Jersey Central Power & Light 10-Q 9 Nov 09 2009 Q3 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009		3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
REVENUES:
Electric utilities	$2,940		$3,469		$8,751		$9,247
Unregulated businesses	468		435		1,262		1,179
Total revenues	3,408	[1]	3,904	[2]	10,013	[3]	10,426	[4]
EXPENSES:
Fuel	302		356		890		1,000
Purchased power	1,313		1,306		3,480		3,376
Other operating expenses	665		794		2,103		2,374
Provision for depreciation	188		168		550		500
Amortization of regulatory assets	261		291		903		795
Deferral of regulatory assets			(58)		(136)		(261)
General taxes	192		201		587		596
Total expenses	2,921		3,058		8,377		8,380
OPERATING INCOME	487		846		1,636		2,046
OTHER INCOME (EXPENSE):
Investment income	191		40		207		73
Interest expense	(355)		(192)		(755)		(559)
Capitalized interest	35		15		96		36
Total other expense	(129)		(137)		(452)		(450)
INCOME BEFORE INCOME TAXES	358		709		1,184		1,596
INCOME TAXES	128		238		430		585
NET INCOME	230		471		754		1,011
Less: Noncontrolling interest income (loss)	(4)				(14)		1
EARNINGS AVAILABLE TO FIRSTENERGY CORP.	$234		$471		$768		$1,010
BASIC EARNINGS PER SHARE OF COMMON STOCK	0.77		1.55		2.52		3.32
WEIGHTED AVERAGE NUMBER OF BASIC SHARES OUTSTANDING	304		304		304		304
DILUTED EARNINGS PER SHARE OF COMMON STOCK	0.77		1.54		2.51		3.29
WEIGHTED AVERAGE NUMBER OF DILUTED SHARES OUTSTANDING	306		307		306		307
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	1.1		1.1		1.65		1.65
[1]Includes $106 million of excise tax collections.
[2]Includes $115 milion of excise tax collections.
[3]Includes $310 million of excise tax collections.
[4]Includes $329 million of excise tax collections.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
NET INCOME	$230	$471	$754	$1,011
OTHER COMPREHENSIVE INCOME (LOSS):
Pension and other postretirement benefits	(480)	(20)	24	(60)
Unrealized gain (loss) on derivative hedges	19	26	57	21
Change in unrealized gain on available-for-sale securities	(108)	(100)	(76)	(181)
Other comprehensive income (loss)	(569)	(94)	5	(220)
Income tax expense (benefit) related to other comprehensive income	(216)	(34)	26	(81)
Other comprehensive income (loss), net of tax	(353)	(60)	(21)	(139)
COMPREHENSIVE INCOME (LOSS)	(123)	411	733	872
LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST	(4)		(14)	1
COMPREHENSIVE INCOME (LOSS) AVAILABLE TO FIRSTENERGY CORP.	($119)	$411	$747	$871

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
CURRENT ASSETS:
Cash and cash equivalents	$838	$545
Receivables-
Customers	1,260	1,304
Other	132	167
Materials and supplies, at average cost	621	605
Prepaid taxes	585	283
Other	334	149
Total current assets	3,770	3,053
PROPERTY, PLANT AND EQUIPMENT:
In service	27,526	26,482
Less - Accumulated provision for depreciation	11,267	10,821
Total in service, net of accumulated depreciation	16,259	15,661
Construction work in progress	2,490	2,062
Total property, plant and equipment	18,749	17,723
INVESTMENTS:
Nuclear plant decommissioning trusts	1,856	1,708
Investments in lease obligation bonds	553	598
Other	698	711
Total investments	3,107	3,017
DEFERRED CHARGES AND OTHER ASSETS:
Goodwill	5,575	5,575
Regulatory assets	2,543	3,140
Power purchase contract asset	220	434
Other	710	579
Total deferred charges and other assets	9,048	9,728
Total assets	34,674	33,521
CURRENT LIABILITIES:
Currently payable long-term debt	2,020	2,476
Short-term borrowings	1,653	2,397
Accounts payable	692	794
Accrued taxes	257	333
Other	1,114	1,098
Total current liabilities	5,736	7,098
Common stockholders' equity-
Common stock	31	31
Other paid-in capital	5,438	5,473
Accumulated other comprehensive loss	(1,401)	(1,380)
Retained earnings	4,424	4,159
Total common stockholders' equity	8,492	8,283
Noncontrolling interest	1	32
Total equity	8,493	8,315
Long-term debt and other long-term obligations	11,647	9,100
Total capitalization	20,140	17,415
NONCURRENT LIABILITIES:
Accumulated deferred income taxes	2,562	2,163
Asset retirement obligations	1,401	1,335
Deferred gain on sale and leaseback transaction	1,001	1,027
Power purchase contract liability	685	766
Retirement benefits	1,500	1,884
Lease market valuation liability	274	308
Other	1,375	1,525
Total noncurrent liabilities	8,798	9,008
Total liabilities and capitalization	$34,674	$33,521

