylvania Supreme Court were denied. In the second quarter of 2013 the final past damage award of $15.5 million (including interest) was recognized and the case was sent back to the trial court to recalculate future damages only. A multi-day damages hearing was held and, on February 13, 2015, the trial court awarded AE Supply and MP approximately $11.3 million in future damages and prejudgment interest. AE Supply and MP are evaluating the court’s decision and a possible appeal. In a related proceeding before the same court, ICG appealed a ruling that prohibited their reliance on a price re-opener clause to limit future damages. On January 30, 2015, the ICG appeal was denied and ICG has moved for reconsideration on this ruling. | |||||||||||||||||
Other Legal Matters | |||||||||||||||||
There are various lawsuits, claims (including claims for asbestos exposure) and proceedings related to FirstEnergy's normal business operations pending against FirstEnergy and its subsidiaries. The loss or range of loss in these matters is not expected to be material to FirstEnergy or its subsidiaries. The other potentially material items not otherwise discussed above are described under Note 14, Regulatory Matters of the Combined Notes to Consolidated Financial Statements. | |||||||||||||||||
FirstEnergy accrues legal liabilities only when it concludes that it is probable that it has an obligation for such costs and can reasonably estimate the amount of such costs. In cases where FirstEnergy determines that it is not probable, but reasonably possible that it has a material obligation, it discloses such obligations and the possible loss or range of loss if such estimate can be made. If it were ultimately determined that FirstEnergy or its subsidiaries have legal liability or are otherwise made subject to liability based on any of the matters referenced above, it could have a material adverse effect on FirstEnergy's or its subsidiaries' financial condition, results of operations and cash flows. |
Transactions_With_Affiliated_C
Transactions With Affiliated Companies | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Transactions With Affiliated Companies [Abstract] | ||||||||||||||
TRANSACTIONS WITH AFFILIATED COMPANIES | TRANSACTIONS WITH AFFILIATED COMPANIES | |||||||||||||
FES’ operating revenues, operating expenses, investment income and interest expenses include transactions with affiliated companies. These affiliated company transactions include affiliated company power sales agreements between FirstEnergy's competitive and regulated companies, support service billings, interest on affiliated company notes including the money pools and other transactions. | ||||||||||||||
FirstEnergy's competitive companies at times provide power through affiliated company power sales to meet a portion of the Utilities' POLR and default service requirements. The primary affiliated company transactions for FES during the three years ended December 31, 2014 are as follows: | ||||||||||||||
FES | 2014 | 2013 | 2012 | |||||||||||
(In millions) | ||||||||||||||
Revenues: | ||||||||||||||
Electric sales to affiliates | $ | 861 | $ | 652 | $ | 515 | ||||||||
Other | 6 | 6 | 16 | |||||||||||
Expenses: | ||||||||||||||
Purchased power from affiliates | 271 | 486 | 451 | |||||||||||
Fuel | 1 | — | 2 | |||||||||||
Support services | 619 | 619 | 570 | |||||||||||
Investment Income: | ||||||||||||||
Interest income from FE | 3 | 2 | 2 | |||||||||||
Interest Expense: | ||||||||||||||
Interest expense to affiliates | 3 | 4 | 10 | |||||||||||
Interest expense to FE | 4 | 6 | 1 | |||||||||||
FirstEnergy does not bill directly or allocate any of its costs to any subsidiary company. Costs are allocated to FES and the Utilities from FESC and FENOC. The majority of costs are directly billed or assigned at no more than cost. The remaining costs are for services that are provided on behalf of more than one company, or costs that cannot be precisely identified and are allocated using formulas developed by FESC and FENOC. The current allocation or assignment formulas used and their bases include multiple factor formulas: each company’s proportionate amount of FirstEnergy’s aggregate direct payroll, number of employees, asset balances, revenues, number of customers, other factors and specific departmental charge ratios. Management believes that these allocation methods are reasonable. Intercompany transactions are generally settled under commercial terms within thirty days. FES purchases the entire output of the generation facilities owned by FG and NG, and may purchase the uncommitted output of AE Supply, as well as the output relating to leasehold interests of OE and TE in certain of those facilities that are subject to sale and leaseback arrangements, and pursuant to full output, cost-of-service PSAs. | ||||||||||||||
FES and the Utilities are parties to an intercompany income tax allocation agreement with FirstEnergy and its other subsidiaries that provides for the allocation of consolidated tax liabilities. Net tax benefits attributable to FirstEnergy are generally reallocated to the subsidiaries of FirstEnergy that have taxable income. That allocation is accounted for as a capital contribution to the company receiving the tax benefit (see Note 5, Taxes). |
Supplemental_Guarantor_Informa
Supplemental Guarantor Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | |||||||||||||||||||||
SUPPLEMENTAL GUARANTOR INFORMATION | SUPPLEMENTAL GUARANTOR INFORMATION | ||||||||||||||||||||
In 2007, FG completed a sale and leaseback transaction for its undivided interest in Bruce Mansfield Unit 1. FES has fully and unconditionally and irrevocably guaranteed all of FG's obligations under each of the leases. The related lessor notes and pass through certificates are not guaranteed by FES or FG, but the notes are secured by, among other things, each lessor trust's undivided interest in Unit 1, rights and interests under the applicable lease and rights and interests under other related agreements, including FES' lease guaranty. This transaction is classified as an operating lease for FES and FirstEnergy and as a financing lease for FG. | |||||||||||||||||||||
The Condensed Consolidating Statements of Income (Loss) and Comprehensive Income (Loss) for the years ended December 31, 2014, 2013, and 2012, Condensed Consolidating Balance Sheets as of December 31, 2014 and December 31, 2013, and Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2014, 2013, and 2012, for FES (parent and guarantor), FG and NG (non-guarantor) are presented below. These statements are provided as FES fully and unconditionally guarantees outstanding registered securities of FG as well as FG's obligations under the facility lease for the Bruce Mansfield sale and leaseback that underlie outstanding registered pass-through trust certificates. Investments in wholly owned subsidiaries are accounted for by FES using the equity method. Results of operations for FG and NG are, therefore, reflected in FES’ investment accounts and earnings as if operating lease treatment was achieved. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions and the entries required to reflect operating lease treatment associated with the 2007 Bruce Mansfield Unit 1 sale and leaseback transaction. | |||||||||||||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2014 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
STATEMENTS OF INCOME (LOSS) | |||||||||||||||||||||
REVENUES | $ | 5,990 | $ | 1,902 | $ | 2,172 | $ | (3,920 | ) | $ | 6,144 | ||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Fuel | — | 1,055 | 198 | — | 1,253 | ||||||||||||||||
Purchased power from affiliates | 3,920 | — | 271 | (3,920 | ) | 271 | |||||||||||||||
Purchased power from non-affiliates | 2,767 | 4 | — | — | 2,771 | ||||||||||||||||
Other operating expenses | 790 | 269 | 527 | 49 | 1,635 | ||||||||||||||||
Pension and OPEB mark-to-market adjustments | 19 | 90 | 188 | — | 297 | ||||||||||||||||
Provision for depreciation | 10 | 119 | 193 | (3 | ) | 319 | |||||||||||||||
General taxes | 72 | 31 | 25 | — | 128 | ||||||||||||||||
Total operating expenses | 7,578 | 1,568 | 1,402 | (3,874 | ) | 6,674 | |||||||||||||||
OPERATING INCOME (LOSS) | (1,588 | ) | 334 | 770 | (46 | ) | (530 | ) | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||
Loss on debt redemptions | (3 | ) | (1 | ) | (2 | ) | — | (6 | ) | ||||||||||||
Investment income | 7 | 8 | 61 | (15 | ) | 61 | |||||||||||||||
Miscellaneous income, including net income from equity investees | 786 | 4 | — | (784 | ) | 6 | |||||||||||||||
Interest expense — affiliates | (12 | ) | (6 | ) | (4 | ) | 15 | (7 | ) | ||||||||||||
Interest expense — other | (53 | ) | (101 | ) | (52 | ) | 60 | (146 | ) | ||||||||||||
Capitalized interest | — | 4 | 30 | — | 34 | ||||||||||||||||
Total other income (expense) | 725 | (92 | ) | 33 | (724 | ) | (58 | ) | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (BENEFITS) | (863 | ) | 242 | 803 | (770 | ) | (588 | ) | |||||||||||||
INCOME TAXES (BENEFITS) | (619 | ) | 87 | 298 | 6 | (228 | ) | ||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | (244 | ) | 155 | 505 | (776 | ) | (360 | ) | |||||||||||||
Discontinued operations (net of income taxes of $70) | — | 116 | — | — | 116 | ||||||||||||||||
NET INCOME (LOSS) | $ | (244 | ) | $ | 271 | $ | 505 | $ | (776 | ) | $ | (244 | ) | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
NET INCOME (LOSS) | $ | (244 | ) | $ | 271 | $ | 505 | $ | (776 | ) | $ | (244 | ) | ||||||||
OTHER COMPREHENSIVE LOSS: | |||||||||||||||||||||
Pension and OPEB prior service costs | (6 | ) | (5 | ) | — | 5 | (6 | ) | |||||||||||||
Amortized gain on derivative hedges | (10 | ) | — | — | — | (10 | ) | ||||||||||||||
Change in unrealized gain on available-for-sale securities | 21 | — | 21 | (21 | ) | 21 | |||||||||||||||
Other comprehensive income (loss) | 5 | (5 | ) | 21 | (16 | ) | 5 | ||||||||||||||
Income tax benefits on other comprehensive income (loss) | 2 | (2 | ) | 8 | (6 | ) | 2 | ||||||||||||||
Other comprehensive income (loss), net of tax | 3 | (3 | ) | 13 | (10 | ) | 3 | ||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | (241 | ) | $ | 268 | $ | 518 | $ | (786 | ) | $ | (241 | ) | ||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2013 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
STATEMENTS OF INCOME | |||||||||||||||||||||
REVENUES | $ | 6,068 | $ | 2,399 | $ | 1,634 | $ | (3,928 | ) | $ | 6,173 | ||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Fuel | — | 1,056 | 206 | — | 1,262 | ||||||||||||||||
Purchased power from affiliates | 4,148 | — | 266 | (3,928 | ) | 486 | |||||||||||||||
Purchased power from non-affiliates | 2,326 | 7 | — | — | 2,333 | ||||||||||||||||
Other operating expenses | 635 | 275 | 529 | 48 | 1,487 | ||||||||||||||||
Pension and OPEB mark-to-market adjustments | (8 | ) | (37 | ) | (36 | ) | — | (81 | ) | ||||||||||||
Provision for depreciation | 6 | 127 | 178 | (5 | ) | 306 | |||||||||||||||
General taxes | 80 | 34 | 24 | — | 138 | ||||||||||||||||
Total operating expenses | 7,187 | 1,462 | 1,167 | (3,885 | ) | 5,931 | |||||||||||||||
OPERATING INCOME (LOSS) | (1,119 | ) | 937 | 467 | (43 | ) | 242 | ||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||
Loss on debt redemptions | (103 | ) | — | — | — | (103 | ) | ||||||||||||||
Investment income | 5 | 1 | 25 | (15 | ) | 16 | |||||||||||||||
Miscellaneous income, including net income from equity investees | 846 | 24 | — | (842 | ) | 28 | |||||||||||||||
Interest expense — affiliates | (13 | ) | (5 | ) | (6 | ) | 14 | (10 | ) | ||||||||||||
Interest expense — other | (63 | ) | (104 | ) | (54 | ) | 61 | (160 | ) | ||||||||||||
Capitalized interest | 1 | 2 | 36 | — | 39 | ||||||||||||||||
Total other income (expense) | 673 | (82 | ) | 1 | (782 | ) | (190 | ) | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (446 | ) | 855 | 468 | (825 | ) | 52 | ||||||||||||||
INCOME TAXES (BENEFITS) | (506 | ) | 365 | 135 | 12 | 6 | |||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 60 | 490 | 333 | (837 | ) | 46 | |||||||||||||||
Discontinued operations (net of income taxes of $8) | — | 14 | — | — | 14 | ||||||||||||||||
NET INCOME | $ | 60 | $ | 504 | $ | 333 | $ | (837 | ) | $ | 60 | ||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
NET INCOME | $ | 60 | $ | 504 | $ | 333 | $ | (837 | ) | $ | 60 | ||||||||||
OTHER COMPREHENSIVE LOSS: | |||||||||||||||||||||
Pension and OPEB prior service costs | (15 | ) | (13 | ) | — | 13 | (15 | ) | |||||||||||||
Amortized gain on derivative hedges | (6 | ) | — | — | — | (6 | ) | ||||||||||||||
Change in unrealized gain on available-for-sale securities | (8 | ) | — | (8 | ) | 8 | (8 | ) | |||||||||||||
Other comprehensive loss | (29 | ) | (13 | ) | (8 | ) | 21 | (29 | ) | ||||||||||||
Income tax benefits on other comprehensive income | (11 | ) | (5 | ) | (3 | ) | 8 | (11 | ) | ||||||||||||
Other comprehensive loss, net of tax | (18 | ) | (8 | ) | (5 | ) | 13 | (18 | ) | ||||||||||||
COMPREHENSIVE INCOME | $ | 42 | $ | 496 | $ | 328 | $ | (824 | ) | $ | 42 | ||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2012 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
STATEMENTS OF INCOME | |||||||||||||||||||||
REVENUES | $ | 5,804 | $ | 2,100 | $ | 1,895 | $ | (3,905 | ) | $ | 5,894 | ||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Fuel | — | 1,077 | 210 | — | 1,287 | ||||||||||||||||
Purchased power from affiliates | 4,098 | — | 258 | (3,905 | ) | 451 | |||||||||||||||
Purchased power from non-affiliates | 1,881 | 6 | — | — | 1,887 | ||||||||||||||||
Other operating expenses | 434 | 334 | 539 | 49 | 1,356 | ||||||||||||||||
Pension and OPEB mark-to-market adjustments | (2 | ) | 52 | 116 | — | 166 | |||||||||||||||
Provision for depreciation | 4 | 116 | 157 | (5 | ) | 272 | |||||||||||||||
General taxes | 79 | 36 | 21 | — | 136 | ||||||||||||||||
Total operating expenses | 6,494 | 1,621 | 1,301 | (3,861 | ) | 5,555 | |||||||||||||||
OPERATING INCOME (LOSS) | (690 | ) | 479 | 594 | (44 | ) | 339 | ||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||
Investment income | 2 | 15 | 67 | (18 | ) | 66 | |||||||||||||||
Miscellaneous income, including net income from equity investees | 1,284 | 20 | — | (1,269 | ) | 35 | |||||||||||||||
Interest expense — affiliates | (18 | ) | (7 | ) | (4 | ) | 19 | (10 | ) | ||||||||||||
Interest expense — other | (93 | ) | (110 | ) | (50 | ) | 62 | (191 | ) | ||||||||||||
Capitalized interest | — | 4 | 33 | — | 37 | ||||||||||||||||
Total other income (expense) | 1,175 | (78 | ) | 46 | (1,206 | ) | (63 | ) | |||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 485 | 401 | 640 | (1,250 | ) | 276 | |||||||||||||||
INCOME TAXES (BENEFITS) | 298 | (269 | ) | 62 | 12 | 103 | |||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 187 | 670 | 578 | (1,262 | ) | 173 | |||||||||||||||
Discontinued operations (net of income taxes of $8) | — | 14 | — | — | 14 | ||||||||||||||||
NET INCOME | $ | 187 | $ | 684 | $ | 578 | $ | (1,262 | ) | $ | 187 | ||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
NET INCOME | $ | 187 | $ | 684 | $ | 578 | $ | (1,262 | ) | $ | 187 | ||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||||||||||||||||||
Pension and OPEB prior service costs | 6 | 6 | — | (6 | ) | 6 | |||||||||||||||
Amortized loss on derivative hedges | (9 | ) | — | — | — | (9 | ) | ||||||||||||||
Change in unrealized gain on available-for-sale securities | (5 | ) | — | (5 | ) | 5 | (5 | ) | |||||||||||||
Other comprehensive income (loss) | (8 | ) | 6 | (5 | ) | (1 | ) | (8 | ) | ||||||||||||
Income taxes (benefits) on other comprehensive income (loss) | (4 | ) | 1 | (2 | ) | 1 | (4 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | (4 | ) | 5 | (3 | ) | (2 | ) | (4 | ) | ||||||||||||
COMPREHENSIVE INCOME | $ | 183 | $ | 689 | $ | 575 | $ | (1,264 | ) | $ | 183 | ||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
As of December 31, 2014 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
Receivables- | |||||||||||||||||||||
Customers | 415 | — | — | — | 415 | ||||||||||||||||
Affiliated companies | 484 | 487 | 674 | (1,120 | ) | 525 | |||||||||||||||
Other | 66 | 21 | 20 | — | 107 | ||||||||||||||||
Notes receivable from affiliated companies | 339 | 838 | 272 | (1,449 | ) | — | |||||||||||||||
Materials and supplies | 67 | 202 | 223 | — | 492 | ||||||||||||||||
Derivatives | 147 | — | — | — | 147 | ||||||||||||||||
Collateral | 229 | — | — | — | 229 | ||||||||||||||||
Prepayments and other | 56 | 41 | — | (2 | ) | 95 | |||||||||||||||
1,803 | 1,591 | 1,189 | (2,571 | ) | 2,012 | ||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT: | |||||||||||||||||||||
In service | 133 | 6,217 | 7,628 | (382 | ) | 13,596 | |||||||||||||||
Less — Accumulated provision for depreciation | 36 | 2,058 | 3,305 | (191 | ) | 5,208 | |||||||||||||||
97 | 4,159 | 4,323 | (191 | ) | 8,388 | ||||||||||||||||
Construction work in progress | 3 | 206 | 801 | — | 1,010 | ||||||||||||||||
100 | 4,365 | 5,124 | (191 | ) | 9,398 | ||||||||||||||||
INVESTMENTS: | |||||||||||||||||||||
Nuclear plant decommissioning trusts | — | — | 1,365 | — | 1,365 | ||||||||||||||||
Investment in affiliated companies | 6,607 | — | — | (6,607 | ) | — | |||||||||||||||
Other | — | 10 | — | — | 10 | ||||||||||||||||
6,607 | 10 | 1,365 | (6,607 | ) | 1,375 | ||||||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||||||||||||||||||
Accumulated deferred income tax benefits | 276 | 76 | — | (352 | ) | — | |||||||||||||||
Customer intangibles | 78 | — | — | — | 78 | ||||||||||||||||
Goodwill | 23 | — | — | — | 23 | ||||||||||||||||
Property taxes | — | 14 | 27 | — | 41 | ||||||||||||||||
Unamortized sale and leaseback costs | — | — | — | 217 | 217 | ||||||||||||||||
Derivatives | 52 | — | — | — | 52 | ||||||||||||||||
Other | 34 | 277 | 7 | (204 | ) | 114 | |||||||||||||||
463 | 367 | 34 | (339 | ) | 525 | ||||||||||||||||
$ | 8,973 | $ | 6,333 | $ | 7,712 | $ | (9,708 | ) | $ | 13,310 | |||||||||||
LIABILITIES AND CAPITALIZATION | |||||||||||||||||||||
CURRENT LIABILITIES: | |||||||||||||||||||||
Currently payable long-term debt | $ | 18 | $ | 164 | $ | 348 | $ | (24 | ) | $ | 506 | ||||||||||
Short-term borrowings- | |||||||||||||||||||||
Affiliated companies | 1,135 | 321 | 28 | (1,449 | ) | 35 | |||||||||||||||
Other | 90 | 9 | — | — | 99 | ||||||||||||||||
Accounts payable- | |||||||||||||||||||||
Affiliated companies | 1,068 | 197 | 219 | (1,068 | ) | 416 | |||||||||||||||
Other | 46 | 202 | — | — | 248 | ||||||||||||||||
Accrued taxes | 2 | 62 | 161 | (123 | ) | 102 | |||||||||||||||
Derivatives | 166 | — | — | — | 166 | ||||||||||||||||
Other | 72 | 56 | 9 | 47 | 184 | ||||||||||||||||
2,597 | 1,011 | 765 | (2,617 | ) | 1,756 | ||||||||||||||||
CAPITALIZATION: | |||||||||||||||||||||
Total equity | 5,585 | 2,561 | 4,014 | (6,575 | ) | 5,585 | |||||||||||||||
Long-term debt and other long-term obligations | 695 | 2,215 | 859 | (1,161 | ) | 2,608 | |||||||||||||||
6,280 | 4,776 | 4,873 | (7,736 | ) | 8,193 | ||||||||||||||||
NONCURRENT LIABILITIES: | |||||||||||||||||||||
Deferred gain on sale and leaseback transaction | — | — | — | 824 | 824 | ||||||||||||||||
Accumulated deferred income taxes | 13 | — | 678 | (180 | ) | 511 | |||||||||||||||
Asset retirement obligations | — | 189 | 652 | — | 841 | ||||||||||||||||
Retirement benefits | 36 | 288 | — | — | 324 | ||||||||||||||||
Derivatives | 14 | — | — | — | 14 | ||||||||||||||||
Other | 33 | 69 | 744 | 1 | 847 | ||||||||||||||||
96 | 546 | 2,074 | 645 | 3,361 | |||||||||||||||||
$ | 8,973 | $ | 6,333 | $ | 7,712 | $ | (9,708 | ) | $ | 13,310 | |||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
As of December 31, 2013 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
Receivables- | |||||||||||||||||||||
Customers | 539 | — | — | — | 539 | ||||||||||||||||
Affiliated companies | 938 | 787 | 227 | (916 | ) | 1,036 | |||||||||||||||
Other | 52 | 12 | 17 | — | 81 | ||||||||||||||||
Notes receivable from affiliated companies | 203 | 23 | 683 | (909 | ) | — | |||||||||||||||
Materials and supplies | 76 | 159 | 213 | — | 448 | ||||||||||||||||
Derivatives | 165 | — | — | — | 165 | ||||||||||||||||
Collateral | 136 | — | — | — | 136 | ||||||||||||||||
Prepayments and other | 52 | 50 | 7 | — | 109 | ||||||||||||||||
2,161 | 1,033 | 1,147 | (1,825 | ) | 2,516 | ||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT: | |||||||||||||||||||||
In service | 104 | 6,105 | 6,645 | (382 | ) | 12,472 | |||||||||||||||
Less — Accumulated provision for depreciation | 28 | 1,953 | 2,962 | (188 | ) | 4,755 | |||||||||||||||
76 | 4,152 | 3,683 | (194 | ) | 7,717 | ||||||||||||||||
Construction work in progress | 23 | 148 | 1,137 | — | 1,308 | ||||||||||||||||
99 | 4,300 | 4,820 | (194 | ) | 9,025 | ||||||||||||||||
INVESTMENTS: | |||||||||||||||||||||
Nuclear plant decommissioning trusts | — | — | 1,276 | — | 1,276 | ||||||||||||||||
Investment in affiliated companies | 5,801 | — | — | (5,801 | ) | — | |||||||||||||||
Other | — | 11 | — | — | 11 | ||||||||||||||||
5,801 | 11 | 1,276 | (5,801 | ) | 1,287 | ||||||||||||||||
ASSETS HELD FOR SALE | — | 122 | — | — | 122 | ||||||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||||||||||||||||||
Accumulated deferred income tax benefits | — | 131 | — | (131 | ) | — | |||||||||||||||
Customer intangibles | 95 | — | — | — | 95 | ||||||||||||||||
Goodwill | 23 | — | — | — | 23 | ||||||||||||||||
Property taxes | — | 15 | 26 | — | 41 | ||||||||||||||||
Unamortized sale and leaseback costs | — | — | — | 168 | 168 | ||||||||||||||||
Derivatives | 53 | — | — | — | 53 | ||||||||||||||||
Other | 81 | 228 | 18 | (155 | ) | 172 | |||||||||||||||
252 | 374 | 44 | (118 | ) | 552 | ||||||||||||||||
$ | 8,313 | $ | 5,840 | $ | 7,287 | $ | (7,938 | ) | $ | 13,502 | |||||||||||
LIABILITIES AND CAPITALIZATION | |||||||||||||||||||||
CURRENT LIABILITIES: | |||||||||||||||||||||
Currently payable long-term debt | $ | 1 | $ | 367 | $ | 547 | $ | (23 | ) | $ | 892 | ||||||||||
Short-term borrowings- | |||||||||||||||||||||
Affiliated companies | 977 | 212 | 151 | (909 | ) | 431 | |||||||||||||||
Other | — | 4 | — | — | 4 | ||||||||||||||||
Accounts payable- | |||||||||||||||||||||
Affiliated companies | 741 | 400 | 362 | (738 | ) | 765 | |||||||||||||||
Other | 94 | 196 | — | — | 290 | ||||||||||||||||
Accrued taxes | 204 | 23 | 23 | (184 | ) | 66 | |||||||||||||||
Derivatives | 110 | — | — | — | 110 | ||||||||||||||||
Other | 70 | 63 | 18 | 46 | 197 | ||||||||||||||||
2,197 | 1,265 | 1,101 | (1,808 | ) | 2,755 | ||||||||||||||||
CAPITALIZATION: | |||||||||||||||||||||
Total equity | 5,312 | 2,283 | 3,493 | (5,776 | ) | 5,312 | |||||||||||||||
Long-term debt and other long-term obligations | 712 | 1,860 | 742 | (1,184 | ) | 2,130 | |||||||||||||||
6,024 | 4,143 | 4,235 | (6,960 | ) | 7,442 | ||||||||||||||||
NONCURRENT LIABILITIES: | |||||||||||||||||||||
Deferred gain on sale and leaseback transaction | — | — | — | 858 | 858 | ||||||||||||||||
Accumulated deferred income taxes | 32 | — | 736 | (27 | ) | 741 | |||||||||||||||
Asset retirement obligations | — | 187 | 828 | — | 1,015 | ||||||||||||||||
Retirement benefits | 22 | 163 | — | — | 185 | ||||||||||||||||
Derivatives | 14 | — | — | — | 14 | ||||||||||||||||
Other | 24 | 82 | 387 | (1 | ) | 492 | |||||||||||||||
92 | 432 | 1,951 | 830 | 3,305 | |||||||||||||||||
$ | 8,313 | $ | 5,840 | $ | 7,287 | $ | (7,938 | ) | $ | 13,502 | |||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2014 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES | $ | (600 | ) | $ | 408 | $ | 785 | $ | (22 | ) | $ | 571 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
New Financing- | |||||||||||||||||||||
Long-term debt | — | 431 | 447 | — | 878 | ||||||||||||||||
Short-term borrowings, net | 247 | 114 | — | (361 | ) | — | |||||||||||||||
Equity contribution from parent | 500 | — | — | — | 500 | ||||||||||||||||
Redemptions and Repayments- | |||||||||||||||||||||
Long-term debt | (1 | ) | (269 | ) | (568 | ) | 22 | (816 | ) | ||||||||||||
Short-term borrowings, net | — | — | (123 | ) | (178 | ) | (301 | ) | |||||||||||||
Other | (1 | ) | (12 | ) | (2 | ) | — | (15 | ) | ||||||||||||
Net cash provided from (used for) financing activities | 745 | 264 | (246 | ) | (517 | ) | 246 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Property additions | (8 | ) | (169 | ) | (662 | ) | — | (839 | ) | ||||||||||||
Nuclear fuel | — | — | (233 | ) | — | (233 | ) | ||||||||||||||
Proceeds from asset sales | — | 307 | — | — | 307 | ||||||||||||||||
Sales of investment securities held in trusts | — | — | 1,163 | — | 1,163 | ||||||||||||||||
Purchases of investment securities held in trusts | — | — | (1,219 | ) | — | (1,219 | ) | ||||||||||||||
Loans to affiliated companies, net | (136 | ) | (815 | ) | 412 | 539 | — | ||||||||||||||
Other | (1 | ) | 5 | — | — | 4 | |||||||||||||||
Net cash used for investing activities | (145 | ) | (672 | ) | (539 | ) | 539 | (817 | ) | ||||||||||||
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 Year Ended December 31, 2013 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES | $ | (1,429 | ) | $ | 753 | $ | 776 | $ | (22 | ) | $ | 78 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
New Financing- | |||||||||||||||||||||
Short-term borrowings, net | 864 | 371 | 150 | (954 | ) | 431 | |||||||||||||||
Equity contribution from parent | 1,500 | — | — | — | 1,500 | ||||||||||||||||
Redemptions and Repayments- | |||||||||||||||||||||
Long-term debt | (770 | ) | (364 | ) | (90 | ) | 22 | (1,202 | ) | ||||||||||||
Short-term borrowings, net | (244 | ) | (505 | ) | — | 749 | — | ||||||||||||||
Tender premiums | (67 | ) | — | — | — | (67 | ) | ||||||||||||||
Other | (4 | ) | (5 | ) | — | — | (9 | ) | |||||||||||||
Net cash provided from (used for) financing activities | 1,279 | (503 | ) | 60 | (183 | ) | 653 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Property additions | (12 | ) | (256 | ) | (449 | ) | — | (717 | ) | ||||||||||||
Nuclear fuel | — | — | (250 | ) | — | (250 | ) | ||||||||||||||
Proceeds from asset sales | — | 21 | — | — | 21 | ||||||||||||||||
Sales of investment securities held in trusts | — | — | 940 | — | 940 | ||||||||||||||||
Purchases of investment securities held in trusts | — | — | (1,000 | ) | — | (1,000 | ) | ||||||||||||||
Loans to affiliated companies, net | 163 | (15 | ) | (77 | ) | 205 | 276 | ||||||||||||||
Other | (1 | ) | (1 | ) | — | — | (2 | ) | |||||||||||||
Net cash provided from (used for) investing activities | 150 | (251 | ) | (836 | ) | 205 | (732 | ) | |||||||||||||
Net change in cash and cash equivalents | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 3 | — | — | 3 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2012 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES | $ | (1,063 | ) | $ | 639 | $ | 1,266 | $ | (21 | ) | $ | 821 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
New Financing- | |||||||||||||||||||||
Long-term debt | — | 351 | 299 | — | 650 | ||||||||||||||||
Short-term borrowings, net | — | 260 | — | (257 | ) | 3 | |||||||||||||||
Redemptions and Repayments- | |||||||||||||||||||||
Long-term debt | (1 | ) | (288 | ) | (161 | ) | 21 | (429 | ) | ||||||||||||
Short-term borrowings, net | (707 | ) | — | (32 | ) | 739 | — | ||||||||||||||
Common stock dividend payment | — | (2,000 | ) | — | 2,000 | — | |||||||||||||||
Other | (1 | ) | (8 | ) | (3 | ) | — | (12 | ) | ||||||||||||
Net cash provided from (used for) financing activities | (709 | ) | (1,685 | ) | 103 | 2,503 | 212 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Property additions | (14 | ) | (273 | ) | (508 | ) | — | (795 | ) | ||||||||||||
Nuclear fuel | — | — | (286 | ) | — | (286 | ) | ||||||||||||||
Proceeds from asset sales | — | 17 | — | — | 17 | ||||||||||||||||
Sales of investment securities held in trusts | — | — | 1,464 | — | 1,464 | ||||||||||||||||
Purchases of investment securities held in trusts | — | — | (1,502 | ) | — | (1,502 | ) | ||||||||||||||
Loans to affiliated companies, net | (211 | ) | 1,338 | (538 | ) | (482 | ) | 107 | |||||||||||||
Dividends received | 2,000 | — | — | (2,000 | ) | — | |||||||||||||||
Other | (3 | ) | (40 | ) | 1 | — | (42 | ) | |||||||||||||
Net cash provided from (used for) investing activities | 1,772 | 1,042 | (1,369 | ) | (2,482 | ) | (1,037 | ) | |||||||||||||
Net change in cash and cash equivalents | — | (4 | ) | — | — | (4 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 7 | — | — | 7 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 3 | $ | — | $ | — | $ | 3 | |||||||||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | ||||||||||||||||||||||||
FirstEnergy's reportable segments are as follows: Regulated Distribution, Regulated Transmission and CES. | |||||||||||||||||||||||||
Financial information for each of FirstEnergy’s reportable segments is presented in the tables below. FES does not have separate reportable operating segments. | |||||||||||||||||||||||||
The Regulated Distribution segment distributes electricity through FirstEnergy’s ten utility operating companies, serving approximately six million customers within 65,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and New York, and purchases power for its POLR, SOS, SSO and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland. This segment also includes regulated electric generation facilities located primarily in West Virginia, Virginia and New Jersey that MP and JCP&L, respectively, own or contractually control. The segment's results reflect the commodity costs of securing electric generation and the deferral and amortization of certain fuel costs. This business segment currently controls approximately 3,790 MWs of generation capacity. | |||||||||||||||||||||||||
The Regulated Transmission segment transmits electricity through transmission facilities owned and operated by ATSI, TrAIL, and certain of FirstEnergy's utilities (JCP&L, ME, PN, MP, PE and WP), and the regulatory asset associated with the abandoned PATH project. The segment's revenues are primarily derived from rates that recover costs and provide a return on transmission capital investment. Except for the recovery of the PATH abandoned project regulatory asset, these revenues are primarily from transmission services provided pursuant to the PJM Tariff to LSEs. The segment's results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy's transmission facilities. | |||||||||||||||||||||||||
The CES segment, through FES and AE Supply, primarily supplies electricity to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland, and the provision of partial POLR and default service for some utilities in Ohio, Pennsylvania and Maryland, including the Utilities. This business segment currently controls approximately 14,068 MWs of capacity, including 885 MWs of capacity scheduled to be deactivated by April 2015. The segment’s net income is primarily derived from electric generation sales less the related costs of electricity generation, including fuel, purchased power and net transmission (including congestion) and ancillary and capacity costs charged by PJM to deliver energy to the segment’s customers. | |||||||||||||||||||||||||
In 2014, the CES segment began to reduce its exposure to weather-sensitive loads, including maintaining competitive generation in excess of committed sales, eliminating load obligations that do not adequately cover risk premiums, pursuing more certain revenue streams, and modifying its hedging strategy to optimize risk management and market upside opportunities. As part of this, the CES segment eliminated future selling efforts in certain sales channels, such as Mass Market, medium commercial-industrial and select large commercial-industrial (Direct), to focus on a selective mix of retail sales channels, wholesale sales that hedge generation more effectively, and maintain a small open position to take advantage of market upside opportunities resulting from volatility such as that experienced in the first quarter of 2014. Going forward, the CES segment will target 65 to 75 million MWHs of sales annually with a target portfolio mix of approximately 10 to 15 million MWHs in Governmental Aggregation sales, 0 to 10 million MWHs of POLR sales, 0 to 20 million MWHs in large commercial and industrial sales (Direct), 10 to 20 million MWHs in block wholesale sales, including Structured Sales, and 10 to 20 million MWHs of spot wholesale sales. Support for current customers in the channels to be exited will remain through their respective contract terms. | |||||||||||||||||||||||||
Corporate/Other contains corporate support and other businesses that are below the quantifiable threshold for separate disclosure as a reportable segment and interest expense on stand-alone holding company debt and corporate income taxes. As of December 31, 2014, Corporate/Other had $4.2 billion of stand-alone holding company long-term debt, of which 28% was subject to variable-interest rates and $1.7 billion was borrowed under the FE revolving credit facility. Reconciling adjustments for the elimination of inter-segment transactions are shown separately in the accompanying table. | |||||||||||||||||||||||||
Segment Financial Information | |||||||||||||||||||||||||
For the Years Ended December 31, | Regulated Distribution | Regulated Transmission | Competitive Energy Services | Corporate/ Other | Reconciling Adjustments | Consolidated | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
External revenues | $ | 9,102 | $ | 769 | $ | 5,470 | $ | (146 | ) | $ | (146 | ) | $ | 15,049 | |||||||||||
Internal revenues | — | — | 819 | — | (819 | ) | — | ||||||||||||||||||
Total revenues | 9,102 | 769 | 6,289 | (146 | ) | (965 | ) | 15,049 | |||||||||||||||||
Depreciation | 658 | 127 | 387 | 48 | — | 1,220 | |||||||||||||||||||
Amortization of regulatory assets, net | 1 | 11 | — | — | — | 12 | |||||||||||||||||||
Investment income | 56 | — | 45 | 11 | (40 | ) | 72 | ||||||||||||||||||
Interest expense | 589 | 131 | 189 | 168 | (4 | ) | 1,073 | ||||||||||||||||||
Income taxes (benefits) | 227 | 121 | (226 | ) | (175 | ) | 11 | (42 | ) | ||||||||||||||||
Income (loss) from continuing operations | 465 | 223 | (423 | ) | (52 | ) | — | 213 | |||||||||||||||||
Discontinued operations, net of tax | — | — | 86 | — | — | 86 | |||||||||||||||||||
Net income (loss) | 465 | 223 | (337 | ) | (52 | ) | — | 299 | |||||||||||||||||
Total assets | 28,232 | 6,352 | 16,743 | 839 | — | 52,166 | |||||||||||||||||||
Total goodwill | 5,092 | 526 | 800 | — | — | 6,418 | |||||||||||||||||||
Property additions | 972 | 1,329 | 939 | 72 | — | 3,312 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||
External revenues | $ | 8,720 | $ | 731 | $ | 5,728 | $ | (121 | ) | $ | (166 | ) | $ | 14,892 | |||||||||||
Internal revenues | — | — | 770 | — | (770 | ) | — | ||||||||||||||||||
Total revenues | 8,720 | 731 | 6,498 | (121 | ) | (936 | ) | 14,892 | |||||||||||||||||
Depreciation | 606 | 114 | 439 | 43 | — | 1,202 | |||||||||||||||||||
Amortization of regulatory assets, net | 529 | 10 | — | — | — | 539 | |||||||||||||||||||
Investment income | 57 | — | 11 | 9 | (44 | ) | 33 | ||||||||||||||||||
Interest expense | 543 | 93 | 222 | 148 | 10 | 1,016 | |||||||||||||||||||
Income taxes (benefits) | 301 | 129 | (141 | ) | (104 | ) | 10 | 195 | |||||||||||||||||
Income (loss) from continuing operations | 501 | 214 | (237 | ) | (103 | ) | — | 375 | |||||||||||||||||
Discontinued operations, net of tax | — | — | 17 | — | — | 17 | |||||||||||||||||||
Net income (loss) | 501 | 214 | (220 | ) | (103 | ) | — | 392 | |||||||||||||||||
Total assets | 27,683 | 5,247 | 16,782 | 712 | — | 50,424 | |||||||||||||||||||
Total goodwill | 5,092 | 526 | 800 | — | — | 6,418 | |||||||||||||||||||
Property additions | 1,272 | 461 | 827 | 78 | — | 2,638 | |||||||||||||||||||
2012 | |||||||||||||||||||||||||
External revenues | $ | 9,047 | $ | 735 | $ | 5,778 | $ | (119 | ) | $ | (188 | ) | $ | 15,253 | |||||||||||
Internal revenues | — | — | 866 | — | (864 | ) | 2 | ||||||||||||||||||
Total revenues | 9,047 | 735 | 6,644 | (119 | ) | (1,052 | ) | 15,255 | |||||||||||||||||
Depreciation | 558 | 114 | 409 | 38 | — | 1,119 | |||||||||||||||||||
Amortization of regulatory assets, net | (65 | ) | (3 | ) | — | — | — | (68 | ) | ||||||||||||||||
Investment income (loss) | 84 | 1 | 66 | (5 | ) | (69 | ) | 77 | |||||||||||||||||
Interest expense | 540 | 92 | 284 | 85 | — | 1,001 | |||||||||||||||||||
Income taxes (benefits) | 295 | 133 | 83 | (34 | ) | 68 | 545 | ||||||||||||||||||
Income (loss) from continuing operations | 540 | 226 | 199 | (155 | ) | (55 | ) | 755 | |||||||||||||||||
Discontinued operations, net of tax | — | — | 16 | — | — | 16 | |||||||||||||||||||
Net income (loss) | 540 | 226 | 215 | (155 | ) | (55 | ) | 771 | |||||||||||||||||
Total assets | 27,150 | 4,865 | 18,087 | 392 | — | 50,494 | |||||||||||||||||||
Total goodwill | 5,025 | 526 | 896 | — | — | 6,447 | |||||||||||||||||||
Property additions | 1,074 | 507 | 1,014 | 83 | — | 2,678 | |||||||||||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS |
On September 4, 2013, certain of FirstEnergy's subsidiaries applied for authorization from the FERC to sell eleven hydroelectric power stations in Pennsylvania, Virginia and West Virginia to subsidiaries of Harbor Hydro, a subsidiary of LS Power. The asset purchase agreement was entered into on August 23, 2013, and amended and restated as of September 4, 2013. On February 12, 2014, the sale of the hydroelectric power plants to LS Power closed for approximately $394 million (FES - $307 million). The carrying value of the assets sold was $235 million (FES - $122 million), including goodwill of $29 million (FES - $1 million) which was allocated to the hydroelectric plants to be sold. | |
Pre-tax income for the hydroelectric facilities of $155 million, $26 million and $24 million (FES - $186 million, $22 million and $22 million) for the years ended December 31, 2014, 2013 and 2012, respectively, are reported in FirstEnergy's and FES' Consolidated Statement of Income as discontinued operations. Included in income for discontinued operations in the year ended December 31, 2014, was a pre-tax gain on the sale of assets of $142 million (FES - $177 million). Revenues for the hydroelectric facilities of $5 million, $33 million and $30 million (FES - $5 million, $31 million and $24 million) for years ended December 31, 2014, 2013 and 2012, respectively, are reported in FirstEnergy's and FES' Consolidated Statement of Income as discontinued operations. |
Summary_of_Quarterly_Financial
Summary of Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||||||||||||
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||||||||||
The following summarizes certain consolidated operating results by quarter for 2014 and 2013. | ||||||||||||||||||||||||||||||||
FirstEnergy | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Dec. 31 | Sept. 30 | 30-Jun | Mar. 31 | Dec. 31 | Sept. 30 | 30-Jun | Mar. 31 | |||||||||||||||||||||||||
Revenues | $ | 3,483 | $ | 3,888 | $ | 3,496 | $ | 4,182 | $ | 3,633 | $ | 4,032 | $ | 3,507 | $ | 3,720 | ||||||||||||||||
Other operating expense | 901 | 858 | 1,021 | 1,182 | 948 | 877 | 886 | 882 | ||||||||||||||||||||||||
Pension and OPEB mark-to-market | 835 | — | — | — | (256 | ) | — | — | — | |||||||||||||||||||||||
Provision for depreciation | 316 | 308 | 302 | 294 | 293 | 316 | 300 | 293 | ||||||||||||||||||||||||
Impairment of long-lived assets | — | — | — | — | 322 | — | 473 | — | ||||||||||||||||||||||||
Operating Income (Loss) | (337 | ) | 716 | 292 | 391 | 387 | 508 | 42 | 645 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes (benefits) | (574 | ) | 485 | 90 | 170 | 208 | 286 | (230 | ) | 306 | ||||||||||||||||||||||
Income taxes (benefits) (1) | (268 | ) | 152 | 26 | 48 | 66 | 77 | (62 | ) | 114 | ||||||||||||||||||||||
Income (loss) from continuing operations | (306 | ) | 333 | 64 | 122 | 142 | 209 | (168 | ) | 192 | ||||||||||||||||||||||
Discontinued operations (net of income taxes) | — | — | — | 86 | — | 9 | 4 | 4 | ||||||||||||||||||||||||
Net Income (Loss) | (306 | ) | 333 | 64 | 208 | 142 | 218 | (164 | ) | 196 | ||||||||||||||||||||||
Earnings (loss) per share of common stock-(2) | ||||||||||||||||||||||||||||||||
Basic - Continuing Operations | (0.73 | ) | 0.79 | 0.16 | 0.29 | 0.34 | 0.5 | (0.40 | ) | 0.46 | ||||||||||||||||||||||
Basic - Discontinued Operations (Note 19) | — | — | — | 0.21 | — | 0.02 | 0.01 | 0.01 | ||||||||||||||||||||||||
Basic - Earnings Available to FirstEnergy Corp. | (0.73 | ) | 0.79 | 0.16 | 0.5 | 0.34 | 0.52 | (0.39 | ) | 0.47 | ||||||||||||||||||||||
Diluted - Continuing Operations | (0.73 | ) | 0.79 | 0.15 | 0.29 | 0.34 | 0.5 | (0.40 | ) | 0.46 | ||||||||||||||||||||||
Diluted - Discontinued Operations (Note 19) | — | — | — | 0.2 | — | 0.02 | 0.01 | 0.01 | ||||||||||||||||||||||||
Diluted - Earnings Available to FirstEnergy Corp. | (0.73 | ) | 0.79 | 0.15 | 0.49 | 0.34 | 0.52 | (0.39 | ) | 0.47 | ||||||||||||||||||||||
(1) - During the fourth quarter of 2014, income tax benefits of $16 million were recorded that related to prior periods. The out-of-period adjustment primarily related to the correction of amounts included in the Company’s tax basis balance sheet. Management has determined that this adjustment is not material to the current or any prior period. | ||||||||||||||||||||||||||||||||
(2) - Total quarterly earnings per share information may not equal annual earnings per share due to the issuance of shares throughout the year. See FirstEnergy's Consolidated Statements of Stockholders' Equity and Note 4. Stock-Based Compensation for additional information. | ||||||||||||||||||||||||||||||||
FES | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Dec. 31 | Sept. 30 | 30-Jun | Mar. 31 | Dec. 31 | Sept. 30 | 30-Jun | Mar. 31 | |||||||||||||||||||||||||
Revenues | $ | 1,342 | $ | 1,521 | $ | 1,452 | $ | 1,829 | $ | 1,518 | $ | 1,679 | $ | 1,452 | $ | 1,524 | ||||||||||||||||
Other operating expense | 359 | 356 | 468 | 452 | 382 | 339 | 387 | 379 | ||||||||||||||||||||||||
Pension and OPEB mark-to-market | 297 | — | — | — | (81 | ) | — | — | — | |||||||||||||||||||||||
Provision for depreciation | 83 | 83 | 79 | 74 | 75 | 80 | 76 | 75 | ||||||||||||||||||||||||
Operating Income (Loss) | (321 | ) | 90 | (151 | ) | (148 | ) | 121 | 65 | (39 | ) | 95 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes (benefits) | (347 | ) | 72 | (154 | ) | (159 | ) | 114 | 56 | (117 | ) | (1 | ) | |||||||||||||||||||
Income taxes (benefits) | (133 | ) | 28 | (67 | ) | (56 | ) | 25 | 23 | (42 | ) | — | ||||||||||||||||||||
Income (loss) from continuing operations | (214 | ) | 44 | (87 | ) | (103 | ) | 89 | 33 | (75 | ) | (1 | ) | |||||||||||||||||||
Discontinued operations (net of income taxes) | — | — | — | 116 | — | 7 | 4 | 3 | ||||||||||||||||||||||||
Net Income (Loss) | (214 | ) | 44 | (87 | ) | 13 | 89 | 40 | (71 | ) | 2 | |||||||||||||||||||||
Consolidated_Valuation_and_Qua
Consolidated Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||||||||||||
CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | FIRSTENERGY CORP. | ||||||||||||||||||||
CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Description | Beginning Balance | Charged to Income | Charged to Other Accounts | (1) | Deductions | (2) | Ending Balance | ||||||||||||||
(In thousands) | |||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||
Accumulated provision for uncollectible accounts — customers | $ | 51,630 | $ | 90,144 | $ | 36,373 | $ | 118,881 | $ | 59,266 | |||||||||||
— other | $ | 2,976 | $ | 3,469 | $ | 8,264 | $ | 9,512 | $ | 5,197 | |||||||||||
Loss carryforward tax valuation reserve | $ | 125,360 | $ | 48,644 | $ | — | $ | — | $ | 174,004 | |||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||
Accumulated provision for uncollectible accounts — customers | $ | 40,354 | $ | 68,733 | $ | 39,775 | $ | 97,232 | $ | 51,630 | |||||||||||
— other | $ | 4,013 | $ | (1,464 | ) | $ | 5,208 | $ | 4,781 | $ | 2,976 | ||||||||||
Loss carryforward tax valuation reserve | $ | 101,697 | $ | 23,663 | $ | — | $ | — | $ | 125,360 | |||||||||||
Year Ended December 31, 2012: | |||||||||||||||||||||
Accumulated provision for uncollectible accounts — customers | $ | 37,303 | $ | 84,026 | $ | 36,686 | $ | 117,661 | $ | 40,354 | |||||||||||
— other | $ | 3,447 | $ | 4,328 | $ | 203 | $ | 3,965 | $ | 4,013 | |||||||||||
Loss carryforward tax valuation reserve | $ | 34,236 | $ | 67,461 | $ | — | $ | — | $ | 101,697 | |||||||||||
-1 | Represents recoveries and reinstatements of accounts previously written off. | ||||||||||||||||||||
-2 | Represents the write-off of accounts considered to be uncollectible. | ||||||||||||||||||||
