Ohio Edison 10-Q 4 May 10 2010 Q1 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010		3 Months Ended Mar. 31, 2009
REVENUES:
Electric utilities	$2,543		$3,020
Unregulated businesses	756		314
Total revenues	3,299	[1]	3,334	[1]
EXPENSES:
Fuel	334		312
Purchased power	1,238		1,143
Other operating expenses	701		827
Provision for depreciation	193		177
Amortization of regulatory assets	212		411
Deferral of new regulatory assets	0		(93)
General taxes	205		211
Total expenses	2,883		2,988
OPERATING INCOME	416		346
OTHER INCOME (EXPENSE):
Investment income (loss), net	16		(11)
Interest expense	(213)		(194)
Capitalized interest	41		28
Total other expense	(156)		(177)
INCOME BEFORE INCOME TAXES	260		169
INCOME TAXES	111		54
NET INCOME	149		115
Noncontrolling interest loss	(6)		(4)
EARNINGS AVAILABLE TO FIRSTENERGY CORP.	$155		$119
BASIC EARNINGS PER SHARE OF COMMON STOCK	0.51		0.39
WEIGHTED AVERAGE NUMBER OF BASIC SHARES OUTSTANDING	304		304
DILUTED EARNINGS PER SHARE OF COMMON STOCK	0.51		0.39
WEIGHTED AVERAGE NUMBER OF DILUTED SHARES OUTSTANDING	306		306
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	0.55		0.55
[1]Includes $109 million of excise tax collections

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$149	$115
OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefits	13	35
Unrealized gain on derivative hedges	4	15
Change in unrealized gain on available-for-sale securities	6	(5)
Other comprehensive income	23	45
Income tax expense related to other comprehensive income	7	15
Other comprehensive income, net of tax	16	30
COMPREHENSIVE INCOME	165	145
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST	(6)	(4)
COMPREHENSIVE INCOME ATTRIBUTABLE TO FIRSTENERGY CORP.	$171	$149

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
CURRENT ASSETS:
Cash and cash equivalents	$310	$874
Receivables-
Customers	1,255	1,244
Other	140	153
Materials and supplies, at average cost	699	647
Prepaid taxes	236	248
Other	214	154
Total current assets	2,854	3,320
PROPERTY, PLANT AND EQUIPMENT:
In service	27,980	27,826
Less - Accumulated provision for depreciation	11,554	11,397
Total in service, net of accumulated depreciation	16,426	16,429
Construction work in progress	2,931	2,735
Total property, plant and equipment	19,357	19,164
INVESTMENTS:
Nuclear plant decommissioning trusts	1,882	1,859
Investments in lease obligation bonds	495	543
Other	609	621
Total investments	2,986	3,023
DEFERRED CHARGES AND OTHER ASSETS:
Goodwill	5,575	5,575
Regulatory assets	2,398	2,356
Power purchase contract asset	148	200
Other	760	666
Total deferred charges and other assets	8,881	8,797
Total assets	34,078	34,304
CURRENT LIABILITIES:
Currently payable long-term debt	1,783	1,834
Short-term borrowings	886	1,181
Accounts payable	772	829
Accrued taxes	266	314
Other	1,179	1,130
Total current liabilities	4,886	5,288
Common stockholders' equity-
Common stock	31	31
Other paid-in capital	5,432	5,448
Accumulated other comprehensive loss	(1,399)	(1,415)
Retained earnings	4,482	4,495
Total common stockholders' equity	8,546	8,559
Noncontrolling interest	(11)	(2)
Total equity	8,535	8,557
Long-term debt and other long-term obligations	11,847	11,908
Total capitalization	20,382	20,465
NONCURRENT LIABILITIES:
Accumulated deferred income taxes	2,602	2,468
Asset retirement obligations	1,449	1,425
Deferred gain on sale and leaseback transaction	984	993
Power purchase contract liability	738	643
Retirement benefits	1,527	1,534
Lease market valuation liability	251	262
Other	1,259	1,226
Total noncurrent liabilities	8,810	8,551
Total liabilities and capitalization	$34,078	$34,304