Paranthetical Data to the Conso

Paranthetical Data to the Consolidated Balance Sheets (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
Receivables-
Accumulated provision for uncollectible accounts - customers	$28	$28
Accumulated provision for uncollectible accounts - other	$9	$9
Common stockholders' equity-
Common stock - par value	0.1	0.1
Common stock - shares authorized	375,000,000	375,000,000
Common stock - shares outstanding	304,835,407	304,835,407

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$754	$1,011
Adjustments to reconcile net income to net cash from operating activities-
Provision for depreciation	550	500
Amortization of regulatory assets	903	795
Deferral of regulatory assets	136	261
Nuclear fuel and lease amortization	92	82
Deferred purchased power and other costs	(235)	(138)
Deferred income taxes and investment tax credits, net	421	278
Investment impairment	39	63
Deferred rents and lease market valuation liability	(20)	(62)
Accrued compensation and retirement benefits	20	(127)
Stock-based compensation	(1)	(74)
Gain on asset sales	(12)	(43)
Electric service prepayment programs	(10)	(58)
Cash collateral, net	(85)	21
Gain on investment securities held in trusts	(172)	(43)
Loss on debt redemption	142
Pension trust contribution	(500)
Decrease (increase) in operating assets-
Receivables	78	(117)
Materials and supplies	30	(34)
Prepaid taxes	(332)	(259)
Increase (decrease) in operating liabilities-
Accounts payable	(103)	(34)
Accrued taxes	(97)	(166)
Accrued interest	121	107
Other	17	(10)
Net cash provided from operating activities	1,464	1,431
New Financing-
Long-term debt	4,151	631
Short-term borrowings, net		1,489
Redemptions and Repayments-
Long-term debt	(2,213)	(733)
Short-term borrowings, net	(764)
Net controlled disbursement activity	(15)	6
Common stock dividend payments	(503)	(503)
Other	(39)	21
Net cash provided from financing activities	617	911
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(1,575)	(2,177)
Proceeds from asset sales	19	64
Sales of investment securities held in trusts	3,039	1,144
Purchases of investment securities held in trusts	(3,101)	(1,215)
Cash investments	(4)	72
Restricted funds for debt redemption	(150)	(82)
Other	(16)	(96)
Net cash used for investing activities	(1,788)	(2,290)
Net change in cash and cash equivalents	293	52
Cash and cash equivalents at beginning of period	545	129
Cash and cash equivalents at end of period	$838	$181

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION
	9 Months Ended Sep. 30, 2009 USD / shares
Organization and Basis of Presentation [Abstract]
1. ORGANIZATION AND BASIS OF PRESENTATION	1. ORGANIZATION AND BASIS OF PRESENTATION FirstEnergy is a diversified energy company that holds, directly or indirectly, all of the outstanding common stock of its principal subsidiaries: OE, CEI, TE, Penn (a wholly owned subsidiary of OE), ATSI, JCP&L, Met-Ed, Penelec, FENOC, FES and its subsidiaries FGCO and NGC, and FESC. FirstEnergy and its subsidiaries follow GAAP and comply with the regulations, orders, policies and practices prescribed by the SEC, the FERC and, as applicable, the PUCO, the PPUC 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 and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not indicative of results of operations for any future period. In preparing the financial statements, FirstEnergy and its subsidiaries have evaluated events and transactions for potential recognition or disclosure through November 6, 2009, the date the financial statements were issued. These statements should be read in conjunction with the financial statements and notes included in the combined Annual Report on Form 10-K for the year ended December 31, 2008 for FirstEnergy, FES and the Utilities. The consolidated unaudited financial statements of FirstEnergy, FES and each of the Utilities reflect all normal recurring adjustments that, in the opinion of management, are necessary to fairly present results of operations for the interim periods. Certain prior year amounts have been reclassified to conform to the current year presentation. Unless otherwise indicated, defined terms used herein have the meanings set forth in the accompanying Glossary of Terms. FirstEnergy 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. FirstEnergy consolidates a VIE (see Note 7) when it is determined to be the VIE's primary beneficiary. Investments in non-consolidated affiliates over which FirstEnergy and its subsidiaries have the ability to exercise significant influence, but not control (20-50% owned companies, joint ventures and partnerships) 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. The consolidated financial statements as of September 30, 2009 and for the three-month and nine-month periods ended September 30, 2009 and 2008, have been reviewed by PricewaterhouseCoopers LLP, an independent registered public accounting firm. Their report (dated November 6, 2009) is included herein. The report of PricewaterhouseCoopers LLP states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such inform