FES | |||||||||||||||||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||||||||||||
CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Description | Beginning Balance | Charged to Income | Charged to Other Accounts | (1) | Deductions | (2) | Ending Balance | ||||||||||||||
(In thousands) | |||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||
Accumulated provision for uncollectible accounts — customers | $ | 11,073 | $ | 21,942 | $ | — | $ | 15,153 | $ | 17,862 | |||||||||||
— other | $ | 2,523 | $ | 9 | $ | — | $ | 32 | $ | 2,500 | |||||||||||
Loss carryforward tax valuation reserve | $ | 26,875 | $ | 5,251 | $ | — | $ | — | $ | 32,126 | |||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||
Accumulated provision for uncollectible accounts — customers | $ | 16,188 | $ | 14,294 | $ | — | $ | 19,409 | $ | 11,073 | |||||||||||
— other | $ | 2,500 | $ | 28 | $ | — | $ | 5 | $ | 2,523 | |||||||||||
Loss carryforward tax valuation reserve | $ | 15,810 | $ | 11,065 | $ | — | $ | — | $ | 26,875 | |||||||||||
Year Ended December 31, 2012: | |||||||||||||||||||||
Accumulated provision for uncollectible accounts — customers | $ | 16,441 | $ | 10,410 | $ | — | $ | 10,663 | $ | 16,188 | |||||||||||
— other | $ | 2,500 | $ | 1,290 | $ | — | $ | 1,290 | $ | 2,500 | |||||||||||
Loss carryforward tax valuation reserve | $ | 11,650 | $ | 4,160 | $ | — | $ | — | $ | 15,810 | |||||||||||
-1 | Represents recoveries and reinstatements of accounts previously written off. | ||||||||||||||||||||
-2 | Represents the write-off of accounts considered to be uncollectible. |
Organization_Basis_of_Presenta1
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Accounting | FirstEnergy follows GAAP and complies with the related regulations, orders, policies and practices prescribed by the SEC, FERC, and, as applicable, the PUCO, the PPUC, the MDPSC, the NYPSC, the WVPSC, the VSCC and the NJBPU. The preparation of financial statements in conformity with GAAP requires management to make periodic estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not necessarily indicative of results of operations for any future period. FE and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. |
Consolidation | FE and its subsidiaries consolidate all majority-owned subsidiaries over which they exercise control and, when applicable, entities for which they have a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation unless certain regulatory restrictions and rules apply. FE and its subsidiaries consolidate a VIE when it is determined that it is the primary beneficiary (see Note 8, Variable Interest Entities). Investments in affiliates over which FE and its subsidiaries have the ability to exercise significant influence, but with respect to which they are not the primary beneficiary and do not exercise control, follow the equity method of accounting. Under the equity method, the interest in the entity is reported as an investment in the Consolidated Balance Sheets and the percentage share of the entity’s earnings is reported in the Consolidated Statements of Income and Comprehensive Income. These Notes to the Consolidated Financial Statements are combined for FirstEnergy and FES. |
Accounting for the Effects of Regulation | ACCOUNTING FOR THE EFFECTS OF REGULATION |
FirstEnergy accounts for the effects of regulation through the application of regulatory accounting to the Utilities, AGC, ATSI, PATH and TrAIL since their rates are established by a third-party regulator with the authority to set rates that bind customers, are cost-based and can be charged to and collected from customers. | |
FirstEnergy records regulatory assets and liabilities that result from the regulated rate-making process that would not be recorded under GAAP for non-regulated entities. These assets and liabilities are amortized in the Consolidated Statements of Income concurrent with the recovery or refund through customer rates. FirstEnergy believes that it is probable that its regulatory assets and liabilities will be recovered and settled, respectively, through future rates. FirstEnergy and the Utilities net their regulatory assets and liabilities based on federal and state jurisdictions. | |
Revenues and Receivables | REVENUES AND RECEIVABLES |
The Utilities' principal business is providing electric service to customers in Ohio, Pennsylvania, West Virginia, New Jersey and Maryland. FES' principal business is supplying electric power to end-use customers through retail and wholesale arrangements, including affiliated company power sales to meet a portion of the POLR and default service requirements of the Ohio and Pennsylvania Companies and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland. Retail customers are metered on a cycle basis. | |
Electric revenues are recorded based on energy delivered through the end of the calendar month. An estimate of unbilled revenues is calculated to recognize electric service provided from the last meter reading through the end of the month. This estimate includes many factors, among which are historical customer usage, load profiles, estimated weather impacts, customer shopping activity and prices in effect for each class of customer. In each accounting period, FirstEnergy accrues the estimated unbilled amount as revenue and reverses the related prior period estimate. | |
Receivables from customers include retail electric sales and distribution deliveries to residential, commercial and industrial customers for the Utilities, and retail and wholesale sales to customers for FES. | |
Earnings Per Share of Common Stock | EARNINGS PER SHARE OF COMMON STOCK |
Basic earnings per share of common stock are computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted earnings per share of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised. | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT |
Property, plant and equipment reflects original cost (net of any impairments recognized), including payroll and related costs such as taxes, employee benefits, administrative and general costs, and interest costs incurred to place the assets in service. The costs of normal maintenance, repairs and minor replacements are expensed as incurred. FirstEnergy recognizes liabilities for planned major maintenance projects as they are incurred. The cost of nuclear fuel ($2 billion included in net plant) is capitalized within the CES segment's Property, plant and equipment and charged to fuel expense using the specific identification method. | |
Asset Retirement Obligations | Asset Retirement Obligations |
FE recognizes an ARO for the future decommissioning of its nuclear power plants and future remediation of other environmental liabilities associated with all of its long-lived assets. The ARO liability represents an estimate of the fair value of FE's current obligation related to nuclear decommissioning and the retirement or remediation of environmental liabilities of other assets. A fair value measurement inherently involves uncertainty in the amount and timing of settlement of the liability. FE uses an expected cash flow approach to measure the fair value of the nuclear decommissioning and environmental remediation ARO. This approach applies probability weighting to discounted future cash flow scenarios that reflect a range of possible outcomes. The scenarios consider settlement of the ARO at the expiration of the nuclear power plant's current license, settlement based on an extended license term and expected remediation dates. The fair value of an ARO is recognized in the period in which it is incurred. The associated asset retirement costs are capitalized as part of the carrying value of the long-lived asset and are depreciated over the life of the related asset. | |
Conditional retirement obligations associated with tangible long-lived assets are recognized at fair value in the period in which they are incurred if a reasonable estimate can be made, even though there may be uncertainty about timing or method of settlement. When settlement is conditional on a future event occurring, it is reflected in the measurement of the liability, not the timing of the liability recognition. | |
AROs as of December 31, 2014 | |
Asset Impairments | ASSET IMPAIRMENTS |
Long-lived Assets | |
FirstEnergy reviews long-lived assets, including regulatory assets, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The recoverability of a long-lived asset is measured by comparing its carrying value to the sum of undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is greater than the undiscounted cash flows, an impairment exists and a loss is recognized for the amount by which the carrying value of the long-lived asset exceeds its estimated fair value. FirstEnergy utilizes the income approach, based upon discounted cash flows to estimate fair value. | |
Goodwill | Goodwill |
In a business combination, the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. FirstEnergy evaluates goodwill for impairment annually on July 31 and more frequently if indicators of impairment arise. | |
FirstEnergy's reporting units are consistent with its reportable segments and consist of Regulated Distribution, Regulated Transmission, and CES. | |
Investments | Investments |
At the end of each reporting period, FirstEnergy evaluates its investments for OTTI. Investments classified as AFS securities are evaluated to determine whether a decline in fair value below the cost basis is other than temporary. FirstEnergy first considers its intent and ability to hold an equity security until recovery and then considers, among other factors, the duration and the extent to which the security's fair value has been less than its cost and the near-term financial prospects of the security issuer when evaluating an investment for impairment. For debt securities, FirstEnergy considers its intent to hold the securities, the likelihood that it will be required to sell the securities before recovery of its cost basis and the likelihood of recovery of the securities' entire amortized cost basis. If the decline in fair value is determined to be other than temporary, the cost basis of the securities is written down to fair value. | |
Inventory | INVENTORY |
Materials and supplies inventory includes fuel inventory and the distribution, transmission and generation plant materials, net of reserve for excess and obsolete inventory. Materials are generally charged to inventory at weighted average cost when purchased and expensed or capitalized, as appropriate, when used or installed. Fuel inventory is accounted for at weighted average cost when purchased, and recorded to fuel expense when consumed. | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS |
In May 2014, the FASB issued Revenue from Contracts with Customers, requiring entities to recognize revenue by applying a five-step model in accordance with the core principle to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the accounting for costs to obtain or fulfill a contract with a customer is specified and disclosure requirements for revenue recognition are expanded. This standard is effective for fiscal years beginning after December 15, 2016, with no early adoption permitted, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. FirstEnergy is currently evaluating the impact on its financial statements of adopting this standard. | |
Pension and Other Postretirement Plans | PENSION AND OTHER POSTEMPLOYMENT BENEFITS |
FirstEnergy provides noncontributory qualified defined benefit pension plans that cover substantially all of its employees and non-qualified pension plans that cover certain employees. The plans provide defined benefits based on years of service and compensation levels. In addition, FirstEnergy provides a minimum amount of noncontributory life insurance to retired employees in addition to optional contributory insurance. Health care benefits, which include certain employee contributions, deductibles and co-payments, are also available upon retirement to certain employees, their dependents and, under certain circumstances, their survivors. FirstEnergy recognizes the expected cost of providing pension and OPEB to employees and their beneficiaries and covered dependents from the time employees are hired until they become eligible to receive those benefits. FirstEnergy also has obligations to former or inactive employees after employment, but before retirement, for disability-related benefits. On August 25, 2014, the qualified pension plan was amended authorizing a voluntary cashout window program for certain eligible terminated participants with vested benefits. Eligible terminated participants were able to elect an immediate lump sum cash payment of their vested benefits. Additionally, annuity options were offered and could be elected instead of the lump sum cash payment. The election period was September 15, 2014 to October 31, 2014. Payment of benefits for participants that elected an immediate lump sum cash payment or an annuity commenced on December 1, 2014 which resulted in a $40 million reduction to the underfunded status of the pension plan. Additionally, during 2014, certain unions ratified their labor agreements that ended subsidized retiree health care resulting in a reduction to the OPEB benefit obligation by approximately $97 million. | |
FirstEnergy recognizes as a pension and OPEB mark-to-market adjustment the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pension and OPEB expense, primarily service costs, interest on obligations, assumed return on assets and prior service costs, are recorded on a monthly basis. The pension and OPEB mark-to-market adjustment for the years ended December 31, 2014, 2013, and 2012 were $1,243 million ($835 million net of amounts capitalized), $(396) million ($(256) million net of amounts capitalized), and $875 million ($609 million net of amounts capitalized), respectively. In 2014, the pension and OPEB mark-to-market adjustment primarily reflects a 75 basis point decline in the discount rate, revisions to mortality assumptions extending the expected life in key demographics as further described below, lower than expected asset returns, and changes in other demographic assumptions. | |
FirstEnergy’s pension and OPEB funding policy is based on actuarial computations using the projected unit credit method. | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES |
FirstEnergy performs qualitative analyses based on powers and benefits to determine whether a variable interest gives FirstEnergy a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both power and benefits, such that an entity has (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (ii) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. FirstEnergy consolidates a VIE when it is determined that it is the primary beneficiary. | |
Reclassifications | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Organization_Basis_of_Presenta2
Organization, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
Regulatory assets on the Balance Sheets | The following table provides information about the composition of net regulatory assets as of December 31, 2014 and December 31, 2013, and the changes during the year ended December 31, 2014: | ||||||||||||||||||||||||
Regulatory Assets by Source | December 31, | December 31, | Increase | ||||||||||||||||||||||
2014 | 2013 | (Decrease) | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Regulatory transition costs | $ | 240 | $ | 266 | $ | (26 | ) | ||||||||||||||||||
Customer receivables for future income taxes | 370 | 518 | (148 | ) | |||||||||||||||||||||
Nuclear decommissioning and spent fuel disposal costs | (305 | ) | (198 | ) | (107 | ) | |||||||||||||||||||
Asset removal costs | (254 | ) | (362 | ) | 108 | ||||||||||||||||||||
Deferred transmission costs | 90 | 112 | (22 | ) | |||||||||||||||||||||
Deferred generation costs | 281 | 346 | (65 | ) | |||||||||||||||||||||
Deferred distribution costs | 182 | 194 | (12 | ) | |||||||||||||||||||||
Contract valuations | 153 | 260 | (107 | ) | |||||||||||||||||||||
Storm-related costs | 465 | 455 | 10 | ||||||||||||||||||||||
Other | 189 | 263 | (74 | ) | |||||||||||||||||||||
Net Regulatory Assets included in the Consolidated Balance Sheet | $ | 1,411 | $ | 1,854 | $ | (443 | ) | ||||||||||||||||||
Receivables from customers | Billed and unbilled customer receivables as of December 31, 2014 and 2013 are shown below. | ||||||||||||||||||||||||
Customer Receivables | FirstEnergy | FES | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Billed | $ | 914 | $ | 239 | |||||||||||||||||||||
Unbilled | 640 | 176 | |||||||||||||||||||||||
Total | $ | 1,554 | $ | 415 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Billed | $ | 1,010 | $ | 301 | |||||||||||||||||||||
Unbilled | 710 | 238 | |||||||||||||||||||||||
Total | $ | 1,720 | $ | 539 | |||||||||||||||||||||
Reconciliation of basic and diluted earnings per share | The following table reconciles basic and diluted earnings per share of common stock: | ||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings per Share of Common Stock | 2014 | 2013 | 2012 | ||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||||
Income from continuing operations | $ | 213 | $ | 375 | $ | 755 | |||||||||||||||||||
Less: Income attributable to noncontrolling interest | — | — | 1 | ||||||||||||||||||||||
Income from continuing operations available to common shareholders | 213 | 375 | 754 | ||||||||||||||||||||||
Discontinued operations (Note 19) | 86 | 17 | 16 | ||||||||||||||||||||||
Earnings available to FirstEnergy Corp. | $ | 299 | $ | 392 | $ | 770 | |||||||||||||||||||
Weighted average number of basic shares outstanding | 420 | 418 | 418 | ||||||||||||||||||||||
Assumed exercise of dilutive stock options and awards(1) | 1 | 1 | 1 | ||||||||||||||||||||||
Weighted average number of diluted shares outstanding | 421 | 419 | 419 | ||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||
Continuing operations | $ | 0.51 | $ | 0.9 | $ | 1.81 | |||||||||||||||||||
Discontinued operations (Note 19) | 0.2 | 0.04 | 0.04 | ||||||||||||||||||||||
Earnings per basic share | $ | 0.71 | $ | 0.94 | $ | 1.85 | |||||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||
Continuing operations | $ | 0.51 | $ | 0.9 | $ | 1.8 | |||||||||||||||||||
Discontinued operations (Note 19) | 0.2 | 0.04 | 0.04 | ||||||||||||||||||||||
Earnings per diluted share | $ | 0.71 | $ | 0.94 | $ | 1.84 | |||||||||||||||||||
-1 | For the years ended December 31, 2014 and 2013, approximately two million shares were excluded from the calculation of diluted shares outstanding, as their inclusion would be antidilutive. The number of potentially dilutive securities not included in the calculation of diluted shares outstanding due to their antidilutive effect was not significant for the year ending December 31, 2012. | ||||||||||||||||||||||||
Property, plant and equipment balances | Net plant in service balances by segment as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Property, Plant and Equipment | In Service | Accum. Depr. | Net Plant | In Service | Accum. Depr. | Net Plant | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Regulated Distribution | $ | 23,973 | $ | (6,759 | ) | $ | 17,214 | $ | 23,098 | $ | (6,514 | ) | $ | 16,584 | |||||||||||
Regulated Transmission | 6,634 | (1,595 | ) | 5,039 | 5,564 | (1,511 | ) | 4,053 | |||||||||||||||||
Competitive Energy Services(1) | 16,442 | (5,598 | ) | 10,844 | 15,206 | (5,088 | ) | 10,118 | |||||||||||||||||
Corporate/Other | 435 | (198 | ) | 237 | 360 | (167 | ) | 193 | |||||||||||||||||
Total | $ | 47,484 | $ | (14,150 | ) | $ | 33,334 | $ | 44,228 | $ | (13,280 | ) | $ | 30,948 | |||||||||||
(1) Primarily consists of generating assets. | |||||||||||||||||||||||||
Annual composite rates | The respective annual composite rates for FirstEnergy's and FES' electric plant in 2014, 2013 and 2012 are shown in the following table: | ||||||||||||||||||||||||
Annual Composite Depreciation Rate | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
FirstEnergy | 2.5 | % | 2.6 | % | 2.5 | % | |||||||||||||||||||
FES | 3.1 | % | 3.1 | % | 3.1 | % | |||||||||||||||||||
Summary of changes in goodwill | The following table presents goodwill by reporting unit: | ||||||||||||||||||||||||
Goodwill | Regulated Distribution | Regulated Transmission | Competitive Energy Services | Consolidated | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 5,092 | $ | 526 | $ | 800 | $ | 6,418 | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | The changes in AOCI, net of tax, for the years ended December 31, 2014, 2013 and 2012 for FirstEnergy and FES are shown in the following tables: | ||||||||||||||||
FirstEnergy | |||||||||||||||||
Gains & Losses on Cash Flow Hedges | Unrealized Gains on AFS Securities | Defined Benefit Pension & OPEB Plans | Total | ||||||||||||||
(In millions) | |||||||||||||||||
AOCI Balance, January 1, 2012 | $ | (39 | ) | $ | 19 | $ | 446 | $ | 426 | ||||||||
Other comprehensive income before reclassifications (1) | — | 41 | 79 | 120 | |||||||||||||
Amounts reclassified from AOCI | 1 | (45 | ) | (117 | ) | (161 | ) | ||||||||||
Net other comprehensive income (loss) | 1 | (4 | ) | (38 | ) | (41 | ) | ||||||||||
AOCI Balance, December 31, 2012 | $ | (38 | ) | $ | 15 | $ | 408 | $ | 385 | ||||||||
Other comprehensive income before reclassifications (2) | — | 29 | 23 | 52 | |||||||||||||
Amounts reclassified from AOCI | 2 | (35 | ) | (120 | ) | (153 | ) | ||||||||||
Net other comprehensive income (loss) | 2 | (6 | ) | (97 | ) | (101 | ) | ||||||||||
AOCI Balance, December 31, 2013 | $ | (36 | ) | $ | 9 | $ | 311 | $ | 284 | ||||||||
Other comprehensive income before reclassifications (3) | — | 55 | 50 | 105 | |||||||||||||
Amounts reclassified from AOCI | (1 | ) | (39 | ) | (103 | ) | (143 | ) | |||||||||
Net other comprehensive income (loss) | (1 | ) | 16 | (53 | ) | (38 | ) | ||||||||||
AOCI Balance, December 31, 2014 | $ | (37 | ) | $ | 25 | $ | 258 | $ | 246 | ||||||||
(1) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $25 million and $(3 million), respectively. | |||||||||||||||||
(2) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $17 million and $12 million, respectively. | |||||||||||||||||
(3) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $34 million and $42 million, respectively. | |||||||||||||||||
FES | |||||||||||||||||
Gains & Losses on Cash Flow Hedges | Unrealized Gains on AFS Securities | Defined Benefit Pension & OPEB Plans | Total | ||||||||||||||
(In millions) | |||||||||||||||||
AOCI Balance, January 1, 2012 | $ | 8 | $ | 16 | $ | 52 | $ | 76 | |||||||||
Other comprehensive income before reclassifications (1) | — | 38 | 16 | 54 | |||||||||||||
Amounts reclassified from AOCI | (5 | ) | (41 | ) | (12 | ) | (58 | ) | |||||||||
Net other comprehensive income (loss) | (5 | ) | (3 | ) | 4 | (4 | ) | ||||||||||
AOCI Balance, December 31, 2012 | $ | 3 | $ | 13 | $ | 56 | $ | 72 | |||||||||
Other comprehensive income before reclassifications (2) | — | 26 | 3 | 29 | |||||||||||||
Amounts reclassified from AOCI | (4 | ) | (31 | ) | (12 | ) | (47 | ) | |||||||||
Net other comprehensive income (loss) | (4 | ) | (5 | ) | (9 | ) | (18 | ) | |||||||||
AOCI Balance, December 31, 2013 | $ | (1 | ) | $ | 8 | $ | 47 | $ | 54 | ||||||||
Other comprehensive income before reclassifications (3) | — | 50 | 8 | 58 | |||||||||||||
Amounts reclassified from AOCI | (6 | ) | (37 | ) | (12 | ) | (55 | ) | |||||||||
Net other comprehensive loss | (6 | ) | 13 | (4 | ) | 3 | |||||||||||
AOCI Balance, December 31, 2014 | $ | (7 | ) | $ | 21 | $ | 43 | $ | 57 | ||||||||
(1) Gains & Losses on Cash Flow Hedges, Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $1 million, $22 million and $9 million, respectively. | |||||||||||||||||
(2) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $15 million and $2 million, respectively. | |||||||||||||||||
(3) Unrealized Gains on AFS Securities and Defined Benefits Pension & OPEB plans are net of tax of $30 million and $5 million, respectively. | |||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | The following amounts were reclassified from AOCI in the years ended December 31, 2014, 2013 and 2012 for FirstEnergy and FES are shown in the following tables: | ||||||||||||||||
FirstEnergy | Year Ended December 31 | Affected Line Item in Consolidated Statements of Income | |||||||||||||||
Reclassifications from AOCI (2) | 2014 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Gains & losses on cash flow hedges | |||||||||||||||||
Commodity contracts | $ | (10 | ) | $ | (8 | ) | $ | (9 | ) | Other operating expenses | |||||||
Long-term debt | 8 | 11 | 10 | Interest expense | |||||||||||||
(2 | ) | 3 | 1 | Total before taxes | |||||||||||||
1 | (1 | ) | — | Income taxes (benefits) | |||||||||||||
$ | (1 | ) | $ | 2 | $ | 1 | Net of tax | ||||||||||
Unrealized gains on AFS securities | |||||||||||||||||
Realized gains on sales of securities | $ | (63 | ) | $ | (56 | ) | $ | (72 | ) | Investment income | |||||||
24 | 21 | 27 | Income taxes (benefits) | ||||||||||||||
$ | (39 | ) | $ | (35 | ) | $ | (45 | ) | Net of tax | ||||||||
Defined benefit pension and OPEB plans | |||||||||||||||||
Prior-service costs | $ | (168 | ) | $ | (195 | ) | $ | (191 | ) | (1) | |||||||
65 | 75 | 74 | Income taxes (benefits) | ||||||||||||||
$ | (103 | ) | $ | (120 | ) | $ | (117 | ) | Net of tax | ||||||||
(1) These AOCI components are included in the computation of net periodic pension cost. See Note 3, Pension and Other Postemployment Benefits for additional details. | |||||||||||||||||
(2) Parenthesis represent credits to the Consolidated Statements of Income from AOCI. | |||||||||||||||||
FES | Year Ended December 31 | Affected Line Item in Consolidated Statements of Income | |||||||||||||||
Reclassifications from AOCI (2) | 2014 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Gains & losses on cash flow hedges | |||||||||||||||||
Commodity contracts | $ | (10 | ) | $ | (8 | ) | $ | (9 | ) | Other operating expenses | |||||||
Long-term debt | — | 2 | — | Interest expense - other | |||||||||||||
(10 | ) | (6 | ) | (9 | ) | Total before taxes | |||||||||||
4 | 2 | 4 | Income taxes (benefits) | ||||||||||||||
$ | (6 | ) | $ | (4 | ) | $ | (5 | ) | Net of tax | ||||||||
Unrealized gains on AFS securities | |||||||||||||||||
Realized gains on sales of securities | $ | (59 | ) | $ | (49 | ) | $ | (65 | ) | Investment income | |||||||
22 | 18 | 24 | Income taxes (benefits) | ||||||||||||||
$ | (37 | ) | $ | (31 | ) | $ | (41 | ) | Net of tax | ||||||||
Defined benefit pension and OPEB plans | |||||||||||||||||
Prior-service costs | $ | (19 | ) | $ | (20 | ) | $ | (20 | ) | (1) | |||||||
7 | 8 | 8 | Income taxes (benefits) | ||||||||||||||
$ | (12 | ) | $ | (12 | ) | $ | (12 | ) | Net of tax | ||||||||
(1) These AOCI components are included in the computation of net periodic pension cost. See Note 3, Pension and Other Postemployment Benefits for additional details. | |||||||||||||||||
(2) Parenthesis represent credits to the Consolidated Statements of Income from AOCI. |
Pension_and_Other_Postemployme1
Pension and Other Postemployment Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||
Obligations and Funded Status | |||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
Obligations and Funded Status | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation as of January 1 | $ | 8,263 | $ | 8,975 | $ | 879 | $ | 1,076 | |||||||||||||||||
Service cost | 167 | 197 | 9 | 13 | |||||||||||||||||||||
Interest cost | 402 | 372 | 39 | 37 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 16 | 15 | |||||||||||||||||||||
Plan amendments | 5 | 2 | (97 | ) | (37 | ) | |||||||||||||||||||
Medicare retiree drug subsidy | — | — | — | 5 | |||||||||||||||||||||
Actuarial (gain) loss | 1,123 | (846 | ) | 13 | (107 | ) | |||||||||||||||||||
Benefits paid | (711 | ) | (437 | ) | (102 | ) | (123 | ) | |||||||||||||||||
Benefit obligation as of December 31 | $ | 9,249 | $ | 8,263 | $ | 757 | $ | 879 | |||||||||||||||||
Change in fair value of plan assets: | |||||||||||||||||||||||||
Fair value of plan assets as of January 1 | $ | 6,171 | $ | 6,671 | $ | 495 | $ | 508 | |||||||||||||||||
Actual return on plan assets | 349 | (77 | ) | 38 | 56 | ||||||||||||||||||||
Company contributions | 15 | 14 | 17 | 39 | |||||||||||||||||||||
Plan participants’ contributions | — | — | 16 | 15 | |||||||||||||||||||||
Benefits paid | (711 | ) | (437 | ) | (102 | ) | (123 | ) | |||||||||||||||||
Fair value of plan assets as of December 31 | $ | 5,824 | $ | 6,171 | $ | 464 | $ | 495 | |||||||||||||||||
Funded Status: | |||||||||||||||||||||||||
Qualified plan | $ | (3,064 | ) | $ | (1,782 | ) | |||||||||||||||||||
Non-qualified plans | (361 | ) | (310 | ) | |||||||||||||||||||||
Funded Status | $ | (3,425 | ) | $ | (2,092 | ) | $ | (293 | ) | $ | (384 | ) | |||||||||||||
Accumulated benefit obligation | $ | 8,744 | $ | 7,800 | $ | — | $ | — | |||||||||||||||||
Amounts Recognized on the Balance Sheet: | |||||||||||||||||||||||||
Current liabilities | $ | (17 | ) | $ | (15 | ) | $ | — | $ | — | |||||||||||||||
Noncurrent liabilities | (3,408 | ) | (2,077 | ) | (293 | ) | (384 | ) | |||||||||||||||||
Net liability as of December 31 | $ | (3,425 | ) | $ | (2,092 | ) | $ | (293 | ) | $ | (384 | ) | |||||||||||||
Amounts Recognized in AOCI: | |||||||||||||||||||||||||
Prior service cost (credit) | $ | 45 | $ | 48 | $ | (479 | ) | $ | (558 | ) | |||||||||||||||
Assumptions Used to Determine Benefit Obligations | |||||||||||||||||||||||||
(as of December 31) | |||||||||||||||||||||||||
Discount rate | 4.25 | % | 5 | % | 4 | % | 4.75 | % | |||||||||||||||||
Rate of compensation increase | 4.2 | % | 4.2 | % | N/A | N/A | |||||||||||||||||||
Assumed Health Care Cost Trend Rates | |||||||||||||||||||||||||
(as of December 31) | |||||||||||||||||||||||||
Health care cost trend rate assumed (pre/post-Medicare) | N/A | N/A | 7.0-7.5% | 7.25-7.75% | |||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | N/A | N/A | 4.5 | % | 5 | % | |||||||||||||||||||
Year that the rate reaches the ultimate trend rate (pre/post-Medicare) | N/A | N/A | 2026 | 2020 | |||||||||||||||||||||
Allocation of Plan Assets (as of December 31) | |||||||||||||||||||||||||
Equity securities | 36 | % | 18 | % | 49 | % | 47 | % | |||||||||||||||||
Bonds | 33 | % | 40 | % | 40 | % | 40 | % | |||||||||||||||||
Absolute return strategies | 14 | % | 23 | % | 1 | % | 3 | % | |||||||||||||||||
Real estate | 7 | % | 6 | % | 1 | % | 1 | % | |||||||||||||||||
Derivatives | 1 | % | — | % | — | % | — | % | |||||||||||||||||
Cash and short-term securities | 9 | % | 13 | % | 9 | % | 9 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Components of Net Periodic Benefit Costs | |||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
Components of Net Periodic Benefit Costs | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Service cost | $ | 167 | $ | 197 | $ | 161 | $ | 9 | $ | 13 | $ | 12 | |||||||||||||
Interest cost | 402 | 372 | 389 | 39 | 37 | 47 | |||||||||||||||||||
Expected return on plan assets | (462 | ) | (501 | ) | (486 | ) | (34 | ) | (34 | ) | (37 | ) | |||||||||||||
Amortization of prior service cost (credit) | 8 | 12 | 12 | (176 | ) | (207 | ) | (203 | ) | ||||||||||||||||
Pension & OPEB mark-to-market adjustment | 1,235 | (267 | ) | 735 | 8 | (129 | ) | 140 | |||||||||||||||||
Net periodic cost | $ | 1,350 | $ | (187 | ) | $ | 811 | $ | (154 | ) | $ | (320 | ) | $ | (41 | ) | |||||||||
Assumptions Used to Determine Net Periodic Benefit Cost | |||||||||||||||||||||||||
Assumptions Used to Determine Net Periodic Benefit Cost | Pension | OPEB | |||||||||||||||||||||||
for Years Ended December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Weighted-average discount rate | 5 | % | 4.25 | % | 5 | % | 4.75 | % | 4 | % | 4.75 | % | |||||||||||||
Expected long-term return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | 7.75 | % | 7.75 | % | 7.75 | % | |||||||||||||
Rate of compensation increase | 4.2 | % | 4.7 | % | 5.2 | % | N/A | N/A | N/A | ||||||||||||||||
Target asset allocations for pension and OPEB portfolio | ies. | ||||||||||||||||||||||||
FirstEnergy’s target asset allocations for its pension and OPEB trust portfolios for 2014 and 2013 are shown in the following tab | |||||||||||||||||||||||||
Effect of One-Percentage Point change in assumed health care cost trend rates | ans. A one-percentage-point change in assumed health care cost trend rates would have the following effec | ||||||||||||||||||||||||
Estimated Future Benefit Payments | s: | ||||||||||||||||||||||||
1-Percentage-Point Increase | 1-Percentage-Point Decrease | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Effect on total of service and interest cost | $ | 2 | $ | (1 | ) | ||||||||||||||||||||
Effect on accumulated benefit obligation | $ | 23 | $ | (22 | ) | ||||||||||||||||||||
Taking into account estimated employee future service, FirstEnergy expects to make the following benefit payments from plan assets and other payments, net of participant contributio | |||||||||||||||||||||||||
Net Pension and OPEB Asset (Liability) | s: | ||||||||||||||||||||||||
OPEB | |||||||||||||||||||||||||
Pension | Benefit Payments | Subsidy Receipts | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
2015 | $ | 467 | $ | 59 | $ | (3 | ) | ||||||||||||||||||
2016 | 476 | 59 | (3 | ) | |||||||||||||||||||||
2017 | 491 | 58 | (3 | ) | |||||||||||||||||||||
2018 | 513 | 56 | (3 | ) | |||||||||||||||||||||
2019 | 529 | 55 | (3 | ) | |||||||||||||||||||||
Years 2020-2024 | 2,887 | 260 | (10 | ) | |||||||||||||||||||||
FES’ share of the pension and OPEB net (liability) asset as of December 31, 2014 and 2013, was as follo | |||||||||||||||||||||||||
Net Periodic Pension and OPEB Costs | s: | ||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Net (Liability) Asset | $ | (295 | ) | $ | (149 | ) | $ | 10 | $ | (8 | ) | ||||||||||||||
FES’ share of the net periodic pension and OPEB costs (credits) for the three years ended December 31, 2014 was as follo | |||||||||||||||||||||||||
Pensions | |||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||
Pension investments measured at fair value | The following tables set forth pension financial assets that are accounted for at fair value by level within the fair value hierarchy. See Note 9, Fair Value Measurements, for a description of each level of the fair value hierarchy. There were no significant transfers between levels during 2014 and 2013. | ||||||||||||||||||||||||
December 31, 2014 | Asset Allocation | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Cash and short-term securities | $ | — | $ | 517 | $ | — | $ | 517 | 9 | % | |||||||||||||||
Equity investments | |||||||||||||||||||||||||
Domestic | 1,266 | 8 | — | 1,274 | 22 | % | |||||||||||||||||||
International | 355 | 414 | — | 769 | 14 | % | |||||||||||||||||||
Fixed income | |||||||||||||||||||||||||
Government bonds | — | 159 | — | 159 | 3 | % | |||||||||||||||||||
Corporate bonds | — | 1,386 | — | 1,386 | 24 | % | |||||||||||||||||||
High yield debt | — | 300 | — | 300 | 5 | % | |||||||||||||||||||
Mortgage-backed securities (non-government) | — | 37 | — | 37 | 1 | % | |||||||||||||||||||
Alternatives | |||||||||||||||||||||||||
Hedge funds (Absolute return) | — | 809 | — | 809 | 14 | % | |||||||||||||||||||
Derivatives | — | 35 | — | 35 | 1 | % | |||||||||||||||||||
Private equity funds | — | — | 25 | 25 | — | % | |||||||||||||||||||
Real estate funds | — | — | 421 | 421 | 7 | % | |||||||||||||||||||
Total (1) | $ | 1,621 | $ | 3,665 | $ | 446 | $ | 5,732 | 100 | % | |||||||||||||||
(1) | Excludes $92 million as of December 31, 2014 of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | ||||||||||||||||||||||||
December 31, 2013 | Asset Allocation | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Cash and short-term securities | $ | — | $ | 782 | $ | — | $ | 782 | 13 | % | |||||||||||||||
Equity investments | |||||||||||||||||||||||||
Domestic | 701 | 3 | — | 704 | 11 | % | |||||||||||||||||||
International | 304 | 118 | — | 422 | 7 | % | |||||||||||||||||||
Fixed income | |||||||||||||||||||||||||
Government bonds | — | 314 | — | 314 | 5 | % | |||||||||||||||||||
Corporate bonds | — | 2,128 | — | 2,128 | 34 | % | |||||||||||||||||||
Mortgage-backed securities (non-government) | — | 87 | — | 87 | 1 | % | |||||||||||||||||||
Alternatives | |||||||||||||||||||||||||
Hedge funds (Absolute return) | — | 1,395 | — | 1,395 | 23 | % | |||||||||||||||||||
Derivatives | — | 14 | — | 14 | — | % | |||||||||||||||||||
Private equity funds | — | — | 27 | 27 | — | % | |||||||||||||||||||
Real estate funds | — | — | 385 | 385 | 6 | % | |||||||||||||||||||
Total (1) | $ | 1,005 | $ | 4,841 | $ | 412 | $ | 6,258 | 100 | % | |||||||||||||||
Reconciliation of changes in the fair value of pension investments | The following table provides a reconciliation of changes in the fair value of pension investments classified as Level 3 in the fair value hierarchy during 2014 and 2013: | ||||||||||||||||||||||||
Private Equity Funds | Real Estate Funds | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 33 | $ | 357 | |||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Unrealized gains | 1 | 17 | |||||||||||||||||||||||
Realized gains | 5 | 13 | |||||||||||||||||||||||
Transfers out | (12 | ) | (2 | ) | |||||||||||||||||||||
Balance as of December 31, 2013 | $ | 27 | $ | 385 | |||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Unrealized gains (losses) | (2 | ) | 17 | ||||||||||||||||||||||
Realized gains | 1 | 14 | |||||||||||||||||||||||
Transfers in (out) | (1 | ) | 5 | ||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 25 | $ | 421 | |||||||||||||||||||||
OPEB | |||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||
Pension investments measured at fair value | 2013:00:00 | ||||||||||||||||||||||||
Private Equity Funds | Real Estate Funds | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 33 | $ | 357 | |||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Unrealized gains | 1 | 17 | |||||||||||||||||||||||
Realized gains | 5 | 13 | |||||||||||||||||||||||
Transfers out | (12 | ) | (2 | ) | |||||||||||||||||||||
Balance as of December 31, 2013 | $ | 27 | $ | 385 | |||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Unrealized gains (losses) | (2 | ) | 17 | ||||||||||||||||||||||
Realized gains | 1 | 14 | |||||||||||||||||||||||
Transfers in (out) | (1 | ) | 5 | ||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 25 | $ | 421 | |||||||||||||||||||||
As of December 31, 2014 and 2013, the OPEB trust investments measured at fair value were as follows: | |||||||||||||||||||||||||
December 31, 2014 | Asset Allocation | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Cash and short-term securities | $ | — | $ | 41 | $ | — | $ | 41 | 9 | % | |||||||||||||||
Equity investment | |||||||||||||||||||||||||
Domestic | 230 | — | — | 230 | 48 | % | |||||||||||||||||||
International | 3 | 3 | — | 6 | 1 | % | |||||||||||||||||||
Fixed income | |||||||||||||||||||||||||
U.S. treasuries | — | 41 | — | 41 | 9 | % | |||||||||||||||||||
Government bonds | — | 110 | — | 110 | 23 | % | |||||||||||||||||||
Corporate bonds | — | 32 | — | 32 | 7 | % | |||||||||||||||||||
High yield debt | — | 2 | — | 2 | — | % | |||||||||||||||||||
Mortgage-backed securities (non-government) | — | 3 | — | 3 | 1 | % | |||||||||||||||||||
Alternatives | |||||||||||||||||||||||||
Hedge funds | — | 5 | — | 5 | 1 | % | |||||||||||||||||||
Real estate funds | — | — | 3 | 3 | 1 | % | |||||||||||||||||||
Total (1) | $ | 233 | $ | 237 | $ | 3 | $ | 473 | 100 | % | |||||||||||||||
(1) | Excludes $(9) million as of December 31, 2014 of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value tab | ||||||||||||||||||||||||
Reconciliation of changes in the fair value of pension investments | le. | ||||||||||||||||||||||||
The following table provides a reconciliation of changes in the fair value of OPEB trust investments classified as Level 3 in the fair value hierarchy during 2014 and |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | Restricted common stock (restricted stock) and restricted stock units (stock units) activity for the year ended December 31, 2014, was as follows: | ||||||||||||
Outstanding as of January 1, 2014 | 2,216,609 | ||||||||||||
Granted | 1,171,318 | ||||||||||||
Vested (1) | (872,574 | ) | |||||||||||
Forfeited | (103,549 | ) | |||||||||||
Outstanding as of December 31, 2014 | 2,411,804 | ||||||||||||
(1) Excludes dividend equivalents of 148,982 earned during vesting period | |||||||||||||
Schedule of Restricted Stock Grants Under LTIP | Restricted stock grants under the ICP were as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Restricted stock granted | 20,000 | 27,561 | 263,771 | ||||||||||
Weighted average market price | $ | 32.71 | $ | 42.53 | $ | 44.82 | |||||||
Weighted average vesting period (years) | 2.29 | 3.68 | 3.09 | ||||||||||
Dividends restricted | Yes | Yes | Yes | ||||||||||
Schedule of Vesting Activity for Restricted Stock | Vesting activity for restricted stock during 2014 was as follows: | ||||||||||||
Restricted Stock | Number of Shares | Weighted Average Grant-Date Fair Value | |||||||||||
Nonvested as of January 1, 2014 | 417,464 | $ | 45.46 | ||||||||||
Nonvested as of December 31, 2014 | 342,286 | $ | 45.29 | ||||||||||
Granted in 2014 | 20,000 | $ | 32.71 | ||||||||||
Forfeited in 2014 | 1,743 | $ | 33.56 | ||||||||||
Vested in 2014(1) | 93,435 | $ | 37.3 | ||||||||||
(1) Excludes 16,480 shares for dividends earned during vesting period | |||||||||||||
Schedule of Restricted Stock Units Granted and Weighted Average Vesting Period | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Restricted stock units granted | 1,151,318 | 924,576 | 652,120 | ||||||||||
Weighted average vesting period (years) | 3 | 3 | 3 | ||||||||||
Schedule of Vesting Activity for Stock Units | Vesting activity for stock units during 2014 was as follows: | ||||||||||||
Restricted Stock Units | Number of Shares | Weighted Average Grant-Date Fair Value | |||||||||||
Nonvested as of January 1, 2014 | 1,799,145 | $ | 40.86 | ||||||||||
Nonvested as of December 31, 2014 | 2,069,518 | $ | 37.65 | ||||||||||
Granted in 2014 | 1,151,318 | $ | 32.17 | ||||||||||
Forfeited in 2014 | 101,806 | $ | 38.7 | ||||||||||
Vested in 2014 (1) | 779,139 | $ | 30.67 | ||||||||||
(1) Excludes dividend equivalents of 132,502 earned during vesting period | |||||||||||||
Schedule of Stock Option Activity | Stock option activity during 2014 was as follows: | ||||||||||||
Stock Option Activity | Number of Shares | Weighted Average Exercise Price | |||||||||||
Balance, January 1, 2014 (1,997,969 options exercisable) | 2,359,126 | $ | 42.59 | ||||||||||
Options exercised | (50,007 | ) | 21.58 | ||||||||||
Options forfeited | (869,974 | ) | 40.07 | ||||||||||
Balance, December 31, 2014 (1,077,988 options exercisable) | 1,439,145 | $ | 44.83 | ||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Options outstanding and range of exercise prices as of December 31, 2014, were as follows: | ||||||||||||
Options Outstanding | |||||||||||||
Range of Exercise Prices | Shares | Weighted Average Exercise Price | Remaining Contractual Life | ||||||||||
(in years) | |||||||||||||
$28.42-$37.74 | 491,245 | $ | 35.23 | 3.98 | |||||||||
$37.75-$53.08 | 667,458 | $ | 37.87 | 5.79 | |||||||||
$53.09-$81.19 | 280,442 | $ | 78.23 | 2.9 | |||||||||
Total | 1,439,145 | $ | 44.83 | 4.61 | |||||||||
Schedule of Stock-based Compensation Expense | Pre-tax stock-based compensation costs and the amount of stock-based compensation expense capitalized related to FirstEnergy and FES plans are included in the following tables: | ||||||||||||
FirstEnergy | Years ended December 31, | ||||||||||||
Stock-based Compensation Plan | 2014 | 2013 | 2012 | ||||||||||
(In millions) | |||||||||||||
Restricted Stock and Restricted Stock Units | $ | 31 | $ | 42 | $ | 42 | |||||||
Stock Options | — | — | 1 | ||||||||||
Performance Shares | 5 | (10 | ) | 5 | |||||||||
401(k) Savings Plan | 25 | 25 | 37 | ||||||||||
EDCP | 3 | (2 | ) | — | |||||||||
DCPD | 5 | 5 | 4 | ||||||||||
Total | $ | 69 | $ | 60 | $ | 89 | |||||||
Stock-based compensation costs capitalized | $ | 23 | $ | 20 | $ | 29 | |||||||
FES | Years ended December 31, | ||||||||||||
Stock-based Compensation Plan | 2014 | 2013 | 2012 | ||||||||||
(In millions) | |||||||||||||
Restricted Stock and Restricted Stock Units | $ | 4 | $ | 6 | $ | 6 | |||||||
Performance Shares | 1 | (1 | ) | 1 | |||||||||
401(k) Savings Plan | 4 | 4 | 6 | ||||||||||