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Receivables-
Accumulated provision for uncollectible accounts - customers	$36	$33
Accumulated provision for uncollectible accounts - other	$7	$7
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 (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$149	$115
Adjustments to reconcile net income to net cash from operating activities-
Provision for depreciation	193	177
Amortization of regulatory assets	212	411
Deferral of new regulatory assets	0	(93)
Nuclear fuel and lease amortization	41	27
Deferred purchased power and other costs	(77)	(62)
Deferred income taxes and investment tax credits, net	59	(28)
Investment impairment	10	36
Deferred rents and lease market valuation liability	(17)	(14)
Stock-based compensation	(15)	(13)
Accrued compensation and retirement benefits	(81)	(66)
Commodity derivative transactions, net	33	16
Cash collateral paid	(46)	(15)
Decrease (increase) in operating assets-
Receivables	2	46
Materials and supplies	(42)	(7)
Prepayments and other current assets	33	(71)
Increase (decrease) in operating liabilities-
Accounts payable	(57)	(90)
Accrued taxes	7	(51)
Accrued interest	66	118
Other	36	26
Net cash provided from operating activities	506	462
New Financing-
Long-term debt	0	700
Redemptions and Repayments-
Long-term debt	(109)	(444)
Short-term borrowings, net	(295)	0
Common stock dividend payments	(168)	(168)
Other	(22)	(18)
Net cash provided from (used for) financing activities	(594)	70
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(508)	(654)
Proceeds from asset sales	114	8
Sales of investment securities held in trusts	733	567
Purchases of investment securities held in trusts	(755)	(584)
Customer Intangibles	(101)	0
Cash investments	49	17
Other	(8)	(32)
Net cash used for investing activities	(476)	(678)
Net change in cash and cash equivalents	(564)	(146)
Cash and cash equivalents at beginning of period	874	545
Cash and cash equivalents at end of year	$310	$399

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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, JCPL, 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 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 December31, 2009 for FirstEnergy, FES and the Utilities, as applicable. 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 when it is determined that it is the primary beneficiary (see Note6). Investments in affiliates over which FirstEnergy and its subsidiaries have the ability to exercise significant influence, but 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.

EARNINGS PER SHARE

EARNINGS PER SHARE
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
EARNINGS PER SHARE	2.EARNINGS PER SHARE Basic earnings per share of common stock is 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 Reconciliation of Basic and Diluted Earnings per Share March 31 of Common Stock 2010 2009 (In millions, except per share amounts) Earnings available to FirstEnergy Corp. $ 155 $ 119 Weighted average number of basic shares outstanding 304 304 Assumed exercise of dilutive stock options and awards 2 2 Weighted average number of diluted shares outstanding 306 306 Basic earnings per share of common stock $ 0.51 $ 0.39 Diluted earnings per share of common stock $ 0.51 $ 0.39

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	3. 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 March31, 2010 and December 31, 2009: March 31, 2010 December 31, 2009 Carrying Fair Carrying Fair Value Value Value Value (In millions) FirstEnergy $ 13,581 $ 14,373 $ 13,753 $ 14,502 FES 4,224 4,366 4,224 4,306 OE 1,167 1,293 1,169 1,299 CEI 1,853 2,018 1,873 2,032 TE 600 639 600 638 JCPL 1,833 1,932 1,840 1,950 Met-Ed 742 808 842 909 Penelec 1,144 1,186 1,144 1,177 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. Available-For-Sale Securities The following table summarizes the amortized cost basis, unrealized gains and losses and fair values of investments held in nuclear decommissioning trusts, nuclear fuel disposal trusts and NUG trusts as of March31, 2010 and December 31, 2009: March 31, 2010(1) December 31, 2009(2) Cost Unrealized Unrealized Fair Cost Unrealized Unrealized Fair Basis Gains Losses Value Basis Gains Losses Value Debt securities (In millions) FirstEnergy $ 1,741 $ 23 $ - $ 1,764 $ 1,727 $ 22 $ - $ 1,749 FES 1,052 8 - 1,060 1,043 3 - 1,046 OE 55 - - 55 55 - - 55 TE 72 - - 72 72 - - 72 JCPL 264 8 - 272 271 9 - 280 Met-Ed 127 3 - 130 120 5 - 125 Penelec 171 4 - 175 166 5 - 171 Equity securities FirstEnergy $ 268 $ 42 $ - $