EARNINGS PER SHARE

EARNINGS PER SHARE
	9 Months Ended Sep. 30, 2009 USD / shares
[EarningsPerShareAbstract]
2. EARNINGS PER SHARE	2. EARNINGS PER SHARE Basic earnings per share of common stock are computed using the weighted average of actual common shares outstanding during the respective 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: Three Months Ended Nine Months Ended Reconciliation of Basic and Diluted Earnings per ShareSeptember 30September 30of Common Stock 2009 2008 2009 2008 (In millions, except per share amounts) Earnings available to FirstEnergy Corp. $234$471 $768$1,010 Average shares of common stock outstanding - Basic 304304 304304Assumed exercise of dilutive stock options and awards 23 23Average shares of common stock outstanding - Diluted 306307 306307 Basic earnings per share of common stock $.77$1.55 $2.52$3.32Diluted earnings per share of common stock$.77$1.54$2.51$3.29

FAIR VALUE MEASURES

FAIR VALUE MEASURES
	9 Months Ended Sep. 30, 2009 USD / shares
Fair Value Measurements [Abstract]
4. FAIR VALUE OF FINANCIAL INSTRUMENTS	4. FAIR VALUE OF FINANCIAL INSTRUMENTS (A) 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 on the Consolidated Balance Sheets at cost, which approximates their fair market value, in the caption "short-term borrowings." The following table provides the approximate fair value and related carrying amounts of long-term debt and other long-term obligations as of September 30, 2009 and December 31, 2008: September 30, 2009 December 31, 2008 Carrying Fair Carrying Fair Value Value Value Value (In millions) FirstEnergy $ 13,675 $ 14,483 $ 11,585 $ 11,146 FES 4,233 4,304 2,552 2,528 OE 1,169 1,318 1,232 1,223 CEI 1,900 2,033 1,741 1,618 TE 600 656 300 244 JCP&L 1,849 1,977 1,569 1,520 Met-Ed 842 911 542 519 Penelec 1,179 1,221 779 721 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 FES and the Utilities. (B) 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, available-for-sale securities, and notes receivable. FES and the Utilities periodically evaluate their investments for other-than-temporary impairment. They first consider their intent and ability to hold an equity investment until recovery and then consider, among other factors, the duration and the extent to which the security's fair value has been less than cost and the near-term financial prospects of the security issuer when evaluating an investment for impairment. For debt securities, FES and the Utilities consider their intent to hold the security, the likelihood that they will be required to sell the security before recovery of its cost basis, and the likelihood of recovery of the security's entire amortized cost basis. Available-For-Sale Securities FES and the Utilities hold debt and equity securities within their nuclear decommissioning trusts, nuclear fuel disposal trusts and NUG trusts. These trust investments are considered as available-for-sale at fair market value. FES and the Utilities have no securities held for trading purposes. The following table summarizes the amortized cost basis, unrealized gains and losses and fair values of investments in available-for-sale securities as of September 30, 2009 and December 31, 2008: September 30, 2009(1) December 31, 2008(2) Cost Unrealized Unrealized Fair Cost Unrealized Unrealized Fair Basis Gains Losses Value Basis Gains Losses Value Debt securities (In millions) FirstEnergy(3) $ 576 $ 25 $ - $ 601 $ 1,078 $ 56 $ - $ 1,134 FES 7 1 - 8 401 28 - 429 OE 2 - - 2 86 9 - 95 TE - - - - 66 8 - 74 J