Total | $ | 9 | $ | 9 | $ | 13 | |||||||
Stock-based compensation costs capitalized | $ | 1 | $ | 1 | $ | 1 | |||||||
Taxes_Tables
Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Taxes [Abstract] | |||||||||||||||||||||
Provision for income taxes (benefits) | |||||||||||||||||||||
PROVISION FOR INCOME TAXES (BENEFITS)(1) | 2014 | 2013 | 2012 | ||||||||||||||||||
(In millions) | |||||||||||||||||||||
FirstEnergy | |||||||||||||||||||||
Currently payable (receivable)- | |||||||||||||||||||||
Federal | $ | (132 | ) | $ | (118 | ) | $ | (130 | ) | ||||||||||||
State | (72 | ) | 70 | 28 | |||||||||||||||||
(204 | ) | (48 | ) | (102 | ) | ||||||||||||||||
Deferred, net- | |||||||||||||||||||||
Federal | 214 | 305 | 580 | ||||||||||||||||||
State | (42 | ) | (54 | ) | 78 | ||||||||||||||||
172 | 251 | 658 | |||||||||||||||||||
Investment tax credit amortization | (10 | ) | (8 | ) | (11 | ) | |||||||||||||||
Total provision for income taxes (benefits) | $ | (42 | ) | $ | 195 | $ | 545 | ||||||||||||||
FES | |||||||||||||||||||||
Currently payable (receivable)- | |||||||||||||||||||||
Federal | $ | (222 | ) | $ | (300 | ) | $ | (128 | ) | ||||||||||||
State | (13 | ) | (3 | ) | 17 | ||||||||||||||||
(235 | ) | (303 | ) | (111 | ) | ||||||||||||||||
Deferred, net- | |||||||||||||||||||||
Federal | 25 | 317 | 209 | ||||||||||||||||||
State | (14 | ) | (4 | ) | 9 | ||||||||||||||||
11 | 313 | 218 | |||||||||||||||||||
Investment tax credit amortization | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||
Total provision for income taxes (benefits) | $ | (228 | ) | $ | 6 | $ | 103 | ||||||||||||||
(1)Provision for Income Taxes (Benefits) on Income from Continuing Operations. Currently payable (receivable) in 2014 excludes $106 million and $12 million of federal and state taxes, respectively, associated with discontinued operations. Deferred, net in 2014 excludes $44 million and $5 million of federal and state tax benefits, respectively, associated with discontinued operations. | |||||||||||||||||||||
Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes | The following tables provide a reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes on continuing operations for the three years ended December 31, 2014: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
FirstEnergy | |||||||||||||||||||||
Income from Continuing Operations before provision for income taxes | $ | 171 | $ | 570 | $ | 1,299 | |||||||||||||||
Federal income tax expense at statutory rate (35%) | $ | 60 | $ | 199 | $ | 455 | |||||||||||||||
Increases (reductions) in taxes resulting from- | |||||||||||||||||||||
Amortization of investment tax credits | (10 | ) | (8 | ) | (11 | ) | |||||||||||||||
State income taxes, net of federal tax benefit | 12 | 10 | 79 | ||||||||||||||||||
Medicare Part D | — | — | 32 | ||||||||||||||||||
Effectively settled tax items, including interest | (35 | ) | (2 | ) | (20 | ) | |||||||||||||||
ESOP dividend | (6 | ) | (9 | ) | — | ||||||||||||||||
Change in accounting method | (27 | ) | — | — | |||||||||||||||||
Tax basis balance sheet adjustments | (25 | ) | — | — | |||||||||||||||||
AFUDC equity and other flow-through | (13 | ) | (7 | ) | — | ||||||||||||||||
Other, net | 2 | 12 | 10 | ||||||||||||||||||
Total provision for income taxes (benefits) | $ | (42 | ) | $ | 195 | $ | 545 | ||||||||||||||
Effective income tax rate | (24.6 | )% | 34.2 | % | 42 | % | |||||||||||||||
FES | |||||||||||||||||||||
Income (loss) from Continuing Operations before provision for income taxes (benefits) | $ | (588 | ) | $ | 52 | $ | 276 | ||||||||||||||
Federal income tax expense (benefit) at statutory rate (35%) | $ | (206 | ) | $ | 18 | $ | 97 | ||||||||||||||
Increases (reductions) in taxes resulting from- | |||||||||||||||||||||
Amortization of investment tax credits | (4 | ) | (4 | ) | (4 | ) | |||||||||||||||
State income taxes, net of federal tax benefit | (14 | ) | (5 | ) | 17 | ||||||||||||||||
Effectively settled tax items | — | — | (11 | ) | |||||||||||||||||
ESOP dividend | (1 | ) | (2 | ) | — | ||||||||||||||||
Other, net | (3 | ) | (1 | ) | 4 | ||||||||||||||||
Total provision for income taxes (benefits) | $ | (228 | ) | $ | 6 | $ | 103 | ||||||||||||||
Effective income tax rate | 38.8 | % | 11.5 | % | 37.3 | % | |||||||||||||||
Accumulated deferred income taxes | Accumulated deferred income taxes as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||
FirstEnergy | |||||||||||||||||||||
Property basis differences | $ | 9,354 | $ | 8,734 | |||||||||||||||||
Deferred sale and leaseback gain | (381 | ) | (401 | ) | |||||||||||||||||
Pension and OPEB | (1,433 | ) | (972 | ) | |||||||||||||||||
Nuclear decommissioning activities | 458 | 460 | |||||||||||||||||||
Asset retirement obligations | (641 | ) | (651 | ) | |||||||||||||||||
Regulatory asset/liability | 768 | 750 | |||||||||||||||||||
Loss carryforwards and AMT credits | (1,932 | ) | (1,598 | ) | |||||||||||||||||
Loss carryforward valuation reserve | 174 | 125 | |||||||||||||||||||
All other | 172 | 155 | |||||||||||||||||||
Net deferred income tax liability | $ | 6,539 | $ | 6,602 | |||||||||||||||||
FES | |||||||||||||||||||||
Property basis differences | $ | 1,749 | $ | 1,354 | |||||||||||||||||
Deferred sale and leaseback gain | (356 | ) | (370 | ) | |||||||||||||||||
Pension and OPEB | (373 | ) | (66 | ) | |||||||||||||||||
Lease market valuation liability | 75 | 54 | |||||||||||||||||||
Nuclear decommissioning activities | 489 | 470 | |||||||||||||||||||
Asset retirement obligations | (486 | ) | (439 | ) | |||||||||||||||||
Loss carryforwards and AMT credits | (631 | ) | (354 | ) | |||||||||||||||||
Loss carryforward valuation reserve | 32 | 27 | |||||||||||||||||||
All other | (15 | ) | 40 | ||||||||||||||||||
Net deferred income tax liability | $ | 484 | $ | 716 | |||||||||||||||||
Pre-tax net operating loss expiration period | The ultimate utilization of these NOLs may be impacted by statutory limitations on the use of NOLs imposed by state and local tax jurisdictions, changes in statutory tax rates, and changes in business which, among other things, impact both future profitability and the manner in which future taxable income is apportioned to various state and local tax jurisdictions. | ||||||||||||||||||||
Expiration Period | FirstEnergy | FES | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
State | Local | State | Local | ||||||||||||||||||
2015-2019 | $ | 63 | $ | 2,524 | $ | — | $ | 1,874 | |||||||||||||
2020-2024 | 1,813 | 646 | 182 | — | |||||||||||||||||
2025-2029 | 1,704 | — | 88 | — | |||||||||||||||||
2030-2034 | 3,172 | — | 1,001 | — | |||||||||||||||||
$ | 6,752 | $ | 3,170 | $ | 1,271 | $ | 1,874 | ||||||||||||||
Changes in unrecognized tax benefits | The following table summarizes the changes in unrecognized tax positions for the years ended 2014, 2013 and 2012: | ||||||||||||||||||||
FirstEnergy | FES | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Balance, January 1, 2012 | $ | 117 | $ | 45 | |||||||||||||||||
Current year increases | 2 | — | |||||||||||||||||||
Current year decreases | (7 | ) | — | ||||||||||||||||||
Prior years increases | 6 | 6 | |||||||||||||||||||
Prior years decreases | (37 | ) | (13 | ) | |||||||||||||||||
Decrease for settlements | (38 | ) | (35 | ) | |||||||||||||||||
Balance, December 31, 2012 | $ | 43 | $ | 3 | |||||||||||||||||
Prior years increases | 10 | — | |||||||||||||||||||
Prior years decreases | (5 | ) | — | ||||||||||||||||||
Balance, December 31, 2013 | $ | 48 | $ | 3 | |||||||||||||||||
Current year increases | 4 | — | |||||||||||||||||||
Prior years increases | 5 | — | |||||||||||||||||||
Prior years decreases | (23 | ) | — | ||||||||||||||||||
Balance, December 31, 2014 | $ | 34 | $ | 3 | |||||||||||||||||
Net interest expense (income) and cumulative net interest payable (receivable) | The following table summarizes the net interest expense (income) for the three years ended December 31, 2014 and the cumulative net interest payable as of December 31, 2014 and 2013: | ||||||||||||||||||||
Net Interest Expense (Income) | Net Interest Payable | ||||||||||||||||||||
For the Years Ended December 31, | As of December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||||||
FirstEnergy | $ | (6 | ) | $ | 1 | $ | (4 | ) | $ | 2 | $ | 9 | |||||||||
FES | — | — | (4 | ) | — | 1 | |||||||||||||||
Details of general taxes | General Taxes | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
FirstEnergy | |||||||||||||||||||||
KWH excise | $ | 194 | $ | 219 | $ | 230 | |||||||||||||||
State gross receipts | 226 | 240 | 251 | ||||||||||||||||||
Real and personal property | 393 | 368 | 328 | ||||||||||||||||||
Social security and unemployment | 112 | 110 | 126 | ||||||||||||||||||
Other | 37 | 41 | 49 | ||||||||||||||||||
Total general taxes | $ | 962 | $ | 978 | $ | 984 | |||||||||||||||
FES | |||||||||||||||||||||
State gross receipts | $ | 69 | $ | 77 | $ | 77 | |||||||||||||||
Real and personal property | 39 | 40 | 35 | ||||||||||||||||||
Social security and unemployment | 17 | 19 | 20 | ||||||||||||||||||
Other | 3 | 2 | 4 | ||||||||||||||||||
Total general taxes | $ | 128 | $ | 138 | $ | 136 | |||||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases [Abstract] | |||||||||||||
Rentals for capital and operating leases | Operating lease expense for 2014, 2013 and 2012, is summarized as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
FirstEnergy | 199 | 224 | 291 | ||||||||||
FES | 95 | 97 | 140 | ||||||||||
Future minimum capital lease payments | The future minimum capital lease payments as of December 31, 2014 are as follows: | ||||||||||||
Capital leases | FirstEnergy | FES | |||||||||||
(In millions) | |||||||||||||
2015 | $ | 39 | $ | 6 | |||||||||
2016 | 35 | 6 | |||||||||||
2017 | 30 | 5 | |||||||||||
2018 | 23 | 2 | |||||||||||
2019 | 18 | — | |||||||||||
Years thereafter | 40 | — | |||||||||||
Total minimum lease payments | 185 | 19 | |||||||||||
Interest portion | (25 | ) | (1 | ) | |||||||||
Present value of net minimum lease payments | 160 | 18 | |||||||||||
Less current portion | 34 | 5 | |||||||||||
Noncurrent portion | $ | 126 | $ | 13 | |||||||||
Future minimum operating lease payments | FirstEnergy's future minimum consolidated operating lease payments as of December 31, 2014, are as follows: | ||||||||||||
FirstEnergy | |||||||||||||
Operating Leases | Lease Payments | PNBV | Net | ||||||||||
(In millions) | |||||||||||||
2015 | $ | 245 | $ | 40 | $ | 205 | |||||||
2016 | 197 | 13 | 184 | ||||||||||
2017 | 122 | 3 | 119 | ||||||||||
2018 | 128 | — | 128 | ||||||||||
2019 | 109 | — | 109 | ||||||||||
Years thereafter | 1,482 | — | 1,482 | ||||||||||
Total minimum lease payments | $ | 2,283 | $ | 56 | $ | 2,227 | |||||||
FES' future minimum operating lease payments as of December 31, 2014, are as follows: | |||||||||||||
Operating Leases | Lease Payments | ||||||||||||
(In millions) | |||||||||||||
2015 | $ | 142 | |||||||||||
2016 | 131 | ||||||||||||
2017 | 81 | ||||||||||||
2018 | 101 | ||||||||||||
2019 | 97 | ||||||||||||
Years thereafter | 1,383 | ||||||||||||
Total minimum lease payments | $ | 1,935 | |||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Future Amortization | As of December 31, 2014, intangible assets classified in Other Deferred Charges on FirstEnergy’s Consolidated Balance Sheet, include the following: | ||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Amortization Expense | ||||||||||||||||||||||||||||||||||||||||
Actual | Estimated | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Gross | Accumulated Amortization | Net | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||||||||||||
NUG contracts(1) | $ | 124 | $ | 20 | $ | 104 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 79 | |||||||||||||||||||||
OVEC | 54 | 7 | 47 | 2 | 2 | 2 | 2 | 2 | 2 | 37 | |||||||||||||||||||||||||||||||
Coal contracts(2)(3) | 556 | 289 | 267 | 55 | 51 | 51 | 45 | 30 | 30 | 19 | |||||||||||||||||||||||||||||||
FES customer contracts | 148 | 70 | 78 | 18 | 17 | 17 | 16 | 14 | 13 | 1 | |||||||||||||||||||||||||||||||
$ | 882 | $ | 386 | $ | 496 | $ | 80 | $ | 75 | $ | 75 | $ | 68 | $ | 51 | $ | 50 | $ | 136 | ||||||||||||||||||||||
-1 | NUG contracts are subject to regulatory accounting and their amortization does not impact earnings. | ||||||||||||||||||||||||||||||||||||||||
-2 | A gross amount of $40 million ($29 million, net) of the coal contracts is related to FES. The 2014 and estimated 2015 to 2019 amortization expense for FES is $5.7 million annually. | ||||||||||||||||||||||||||||||||||||||||
-3 | A gross amount of $102 million ($41 million, net) of the coal contracts was recorded with a regulatory offset and the amortization does not impact earnings. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Variable Interest Entities [Abstract] | ||||||||||||
Net exposure to loss based upon the casualty value provisions | The following table discloses each company’s net exposure to loss based upon the casualty value provisions as of December 31, 2014: | |||||||||||
Maximum | Discounted Lease | Net | ||||||||||
Exposure | Payments, net | Exposure | ||||||||||
(In millions) | ||||||||||||
FirstEnergy | $ | 1,308 | $ | 1,050 | $ | 258 | ||||||
FES | $ | 1,217 | $ | 1,003 | $ | 214 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments [Line Items] | ||||||||||||||||||||||||||||||||||||
Assets and liabilities measured on recurring basis | The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy: | |||||||||||||||||||||||||||||||||||
FirstEnergy | ||||||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets | (In millions) | |||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 1,221 | $ | — | $ | 1,221 | $ | — | $ | 1,365 | $ | — | $ | 1,365 | ||||||||||||||||||||
Derivative assets - commodity contracts | 1 | 171 | — | 172 | 7 | 208 | — | 215 | ||||||||||||||||||||||||||||
Derivative assets - FTRs | — | — | 39 | 39 | — | — | 4 | 4 | ||||||||||||||||||||||||||||
Derivative assets - NUG contracts(1) | — | — | 2 | 2 | — | — | 20 | 20 | ||||||||||||||||||||||||||||
Equity securities(2) | 592 | — | — | 592 | 317 | — | — | 317 | ||||||||||||||||||||||||||||
Foreign government debt securities | — | 76 | — | 76 | — | 109 | — | 109 | ||||||||||||||||||||||||||||
U.S. government debt securities | — | 182 | — | 182 | — | 165 | — | 165 | ||||||||||||||||||||||||||||
U.S. state debt securities | — | 237 | — | 237 | — | 228 | — | 228 | ||||||||||||||||||||||||||||
Other(3) | 55 | 256 | — | 311 | 187 | 255 | — | 442 | ||||||||||||||||||||||||||||
Total assets | $ | 648 | $ | 2,143 | $ | 41 | $ | 2,832 | $ | 511 | $ | 2,330 | $ | 24 | $ | 2,865 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Derivative liabilities - commodity contracts | $ | (26 | ) | $ | (141 | ) | $ | — | $ | (167 | ) | $ | (13 | ) | $ | (100 | ) | $ | — | $ | (113 | ) | ||||||||||||||
Derivative liabilities - FTRs | — | — | (14 | ) | (14 | ) | — | — | (12 | ) | (12 | ) | ||||||||||||||||||||||||
Derivative liabilities - NUG contracts(1) | — | — | (153 | ) | (153 | ) | — | — | (222 | ) | (222 | ) | ||||||||||||||||||||||||
Total liabilities | $ | (26 | ) | $ | (141 | ) | $ | (167 | ) | $ | (334 | ) | $ | (13 | ) | $ | (100 | ) | $ | (234 | ) | $ | (347 | ) | ||||||||||||
Net assets (liabilities)(4) | $ | 622 | $ | 2,002 | $ | (126 | ) | $ | 2,498 | $ | 498 | $ | 2,230 | $ | (210 | ) | $ | 2,518 | ||||||||||||||||||
(1) | NUG contracts are subject to regulatory accounting treatment and do not impact earnings. | |||||||||||||||||||||||||||||||||||
(2) | NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index or the Wells Fargo Hybrid and Preferred Securities REIT index. | |||||||||||||||||||||||||||||||||||
(3) | Primarily consists of cash and short-term cash investments. | |||||||||||||||||||||||||||||||||||
(4) | Excludes $40 million and $10 million as of December 31, 2014 and December 31, 2013, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | |||||||||||||||||||||||||||||||||||
Reconciliation of changes in the fair value roll forward of level 3 measurements of NUG contracts | The following table provides a reconciliation of changes in the fair value of NUG contracts, LCAPP contracts, and FTRs that are classified as Level 3 in the fair value hierarchy for the periods ended December 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||
NUG Contracts(1) | LCAPP Contracts(1) | FTRs | ||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Net | Derivative Assets | Derivative Liabilities | Net | Derivative Assets | Derivative Liabilities | Net | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
January 1, 2013 Balance | $ | 36 | $ | (290 | ) | $ | (254 | ) | $ | — | $ | (144 | ) | $ | (144 | ) | $ | 8 | $ | (9 | ) | $ | (1 | ) | ||||||||||||
Unrealized gain (loss) | (8 | ) | (17 | ) | (25 | ) | — | (22 | ) | (22 | ) | 3 | 1 | 4 | ||||||||||||||||||||||
Purchases | — | — | — | — | — | — | 6 | (15 | ) | (9 | ) | |||||||||||||||||||||||||
Terminations(2) | — | — | — | — | 166 | 166 | — | — | — | |||||||||||||||||||||||||||
Settlements | (8 | ) | 85 | 77 | — | — | — | (13 | ) | 11 | (2 | ) | ||||||||||||||||||||||||
December 31, 2013 Balance | $ | 20 | $ | (222 | ) | $ | (202 | ) | $ | — | $ | — | $ | — | $ | 4 | $ | (12 | ) | $ | (8 | ) | ||||||||||||||
Unrealized gain (loss) | 2 | (2 | ) | — | — | — | — | 47 | (1 | ) | 46 | |||||||||||||||||||||||||
Purchases | — | — | — | — | — | — | 26 | (16 | ) | 10 | ||||||||||||||||||||||||||
Settlements | (20 | ) | 71 | 51 | — | — | — | (38 | ) | 15 | (23 | ) | ||||||||||||||||||||||||
December 31, 2014 Balance | $ | 2 | $ | (153 | ) | $ | (151 | ) | $ | — | $ | — | $ | — | $ | 39 | $ | (14 | ) | $ | 25 | |||||||||||||||
(1) | Changes in the fair value of NUG and LCAPP contracts are subject to regulatory accounting treatment and do not impact earnings. | |||||||||||||||||||||||||||||||||||
(2) | LCAPP contracts are financially settled agreements associated with capacity in New Jersey. During the fourth quarter of 2013, all LCAPP contracts were terminated after being declared unconstitutional by the U.S. District Court for the District of New Jersey. | |||||||||||||||||||||||||||||||||||
Quantitative information for level 3 valuation | The following table provides quantitative information for FTRs and NUG contracts that are classified as Level 3 in the fair value hierarchy for the period ended December 31, 2014: | |||||||||||||||||||||||||||||||||||
Fair Value, Net (In millions) | Valuation | Significant Input | Range | Weighted Average | Units | |||||||||||||||||||||||||||||||
Technique | ||||||||||||||||||||||||||||||||||||
FTRs | $ | 25 | Model | RTO auction clearing prices | ($7.20) to $19.30 | $1.40 | Dollars/MWH | |||||||||||||||||||||||||||||
NUG Contracts | $ | (151 | ) | Model | Generation | 500 to 4,756,000 | 950,000 | MWH | ||||||||||||||||||||||||||||
Regional electricity prices | $44.40 to $69.80 | $51.80 | Dollars/MWH | |||||||||||||||||||||||||||||||||
Amortized cost basis, unrealized gains and losses and fair values of investments in available-for-sale securities | The following table summarizes the amortized cost basis, unrealized gains (there were no unrealized losses) and fair values of investments held in NDT, nuclear fuel disposal and NUG trusts as of December 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||
December 31, 2014(1) | December 31, 2013(2) | |||||||||||||||||||||||||||||||||||
Cost Basis | Unrealized Gains | Fair Value | Cost Basis | Unrealized Gains | Fair Value | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 1,724 | $ | 27 | $ | 1,751 | $ | 1,881 | $ | 33 | $ | 1,914 | ||||||||||||||||||||||||
FES | 788 | 13 | 801 | 918 | 17 | 935 | ||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 533 | $ | 58 | $ | 591 | $ | 308 | $ | 9 | $ | 317 | ||||||||||||||||||||||||
FES | 329 | 31 | 360 | 207 | — | 207 | ||||||||||||||||||||||||||||||
(1) | Excludes short-term cash investments: FE Consolidated - $241 million; FES - $204 million. | |||||||||||||||||||||||||||||||||||
(2) | Excludes short-term cash investments: FE Consolidated - $204 million; FES - $135 million. | |||||||||||||||||||||||||||||||||||
Proceeds from the sale of investments in available-for-sale securities, realized gains and losses on those sales, and interest and dividend income | Proceeds from the sale of investments in AFS securities, realized gains and losses on those sales, OTTI and interest and dividend income for the three years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||||||||||
December 31, 2014 | Sale Proceeds | Realized Gains | Realized Losses | OTTI | Interest and | |||||||||||||||||||||||||||||||
Dividend Income | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 2,133 | $ | 146 | $ | (75 | ) | $ | (37 | ) | $ | 96 | ||||||||||||||||||||||||
FES | 1,163 | 113 | (54 | ) | (33 | ) | 56 | |||||||||||||||||||||||||||||
December 31, 2013 | Sale Proceeds | Realized Gains | Realized Losses | OTTI | Interest and Dividend Income | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 2,047 | $ | 92 | $ | (46 | ) | $ | (90 | ) | $ | 101 | ||||||||||||||||||||||||
FES | 940 | 70 | (21 | ) | (79 | ) | 60 | |||||||||||||||||||||||||||||
December 31, 2012 | Sale Proceeds | Realized Gains | Realized Losses | OTTI | Interest and | |||||||||||||||||||||||||||||||
Dividend Income | ||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 2,980 | $ | 179 | $ | (83 | ) | $ | (16 | ) | $ | 70 | ||||||||||||||||||||||||
FES | 1,464 | 124 | (59 | ) | (14 | ) | 39 | |||||||||||||||||||||||||||||
Amortized cost basis, unrealized gains and losses, and approximate fair values of investments in held-to-maturity securities | The following table provides the amortized cost basis, unrealized gains (there were no unrealized losses) and approximate fair values of investments in held-to-maturity securities as of December 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||
Cost Basis | Unrealized Gains | Fair Value | Cost Basis | Unrealized Gains | Fair Value | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 13 | $ | 4 | $ | 17 | $ | 33 | $ | 2 | $ | 35 | ||||||||||||||||||||||||
Fair value and related carrying amounts of long-term debt and other long-term obligations | The following table provides the approximate fair value and related carrying amounts of long-term debt and other long-term obligations, excluding capital lease obligations and net unamortized premiums and discounts: | |||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
FirstEnergy | $ | 19,828 | $ | 21,733 | $ | 17,049 | $ | 17,957 | ||||||||||||||||||||||||||||
FES | 3,097 | 3,241 | 3,001 | 3,073 | ||||||||||||||||||||||||||||||||
FES | ||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments [Line Items] | ||||||||||||||||||||||||||||||||||||
Assets and liabilities measured on recurring basis | ||||||||||||||||||||||||||||||||||||
FES | ||||||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets | (In millions) | |||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 655 | $ | — | $ | 655 | $ | — | $ | 792 | $ | — | $ | 792 | ||||||||||||||||||||
Derivative assets - commodity contracts | 1 | 171 | — | 172 | 7 | 208 | — | 215 | ||||||||||||||||||||||||||||
Derivative assets - FTRs | — | — | 27 | 27 | — | — | 3 | 3 | ||||||||||||||||||||||||||||
Equity securities(1) | 360 | — | — | 360 | 207 | — | — | 207 | ||||||||||||||||||||||||||||
Foreign government debt securities | — | 57 | — | 57 | — | 65 | — | 65 | ||||||||||||||||||||||||||||
U.S. government debt securities | — | 46 | — | 46 | — | 27 | — | 27 | ||||||||||||||||||||||||||||
U.S. state debt securities | — | 4 | — | 4 | — | — | — | — | ||||||||||||||||||||||||||||
Other(2) | — | 199 | — | 199 | — | 176 | — | 176 | ||||||||||||||||||||||||||||
Total assets | $ | 361 | $ | 1,132 | $ | 27 | $ | 1,520 | $ | 214 | $ | 1,268 | $ | 3 | $ | 1,485 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Derivative liabilities - commodity contracts | $ | (26 | ) | $ | (141 | ) | $ | — | $ | (167 | ) | $ | (13 | ) | $ | (100 | ) | $ | — | $ | (113 | ) | ||||||||||||||
Derivative liabilities - FTRs | — | — | (13 | ) | (13 | ) | — | — | (11 | ) | (11 | ) | ||||||||||||||||||||||||
Total liabilities | $ | (26 | ) | $ | (141 | ) | $ | (13 | ) | $ | (180 | ) | $ | (13 | ) | $ | (100 | ) | $ | (11 | ) | $ | (124 | ) | ||||||||||||
Net assets (liabilities)(3) | $ | 335 | $ | 991 | $ | 14 | $ | 1,340 | $ | 201 | $ | 1,168 | $ | (8 | ) | $ | 1,361 | |||||||||||||||||||
(1) | NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index or the Wells Fargo Hybrid and Preferred Securities REIT index. | |||||||||||||||||||||||||||||||||||
(2) | Primarily consists of short-term cash investments. | |||||||||||||||||||||||||||||||||||
(3) | Excludes $44 million and $9 million as of December 31, 2014 and December 31, 2013, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table. | |||||||||||||||||||||||||||||||||||
Reconciliation of changes in the fair value roll forward of level 3 measurements of NUG contracts | The following table provides a reconciliation of changes in the fair value of FTRs held by FES and classified as Level 3 in the fair value hierarchy for the periods ended December 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||
Derivative Asset | Derivative Liability | Net Asset/(Liability) | ||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||
January 1, 2013 Balance | $ | 6 | $ | (6 | ) | $ | — | |||||||||||||||||||||||||||||
Unrealized loss | — | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||||
Purchases | 5 | (12 | ) | (7 | ) | |||||||||||||||||||||||||||||||
Settlements | (8 | ) | 9 | 1 | ||||||||||||||||||||||||||||||||
December 31, 2013 Balance | $ | 3 | $ | (11 | ) | $ | (8 | ) | ||||||||||||||||||||||||||||
Unrealized gain (loss) | 34 | (1 | ) | 33 | ||||||||||||||||||||||||||||||||
Purchases | 15 | (16 | ) | (1 | ) | |||||||||||||||||||||||||||||||
Settlements | (25 | ) | 15 | (10 | ) | |||||||||||||||||||||||||||||||
December 31, 2014 Balance | $ | 27 | $ | (13 | ) | $ | 14 | |||||||||||||||||||||||||||||
Quantitative information for level 3 valuation | The following table provides quantitative information for FTRs held by FES that are classified as Level 3 in the fair value hierarchy for the period ended December 31, 2014: | |||||||||||||||||||||||||||||||||||
Fair Value, Net (In millions) | Valuation | Significant Input | Range | Weighted Average | Units | |||||||||||||||||||||||||||||||
Technique | ||||||||||||||||||||||||||||||||||||
FTRs | $ | 14 | Model | RTO auction clearing prices | ($7.20) to $19.30 | $1.10 | Dollars/MWH | |||||||||||||||||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Fair value of derivatives instruments | The following table summarizes the fair value and classification of derivative instruments on FirstEnergy’s Consolidated Balance Sheets: | ||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | (In millions) | ||||||||||||||||
Current Assets - Derivatives | Current Liabilities - Derivatives | ||||||||||||||||
Commodity Contracts | $ | 121 | $ | 162 | Commodity Contracts | $ | (154 | ) | $ | (102 | ) | ||||||
FTRs | 38 | 4 | FTRs | (13 | ) | (9 | ) | ||||||||||
159 | 166 | (167 | ) | (111 | ) | ||||||||||||
Noncurrent Liabilities - Adverse Power Contract Liability | |||||||||||||||||
Deferred Charges and Other Assets - Other | NUGs | (153 | ) | (222 | ) | ||||||||||||
Commodity Contracts | 51 | 53 | Noncurrent Liabilities - Other | ||||||||||||||
FTRs | 1 | — | Commodity Contracts | (13 | ) | (11 | ) | ||||||||||
NUGs | 2 | 20 | FTRs | (1 | ) | (3 | ) | ||||||||||
54 | 73 | (167 | ) | (236 | ) | ||||||||||||
Derivative Assets | $ | 213 | $ | 239 | Derivative Liabilities | $ | (334 | ) | $ | (347 | ) | ||||||
Offsetting assets and liabilities | The following tables summarize the fair value of derivative instruments on FirstEnergy’s Consolidated Balance Sheets and the effect of netting arrangements and collateral on its financial position: | ||||||||||||||||
Amounts Not Offset in Consolidated Balance Sheet | |||||||||||||||||
December 31, 2014 | Fair Value | Derivative Instruments | Cash Collateral (Received)/Pledged | Net Fair Value | |||||||||||||
(In millions) | |||||||||||||||||
Derivative Assets | |||||||||||||||||
Commodity contracts | $ | 172 | $ | (126 | ) | $ | — | $ | 46 | ||||||||
FTRs | 39 | (14 | ) | — | 25 | ||||||||||||
NUG contracts | 2 | — | — | 2 | |||||||||||||
$ | 213 | $ | (140 | ) | $ | — | $ | 73 | |||||||||
Derivative Liabilities | |||||||||||||||||
Commodity contracts | $ | (167 | ) | $ | 126 | $ | 35 | $ | (6 | ) | |||||||
FTRs | (14 | ) | 14 | — | — | ||||||||||||
NUG contracts | (153 | ) | — | — | (153 | ) | |||||||||||
$ | (334 | ) | $ | 140 | $ | 35 | $ | (159 | ) | ||||||||
Amounts Not Offset in Consolidated Balance Sheet | |||||||||||||||||
December 31, 2013 | Fair Value | Derivative Instruments | Cash Collateral (Received)/Pledged | Net Fair Value | |||||||||||||
(In millions) | |||||||||||||||||
Derivative Assets | |||||||||||||||||
Commodity contracts | $ | 215 | $ | (106 | ) | $ | (9 | ) | $ | 100 | |||||||
FTRs | 4 | (4 | ) | — | — | ||||||||||||
NUG contracts | 20 | — | — | 20 | |||||||||||||
$ | 239 | $ | (110 | ) | $ | (9 | ) | $ | 120 | ||||||||
Derivative Liabilities | |||||||||||||||||
Commodity contracts | $ | (113 | ) | $ | 106 | $ | 7 | $ | — | ||||||||
FTRs | (12 | ) | 4 | 5 | (3 | ) | |||||||||||
NUG contracts | (222 | ) | — | — | (222 | ) | |||||||||||
$ | (347 | ) | $ | 110 | $ | 12 | $ | (225 | ) | ||||||||
Volume of First Energy's outstanding derivative transactions | The following table summarizes the volumes associated with FirstEnergy’s outstanding derivative transactions as of December 31, 2014: | ||||||||||||||||
Purchases | Sales | Net | Units | ||||||||||||||
(In millions) | |||||||||||||||||
Power Contracts | 21 | 33 | (12 | ) | MWH | ||||||||||||
FTRs | 43 | — | 43 | MWH | |||||||||||||
NUGs | 6 | — | 6 | MWH | |||||||||||||
Natural Gas | 40 | — | 40 | mmBTU | |||||||||||||
Effect of derivative instruments on statements of income and comprehensive income | The effect of derivative instruments not in a hedging relationship on the Consolidated Statements of Income during 2014 and 2013 are summarized in the following tables: | ||||||||||||||||
Year Ended December 31 | |||||||||||||||||
Commodity | FTRs | Interest Rate Swaps | Total | ||||||||||||||
Contracts | |||||||||||||||||
(In millions) | |||||||||||||||||
2014 | |||||||||||||||||
Unrealized Gain (Loss) Recognized in: | |||||||||||||||||
Other Operating Expense(1) | $ | (86 | ) | $ | 22 | $ | — | $ | (64 | ) | |||||||
Realized Gain (Loss) Reclassified to: | |||||||||||||||||
Revenues(2) | $ | (6 | ) | $ | 68 | $ | — | $ | 62 | ||||||||
Purchased Power Expense(3) | 365 | — | — | 365 | |||||||||||||
Other Operating Expense(4) | — | (44 | ) | — | (44 | ) | |||||||||||
Fuel Expense | (6 | ) | — | — | (6 | ) | |||||||||||
Interest Expense | — | — | 14 | 14 | |||||||||||||
(1) Includes ($86) million for commodity contracts and $21 million for FTRs associated with FES. | |||||||||||||||||
(2) Represents losses on structured financial contracts. Includes ($6) million for commodity contracts and $67 million for FTRs associated with FES. | |||||||||||||||||
(3) Realized losses on financially settled wholesale sales contracts of $252 million resulting from higher market prices were netted in purchased power. Includes $365 million for commodity contracts associated with FES. | |||||||||||||||||
(4) Includes ($43) million for FTRs associated with FES. | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
Commodity | FTRs | Total | |||||||||||||||
Contracts | |||||||||||||||||
(In millions) | |||||||||||||||||
2013 | |||||||||||||||||
Unrealized Gain (Loss) Recognized in: | |||||||||||||||||
Other Operating Expense(5) | $ | 11 | $ | (8 | ) | $ | 3 | ||||||||||
Realized Gain (Loss) Reclassified to: | |||||||||||||||||
Revenues(6) | $ | 46 | $ | 21 | $ | 67 | |||||||||||
Purchased Power Expense(7) | (38 | ) | — | (38 | ) | ||||||||||||
Other Operating Expense(8) | — | (36 | ) | (36 | ) | ||||||||||||
Fuel Expense | (2 | ) | — | (2 | ) | ||||||||||||
(5) Includes $11 million for commodity contracts and ($8) million for FTRs associated with FES. | |||||||||||||||||
(6) Includes $46 million for commodity contracts and $19 million for FTRs associated with FES. | |||||||||||||||||
(7) Includes ($38) million for commodity contracts associated with FES. | |||||||||||||||||
(8) Includes ($33) million for FTRs associated with FES. | |||||||||||||||||
Reconciliation of changes in the fair value of certain contracts that are deferred | The following table provides a reconciliation of changes in the fair value of FirstEnergy's derivative instruments subject to regulatory accounting during 2014 and 2013. Changes in the value of these contracts are deferred for future recovery from (or credit to) customers: | ||||||||||||||||
Year Ended December 31 | |||||||||||||||||
Derivatives Not in a Hedging Relationship with Regulatory Offset | NUGs | LCAPP(1) | Regulated FTRs | Total | |||||||||||||
(In millions) | |||||||||||||||||
Outstanding net liability as of January 1, 2014 | $ | (202 | ) | $ | — | $ | — | $ | (202 | ) | |||||||
Unrealized gain (loss) | (1 | ) | — | 13 | 12 | ||||||||||||
Purchases | — | — | 11 | 11 | |||||||||||||
Settlements | 52 | — | (13 | ) | 39 | ||||||||||||
Outstanding net asset (liability) as of December 31, 2014 | $ | (151 | ) | $ | — | $ | 11 | $ | (140 | ) | |||||||
Outstanding net liability as of January 1, 2013 | $ | (254 | ) | $ | (144 | ) | $ | — | $ | (398 | ) | ||||||
Unrealized gain (loss) | (23 | ) | (22 | ) | 4 | (41 | ) | ||||||||||
Purchases | — | — | (3 | ) | (3 | ) | |||||||||||
Terminations | — | 166 | — | 166 | |||||||||||||
Settlements | 75 | — | (1 | ) | 74 | ||||||||||||
Outstanding net liability as of December 31, 2013 | $ | (202 | ) | $ | — | $ | — | $ | (202 | ) | |||||||
(1) | LCAPP contracts are financially settled agreements associated with capacity in New Jersey. During the fourth quarter of 2013, all LCAPP contracts were terminated after being declared unconstitutional by the U.S. District Court for the District of New Jersey. |
Capitalization_Tables
Capitalization (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Capitalization, Long-term Debt and Equity [Abstract] | |||||||||||||||
Preferred stock and preference stock authorizations | FirstEnergy and the Utilities were authorized to issue preferred stock and preference stock as of December 31, 2014, as follows: | ||||||||||||||
Preferred Stock | Preference Stock | ||||||||||||||
Shares Authorized | Par Value | Shares Authorized | Par Value | ||||||||||||
FirstEnergy | 5,000,000 | $ | 100 | ||||||||||||
OE | 6,000,000 | $ | 100 | 8,000,000 | no par | ||||||||||
OE | 8,000,000 | $ | 25 | ||||||||||||
Penn | 1,200,000 | $ | 100 | ||||||||||||
CEI | 4,000,000 | no par | 3,000,000 | no par | |||||||||||
TE | 3,000,000 | $ | 100 | 5,000,000 | $ | 25 | |||||||||
TE | 12,000,000 | $ | 25 | ||||||||||||
JCP&L | 15,600,000 | no par | |||||||||||||
ME | 10,000,000 | no par | |||||||||||||
PN | 11,435,000 | no par | |||||||||||||
MP | 940,000 | $ | 100 | ||||||||||||
PE | 10,000,000 | $ | 0.01 | ||||||||||||
WP | 32,000,000 | no par | |||||||||||||
Outstanding consolidated long-term debt and other long-term obligations | The following tables present outstanding long-term debt and capital lease obligations for FirstEnergy and FES as of December 31, 2014 and 2013: | ||||||||||||||
As of December 31, 2014 | As of December 31 | ||||||||||||||
(Dollar amounts in millions) | Maturity Date | Interest Rate | 2014 | 2013 | |||||||||||
FirstEnergy: | |||||||||||||||
FMBs | 2015 - 2044 | 3.340% - 9.740% | $ | 3,190 | $ | 3,166 | |||||||||
Secured notes - fixed rate | 2015 - 2037 | 0.000% - 7.880% | 1,793 | 1,804 | |||||||||||
Unsecured notes - fixed rate | 2015 - 2044 | 2.150% - 7.700% | 13,532 | 11,076 | |||||||||||
Unsecured notes - variable rate | 2015 - 2019 | 0.030% - 1.920% | 1,292 | 959 | |||||||||||
Total unsecured notes | 14,824 | 12,035 | |||||||||||||
Capital lease obligations | 160 | 188 | |||||||||||||
Unamortized debt premiums (discounts) | (8 | ) | 9 | ||||||||||||
Unamortized fair value adjustments | 21 | 44 | |||||||||||||
Currently payable long-term debt | (804 | ) | (1,415 | ) | |||||||||||
Total long-term debt and other long-term obligations | $ | 19,176 | $ | 15,831 | |||||||||||
FES: | |||||||||||||||
Secured notes - fixed rate | 2015 - 2017 | 0.000% - 12.000% | $ | 126 | $ | 188 | |||||||||
Unsecured notes - fixed rate | 2015 - 2039 | 2.150% - 6.800% | 2,879 | 2,077 | |||||||||||
Unsecured notes - variable rate | 2015 - 2015 | 0.030% - 0.050% | 92 | 736 | |||||||||||
Total unsecured notes | 2,971 | 2,813 | |||||||||||||
Capital lease obligations | 18 | 22 | |||||||||||||
Unamortized debt discounts | (1 | ) | (1 | ) | |||||||||||
Currently payable long-term debt | (506 | ) | (892 | ) | |||||||||||
Total long-term debt and other long-term obligations | $ | 2,608 | $ | 2,130 | |||||||||||
Sinking fund requirements for FMBs and maturing long-term debt (excluding capital leases and variable rate PCRBs) for the next five years | The following table presents scheduled debt repayments for outstanding long-term debt, excluding capital leases, fair value purchase accounting adjustments and unamortized debt discounts and premiums, for the next five years as of December 31, 2014. PCRBs that can be tendered for mandatory purchase prior to maturity are reflected in 2015. | ||||||||||||||
Year | FirstEnergy | FES | |||||||||||||
(In millions) | |||||||||||||||
2015 | $ | 769 | $ | 501 | |||||||||||
2016 | 1,241 | 416 | |||||||||||||
2017 | 1,641 | 163 | |||||||||||||
2018 | 1,687 | 501 | |||||||||||||
2019 | 2,266 | 322 | |||||||||||||
Outstanding PCRBs for the next three years | The following table classifies the outstanding fixed rate put PCRBs and variable rate PCRBs by year, excluding unamortized debt discounts and premiums, for the next five years based on the next date on which the debt holders may exercise their right to tender their PCRBs. | ||||||||||||||
Year | FirstEnergy | FES | |||||||||||||
(In millions) | |||||||||||||||
2015 | $ | 405 | $ | 405 | |||||||||||
2016 | 391 | 391 | |||||||||||||
2017 | 130 | 130 | |||||||||||||
2018 | 359 | 359 | |||||||||||||
2019 | 232 | 232 | |||||||||||||
Amounts and percentages of LOCs and Insurance Policies for FirstEnergy, FES and Utilities | The amounts and annual fees for PCRB-related LOCs for FirstEnergy and FES as of December 31, 2014, are as follows: | ||||||||||||||
Aggregate LOC Amount (1) | Annual Fees | ||||||||||||||
(In millions) | |||||||||||||||
FirstEnergy | $ | 93 | 1.65% | ||||||||||||
FES | 93 | 1.65% | |||||||||||||
ShortTerm_Borrowings_and_Bank_1
Short-Term Borrowings and Bank Lines of Credit (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Short-term Borrowings and Bank Lines of Credit [Abstract] | |||||||||||||
Liquidity | FirstEnergy’s available liquidity under the Facilities as of January 31, 2015 was as follows: | ||||||||||||
Borrower(s) | Type | Maturity | Commitment | Available Liquidity | |||||||||
(In millions) | |||||||||||||
FirstEnergy(1) | Revolving | Mar-19 | $ | 3,500 | $ | 1,469 | |||||||
FES / AE Supply | Revolving | Mar-19 | 1,500 | 1,435 | |||||||||
FET(2) | Revolving | Mar-19 | 1,000 | 1,000 | |||||||||
Subtotal | $ | 6,000 | $ | 3,904 | |||||||||
Cash | — | 58 | |||||||||||
Total | $ | 6,000 | $ | 3,962 | |||||||||
-1 | FE and the Utilities | ||||||||||||
-2 | Includes FET, ATSI and TrAIL as subsidiary borrowers | ||||||||||||
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | The following table summarizes the borrowing sub-limits for each borrower under the Facilities, the limitations on short-term indebtedness applicable to each borrower under current regulatory approvals and applicable statutory and/or charter limitations, as of December 31, 2014: | ||||||||||||
Borrower | Revolving Credit Facility Sub-Limits | Regulatory and Other Short-Term Debt Limitations | |||||||||||
(In millions) | |||||||||||||
FE | $ | 3,500 | $ | — | (1) | ||||||||
FES | 1,500 | — | (2) | ||||||||||
AE Supply | 1,000 | — | (2) | ||||||||||
FET | 1,000 | — | (1) | ||||||||||
OE | 500 | 500 | (3) | ||||||||||
CEI | 500 | 500 | (3) | ||||||||||
TE | 500 | 500 | (3) | ||||||||||
JCP&L | 600 | 850 | (3) | ||||||||||
ME | 300 | 500 | (3) | ||||||||||
PN | 300 | 300 | (3) | ||||||||||
WP | 200 | 200 | (3) | ||||||||||
MP | 500 | 500 | (3) | ||||||||||
PE | 150 | 150 | (3) | ||||||||||
ATSI | 500 | 500 | (3) | ||||||||||
Penn | 50 | 50 | (3) | ||||||||||
TrAIL | 400 | 400 | (3) | ||||||||||
-1 | No limitations. | ||||||||||||
-2 | No limitation based upon blanket financing authorization from the FERC under existing market-based rate tariffs. | ||||||||||||
-3 | Excluding amounts which may be borrowed under the regulated companies' money pool. | ||||||||||||
Weighted average interest rates on short-term borrowings outstanding | The weighted average interest rates on short-term borrowings outstanding, including borrowings under the FirstEnergy Money Pools, as of December 31, 2014 and 2013, were as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
FirstEnergy | 1.96 | % | 1.8 | % | |||||||||
FES | 3.34 | % | — | % |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Asset Retirement Obligation [Abstract] | |||||||||
Fair values of the decommissioning trust assets | The fair values of the decommissioning trust assets as of December 31, 2014 and 2013 were as follows: | ||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
FirstEnergy | $ | 2,341 | $ | 2,201 | |||||
FES | $ | 1,365 | $ | 1,276 | |||||
Changes to the asset retirement obligations | The following table summarizes the changes to the ARO balances during 2014 and 2013: | ||||||||
ARO Reconciliation | FirstEnergy | FES | |||||||
(In millions) | |||||||||
Balance, January 1, 2013 | $ | 1,599 | $ | 965 | |||||
Liabilities settled | (18 | ) | (18 | ) | |||||
Accretion | 115 | 71 | |||||||
Revisions in estimated cash flows | (18 | ) | (3 | ) | |||||
Balance, December 31, 2013 | $ | 1,678 | $ | 1,015 | |||||
Liabilities settled | (9 | ) | (7 | ) | |||||
Accretion | 113 | 66 | |||||||
Revisions in estimated cash flows | (395 | ) | (233 | ) | |||||
Balance, December 31, 2014 | $ | 1,387 | $ | 841 | |||||
Commitments_Guarantees_and_Con1
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Schedule of Guarantor Obligations | The following table discloses the additional credit contingent contractual obligations that may be required under certain events as of December 31, 2014: | ||||||||||||||||
Collateral Provisions | FES | AE Supply | Utilities | Total | |||||||||||||
(In millions) | |||||||||||||||||
Split Rating (One rating agency's rating below investment grade) | $ | 603 | $ | 6 | $ | 48 | $ | 657 | |||||||||
BB+/Ba1 Credit Ratings | $ | 643 | $ | 6 | $ | 48 | $ | 697 | |||||||||
Full impact of credit contingent contractual obligations | $ | 886 | $ | 72 | $ | 86 | $ | 1,044 | |||||||||
Transactions_With_Affiliated_C1
Transactions With Affiliated Companies (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Transactions With Affiliated Companies [Abstract] | ||||||||||||||
Affiliated Company Transactions | The primary affiliated company transactions for FES during the three years ended December 31, 2014 are as follows: | |||||||||||||
FES | 2014 | 2013 | 2012 | |||||||||||
(In millions) | ||||||||||||||
Revenues: | ||||||||||||||
Electric sales to affiliates | $ | 861 | $ | 652 | $ | 515 | ||||||||
Other | 6 | 6 | 16 | |||||||||||
Expenses: | ||||||||||||||
Purchased power from affiliates | 271 | 486 | 451 | |||||||||||
Fuel | 1 | — | 2 | |||||||||||
Support services | 619 | 619 | 570 | |||||||||||
Investment Income: | ||||||||||||||
Interest income from FE | 3 | 2 | 2 | |||||||||||
Interest Expense: | ||||||||||||||
Interest expense to affiliates | 3 | 4 | 10 | |||||||||||
Interest expense to FE | 4 | 6 | 1 | |||||||||||
Supplemental_Guarantor_Informa1
Supplemental Guarantor Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | |||||||||||||||||||||
Condensed Consolidating Statements of Income and Comprehensive Income | FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2014 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
STATEMENTS OF INCOME (LOSS) | |||||||||||||||||||||
REVENUES | $ | 5,990 | $ | 1,902 | $ | 2,172 | $ | (3,920 | ) | $ | 6,144 | ||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Fuel | — | 1,055 | 198 | — | 1,253 | ||||||||||||||||
Purchased power from affiliates | 3,920 | — | 271 | (3,920 | ) | 271 | |||||||||||||||
Purchased power from non-affiliates | 2,767 | 4 | — | — | 2,771 | ||||||||||||||||