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
DERIVATIVE INSTRUMENTS	4. 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 under the accrual method of accounting. The changes in the fair value of derivative instruments that do not meet the normal purchase and normal sales criteria are included in purchased power, other expense, unrealized gain (loss) on derivative hedges in other comprehensive income (loss), or as part of the value of the hedged item. A hypothetical 10% adverse shift (an increase or decrease depending on the derivative position) in quoted market prices in the near term on its derivative instruments would not have had a material effect on FirstEnergys consolidated financial position (assets, liabilities and equity) or cash flows as of March31, 2010. Based on derivative contracts held as of March 31, 2010, an adverse 10% change in commodity prices would decrease net income by approximately $4million during the next 12 months. A hypothetical 10% increase in the interest rates associated with variable-rate debt would decrease net income by approximately $2 million for the three months ended March31, 2010. Cash Flow Hedges FirstEnergy used 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 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. During the first three months of 2010, FirstEnergy terminated forward swaps with a notional value of $100million. The termination of the forward starting swap agreements did not materially impact FirstEnergys net income and no forward starting swap agreements were outstanding as of March31, 2010. 32 The table below provides the activity of AOCL related to interest rate cash flow hedges as of March 31, 2010 and 2009, which is inclusive of changes in fair value of interest rate cash flow hedges and the reclassification from AOCL into results

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITS	5. 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. FirstEnergys net pension and OPEB expenses (benefits) for the three months ended March31, 2010 and 2009 were $24million and $43million, respectively. The components of FirstEnergy's net pension and other postretirement benefit costs (including amounts capitalized) for the three months ended March31, 2010 and 2009, consisted of the following: Three Months Ended March 31 Pension Benefits 2010 2009 (In millions) Service cost $ 25 $ 22 Interest cost 78 80 Expected return on plan assets (90 ) (81 ) Amortization of prior service cost 3 3 Recognized net actuarial loss 47 42 Net periodic cost $ 63 $ 66 35 Three Months Ended March 31 Other Postretirement Benefits 2010 2009 (In millions) Service cost $ 2 $ 5 Interest cost 11 20 Expected return on plan assets (9 ) (9 ) Amortization of prior service cost (48 ) (38 ) Recognized net actuarial loss 15 16 Net periodic credit $ (29 ) $ (6 ) Pension and other postretirement benefit obligations are allocated to FirstEnergy's subsidiaries employing the plan participants. The net periodic pension costs and net periodic other postretirement benefit costs (including amounts capitalized) recognized by FES and each of the Utilities for the three months ended March31, 2010 and 2009 were as follows: Three Months Ended March 31 Pension Benefit Cost 2010 2009 (In millions) FES $ 22 $ 18 OE 6 7 CEI 5 5 TE 2 2 JCPL 6 9 Met-Ed 2 6 Penelec 5 4 Other FirstEnergy subsidiaries 15 15 $ 63 $ 66 Three Months Ended March 31 Other Postretirement Benefit Cost (Credit) 2010 2009 (In millions) FES $ (7 ) $ (1 ) OE (6 ) (2 ) CEI (1 ) 1 TE (1 ) 1 JCPL (2 ) (1 ) Met-Ed (2 ) (1 ) Penelec (2 ) - Other FirstEnergy subsidiaries (8 ) (3 ) $ (29 ) $ (6 )

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
VARIABLE INTEREST ENTITIES	6. VARIABLE INTEREST ENTITIES On January 1, 2010, FirstEnergy adopted the amendments to the consolidation topic addressing VIEs. This standard requires that FirstEnergy and its subsidiaries perform a qualitative analysis to determine whether a variable interest gives FE or its subsidiaries a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both the power to direct the activities of a VIE that most significantly impact the entitys economic performance and 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. This standard also requires an ongoing reassessment of the primary beneficiary of a VIE and eliminates the quantitative approach previously required for determining whether an entity is the primary beneficiary. There was no impact to FirstEnergy or its subsidiaries as a result of the adoption of this standard. FirstEnergys consolidated financial statements include the accounts of entities in which it has a controlling financial interest. 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 ($6million) and distributions to owners ($3million). FirstEnergy has financial control through disproportionate economics in its equity investments and loans to certain VIEs, which include FEVs joint venture in the Signal Peak mining and coal transportation operations, the PNBV and Shippingport bond trusts that were created to refinance debt originally issued in connection with sale and leaseback transactions, and wholly owned limited liability companies of JCPL created to sell transition bonds to securitize the recovery of JCPL's bondable stranded costs associated with the previously divested Oyster Creek Nuclear Generating Station, of which $333 million was outstanding as of March 31, 2010. As a result, FirstEnergy consolidates these VIEs. 36 In order to evaluate contracts under the consolidation guidance, FirstEnergy aggregated contracts into two categories based on similar risk characteristics and significance as follows: Power Purchase Agreements FirstEnergy evaluated its power purchase agreements and determined that certain NUG entities may be VIEs to the extent they own a plant that sells substantially all of its output to the Utilities and the contract price for power is correlated with the plant's variable costs of production. FirstEnergy, through its subsidiaries JCPL, Met-Ed and Penelec, maintains 20 long-term power purchase agreements with NUG entities. The agreements were entered into pursuant to the Public Utility Regulatory Policies Act of 1978. FirstEnergy was not involved in the creation of, and has no equity or debt invested in, these entities. FirstEnergy has determined that for all but two of these entities, neither JCPL, nor Met-Ed nor Penelec have variable int