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
Derivative Instruments [Abstract]
5. DERIVATIVE INSTRUMENTS	5. 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 uses a variety of derivative instruments, including forward contracts, options, futures contracts and swaps. The derivatives are used for risk management purposes. In addition to derivatives, FirstEnergy also enters into master netting agreements with certain third parties. FirstEnergy's Risk Policy Committee, comprised of members of senior management, provides general management oversight for risk management activities throughout FirstEnergy. The 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 practices. FirstEnergy accounts for derivative instruments on its Consolidated Balance Sheets at fair value unless they meet the normal purchase and normal sales criteria. Derivatives that meet those criteria are accounted for at cost. The changes in the fair value of derivative instruments that do not meet the normal purchase and normal sales criteria are included in other expense, unrealized gain (loss) on derivative hedges in other comprehensive income (loss), or as part of the value of the hedged item. Interest Rate Derivatives Under the revolving credit facility, FirstEnergy, and its subsidiaries, incur variable interest charges based on LIBOR. FirstEnergy currently holds swaps with a notional value of $200 million to hedge against changes in associated interest rates. Hedges with a notional value of $100 million expire in November 2009 and $100 million expire in January 2010. The swaps are accounted for as cash flow hedges. As of September 30, 2009, the fair value of outstanding swaps was $(2) million. FirstEnergy uses forward starting swap agreements to hedge a portion of the consolidated interest rate risk associated with issuances of fixed-rate, long-term debt securities of its subsidiaries. These derivatives are 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. For the three months and nine months ended September 30, 2009, FirstEnergy terminated forward swaps with a notional value of $2.3 billion and $2.4 billion, respectively. FirstEnergy recognized losses of approximately $17 million and $18 million, respectively - of which the ineffective portion recognized as an adjustment to interest expense was immaterial. The remaining effective portions will be amortized to interest expense over the life of the hedged debt. As of September 30, 2009 and December 31, 2008, the fair value of outstanding interest rate derivatives was $(2) million and $(3) million, respectively. Interest rate derivatives are included in "Other Noncurrent Liabilities" on FirstEnergy's consolidated balance sheets. The effects of interest rate derivatives on the consolidated sta

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS
	9 Months Ended Sep. 30, 2009 USD / shares
Pension and Other Postretirement Benefits [Abstract]
6. PENSION AND OTHER POSTRETIREMENT BENEFITS	6. PENSION AND OTHER POSTRETIREMENT 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. FirstEnergy's funding policy is based on actuarial computations using the projected unit credit method. FirstEnergy uses a December 31 measurement date for its pension and other postretirement benefit plans. The fair value of the plan assets represents the actual market value as of December 31. FirstEnergy also 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 available upon retirement to employees hired prior to January 1, 2005, their dependents and, under certain circumstances, their survivors. FirstEnergy recognizes the expected cost of providing pension benefits and other postretirement benefits from the time employees are hired until they become eligible to receive those benefits. In addition, FirstEnergy has obligations to former or inactive employees after employment, but before retirement, for disability-related benefits. On June 2, 2009, FirstEnergy amended its health care benefits plan (Plan) for all employees and retirees eligible to participate in the Plan. The Plan amendment, which reduces future health care coverage subsidies paid by FirstEnergy on behalf of participants, triggered a remeasurement of FirstEnergy's other postretirement benefit plans as of May 31, 2009. As a result of the remeasurement, the Plan's discount rate was revised to 7.5% while the expected long-term rate of return on assets remained at 9%. The remeasurement and Plan amendment increased FirstEnergy's AOCI by approximately $449 million ($252 million, net of tax) in the second quarter of 2009 and reduced FirstEnergy's 2009 net postretirement benefit cost (including amounts capitalized) by $48 million, including $27 million applicable to the first nine months of 2009. In the third quarter of 2009, FirstEnergy incurred a $13 million net postretirement benefit cost (including amounts capitalized) related to an additional liability created by the VERO offered by FirstEnergy to qualified employees. The special termination benefits of the VERO included additional health care coverage subsidies paid by FirstEnergy to those qualified employees who elected to retire. A total of 715 employees accepted the VERO. On September 2, 2009, the Utilities and ATSI made a $500 million voluntary contribution to the FirstEnergy Corp. Pension Plan (Pension Plan). Due to the significance of the voluntary contribution, FirstEnergy elected to remeasure its Pension Plan as of August 31, 2009. As a result of the remeasurement, the Pension Plan's discount rate was revised to 6% while the expected long-term rate of return on assets remained at 9%. The remeasurement and voluntary contribution decreased FirstEnergy's AOCI by approximately $494 million ($304 million, net of tax) in the third quarter of