Other operating expenses | 790 | 269 | 527 | 49 | 1,635 | ||||||||||||||||
Pension and OPEB mark-to-market adjustments | 19 | 90 | 188 | — | 297 | ||||||||||||||||
Provision for depreciation | 10 | 119 | 193 | (3 | ) | 319 | |||||||||||||||
General taxes | 72 | 31 | 25 | — | 128 | ||||||||||||||||
Total operating expenses | 7,578 | 1,568 | 1,402 | (3,874 | ) | 6,674 | |||||||||||||||
OPERATING INCOME (LOSS) | (1,588 | ) | 334 | 770 | (46 | ) | (530 | ) | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||
Loss on debt redemptions | (3 | ) | (1 | ) | (2 | ) | — | (6 | ) | ||||||||||||
Investment income | 7 | 8 | 61 | (15 | ) | 61 | |||||||||||||||
Miscellaneous income, including net income from equity investees | 786 | 4 | — | (784 | ) | 6 | |||||||||||||||
Interest expense — affiliates | (12 | ) | (6 | ) | (4 | ) | 15 | (7 | ) | ||||||||||||
Interest expense — other | (53 | ) | (101 | ) | (52 | ) | 60 | (146 | ) | ||||||||||||
Capitalized interest | — | 4 | 30 | — | 34 | ||||||||||||||||
Total other income (expense) | 725 | (92 | ) | 33 | (724 | ) | (58 | ) | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (BENEFITS) | (863 | ) | 242 | 803 | (770 | ) | (588 | ) | |||||||||||||
INCOME TAXES (BENEFITS) | (619 | ) | 87 | 298 | 6 | (228 | ) | ||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | (244 | ) | 155 | 505 | (776 | ) | (360 | ) | |||||||||||||
Discontinued operations (net of income taxes of $70) | — | 116 | — | — | 116 | ||||||||||||||||
NET INCOME (LOSS) | $ | (244 | ) | $ | 271 | $ | 505 | $ | (776 | ) | $ | (244 | ) | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
NET INCOME (LOSS) | $ | (244 | ) | $ | 271 | $ | 505 | $ | (776 | ) | $ | (244 | ) | ||||||||
OTHER COMPREHENSIVE LOSS: | |||||||||||||||||||||
Pension and OPEB prior service costs | (6 | ) | (5 | ) | — | 5 | (6 | ) | |||||||||||||
Amortized gain on derivative hedges | (10 | ) | — | — | — | (10 | ) | ||||||||||||||
Change in unrealized gain on available-for-sale securities | 21 | — | 21 | (21 | ) | 21 | |||||||||||||||
Other comprehensive income (loss) | 5 | (5 | ) | 21 | (16 | ) | 5 | ||||||||||||||
Income tax benefits on other comprehensive income (loss) | 2 | (2 | ) | 8 | (6 | ) | 2 | ||||||||||||||
Other comprehensive income (loss), net of tax | 3 | (3 | ) | 13 | (10 | ) | 3 | ||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | (241 | ) | $ | 268 | $ | 518 | $ | (786 | ) | $ | (241 | ) | ||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2013 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
STATEMENTS OF INCOME | |||||||||||||||||||||
REVENUES | $ | 6,068 | $ | 2,399 | $ | 1,634 | $ | (3,928 | ) | $ | 6,173 | ||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Fuel | — | 1,056 | 206 | — | 1,262 | ||||||||||||||||
Purchased power from affiliates | 4,148 | — | 266 | (3,928 | ) | 486 | |||||||||||||||
Purchased power from non-affiliates | 2,326 | 7 | — | — | 2,333 | ||||||||||||||||
Other operating expenses | 635 | 275 | 529 | 48 | 1,487 | ||||||||||||||||
Pension and OPEB mark-to-market adjustments | (8 | ) | (37 | ) | (36 | ) | — | (81 | ) | ||||||||||||
Provision for depreciation | 6 | 127 | 178 | (5 | ) | 306 | |||||||||||||||
General taxes | 80 | 34 | 24 | — | 138 | ||||||||||||||||
Total operating expenses | 7,187 | 1,462 | 1,167 | (3,885 | ) | 5,931 | |||||||||||||||
OPERATING INCOME (LOSS) | (1,119 | ) | 937 | 467 | (43 | ) | 242 | ||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||
Loss on debt redemptions | (103 | ) | — | — | — | (103 | ) | ||||||||||||||
Investment income | 5 | 1 | 25 | (15 | ) | 16 | |||||||||||||||
Miscellaneous income, including net income from equity investees | 846 | 24 | — | (842 | ) | 28 | |||||||||||||||
Interest expense — affiliates | (13 | ) | (5 | ) | (6 | ) | 14 | (10 | ) | ||||||||||||
Interest expense — other | (63 | ) | (104 | ) | (54 | ) | 61 | (160 | ) | ||||||||||||
Capitalized interest | 1 | 2 | 36 | — | 39 | ||||||||||||||||
Total other income (expense) | 673 | (82 | ) | 1 | (782 | ) | (190 | ) | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (446 | ) | 855 | 468 | (825 | ) | 52 | ||||||||||||||
INCOME TAXES (BENEFITS) | (506 | ) | 365 | 135 | 12 | 6 | |||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 60 | 490 | 333 | (837 | ) | 46 | |||||||||||||||
Discontinued operations (net of income taxes of $8) | — | 14 | — | — | 14 | ||||||||||||||||
NET INCOME | $ | 60 | $ | 504 | $ | 333 | $ | (837 | ) | $ | 60 | ||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
NET INCOME | $ | 60 | $ | 504 | $ | 333 | $ | (837 | ) | $ | 60 | ||||||||||
OTHER COMPREHENSIVE LOSS: | |||||||||||||||||||||
Pension and OPEB prior service costs | (15 | ) | (13 | ) | — | 13 | (15 | ) | |||||||||||||
Amortized gain on derivative hedges | (6 | ) | — | — | — | (6 | ) | ||||||||||||||
Change in unrealized gain on available-for-sale securities | (8 | ) | — | (8 | ) | 8 | (8 | ) | |||||||||||||
Other comprehensive loss | (29 | ) | (13 | ) | (8 | ) | 21 | (29 | ) | ||||||||||||
Income tax benefits on other comprehensive income | (11 | ) | (5 | ) | (3 | ) | 8 | (11 | ) | ||||||||||||
Other comprehensive loss, net of tax | (18 | ) | (8 | ) | (5 | ) | 13 | (18 | ) | ||||||||||||
COMPREHENSIVE INCOME | $ | 42 | $ | 496 | $ | 328 | $ | (824 | ) | $ | 42 | ||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2012 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
STATEMENTS OF INCOME | |||||||||||||||||||||
REVENUES | $ | 5,804 | $ | 2,100 | $ | 1,895 | $ | (3,905 | ) | $ | 5,894 | ||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Fuel | — | 1,077 | 210 | — | 1,287 | ||||||||||||||||
Purchased power from affiliates | 4,098 | — | 258 | (3,905 | ) | 451 | |||||||||||||||
Purchased power from non-affiliates | 1,881 | 6 | — | — | 1,887 | ||||||||||||||||
Other operating expenses | 434 | 334 | 539 | 49 | 1,356 | ||||||||||||||||
Pension and OPEB mark-to-market adjustments | (2 | ) | 52 | 116 | — | 166 | |||||||||||||||
Provision for depreciation | 4 | 116 | 157 | (5 | ) | 272 | |||||||||||||||
General taxes | 79 | 36 | 21 | — | 136 | ||||||||||||||||
Total operating expenses | 6,494 | 1,621 | 1,301 | (3,861 | ) | 5,555 | |||||||||||||||
OPERATING INCOME (LOSS) | (690 | ) | 479 | 594 | (44 | ) | 339 | ||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||
Investment income | 2 | 15 | 67 | (18 | ) | 66 | |||||||||||||||
Miscellaneous income, including net income from equity investees | 1,284 | 20 | — | (1,269 | ) | 35 | |||||||||||||||
Interest expense — affiliates | (18 | ) | (7 | ) | (4 | ) | 19 | (10 | ) | ||||||||||||
Interest expense — other | (93 | ) | (110 | ) | (50 | ) | 62 | (191 | ) | ||||||||||||
Capitalized interest | — | 4 | 33 | — | 37 | ||||||||||||||||
Total other income (expense) | 1,175 | (78 | ) | 46 | (1,206 | ) | (63 | ) | |||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 485 | 401 | 640 | (1,250 | ) | 276 | |||||||||||||||
INCOME TAXES (BENEFITS) | 298 | (269 | ) | 62 | 12 | 103 | |||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 187 | 670 | 578 | (1,262 | ) | 173 | |||||||||||||||
Discontinued operations (net of income taxes of $8) | — | 14 | — | — | 14 | ||||||||||||||||
NET INCOME | $ | 187 | $ | 684 | $ | 578 | $ | (1,262 | ) | $ | 187 | ||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
NET INCOME | $ | 187 | $ | 684 | $ | 578 | $ | (1,262 | ) | $ | 187 | ||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||||||||||||||||||
Pension and OPEB prior service costs | 6 | 6 | — | (6 | ) | 6 | |||||||||||||||
Amortized loss on derivative hedges | (9 | ) | — | — | — | (9 | ) | ||||||||||||||
Change in unrealized gain on available-for-sale securities | (5 | ) | — | (5 | ) | 5 | (5 | ) | |||||||||||||
Other comprehensive income (loss) | (8 | ) | 6 | (5 | ) | (1 | ) | (8 | ) | ||||||||||||
Income taxes (benefits) on other comprehensive income (loss) | (4 | ) | 1 | (2 | ) | 1 | (4 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | (4 | ) | 5 | (3 | ) | (2 | ) | (4 | ) | ||||||||||||
COMPREHENSIVE INCOME | $ | 183 | $ | 689 | $ | 575 | $ | (1,264 | ) | $ | 183 | ||||||||||
Condensed Consolidating Balance Sheets | FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
As of December 31, 2014 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
Receivables- | |||||||||||||||||||||
Customers | 415 | — | — | — | 415 | ||||||||||||||||
Affiliated companies | 484 | 487 | 674 | (1,120 | ) | 525 | |||||||||||||||
Other | 66 | 21 | 20 | — | 107 | ||||||||||||||||
Notes receivable from affiliated companies | 339 | 838 | 272 | (1,449 | ) | — | |||||||||||||||
Materials and supplies | 67 | 202 | 223 | — | 492 | ||||||||||||||||
Derivatives | 147 | — | — | — | 147 | ||||||||||||||||
Collateral | 229 | — | — | — | 229 | ||||||||||||||||
Prepayments and other | 56 | 41 | — | (2 | ) | 95 | |||||||||||||||
1,803 | 1,591 | 1,189 | (2,571 | ) | 2,012 | ||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT: | |||||||||||||||||||||
In service | 133 | 6,217 | 7,628 | (382 | ) | 13,596 | |||||||||||||||
Less — Accumulated provision for depreciation | 36 | 2,058 | 3,305 | (191 | ) | 5,208 | |||||||||||||||
97 | 4,159 | 4,323 | (191 | ) | 8,388 | ||||||||||||||||
Construction work in progress | 3 | 206 | 801 | — | 1,010 | ||||||||||||||||
100 | 4,365 | 5,124 | (191 | ) | 9,398 | ||||||||||||||||
INVESTMENTS: | |||||||||||||||||||||
Nuclear plant decommissioning trusts | — | — | 1,365 | — | 1,365 | ||||||||||||||||
Investment in affiliated companies | 6,607 | — | — | (6,607 | ) | — | |||||||||||||||
Other | — | 10 | — | — | 10 | ||||||||||||||||
6,607 | 10 | 1,365 | (6,607 | ) | 1,375 | ||||||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||||||||||||||||||
Accumulated deferred income tax benefits | 276 | 76 | — | (352 | ) | — | |||||||||||||||
Customer intangibles | 78 | — | — | — | 78 | ||||||||||||||||
Goodwill | 23 | — | — | — | 23 | ||||||||||||||||
Property taxes | — | 14 | 27 | — | 41 | ||||||||||||||||
Unamortized sale and leaseback costs | — | — | — | 217 | 217 | ||||||||||||||||
Derivatives | 52 | — | — | — | 52 | ||||||||||||||||
Other | 34 | 277 | 7 | (204 | ) | 114 | |||||||||||||||
463 | 367 | 34 | (339 | ) | 525 | ||||||||||||||||
$ | 8,973 | $ | 6,333 | $ | 7,712 | $ | (9,708 | ) | $ | 13,310 | |||||||||||
LIABILITIES AND CAPITALIZATION | |||||||||||||||||||||
CURRENT LIABILITIES: | |||||||||||||||||||||
Currently payable long-term debt | $ | 18 | $ | 164 | $ | 348 | $ | (24 | ) | $ | 506 | ||||||||||
Short-term borrowings- | |||||||||||||||||||||
Affiliated companies | 1,135 | 321 | 28 | (1,449 | ) | 35 | |||||||||||||||
Other | 90 | 9 | — | — | 99 | ||||||||||||||||
Accounts payable- | |||||||||||||||||||||
Affiliated companies | 1,068 | 197 | 219 | (1,068 | ) | 416 | |||||||||||||||
Other | 46 | 202 | — | — | 248 | ||||||||||||||||
Accrued taxes | 2 | 62 | 161 | (123 | ) | 102 | |||||||||||||||
Derivatives | 166 | — | — | — | 166 | ||||||||||||||||
Other | 72 | 56 | 9 | 47 | 184 | ||||||||||||||||
2,597 | 1,011 | 765 | (2,617 | ) | 1,756 | ||||||||||||||||
CAPITALIZATION: | |||||||||||||||||||||
Total equity | 5,585 | 2,561 | 4,014 | (6,575 | ) | 5,585 | |||||||||||||||
Long-term debt and other long-term obligations | 695 | 2,215 | 859 | (1,161 | ) | 2,608 | |||||||||||||||
6,280 | 4,776 | 4,873 | (7,736 | ) | 8,193 | ||||||||||||||||
NONCURRENT LIABILITIES: | |||||||||||||||||||||
Deferred gain on sale and leaseback transaction | — | — | — | 824 | 824 | ||||||||||||||||
Accumulated deferred income taxes | 13 | — | 678 | (180 | ) | 511 | |||||||||||||||
Asset retirement obligations | — | 189 | 652 | — | 841 | ||||||||||||||||
Retirement benefits | 36 | 288 | — | — | 324 | ||||||||||||||||
Derivatives | 14 | — | — | — | 14 | ||||||||||||||||
Other | 33 | 69 | 744 | 1 | 847 | ||||||||||||||||
96 | 546 | 2,074 | 645 | 3,361 | |||||||||||||||||
$ | 8,973 | $ | 6,333 | $ | 7,712 | $ | (9,708 | ) | $ | 13,310 | |||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
As of December 31, 2013 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
Receivables- | |||||||||||||||||||||
Customers | 539 | — | — | — | 539 | ||||||||||||||||
Affiliated companies | 938 | 787 | 227 | (916 | ) | 1,036 | |||||||||||||||
Other | 52 | 12 | 17 | — | 81 | ||||||||||||||||
Notes receivable from affiliated companies | 203 | 23 | 683 | (909 | ) | — | |||||||||||||||
Materials and supplies | 76 | 159 | 213 | — | 448 | ||||||||||||||||
Derivatives | 165 | — | — | — | 165 | ||||||||||||||||
Collateral | 136 | — | — | — | 136 | ||||||||||||||||
Prepayments and other | 52 | 50 | 7 | — | 109 | ||||||||||||||||
2,161 | 1,033 | 1,147 | (1,825 | ) | 2,516 | ||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT: | |||||||||||||||||||||
In service | 104 | 6,105 | 6,645 | (382 | ) | 12,472 | |||||||||||||||
Less — Accumulated provision for depreciation | 28 | 1,953 | 2,962 | (188 | ) | 4,755 | |||||||||||||||
76 | 4,152 | 3,683 | (194 | ) | 7,717 | ||||||||||||||||
Construction work in progress | 23 | 148 | 1,137 | — | 1,308 | ||||||||||||||||
99 | 4,300 | 4,820 | (194 | ) | 9,025 | ||||||||||||||||
INVESTMENTS: | |||||||||||||||||||||
Nuclear plant decommissioning trusts | — | — | 1,276 | — | 1,276 | ||||||||||||||||
Investment in affiliated companies | 5,801 | — | — | (5,801 | ) | — | |||||||||||||||
Other | — | 11 | — | — | 11 | ||||||||||||||||
5,801 | 11 | 1,276 | (5,801 | ) | 1,287 | ||||||||||||||||
ASSETS HELD FOR SALE | — | 122 | — | — | 122 | ||||||||||||||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||||||||||||||||||
Accumulated deferred income tax benefits | — | 131 | — | (131 | ) | — | |||||||||||||||
Customer intangibles | 95 | — | — | — | 95 | ||||||||||||||||
Goodwill | 23 | — | — | — | 23 | ||||||||||||||||
Property taxes | — | 15 | 26 | — | 41 | ||||||||||||||||
Unamortized sale and leaseback costs | — | — | — | 168 | 168 | ||||||||||||||||
Derivatives | 53 | — | — | — | 53 | ||||||||||||||||
Other | 81 | 228 | 18 | (155 | ) | 172 | |||||||||||||||
252 | 374 | 44 | (118 | ) | 552 | ||||||||||||||||
$ | 8,313 | $ | 5,840 | $ | 7,287 | $ | (7,938 | ) | $ | 13,502 | |||||||||||
LIABILITIES AND CAPITALIZATION | |||||||||||||||||||||
CURRENT LIABILITIES: | |||||||||||||||||||||
Currently payable long-term debt | $ | 1 | $ | 367 | $ | 547 | $ | (23 | ) | $ | 892 | ||||||||||
Short-term borrowings- | |||||||||||||||||||||
Affiliated companies | 977 | 212 | 151 | (909 | ) | 431 | |||||||||||||||
Other | — | 4 | — | — | 4 | ||||||||||||||||
Accounts payable- | |||||||||||||||||||||
Affiliated companies | 741 | 400 | 362 | (738 | ) | 765 | |||||||||||||||
Other | 94 | 196 | — | — | 290 | ||||||||||||||||
Accrued taxes | 204 | 23 | 23 | (184 | ) | 66 | |||||||||||||||
Derivatives | 110 | — | — | — | 110 | ||||||||||||||||
Other | 70 | 63 | 18 | 46 | 197 | ||||||||||||||||
2,197 | 1,265 | 1,101 | (1,808 | ) | 2,755 | ||||||||||||||||
CAPITALIZATION: | |||||||||||||||||||||
Total equity | 5,312 | 2,283 | 3,493 | (5,776 | ) | 5,312 | |||||||||||||||
Long-term debt and other long-term obligations | 712 | 1,860 | 742 | (1,184 | ) | 2,130 | |||||||||||||||
6,024 | 4,143 | 4,235 | (6,960 | ) | 7,442 | ||||||||||||||||
NONCURRENT LIABILITIES: | |||||||||||||||||||||
Deferred gain on sale and leaseback transaction | — | — | — | 858 | 858 | ||||||||||||||||
Accumulated deferred income taxes | 32 | — | 736 | (27 | ) | 741 | |||||||||||||||
Asset retirement obligations | — | 187 | 828 | — | 1,015 | ||||||||||||||||
Retirement benefits | 22 | 163 | — | — | 185 | ||||||||||||||||
Derivatives | 14 | — | — | — | 14 | ||||||||||||||||
Other | 24 | 82 | 387 | (1 | ) | 492 | |||||||||||||||
92 | 432 | 1,951 | 830 | 3,305 | |||||||||||||||||
$ | 8,313 | $ | 5,840 | $ | 7,287 | $ | (7,938 | ) | $ | 13,502 | |||||||||||
Condensed Consolidating Statements of Cash Flows | FIRSTENERGY SOLUTIONS CORP. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2014 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES | $ | (600 | ) | $ | 408 | $ | 785 | $ | (22 | ) | $ | 571 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
New Financing- | |||||||||||||||||||||
Long-term debt | — | 431 | 447 | — | 878 | ||||||||||||||||
Short-term borrowings, net | 247 | 114 | — | (361 | ) | — | |||||||||||||||
Equity contribution from parent | 500 | — | — | — | 500 | ||||||||||||||||
Redemptions and Repayments- | |||||||||||||||||||||
Long-term debt | (1 | ) | (269 | ) | (568 | ) | 22 | (816 | ) | ||||||||||||
Short-term borrowings, net | — | — | (123 | ) | (178 | ) | (301 | ) | |||||||||||||
Other | (1 | ) | (12 | ) | (2 | ) | — | (15 | ) | ||||||||||||
Net cash provided from (used for) financing activities | 745 | 264 | (246 | ) | (517 | ) | 246 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Property additions | (8 | ) | (169 | ) | (662 | ) | — | (839 | ) | ||||||||||||
Nuclear fuel | — | — | (233 | ) | — | (233 | ) | ||||||||||||||
Proceeds from asset sales | — | 307 | — | — | 307 | ||||||||||||||||
Sales of investment securities held in trusts | — | — | 1,163 | — | 1,163 | ||||||||||||||||
Purchases of investment securities held in trusts | — | — | (1,219 | ) | — | (1,219 | ) | ||||||||||||||
Loans to affiliated companies, net | (136 | ) | (815 | ) | 412 | 539 | — | ||||||||||||||
Other | (1 | ) | 5 | — | — | 4 | |||||||||||||||
Net cash used for investing activities | (145 | ) | (672 | ) | (539 | ) | 539 | (817 | ) | ||||||||||||
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 Year Ended December 31, 2013 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES | $ | (1,429 | ) | $ | 753 | $ | 776 | $ | (22 | ) | $ | 78 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
New Financing- | |||||||||||||||||||||
Short-term borrowings, net | 864 | 371 | 150 | (954 | ) | 431 | |||||||||||||||
Equity contribution from parent | 1,500 | — | — | — | 1,500 | ||||||||||||||||
Redemptions and Repayments- | |||||||||||||||||||||
Long-term debt | (770 | ) | (364 | ) | (90 | ) | 22 | (1,202 | ) | ||||||||||||
Short-term borrowings, net | (244 | ) | (505 | ) | — | 749 | — | ||||||||||||||
Tender premiums | (67 | ) | — | — | — | (67 | ) | ||||||||||||||
Other | (4 | ) | (5 | ) | — | — | (9 | ) | |||||||||||||
Net cash provided from (used for) financing activities | 1,279 | (503 | ) | 60 | (183 | ) | 653 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Property additions | (12 | ) | (256 | ) | (449 | ) | — | (717 | ) | ||||||||||||
Nuclear fuel | — | — | (250 | ) | — | (250 | ) | ||||||||||||||
Proceeds from asset sales | — | 21 | — | — | 21 | ||||||||||||||||
Sales of investment securities held in trusts | — | — | 940 | — | 940 | ||||||||||||||||
Purchases of investment securities held in trusts | — | — | (1,000 | ) | — | (1,000 | ) | ||||||||||||||
Loans to affiliated companies, net | 163 | (15 | ) | (77 | ) | 205 | 276 | ||||||||||||||
Other | (1 | ) | (1 | ) | — | — | (2 | ) | |||||||||||||
Net cash provided from (used for) investing activities | 150 | (251 | ) | (836 | ) | 205 | (732 | ) | |||||||||||||
Net change in cash and cash equivalents | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 3 | — | — | 3 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
FIRSTENERGY SOLUTIONS CORP. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Year Ended December 31, 2012 | FES | FG | NG | Eliminations | Consolidated | ||||||||||||||||
(In millions) | |||||||||||||||||||||
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES | $ | (1,063 | ) | $ | 639 | $ | 1,266 | $ | (21 | ) | $ | 821 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
New Financing- | |||||||||||||||||||||
Long-term debt | — | 351 | 299 | — | 650 | ||||||||||||||||
Short-term borrowings, net | — | 260 | — | (257 | ) | 3 | |||||||||||||||
Redemptions and Repayments- | |||||||||||||||||||||
Long-term debt | (1 | ) | (288 | ) | (161 | ) | 21 | (429 | ) | ||||||||||||
Short-term borrowings, net | (707 | ) | — | (32 | ) | 739 | — | ||||||||||||||
Common stock dividend payment | — | (2,000 | ) | — | 2,000 | — | |||||||||||||||
Other | (1 | ) | (8 | ) | (3 | ) | — | (12 | ) | ||||||||||||
Net cash provided from (used for) financing activities | (709 | ) | (1,685 | ) | 103 | 2,503 | 212 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Property additions | (14 | ) | (273 | ) | (508 | ) | — | (795 | ) | ||||||||||||
Nuclear fuel | — | — | (286 | ) | — | (286 | ) | ||||||||||||||
Proceeds from asset sales | — | 17 | — | — | 17 | ||||||||||||||||
Sales of investment securities held in trusts | — | — | 1,464 | — | 1,464 | ||||||||||||||||
Purchases of investment securities held in trusts | — | — | (1,502 | ) | — | (1,502 | ) | ||||||||||||||
Loans to affiliated companies, net | (211 | ) | 1,338 | (538 | ) | (482 | ) | 107 | |||||||||||||
Dividends received | 2,000 | — | — | (2,000 | ) | — | |||||||||||||||
Other | (3 | ) | (40 | ) | 1 | — | (42 | ) | |||||||||||||
Net cash provided from (used for) investing activities | 1,772 | 1,042 | (1,369 | ) | (2,482 | ) | (1,037 | ) | |||||||||||||
Net change in cash and cash equivalents | — | (4 | ) | — | — | (4 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 7 | — | — | 7 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 3 | $ | — | $ | — | $ | 3 | |||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Financial Information | Segment Financial Information | ||||||||||||||||||||||||
For the Years Ended December 31, | Regulated Distribution | Regulated Transmission | Competitive Energy Services | Corporate/ Other | Reconciling Adjustments | Consolidated | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
External revenues | $ | 9,102 | $ | 769 | $ | 5,470 | $ | (146 | ) | $ | (146 | ) | $ | 15,049 | |||||||||||
Internal revenues | — | — | 819 | — | (819 | ) | — | ||||||||||||||||||
Total revenues | 9,102 | 769 | 6,289 | (146 | ) | (965 | ) | 15,049 | |||||||||||||||||
Depreciation | 658 | 127 | 387 | 48 | — | 1,220 | |||||||||||||||||||
Amortization of regulatory assets, net | 1 | 11 | — | — | — | 12 | |||||||||||||||||||
Investment income | 56 | — | 45 | 11 | (40 | ) | 72 | ||||||||||||||||||
Interest expense | 589 | 131 | 189 | 168 | (4 | ) | 1,073 | ||||||||||||||||||
Income taxes (benefits) | 227 | 121 | (226 | ) | (175 | ) | 11 | (42 | ) | ||||||||||||||||
Income (loss) from continuing operations | 465 | 223 | (423 | ) | (52 | ) | — | 213 | |||||||||||||||||
Discontinued operations, net of tax | — | — | 86 | — | — | 86 | |||||||||||||||||||
Net income (loss) | 465 | 223 | (337 | ) | (52 | ) | — | 299 | |||||||||||||||||
Total assets | 28,232 | 6,352 | 16,743 | 839 | — | 52,166 | |||||||||||||||||||
Total goodwill | 5,092 | 526 | 800 | — | — | 6,418 | |||||||||||||||||||
Property additions | 972 | 1,329 | 939 | 72 | — | 3,312 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||
External revenues | $ | 8,720 | $ | 731 | $ | 5,728 | $ | (121 | ) | $ | (166 | ) | $ | 14,892 | |||||||||||
Internal revenues | — | — | 770 | — | (770 | ) | — | ||||||||||||||||||
Total revenues | 8,720 | 731 | 6,498 | (121 | ) | (936 | ) | 14,892 | |||||||||||||||||
Depreciation | 606 | 114 | 439 | 43 | — | 1,202 | |||||||||||||||||||
Amortization of regulatory assets, net | 529 | 10 | — | — | — | 539 | |||||||||||||||||||
Investment income | 57 | — | 11 | 9 | (44 | ) | 33 | ||||||||||||||||||
Interest expense | 543 | 93 | 222 | 148 | 10 | 1,016 | |||||||||||||||||||
Income taxes (benefits) | 301 | 129 | (141 | ) | (104 | ) | 10 | 195 | |||||||||||||||||
Income (loss) from continuing operations | 501 | 214 | (237 | ) | (103 | ) | — | 375 | |||||||||||||||||
Discontinued operations, net of tax | — | — | 17 | — | — | 17 | |||||||||||||||||||
Net income (loss) | 501 | 214 | (220 | ) | (103 | ) | — | 392 | |||||||||||||||||
Total assets | 27,683 | 5,247 | 16,782 | 712 | — | 50,424 | |||||||||||||||||||
Total goodwill | 5,092 | 526 | 800 | — | — | 6,418 | |||||||||||||||||||
Property additions | 1,272 | 461 | 827 | 78 | — | 2,638 | |||||||||||||||||||
2012 | |||||||||||||||||||||||||
External revenues | $ | 9,047 | $ | 735 | $ | 5,778 | $ | (119 | ) | $ | (188 | ) | $ | 15,253 | |||||||||||
Internal revenues | — | — | 866 | — | (864 | ) | 2 | ||||||||||||||||||
Total revenues | 9,047 | 735 | 6,644 | (119 | ) | (1,052 | ) | 15,255 | |||||||||||||||||
Depreciation | 558 | 114 | 409 | 38 | — | 1,119 | |||||||||||||||||||
Amortization of regulatory assets, net | (65 | ) | (3 | ) | — | — | — | (68 | ) | ||||||||||||||||
Investment income (loss) | 84 | 1 | 66 | (5 | ) | (69 | ) | 77 | |||||||||||||||||
Interest expense | 540 | 92 | 284 | 85 | — | 1,001 | |||||||||||||||||||
Income taxes (benefits) | 295 | 133 | 83 | (34 | ) | 68 | 545 | ||||||||||||||||||
Income (loss) from continuing operations | 540 | 226 | 199 | (155 | ) | (55 | ) | 755 | |||||||||||||||||
Discontinued operations, net of tax | — | — | 16 | — | — | 16 | |||||||||||||||||||
Net income (loss) | 540 | 226 | 215 | (155 | ) | (55 | ) | 771 | |||||||||||||||||
Total assets | 27,150 | 4,865 | 18,087 | 392 | — | 50,494 | |||||||||||||||||||
Total goodwill | 5,025 | 526 | 896 | — | — | 6,447 | |||||||||||||||||||
Property additions | 1,074 | 507 | 1,014 | 83 | — | 2,678 | |||||||||||||||||||
Summary_of_Quarterly_Financial1
Summary of Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | The following summarizes certain consolidated operating results by quarter for 2014 and 2013. | |||||||||||||||||||||||||||||||
FirstEnergy | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Dec. 31 | Sept. 30 | 30-Jun | Mar. 31 | Dec. 31 | Sept. 30 | 30-Jun | Mar. 31 | |||||||||||||||||||||||||
Revenues | $ | 3,483 | $ | 3,888 | $ | 3,496 | $ | 4,182 | $ | 3,633 | $ | 4,032 | $ | 3,507 | $ | 3,720 | ||||||||||||||||
Other operating expense | 901 | 858 | 1,021 | 1,182 | 948 | 877 | 886 | 882 | ||||||||||||||||||||||||
Pension and OPEB mark-to-market | 835 | — | — | — | (256 | ) | — | — | — | |||||||||||||||||||||||
Provision for depreciation | 316 | 308 | 302 | 294 | 293 | 316 | 300 | 293 | ||||||||||||||||||||||||
Impairment of long-lived assets | — | — | — | — | 322 | — | 473 | — | ||||||||||||||||||||||||
Operating Income (Loss) | (337 | ) | 716 | 292 | 391 | 387 | 508 | 42 | 645 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes (benefits) | (574 | ) | 485 | 90 | 170 | 208 | 286 | (230 | ) | 306 | ||||||||||||||||||||||
Income taxes (benefits) (1) | (268 | ) | 152 | 26 | 48 | 66 | 77 | (62 | ) | 114 | ||||||||||||||||||||||
Income (loss) from continuing operations | (306 | ) | 333 | 64 | 122 | 142 | 209 | (168 | ) | 192 | ||||||||||||||||||||||
Discontinued operations (net of income taxes) | — | — | — | 86 | — | 9 | 4 | 4 | ||||||||||||||||||||||||
Net Income (Loss) | (306 | ) | 333 | 64 | 208 | 142 | 218 | (164 | ) | 196 | ||||||||||||||||||||||
Earnings (loss) per share of common stock-(2) | ||||||||||||||||||||||||||||||||
Basic - Continuing Operations | (0.73 | ) | 0.79 | 0.16 | 0.29 | 0.34 | 0.5 | (0.40 | ) | 0.46 | ||||||||||||||||||||||
Basic - Discontinued Operations (Note 19) | — | — | — | 0.21 | — | 0.02 | 0.01 | 0.01 | ||||||||||||||||||||||||
Basic - Earnings Available to FirstEnergy Corp. | (0.73 | ) | 0.79 | 0.16 | 0.5 | 0.34 | 0.52 | (0.39 | ) | 0.47 | ||||||||||||||||||||||
Diluted - Continuing Operations | (0.73 | ) | 0.79 | 0.15 | 0.29 | 0.34 | 0.5 | (0.40 | ) | 0.46 | ||||||||||||||||||||||
Diluted - Discontinued Operations (Note 19) | — | — | — | 0.2 | — | 0.02 | 0.01 | 0.01 | ||||||||||||||||||||||||
Diluted - Earnings Available to FirstEnergy Corp. | (0.73 | ) | 0.79 | 0.15 | 0.49 | 0.34 | 0.52 | (0.39 | ) | 0.47 | ||||||||||||||||||||||
(1) - During the fourth quarter of 2014, income tax benefits of $16 million were recorded that related to prior periods. The out-of-period adjustment primarily related to the correction of amounts included in the Company’s tax basis balance sheet. Management has determined that this adjustment is not material to the current or any prior period. | ||||||||||||||||||||||||||||||||
(2) - Total quarterly earnings per share information may not equal annual earnings per share due to the issuance of shares throughout the year. See FirstEnergy's Consolidated Statements of Stockholders' Equity and Note 4. Stock-Based Compensation for additional information. | ||||||||||||||||||||||||||||||||
FES | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Dec. 31 | Sept. 30 | 30-Jun | Mar. 31 | Dec. 31 | Sept. 30 | 30-Jun | Mar. 31 | |||||||||||||||||||||||||
Revenues | $ | 1,342 | $ | 1,521 | $ | 1,452 | $ | 1,829 | $ | 1,518 | $ | 1,679 | $ | 1,452 | $ | 1,524 | ||||||||||||||||
Other operating expense | 359 | 356 | 468 | 452 | 382 | 339 | 387 | 379 | ||||||||||||||||||||||||
Pension and OPEB mark-to-market | 297 | — | — | — | (81 | ) | — | — | — | |||||||||||||||||||||||
Provision for depreciation | 83 | 83 | 79 | 74 | 75 | 80 | 76 | 75 | ||||||||||||||||||||||||
Operating Income (Loss) | (321 | ) | 90 | (151 | ) | (148 | ) | 121 | 65 | (39 | ) | 95 | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes (benefits) | (347 | ) | 72 | (154 | ) | (159 | ) | 114 | 56 | (117 | ) | (1 | ) | |||||||||||||||||||
Income taxes (benefits) | (133 | ) | 28 | (67 | ) | (56 | ) | 25 | 23 | (42 | ) | — | ||||||||||||||||||||
Income (loss) from continuing operations | (214 | ) | 44 | (87 | ) | (103 | ) | 89 | 33 | (75 | ) | (1 | ) | |||||||||||||||||||
Discontinued operations (net of income taxes) | — | — | — | 116 | — | 7 | 4 | 3 | ||||||||||||||||||||||||
Net Income (Loss) | (214 | ) | 44 | (87 | ) | 13 | 89 | 40 | (71 | ) | 2 | |||||||||||||||||||||
Organization_Basis_of_Presenta3
Organization, Basis of Presentation and Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | $1,411 | $1,854 |
Increase (Decrease) | -443 | |
Regulatory transition costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | 240 | 266 |
Increase (Decrease) | -26 | |
Customer receivables for future income taxes | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | 370 | 518 |
Increase (Decrease) | -148 | |
Nuclear decommissioning and spent fuel disposal costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | -305 | -198 |
Increase (Decrease) | -107 | |
Asset removal costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | -254 | -362 |
Increase (Decrease) | 108 | |
Deferred transmission costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | 90 | 112 |
Increase (Decrease) | -22 | |
Deferred generation costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | 281 | 346 |
Increase (Decrease) | -65 | |
Deferred distribution costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | 182 | 194 |
Increase (Decrease) | -12 | |
Contract valuations | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | 153 | 260 |
Increase (Decrease) | -107 | |
Storm-related costs | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | 465 | 455 |
Increase (Decrease) | 10 | |
Other | ||
Regulatory assets on the Balance Sheets | ||
Regulatory Assets | 189 | 263 |
Increase (Decrease) | ($74) |
Organization_Basis_of_Presenta4
Organization, Basis of Presentation and Significant Accounting Policies (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables from customers | ||
Customers | $1,554 | $1,720 |
FES | ||
Receivables from customers | ||
Customers | 415 | 539 |
Billed | ||
Receivables from customers | ||
Customers | 914 | 239 |
Billed | FES | ||
Receivables from customers | ||
Customers | 1,010 | 301 |
Unbilled | ||
Receivables from customers | ||
Customers | 640 | 176 |
Unbilled | FES | ||
Receivables from customers | ||
Customers | $710 | $238 |
Organization_Basis_of_Presenta5
Organization, Basis of Presentation and Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Basic and Diluted Earnings per Share of Common Stock | |||||||||||
Income (loss) from continuing operations | ($306) | $333 | $64 | $122 | $142 | $209 | ($168) | $192 | $213 | $375 | $755 |
Less: Income attributable to noncontrolling interest | 0 | 0 | 1 | ||||||||
Income from continuing operations available to common shareholders | 213 | 375 | 754 | ||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | 86 | 0 | 9 | 4 | 4 | 86 | 17 | 16 |
EARNINGS AVAILABLE TO FIRSTENERGY CORP. | $299 | $392 | $770 | ||||||||
Weighted average number of basic shares outstanding | 420 | 418 | 418 | ||||||||
Assumed exercise of dilutive stock options and awards (in shares) | 1 | 1 | 1 | ||||||||
Weighted average number of diluted shares outstanding | 421 | 419 | 419 | ||||||||
Earnings per share: | |||||||||||
Basic - Continuing Operations, in dollars per share | ($0.73) | $0.79 | $0.16 | $0.29 | $0.34 | $0.50 | ($0.40) | $0.46 | $0.51 | $0.90 | $1.81 |
Basic - Discontinued Operations, in dollars per share | $0 | $0 | $0 | $0.21 | $0 | $0.02 | $0.01 | $0.01 | $0.20 | $0.04 | $0.04 |
Basic - Earnings Available to FirstEnergy Corp., in dollars per share | ($0.73) | $0.79 | $0.16 | $0.50 | $0.34 | $0.52 | ($0.39) | $0.47 | $0.71 | $0.94 | $1.85 |
Diluted earnings per share: | |||||||||||
Diluted - Continuing Operations, in dollars per share | ($0.73) | $0.79 | $0.15 | $0.29 | $0.34 | $0.50 | ($0.40) | $0.46 | $0.51 | $0.90 | $1.80 |
Diluted - Discontinued Operations, in dollars per share | $0 | $0 | $0 | $0.20 | $0 | $0.02 | $0.01 | $0.01 | $0.20 | $0.04 | $0.04 |
Diluted - Earnings Available to FirstEnergy Corp., in dollars per share | ($0.73) | $0.79 | $0.15 | $0.49 | $0.34 | $0.52 | ($0.39) | $0.47 | $0.71 | $0.94 | $1.84 |
Shares excluded from the calculation of diluted shares outstanding, in shares | 2 | 2 | 0 |
Organization_Basis_of_Presenta6
Organization, Basis of Presentation and Significant Accounting Policies (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment | ||
In service | $47,484 | $44,228 |
Less - Accumulated depreciation | -14,150 | -13,280 |
Property, plant and equipment in service net of accumulated provision for depreciation | 33,334 | 30,948 |
Regulated Distribution | ||
Property, Plant and Equipment | ||
In service | 23,973 | 23,098 |
Less - Accumulated depreciation | -6,759 | -6,514 |
Property, plant and equipment in service net of accumulated provision for depreciation | 17,214 | 16,584 |
Regulated Transmission | ||
Property, Plant and Equipment | ||
In service | 6,634 | 5,564 |
Less - Accumulated depreciation | -1,595 | -1,511 |
Property, plant and equipment in service net of accumulated provision for depreciation | 5,039 | 4,053 |
Competitive Energy Services | ||
Property, Plant and Equipment | ||
In service | 16,442 | 15,206 |
Less - Accumulated depreciation | -5,598 | -5,088 |
Property, plant and equipment in service net of accumulated provision for depreciation | 10,844 | 10,118 |
Other/Corporate | ||
Property, Plant and Equipment | ||
In service | 435 | 360 |
Less - Accumulated depreciation | -198 | -167 |
Property, plant and equipment in service net of accumulated provision for depreciation | $237 | $193 |
Organization_Basis_of_Presenta7
Organization, Basis of Presentation and Significant Accounting Policies (Details 4) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Annual Composite Depreciation Rate | |||
Annual Composite Depreciation Rate | 2.50% | 2.60% | 2.50% |
FES | |||
Annual Composite Depreciation Rate | |||
Annual Composite Depreciation Rate | 3.10% | 3.10% | 3.10% |
Organization_Basis_of_Presenta8
Organization, Basis of Presentation and Significant Accounting Policies (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Summary of changes in goodwill | |||
Goodwill, Ending Balance | $6,418 | $6,418 | $6,447 |
Regulated Distribution | |||
Summary of changes in goodwill | |||
Goodwill, Ending Balance | 5,092 | 5,092 | 5,025 |
Competitive Energy Services | |||
Summary of changes in goodwill | |||
Goodwill, Ending Balance | 800 | 800 | 896 |
Scenario, Previously Reported [Member] | |||
Summary of changes in goodwill | |||
Goodwill, Ending Balance | 6,418 | ||
Scenario, Previously Reported [Member] | Regulated Distribution | |||
Summary of changes in goodwill | |||
Goodwill, Ending Balance | 5,092 | ||
Scenario, Previously Reported [Member] | Regulated Transmission | |||
Summary of changes in goodwill | |||
Goodwill, Ending Balance | 526 | ||
Scenario, Previously Reported [Member] | Competitive Energy Services | |||
Summary of changes in goodwill | |||
Goodwill, Ending Balance | $800 |
Organization_Basis_of_Presenta9
Organization, Basis of Presentation and Significant Accounting Policies (Details Textuals) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Jul. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | |
Regulatory Assets [Line Items] | ||||||||
Capitalized financing costs | $49,000,000 | $28,000,000 | $18,000,000 | |||||
Interest costs capitalized | 69,000,000 | 75,000,000 | 72,000,000 | |||||
Regulatory assets that do not earn a current return | 488,000,000 | 477,000,000 | 477,000,000 | 488,000,000 | ||||
Net regulatory liabilities | 243,000,000 | 440,000,000 | 440,000,000 | 243,000,000 | ||||
Cost of nuclear fuel | 2,000,000,000 | 2,000,000,000 | ||||||
Net plant in service | 33,334,000,000 | 30,948,000,000 | 30,948,000,000 | 33,334,000,000 | ||||
Impairments of long-lived assets | 473,000,000 | 0 | 795,000,000 | 0 | ||||
Goodwill | 6,418,000,000 | 6,418,000,000 | 6,447,000,000 | 6,418,000,000 | 6,418,000,000 | |||
Excess of fair value over carrying value (percent) | 10.00% | |||||||
Discount rate | 8.50% | |||||||
Terminal multiple | 7 | |||||||
Other than temporary impairments | 37,000,000 | 90,000,000 | 16,000,000 | |||||
Bath County, Virginia | ||||||||
Regulatory Assets [Line Items] | ||||||||
Plant generation capacity | 3,003 | 3,003 | ||||||
Storm-related costs | ||||||||
Regulatory Assets [Line Items] | ||||||||
Regulatory assets that do not earn a current return | 360,000,000 | 360,000,000 | ||||||
Inventories | ||||||||
Regulatory Assets [Line Items] | ||||||||
Impairments of long-lived assets | 13,000,000 | |||||||
Regulated Distribution | ||||||||
Regulatory Assets [Line Items] | ||||||||
Property, Plant and Equipment, Net | 2,000,000,000 | 2,000,000,000 | ||||||
Plant generation capacity | 3,790 | |||||||
Net plant in service | 17,214,000,000 | 16,584,000,000 | 16,584,000,000 | 17,214,000,000 | ||||
Goodwill | 5,092,000,000 | 5,092,000,000 | 5,025,000,000 | 5,092,000,000 | 5,092,000,000 | |||
Competitive Energy Services | ||||||||
Regulatory Assets [Line Items] | ||||||||
Plant generation capacity | 14,068 | 14,068 | ||||||
Net plant in service | 10,844,000,000 | 10,118,000,000 | 10,118,000,000 | 10,844,000,000 | ||||
Goodwill | 800,000,000 | 800,000,000 | 896,000,000 | 800,000,000 | 800,000,000 | |||
AE Supply | ||||||||
Regulatory Assets [Line Items] | ||||||||
Percent of ownership interest acquired | 8.00% | |||||||
Value of interest acquired | 73,000,000 | |||||||
Cash consideration received in asset swap transaction | 1,100,000,000 | |||||||
Assumption of pollution control note | 73,500,000 | |||||||
MP | ||||||||
Regulatory Assets [Line Items] | ||||||||
Percent of ownership interest acquired | 80.00% | |||||||
Value of interest acquired | 1,200,000,000 | |||||||
Impairments of long-lived assets | 322,000,000 | |||||||
Regulatory liability | 23,000,000 | |||||||
AGC | Bath County, Virginia | ||||||||
Regulatory Assets [Line Items] | ||||||||
Pumped storage hydroelectric station, Ownership percentage | 40.00% | 40.00% | ||||||
Plant generation capacity | 1,200 | 1,200 | ||||||
Net plant in service | 686,000,000 | 686,000,000 | ||||||
Virginia Electric and Power Company | Bath County, Virginia | ||||||||
Regulatory Assets [Line Items] | ||||||||
Pumped storage hydroelectric station, Ownership percentage | 60.00% | 60.00% | ||||||
FES | ||||||||
Regulatory Assets [Line Items] | ||||||||
Net plant in service | 8,388,000,000 | 7,717,000,000 | 7,717,000,000 | 8,388,000,000 | ||||
Goodwill | 23,000,000 | 23,000,000 | 23,000,000 | 23,000,000 | ||||
Other than temporary impairments | $33,000,000 | $79,000,000 | $14,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Beginning Balance | $284 | $385 | $426 |
Other comprehensive income before reclassifications (1) | 105 | 52 | 120 |
Amounts reclassified from AOCI | -143 | -153 | -161 |
Other comprehensive loss, net of tax | -38 | -101 | -41 |
AOCI Ending Balance | 246 | 284 | 385 |
Tax on unrealized gains | 10 | -4 | -2 |
FES | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Beginning Balance | 54 | 72 | 76 |
Other comprehensive income before reclassifications (1) | 58 | 29 | 54 |
Amounts reclassified from AOCI | -55 | -47 | -58 |
Other comprehensive loss, net of tax | 3 | -18 | -4 |
AOCI Ending Balance | 57 | 54 | 72 |
Tax on unrealized gains | 8 | -3 | -2 |
Gains & Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Beginning Balance | -36 | -38 | -39 |
Other comprehensive income before reclassifications (1) | 0 | 0 | 0 |
Amounts reclassified from AOCI | -1 | 2 | 1 |
Other comprehensive loss, net of tax | -1 | 2 | 1 |
AOCI Ending Balance | -37 | -36 | -38 |
Gains & Losses on Cash Flow Hedges | FES | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Beginning Balance | -1 | 3 | 8 |
Other comprehensive income before reclassifications (1) | 0 | 0 | 0 |
Amounts reclassified from AOCI | -6 | -4 | -5 |
Other comprehensive loss, net of tax | -6 | -4 | -5 |
AOCI Ending Balance | -7 | -1 | 3 |
Tax on unrealized gains | 1 | ||
Unrealized Gains on AFS Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Beginning Balance | 9 | 15 | 19 |
Other comprehensive income before reclassifications (1) | 55 | 29 | 41 |
Amounts reclassified from AOCI | -39 | -35 | -45 |
Other comprehensive loss, net of tax | 16 | -6 | -4 |
AOCI Ending Balance | 25 | 9 | 15 |
Tax on unrealized gains | 39 | 17 | 25 |
Unrealized Gains on AFS Securities | FES | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Beginning Balance | 8 | 13 | 16 |
Other comprehensive income before reclassifications (1) | 50 | 26 | 38 |
Amounts reclassified from AOCI | -37 | -31 | -41 |
Other comprehensive loss, net of tax | 13 | -5 | -3 |
AOCI Ending Balance | 21 | 8 | 13 |
Tax on unrealized gains | 30 | 15 | 22 |
Defined Benefit Pension & OPEB Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Beginning Balance | 311 | 408 | 446 |
Other comprehensive income before reclassifications (1) | 50 | 23 | 79 |
Amounts reclassified from AOCI | -103 | -120 | -117 |
Other comprehensive loss, net of tax | -53 | -97 | -38 |
AOCI Ending Balance | 258 | 311 | 408 |
Tax on unrealized gains | 34 | 12 | -3 |
Defined Benefit Pension & OPEB Plans | FES | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Beginning Balance | 47 | 56 | 52 |
Other comprehensive income before reclassifications (1) | 8 | 3 | 16 |
Amounts reclassified from AOCI | -12 | -12 | -12 |
Other comprehensive loss, net of tax | -4 | -9 | 4 |
AOCI Ending Balance | 43 | 47 | 56 |
Tax on unrealized gains | $5 | $2 | $9 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other operating expenses | $901 | $858 | $1,021 | $1,182 | $948 | $877 | $886 | $882 | $3,962 | $3,593 | $3,760 |
Interest expense - other | 1,073 | 1,016 | 1,001 | ||||||||
Investment income | -72 | -33 | -77 | ||||||||
Total before taxes | -171 | -570 | -1,300 | ||||||||
Income taxes (benefits) | -268 | 152 | 26 | 48 | 66 | 77 | -62 | 114 | -42 | 195 | 545 |
Net of tax | 306 | -333 | -64 | -208 | -142 | -218 | 164 | -196 | -299 | -392 | -771 |
FES | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other operating expenses | 359 | 356 | 468 | 452 | 382 | 339 | 387 | 379 | 1,635 | 1,487 | 1,356 |
Investment income | -61 | -16 | -66 | ||||||||
Total before taxes | 588 | -52 | -276 | ||||||||
Income taxes (benefits) | -133 | 28 | -67 | -56 | 25 | 23 | -42 | 0 | -228 | 6 | 103 |
Net of tax | 214 | -44 | 87 | -13 | -89 | -40 | 71 | -2 | 244 | -60 | -187 |
Reclassifications from AOCI | Gains & losses on cash flow hedges | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before taxes | -2 | 3 | 1 | ||||||||
Income taxes (benefits) | 1 | -1 | 0 | ||||||||
Net of tax | -1 | 2 | 1 | ||||||||
Reclassifications from AOCI | Gains & losses on cash flow hedges | FES | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before taxes | -10 | -6 | -9 | ||||||||
Income taxes (benefits) | 4 | 2 | 4 | ||||||||
Net of tax | -6 | -4 | -5 | ||||||||
Reclassifications from AOCI | Gains & losses on cash flow hedges | Commodity contracts | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other operating expenses | -10 | -8 | -9 | ||||||||
Reclassifications from AOCI | Gains & losses on cash flow hedges | Commodity contracts | FES | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other operating expenses | -10 | -8 | -9 | ||||||||
Reclassifications from AOCI | Gains & losses on cash flow hedges | Long-term debt | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense - other | 8 | 11 | 10 | ||||||||
Reclassifications from AOCI | Gains & losses on cash flow hedges | Long-term debt | FES | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense - other | 0 | 2 | 0 | ||||||||