INCOME TAXES

INCOME TAXES
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
INCOME TAXES	7. 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. After reaching a tentative agreement with the IRS on a tax item at appeals related to the capitalization of certain costs, FirstEnergy reduced the amount of unrecognized tax benefits by $57million, with a corresponding adjustment to accumulated deferred income taxes for this temporary tax item. There was no impact on FirstEnergys effective tax rate for this tax item for the first three months of 2010. Upon completion of the federal tax examination for the 2007 tax year in the first quarter of 2009, FirstEnergy recognized $13million in tax benefits, which favorably affected FirstEnergy's effective tax rate. As of March 31, 2010, it is reasonably possible that approximately $107million of the unrecognized benefits may be resolved within the next twelve months, of which approximately $12million, 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. 37 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 $57 million in recognized tax benefits in 2010 favorably affected FirstEnergys effective tax rate by $5 million in the first quarter of 2010. During the first three months of 2009, there were no material changes to the amount of interest accrued. The net amount of accumulated interest accrued as of March31, 2010 was $20million, as compared to $21million as of December31, 2009. As a result of the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act signed into law on March23, 2010 and March 30, 2010, respectively, beginning in 2013 the tax deduction available to FirstEnergy will be reduced to the extent that drug costs are reimbursed under the Medicare Part D retiree subsidy program. As retiree healthcare liabilities and related tax impacts are already reflected in FirstEnergys consolidated financial statements, the change resulted in a charge to FirstEnergys earnings in the first quarter of 2010 of approximately $12.6million and a reduction in accumulated deferred tax assets associated with these subsidies.This change reflects the anticipated increase in income taxes that will occur as a result of the change in tax law. FirstEnergy has tax returns that are under review at the audit or appeals level by the IRS and state tax authorities. All state jurisdictions are

COMMITMENTS, GUARANTEES AND CON

COMMITMENTS, GUARANTEES AND CONTINGENCIES
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
COMMITMENTS, GUARANTEES AND CONTINGENCIES	8. 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 March31, 2010, outstanding guarantees and other assurances aggregated approximately $4.0billion, consisting primarily of parental guarantees ($1.0billion), subsidiaries guarantees ($2.6billion), surety bonds and LOCs ($0.4billion). 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 legally 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 $0.3billion (included in the $1.0billion discussed above) as of March31, 2010 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 a LOC or accelerated payments may be required of the subsidiary. On February11, 2010, SP issued a report lowering FirstEnergys and its subsidiaries credit ratings by one notch, while maintaining its stable outlook. As a result, FirstEnergy was required to post $46million of collateral. Moodys and Fitch affirmed the ratings and stable outlook of FirstEnergy and its subsidiaries. As of March31, 2010, FirstEnergy's maximum exposure under these collateral provisions was $428million, consisting of $37million due to material adverse event contractual clauses, $63million due to an acceleration of payment or funding obligation, and $328million due to a below investment grade credit rating that includes the $46million related to the credit rating downgrade by SP. 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 $656million, consisting of $38million due to material adverse event contractual clauses, $63 million related to an acceleration of payment or funding obligation, and $555million due to a below investment grade credit rat