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES
	9 Months Ended Sep. 30, 2009 USD / shares
Schedule of Variable Interest Entities [Abstract]
7. VARIABLE INTEREST ENTITIES	7. VARIABLE INTEREST ENTITIES FirstEnergy and its subsidiaries consolidate VIEs when they are determined to be the VIE's primary beneficiary. FirstEnergy and its subsidiaries reflect the portion of VIEs not owned by them in the caption noncontrolling interest within the consolidated financial statements. The change in noncontrolling interest within the consolidated balance sheets is the result of net losses of the noncontrolling interests ($14 million), the acquisition of additional interest in certain joint ventures ($13 million), and distributions to owners ($4 million). Mining Operations On July 16, 2008, FEV entered into a joint venture with the Boich Companies, a Columbus, Ohio-based coal company, to acquire a majority stake in the Signal Peak mining and coal transportation operations near Roundup, Montana. FEV made a $125 million equity investment in the joint venture, which acquired 80% of the mining operations (Signal Peak Energy, LLC) and 100% of the transportation operations, with FEV owning a 45% economic interest and an affiliate of the Boich Companies owning a 55% economic interest in the joint venture. Both parties have a 50% voting interest in the joint venture. In March 2009, FEV agreed to pay a total of $8.5 million to affiliates of the Boich Companies to purchase an additional 5% economic interest in the Signal Peak mining and coal transportation operations. Voting interests remained unchanged after the sale was completed in July 2009. Effective August 21, 2009, the joint venture acquired the remaining 20% stake in the mining operations by issuing a five-year note for $47.5 million. FEV consolidates the mining and transportation operations of this joint venture in its financial statements. Trusts FirstEnergy's consolidated financial statements include PNBV and Shippingport, VIEs created in 1996 and 1997, respectively, to refinance debt originally issued in connection with sale and leaseback transactions. PNBV and Shippingport financial data are included in the consolidated financial statements of OE and CEI, respectively. PNBV was established to purchase a portion of the lease obligation bonds issued in connection with OE's 1987 sale and leaseback of its interests in the Perry Plant and Beaver Valley Unit 2. OE used debt and available funds to purchase the notes issued by PNBV 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. Shippingport was established to purchase all of the lease obligation bonds issued in connection with CEI's and TE's Bruce Mansfield Plant sale and leaseback transaction in 1987. CEI and TE used debt and available funds to purchase the notes issued by Shippingport. Loss Contingencies FES and the Ohio Companies are exposed to losses under their applicable sale-leaseback agreements upon the occurrence of certain contingent events that each company considers unlikely to occur. The maximum exposure under these provisions represents the net amount of casualty value payments due upon the occurrence of specified casualty events that render the applicable plant