Reclassifications from AOCI | Unrealized gains on AFS securities | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Investment income | -63 | -56 | -72 | ||||||||
Income taxes (benefits) | 24 | 21 | 27 | ||||||||
Net of tax | -39 | -35 | -45 | ||||||||
Reclassifications from AOCI | Unrealized gains on AFS securities | FES | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Investment income | -59 | -49 | -65 | ||||||||
Income taxes (benefits) | 22 | 18 | 24 | ||||||||
Net of tax | -37 | -31 | -41 | ||||||||
Reclassifications from AOCI | Defined benefit pension and OPEB plans | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Prior-service costs | -168 | -195 | -191 | ||||||||
Income taxes (benefits) | 65 | 75 | 74 | ||||||||
Net of tax | -103 | -120 | -117 | ||||||||
Reclassifications from AOCI | Defined benefit pension and OPEB plans | FES | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Prior-service costs | -19 | -20 | -20 | ||||||||
Income taxes (benefits) | 7 | 8 | 8 | ||||||||
Net of tax | ($12) | ($12) | ($12) |
Pension_and_Other_Postemployme2
Pension and Other Postemployment Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amounts Recognized on the Balance Sheet: | |||
Noncurrent liabilities | ($3,932) | ($2,689) | |
Pensions | |||
Change in benefit obligation: | |||
Benefit obligation as of January 1 | 8,263 | 8,975 | |
Service cost | 167 | 197 | 161 |
Interest cost | 402 | 372 | 389 |
Plan participants' contributions | 0 | 0 | |
Plan amendments | 5 | 2 | |
Medicare retiree drug subsidy | 0 | 0 | |
Actuarial (gain) loss | 1,123 | -846 | |
Benefits paid | -711 | -437 | |
Benefit obligation as of December 31 | 9,249 | 8,263 | 8,975 |
Change in fair value of plan assets: | |||
Fair value of plan assets as of January 1 | 6,171 | 6,671 | |
Actual return on plan assets | 349 | -77 | |
Company contributions | 15 | 14 | |
Plan participants' contributions | 0 | 0 | |
Benefits paid | -711 | -437 | |
Fair value of plan assets as of December 31 | 5,824 | 6,171 | 6,671 |
Funded Status: | |||
Funded Status | -3,425 | -2,092 | |
Accumulated benefit obligation | 8,744 | 7,800 | |
Amounts Recognized on the Balance Sheet: | |||
Current liabilities | -17 | -15 | |
Noncurrent liabilities | -3,408 | -2,077 | |
Net liability as of December 31 | -3,425 | -2,092 | |
Amounts Recognized in AOCI: | |||
Prior service cost (credit) | 45 | 48 | |
Assumptions Used to Determine Benefit Obligations | |||
Discount rate | 4.25% | 5.00% | |
Rate of compensation increase | 4.20% | 4.20% | |
Allocation of Plan Assets | |||
Asset Allocation | 100.00% | 100.00% | |
Pensions | Equity securities | |||
Allocation of Plan Assets | |||
Asset Allocation | 36.00% | 18.00% | |
Pensions | Bonds | |||
Allocation of Plan Assets | |||
Asset Allocation | 33.00% | 40.00% | |
Pensions | Absolute return strategies | |||
Allocation of Plan Assets | |||
Asset Allocation | 14.00% | 23.00% | |
Pensions | Real estate | |||
Allocation of Plan Assets | |||
Asset Allocation | 7.00% | 6.00% | |
Pensions | Derivatives | |||
Allocation of Plan Assets | |||
Asset Allocation | 1.00% | 0.00% | |
Pensions | Cash | |||
Allocation of Plan Assets | |||
Asset Allocation | 9.00% | 13.00% | |
Pensions | Qualified Plan | |||
Funded Status: | |||
Funded Status | -3,064 | -1,782 | |
Pensions | Non-qualified Plans | |||
Funded Status: | |||
Funded Status | -361 | -310 | |
OPEB | |||
Change in benefit obligation: | |||
Benefit obligation as of January 1 | 879 | 1,076 | |
Service cost | 9 | 13 | 12 |
Interest cost | 39 | 37 | 47 |
Plan participants' contributions | 16 | 15 | |
Plan amendments | -97 | -37 | |
Medicare retiree drug subsidy | 0 | 5 | |
Actuarial (gain) loss | 13 | -107 | |
Benefits paid | -102 | -123 | |
Benefit obligation as of December 31 | 757 | 879 | 1,076 |
Change in fair value of plan assets: | |||
Fair value of plan assets as of January 1 | 495 | 508 | |
Actual return on plan assets | 38 | 56 | |
Company contributions | 17 | 39 | |
Plan participants' contributions | 16 | 15 | |
Benefits paid | -102 | -123 | |
Fair value of plan assets as of December 31 | 464 | 495 | 508 |
Funded Status: | |||
Funded Status | -293 | -384 | |
Accumulated benefit obligation | 0 | 0 | |
Amounts Recognized on the Balance Sheet: | |||
Current liabilities | 0 | 0 | |
Noncurrent liabilities | -293 | -384 | |
Net liability as of December 31 | -293 | -384 | |
Amounts Recognized in AOCI: | |||
Prior service cost (credit) | ($479) | ($558) | |
Assumptions Used to Determine Benefit Obligations | |||
Discount rate | 4.00% | 4.75% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 5.00% | |
Allocation of Plan Assets | |||
Asset Allocation | 100.00% | 100.00% | |
OPEB | Equity securities | |||
Allocation of Plan Assets | |||
Asset Allocation | 49.00% | 47.00% | |
OPEB | Bonds | |||
Allocation of Plan Assets | |||
Asset Allocation | 40.00% | 40.00% | |
OPEB | Absolute return strategies | |||
Allocation of Plan Assets | |||
Asset Allocation | 1.00% | 3.00% | |
OPEB | Real estate | |||
Allocation of Plan Assets | |||
Asset Allocation | 1.00% | 1.00% | |
OPEB | Derivatives | |||
Allocation of Plan Assets | |||
Asset Allocation | 0.00% | 0.00% | |
OPEB | Cash | |||
Allocation of Plan Assets | |||
Asset Allocation | 9.00% | 9.00% | |
OPEB | Pre Medicare | |||
Assumptions Used to Determine Benefit Obligations | |||
Health care cost trend rate assumed | 7.00% | 7.25% | |
Year that the rate reaches the ultimate trend rate | 2026 | 2020 | |
OPEB | Post Medicare | |||
Assumptions Used to Determine Benefit Obligations | |||
Health care cost trend rate assumed | 7.50% | 7.75% | |
Year that the rate reaches the ultimate trend rate | 2026 | 2020 |
Pension_and_Other_Postemployme3
Pension and Other Postemployment Benefits (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $167 | $197 | $161 |
Interest cost | 402 | 372 | 389 |
Expected return on plan assets | -462 | -501 | -486 |
Amortization of prior service cost (credit) | 8 | 12 | 12 |
Pension & OPEB mark-to-market adjustment | 1,235 | -267 | 735 |
Net periodic cost (credit) | 1,350 | -187 | 811 |
OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 9 | 13 | 12 |
Interest cost | 39 | 37 | 47 |
Expected return on plan assets | -34 | -34 | -37 |
Amortization of prior service cost (credit) | -176 | -207 | -203 |
Pension & OPEB mark-to-market adjustment | 8 | -129 | 140 |
Net periodic cost (credit) | ($154) | ($320) | ($41) |
Pension_and_Other_Postemployme4
Pension and Other Postemployment Benefits (Details 2) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted-average discount rate | 5.00% | 4.25% | 5.00% |
Expected long-term return on plan assets | 7.75% | 7.75% | 7.75% |
Rate of compensation increase | 4.20% | 4.70% | 5.20% |
OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted-average discount rate | 4.75% | 4.00% | 4.75% |
Expected long-term return on plan assets | 7.75% | 7.75% | 7.75% |
Pension_and_Other_Postemployme5
Pension and Other Postemployment Benefits (Details 3) (Pensions, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | $5,732 | $6,258 | |
Asset Allocation | 100.00% | 100.00% | |
Cash and short-term securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 517 | 782 | |
Asset Allocation | 9.00% | 13.00% | |
Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 1,274 | 704 | |
Asset Allocation | 22.00% | 11.00% | |
International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 769 | 422 | |
Asset Allocation | 14.00% | 7.00% | |
Government bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 159 | 314 | |
Asset Allocation | 3.00% | 5.00% | |
Corporate bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 1,386 | 2,128 | |
Asset Allocation | 24.00% | 34.00% | |
High yield debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 300 | ||
Asset Allocation | 5.00% | ||
Mortgaged-backed securities (non-government) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 37 | 87 | |
Asset Allocation | 1.00% | 1.00% | |
Hedge funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 809 | 1,395 | |
Asset Allocation | 14.00% | 23.00% | |
Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 35 | 14 | |
Asset Allocation | 1.00% | 0.00% | |
Private equity funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 25 | 27 | |
Asset Allocation | 0.00% | 0.00% | |
Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 421 | 385 | |
Asset Allocation | 7.00% | 6.00% | |
Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 1,621 | 1,005 | |
Level 1 | Cash and short-term securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 1,266 | 701 | |
Level 1 | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 355 | 304 | |
Level 1 | Government bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Corporate bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | High yield debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | ||
Level 1 | Mortgaged-backed securities (non-government) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Hedge funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Private equity funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 3,665 | 4,841 | |
Level 2 | Cash and short-term securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 517 | 782 | |
Level 2 | Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 8 | 3 | |
Level 2 | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 414 | 118 | |
Level 2 | Government bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 159 | 314 | |
Level 2 | Corporate bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 1,386 | 2,128 | |
Level 2 | High yield debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 300 | ||
Level 2 | Mortgaged-backed securities (non-government) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 37 | 87 | |
Level 2 | Hedge funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 809 | 1,395 | |
Level 2 | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 35 | 14 | |
Level 2 | Private equity funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 2 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 446 | 412 | |
Level 3 | Cash and short-term securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Government bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Corporate bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | High yield debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | ||
Level 3 | Mortgaged-backed securities (non-government) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Hedge funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Private equity funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 25 | 27 | 33 |
Level 3 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | $421 | $385 | $357 |
Pension_and_Other_Postemployme6
Pension and Other Postemployment Benefits (Details 4) (Pensions, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Actual return on plan assets: | ||
Ending balance | $5,732 | $6,258 |
Private equity funds | ||
Actual return on plan assets: | ||
Ending balance | 25 | 27 |
Real estate funds | ||
Actual return on plan assets: | ||
Ending balance | 421 | 385 |
Level 3 | ||
Actual return on plan assets: | ||
Ending balance | 446 | 412 |
Level 3 | Private equity funds | ||
Reconciliation of changes in the fair value of pension investments | ||
Beginning balance | 27 | 33 |
Actual return on plan assets: | ||
Unrealized gains (losses) | -2 | 1 |
Realized gains (losses) | 1 | 5 |
Transfers in (out) | -1 | -12 |
Ending balance | 25 | 27 |
Level 3 | Real estate funds | ||
Reconciliation of changes in the fair value of pension investments | ||
Beginning balance | 385 | 357 |
Actual return on plan assets: | ||
Unrealized gains (losses) | 17 | 17 |
Realized gains (losses) | 14 | 13 |
Transfers in (out) | 5 | -2 |
Ending balance | $421 | $385 |
Pension_and_Other_Postemployme7
Pension and Other Postemployment Benefits (Details 5) (OPEB, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | $473 | $504 | |
Asset Allocation | 100.00% | 100.00% | |
Cash and short-term securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 41 | 47 | |
Asset Allocation | 9.00% | 9.00% | |
Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 230 | 227 | |
Asset Allocation | 48.00% | 45.00% | |
International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 6 | 6 | |
Asset Allocation | 1.00% | 1.00% | |
Mutual funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 5 | ||
Asset Allocation | 1.00% | ||
U.S. treasuries | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 41 | 44 | |
Asset Allocation | 9.00% | 9.00% | |
Government bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 110 | 91 | |
Asset Allocation | 23.00% | 18.00% | |
Corporate bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 32 | 59 | |
Asset Allocation | 7.00% | 12.00% | |
High yield debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 2 | ||
Asset Allocation | 0.00% | ||
Mortgaged-backed securities (non-government) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 3 | 3 | |
Asset Allocation | 1.00% | 1.00% | |
Hedge funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 5 | 17 | |
Asset Allocation | 1.00% | 3.00% | |
Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 3 | 5 | |
Asset Allocation | 1.00% | 1.00% | |
Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 233 | 236 | |
Level 1 | Cash and short-term securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 230 | 227 | |
Level 1 | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 3 | 4 | |
Level 1 | Mutual funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 5 | ||
Level 1 | U.S. treasuries | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Government bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Corporate bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | High yield debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | ||
Level 1 | Mortgaged-backed securities (non-government) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Hedge funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 1 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 237 | 263 | |
Level 2 | Cash and short-term securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 41 | 47 | |
Level 2 | Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 2 | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 3 | 2 | |
Level 2 | Mutual funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | ||
Level 2 | U.S. treasuries | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 41 | 44 | |
Level 2 | Government bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 110 | 91 | |
Level 2 | Corporate bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 32 | 59 | |
Level 2 | High yield debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 2 | ||
Level 2 | Mortgaged-backed securities (non-government) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 3 | 3 | |
Level 2 | Hedge funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 5 | 17 | |
Level 2 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 3 | 5 | |
Level 3 | Cash and short-term securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Mutual funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | ||
Level 3 | U.S. treasuries | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Government bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Corporate bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | High yield debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | ||
Level 3 | Mortgaged-backed securities (non-government) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Hedge funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | 0 | 0 | |
Level 3 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension investments measured at fair value | $3 | $5 | $5 |
Pension_and_Other_Postemployme8
Pension and Other Postemployment Benefits (Details 6) (OPEB, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of changes in the fair value of pension investments | |||
Beginning balance | $504 | ||
Actual return on plan assets: | |||
Ending balance | 473 | 504 | |
Real estate funds | |||
Reconciliation of changes in the fair value of pension investments | |||
Beginning balance | 5 | ||
Actual return on plan assets: | |||
Ending balance | 3 | 5 | |
Level 3 | |||
Reconciliation of changes in the fair value of pension investments | |||
Beginning balance | 5 | ||
Actual return on plan assets: | |||
Ending balance | 3 | 5 | |
Level 3 | Real estate funds | |||
Reconciliation of changes in the fair value of pension investments | |||
Beginning balance | 5 | 5 | |
Actual return on plan assets: | |||
Transfers in (out) | -2 | ||
Ending balance | $3 | $5 |
Pension_and_Other_Postemployme9
Pension and Other Postemployment Benefits (Details 7) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Asset Allocations | 100.00% | 100.00% |
Equities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Asset Allocations | 42.00% | 26.00% |
Fixed income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Asset Allocations | 32.00% | 40.00% |
Absolute return strategies | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Asset Allocations | 14.00% | 22.00% |
Real estate | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Asset Allocations | 5.00% | 5.00% |
Alternative Investments [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Asset Allocations | 1.00% | 1.00% |
Cash | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Target Asset Allocations | 6.00% | 6.00% |
Recovered_Sheet1
Pension and Other Postemployment Benefits (Details 8) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Effect of One percentage point increase on total of service and interest cost | $2 |
Effect of One percentage point increase on accumulated postretirement benefit obligation | 23 |
Effect of One percentage point decrease on total of service and interest cost | -1 |
Effect of One percentage point decrease on accumulated postretirement benefit obligation | ($22) |
Recovered_Sheet2
Pension and Other Postemployment Benefits (Details 9) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pensions | |
Estimated Future Benefit Payments | |
2015 | $467 |
2016 | 476 |
2017 | 491 |
2018 | 513 |
2019 | 529 |
2020-2024 | 2,887 |
OPEB | Employer Subsidized Benefit | |
Estimated Future Benefit Payments | |
2015 | 59 |
2016 | 59 |
2017 | 58 |
2018 | 56 |
2019 | 55 |
2020-2024 | 260 |
OPEB | Medicare Rx Reimbursement | |
Estimated Future Benefit Payments | |
2015 | -3 |
2016 | -3 |
2017 | -3 |
2018 | -3 |
2019 | -3 |
2020-2024 | ($10) |
Recovered_Sheet3
Pension and Other Postemployment Benefits (Details 10) (FES, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pensions | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net Liability | ($295) | ($149) |
OPEB | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net Liability | $10 | ($8) |
Recovered_Sheet4
Pension and Other Postemployment Benefits (Details 11) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net Periodic Costs | $1,350 | ($187) | $811 |
Pensions | FES | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net Periodic Costs | 150 | -30 | 78 |
OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net Periodic Costs | -154 | -320 | -41 |
OPEB | FES | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net Periodic Costs | ($24) | ($40) | ($11) |
Recovered_Sheet5
Pension and Other Postemployment Benefits (Details Textuals) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 01, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Mark-to-market adjustment | $1,243 | ($396) | $875 | |
Mark-to-market adjustment, net of capitalized amounts | 835 | -256 | 609 | |
Decrease in discount rate | -0.75% | |||
Estimated future employer contributions in next fiscal year | 143 | |||
Pensions and OPEB | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual return on plan assets | 387 | -22 | ||
Actual return on plan assets (percent) | 6.20% | -0.30% | ||
Expected return on plan assets | 496 | 535 | ||
Pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Decrease in underfunded status | 40 | |||
Actual return on plan assets | 349 | -77 | ||
Expected long-term return on plan assets | 7.75% | 7.75% | 7.75% | |
Expected return on plan assets | 462 | 501 | 486 | |
Increase in benefit obligation | 373 | |||
Estimated 2014 amortization of prior service costs (credits) from AOCI | 9 | |||
Excluded from total investments | 92 | -87 | ||
OPEB | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Decrease in underfunded status | 97 | |||
Actual return on plan assets | 38 | 56 | ||
Expected long-term return on plan assets | 7.75% | 7.75% | 7.75% | |
Expected return on plan assets | 34 | 34 | 37 | |
Increase in benefit obligation | 21 | |||
Estimated 2014 amortization of prior service costs (credits) from AOCI | -134 | |||
Excluded from total investments | ($9) | ($9) |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted stock and stock units outstanding [Roll Forward] | |
Dividend shares earned during period, number of shares | 148,982 |
Restricted Stock and Restricted Stock Units Awards | |
Restricted stock and stock units outstanding [Roll Forward] | |
Number of Shares, Nonvested, Beginning Balance | 2,216,609 |
Restricted stock granted (in shares) | 1,171,318 |
Vested | -872,574 |
Forfeited, number of shares | -103,549 |
Number of Shares, Nonvested, Ending Balance | 2,411,804 |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend shares earned during period, number of shares | 148,982 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend shares earned during period, number of shares | 16,480 | ||
Restricted stock granted (in shares) | 20,000 | 27,561 | 263,771 |
Weighted average market price | $32.71 | $42.53 | $44.82 |
Weighted average vesting period (years) | 2 years 3 months 15 days | 3 years 8 months 5 days | 3 years 1 month 2 days |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend shares earned during period, number of shares | 148,982 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested restricted stock balance, number of shares | 342,286 | 417,464 | |
Granted, number of shares | 20,000 | 27,561 | 263,771 |
Vested, number of shares | 93,435 | ||
Nonvested restricted stock balance, weighted average grant-date fair value (in dollars per share) | $45.29 | $45.46 | |
Granted, weighted average grant-date fair value (in dollars per share) | $32.71 | $42.53 | $44.82 |
Forfeited, number of shares | 1,743 | ||
Forfeited, weighted average grant-date fair value (in dollars per share) | $33.56 | ||
Vested, weighted average grant-date fair value (in dollars per share) | $37.30 | ||
Dividend shares earned during period, number of shares | 16,480 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans (Details 3) (Restricted Stock Units) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted (in shares) | 1,151,318 | 924,576 | 652,120 |
Weighted average vesting period (years) | 3 years | 3 years | 3 years |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend equivalents earned during vesting period, in shares | 148,982 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested stock units balance, number of shares | 2,069,518 | 1,799,145 | |
Granted, number of shares | 1,151,318 | 924,576 | 652,120 |
Forfeited, number of shares | 101,806 | ||
Vested, number of shares | 779,139 | ||
Nonvested stock units balance, weighted average grant-date fair value (in dollars per share) | $37.65 | $40.86 | |
Granted, weighted average grant-date fair value (in dollars per share) | $32.17 | ||
Forfeited, weighted average grant-date fair value (in dollars per share) | $38.70 | ||
Vested, weighted average grant-date fair value (in dollars per share) | $30.67 | ||
Dividend equivalents earned during vesting period, in shares | 132,502 |
StockBased_Compensation_Plans_6
Stock-Based Compensation Plans (Details 5) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of stock option activities | ||
Options exercisable (in shares) | 1,077,988 | 1,997,969 |
Number of options, Beginning Balance | 2,359,126 | |
Options exercised (in shares) | -50,007 | |
Options forfeited (in shares) | -869,974 | |
Number of options, Ending Balance | 1,439,145 | |
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $42.59 | |
Weighted Average Exercise Price of Options exercised (in dollars per share) | $21.58 | |
Weighted Average Exercise Price of Options forfeited (in dollars per share) | $40.07 | |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | $44.83 |
StockBased_Compensation_Plans_7
Stock-Based Compensation Plans (Details 6) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of options outstanding by plan and range of exercise price | |
Shares | 1,439,145 |
Weighted Average Exercise Price (in dollars per share) | $44.83 |
Remaining Contractual Life | 3 years 2 months 23 days |
$28.42-$37.74 | |
Summary of options outstanding by plan and range of exercise price | |
Options outstanding, Exercise Prices, Lower limit (in dollars per share) | $28.42 |
Options outstanding, Exercise Prices, Upper limit (in dollars per share) | $37.74 |
Shares | 491,245 |
Weighted Average Exercise Price (in dollars per share) | $35.23 |
Remaining Contractual Life | 3 years 11 months 23 days |
$37.75-$53.08 | |
Summary of options outstanding by plan and range of exercise price | |
Options outstanding, Exercise Prices, Lower limit (in dollars per share) | $37.75 |
Options outstanding, Exercise Prices, Upper limit (in dollars per share) | $53.08 |
Shares | 667,458 |
Weighted Average Exercise Price (in dollars per share) | $37.87 |
Remaining Contractual Life | 5 years 9 months 15 days |
$53.09-$81.19 | |
Summary of options outstanding by plan and range of exercise price | |
Options outstanding, Exercise Prices, Lower limit (in dollars per share) | $53.09 |
Options outstanding, Exercise Prices, Upper limit (in dollars per share) | $81.19 |
Shares | 280,442 |
Weighted Average Exercise Price (in dollars per share) | $78.23 |
Remaining Contractual Life | 2 years 10 months 24 days |
StockBased_Compensation_Plans_8
Stock-Based Compensation Plans (Details 7) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | $69 | $60 | $89 |
Tax benefit associated with stock-based compensation expense | 14 | 23 | 11 |
Stock-based compensation costs capitalized | 23 | 20 | 29 |
Restricted Stock and Restricted Stock Units Awards | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 31 | 42 | 42 |
Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 0 | 0 | 1 |
Performance Shares | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 5 | -10 | 5 |
401(k) Savings Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 25 | 25 | 37 |
EDCP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 3 | -2 | 0 |
DCPD | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 5 | 5 | 4 |
FES | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 9 | 9 | 13 |
Tax benefit associated with stock-based compensation expense | 2 | 1 | 2 |
Stock-based compensation costs capitalized | 1 | 1 | 1 |
FES | Restricted Stock and Restricted Stock Units Awards | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 4 | 6 | 6 |
FES | Performance Shares | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 1 | -1 | 1 |
FES | 401(k) Savings Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | $4 | $4 | $6 |
StockBased_Compensation_Plans_9
Stock-Based Compensation Plans (Details Textuals) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
award | |||
form | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock based compensation programs | 4 | ||
Maximum limit of total stock awards (in shares) | 29,000,000 | ||
Stock-based compensation award number of shares available for future | 1,300,000 | ||
Realized tax benefits | $13 | $13 | $22 |
Number of types of restricted stock unit awards | 2 | ||
Total intrinsic value of options exercised | 1 | ||
Intrinsic value of shares outstanding | 3 | ||
Share-based liabilities paid | 3 | 0 | 0 |
Tax benefit associated with stock-based compensation expense | 14 | 23 | 11 |
EDCP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferral period | 3 years | ||
DCPD | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred Compensation Liability, Classified, Noncurrent | 8 | 7 | |
Restricted Stock and Restricted Stock Units Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted (in shares) | 1,171,318 | ||
Unrecognized cost | 31 | ||
Unrecognized cost, period for recognition | 2 years | ||
Restricted Stock And Restricted Stock Units Awards, Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted (in shares) | 259,812 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from options exercised | $1 | $19 | $50 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award vesting period | 3 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award vesting period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award vesting period | 10 years | ||
401(k) Savings Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance | 756,412 | ||
Contributed to participants accounts (in shares) | 708,000 | 543,600 |
Taxes_Details
Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Currently payable (receivable)- | |||||||||||
Federal | ($132) | ($118) | ($130) | ||||||||
State | -72 | 70 | 28 | ||||||||
Currently payable (receivable) Total | -204 | -48 | -102 | ||||||||
Deferred, net- | |||||||||||
Federal | 214 | 305 | 580 | ||||||||
State | -42 | -54 | 78 | ||||||||
Deferred Tax Total | 172 | 251 | 658 | ||||||||
Investment tax credit amortization | -10 | -8 | -11 | ||||||||
Total provision for income taxes | -268 | 152 | 26 | 48 | 66 | 77 | -62 | 114 | -42 | 195 | 545 |
Internal Revenue Service (IRS) [Member] | |||||||||||
Deferred, net- | |||||||||||
Current tax effect of discontinued operation | 106 | ||||||||||
Defered tax effect of discontinued operation | 44 | ||||||||||
State and Local Jurisdiction [Member] | |||||||||||
Deferred, net- | |||||||||||
Current tax effect of discontinued operation | 12 | ||||||||||
Defered tax effect of discontinued operation | 5 | ||||||||||
FES | |||||||||||
Currently payable (receivable)- | |||||||||||
Federal | -222 | -300 | -128 | ||||||||
State | -13 | -3 | 17 | ||||||||
Currently payable (receivable) Total | -235 | -303 | -111 | ||||||||
Deferred, net- | |||||||||||
Federal | 25 | 317 | 209 | ||||||||
State | -14 | -4 | 9 | ||||||||
Deferred Tax Total | 11 | 313 | 218 | ||||||||
Investment tax credit amortization | -4 | -4 | -4 | ||||||||
Total provision for income taxes | ($133) | $28 | ($67) | ($56) | $25 | $23 | ($42) | $0 | ($228) | $6 | $103 |
Taxes_Details_1
Taxes (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes | |||||||||||
Income from Continuing Operations before provision for income taxes | $171 | $570 | $1,299 | ||||||||
Federal income tax expense at statutory rate (35%) | 60 | 199 | 455 | ||||||||
Increases (reductions) in taxes resulting from- | |||||||||||
Amortization of investment tax credits | -10 | -8 | -11 | ||||||||
State income taxes, net of federal tax benefit | 12 | 10 | 79 | ||||||||
Medicare Part D | 0 | 0 | 32 | ||||||||
Effectively settled tax items, including interest | -35 | -2 | -20 | ||||||||
ESOP dividend | -6 | -9 | 0 | ||||||||
Change in accounting method | -27 | 0 | 0 | ||||||||
Tax basis balance sheet adjustments | -25 | 0 | 0 | ||||||||
AFUDC equity and other flow-through | -13 | -7 | 0 | ||||||||
Other, net | 2 | 12 | 10 | ||||||||
Total provision for income taxes | -268 | 152 | 26 | 48 | 66 | 77 | -62 | 114 | -42 | 195 | 545 |
Effective income tax rate (percent) | -24.60% | 34.20% | 42.00% | ||||||||
FES | |||||||||||
Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes | |||||||||||
Income from Continuing Operations before provision for income taxes | -588 | 52 | 276 | ||||||||
Federal income tax expense at statutory rate (35%) | -206 | 18 | 97 | ||||||||
Increases (reductions) in taxes resulting from- | |||||||||||
Amortization of investment tax credits | -4 | -4 | -4 | ||||||||
State income taxes, net of federal tax benefit | -14 | -5 | 17 | ||||||||
Effectively settled tax items, including interest | 0 | 0 | -11 | ||||||||
ESOP dividend | -1 | -2 | 0 | ||||||||
Other, net | -3 | -1 | 4 | ||||||||
Total provision for income taxes | ($133) | $28 | ($67) | ($56) | $25 | $23 | ($42) | $0 | ($228) | $6 | $103 |
Effective income tax rate (percent) | 38.80% | 11.50% | 37.30% |
Taxes_Details_2
Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accumulated deferred income taxes | ||
Property basis differences | $9,354 | $8,734 |
Deferred sale and leaseback gain | -381 | -401 |
Pension and OPEB | -1,433 | -972 |
Nuclear decommissioning activities | 458 | 460 |
Asset retirement obligations | -641 | -651 |
Regulatory asset/liability | 768 | 750 |
Loss carryforwards and AMT credits | -1,932 | -1,598 |
Loss carryforward valuation reserve | 174 | 125 |
All other | 172 | 155 |
Net deferred income tax liability | 6,539 | 6,602 |
FES | ||
Accumulated deferred income taxes | ||
Property basis differences | 1,749 | 1,354 |
Deferred sale and leaseback gain | -356 | -370 |
Pension and OPEB | -373 | -66 |
Lease market valuation liability | 75 | 54 |
Nuclear decommissioning activities | 489 | 470 |
Asset retirement obligations | -486 | -439 |
Loss carryforwards and AMT credits | -631 | -354 |
Loss carryforward valuation reserve | 32 | 27 |
All other | -15 | 40 |
Net deferred income tax liability | $484 | $716 |
Taxes_Details_3
Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in unrecognized tax benefits | |||
Beginning balance | $48 | $43 | $117 |
Current year increases | 4 | 2 | |
Current year decreases | -7 | ||
Prior years increases | 5 | 10 | 6 |
Prior years decreases | -23 | -5 | -37 |
Decrease for settlements | -38 | ||
Ending balance | 34 | 48 | 43 |
FES | |||
Changes in unrecognized tax benefits | |||
Beginning balance | 3 | 3 | 45 |
Current year increases | 0 | 0 | |
Current year decreases | 0 | ||
Prior years increases | 0 | 0 | 6 |
Prior years decreases | 0 | 0 | -13 |
Decrease for settlements | -35 | ||
Ending balance | $3 | $3 | $3 |
Taxes_Details_4
Taxes (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net interest expense (income) and cumulative net interest payable (receivable) | |||
Net Interest Expense (Income) | ($6) | $1 | ($4) |
Net Interest Payable | 2 | 9 | |
FES | |||
Net interest expense (income) and cumulative net interest payable (receivable) | |||
Net Interest Expense (Income) | 0 | 0 | -4 |
Net Interest Payable | $0 | $1 |
Taxes_Details_5
Taxes (Details 5) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | $9,900 |
2015-2019 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 63 |
State Jurisdiction | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 6,752 |
State Jurisdiction | 2020-2024 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 1,813 |
State Jurisdiction | 2025-2029 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 1,704 |
State Jurisdiction | 2030-2034 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 3,172 |
Local Jurisdiction | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 3,170 |
Local Jurisdiction | 2015-2019 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 2,524 |
Local Jurisdiction | 2020-2024 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 646 |
Local Jurisdiction | 2025-2029 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 0 |
Local Jurisdiction | 2030-2034 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 0 |
FES | State Jurisdiction | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 1,271 |
FES | State Jurisdiction | 2015-2019 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 0 |
FES | State Jurisdiction | 2020-2024 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 182 |
FES | State Jurisdiction | 2025-2029 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 88 |
FES | State Jurisdiction | 2030-2034 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 1,001 |
FES | Local Jurisdiction | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 1,874 |
FES | Local Jurisdiction | 2015-2019 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 1,874 |
FES | Local Jurisdiction | 2020-2024 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 0 |
FES | Local Jurisdiction | 2025-2029 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | 0 |
FES | Local Jurisdiction | 2030-2034 | |
Pre-tax net operating loss expiration period | |
Pre-tax net operating loss carryforwards for state and local income tax purposes | $0 |
Taxes_Details_6
Taxes (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
General Taxes | |||
Total general taxes | $962 | $978 | $984 |
KWH excise | |||
General Taxes | |||
Total general taxes | 194 | 219 | 230 |
State gross receipts | |||
General Taxes | |||
Total general taxes | 226 | 240 | 251 |
Real and personal property | |||
General Taxes | |||
Total general taxes | 393 | 368 | 328 |
Social security and unemployment | |||
General Taxes | |||
Total general taxes | 112 | 110 | 126 |
Other | |||
General Taxes | |||
Total general taxes | 37 | 41 | 49 |
FES | |||
General Taxes | |||
Total general taxes | 128 | 138 | 136 |
FES | State gross receipts | |||
General Taxes | |||
Total general taxes | 69 | 77 | 77 |
FES | Real and personal property | |||
General Taxes | |||
Total general taxes | 39 | 40 | 35 |
FES | Social security and unemployment | |||
General Taxes | |||
Total general taxes | 17 | 19 | 20 |
FES | Other | |||
General Taxes | |||
Total general taxes | $3 | $2 | $4 |
Taxes_Details_Textuals
Taxes (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes (Textuals) [Abstract] | |||||
Effective income tax rate (percent) | -24.60% | 34.20% | 42.00% | ||
Federal Income Tax Expense (Benefit), Continuing Operations | $399,000,000 | ||||
Change in accounting method | -27,000,000 | 0 | 0 | ||
Tax basis balance sheet adjustments | -16,000,000 | 25,000,000 | |||
Deferred tax assets, gross | 1,500,000,000 | 1,500,000,000 | |||
Pre-tax net operating loss carryforwards for state and local income tax purposes | 9,900,000,000 | 9,900,000,000 | |||
Pre-tax net operating loss carryforwards expected to utilized | 5,600,000,000 | 5,600,000,000 | |||
Unrecognized tax benefits | 34,000,000 | 34,000,000 | 48,000,000 | 43,000,000 | 117,000,000 |
Unrecognized tax benefits, portion expected to be resolved in the next fiscal year | 10,000,000 | 10,000,000 | |||
Reduction in effective tax rate | 6,000,000 | 4,000,000 | |||
Federal | |||||
Income Taxes (Textuals) [Abstract] | |||||
Operating loss carryforwards, not subject to expiration | 25,000,000 | 25,000,000 | |||
State and Local | |||||
Income Taxes (Textuals) [Abstract] | |||||
Expiration of statute of limitations | 33,000,000 | ||||
Operating loss carryforwards, subject to expiration | 413,000,000 | 413,000,000 | |||
FES | |||||
Income Taxes (Textuals) [Abstract] | |||||
Effective income tax rate (percent) | 38.80% | 11.50% | 37.30% | ||
Unrecognized tax benefits | $3,000,000 | $3,000,000 | $3,000,000 | $3,000,000 | $45,000,000 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rentals for capital and operating leases | |||
Operating leases | $199 | $224 | $291 |
FES | |||
Rentals for capital and operating leases | |||
Operating leases | $95 | $97 | $140 |
Leases_Details_1
Leases (Details 1) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Future minimum capital lease payments | |
2015 | $39 |
2016 | 35 |
2017 | 30 |
2018 | 23 |
2019 | 18 |
Years thereafter | 40 |
Total minimum lease payments | 185 |
Interest portion | -25 |
Present value of net minimum lease payments | 160 |
Less current portion | 34 |
Noncurrent portion | 126 |
FES | |
Future minimum capital lease payments | |
2015 | 6 |
2016 | 6 |
2017 | 5 |
2018 | 2 |
2019 | 0 |
Years thereafter | 0 |
Total minimum lease payments | 19 |
Interest portion | -1 |
Present value of net minimum lease payments | 18 |
Less current portion | 5 |
Noncurrent portion | $13 |
Leases_Details_2
Leases (Details 2) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Future minimum operating lease payments | |
2015 | $205 |
2016 | 184 |
2017 | 119 |
2018 | 128 |
2019 | 109 |
Years thereafter | 1,482 |
Total minimum lease payments | 2,227 |
Lease Payments | |
Future minimum operating lease payments | |
2015 | 245 |
2016 | 197 |
2017 | 122 |
2018 | 128 |
2019 | 109 |
Years thereafter | 1,482 |
Total minimum lease payments | 2,283 |
PNBV Capital Trust | |
Future minimum operating lease payments | |
2015 | 40 |
2016 | 13 |
2017 | 3 |
2018 | 0 |
2019 | 0 |
Years thereafter | 0 |
Total minimum lease payments | 56 |
FES | |
Future minimum operating lease payments | |
2015 | 142 |
2016 | 131 |
2017 | 81 |
2018 | 101 |
2019 | 97 |
Years thereafter | 1,383 |
Total minimum lease payments | $1,935 |
Leases_Details_Textuals
Leases (Details Textuals) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 30, 1987 | Dec. 31, 2007 | Feb. 12, 2014 | Nov. 30, 2014 | Dec. 31, 2014 |
MW | MW | ||||
Leases (Textuals) [Abstract] | |||||
Period of lease terms on the portions sold by OE of its ownership interests in Perry Unit 1 and Beaver Valley Unit 2 in years | 29 years | ||||
Period of lease terms on the portions sold by CEI and TE of their ownership interests in Beaver Valley Unit 2 and Bruce Mansfield Units | 30 years | ||||
Beaver Valley Unit 2 | |||||
Leases (Textuals) [Abstract] | |||||
Percentage leased | 2.60% | ||||
Bruce Mansfield Unit 1 | |||||
Leases (Textuals) [Abstract] | |||||
Percentage leased | 93.83% | ||||
Perry Power Plant Unit 1 | |||||
Leases (Textuals) [Abstract] | |||||
Percentage leased | 3.75% | ||||
FGCO | |||||
Leases (Textuals) [Abstract] | |||||
Percentage of undivided interest of FGCO in Bruce Mansfield Unit 1 | 93.83% | ||||
FGCO | Bruce Mansfield Unit 1 | |||||
Leases (Textuals) [Abstract] | |||||
Basic terms of operating lease | 33 years | ||||
Nuclear Generation Corp | Beaver Valley Unit 2 | |||||
Leases (Textuals) [Abstract] | |||||
Purchase of lessor equity interests in sale and leaseback (in MW) | 47.7 | 55.3 | |||
Purchase of lessor equity interests in sale and leaseback, value | $94 | ||||
Nuclear Generation Corp | Perry Power Plant Unit 1 | |||||
Leases (Textuals) [Abstract] | |||||
Purchase of lessor equity interests in sale and leaseback, value | 87 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Intangible Assets (Textuals) [Abstract] | ||
Intangible Assets, Gross | $882 | |
Intangible Assets, Accumulated Amortization | 386 | |
Intangible Assets, Net | 496 | |
Amortization Expense | ||
Actual, 2014 | 80 | |
Estimated, 2015 | 75 | |
Estimated, 2016 | 75 | |
Estimated, 2017 | 68 | |
Estimated, 2018 | 51 | |
Estimated, 2019 | 50 | |
Estimated, Thereafter | 136 | |
FES | ||
Intangible Assets (Textuals) [Abstract] | ||
Intangible Assets, Net | 78 | 95 |
Amortization Expense | ||
Actual, 2014 | 5.7 | |
NUG contracts | ||
Intangible Assets (Textuals) [Abstract] | ||
Intangible Assets, Gross | 124 | |
Intangible Assets, Accumulated Amortization | 20 | |
Intangible Assets, Net | 104 | |
Amortization Expense | ||
Actual, 2014 | 5 | |
Estimated, 2015 | 5 | |
Estimated, 2016 | 5 | |
Estimated, 2017 | 5 | |
Estimated, 2018 | 5 | |
Estimated, 2019 | 5 | |
Estimated, Thereafter | 79 | |
OVEC | ||
Intangible Assets (Textuals) [Abstract] | ||
Intangible Assets, Gross | 54 | |
Intangible Assets, Accumulated Amortization | 7 | |
Intangible Assets, Net | 47 | |
Amortization Expense | ||
Actual, 2014 | 2 | |
Estimated, 2015 | 2 | |
Estimated, 2016 | 2 | |
Estimated, 2017 | 2 | |
Estimated, 2018 | 2 | |
Estimated, 2019 | 2 | |
Estimated, Thereafter | 37 | |
Coal contracts | ||
Intangible Assets (Textuals) [Abstract] | ||
Intangible Assets, Gross | 556 | |
Intangible Assets, Accumulated Amortization | 289 | |
Intangible Assets, Net | 267 | |
Amortization Expense | ||
Actual, 2014 | 55 | |
Estimated, 2015 | 51 | |
Estimated, 2016 | 51 | |
Estimated, 2017 | 45 | |
Estimated, 2018 | 30 | |
Estimated, 2019 | 30 | |
Estimated, Thereafter | 19 | |
Coal contracts | Recorded with Regulatory Offset | ||
Intangible Assets (Textuals) [Abstract] | ||
Intangible Assets, Gross | 102 | |
Intangible Assets, Net | 41 | |
Coal contracts | Recorded with Regulatory Offset | FES | ||
Intangible Assets (Textuals) [Abstract] | ||
Intangible Assets, Gross | 40 | |
Intangible Assets, Net | 29 | |
Customer Contracts | ||
Intangible Assets (Textuals) [Abstract] | ||
Intangible Assets, Gross | 148 | |
Intangible Assets, Accumulated Amortization | 70 | |
Intangible Assets, Net | 78 | |
Amortization Expense | ||
Actual, 2014 | 18 | |
Estimated, 2015 | 17 | |
Estimated, 2016 | 17 | |
Estimated, 2017 | 16 | |
Estimated, 2018 | 14 | |
Estimated, 2019 | 13 | |
Estimated, Thereafter | $1 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Net exposure to loss based upon the casualty value provisions | |
Maximum Exposure | $1,308 |