INCOME TAXES

INCOME TAXES
	9 Months Ended Sep. 30, 2009 USD / shares
Income Tax [Abstract]
8. INCOME TAXES	8. INCOME TAXES FirstEnergy accounts for uncertainty in income taxes recognized in its financial statements. Accounting guidance prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken on a company's tax return. Upon completion of the federal tax examination for the 2007 tax year in the first quarter of 2009, FirstEnergy recognized $13 million in tax benefits, which favorably affected FirstEnergy's effective tax rate. Material changes to FirstEnergy's unrecognized tax benefits during the third quarter of 2009 are described further below. Upon completion of the federal tax examinations for tax years 2004 to 2006 in the third quarter of 2008, FirstEnergy recognized approximately $45 million in tax benefits, including $5 million that favorably affected FirstEnergy's effective tax rate. A majority of the tax benefits recognized in the third quarter of 2008 adjusted goodwill as a purchase accounting adjustment ($20 million) and accumulated deferred income taxes for temporary tax items ($15 million). As of September 30, 2009, FirstEnergy expects that $197 million of unrecognized benefits will be resolved within the next twelve months, of which approximately $148 million, if recognized, would affect FirstEnergy's effective tax rate. The potential decrease in the amount of unrecognized tax benefits is primarily associated with issues related to the capitalization of certain costs, gains and losses recognized on the disposition of assets and various other tax items. The Company 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 tax return. FirstEnergy includes net interest and penalties in the provision for income taxes. The reversal of accrued interest associated with the $45 million in recognized tax benefits in 2008 favorably affected FirstEnergy's effective tax rate by $12 million in the third quarter and first nine months of 2008. During the first nine months of 2009, there were no material changes to the amount of interest accrued. The net amount of accumulated interest accrued as of September 30, 2009 was $67million, as compared to $59 million as of December 31, 2008. In 2008, FirstEnergy, on behalf of FGCO and NGC, filed a change in accounting method related to the costs to repair and maintain electric generation stations. During the second quarter of 2009, the IRS approved the change in accounting method and $281 million of costs were included as a repair deduction in FirstEnergy's 2008 consolidated tax return. Since the IRS did not complete its review over this change in accounting method by the extended filing date of FirstEnergy's federal tax return, FirstEnergy increased the amount of unrecognized tax benefits by $34 million in the third quarter of 2009, with a corresponding adjustment to accumulated deferred income taxes for this temporary tax item. There was no impact on FirstEnergy's effective tax rate for the quarter. Fir

COMMITMENTS, GUARANTEES AND CON

COMMITMENTS, GUARANTEES AND CONTINGENCIES
	9 Months Ended Sep. 30, 2009 USD / shares
Commitments, Guarantees and Contingencies [Abstract]
9. COMMITMENTS, GUARANTEES AND CONTIGENCIES	9. COMMITMENTS, GUARANTEES AND CONTINGENCIES (A) GUARANTEES AND OTHER ASSURANCES As part of normal business activities, FirstEnergy enters into various agreements on behalf of its subsidiaries to provide financial or performance assurances to third parties. These agreements include contract guarantees, surety bonds and LOCs. As of September 30, 2009, outstanding guarantees and other assurances aggregated approximately $4.1 billion, consisting primarily of parental guarantees ($1 billion), subsidiaries' guarantees ($2.6 billion), surety bonds ($0.1 billion) and LOCs ($0.4 billion). FirstEnergy guarantees energy and energy-related payments of its subsidiaries involved in energy commodity activities principally to facilitate or hedge normal physical transactions involving electricity, gas, emission allowances and coal. FirstEnergy also provides guarantees to various providers of credit support for the financing or refinancing by subsidiaries of costs related to the acquisition of property, plant and equipment. These agreements obligate FirstEnergy to fulfill the obligations of those subsidiaries directly involved in energy and energy-related transactions or financing where the law might otherwise limit the counterparties' claims. If demands of a counterparty were to exceed the ability of a subsidiary to satisfy existing obligations, FirstEnergy's guarantee enables the counterparty's legal claim to be satisfied by other FirstEnergy assets. The likelihood is remote that such parental guarantees of $0.4 billion (included in the $1 billion shown above) as of September 30, 2009 would increase amounts otherwise payable by FirstEnergy to meet its obligations incurred in connection with financings and ongoing energy and energy-related activities. While these types of guarantees are normally parental commitments for the future payment of subsidiary obligations, subsequent to the occurrence of a credit rating downgrade or "material adverse event," the immediate posting of cash collateral, provision of an LOC or accelerated payments may be required of the subsidiary. As of September 30, 2009, FirstEnergy's maximum exposure under these collateral provisions was $616 million, consisting of $53 million due to "material adverse event" contractual clauses and $563 million due to a below investment grade credit rating. Additionally, stress case conditions of a credit rating downgrade or "material adverse event" and hypothetical adverse price movements in the underlying commodity markets would increase this amount to $699 million, consisting of $60 million due to "material adverse event" contractual clauses and $639 million due to a below investment grade credit rating. Most of FirstEnergy's surety bonds are backed by various indemnities common within the insurance industry. Surety bonds and related guarantees of $103 million provide additional assurance to outside parties that contractual and statutory obligations will be met in a number of areas including construction contracts, environmental commitments and various retail transactions. In addition to guarantees and surety bonds, FES' contracts, including power contracts with affiliates awarded through competit

REGULATORY MATTERS

REGULATORY MATTERS
	9 Months Ended Sep. 30, 2009 USD / shares
Public Utilities [Abstract]
10. REGULATORY MATTERS	10. REGULATORY MATTERS (A) RELIABILITY INITIATIVES In 2005, Congress amended the Federal Power Act to provide for federally-enforceable mandatory reliability standards. The mandatory reliability standards apply to the bulk power system and impose certain operating, record-keeping and reporting requirements on the Utilities and ATSI. The NERC is charged with establishing and enforcing these reliability standards, although it has delegated day-to-day implementation and enforcement of its responsibilities to eight regional entities, including ReliabilityFirst Corporation. All of FirstEnergy's facilities are located within the ReliabilityFirst region. FirstEnergy actively participates in the NERC and ReliabilityFirst stakeholder processes, and otherwise monitors and manages its companies in response to the ongoing development, implementation and enforcement of the reliability standards. FirstEnergy believes that it is in compliance with all currently-effective and enforceable reliability standards. Nevertheless, it is clear that the NERC, ReliabilityFirst and the FERC will continue to refine existing reliability standards as well as to develop and adopt new reliability standards. The financial impact of complying with new or amended standards cannot be determined at this time. However, the 2005 amendments to the Federal Power Act provide that all prudent costs incurred to comply with the new reliability standards be recovered in rates. Still, any future inability on FirstEnergy's part to comply with the reliability standards for its bulk power system could result in the imposition of financial penalties and thus have a material adverse effect on its financial condition, results of operations and cash flows. In April 2007, ReliabilityFirst performed a routine compliance audit of FirstEnergy's bulk-power system within the MISO region and found it to be in full compliance with all audited reliability standards. Similarly, in October 2008, ReliabilityFirst performed a routine compliance audit of FirstEnergy's bulk-power system within the PJM region and found it to be in full compliance with all audited reliability standards. On December 9, 2008, a transformer at JCP&L's Oceanview substation failed, resulting in an outage on certain bulk electric system (transmission voltage) lines out of the Oceanview and Atlantic substations, with customers in the affected area losing power. Power was restored to most customers within a few hours and to all customers within eleven hours. On December 16, 2008, JCP&L provided preliminary information about the event to certain regulatory agencies, including the NERC. On March 31, 2009, the NERC initiated a Compliance Violation Investigation in order to determine JCP&L's contribution to the electrical event and to review any potential violation of NERC Reliability Standards associated with the event. The initial phase of the investigation required JCP&L to respond to the NERC's request for factual data about the outage. JCP&L submitted its written response on May 1, 2009. The NERC conducted on site interviews with personnel involved in responding to the event on June 16-17, 2009. On July 7, 2009, the NERC issued additio

NEW ACCOUNTING STANDARDS AND IN

NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
	9 Months Ended Sep. 30, 2009 USD / shares
[NewAccountingPronouncementsAndChangesInAccountingPrinciplesAbstract]
11. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS	11. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS In December 2008, the FASB issued a standard on an employer's disclosures about assets of a defined benefit pension or other postretirement plan. Requirements include disclosures about investment policies and strategies, categories of plan assets, fair value measurements of plan assets, and significant categories of risk. This standard is effective for fiscal years ending after December 15, 2009. FirstEnergy will expand its disclosures related to postretirement benefit plan assets. In June 2009, the FASB amended the derecognition guidance in the Transfers and Servicing Topic of the FASB Accounting Standards Codification and eliminated the concept of a QSPE. The amended guidance requires an evaluation of all existing QSPEs to determine whether they must be consolidated. This standard is effective for financial asset transfers that occur in fiscal years beginning after November 15, 2009. FirstEnergy does not expect this standard to have a material effect upon its financial statements. In June 2009, the FASB amended the consolidation guidance applied to VIEs. This standard replaces the quantitative approach previously required to determine which entity has a controlling financial interest in a VIE with a qualitative approach. Under the new approach, the primary beneficiary of a VIE is the entity that has both (a) the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and (b) the obligation to absorb losses of the entity, or the right to receive benefits from the entity, that could be significant to the VIE. This standard also requires ongoing reassessments of whether an entity is the primary beneficiary of a VIE and enhanced disclosures about an entity's involvement in VIEs. The standard is effective for fiscal years beginning after November 15, 2009. FirstEnergy is currently evaluating the impact of adopting this standard on its financial statements. In August 2009, the FASB updated the Fair Value Measurement and Disclosures Topic, which provides guidance in determining fair value when a quoted price in an active market for an identical liability is not available. In such instances, an entity should measure fair value using one of the following approaches; (i) the quoted price of an identical liability when traded as an asset; (ii) the quoted price of a similar liability or a similar liability traded as an asset; (iii) a technique based on the amount an entity would pay to transfer the identical liability; or (iv) a technique based on the amount an entity would receive to enter into an identical liability. This standard is effective for the first reporting period, including interim periods, beginning after issuance, or October 1, 2009, for FirstEnergy. FirstEnergy does not expect this standard to have a material effect upon its financial statements.