Discounted Lease Payments, net | 1,050 |
Net Exposure | 258 |
FES | |
Net exposure to loss based upon the casualty value provisions | |
Maximum Exposure | 1,217 |
Discounted Lease Payments, net | 1,003 |
Net Exposure | $214 |
Variable_Interest_Entities_Det1
Variable Interest Entities (Details Textuals) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
entity | T | |||
Variable Interest Entities (Textuals) [Abstract] | ||||
Equity interest by unaffiliated third party in PNBV | 3.00% | |||
Number of contracts that may contain variable interest | 2 | |||
Purchased power | $4,716,000,000 | $3,963,000,000 | $4,246,000,000 | |
Power Purchase Agreements | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Number of long-term power purchase agreements maintained by FirstEnergy with NUG entities | 17 | |||
Path-WV | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Percentage of high-voltage transmission line project owned by subsidiary of AE on the Allegheny Series | 100.00% | |||
Percentage of high-voltage transmission line project owned by subsidiary of AE on the West Virginia Series | 50.00% | |||
Signal Peak | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Ownership percentage sold | 16.70% | |||
FEV | Signal Peak | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Ownership percentage by parent | 50.00% | |||
OE | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Equity interest by OES Ventures in PNBV | 3.00% | |||
Other FE subsidiaries | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Ownership interest | 0.00% | |||
Other FE subsidiaries | Power Purchase Agreements | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Purchased power | 185,000,000 | |||
Ohio Funding Companies | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Aggregate Annual Servicing Fees Receivable For Phase-in Recovery Bonds | 445,000 | |||
WP | Power Purchase Agreements | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Reserve For Adverse Purchase Power Commitment, Pretax Loss | $17,000,000 | |||
Global Holding | FEV | Signal Peak | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Ownership interest | 33.33% | |||
Put Option [Member] | FEV | Signal Peak | ||||
Variable Interest Entities (Textuals) [Abstract] | ||||
Investment Owned, Balance, Other Measure | 2,000,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Fair value, assets | $2,832 | $2,865 |
Liabilities | ||
Fair value, liabilities | -334 | -347 |
Net assets (liabilities) | 2,498 | 2,518 |
FES | ||
Assets | ||
Fair value, assets | 1,520 | 1,485 |
Liabilities | ||
Fair value, liabilities | -180 | -124 |
Net assets (liabilities) | 1,340 | 1,361 |
Commodity contracts | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | -167 | -113 |
Commodity contracts | Derivative Liabilities | FES | ||
Liabilities | ||
Fair value, liabilities | -167 | -113 |
FTRs | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | -14 | -12 |
FTRs | Derivative Liabilities | FES | ||
Liabilities | ||
Fair value, liabilities | -13 | -11 |
NUG contracts | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | -153 | -222 |
Corporate debt securities | ||
Assets | ||
Fair value, assets | 1,221 | 1,365 |
Corporate debt securities | FES | ||
Assets | ||
Fair value, assets | 655 | 792 |
Commodity contracts | Derivative Assets | ||
Assets | ||
Fair value, assets | 172 | 215 |
Commodity contracts | Derivative Assets | FES | ||
Assets | ||
Fair value, assets | 172 | 215 |
FTRs | Derivative Assets | ||
Assets | ||
Fair value, assets | 39 | 4 |
FTRs | Derivative Assets | FES | ||
Assets | ||
Fair value, assets | 27 | 3 |
NUG contracts | Derivative Assets | ||
Assets | ||
Fair value, assets | 2 | 20 |
Equity securities | ||
Assets | ||
Fair value, assets | 592 | 317 |
Equity securities | FES | ||
Assets | ||
Fair value, assets | 360 | 207 |
Foreign government debt securities | ||
Assets | ||
Fair value, assets | 76 | 109 |
Foreign government debt securities | FES | ||
Assets | ||
Fair value, assets | 57 | 65 |
U.S. government debt securities | ||
Assets | ||
Fair value, assets | 182 | 165 |
U.S. government debt securities | FES | ||
Assets | ||
Fair value, assets | 46 | 27 |
U.S. state debt securities | ||
Assets | ||
Fair value, assets | 237 | 228 |
U.S. state debt securities | FES | ||
Assets | ||
Fair value, assets | 4 | 0 |
Other | ||
Assets | ||
Fair value, assets | 311 | 442 |
Other | FES | ||
Assets | ||
Fair value, assets | 199 | 176 |
Level 1 | ||
Assets | ||
Fair value, assets | 648 | 511 |
Liabilities | ||
Fair value, liabilities | -26 | -13 |
Net assets (liabilities) | 622 | 498 |
Level 1 | FES | ||
Assets | ||
Fair value, assets | 361 | 214 |
Liabilities | ||
Fair value, liabilities | -26 | -13 |
Net assets (liabilities) | 335 | 201 |
Level 1 | Commodity contracts | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | -26 | -13 |
Level 1 | Commodity contracts | Derivative Liabilities | FES | ||
Liabilities | ||
Fair value, liabilities | -26 | -13 |
Level 1 | FTRs | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | 0 | 0 |
Level 1 | FTRs | Derivative Liabilities | FES | ||
Liabilities | ||
Fair value, liabilities | 0 | 0 |
Level 1 | NUG contracts | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | 0 | 0 |
Level 1 | Corporate debt securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | Corporate debt securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | Commodity contracts | Derivative Assets | ||
Assets | ||
Fair value, assets | 1 | 7 |
Level 1 | Commodity contracts | Derivative Assets | FES | ||
Assets | ||
Fair value, assets | 1 | 7 |
Level 1 | FTRs | Derivative Assets | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | FTRs | Derivative Assets | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | NUG contracts | Derivative Assets | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | Equity securities | ||
Assets | ||
Fair value, assets | 592 | 317 |
Level 1 | Equity securities | FES | ||
Assets | ||
Fair value, assets | 360 | 207 |
Level 1 | Foreign government debt securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | Foreign government debt securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | U.S. government debt securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | U.S. government debt securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | U.S. state debt securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | U.S. state debt securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 1 | Other | ||
Assets | ||
Fair value, assets | 55 | 187 |
Level 1 | Other | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 2 | ||
Assets | ||
Fair value, assets | 2,143 | 2,330 |
Liabilities | ||
Fair value, liabilities | -141 | -100 |
Net assets (liabilities) | 2,002 | 2,230 |
Level 2 | FES | ||
Assets | ||
Fair value, assets | 1,132 | 1,268 |
Liabilities | ||
Fair value, liabilities | -141 | -100 |
Net assets (liabilities) | 991 | 1,168 |
Level 2 | Commodity contracts | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | -141 | -100 |
Level 2 | Commodity contracts | Derivative Liabilities | FES | ||
Liabilities | ||
Fair value, liabilities | -141 | -100 |
Level 2 | FTRs | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | 0 | 0 |
Level 2 | FTRs | Derivative Liabilities | FES | ||
Liabilities | ||
Fair value, liabilities | 0 | 0 |
Level 2 | NUG contracts | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | 0 | 0 |
Level 2 | Corporate debt securities | ||
Assets | ||
Fair value, assets | 1,221 | 1,365 |
Level 2 | Corporate debt securities | FES | ||
Assets | ||
Fair value, assets | 655 | 792 |
Level 2 | Commodity contracts | Derivative Assets | ||
Assets | ||
Fair value, assets | 171 | 208 |
Level 2 | Commodity contracts | Derivative Assets | FES | ||
Assets | ||
Fair value, assets | 171 | 208 |
Level 2 | FTRs | Derivative Assets | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 2 | FTRs | Derivative Assets | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 2 | NUG contracts | Derivative Assets | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 2 | Equity securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 2 | Equity securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 2 | Foreign government debt securities | ||
Assets | ||
Fair value, assets | 76 | 109 |
Level 2 | Foreign government debt securities | FES | ||
Assets | ||
Fair value, assets | 57 | 65 |
Level 2 | U.S. government debt securities | ||
Assets | ||
Fair value, assets | 182 | 165 |
Level 2 | U.S. government debt securities | FES | ||
Assets | ||
Fair value, assets | 46 | 27 |
Level 2 | U.S. state debt securities | ||
Assets | ||
Fair value, assets | 237 | 228 |
Level 2 | U.S. state debt securities | FES | ||
Assets | ||
Fair value, assets | 4 | 0 |
Level 2 | Other | ||
Assets | ||
Fair value, assets | 256 | 255 |
Level 2 | Other | FES | ||
Assets | ||
Fair value, assets | 199 | 176 |
Level 3 | ||
Assets | ||
Fair value, assets | 41 | 24 |
Liabilities | ||
Fair value, liabilities | -167 | -234 |
Net assets (liabilities) | -126 | -210 |
Level 3 | FES | ||
Assets | ||
Fair value, assets | 27 | 3 |
Liabilities | ||
Fair value, liabilities | -13 | -11 |
Net assets (liabilities) | 14 | -8 |
Level 3 | Commodity contracts | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | 0 | 0 |
Level 3 | Commodity contracts | Derivative Liabilities | FES | ||
Liabilities | ||
Fair value, liabilities | 0 | 0 |
Level 3 | FTRs | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | -14 | -12 |
Level 3 | FTRs | Derivative Liabilities | FES | ||
Liabilities | ||
Fair value, liabilities | -13 | -11 |
Level 3 | NUG contracts | Derivative Liabilities | ||
Liabilities | ||
Fair value, liabilities | -153 | -222 |
Level 3 | Corporate debt securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | Corporate debt securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | Commodity contracts | Derivative Assets | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | Commodity contracts | Derivative Assets | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | FTRs | Derivative Assets | ||
Assets | ||
Fair value, assets | 39 | 4 |
Level 3 | FTRs | Derivative Assets | FES | ||
Assets | ||
Fair value, assets | 27 | 3 |
Level 3 | NUG contracts | Derivative Assets | ||
Assets | ||
Fair value, assets | 2 | 20 |
Level 3 | Equity securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | Equity securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | Foreign government debt securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | Foreign government debt securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | U.S. government debt securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | U.S. government debt securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | U.S. state debt securities | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | U.S. state debt securities | FES | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | Other | ||
Assets | ||
Fair value, assets | 0 | 0 |
Level 3 | Other | FES | ||
Assets | ||
Fair value, assets | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Level 3, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
NUG contracts | ||
Reconciliation of changes in the fair value of NUG contracts | ||
Beginning Balance, Derivative Assets | $20 | $36 |
Beginning Balance, Derivative Liabilities | -222 | -290 |
Beginning Balance, Net | -202 | -254 |
Unrealized gain (loss), Derivative Assets | 2 | -8 |
Unrealized gain (loss), Derivative Liabilities | -2 | -17 |
Unrealized gain (loss), Net | 0 | -25 |
Purchases, Derivative Assets | 0 | 0 |
Purchases, Derivative Liabilities | 0 | 0 |
Purchases, Net | 0 | 0 |
Terminations, Derivative Assets | 0 | |
Terminations, Derivative Liability | 0 | |
Terminations, Net | 0 | |
Settlements, Derivative Assets | -20 | -8 |
Settlements, Derivative Liabilities | 71 | 85 |
Settlements, Net | 51 | 77 |
Ending Balance, Derivative Assets | 2 | 20 |
Ending Balance, Derivative Liabilities | -153 | -222 |
Ending Balance, Net | -151 | -202 |
LCAPP Contracts | ||
Reconciliation of changes in the fair value of NUG contracts | ||
Beginning Balance, Derivative Assets | 0 | 0 |
Beginning Balance, Derivative Liabilities | 0 | -144 |
Beginning Balance, Net | 0 | -144 |
Unrealized gain (loss), Derivative Assets | 0 | 0 |
Unrealized gain (loss), Derivative Liabilities | 0 | -22 |
Unrealized gain (loss), Net | 0 | -22 |
Purchases, Derivative Assets | 0 | 0 |
Purchases, Derivative Liabilities | 0 | 0 |
Purchases, Net | 0 | 0 |
Terminations, Derivative Assets | 0 | |
Terminations, Derivative Liability | 166 | |
Terminations, Net | 166 | |
Settlements, Derivative Assets | 0 | 0 |
Settlements, Derivative Liabilities | 0 | 0 |
Settlements, Net | 0 | 0 |
Ending Balance, Derivative Assets | 0 | 0 |
Ending Balance, Derivative Liabilities | 0 | 0 |
Ending Balance, Net | 0 | 0 |
FTRs | ||
Reconciliation of changes in the fair value of NUG contracts | ||
Beginning Balance, Derivative Assets | 4 | 8 |
Beginning Balance, Derivative Liabilities | -12 | -9 |
Beginning Balance, Net | -8 | -1 |
Unrealized gain (loss), Derivative Assets | 47 | 3 |
Unrealized gain (loss), Derivative Liabilities | -1 | 1 |
Unrealized gain (loss), Net | 46 | 4 |
Purchases, Derivative Assets | 26 | 6 |
Purchases, Derivative Liabilities | -16 | -15 |
Purchases, Net | 10 | -9 |
Terminations, Derivative Assets | 0 | |
Terminations, Derivative Liability | 0 | |
Terminations, Net | 0 | |
Settlements, Derivative Assets | -38 | -13 |
Settlements, Derivative Liabilities | 15 | 11 |
Settlements, Net | -23 | -2 |
Ending Balance, Derivative Assets | 39 | 4 |
Ending Balance, Derivative Liabilities | -14 | -12 |
Ending Balance, Net | 25 | -8 |
FES | FTRs | ||
Reconciliation of changes in the fair value of NUG contracts | ||
Beginning Balance, Derivative Assets | 3 | 6 |
Beginning Balance, Derivative Liabilities | -11 | -6 |
Beginning Balance, Net | -8 | 0 |
Unrealized gain (loss), Derivative Assets | 34 | 0 |
Unrealized gain (loss), Derivative Liabilities | -1 | -2 |
Unrealized gain (loss), Net | 33 | -2 |
Purchases, Derivative Assets | 15 | 5 |
Purchases, Derivative Liabilities | -16 | -12 |
Purchases, Net | -1 | -7 |
Settlements, Derivative Assets | -25 | -8 |
Settlements, Derivative Liabilities | 15 | 9 |
Settlements, Net | -10 | 1 |
Ending Balance, Derivative Assets | 27 | 3 |
Ending Balance, Derivative Liabilities | -13 | -11 |
Ending Balance, Net | $14 | ($8) |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (Level 3, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
FTRs | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value | $25 | ($8) | ($1) |
FTRs | FES | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value | 14 | -8 | 0 |
NUG contracts | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value | -151 | -202 | -254 |
Model | FTRs | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value | 25 | ||
Model | FTRs | FES | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value | 14 | ||
Model | NUG contracts | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value | ($151) | ||
Model | Minimum | FTRs | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, RTO Auction Clearing Prices | -7.2 | ||
Model | Minimum | FTRs | FES | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, RTO Auction Clearing Prices | -7.2 | ||
Model | Minimum | NUG contracts | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Power | 500 | ||
Fair Value Inputs, Power, Regional Prices | 44.4 | ||
Model | Maximum | FTRs | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, RTO Auction Clearing Prices | 19.3 | ||
Model | Maximum | FTRs | FES | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, RTO Auction Clearing Prices | 19.3 | ||
Model | Maximum | NUG contracts | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Power | 4,756,000 | ||
Fair Value Inputs, Power, Regional Prices | 69.8 | ||
Model | Weighted Average | FTRs | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, RTO Auction Clearing Prices | 1.4 | ||
Model | Weighted Average | FTRs | FES | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, RTO Auction Clearing Prices | 1.1 | ||
Model | Weighted Average | NUG contracts | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Power | 950,000 | ||
Fair Value Inputs, Power, Regional Prices | 51.8 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Securities | ||
Amortized cost basis, unrealized gains and losses and fair values of investments in available-for-sale securities | ||
Cost Basis | $1,724 | $1,881 |
Unrealized Gains | 27 | 33 |
Fair Value | 1,751 | 1,914 |
Equity securities | ||
Amortized cost basis, unrealized gains and losses and fair values of investments in available-for-sale securities | ||
Cost Basis | 533 | 308 |
Unrealized Gains | 58 | 9 |
Fair Value | 591 | 317 |
FES | Debt Securities | ||
Amortized cost basis, unrealized gains and losses and fair values of investments in available-for-sale securities | ||
Cost Basis | 788 | 918 |
Unrealized Gains | 13 | 17 |
Fair Value | 801 | 935 |
FES | Equity securities | ||
Amortized cost basis, unrealized gains and losses and fair values of investments in available-for-sale securities | ||
Cost Basis | 329 | 207 |
Unrealized Gains | 31 | 0 |
Fair Value | $360 | $207 |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Proceeds from the sale of investments in available-for-sale securities, realized gains and losses on those sales, and interest and dividend income | |||
Sales Proceeds | $2,133 | $2,047 | $2,980 |
Realized Gains | 146 | 92 | 179 |
Realized Losses | -75 | -46 | -83 |
OTTI | -37 | -90 | -16 |
Interest and Dividend Income | 96 | 101 | 70 |
FES | |||
Proceeds from the sale of investments in available-for-sale securities, realized gains and losses on those sales, and interest and dividend income | |||
Sales Proceeds | 1,163 | 940 | 1,464 |
Realized Gains | 113 | 70 | 124 |
Realized Losses | -54 | -21 | -59 |
OTTI | -33 | -79 | -14 |
Interest and Dividend Income | $56 | $60 | $39 |
Fair_Value_Measurements_Detail5
Fair Value Measurements (Details 5) (Debt Securities, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Securities | ||
Amortized cost basis, unrealized gains and losses, and approximate fair values of investments in held-to-maturity securities | ||
Cost Basis | $13 | $33 |
Unrealized Gains | 4 | 2 |
Fair Value | $17 | $35 |
Fair_Value_Measurements_Detail6
Fair Value Measurements (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying Value | ||
Fair value and related carrying amounts of long-term debt and other long-term obligations | ||
Long-term debt and other long-term obligations | $19,828 | $17,049 |
Fair Value | ||
Fair value and related carrying amounts of long-term debt and other long-term obligations | ||
Long-term debt and other long-term obligations | 21,733 | 17,957 |
FES | Carrying Value | ||
Fair value and related carrying amounts of long-term debt and other long-term obligations | ||
Long-term debt and other long-term obligations | 3,097 | 3,001 |
FES | Fair Value | ||
Fair value and related carrying amounts of long-term debt and other long-term obligations | ||
Long-term debt and other long-term obligations | $3,241 | $3,073 |
Fair_Value_Measurements_Detail7
Fair Value Measurements (Details Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value of Financial Instruments [Line Items] | |||
Investment excludes Receivables, Payables and Accrued income | 40 | $10 | |
Cash balance excluded from available for sale securities | 241 | 204 | |
Investments not required to be disclosed | 626 | 636 | |
Equity Method Investment, Adjustment | 9 | ||
FES | |||
Fair Value of Financial Instruments [Line Items] | |||
Investment excludes Receivables, Payables and Accrued income | 44 | 9 | |
Cash balance excluded from available for sale securities | 204 | $135 | |
NUG contracts | |||
Fair Value of Financial Instruments [Line Items] | |||
Period of future observable data to determine contract price | 3 years |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value of commodity derivatives | ||
Derivative Assets | $213 | $239 |
Derivative Liabilities | -334 | -347 |
Current Assets | ||
Fair value of commodity derivatives | ||
Derivative Assets | 159 | 166 |
Noncurrent Assets | ||
Fair value of commodity derivatives | ||
Derivative Assets | 54 | 73 |
Current Liabilities | ||
Fair value of commodity derivatives | ||
Derivative Liabilities | -167 | -111 |
Noncurrent Liabilities | ||
Fair value of commodity derivatives | ||
Derivative Liabilities | -167 | -236 |
Commodity contracts | Current Assets | ||
Fair value of commodity derivatives | ||
Derivative Assets | 121 | 162 |
Commodity contracts | Noncurrent Assets | ||
Fair value of commodity derivatives | ||
Derivative Assets | 51 | 53 |
Commodity contracts | Current Liabilities | ||
Fair value of commodity derivatives | ||
Derivative Liabilities | -154 | -102 |
Commodity contracts | Noncurrent Liabilities | ||
Fair value of commodity derivatives | ||
Derivative Liabilities | -13 | -11 |
FTRs | Current Assets | ||
Fair value of commodity derivatives | ||
Derivative Assets | 38 | 4 |
FTRs | Noncurrent Assets | ||
Fair value of commodity derivatives | ||
Derivative Assets | 1 | 0 |
FTRs | Current Liabilities | ||
Fair value of commodity derivatives | ||
Derivative Liabilities | -13 | -9 |
FTRs | Noncurrent Liabilities | ||
Fair value of commodity derivatives | ||
Derivative Liabilities | -1 | -3 |
NUGs | Noncurrent Assets | ||
Fair value of commodity derivatives | ||
Derivative Assets | 2 | 20 |
NUGs | Noncurrent Liabilities | ||
Fair value of commodity derivatives | ||
Derivative Liabilities | ($153) | ($222) |
Derivative_Instruments_Details1
Derivative Instruments (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Assets | ||
Fair Value | $213 | $239 |
Amounts Not Offset in Consolidated Balance Sheet, Derivative Instruments | -140 | -110 |
Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received)/Pledged | 0 | -9 |
Net Fair Value | 73 | 120 |
Derivative Liabilities | ||
Fair Value | -334 | -347 |
Amounts Not Offset in Consolidated Balance Sheet, Derivative Instruments | 140 | 110 |
Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received)/Pledged | 35 | 12 |
Net Fair Value | -159 | -225 |
Commodity contracts | ||
Derivative Assets | ||
Fair Value | 172 | 215 |
Amounts Not Offset in Consolidated Balance Sheet, Derivative Instruments | -126 | -106 |
Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received)/Pledged | 0 | -9 |
Net Fair Value | 46 | 100 |
Derivative Liabilities | ||
Fair Value | -167 | -113 |
Amounts Not Offset in Consolidated Balance Sheet, Derivative Instruments | 126 | 106 |
Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received)/Pledged | 35 | 7 |
Net Fair Value | -6 | 0 |
FTRs | ||
Derivative Assets | ||
Fair Value | 39 | 4 |
Amounts Not Offset in Consolidated Balance Sheet, Derivative Instruments | -14 | -4 |
Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received)/Pledged | 0 | 0 |
Net Fair Value | 25 | 0 |
Derivative Liabilities | ||
Fair Value | -14 | -12 |
Amounts Not Offset in Consolidated Balance Sheet, Derivative Instruments | 14 | 4 |
Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received)/Pledged | 0 | 5 |
Net Fair Value | 0 | -3 |
NUGs | ||
Derivative Assets | ||
Fair Value | 2 | 20 |
Amounts Not Offset in Consolidated Balance Sheet, Derivative Instruments | 0 | 0 |
Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received)/Pledged | 0 | 0 |
Net Fair Value | 2 | 20 |
Derivative Liabilities | ||
Fair Value | -153 | -222 |
Amounts Not Offset in Consolidated Balance Sheet, Derivative Instruments | 0 | 0 |
Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received)/Pledged | 0 | 0 |
Net Fair Value | ($153) | ($222) |
Derivative_Instruments_Details2
Derivative Instruments (Details 2) | Dec. 31, 2014 |
MWh | |
Power Contracts | |
Volume of First Energy's outstanding derivative transactions | |
Purchases (in MWH or mmBTUs) | 21,000,000 |
Sales (in MWH or mmBTUs) | 33,000,000 |
Net (in MWH or mmBTUs) | -12,000,000 |
FTRs | |
Volume of First Energy's outstanding derivative transactions | |
Purchases (in MWH or mmBTUs) | 43,000,000 |
Sales (in MWH or mmBTUs) | 0 |
Net (in MWH or mmBTUs) | 43,000,000 |
NUGs | |
Volume of First Energy's outstanding derivative transactions | |
Purchases (in MWH or mmBTUs) | 6,000,000 |
Sales (in MWH or mmBTUs) | 0 |
Net (in MWH or mmBTUs) | 6,000,000 |
Natural Gas | |
Volume of First Energy's outstanding derivative transactions | |
Purchases (in MWH or mmBTUs) | 40,000,000 |
Sales (in MWH or mmBTUs) | 0 |
Net (in MWH or mmBTUs) | 40,000,000 |
Derivative_Instruments_Details3
Derivative Instruments (Details 3) (Not Designated as Hedging Instrument, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | ($62) | ($67) |
Purchase Power Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | -365 | 38 |
Other Operating Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Unrealized Gain (Loss) Recognized | -64 | 3 |
Realized Gain (Loss) Reclassified | 44 | 36 |
Fuel Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 6 | 2 |
Interest Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | -14 | |
Commodity contracts | Revenues | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 6 | -46 |
Commodity contracts | Purchase Power Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | -365 | 38 |
Commodity contracts | Other Operating Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Unrealized Gain (Loss) Recognized | -86 | 11 |
Realized Gain (Loss) Reclassified | 0 | 0 |
Commodity contracts | Fuel Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 6 | 2 |
Commodity contracts | Interest Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 0 | |
FTRs | Revenues | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | -68 | -21 |
FTRs | Purchase Power Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 0 | 0 |
FTRs | Other Operating Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Unrealized Gain (Loss) Recognized | 22 | -8 |
Realized Gain (Loss) Reclassified | 44 | 36 |
FTRs | Fuel Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 0 | 0 |
FTRs | Interest Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 0 | |
Interest rate swaps | Revenues | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 0 | |
Interest rate swaps | Purchase Power Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 0 | |
Interest rate swaps | Other Operating Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Unrealized Gain (Loss) Recognized | 0 | |
Realized Gain (Loss) Reclassified | 0 | |
Interest rate swaps | Fuel Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 0 | |
Interest rate swaps | Interest Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | -14 | |
FES | Commodity contracts | Revenues | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | 6 | -46 |
FES | Commodity contracts | Purchase Power Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | -365 | 38 |
FES | Commodity contracts | Other Operating Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Unrealized Gain (Loss) Recognized | -86 | 11 |
FES | FTRs | Revenues | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | -67 | -19 |
FES | FTRs | Other Operating Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Unrealized Gain (Loss) Recognized | 21 | -8 |
Realized Gain (Loss) Reclassified | 43 | 33 |
FES | Wholesale Sales Contracts | Purchase Power Expense | ||
Effect of derivative instruments on the statements of income and comprehensive income for instruments designated in cash flow hedging relationships and not in hedging relationships | ||
Realized Gain (Loss) Reclassified | $252 |
Derivative_Instruments_Details4
Derivative Instruments (Details 4) (Not Designated as Hedging Instrument, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Outstanding net asset (liability) [Roll Forward] | ||
Outstanding net asset (liability), Beginning Balance | ($202) | ($398) |
Unrealized gain (loss) | -12 | 41 |
Additions | 11 | -3 |
Terminations | 166 | |
Settlements | 39 | 74 |
Outstanding net asset (liability), Ending Balance | -140 | -202 |
NUGs | ||
Outstanding net asset (liability) [Roll Forward] | ||
Outstanding net asset (liability), Beginning Balance | -202 | -254 |
Unrealized gain (loss) | 1 | 23 |
Additions | 0 | 0 |
Terminations | 0 | |
Settlements | 52 | 75 |
Outstanding net asset (liability), Ending Balance | -151 | -202 |
LCAPP | ||
Outstanding net asset (liability) [Roll Forward] | ||
Outstanding net asset (liability), Beginning Balance | 0 | -144 |
Unrealized gain (loss) | 0 | 22 |
Additions | 0 | 0 |
Terminations | 166 | |
Settlements | 0 | 0 |
Outstanding net asset (liability), Ending Balance | 0 | 0 |
Regulated FTRs | ||
Outstanding net asset (liability) [Roll Forward] | ||
Outstanding net asset (liability), Beginning Balance | 0 | 0 |
Unrealized gain (loss) | -13 | -4 |
Additions | 11 | -3 |
Terminations | 0 | |
Settlements | -13 | -1 |
Outstanding net asset (liability), Ending Balance | $11 | $0 |
Derivative_Instruments_Details5
Derivative Instruments (Details Textuals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | ||
Gains included in long-term debt associated with prior fixed-for-floating interest rate swap agreements | $32,000,000 | $44,000,000 |
Unamortized gain (loss) on extinguishment of debt | 17,000,000 | |
Expected adverse change in quoted market prices of derivative instruments | 10.00% | |
Decrease net income due to adverse change in commodity prices | 1,000,000 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 73,000,000 | 120,000,000 |
Period in which LSEs may request direct allocation of FTRs | 2 years | |
Direct allocation of FTRs, cost | 0 | |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 46,000,000 | 100,000,000 |
NUGs | ||
Derivative [Line Items] | ||
Liability position | 151,000,000 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 2,000,000 | 20,000,000 |
FTRs | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 25,000,000 | 0 |
Cash Flow Hedges | ||
Derivative [Line Items] | ||
Unamortized gains or losses associated with designated cash flow hedges | -8,000,000 | 2,000,000 |
Gain (loss) on cash flow hedge expected to be reclassified to earnings in next twelve months | 3,000,000 | |
Unamortized gains or losses associated with prior interest rate hedges | 50,000,000 | 59,000,000 |
Losses to be amortized to interest expenses during next twelve months | -9,000,000 | |
Number of forward starting swap agreements accounted for as a cash flow hedge outstanding | 0 | 0 |
Fair Value Hedging | ||
Derivative [Line Items] | ||
Losses to be amortized to interest expenses during next twelve months | 12,000,000 | |
Reclassifications from long-term debt | 12,000,000 | 19,000,000 |
Number of fixed-for-floating interest rate swap agreements outstanding | 0 | 0 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Number of interest rate swaps outstanding | 0 | 0 |
FES | Commodity contracts | ||
Derivative [Line Items] | ||
Net asset position under commodity derivative contracts | 5,000,000 | |
Collateral posted | 83,000,000 | |
Additional collateral related to commodity derivatives | 5,000,000 | |
FES | FTRs | ||
Derivative [Line Items] | ||
Collateral posted | 5,000,000 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | $14,000,000 |
Capitalization_Details
Capitalization (Details) (USD $) | Dec. 31, 2014 |
Preferred stock and preference stock authorizations | |
Shares Authorized | 5,000,000 |
Par Value | $100 |
Penn | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 1,200,000 |
Par Value | $100 |
CEI | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 4,000,000 |
JCP&L | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 15,600,000 |
ME | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 10,000,000 |
PN | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 11,435,000 |
PE | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 10,000,000 |
Par Value | $0.01 |
WP | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 32,000,000 |
Preference Stock | OE | |
Preferred stock and preference stock authorizations | |
Preference Stock Shares Authorized | 8,000,000 |
Preference Stock | CEI | |
Preferred stock and preference stock authorizations | |
Preference Stock Shares Authorized | 3,000,000 |
Preference Stock | TE | |
Preferred stock and preference stock authorizations | |
Preference Stock Shares Authorized | 5,000,000 |
Preference Stock Par Value, in dollars per share | $25 |
Preferred Stock With Par Value $100 | OE | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 6,000,000 |
Par Value | $100 |
Preferred Stock With Par Value $100 | TE | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 3,000,000 |
Par Value | $100 |
Preferred Stock With Par Value $100 | MP | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 940,000 |
Par Value | $100 |
Preferred Stock With Par Value $25 | OE | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 8,000,000 |
Par Value | $25 |
Preferred Stock With Par Value $25 | TE | |
Preferred stock and preference stock authorizations | |
Shares Authorized | 12,000,000 |
Par Value | $25 |
Capitalization_Details_1
Capitalization (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Capitalization [Line Items] | ||
Unsecured debt | $14,824 | $12,035 |
Capital lease obligations | 160 | 188 |
Unamortized debt premiums (discounts) | -8 | 9 |
Unamortized fair value adjustments | 21 | 44 |
Currently payable long-term debt | -804 | -1,415 |
Total long-term debt and other long-term obligations | 19,176 | 15,831 |
FES | ||
Schedule of Capitalization [Line Items] | ||
Unsecured debt | 2,971 | 2,813 |
Capital lease obligations | 18 | 22 |
Unamortized debt premiums (discounts) | -1 | -1 |
Currently payable long-term debt | -506 | -892 |
Total long-term debt and other long-term obligations | 2,608 | 2,130 |
FMBs | ||
Schedule of Capitalization [Line Items] | ||
FMBs | 3,190 | 3,166 |
FMBs | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 3.34% | |
FMBs | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 9.74% | |
Secured notes - fixed rate | ||
Schedule of Capitalization [Line Items] | ||
Secured notes | 1,793 | 1,804 |
Secured notes - fixed rate | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 0.00% | |
Secured notes - fixed rate | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 7.88% | |
Secured notes - fixed rate | FES | ||
Schedule of Capitalization [Line Items] | ||
Secured notes | 126 | 188 |
Secured notes - fixed rate | FES | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 0.00% | |
Secured notes - fixed rate | FES | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 12.00% | |
Unsecured notes - fixed rate | ||
Schedule of Capitalization [Line Items] | ||
Unsecured debt | 13,532 | 11,076 |
Unsecured notes - fixed rate | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 2.15% | |
Unsecured notes - fixed rate | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 7.70% | |
Unsecured notes - fixed rate | FES | ||
Schedule of Capitalization [Line Items] | ||
Unsecured debt | 2,879 | 2,077 |
Unsecured notes - fixed rate | FES | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 2.15% | |
Unsecured notes - fixed rate | FES | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 6.80% | |
Unsecured notes - variable rate | ||
Schedule of Capitalization [Line Items] | ||
Unsecured debt | 1,292 | 959 |
Unsecured notes - variable rate | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 0.03% | |
Unsecured notes - variable rate | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 1.92% | |
Unsecured notes - variable rate | FES | ||
Schedule of Capitalization [Line Items] | ||
Unsecured debt | $92 | $736 |
Unsecured notes - variable rate | FES | Minimum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 0.03% | |
Unsecured notes - variable rate | FES | Maximum | ||
Schedule of Capitalization [Line Items] | ||
Interest rate (percent) | 0.05% |
Capitalization_Details_2
Capitalization (Details 2) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Sinking fund requirements for FMBs and maturing long-term debt (excluding capital leases and variable rate PCRBs) for the next five years | |
2015 | $769 |
2016 | 1,241 |
2017 | 1,641 |
2018 | 1,687 |
2019 | 2,266 |
FES | |
Sinking fund requirements for FMBs and maturing long-term debt (excluding capital leases and variable rate PCRBs) for the next five years | |
2015 | 501 |
2016 | 416 |
2017 | 163 |
2018 | 501 |
2019 | $322 |
Capitalization_Details_3
Capitalization (Details 3) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Outstanding PCRBs for the next three years | |
2015 | $769 |
2016 | 1,241 |
2017 | 1,641 |
2018 | 1,687 |
2019 | 2,266 |
PCRB | |
Outstanding PCRBs for the next three years | |
2015 | 405 |
2016 | 391 |
2017 | 130 |
2018 | 359 |
2019 | 232 |
FES | |
Outstanding PCRBs for the next three years | |
2015 | 501 |
2016 | 416 |
2017 | 163 |
2018 | 501 |
2019 | 322 |
FES | PCRB | |
Outstanding PCRBs for the next three years | |
2015 | 405 |
2016 | 391 |
2017 | 130 |
2018 | 359 |
2019 | $232 |
Capitalization_Details_4
Capitalization (Details 4) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Schedule of Capitalization [Line Items] | |
Aggregate LOC Amount | $93 |
Annual Fees | 1.65% |
FES | |
Schedule of Capitalization [Line Items] | |
Aggregate LOC Amount | $93 |
Annual Fees | 1.65% |
Capitalization_Details_Textual
Capitalization (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 20, 2015 | Mar. 31, 2014 | Apr. 01, 2014 | Jan. 31, 2015 | Mar. 29, 2014 | Sep. 25, 2014 | Dec. 11, 2014 | 19-May-14 | Dec. 01, 2014 | Jun. 11, 2014 | Apr. 02, 2014 | Nov. 25, 2014 | |
subsidiary | credit_facility | |||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Retained earnings (accumulated deficit) | $2,285,000,000 | $2,590,000,000 | $2,285,000,000 | $2,590,000,000 | ||||||||||||||||||
Dividends declared, in dollars per share | $1.44 | $1.65 | $2.20 | |||||||||||||||||||
Common stock dividends per share paid | $0.36 | $0.36 | $0.36 | $0.36 | $0.55 | $0.55 | $0.55 | |||||||||||||||
FERC-defined equity to total capitalization ratio | 35.00% | |||||||||||||||||||||
Preferred shares shares outstanding | 0 | 0 | 0 | 0 | ||||||||||||||||||
Preference shares outstanding | 0 | 0 | 0 | 0 | ||||||||||||||||||
Loss on debt redemptions | -8,000,000 | -132,000,000 | 0 | |||||||||||||||||||
Number of subsidiaries that issued environmental control bonds | 2 | |||||||||||||||||||||
Environmental control bonds outstanding | 450,000,000 | 472,000,000 | 450,000,000 | 472,000,000 | ||||||||||||||||||
Transition bond outstanding | 168,000,000 | 207,000,000 | 168,000,000 | 207,000,000 | ||||||||||||||||||
Principal default amount specified in debt covenants | 100,000,000 | |||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Dividends declared, in dollars per share | $0.36 | |||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 6,000,000,000 | |||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Number of credit facilities extended | 3 | 3 | ||||||||||||||||||||
Phase In Recovery Bonds | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long-term debt and other long-term obligations | 386,000,000 | 445,000,000 | 386,000,000 | 445,000,000 | ||||||||||||||||||
Loans Payable | Variable Rate Term Loan Due 2019 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Face amount of loan | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||||
AGC | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
FERC-defined equity to total capitalization ratio | 45.00% | |||||||||||||||||||||
Parent Company | Revolving Credit Facility | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase (decrease) in maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||||
Loss on debt redemptions | -5,000,000 | |||||||||||||||||||||
ATSI | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 500,000,000 | 500,000,000 | ||||||||||||||||||||
ATSI | Revolving Credit Facility | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 500,000,000 | 500,000,000 | 100,000,000 | |||||||||||||||||||
ATSI | Senior Notes | 5% Senior Notes Due 2044 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 5.00% | |||||||||||||||||||||
Face amount of loan | 400,000,000 | |||||||||||||||||||||
TrAIL | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 400,000,000 | 400,000,000 | ||||||||||||||||||||
TrAIL | Revolving Credit Facility | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 400,000,000 | 400,000,000 | 200,000,000 | |||||||||||||||||||
TrAIL | Senior Notes | 3.85% Senior Notes Due 2025 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 3.85% | |||||||||||||||||||||
Face amount of loan | 550,000,000 | |||||||||||||||||||||
TrAIL | Senior Notes | 4% Senior Notes Due January 2015 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 4.00% | |||||||||||||||||||||
Debt repurchased | 450,000,000 | |||||||||||||||||||||
FE | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 3,500,000,000 | 3,500,000,000 | ||||||||||||||||||||
FE | Revolving Credit Facility | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase (decrease) in maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||||
FE | Revolving Credit Facility | Subsequent Event | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 3,500,000,000 | |||||||||||||||||||||
FE | Loans Payable | Term Loan Due December 2016 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Face amount of loan | 200,000,000 | 200,000,000 | ||||||||||||||||||||
FES | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Retained earnings (accumulated deficit) | 1,934,000,000 | 2,178,000,000 | 1,934,000,000 | 2,178,000,000 | ||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 1,500,000,000 | 1,500,000,000 | ||||||||||||||||||||
Loss on debt redemptions | -6,000,000 | -103,000,000 | 0 | |||||||||||||||||||
Equity contribution from parent | 500,000,000 | 500,000,000 | 1,500,000,000 | 0 | ||||||||||||||||||
FES | Revolving Credit Facility | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Loss on debt redemptions | -3,000,000 | |||||||||||||||||||||
FES | PCRB | Variable Rate PCRB | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Face amount of loan | 92,000,000 | 92,000,000 | ||||||||||||||||||||
FET | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||||
FET | Revolving Credit Facility | Subsequent Event | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 1,000,000,000 | |||||||||||||||||||||
FET | Senior Notes | Senior Notes, 4.35% due 2024 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 4.35% | |||||||||||||||||||||
Face amount of loan | 600,000,000 | |||||||||||||||||||||
FET | Senior Notes | Senior Notes, 5.45% due 2044 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 5.45% | |||||||||||||||||||||
Face amount of loan | 400,000,000 | |||||||||||||||||||||
FES / AE Supply | Revolving Credit Facility | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Increase (decrease) in maximum borrowing capacity | -1,000,000,000 | -1,000,000,000 | ||||||||||||||||||||
FES / AE Supply | Revolving Credit Facility | Subsequent Event | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 1,500,000,000 | |||||||||||||||||||||
FG | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 3.75% | 3.75% | ||||||||||||||||||||
FG | PCRB | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 3.50% | |||||||||||||||||||||
Amount of debt redeemed | 197,000,000 | 197,000,000 | ||||||||||||||||||||
Maturities of subordinated debt | 50,000,000 | |||||||||||||||||||||
Face amount of loan | 140,100,000 | 57,000,000 | 235,000,000 | 235,000,000 | ||||||||||||||||||
FG | PCRB | PCRB Put Date March 1, 2019 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 3.10% | |||||||||||||||||||||
Face amount of loan | 50,000,000 | |||||||||||||||||||||
FG | PCRB | PCRB Maturity Date May 15, 2019 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 3.00% | |||||||||||||||||||||
Face amount of loan | 90,100,000 | |||||||||||||||||||||
NG | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Amount of debt redeemed | 26,000,000 | |||||||||||||||||||||
NG | PCRB | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 3.50% | 4.00% | 4.00% | |||||||||||||||||||
Amount of debt redeemed | 16,000,000 | 16,000,000 | ||||||||||||||||||||
Face amount of loan | 101,000,000 | 164,000,000 | 182,000,000 | 182,000,000 | ||||||||||||||||||
NG | PCRB | 3.63% PCRB | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 3.63% | |||||||||||||||||||||
Face amount of loan | 45,000,000 | |||||||||||||||||||||
NG | PCRB | PCRB Put Date June 1, 2020 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Face amount of loan | 15,500,000 | |||||||||||||||||||||
NG | PCRB | PCRB Put Date April 1, 2020 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Face amount of loan | 29,500,000 | |||||||||||||||||||||
NG | PCRB | PCRB Put Date May 1, 2020 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 3.95% | |||||||||||||||||||||
Face amount of loan | 56,000,000 | |||||||||||||||||||||
ME | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 300,000,000 | 300,000,000 | ||||||||||||||||||||
ME | Senior Notes | Senior Notes, 4% Due 2025 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 4.00% | |||||||||||||||||||||
Face amount of loan | 250,000,000 | |||||||||||||||||||||
ME | PCRB | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Amount of debt redeemed | 29,000,000 | |||||||||||||||||||||
Maturities of subordinated debt | 150,000,000 | |||||||||||||||||||||
AE Supply | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||||
Return of capital | 500,000,000 | |||||||||||||||||||||
PE | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 150,000,000 | 150,000,000 | ||||||||||||||||||||
PE | FMBs | 4.44% First Mortgage Bond Due November 2024 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 4.44% | |||||||||||||||||||||
Face amount of loan | 200,000,000 | |||||||||||||||||||||
PE | FMBs | First Mortgage Bond Due November 2014 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 5.35% | |||||||||||||||||||||
Amount of debt redeemed | 175,000,000 | |||||||||||||||||||||
PN | Senior Notes | 4.15% Senior Notes Due 2025 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate (percent) | 4.15% | |||||||||||||||||||||
Face amount of loan | 200,000,000 | |||||||||||||||||||||
PN | PCRB | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Amount of debt redeemed | 45,000,000 | |||||||||||||||||||||
Ohio Funding Companies | Phase In Recovery Bonds | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Face amount of loan | 445,000,000 | |||||||||||||||||||||
Penn | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount borrowed under revolving credit facility | 50,000,000 | 50,000,000 | ||||||||||||||||||||
Annual sinking fund requirement for FMB | $8,000,000 | |||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Stock issuance - employee benefits, Shares | 2,474,011 | 412,122 |
ShortTerm_Borrowings_and_Bank_2
Short-Term Borrowings and Bank Lines of Credit (Details) (USD $) | Jan. 31, 2015 | Dec. 31, 2014 |
Subsequent Event | ||
Short-term Debt [Line Items] | ||
Maximum amount borrowed under revolving credit facility | $6,000,000,000 | |
Available Liquidity | 3,904,000,000 | |
Cash, Available Liquidity | 58,000,000 | |
Total Available Liquidity | 3,962,000,000 | |
FirstEnergy | ||
Short-term Debt [Line Items] | ||
Maximum amount borrowed under revolving credit facility | 3,500,000,000 | |
FirstEnergy | Revolving Credit Facility | Subsequent Event | ||
Short-term Debt [Line Items] | ||
Available Liquidity | 1,469,000,000 | |
FES / AE Supply | Revolving Credit Facility | Subsequent Event | ||
Short-term Debt [Line Items] | ||
Available Liquidity | 1,435,000,000 | |
FET | ||
Short-term Debt [Line Items] | ||
Maximum amount borrowed under revolving credit facility | 1,000,000,000 | |
FET | Revolving Credit Facility | Subsequent Event | ||
Short-term Debt [Line Items] | ||
Available Liquidity | 1,000,000,000 | |
Revolving Credit Facility | FirstEnergy | Subsequent Event | ||
Short-term Debt [Line Items] | ||
Maximum amount borrowed under revolving credit facility | 3,500,000,000 | |
Revolving Credit Facility | FES / AE Supply | Subsequent Event | ||
Short-term Debt [Line Items] | ||
Maximum amount borrowed under revolving credit facility | 1,500,000,000 | |
Revolving Credit Facility | FET | Subsequent Event | ||
Short-term Debt [Line Items] | ||
Maximum amount borrowed under revolving credit facility | $1,000,000,000 |
ShortTerm_Borrowings_and_Bank_3
Short-Term Borrowings and Bank Lines of Credit (Details 1) (USD $) | Dec. 31, 2014 |
FE | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | $3,500,000,000 |
Regulatory and Other Short-Term Debt Limitations | 0 |
FES | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 1,500,000,000 |
Regulatory and Other Short-Term Debt Limitations | 0 |
AE Supply | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 1,000,000,000 |
Regulatory and Other Short-Term Debt Limitations | 0 |
FET | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 1,000,000,000 |
Regulatory and Other Short-Term Debt Limitations | 0 |
OE | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 500,000,000 |
Regulatory and Other Short-Term Debt Limitations | 500,000,000 |
CEI | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 500,000,000 |
Regulatory and Other Short-Term Debt Limitations | 500,000,000 |
TE | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 500,000,000 |
Regulatory and Other Short-Term Debt Limitations | 500,000,000 |
JCP&L | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 600,000,000 |
Regulatory and Other Short-Term Debt Limitations | 850,000,000 |
ME | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 300,000,000 |
Regulatory and Other Short-Term Debt Limitations | 500,000,000 |
PN | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 300,000,000 |
Regulatory and Other Short-Term Debt Limitations | 300,000,000 |
WP | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 200,000,000 |
Regulatory and Other Short-Term Debt Limitations | 200,000,000 |
MP | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 500,000,000 |
Regulatory and Other Short-Term Debt Limitations | 500,000,000 |
PE | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 150,000,000 |
Regulatory and Other Short-Term Debt Limitations | 150,000,000 |
ATSI | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 500,000,000 |
Regulatory and Other Short-Term Debt Limitations | 500,000,000 |
Penn | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 50,000,000 |
Regulatory and Other Short-Term Debt Limitations | 50,000,000 |
TrAIL | |
Borrowing sub-limits for each borrower and limitations on short-term indebtedness | |
Revolving Credit Facility Sub-Limit | 400,000,000 |
Regulatory and Other Short-Term Debt Limitations | $400,000,000 |
ShortTerm_Borrowings_and_Bank_4
Short-Term Borrowings and Bank Lines of Credit (Details 2) | Dec. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ||
Weighted average interest rate | 1.96% | 1.80% |
FES | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate | 3.34% | 0.00% |
ShortTerm_Borrowings_and_Bank_5
Short-Term Borrowings and Bank Lines of Credit (Details Textuals) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 29, 2014 | |
money_pool | credit_facility | credit_facility | ||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Short-term borrowings | $1,799,000,000 | $3,404,000,000 | ||||
Loss on debt redemptions | -8,000,000 | -132,000,000 | 0 | |||
Number of money pools | 2 | |||||
Average interest rate for borrowings | 1.96% | 1.80% | ||||
Revolving Credit Facility | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Number of credit facilities extended | 3 | 3 | ||||
Revolving Credit Facility | Maximum | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Term of revolving credit facility, in days | 364 days | |||||
Consolidated debt to total capitalization ratio (percent) | 65.00% | |||||
Parent Company | Term Loan | Variable Rate Term Loan Due 2019 | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Face amount of loan | 1,000,000,000 | 1,000,000,000 | ||||
Parent Company | Term Loan | Variable Rate Term Loan Due 2016 | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Face amount of loan | 200,000,000 | |||||
Parent Company | Revolving Credit Facility | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Increase (decrease) in maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | ||||
Loss on debt redemptions | -5,000,000 | |||||
FES | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Maximum amount borrowed under revolving credit facility | 1,500,000,000 | |||||
Short-term borrowings | 99,000,000 | 4,000,000 | ||||
Loss on debt redemptions | -6,000,000 | -103,000,000 | 0 | |||
Average interest rate for borrowings | 3.34% | 0.00% | ||||
FES | Revolving Credit Facility | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Loss on debt redemptions | -3,000,000 | |||||
FES / AE Supply | Revolving Credit Facility | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Increase (decrease) in maximum borrowing capacity | -1,000,000,000 | -1,000,000,000 | ||||
FirstEnergy | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Maximum amount borrowed under revolving credit facility | 3,500,000,000 | |||||
FirstEnergy | Revolving Credit Facility | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Increase (decrease) in maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | ||||
FET | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Maximum amount borrowed under revolving credit facility | 1,000,000,000 | |||||
FET | Revolving Credit Facility | Maximum | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Consolidated debt to total capitalization ratio (percent) | 75.00% | |||||
ATSI | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Maximum amount borrowed under revolving credit facility | 500,000,000 | |||||
ATSI | Revolving Credit Facility | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Maximum amount borrowed under revolving credit facility | 500,000,000 | 500,000,000 | 100,000,000 | |||
TrAIL | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Maximum amount borrowed under revolving credit facility | 400,000,000 | |||||
TrAIL | Revolving Credit Facility | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Maximum amount borrowed under revolving credit facility | 400,000,000 | 400,000,000 | 200,000,000 | |||
Revolving Credit Facility | Parent and Certain Subsidiaries | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Number of credit facilities | 3 | |||||
Term of credit facility | 5 years | |||||
Available for Issuance of Letters of Credit | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Amount of revolving line of credit | 600,000,000 | |||||
Available for Issuance of Letters of Credit | Minimum | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Cross-default provision for other indebtedness | 100,000,000 | |||||
Available for Issuance of Letters of Credit | FES / AE Supply | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Amount of revolving line of credit | 1,500,000,000 | |||||
Available for Issuance of Letters of Credit | FET | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Amount of revolving line of credit | $225,000,000 | |||||
Money Pool | Maximum | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Term of revolving credit facility, in days | 364 days | |||||
Money Pool | Regulated Companies | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Average interest rate for borrowings | 1.45% | |||||
Money Pool | Unregulated Companies | ||||||
Short-Term Borrowings and Bank Lines of Credit (Textuals) [Abstract] | ||||||
Average interest rate for borrowings | 1.35% |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligations [Line Items] | |||||
Fair value of decommissioning trust assets | $2,341 | $2,201 | $2,341 | $2,201 | |
Changes to the asset retirement obligations | |||||
Beginning Balance | 1,678 | 1,599 | |||
Liabilities settled | -9 | -18 | |||
Accretion | 113 | 115 | |||
Revisions in estimated cash flows | -395 | -193 | 12 | -395 | -18 |
Ending Balance | 1,387 | 1,678 | 1,387 | 1,678 | |
Decrease in ARO | -443 | ||||
FES | |||||
Asset Retirement Obligations [Line Items] | |||||
Fair value of decommissioning trust assets | 1,365 | 1,276 | 1,365 | 1,276 | |
Changes to the asset retirement obligations | |||||
Beginning Balance | 1,015 | 965 | |||
Liabilities settled | -7 | -18 | |||
Accretion | 66 | 71 | |||
Revisions in estimated cash flows | -233 | -171 | 5 | -233 | -3 |
Ending Balance | 841 | 1,015 | 841 | 1,015 | |
FES | LBR | |||||
Changes to the asset retirement obligations | |||||
Revisions in estimated cash flows | 163 | ||||
Asset Retirement Obligation Costs [Member] | TMI-2 | |||||
Changes to the asset retirement obligations | |||||
Decrease in ARO | ($133) |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2007 | Mar. 31, 2014 | Oct. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Aug. 24, 2012 | Sep. 03, 2013 | Dec. 22, 2011 | Dec. 31, 2008 | Mar. 19, 2014 | Jan. 27, 2014 | 4-May-14 | Aug. 07, 2013 | Apr. 13, 2012 | Dec. 31, 2009 | Sep. 30, 2013 | Dec. 31, 2010 | Aug. 04, 2014 | Feb. 03, 2015 | Dec. 02, 2014 | Aug. 29, 2014 | Apr. 30, 2014 | Nov. 03, 2014 | Oct. 31, 2006 | Dec. 24, 2014 | Aug. 31, 2011 | Oct. 06, 2009 | Feb. 22, 2013 | Nov. 30, 2012 | Jan. 08, 2015 | Oct. 22, 2014 | Feb. 24, 2014 | Sep. 30, 2014 | Feb. 06, 2013 | |
entity | kv | proceeding | waiver | |||||||||||||||||||||||||||||||||||
filing | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Interest coverage, amount outstanding | $1,000,000 | $1,000,000 | ||||||||||||||||||||||||||||||||||||
Amortization of regulatory asset, net | 12,000,000 | 539,000,000 | -68,000,000 | |||||||||||||||||||||||||||||||||||
Asset Impairment Charges | 473,000,000 | 0 | 795,000,000 | 0 | ||||||||||||||||||||||||||||||||||
Regional Enforcement Entities | 8 | |||||||||||||||||||||||||||||||||||||
FERC | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Power threshold for cost methodology | 500 | |||||||||||||||||||||||||||||||||||||
Denied Recovery Charges of Exit Fees | 78,800,000 | 78,800,000 | ||||||||||||||||||||||||||||||||||||
FERC | PJM Capacity | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Number of Filings Submitted | 2 | |||||||||||||||||||||||||||||||||||||
Public Utilities, Number of Waivers Filed | 1 | |||||||||||||||||||||||||||||||||||||
FERC | PJM Capacity | Maximum | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Plant generation capacity | 2,000 | |||||||||||||||||||||||||||||||||||||
PJM | FERC | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Compliance Filing, Hybrid Methodology, Beneficiary Pays Cost Allocation | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||||||
Compliance Filing, Hybrid Methodology, Postage Stamp Cost Allocation | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||||||
FES | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Equity contribution from parent | 500,000,000 | 1,500,000,000 | 0 | 500,000,000 | ||||||||||||||||||||||||||||||||||
Loans to affiliated companies, net | 0 | 276,000,000 | 107,000,000 | |||||||||||||||||||||||||||||||||||
AE Supply | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Cash consideration received in asset swap transaction | 1,100,000,000 | |||||||||||||||||||||||||||||||||||||
Assumption of pollution control note | 73,500,000 | |||||||||||||||||||||||||||||||||||||
MP | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Asset Impairment Charges | 322,000,000 | |||||||||||||||||||||||||||||||||||||
Regulatory liability | 23,000,000 | |||||||||||||||||||||||||||||||||||||
PATH | FERC | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Regulatory Asset, Cost Recovery, Proposed Return on Equity | 10.90% | |||||||||||||||||||||||||||||||||||||
Base Return On Equity | 10.40% | |||||||||||||||||||||||||||||||||||||
Return On Equity Granted For Regional Transmission Organization Participation | 0.50% | |||||||||||||||||||||||||||||||||||||
Remaining Recovery Period of Regulatory Assets | 5 years | |||||||||||||||||||||||||||||||||||||
PATH-Allegheny | FERC | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Cost recovery, PP&E reclassified to Regulatory Assets | 62,000,000 | |||||||||||||||||||||||||||||||||||||
Path-WV | FERC | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Cost recovery, PP&E reclassified to Regulatory Assets | 59,000,000 | |||||||||||||||||||||||||||||||||||||
FES and AE Supply | FERC | FTR Underfunding Complaint | Minimum | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Revenues Lost of Which the Entity is Entitled | 94,000,000 | |||||||||||||||||||||||||||||||||||||
MARYLAND | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Proposed electric consumption reduction percentage | 10.00% | |||||||||||||||||||||||||||||||||||||
Proposed electric demand reduction percentage | 15.00% | |||||||||||||||||||||||||||||||||||||
Expenditures for cost recovery program | 64,000,000 | 101,000,000 | ||||||||||||||||||||||||||||||||||||
Recovery period for expenditures for cost recovery program | 3 years | 5 years | ||||||||||||||||||||||||||||||||||||
Maximum penalty assessed, in dollars per day per violation | 25,000 | |||||||||||||||||||||||||||||||||||||
Expected infrastructure investments | 2,700,000,000 | |||||||||||||||||||||||||||||||||||||
Expected infrastructure investments, period | 15 years | |||||||||||||||||||||||||||||||||||||
NEW JERSEY | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number of supply components | 2 | 2 | ||||||||||||||||||||||||||||||||||||
Number of BGS | 1 | 1 | ||||||||||||||||||||||||||||||||||||
Requested approval for increase in revenues | 603,000,000 | 31,000,000 | ||||||||||||||||||||||||||||||||||||
NEW JERSEY | Subsequent Event | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Recommended Annual Rate Decrease | 107,500,000 | |||||||||||||||||||||||||||||||||||||
NEW JERSEY | NJBPU | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Requested increase in revenues | 580,000,000 | |||||||||||||||||||||||||||||||||||||
NEW JERSEY | JCP&L | Rate Counsel | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Recommend Reduction in Base Rates for Electric Service | 214,900,000 | |||||||||||||||||||||||||||||||||||||
NEW JERSEY | JCP&L | NJBPU | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Disallowed recovery costs | 8,000,000 | |||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Recovery of Deferred Costs, Allowed Amount | 736,000,000 | |||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Recovery of Deferred Costs | 744,000,000 | |||||||||||||||||||||||||||||||||||||
Recommend Reduction in Base Rates for Electric Service | 207,400,000 | |||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Revision of Debt Rate | 5.93% | |||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 9,100,000 | |||||||||||||||||||||||||||||||||||||
Allowed CTA Revenue Adjustment | 5,000,000 | |||||||||||||||||||||||||||||||||||||
OHIO | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Generation discount for low income customers | 6.00% | |||||||||||||||||||||||||||||||||||||
Recovery Period | 5 years | |||||||||||||||||||||||||||||||||||||
Costs avoided by customers | 360,000,000 | |||||||||||||||||||||||||||||||||||||
ESP Extension Term | 2 years | |||||||||||||||||||||||||||||||||||||
Generation supply auction period, after approval | 3 years | |||||||||||||||||||||||||||||||||||||
Economic Development and Assistance Plan, Term | 3 years | |||||||||||||||||||||||||||||||||||||
Proposed Purchase Power Agreement, Term | 15 years | |||||||||||||||||||||||||||||||||||||
Annual revenue cap for rider | 30,000,000 | |||||||||||||||||||||||||||||||||||||
Generation supply auction period, before approval | 1 year | |||||||||||||||||||||||||||||||||||||
Utilities required to reduce peak demand | 1.00% | |||||||||||||||||||||||||||||||||||||
Portfolio Plan, Estimated Cost | 250,000,000 | 250,000,000 | ||||||||||||||||||||||||||||||||||||
Portion of Revenue Obtained to be Received | 20.00% | |||||||||||||||||||||||||||||||||||||
Credit to Non-Shopping Customers | 43,400,000 | |||||||||||||||||||||||||||||||||||||
OHIO | Annually 2017 Through 2020 | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Utilities required to additionally reduce peak demand | 0.75% | |||||||||||||||||||||||||||||||||||||
OHIO | Year 2014 | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Annual energy savings | 2,237,000 | |||||||||||||||||||||||||||||||||||||
OHIO | Annually Through 2018 | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Utilities required to additionally reduce peak demand | 0.75% | |||||||||||||||||||||||||||||||||||||
OHIO | PUCO | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number of renewable energy auctions | 1 | |||||||||||||||||||||||||||||||||||||
Amortization of regulatory asset, net | 51,000,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Marginal Transmission Refund Period | 29 months | |||||||||||||||||||||||||||||||||||||
Marginal transmission losses | 254,000,000 | |||||||||||||||||||||||||||||||||||||
Asset Impairment Charges | 254,000,000 | |||||||||||||||||||||||||||||||||||||
Number of Requests For Proposal | 1 | |||||||||||||||||||||||||||||||||||||
Request for Proposal, Project Term | 2 years | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | Three Month Period | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Energy Contract, Term | 3 months | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | Twelve Month Period | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Energy Contract, Term | 12 months | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | Twenty-Four Month Period | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Energy Contract, Term | 24 months | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | Forty-Eight Month Period | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Energy Contract, Term | 48 months | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | Unfavorable Regulatory Action | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Statutory penalty, maximum | 234,000,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | ME | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 151,900,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | ME | Subsequent Event | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 89,300,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | PN | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 119,800,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | PN | Subsequent Event | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 90,800,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | Penn | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 28,500,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | Penn | Subsequent Event | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 15,900,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | WP | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 115,500,000 | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA | WP | Subsequent Event | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 96,800,000 | |||||||||||||||||||||||||||||||||||||
WEST VIRGINIA | MP and PE | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 65,800,000 | 104,000,000 | ||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 5.70% | 9.90% | ||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Surcharge, Amount | 48,000,000 | |||||||||||||||||||||||||||||||||||||
Utilities Operating Expense, Under-recovered Balance | 51,600,000 | 14,200,000 | 14,200,000 | |||||||||||||||||||||||||||||||||||
Public Utilities, Approved Rate Increase, Deferred Amount | 16,800,000 | |||||||||||||||||||||||||||||||||||||
WEST VIRGINIA | MP and PE | WVPSC | Rate Case | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Recovery Period | 5 years | |||||||||||||||||||||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 15,000,000 | |||||||||||||||||||||||||||||||||||||
Deferred Storm and Property Reserve Deficiency, Noncurrent | 46,000,000 | |||||||||||||||||||||||||||||||||||||
WEST VIRGINIA | MP and PE | WVPSC | ENEC | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Number of issues not settled | 2 | |||||||||||||||||||||||||||||||||||||
Public Utilities, Approved Rate Increase, Deferred Period | 1 year | |||||||||||||||||||||||||||||||||||||
Public Utilities, Approved Rate Increase, Deferred Amount, Carrying Costs | 4.00% | |||||||||||||||||||||||||||||||||||||
Review Period | 2 years | |||||||||||||||||||||||||||||||||||||
California Claims Matters | FERC | ||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ||||||||||||||||||||||||||||||||||||||
Settlement proposal claims | $190,000,000 | |||||||||||||||||||||||||||||||||||||
Court proceedings from filed claims | 1 |
Commitments_Guarantees_and_Con2
Commitments, Guarantees and Contingencies (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | $1,044 |
Split Rating (One rating agency's rating below investment grade) | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 657 |
BB Plus/BA1 Credit Ratings | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 697 |
FES | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 886 |
FES | Split Rating (One rating agency's rating below investment grade) | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 603 |
FES | BB Plus/BA1 Credit Ratings | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 643 |
AE Supply | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 72 |
AE Supply | Split Rating (One rating agency's rating below investment grade) | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 6 |
AE Supply | BB Plus/BA1 Credit Ratings | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 6 |
Utilities | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 86 |
Utilities | Split Rating (One rating agency's rating below investment grade) | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | 48 |
Utilities | BB Plus/BA1 Credit Ratings | |
Guarantor Obligations [Line Items] | |
Maximum exposure under collateral provisions | $48 |
Commitments_Guarantees_and_Con3
Commitments, Guarantees and Contingencies (Details Textuals) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Oct. 10, 2013 | Oct. 03, 2013 | Mar. 28, 2013 | Feb. 09, 2015 | Oct. 23, 2014 | Dec. 31, 2013 | Jul. 01, 2014 | Apr. 19, 2013 | Dec. 31, 2011 | Nov. 12, 2014 | Apr. 30, 2014 | Apr. 13, 2012 | Aug. 13, 2012 | 2-May-11 | Feb. 13, 2015 | |
Nuclear_Power_Plant | IndividualsInAComplaint | IndividualsInAComplaint | option | mi | lb | ||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Liability assessed with respect to single nuclear incident | $13,600,000,000 | ||||||||||||||||||
Plants licensed to operate | 104 | ||||||||||||||||||
Portion of insurance coverage of private insurer included in single nuclear incident | 375,000,000 | ||||||||||||||||||
Portion of insurance coverage by industry retrospective rating plan | 13,200,000,000 | ||||||||||||||||||
Losses in excess of private insurance contributed for each nuclear unit license | 127,000,000 | ||||||||||||||||||
Losses in excess of private insurance contributed for each nuclear unit license per unit | 19,000,000 | ||||||||||||||||||
Nuclear incidence liability per incident of parent and subsidiary companys based on their present nuclear ownership and leasehold interests | 509,000,000 | ||||||||||||||||||
Nuclear incident liability not more than in any one year per incident of parent and subsidiary companies based on their present nuclear ownership and leasehold interests | 76,000,000 | ||||||||||||||||||
Aggregate indemnity | 1,960,000,000 | ||||||||||||||||||
Maximum aggregate assessments for incidents at any covered nuclear facility | 14,000,000 | ||||||||||||||||||
Coverage of decontamination costs | 2,750,000,000 | ||||||||||||||||||
Retrospective assessments liabilities | 74,000,000 | ||||||||||||||||||
Insurance coverage for replacement power costs | 1,060,000,000 | ||||||||||||||||||
Environmental plan, submission period | 30 days | ||||||||||||||||||
Outstanding guarantees and other assurances aggregated | 4,000,000,000 | ||||||||||||||||||
Repayments of senior secured term loan facility | 1,759,000,000 | 3,600,000,000 | 940,000,000 | ||||||||||||||||
Number of treatment options | 8 | ||||||||||||||||||
Number of preferred treatment options | 4 | ||||||||||||||||||
Renewal cycle of waste water discharge permit | 5 years | ||||||||||||||||||
Proposed sulfate impairment designation, length | 68 | ||||||||||||||||||
Nuclear plant decommissioning trusts | 2,341,000,000 | 2,201,000,000 | 2,201,000,000 | ||||||||||||||||
ICG Litigation | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Gain contingency, damages denied | 15,500,000 | ||||||||||||||||||
Year 2020 | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Reduction in power plants carbon pollution, (percent) | 17.00% | ||||||||||||||||||
Clean Water Act | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Annual percentage that fish impingement should be reduced to, per CWA | 12.00% | ||||||||||||||||||
TMDL limit development period | 5 years | ||||||||||||||||||
Regulation of Waste Disposal | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Number of individuals behalf of which complaint filed | 61 | ||||||||||||||||||
Civil penalties | 800,000 | ||||||||||||||||||
Bond closure and post closure period | 45 years | ||||||||||||||||||
Period of time to implement plan | 12 years | ||||||||||||||||||
Accrual for environmental loss contingencies | 125,000,000 | ||||||||||||||||||
Environmental liabilities former gas facilities | 85,000,000 | ||||||||||||||||||
Regulation of Waste Disposal | Subsequent Event | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Number of individuals behalf of which complaint filed | 26 | ||||||||||||||||||
Nuclear Plant Matters | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Nuclear plant decommissioning trusts | 2,300,000,000 | ||||||||||||||||||
Parental guarantee associated with the funding of decommissioning costs | 155,000,000 | ||||||||||||||||||
Additions to parental guarantee associated with funding of decommissioning costs | 23,000,000 | ||||||||||||||||||
Renewal length of operating license | 20 years | ||||||||||||||||||
Caa Compliance | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Loss in period | 133,000,000 | ||||||||||||||||||
National Ambient Air Quality Standards | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Capping of SO2 emissions (In Tons) | 2,500,000 | ||||||||||||||||||
Capping of NOx emissions (In Tons) | 1,300,000 | ||||||||||||||||||
Capping of SO2 Emissions Under CSAPR | 2,400,000 | ||||||||||||||||||
Capping of NOx emissions under CSAPR | 1,200,000 | ||||||||||||||||||
National Ambient Air Quality Standards | CAIR | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Number of phases under the EPAbs CAIR for reductions of Sulfur Dioxide and Mono-Nitrogen Oxides | 2 | ||||||||||||||||||
National Ambient Air Quality Standards | CSAPR | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Period of delay in implementation of new regulation | 3 years | ||||||||||||||||||
Number of phases under the EPAbs CAIR for reductions of Sulfur Dioxide and Mono-Nitrogen Oxides | 2 | ||||||||||||||||||
Hazardous Air Pollutant Emissions | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Potential cost of compliance, MATS | 370,000,000 | ||||||||||||||||||
Climate Change | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Reduction in air emissions and compliance | 25.00% | ||||||||||||||||||
Reduction in GHG emissions between 2005 and 2012 (percent) | 10.00% | ||||||||||||||||||
Energy from renewable sources (percent) | 20.00% | ||||||||||||||||||
Proposed emissions standard, other natural gas fired units | 1,100 | ||||||||||||||||||
Proposed emissions standard, fossil fuel fired units | 1,100 | ||||||||||||||||||
Proposed emissions standard, large natural gas fired units | 1,000 | ||||||||||||||||||
Senior Secured Term Loan | Senior Loans | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Guarantor obligations, guarantee fee receivable, percentage, remainder of fiscal year | 4.00% | ||||||||||||||||||
Guarantor obligations, guarantee fee receivable, percentage, next twelve months | 5.00% | ||||||||||||||||||
Competitive Energy Services | Caa Compliance | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Loss in period | 56,000,000 | ||||||||||||||||||
Competitive Energy Services | Hazardous Air Pollutant Emissions | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Potential cost of compliance, MATS | 178,000,000 | ||||||||||||||||||
Regulated Distribution | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Company posted collateral related to net liability positions | 1,000,000 | ||||||||||||||||||
Regulated Distribution | Caa Compliance | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Loss in period | 77,000,000 | ||||||||||||||||||
Regulated Distribution | Hazardous Air Pollutant Emissions | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Potential cost of compliance, MATS | 192,000,000 | ||||||||||||||||||
FES | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Company posted collateral related to net liability positions | 175,000,000 | ||||||||||||||||||
Potential collateral posted related to net liability positions | 24,000,000 | ||||||||||||||||||
Repayments of senior secured term loan facility | 816,000,000 | 1,202,000,000 | 429,000,000 | ||||||||||||||||
Nuclear plant decommissioning trusts | 1,365,000,000 | 1,276,000,000 | 1,276,000,000 | ||||||||||||||||
Global Holding | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Senior secured term loan facility, term | 3 years | ||||||||||||||||||
Global Holding | Senior Secured Term Loan | Senior Loans | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
New syndicated senior secured term loan facility | 350,000,000 | ||||||||||||||||||
Global Holding | Senior Secured Term Loan | Senior Loans | Signal Peak, Global Rail and Affiliates | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Investment ownership percentage | 69.99% | ||||||||||||||||||
Signal Peak and Global Rail | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Senior secured term loan facility, term | 2 years | ||||||||||||||||||
Signal Peak and Global Rail | Senior Secured Term Loan | Senior Loans | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Repayments of senior secured term loan facility | 350,000,000 | ||||||||||||||||||
FEV | Senior Secured Term Loan | Senior Loans | Signal Peak | Global Holding | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Investment ownership percentage | 33.33% | ||||||||||||||||||
WMB Marketing Ventures, LLC | Senior Secured Term Loan | Senior Loans | Signal Peak | Global Holding | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Investment ownership percentage | 33.33% | ||||||||||||||||||
FGCO | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Repayments of senior secured term loan facility | 269,000,000 | 364,000,000 | 288,000,000 | ||||||||||||||||
Nuclear plant decommissioning trusts | 0 | 0 | 0 | ||||||||||||||||
FGCO | Caa Compliance | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Number of complaints filed against FGCO | 3 | ||||||||||||||||||
Number of complaints seek enjoin plant | 2 | ||||||||||||||||||
FGCO | Caa Compliance | Claim One | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Number of complaints seek enjoin plant | 1 | ||||||||||||||||||
Number of individuals behalf of which complaint filed | 21 | ||||||||||||||||||
FGCO | Caa Compliance | Claim Two | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Number of named plaintiffs as class representatives | 8 | ||||||||||||||||||
AE Supply and MP | ICG Litigation | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Verdict in favor | 104,000,000 | ||||||||||||||||||
Amount for which verdict entered for future damages | 90,000,000 | ||||||||||||||||||
Amount for replacement coal and interest | 14,000,000 | ||||||||||||||||||
Gain contingency, unrecorded amount | 14,000,000 | ||||||||||||||||||
Value of damages denied | 90,000,000 | ||||||||||||||||||
AE Supply and MP | ICG Litigation | Subsequent Event | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Amount for which verdict entered for future damages | 11,300,000 | ||||||||||||||||||
NGC | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Nuclear incidence liability per incident of parent and subsidiary companys based on their present nuclear ownership and leasehold interests | 501,000,000 | ||||||||||||||||||
Nuclear incident liability not more than in any one year per incident of parent and subsidiary companies based on their present nuclear ownership and leasehold interests | 75,000,000 | ||||||||||||||||||
Aggregate indemnity | 1,930,000,000 | ||||||||||||||||||
Maximum aggregate assessments for incidents at any covered nuclear facility | 13,000,000 | ||||||||||||||||||
Retrospective assessments liabilities | 72,000,000 | ||||||||||||||||||
Parental Guarantees | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Outstanding guarantees and other assurances aggregated | 712,000,000 | ||||||||||||||||||
Subsidiaries' Guarantees | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Outstanding guarantees and other assurances aggregated | 2,338,000,000 | ||||||||||||||||||
Other Guarantees | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Outstanding guarantees and other assurances aggregated | 649,000,000 | ||||||||||||||||||
Minimum | Clean Water Act | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Maximum capital investment required to install technology to meet TDS and Sulfate limits | 150,000,000 | ||||||||||||||||||
Minimum | Climate Change | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Reduction in emissions (percent) | 26.00% | ||||||||||||||||||
Minimum | State and Local Agencies | Caa Compliance | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Potential MATS extension period | 1 year | ||||||||||||||||||
Maximum | Clean Water Act | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Maximum capital investment required to install technology to meet TDS and Sulfate limits | 300,000,000 | ||||||||||||||||||
Maximum | Climate Change | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Reduction in emissions (percent) | 28.00% | ||||||||||||||||||
Maximum | State and Local Agencies | Caa Compliance | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Potential MATS extension period | 2 years | ||||||||||||||||||
Transportation Commitment | Caa Compliance | |||||||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||||||
Potential cost of compliance, MATS | 70,000,000 | ||||||||||||||||||
Settlement agreement, consideration | $67,000,000 | ||||||||||||||||||
Mass remaining under contract | 6,000,000 | ||||||||||||||||||
Number of agreements | 1 |
Transactions_With_Affiliated_C2
Transactions With Affiliated Companies (Details) (FES, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Income: | |||
Interest income from FE | $3 | $2 | $2 |
Interest Expense: | |||
Interest expense to affiliates | 3 | 4 | 10 |
Interest expense to FE | 4 | 6 | 1 |
Electric sales to affiliates | |||
REVENUES: | |||
Revenues | 861 | 652 | 515 |
Other | |||
REVENUES: | |||
Revenues | 6 | 6 | 16 |
Purchased power from affiliates | |||
EXPENSES: | |||
Expenses | 271 | 486 | 451 |
Fuel | |||
EXPENSES: | |||
Expenses | 1 | 0 | 2 |
Support services | |||
EXPENSES: | |||
Expenses | $619 | $619 | $570 |
Supplemental_Guarantor_Informa2
Supplemental Guarantor Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Consolidating Statements of Income | ||||||||||||||
Revenues | $15,049 | [1] | $14,892 | [1] | $15,255 | [1] | ||||||||
OPERATING EXPENSES: | ||||||||||||||
Fuel | 2,280 | 2,496 | 2,471 | |||||||||||
Purchased power | 4,716 | 3,963 | 4,246 | |||||||||||
Other operating expenses | 901 | 858 | 1,021 | 1,182 | 948 | 877 | 886 | 882 | 3,962 | 3,593 | 3,760 | |||
Pension and OPEB mark-to-market adjustment | 835 | 0 | 0 | 0 | -256 | 0 | 0 | 0 | 835 | -256 | 609 | |||
Provision for depreciation | 316 | 308 | 302 | 294 | 293 | 316 | 300 | 293 | 1,220 | 1,202 | 1,119 | |||
General taxes | 962 | 978 | 984 | |||||||||||
Total operating expenses | 13,987 | 13,310 | 13,121 | |||||||||||
OPERATING INCOME (LOSS) | -337 | 716 | 292 | 391 | 387 | 508 | 42 | 645 | 1,062 | 1,582 | 2,134 | |||
OTHER INCOME (EXPENSE): | ||||||||||||||
Loss on debt redemptions | -8 | -132 | 0 | |||||||||||
Investment income | 72 | 33 | 77 | |||||||||||
Interest expense | -1,073 | -1,016 | -1,001 | |||||||||||
Capitalized financing costs | 118 | 103 | 90 | |||||||||||
Total other expense | -891 | -1,012 | -834 | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 171 | 570 | 1,300 | |||||||||||
INCOME TAXES (BENEFITS) | -268 | 152 | 26 | 48 | 66 | 77 | -62 | 114 | -42 | 195 | 545 | |||
INCOME FROM CONTINUING OPERATIONS | -306 | 333 | 64 | 122 | 142 | 209 | -168 | 192 | 213 | 375 | 755 | |||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | 86 | 0 | 9 | 4 | 4 | 86 | 17 | 16 | |||
NET INCOME (LOSS) | -306 | 333 | 64 | 208 | 142 | 218 | -164 | 196 | 299 | 392 | 771 | |||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||
NET INCOME | -306 | 333 | 64 | 208 | 142 | 218 | -164 | 196 | 299 | 392 | 771 | |||
Pension and OPEB prior service costs | -76 | -160 | -115 | |||||||||||
Amortized loss (gain) on derivative hedges | -2 | 3 | 1 | |||||||||||
Change in unrealized gain on available-for-sale securities | 26 | -10 | -6 | |||||||||||
Other comprehensive income (loss) | -52 | -167 | -120 | |||||||||||
Income taxes (benefits) on other comprehensive income (loss) | -14 | -66 | -79 | |||||||||||
Other comprehensive loss, net of tax | -38 | -101 | -41 | |||||||||||
COMPREHENSIVE INCOME (LOSS) | 261 | 291 | 730 | |||||||||||
Tax effect of discontinued operations | 69 | 9 | 8 | |||||||||||
FES | ||||||||||||||
Consolidating Statements of Income | ||||||||||||||
Revenues | 5,990 | 6,068 | 5,804 | |||||||||||
OPERATING EXPENSES: | ||||||||||||||
Fuel | 0 | 0 | 0 | |||||||||||
Other operating expenses | 790 | 635 | 434 | |||||||||||
Pension and OPEB mark-to-market adjustment | 19 | -8 | -2 | |||||||||||
Provision for depreciation | 10 | 6 | 4 | |||||||||||
General taxes | 72 | 80 | 79 | |||||||||||
Total operating expenses | 7,578 | 7,187 | 6,494 | |||||||||||
OPERATING INCOME (LOSS) | -1,588 | -1,119 | -690 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Loss on debt redemptions | -3 | -103 | ||||||||||||
Investment income | 7 | 5 | 2 | |||||||||||
Miscellaneous income, including net income from equity investees | 786 | 846 | 1,284 | |||||||||||
Capitalized financing costs | 0 | 1 | 0 | |||||||||||
Total other expense | 725 | 673 | 1,175 | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -863 | -446 | 485 | |||||||||||
INCOME TAXES (BENEFITS) | -619 | -506 | 298 | |||||||||||
INCOME FROM CONTINUING OPERATIONS | -244 | 60 | 187 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | |||||||||||
NET INCOME (LOSS) | -244 | 60 | 187 | |||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||
NET INCOME | -244 | 60 | 187 | |||||||||||
Pension and OPEB prior service costs | -6 | -15 | 6 | |||||||||||
Amortized loss (gain) on derivative hedges | -10 | -6 | -9 | |||||||||||
Change in unrealized gain on available-for-sale securities | 21 | -8 | -5 | |||||||||||
Other comprehensive income (loss) | 5 | -29 | -8 | |||||||||||
Income taxes (benefits) on other comprehensive income (loss) | 2 | -11 | -4 | |||||||||||
Other comprehensive loss, net of tax | 3 | -18 | -4 | |||||||||||
COMPREHENSIVE INCOME (LOSS) | -241 | 42 | 183 | |||||||||||
FES | Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 3,920 | 4,148 | 4,098 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | -12 | -13 | -18 | |||||||||||
FES | Non-Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 2,767 | 2,326 | 1,881 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | -53 | -63 | -93 | |||||||||||
FGCO | ||||||||||||||
Consolidating Statements of Income | ||||||||||||||
Revenues | 1,902 | 2,399 | 2,100 | |||||||||||
OPERATING EXPENSES: | ||||||||||||||
Fuel | 1,055 | 1,056 | 1,077 | |||||||||||
Other operating expenses | 269 | 275 | 334 | |||||||||||
Pension and OPEB mark-to-market adjustment | 90 | -37 | 52 | |||||||||||
Provision for depreciation | 119 | 127 | 116 | |||||||||||
General taxes | 31 | 34 | 36 | |||||||||||
Total operating expenses | 1,568 | 1,462 | 1,621 | |||||||||||
OPERATING INCOME (LOSS) | 334 | 937 | 479 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Loss on debt redemptions | -1 | 0 | ||||||||||||
Investment income | 8 | 1 | 15 | |||||||||||
Miscellaneous income, including net income from equity investees | 4 | 24 | 20 | |||||||||||
Capitalized financing costs | 4 | 2 | 4 | |||||||||||
Total other expense | -92 | -82 | -78 | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 242 | 855 | 401 | |||||||||||
INCOME TAXES (BENEFITS) | 87 | 365 | -269 | |||||||||||
INCOME FROM CONTINUING OPERATIONS | 155 | 490 | 670 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 116 | 14 | 14 | |||||||||||
NET INCOME (LOSS) | 271 | 504 | 684 | |||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||
NET INCOME | 271 | 504 | 684 | |||||||||||