SEGMENT INFORMATION

SEGMENT INFORMATION
	9 Months Ended Sep. 30, 2009 USD / shares
Segment Information [Abstract]
12. SEGMENT INFORMATION	12. SEGMENT INFORMATION FirstEnergy has three reportable operating segments: energy delivery services, competitive energy services and Ohio transitional generation services. The assets and revenues for all other business operations are below the quantifiable threshold for operating segments for separate disclosure as "reportable operating segments." FES and the Utilities do not have separate reportable operating segments. The energy delivery services segment designs, constructs, operates and maintains FirstEnergy's regulated transmission and distribution systems and is responsible for the regulated generation commodity operations of FirstEnergy's Pennsylvania and New Jersey electric utility subsidiaries. Its revenues are primarily derived from the delivery of electricity, cost recovery of regulatory assets, and default service electric generation sales to non-shopping customers in its Pennsylvania and New Jersey franchise areas. Its results reflect the commodity costs of securing electric generation from FES under Met-Ed's and Penelec's partial requirements purchased power agreements and from non-affiliated power suppliers as well as the net PJM transmission expenses related to the delivery of that generation load. The competitive energy services segment supplies electric power to its electric utility affiliates, provides competitive electricity sales primarily in Ohio, Pennsylvania, Maryland, Michigan and Illinois, owns or leases and operates FirstEnergy's generating facilities and purchases electricity to meet its sales obligations. The segment's net income is primarily derived from affiliated and non-affiliated electric generation sales revenues less the related costs of electricity generation, including purchased power and net transmission (including congestion) and ancillary costs charged by PJM and MISO to deliver electricity to the segment's customers. The segment's internal revenues represent sales to its affiliates in Ohio and Pennsylvania. The Ohio transitional generation services segment represents the generation commodity operations of FirstEnergy's Ohio electric utility subsidiaries. Its revenues are primarily derived from electric generation sales to non-shopping customers under the PLR obligations of the Ohio Companies. Its results reflect the purchase of electricity from third parties and the competitive energy services segment through a CBP, the deferral and amortization of certain fuel costs authorized for recovery by the energy delivery services segment and the net MISO transmission revenues and expenses related to the delivery of generation load. This segment's total assets consist primarily of accounts receivable for generation revenues from retail customers.Segment Financial Information Ohio Energy Competitive Transitional Delivery Energy Generation Reconciling Three Months Ended Services Services Services Other Adjustments Consolidated (In millions) September 30, 2009 External revenues $2,203 $490 $739 $6 $(30) $3,408 Internal revenues - 617 - - (617) - Total revenues 2,203 1,107 739 6 (647) 3,408 Depreciation and amortization 356 69 17 3 4 449 Investment income 46 159 - - (14) 191 Net interest charges 117 28 - 2 173 32

GOODWILL

GOODWILL
	9 Months Ended Sep. 30, 2009 USD / shares
Goodwill [Abstract]
3. GOODWILL	3. GOODWILL In a business combination, the excess of the purchase price over the estimated fair values of assets acquired and liabilities assumed is recognized as goodwill. FirstEnergy evaluates its goodwill for impairment at least annually and more frequently as indicators of impairment arise. FirstEnergy's 2009 annual evaluation was completed in the third quarter of 2009 with no impairment indicated.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
[DocumentInformationLineItems]
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009
[EntityInformationLineItems]
Entity Registrant Name	FirstEnergy Corp.
Entity Central Index Key	0001031296
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$13,901,101,386
Entity Common Stock Shares Outstanding	304,835,407