Pension and OPEB prior service costs | -5 | -13 | 6 | |||||||||||
Amortized loss (gain) on derivative hedges | 0 | 0 | 0 | |||||||||||
Change in unrealized gain on available-for-sale securities | 0 | 0 | 0 | |||||||||||
Other comprehensive income (loss) | -5 | -13 | 6 | |||||||||||
Income taxes (benefits) on other comprehensive income (loss) | -2 | -5 | 1 | |||||||||||
Other comprehensive loss, net of tax | -3 | -8 | 5 | |||||||||||
COMPREHENSIVE INCOME (LOSS) | 268 | 496 | 689 | |||||||||||
FGCO | Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 0 | 0 | 0 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | -6 | -5 | -7 | |||||||||||
FGCO | Non-Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 4 | 7 | 6 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | -101 | -104 | -110 | |||||||||||
Nuclear Generation Corp | ||||||||||||||
Consolidating Statements of Income | ||||||||||||||
Revenues | 2,172 | 1,634 | 1,895 | |||||||||||
OPERATING EXPENSES: | ||||||||||||||
Fuel | 198 | 206 | 210 | |||||||||||
Other operating expenses | 527 | 529 | 539 | |||||||||||
Pension and OPEB mark-to-market adjustment | 188 | -36 | 116 | |||||||||||
Provision for depreciation | 193 | 178 | 157 | |||||||||||
General taxes | 25 | 24 | 21 | |||||||||||
Total operating expenses | 1,402 | 1,167 | 1,301 | |||||||||||
OPERATING INCOME (LOSS) | 770 | 467 | 594 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Loss on debt redemptions | -2 | 0 | ||||||||||||
Investment income | 61 | 25 | 67 | |||||||||||
Miscellaneous income, including net income from equity investees | 0 | 0 | 0 | |||||||||||
Capitalized financing costs | 30 | 36 | 33 | |||||||||||
Total other expense | 33 | 1 | 46 | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 803 | 468 | 640 | |||||||||||
INCOME TAXES (BENEFITS) | 298 | 135 | 62 | |||||||||||
INCOME FROM CONTINUING OPERATIONS | 505 | 333 | 578 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | |||||||||||
NET INCOME (LOSS) | 505 | 333 | 578 | |||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||
NET INCOME | 505 | 333 | 578 | |||||||||||
Pension and OPEB prior service costs | 0 | 0 | 0 | |||||||||||
Amortized loss (gain) on derivative hedges | 0 | 0 | 0 | |||||||||||
Change in unrealized gain on available-for-sale securities | 21 | -8 | -5 | |||||||||||
Other comprehensive income (loss) | 21 | -8 | -5 | |||||||||||
Income taxes (benefits) on other comprehensive income (loss) | 8 | -3 | -2 | |||||||||||
Other comprehensive loss, net of tax | 13 | -5 | -3 | |||||||||||
COMPREHENSIVE INCOME (LOSS) | 518 | 328 | 575 | |||||||||||
Nuclear Generation Corp | Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 271 | 266 | 258 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | -4 | -6 | -4 | |||||||||||
Nuclear Generation Corp | Non-Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 0 | 0 | 0 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | -52 | -54 | -50 | |||||||||||
Eliminations | ||||||||||||||
Consolidating Statements of Income | ||||||||||||||
Revenues | -3,920 | -3,928 | -3,905 | |||||||||||
OPERATING EXPENSES: | ||||||||||||||
Fuel | 0 | 0 | 0 | |||||||||||
Other operating expenses | 49 | 48 | 49 | |||||||||||
Pension and OPEB mark-to-market adjustment | 0 | 0 | 0 | |||||||||||
Provision for depreciation | -3 | -5 | -5 | |||||||||||
General taxes | 0 | 0 | 0 | |||||||||||
Total operating expenses | -3,874 | -3,885 | -3,861 | |||||||||||
OPERATING INCOME (LOSS) | -46 | -43 | -44 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Loss on debt redemptions | 0 | 0 | ||||||||||||
Investment income | -15 | -15 | -18 | |||||||||||
Miscellaneous income, including net income from equity investees | -784 | -842 | -1,269 | |||||||||||
Capitalized financing costs | 0 | 0 | 0 | |||||||||||
Total other expense | -724 | -782 | -1,206 | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -770 | -825 | -1,250 | |||||||||||
INCOME TAXES (BENEFITS) | 6 | 12 | 12 | |||||||||||
INCOME FROM CONTINUING OPERATIONS | -776 | -837 | -1,262 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | |||||||||||
NET INCOME (LOSS) | -776 | -837 | -1,262 | |||||||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||
NET INCOME | -776 | -837 | -1,262 | |||||||||||
Pension and OPEB prior service costs | 5 | 13 | -6 | |||||||||||
Amortized loss (gain) on derivative hedges | 0 | 0 | 0 | |||||||||||
Change in unrealized gain on available-for-sale securities | -21 | 8 | 5 | |||||||||||
Other comprehensive income (loss) | -16 | 21 | -1 | |||||||||||
Income taxes (benefits) on other comprehensive income (loss) | -6 | 8 | 1 | |||||||||||
Other comprehensive loss, net of tax | -10 | 13 | -2 | |||||||||||
COMPREHENSIVE INCOME (LOSS) | -786 | -824 | -1,264 | |||||||||||
Eliminations | Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | -3,920 | -3,928 | -3,905 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | 15 | 14 | 19 | |||||||||||
Eliminations | Non-Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 0 | 0 | 0 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | 60 | 61 | 62 | |||||||||||
FES | ||||||||||||||
Consolidating Statements of Income | ||||||||||||||
Revenues | 6,144 | [2] | 6,173 | [2] | 5,894 | [2] | ||||||||
OPERATING EXPENSES: | ||||||||||||||
Fuel | 1,253 | 1,262 | 1,287 | |||||||||||
Other operating expenses | 359 | 356 | 468 | 452 | 382 | 339 | 387 | 379 | 1,635 | 1,487 | 1,356 | |||
Pension and OPEB mark-to-market adjustment | 297 | 0 | 0 | 0 | -81 | 0 | 0 | 0 | 297 | -81 | 166 | |||
Provision for depreciation | 83 | 83 | 79 | 74 | 75 | 80 | 76 | 75 | 319 | 306 | 272 | |||
General taxes | 128 | 138 | 136 | |||||||||||
Total operating expenses | 6,674 | 5,931 | 5,555 | |||||||||||
OPERATING INCOME (LOSS) | -321 | 90 | -151 | -148 | 121 | 65 | -39 | 95 | -530 | 242 | 339 | |||
OTHER INCOME (EXPENSE): | ||||||||||||||
Loss on debt redemptions | -6 | -103 | 0 | |||||||||||
Investment income | 61 | 16 | 66 | |||||||||||
Miscellaneous income, including net income from equity investees | 6 | 28 | 35 | |||||||||||
Capitalized financing costs | 34 | 39 | 37 | |||||||||||
Total other expense | -58 | -190 | -63 | |||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -588 | 52 | 276 | |||||||||||
INCOME TAXES (BENEFITS) | -133 | 28 | -67 | -56 | 25 | 23 | -42 | 0 | -228 | 6 | 103 | |||
INCOME FROM CONTINUING OPERATIONS | -214 | 44 | -87 | -103 | 89 | 33 | -75 | -1 | -360 | 46 | 173 | |||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | 116 | 0 | 7 | 4 | 3 | 116 | 14 | 14 | |||
NET INCOME (LOSS) | -214 | 44 | -87 | 13 | 89 | 40 | -71 | 2 | -244 | 60 | 187 | |||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||
NET INCOME | -214 | 44 | -87 | 13 | 89 | 40 | -71 | 2 | -244 | 60 | 187 | |||
Pension and OPEB prior service costs | -6 | -15 | 6 | |||||||||||
Amortized loss (gain) on derivative hedges | -10 | -6 | -9 | |||||||||||
Change in unrealized gain on available-for-sale securities | 21 | -8 | -5 | |||||||||||
Other comprehensive income (loss) | 5 | -29 | -8 | |||||||||||
Income taxes (benefits) on other comprehensive income (loss) | 2 | -11 | -4 | |||||||||||
Other comprehensive loss, net of tax | 3 | -18 | -4 | |||||||||||
COMPREHENSIVE INCOME (LOSS) | -241 | 42 | 183 | |||||||||||
Tax effect of discontinued operations | 70 | 8 | 8 | |||||||||||
FES | Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 271 | 486 | 451 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | -7 | -10 | -10 | |||||||||||
FES | Non-Affiliates | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Purchased power | 2,771 | 2,333 | 1,887 | |||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||
Interest expense | ($146) | ($160) | ($191) | |||||||||||
[1] | Includes excise tax collections of $420 million, $458 million and $484 million in 2014, 2013 and 2012, respectively. | |||||||||||||
[2] | Includes excise tax collections of $69 million, $78 million and $77 million in 2014, 2013 and 2012, respectively. |
Supplemental_Guarantor_Informa3
Supplemental Guarantor Information (Details 1) (USD $) | Dec. 31, 2014 | Feb. 12, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | $85 | $218 | $172 | $202 | |
Receivables- | |||||
Customers | 1,554 | 1,720 | |||
Other Receivables | 225 | 198 | |||
Materials and supplies, at average cost | 817 | 752 | |||
Derivatives | 159 | 166 | |||
Collateral | 230 | 155 | |||
Prepayments and other | 160 | 212 | |||
Total current assets | 3,876 | 4,013 | |||
PROPERTY, PLANT AND EQUIPMENT: | |||||
In service | 47,484 | 44,228 | |||
Less - Accumulated provision for depreciation | 14,150 | 13,280 | |||
Property, plant and equipment in service net of accumulated provision for depreciation | 33,334 | 30,948 | |||
Construction work in progress | 2,449 | 2,304 | |||
Total net property, plant and equipment | 35,783 | 33,252 | |||
INVESTMENTS: | |||||
Nuclear plant decommissioning trusts | 2,341 | 2,201 | |||
Other | 881 | 903 | |||
Total other property and investments | 3,222 | 3,104 | |||
ASSETS HELD FOR SALE (Note 19) | 0 | 235 | 235 | ||
DEFERRED CHARGES AND OTHER ASSETS: | |||||
Customer intangibles | 496 | ||||
Goodwill | 6,418 | 6,418 | 6,447 | ||
Other | 1,456 | 1,548 | |||
Total deferred charges and other assets | 9,285 | 9,820 | |||
Total assets | 52,166 | 50,424 | 50,494 | ||
CURRENT LIABILITIES: | |||||
Currently payable long-term debt | 804 | 1,415 | |||
Short-term borrowings | 1,799 | 3,404 | |||
Accounts payable- | |||||
Accrued taxes | 490 | 485 | |||
Derivatives | 167 | 111 | |||
Other | 693 | 621 | |||
Total current liabilities | 5,561 | 7,637 | |||
CAPITALIZATION: | |||||
Total equity | 12,420 | 12,692 | |||
Long-term debt and other long-term obligations | 19,176 | 15,831 | |||
Total capitalization | 31,598 | 28,526 | |||
NONCURRENT LIABILITIES: | |||||
Deferred gain on sale and leaseback transaction | 824 | 858 | |||
Accumulated deferred income taxes | 7,057 | 6,968 | |||
Asset retirement obligations | 1,387 | 1,678 | |||
Retirement benefits | 3,932 | 2,689 | |||
Other | 1,590 | 1,778 | |||
Total noncurrent liabilities | 15,007 | 14,261 | |||
Total liabilities and capitalization | 52,166 | 50,424 | |||
FES | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Receivables- | |||||
Customers | 415 | 539 | |||
Affiliated companies | 484 | 938 | |||
Other Receivables | 66 | 52 | |||
Notes receivable from affiliated companies | 339 | 203 | |||
Materials and supplies, at average cost | 67 | 76 | |||
Derivatives | 147 | 165 | |||
Collateral | 229 | 136 | |||
Prepayments and other | 56 | 52 | |||
Total current assets | 1,803 | 2,161 | |||
PROPERTY, PLANT AND EQUIPMENT: | |||||
In service | 133 | 104 | |||
Less - Accumulated provision for depreciation | 36 | 28 | |||
Property, plant and equipment in service net of accumulated provision for depreciation | 97 | 76 | |||
Construction work in progress | 3 | 23 | |||
Total net property, plant and equipment | 100 | 99 | |||
INVESTMENTS: | |||||
Nuclear plant decommissioning trusts | 0 | 0 | |||
Investment in affiliated companies | 6,607 | 5,801 | |||
Other | 0 | 0 | |||
Total other property and investments | 6,607 | 5,801 | |||
ASSETS HELD FOR SALE (Note 19) | 0 | ||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||
Accumulated deferred income tax benefits | 276 | 0 | |||
Customer intangibles | 78 | 95 | |||
Goodwill | 23 | 23 | |||
Property taxes | 0 | 0 | |||
Unamortized sale and leaseback costs | 0 | 0 | |||
Derivatives | 52 | 53 | |||
Other | 34 | 81 | |||
Total deferred charges and other assets | 463 | 252 | |||
Total assets | 8,973 | 8,313 | |||
CURRENT LIABILITIES: | |||||
Currently payable long-term debt | 18 | 1 | |||
Short-term borrowings | 90 | 0 | |||
Accounts payable- | |||||
Affiliated companies | 1,068 | 741 | |||
Other | 46 | 94 | |||
Accrued taxes | 2 | 204 | |||
Derivatives | 166 | 110 | |||
Other | 72 | 70 | |||
Total current liabilities | 2,597 | 2,197 | |||
CAPITALIZATION: | |||||
Total equity | 5,585 | 5,312 | |||
Long-term debt and other long-term obligations | 695 | 712 | |||
Total capitalization | 6,280 | 6,024 | |||
NONCURRENT LIABILITIES: | |||||
Deferred gain on sale and leaseback transaction | 0 | 0 | |||
Accumulated deferred income taxes | 13 | 32 | |||
Asset retirement obligations | 0 | 0 | |||
Retirement benefits | 36 | 22 | |||
Derivatives | 14 | 14 | |||
Other | 33 | 24 | |||
Total noncurrent liabilities | 96 | 92 | |||
Total liabilities and capitalization | 8,973 | 8,313 | |||
FES | Affiliates | |||||
CURRENT LIABILITIES: | |||||
Other Short-term Borrowings | 1,135 | 977 | |||
FGCO | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 2 | 2 | 3 | 7 | |
Receivables- | |||||
Customers | 0 | 0 | |||
Affiliated companies | 487 | 787 | |||
Other Receivables | 21 | 12 | |||
Notes receivable from affiliated companies | 838 | 23 | |||
Materials and supplies, at average cost | 202 | 159 | |||
Derivatives | 0 | 0 | |||
Collateral | 0 | 0 | |||
Prepayments and other | 41 | 50 | |||
Total current assets | 1,591 | 1,033 | |||
PROPERTY, PLANT AND EQUIPMENT: | |||||
In service | 6,217 | 6,105 | |||
Less - Accumulated provision for depreciation | 2,058 | 1,953 | |||
Property, plant and equipment in service net of accumulated provision for depreciation | 4,159 | 4,152 | |||
Construction work in progress | 206 | 148 | |||
Total net property, plant and equipment | 4,365 | 4,300 | |||
INVESTMENTS: | |||||
Nuclear plant decommissioning trusts | 0 | 0 | |||
Investment in affiliated companies | 0 | 0 | |||
Other | 10 | 11 | |||
Total other property and investments | 10 | 11 | |||
ASSETS HELD FOR SALE (Note 19) | 122 | ||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||
Accumulated deferred income tax benefits | 76 | 131 | |||
Customer intangibles | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Property taxes | 14 | 15 | |||
Unamortized sale and leaseback costs | 0 | 0 | |||
Derivatives | 0 | 0 | |||
Other | 277 | 228 | |||
Total deferred charges and other assets | 367 | 374 | |||
Total assets | 6,333 | 5,840 | |||
CURRENT LIABILITIES: | |||||
Currently payable long-term debt | 164 | 367 | |||
Short-term borrowings | 9 | 4 | |||
Accounts payable- | |||||
Affiliated companies | 197 | 400 | |||
Other | 202 | 196 | |||
Accrued taxes | 62 | 23 | |||
Derivatives | 0 | 0 | |||
Other | 56 | 63 | |||
Total current liabilities | 1,011 | 1,265 | |||
CAPITALIZATION: | |||||
Total equity | 2,561 | 2,283 | |||
Long-term debt and other long-term obligations | 2,215 | 1,860 | |||
Total capitalization | 4,776 | 4,143 | |||
NONCURRENT LIABILITIES: | |||||
Deferred gain on sale and leaseback transaction | 0 | 0 | |||
Accumulated deferred income taxes | 0 | 0 | |||
Asset retirement obligations | 189 | 187 | |||
Retirement benefits | 288 | 163 | |||
Derivatives | 0 | 0 | |||
Other | 69 | 82 | |||
Total noncurrent liabilities | 546 | 432 | |||
Total liabilities and capitalization | 6,333 | 5,840 | |||
FGCO | Affiliates | |||||
CURRENT LIABILITIES: | |||||
Other Short-term Borrowings | 321 | 212 | |||
Nuclear Generation Corp | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Receivables- | |||||
Customers | 0 | 0 | |||
Affiliated companies | 674 | 227 | |||
Other Receivables | 20 | 17 | |||
Notes receivable from affiliated companies | 272 | 683 | |||
Materials and supplies, at average cost | 223 | 213 | |||
Derivatives | 0 | 0 | |||
Collateral | 0 | 0 | |||
Prepayments and other | 0 | 7 | |||
Total current assets | 1,189 | 1,147 | |||
PROPERTY, PLANT AND EQUIPMENT: | |||||
In service | 7,628 | 6,645 | |||
Less - Accumulated provision for depreciation | 3,305 | 2,962 | |||
Property, plant and equipment in service net of accumulated provision for depreciation | 4,323 | 3,683 | |||
Construction work in progress | 801 | 1,137 | |||
Total net property, plant and equipment | 5,124 | 4,820 | |||
INVESTMENTS: | |||||
Nuclear plant decommissioning trusts | 1,365 | 1,276 | |||
Investment in affiliated companies | 0 | 0 | |||
Other | 0 | 0 | |||
Total other property and investments | 1,365 | 1,276 | |||
ASSETS HELD FOR SALE (Note 19) | 0 | ||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||
Accumulated deferred income tax benefits | 0 | 0 | |||
Customer intangibles | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Property taxes | 27 | 26 | |||
Unamortized sale and leaseback costs | 0 | 0 | |||
Derivatives | 0 | 0 | |||
Other | 7 | 18 | |||
Total deferred charges and other assets | 34 | 44 | |||
Total assets | 7,712 | 7,287 | |||
CURRENT LIABILITIES: | |||||
Currently payable long-term debt | 348 | 547 | |||
Short-term borrowings | 0 | 0 | |||
Accounts payable- | |||||
Affiliated companies | 219 | 362 | |||
Other | 0 | 0 | |||
Accrued taxes | 161 | 23 | |||
Derivatives | 0 | 0 | |||
Other | 9 | 18 | |||
Total current liabilities | 765 | 1,101 | |||
CAPITALIZATION: | |||||
Total equity | 4,014 | 3,493 | |||
Long-term debt and other long-term obligations | 859 | 742 | |||
Total capitalization | 4,873 | 4,235 | |||
NONCURRENT LIABILITIES: | |||||
Deferred gain on sale and leaseback transaction | 0 | 0 | |||
Accumulated deferred income taxes | 678 | 736 | |||
Asset retirement obligations | 652 | 828 | |||
Retirement benefits | 0 | 0 | |||
Derivatives | 0 | 0 | |||
Other | 744 | 387 | |||
Total noncurrent liabilities | 2,074 | 1,951 | |||
Total liabilities and capitalization | 7,712 | 7,287 | |||
Nuclear Generation Corp | Affiliates | |||||
CURRENT LIABILITIES: | |||||
Other Short-term Borrowings | 28 | 151 | |||
Eliminations | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Receivables- | |||||
Customers | 0 | 0 | |||
Affiliated companies | -1,120 | -916 | |||
Other Receivables | 0 | 0 | |||
Notes receivable from affiliated companies | -1,449 | -909 | |||
Materials and supplies, at average cost | 0 | 0 | |||
Derivatives | 0 | 0 | |||
Collateral | 0 | 0 | |||
Prepayments and other | -2 | 0 | |||
Total current assets | -2,571 | -1,825 | |||
PROPERTY, PLANT AND EQUIPMENT: | |||||
In service | -382 | -382 | |||
Less - Accumulated provision for depreciation | -191 | -188 | |||
Property, plant and equipment in service net of accumulated provision for depreciation | -191 | -194 | |||
Construction work in progress | 0 | 0 | |||
Total net property, plant and equipment | -191 | -194 | |||
INVESTMENTS: | |||||
Nuclear plant decommissioning trusts | 0 | 0 | |||
Investment in affiliated companies | -6,607 | -5,801 | |||
Other | 0 | 0 | |||
Total other property and investments | -6,607 | -5,801 | |||
ASSETS HELD FOR SALE (Note 19) | 0 | ||||
DEFERRED CHARGES AND OTHER ASSETS: | |||||
Accumulated deferred income tax benefits | -352 | -131 | |||
Customer intangibles | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Property taxes | 0 | 0 | |||
Unamortized sale and leaseback costs | 217 | 168 | |||
Derivatives | 0 | 0 | |||
Other | -204 | -155 | |||
Total deferred charges and other assets | -339 | -118 | |||
Total assets | -9,708 | -7,938 | |||
CURRENT LIABILITIES: | |||||
Currently payable long-term debt | -24 | -23 | |||
Short-term borrowings | 0 | 0 | |||
Accounts payable- | |||||
Affiliated companies | -1,068 | -738 | |||
Other | 0 | 0 | |||
Accrued taxes | -123 | -184 | |||
Derivatives | 0 | 0 | |||
Other | 47 | 46 | |||
Total current liabilities | -2,617 | -1,808 | |||
CAPITALIZATION: | |||||
Total equity | -6,575 | -5,776 | |||
Long-term debt and other long-term obligations | -1,161 | -1,184 | |||
Total capitalization | -7,736 | -6,960 | |||
NONCURRENT LIABILITIES: | |||||
Deferred gain on sale and leaseback transaction | 824 | 858 | |||
Accumulated deferred income taxes | -180 | -27 | |||
Asset retirement obligations | 0 | 0 | |||
Retirement benefits | 0 | 0 | |||
Derivatives | 0 | 0 | |||
Other | 1 | -1 | |||
Total noncurrent liabilities | 645 | 830 | |||
Total liabilities and capitalization | -9,708 | -7,938 | |||
Eliminations | Affiliates | |||||
CURRENT LIABILITIES: | |||||
Other Short-term Borrowings | -1,449 | -909 | |||
FES | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 2 | 2 | 3 | 7 | |
Receivables- | |||||
Customers | 415 | 539 | |||
Affiliated companies | 525 | 1,036 | |||
Other Receivables | 107 | 81 | |||
Notes receivable from affiliated companies | 0 | 0 | |||
Materials and supplies, at average cost | 492 | 448 | |||
Derivatives | 147 | 165 | |||
Collateral | 229 | 136 | |||
Prepayments and other | 95 | 109 | |||
Total current assets | 2,012 | 2,516 | |||
PROPERTY, PLANT AND EQUIPMENT: | |||||
In service | 13,596 | 12,472 | |||
Less - Accumulated provision for depreciation | 5,208 | 4,755 | |||
Property, plant and equipment in service net of accumulated provision for depreciation | 8,388 | 7,717 | |||
Construction work in progress | 1,010 | 1,308 | |||
Total net property, plant and equipment | 9,398 | 9,025 | |||
INVESTMENTS: | |||||
Nuclear plant decommissioning trusts | 1,365 | 1,276 | |||
Investment in affiliated companies | 0 | 0 | |||
Other | 10 | 11 | |||
Total other property and investments | 1,375 | 1,287 | |||
ASSETS HELD FOR SALE (Note 19) | 0 | 122 | 122 | ||
DEFERRED CHARGES AND OTHER ASSETS: | |||||
Accumulated deferred income tax benefits | 0 | 0 | |||
Customer intangibles | 78 | 95 | |||
Goodwill | 23 | 23 | |||
Property taxes | 41 | 41 | |||
Unamortized sale and leaseback costs | 217 | 168 | |||
Derivatives | 52 | 53 | |||
Other | 114 | 172 | |||
Total deferred charges and other assets | 525 | 552 | |||
Total assets | 13,310 | 13,502 | |||
CURRENT LIABILITIES: | |||||
Currently payable long-term debt | 506 | 892 | |||
Short-term borrowings | 99 | 4 | |||
Accounts payable- | |||||
Affiliated companies | 416 | 765 | |||
Other | 248 | 290 | |||
Accrued taxes | 102 | 66 | |||
Derivatives | 166 | 110 | |||
Other | 184 | 197 | |||
Total current liabilities | 1,756 | 2,755 | |||
CAPITALIZATION: | |||||
Total equity | 5,585 | 5,312 | |||
Long-term debt and other long-term obligations | 2,608 | 2,130 | |||
Total capitalization | 8,193 | 7,442 | |||
NONCURRENT LIABILITIES: | |||||
Deferred gain on sale and leaseback transaction | 824 | 858 | |||
Accumulated deferred income taxes | 511 | 741 | |||
Asset retirement obligations | 841 | 1,015 | |||
Retirement benefits | 324 | 185 | |||
Derivatives | 14 | 14 | |||
Other | 847 | 492 | |||
Total noncurrent liabilities | 3,361 | 3,305 | |||
Total liabilities and capitalization | 13,310 | 13,502 | |||
FES | Affiliates | |||||
CURRENT LIABILITIES: | |||||
Other Short-term Borrowings | $35 | $431 |
Supplemental_Guarantor_Informa4
Supplemental Guarantor Information (Details 2) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 12, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash provided from operating activities | $2,713 | $2,662 | $2,320 | |||
New Financing- | ||||||
Long-term debt | 4,528 | 3,745 | 750 | |||
Short-term borrowings, net | 0 | 1,435 | 1,969 | |||
Redemptions and Repayments- | ||||||
Long-term debt | -1,759 | -3,600 | -940 | |||
Short-term borrowings, net | -1,605 | 0 | 0 | |||
Common stock dividend payments | -604 | -920 | -920 | |||
Tender premiums | 0 | -110 | 0 | |||
Other | -47 | -73 | -52 | |||
Net cash provided from (used for) financing activities | 513 | 477 | 807 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Property additions | -3,312 | -2,638 | -2,678 | |||
Nuclear fuel | -233 | -250 | -286 | |||
Proceeds from asset sales | 394 | 394 | 4 | 17 | ||
Sales of investment securities held in trusts | 2,133 | 2,047 | 2,980 | |||
Purchases of investment securities held in trusts | -2,236 | -2,096 | -3,020 | |||
Other | 13 | 9 | -43 | |||
Net cash used for investing activities | -3,359 | -3,093 | -3,157 | |||
Net change in cash and cash equivalents | -133 | 46 | -30 | |||
Cash and cash equivalents at beginning of period | 218 | 172 | 218 | 172 | 202 | |
Cash and cash equivalents at end of period | 85 | 218 | 172 | |||
FES | ||||||
Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash provided from operating activities | -600 | -1,429 | -1,063 | |||
New Financing- | ||||||
Long-term debt | 0 | 0 | ||||
Short-term borrowings, net | 247 | 864 | 0 | |||
Equity contribution from parent | 500 | 1,500 | ||||
Redemptions and Repayments- | ||||||
Long-term debt | -1 | -770 | -1 | |||
Short-term borrowings, net | 0 | -244 | -707 | |||
Common stock dividend payments | 0 | |||||
Tender premiums | -67 | |||||
Other | -1 | -4 | -1 | |||
Net cash provided from (used for) financing activities | 745 | 1,279 | -709 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Property additions | -8 | -12 | -14 | |||
Nuclear fuel | 0 | 0 | 0 | |||
Proceeds from asset sales | 0 | 0 | 0 | |||
Sales of investment securities held in trusts | 0 | 0 | 0 | |||
Purchases of investment securities held in trusts | 0 | 0 | 0 | |||
Loans to affiliated companies, net | -136 | 163 | -211 | |||
Dividends received | 2,000 | |||||
Other | -1 | -1 | -3 | |||
Net cash used for investing activities | -145 | 150 | 1,772 | |||
Net change in cash and cash equivalents | 0 | 0 | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | |
Cash and cash equivalents at end of period | 0 | 0 | 0 | |||
FGCO | ||||||
Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash provided from operating activities | 408 | 753 | 639 | |||
New Financing- | ||||||
Long-term debt | 431 | 351 | ||||
Short-term borrowings, net | 114 | 371 | 260 | |||
Equity contribution from parent | 0 | 0 | ||||
Redemptions and Repayments- | ||||||
Long-term debt | -269 | -364 | -288 | |||
Short-term borrowings, net | 0 | -505 | 0 | |||
Common stock dividend payments | -2,000 | |||||
Tender premiums | 0 | |||||
Other | -12 | -5 | -8 | |||
Net cash provided from (used for) financing activities | 264 | -503 | -1,685 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Property additions | -169 | -256 | -273 | |||
Nuclear fuel | 0 | 0 | 0 | |||
Proceeds from asset sales | 307 | 21 | 17 | |||
Sales of investment securities held in trusts | 0 | 0 | 0 | |||
Purchases of investment securities held in trusts | 0 | 0 | 0 | |||
Loans to affiliated companies, net | -815 | -15 | 1,338 | |||
Dividends received | 0 | |||||
Other | 5 | -1 | -40 | |||
Net cash used for investing activities | -672 | -251 | 1,042 | |||
Net change in cash and cash equivalents | 0 | -1 | -4 | |||
Cash and cash equivalents at beginning of period | 2 | 3 | 2 | 3 | 7 | |
Cash and cash equivalents at end of period | 2 | 2 | 3 | |||
Nuclear Generation Corp | ||||||
Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash provided from operating activities | 785 | 776 | 1,266 | |||
New Financing- | ||||||
Long-term debt | 447 | 299 | ||||
Short-term borrowings, net | 0 | 150 | 0 | |||
Equity contribution from parent | 0 | 0 | ||||
Redemptions and Repayments- | ||||||
Long-term debt | -568 | -90 | -161 | |||
Short-term borrowings, net | -123 | 0 | -32 | |||
Common stock dividend payments | 0 | |||||
Tender premiums | 0 | |||||
Other | -2 | 0 | -3 | |||
Net cash provided from (used for) financing activities | -246 | 60 | 103 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Property additions | -662 | -449 | -508 | |||
Nuclear fuel | -233 | -250 | -286 | |||
Proceeds from asset sales | 0 | 0 | 0 | |||
Sales of investment securities held in trusts | 1,163 | 940 | 1,464 | |||
Purchases of investment securities held in trusts | -1,219 | -1,000 | -1,502 | |||
Loans to affiliated companies, net | 412 | -77 | -538 | |||
Dividends received | 0 | |||||
Other | 0 | 0 | 1 | |||
Net cash used for investing activities | -539 | -836 | -1,369 | |||
Net change in cash and cash equivalents | 0 | 0 | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | |
Cash and cash equivalents at end of period | 0 | 0 | 0 | |||
Eliminations | ||||||
Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash provided from operating activities | -22 | -22 | -21 | |||
New Financing- | ||||||
Long-term debt | 0 | 0 | ||||
Short-term borrowings, net | -361 | -954 | -257 | |||
Equity contribution from parent | 0 | 0 | ||||
Redemptions and Repayments- | ||||||
Long-term debt | 22 | 22 | 21 | |||
Short-term borrowings, net | -178 | 749 | 739 | |||
Common stock dividend payments | 2,000 | |||||
Tender premiums | 0 | |||||
Other | 0 | 0 | ||||
Net cash provided from (used for) financing activities | -517 | -183 | 2,503 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Property additions | 0 | 0 | 0 | |||
Nuclear fuel | 0 | 0 | 0 | |||
Proceeds from asset sales | 0 | 0 | 0 | |||
Sales of investment securities held in trusts | 0 | 0 | 0 | |||
Purchases of investment securities held in trusts | 0 | 0 | 0 | |||
Loans to affiliated companies, net | 539 | 205 | -482 | |||
Dividends received | -2,000 | |||||
Other | 0 | 0 | 0 | |||
Net cash used for investing activities | 539 | 205 | -2,482 | |||
Net change in cash and cash equivalents | 0 | 0 | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | |
Cash and cash equivalents at end of period | 0 | 0 | 0 | |||
FES | ||||||
Consolidated Statements of Cash Flows [Abstract] | ||||||
Net cash provided from operating activities | 571 | 78 | 821 | |||
New Financing- | ||||||
Long-term debt | 878 | 878 | 0 | 650 | ||
Short-term borrowings, net | 0 | 431 | 3 | |||
Equity contribution from parent | 500 | 500 | 1,500 | 0 | ||
Redemptions and Repayments- | ||||||
Long-term debt | -816 | -1,202 | -429 | |||
Short-term borrowings, net | -301 | 0 | 0 | |||
Common stock dividend payments | 0 | |||||
Tender premiums | 0 | -67 | 0 | |||
Other | -15 | -9 | -12 | |||
Net cash provided from (used for) financing activities | 246 | 653 | 212 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Property additions | -839 | -717 | -795 | |||
Nuclear fuel | -233 | -250 | -286 | |||
Proceeds from asset sales | 307 | 307 | 21 | 17 | ||
Sales of investment securities held in trusts | 1,163 | 940 | 1,464 | |||
Purchases of investment securities held in trusts | -1,219 | -1,000 | -1,502 | |||
Loans to affiliated companies, net | 0 | 276 | 107 | |||
Dividends received | 0 | |||||
Other | 4 | -2 | -42 | |||
Net cash used for investing activities | -817 | -732 | -1,037 | |||
Net change in cash and cash equivalents | 0 | -1 | -4 | |||
Cash and cash equivalents at beginning of period | 2 | 3 | 2 | 3 | 7 | |
Cash and cash equivalents at end of period | $2 | $2 | $3 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Financial Information | ||||||||||||||
External revenues | $15,049 | $14,892 | $15,253 | |||||||||||
Total revenues | 15,049 | [1] | 14,892 | [1] | 15,255 | [1] | ||||||||
Depreciation | 316 | 308 | 302 | 294 | 293 | 316 | 300 | 293 | 1,220 | 1,202 | 1,119 | |||
Amortization of regulatory asset, net | 12 | 539 | -68 | |||||||||||
Investment income | 72 | 33 | 77 | |||||||||||
Interest expense | 1,073 | 1,016 | 1,001 | |||||||||||
Income taxes (benefits) | -268 | 152 | 26 | 48 | 66 | 77 | -62 | 114 | -42 | 195 | 545 | |||
Income (loss) from continuing operations | -306 | 333 | 64 | 122 | 142 | 209 | -168 | 192 | 213 | 375 | 755 | |||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | 86 | 0 | 9 | 4 | 4 | 86 | 17 | 16 | |||
NET INCOME (LOSS) | -306 | 333 | 64 | 208 | 142 | 218 | -164 | 196 | 299 | 392 | 771 | |||
Total assets | 52,166 | 50,424 | 52,166 | 50,424 | 50,494 | |||||||||
Total goodwill | 6,418 | 6,418 | 6,418 | 6,418 | 6,447 | |||||||||
Property additions | 3,312 | 2,638 | 2,678 | |||||||||||
Intersegment Eliminations | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | 0 | 0 | 2 | |||||||||||
Regulated Distribution | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | 9,102 | 8,720 | 9,047 | |||||||||||
Total revenues | 9,102 | 8,720 | 9,047 | |||||||||||
Depreciation | 658 | 606 | 558 | |||||||||||
Amortization of regulatory asset, net | 1 | 529 | -65 | |||||||||||
Investment income | 56 | 57 | 84 | |||||||||||
Interest expense | 589 | 543 | 540 | |||||||||||
Income taxes (benefits) | 227 | 301 | 295 | |||||||||||
Income (loss) from continuing operations | 465 | 501 | 540 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | |||||||||||
NET INCOME (LOSS) | 465 | 501 | 540 | |||||||||||
Total assets | 28,232 | 27,683 | 28,232 | 27,683 | 27,150 | |||||||||
Total goodwill | 5,092 | 5,092 | 5,092 | 5,092 | 5,025 | |||||||||
Property additions | 972 | 1,272 | 1,074 | |||||||||||
Regulated Distribution | Intersegment Eliminations | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | 0 | 0 | 0 | |||||||||||
Regulated Transmission | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | 769 | 731 | 735 | |||||||||||
Total revenues | 769 | 731 | 735 | |||||||||||
Depreciation | 127 | 114 | 114 | |||||||||||
Amortization of regulatory asset, net | 11 | 10 | -3 | |||||||||||
Investment income | 0 | 0 | 1 | |||||||||||
Interest expense | 131 | 93 | 92 | |||||||||||
Income taxes (benefits) | 121 | 129 | 133 | |||||||||||
Income (loss) from continuing operations | 223 | 214 | 226 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | |||||||||||
NET INCOME (LOSS) | 223 | 214 | 226 | |||||||||||
Total assets | 6,352 | 5,247 | 6,352 | 5,247 | 4,865 | |||||||||
Total goodwill | 526 | 526 | 526 | 526 | 526 | |||||||||
Property additions | 1,329 | 461 | 507 | |||||||||||
Regulated Transmission | Intersegment Eliminations | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | 0 | 0 | 0 | |||||||||||
Competitive Energy Services | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | 5,470 | 5,728 | 5,778 | |||||||||||
Total revenues | 6,289 | 6,498 | 6,644 | |||||||||||
Depreciation | 387 | 439 | 409 | |||||||||||
Amortization of regulatory asset, net | 0 | 0 | 0 | |||||||||||
Investment income | 45 | 11 | 66 | |||||||||||
Interest expense | 189 | 222 | 284 | |||||||||||
Income taxes (benefits) | -226 | -141 | 83 | |||||||||||
Income (loss) from continuing operations | -423 | -237 | 199 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 86 | 17 | 16 | |||||||||||
NET INCOME (LOSS) | -337 | -220 | 215 | |||||||||||
Total assets | 16,743 | 16,782 | 16,743 | 16,782 | 18,087 | |||||||||
Total goodwill | 800 | 800 | 800 | 800 | 896 | |||||||||
Property additions | 939 | 827 | 1,014 | |||||||||||
Competitive Energy Services | Intersegment Eliminations | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | 819 | 770 | 866 | |||||||||||
Reconciling Adjustments | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | -146 | -166 | -188 | |||||||||||
Total revenues | -965 | -936 | -1,052 | |||||||||||
Depreciation | 0 | 0 | 0 | |||||||||||
Amortization of regulatory asset, net | 0 | 0 | 0 | |||||||||||
Investment income | -40 | -44 | -69 | |||||||||||
Interest expense | -4 | 10 | 0 | |||||||||||
Income taxes (benefits) | 11 | 10 | 68 | |||||||||||
Income (loss) from continuing operations | 0 | 0 | -55 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | |||||||||||
NET INCOME (LOSS) | 0 | 0 | -55 | |||||||||||
Total assets | 0 | 0 | 0 | 0 | 0 | |||||||||
Total goodwill | 0 | 0 | 0 | 0 | 0 | |||||||||
Property additions | 0 | 0 | 0 | |||||||||||
Reconciling Adjustments | Intersegment Eliminations | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | -819 | -770 | -864 | |||||||||||
Other/Corporate | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | -146 | -121 | -119 | |||||||||||
Total revenues | -146 | -121 | -119 | |||||||||||
Depreciation | 48 | 43 | 38 | |||||||||||
Amortization of regulatory asset, net | 0 | 0 | 0 | |||||||||||
Investment income | 11 | 9 | -5 | |||||||||||
Interest expense | 168 | 148 | 85 | |||||||||||
Income taxes (benefits) | -175 | -104 | -34 | |||||||||||
Income (loss) from continuing operations | -52 | -103 | -155 | |||||||||||
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | |||||||||||
NET INCOME (LOSS) | -52 | -103 | -155 | |||||||||||
Total assets | 839 | 712 | 839 | 712 | 392 | |||||||||
Total goodwill | 0 | 0 | 0 | 0 | 0 | |||||||||
Property additions | 72 | 78 | 83 | |||||||||||
Other/Corporate | Intersegment Eliminations | ||||||||||||||
Segment Financial Information | ||||||||||||||
External revenues | $0 | $0 | $0 | |||||||||||
[1] | Includes excise tax collections of $420 million, $458 million and $484 million in 2014, 2013 and 2012, respectively. |
Segment_Information_Details_Te
Segment Information (Details Textuals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Oct. 09, 2013 | |
customer | MW | |
company | ||
sqmi | ||
Regulated Distribution | ||
Segment Reporting Information [Line Items] | ||
Number of existing utility operating companies | 10 | |
Number of customers served by utility operating companies | 6,000,000 | |
Number of square miles in service area | 65,000 | |
Megawatts of net demonstrated capacity of competitive segment | 3,790 | |
Competitive Energy Services | ||
Segment Reporting Information [Line Items] | ||
Megawatts of net demonstrated capacity of competitive segment | 14,068 | |
Competitive Energy Services | Minimum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 65,000,000 | |
Competitive Energy Services | Maximum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 75,000,000 | |
Competitive Energy Services | Governmental Aggregation | Minimum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 10,000,000 | |
Competitive Energy Services | Governmental Aggregation | Maximum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 15,000,000 | |
Competitive Energy Services | POLR Sales | Minimum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 0 | |
Competitive Energy Services | POLR Sales | Maximum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 10,000,000 | |
Competitive Energy Services | Large Commercial and Industrial Sales | Minimum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 0 | |
Competitive Energy Services | Large Commercial and Industrial Sales | Maximum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 20,000,000 | |
Competitive Energy Services | Block Wholesale Sales | Minimum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 10,000,000 | |
Competitive Energy Services | Block Wholesale Sales | Maximum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 20,000,000 | |
Competitive Energy Services | Spot Wholesale Sales | Minimum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 10,000,000 | |
Competitive Energy Services | Spot Wholesale Sales | Maximum | ||
Segment Reporting Information [Line Items] | ||
Targeted sales portfolio | 20,000,000 | |
Competitive Energy Services | Unregulated Plants Expected to be Closed by 9/1/2012 | ||
Segment Reporting Information [Line Items] | ||
Megawatt capacity of plants expected to be closed | 885 | |
Other Business Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-term debt and other long-term obligations | 4,200,000,000 | |
Long-term Debt, Amount Subject to Variable Interest Rate, Percent | 28.00% | |
Parent Company | Revolving Credit Facility | Other Business Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-term Line of Credit | 1,700,000,000 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 12, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 04, 2013 |
plant | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from asset sales | $394 | $394 | $4 | $17 | |
Assets held-for-sale | 235 | 0 | 235 | ||
Goodwill | 29 | ||||
Pre-tax income | 155 | 26 | 24 | ||
Pre-tax gain on sale of assets | 142 | ||||
Revenue | 5 | 33 | 30 | ||
FES | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from asset sales | 307 | 307 | 21 | 17 | |
Assets held-for-sale | 122 | 0 | 122 | ||
Goodwill | 1 | ||||
Pre-tax income | 186 | 22 | 22 | ||
Pre-tax gain on sale of assets | 177 | ||||
Revenue | $5 | $31 | $24 | ||
FERC | Hydroelectric Asset Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Application to sell power plant projects, number | 11 |
Summary_of_Quarterly_Financial2
Summary of Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Line Items] | |||||||||||
Revenues | $3,483 | $3,888 | $3,496 | $4,182 | $3,633 | $4,032 | $3,507 | $3,720 | $9,871 | $9,451 | $9,782 |
Other operating expenses | 901 | 858 | 1,021 | 1,182 | 948 | 877 | 886 | 882 | 3,962 | 3,593 | 3,760 |
Pension and OPEB mark-to-market | 835 | 0 | 0 | 0 | -256 | 0 | 0 | 0 | 835 | -256 | 609 |
Provision for depreciation | 316 | 308 | 302 | 294 | 293 | 316 | 300 | 293 | 1,220 | 1,202 | 1,119 |
Impairment of long-lived assets | 0 | 0 | 0 | 0 | 322 | 0 | 473 | 0 | 0 | 795 | 0 |
Operating Income (Loss) | -337 | 716 | 292 | 391 | 387 | 508 | 42 | 645 | 1,062 | 1,582 | 2,134 |
Income (loss) from continuing operations before income taxes (benefits) | -574 | 485 | 90 | 170 | 208 | 286 | -230 | 306 | |||
Total provision for income taxes | -268 | 152 | 26 | 48 | 66 | 77 | -62 | 114 | -42 | 195 | 545 |
Income (loss) from continuing operations | -306 | 333 | 64 | 122 | 142 | 209 | -168 | 192 | 213 | 375 | 755 |
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | 86 | 0 | 9 | 4 | 4 | 86 | 17 | 16 |
NET INCOME (LOSS) | -306 | 333 | 64 | 208 | 142 | 218 | -164 | 196 | 299 | 392 | 771 |
Earnings per share of common stock- | |||||||||||
Basic - Continuing Operations, in dollars per share | ($0.73) | $0.79 | $0.16 | $0.29 | $0.34 | $0.50 | ($0.40) | $0.46 | $0.51 | $0.90 | $1.81 |
Basic - Discontinued Operations, in dollars per share | $0 | $0 | $0 | $0.21 | $0 | $0.02 | $0.01 | $0.01 | $0.20 | $0.04 | $0.04 |
Basic - Earnings Available to FirstEnergy Corp., in dollars per share | ($0.73) | $0.79 | $0.16 | $0.50 | $0.34 | $0.52 | ($0.39) | $0.47 | $0.71 | $0.94 | $1.85 |
Diluted - Continuing Operations, in dollars per share | ($0.73) | $0.79 | $0.15 | $0.29 | $0.34 | $0.50 | ($0.40) | $0.46 | $0.51 | $0.90 | $1.80 |
Diluted - Discontinued Operations, in dollars per share | $0 | $0 | $0 | $0.20 | $0 | $0.02 | $0.01 | $0.01 | $0.20 | $0.04 | $0.04 |
Diluted - Earnings Available to FirstEnergy Corp., in dollars per share | ($0.73) | $0.79 | $0.15 | $0.49 | $0.34 | $0.52 | ($0.39) | $0.47 | $0.71 | $0.94 | $1.84 |
Adjustments from prior periods | 16 | -25 | |||||||||
FES | |||||||||||
Quarterly Financial Data [Line Items] | |||||||||||
Revenues | 1,342 | 1,521 | 1,452 | 1,829 | 1,518 | 1,679 | 1,452 | 1,524 | |||
Other operating expenses | 359 | 356 | 468 | 452 | 382 | 339 | 387 | 379 | 1,635 | 1,487 | 1,356 |
Pension and OPEB mark-to-market | 297 | 0 | 0 | 0 | -81 | 0 | 0 | 0 | 297 | -81 | 166 |
Provision for depreciation | 83 | 83 | 79 | 74 | 75 | 80 | 76 | 75 | 319 | 306 | 272 |
Operating Income (Loss) | -321 | 90 | -151 | -148 | 121 | 65 | -39 | 95 | -530 | 242 | 339 |
Income (loss) from continuing operations before income taxes (benefits) | -347 | 72 | -154 | -159 | 114 | 56 | -117 | -1 | |||
Total provision for income taxes | -133 | 28 | -67 | -56 | 25 | 23 | -42 | 0 | -228 | 6 | 103 |
Income (loss) from continuing operations | -214 | 44 | -87 | -103 | 89 | 33 | -75 | -1 | -360 | 46 | 173 |
Discontinued operations (net of income taxes of $69, $9 and $8, respectively) (Note 19) | 0 | 0 | 0 | 116 | 0 | 7 | 4 | 3 | 116 | 14 | 14 |
NET INCOME (LOSS) | ($214) | $44 | ($87) | $13 | $89 | $40 | ($71) | $2 | ($244) | $60 | $187 |
Consolidated_Valuation_and_Qua1
Consolidated Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated provision for uncollectible accounts - customers | |||
Consolidated Valuation and Qualifying Accounts | |||
Beginning Balance | $51,630 | $40,354 | $37,303 |
Charged to Income | 90,144 | 68,733 | 84,026 |
Charged to Other Accounts | 36,373 | 39,775 | 36,686 |
Deductions | 118,881 | 97,232 | 117,661 |
Ending Balance | 59,266 | 51,630 | 40,354 |
Accumulated provision for uncollectible accounts - customers | FES | |||
Consolidated Valuation and Qualifying Accounts | |||
Beginning Balance | 11,073 | 16,188 | 16,441 |
Charged to Income | 21,942 | 14,294 | 10,410 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 15,153 | 19,409 | 10,663 |
Ending Balance | 17,862 | 11,073 | 16,188 |
Accumulated provision for uncollectible accounts - other | |||
Consolidated Valuation and Qualifying Accounts | |||
Beginning Balance | 2,976 | 4,013 | 3,447 |
Charged to Income | 3,469 | -1,464 | 4,328 |
Charged to Other Accounts | 8,264 | 5,208 | 203 |
Deductions | 9,512 | 4,781 | 3,965 |
Ending Balance | 5,197 | 2,976 | 4,013 |
Accumulated provision for uncollectible accounts - other | FES | |||
Consolidated Valuation and Qualifying Accounts | |||
Beginning Balance | 2,523 | 2,500 | 2,500 |
Charged to Income | 9 | 28 | 1,290 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 32 | 5 | 1,290 |
Ending Balance | 2,500 | 2,523 | 2,500 |
Loss carryforward tax valuation reserve | |||
Consolidated Valuation and Qualifying Accounts | |||
Beginning Balance | 125,360 | 101,697 | 34,236 |
Charged to Income | 48,644 | 23,663 | 67,461 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Ending Balance | 174,004 | 125,360 | 101,697 |
Loss carryforward tax valuation reserve | FES | |||
Consolidated Valuation and Qualifying Accounts | |||
Beginning Balance | 26,875 | 15,810 | 11,650 |
Charged to Income | 5,251 | 11,065 | 4,160 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Ending Balance | $32,126 | $26,875 | $15,810 |