REGULATORY MATTERS

REGULATORY MATTERS
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
REGULATORY MATTERS	9. REGULATORY MATTERS (A)RELIABILITY INITIATIVES In 2005, Congress amended the FPA 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 FirstEnergys 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. 45 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 FPA provide that all prudent costs incurred to comply with the new reliability standards be recovered in rates. Still, any future inability on FirstEnergys part to comply with the reliability standards for its bulk power 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. In April 2007, ReliabilityFirst performed a routine compliance audit of FirstEnergys bulk-power system within the Midwest ISO 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 FirstEnergys bulk-power system within the PJM region and found it to be in full compliance with all audited reliability standards. FirstEnergys MISO facilities are next due for the periodic audit by ReliabilityFirst later this year. On December 9, 2008, a transformer at JCPLs 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 December16, 2008, JCPL 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 JCPLs 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 JCPL to respond to the NERCs request for factual data about the outage. JCPL submitted its written response on May1, 2009. The NERC conducted on site interviews with personnel involved in re

NEW ACCOUNTING STANDARDS AND IN

NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS	10. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS In 2010, the FASB amended the Derivatives and Hedging Topic of the FASB Accounting Standards Codification to clarify the scope exception for embedded credit derivative features related to the transfer of credit risk in the form of subordination of one financial instrument to another. The amendment addresses how to determine which embedded credit derivative features, including those in collateralized debt obligations and synthetic collateralized debt obligations, are considered to be embedded derivatives that should not be analyzed under the Derivatives and Hedging Topic for potential bifurcation and separate accounting. The amendment is effective for the first fiscal quarter beginning after June15, 2010. FirstEnergy does not expect this standard to have a material effect on its financial statements.

SEGMENT INFORMATION

SEGMENT INFORMATION
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
SEGMENT INFORMATION	11. SEGMENT INFORMATION Financial information for each of FirstEnergys reportable segments is presented in the following table. FES and the Utilities do not have separate reportable operating segments. With the completion of transition to a fully competitive generation market in Ohio in the fourth quarter of 2009, the former Ohio Transitional Generation Services segment was combined with the Energy Delivery Services segment, consistent with how management views the business. Disclosures for FirstEnergys operating segments for 2009 have been reclassified to conform to the current presentation. The energy delivery services segment transmits and distributes electricity through FirstEnergys eight utility operating companies, serving 4.5million customers within 36,100 square miles of Ohio, Pennsylvania and New Jersey and purchases power for its PLR and default service requirements in Ohio, Pennsylvania and New Jersey. Its revenues are primarily derived from the delivery of electricity within FirstEnergys service areas, cost recovery of regulatory assets and the sale of electric generation service to retail customers who have not selected an alternative supplier (default service) in its Ohio, Pennsylvania and New Jersey franchise areas. Its results reflect the commodity costs of securing electric generation from FES and from non-affiliated power suppliers, the net PJM and MISO transmission expenses related to the delivery of the respective generation loads, and the deferral and amortization of certain fuel costs. The competitive energy services segment supplies electric power to end-use customers through retail and wholesale arrangements, including associated company power sales to meet all or a portion of the PLR and default service requirements of FirstEnergy's Ohio and Pennsylvania utility subsidiaries and competitive retail sales to customers primarily in Ohio, Pennsylvania, Maryland and Michigan. This business segment owns or leases and operates 19 generating facilities with a net demonstrated capacity of 13,710MWs and also purchases electricity to meet 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 energy to the segments customers. 54 The other segment contains corporate items and other businesses that are below the quantifiable threshold for separate disclosure as a reportable segment. Segment Financial Information Energy Competitive Delivery Energy Reconciling Three Months Ended Services Services Other Adjustments Consolidated (In millions) March 31, 2010 External revenues $ 2,543 $ 716 $ 4 $ (31 ) $ 3,232 Internal revenues - 674 - (607 ) 67 Total revenues 2,543 1,390 4 (638 ) 3,299 Depreciation and amortization 325 66 13 1 405 Investment income (loss), net 25 1 - (10 ) 16 Net interest charges 123 33

SUPPLEMENTAL GUARANTOR INFORMAT

SUPPLEMENTAL GUARANTOR INFORMATION
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
SUPPLEMENTAL GUARANTOR INFORMATION	12. SUPPLEMENTAL GUARANTOR INFORMATION On July 13, 2007, FGCO completed a sale and leaseback transaction for its 93.825% undivided interest in Bruce Mansfield Unit1. FES has fully, unconditionally and irrevocably guaranteed all of FGCO's obligations under each of the leases. The related lessor notes and pass through certificates are not guaranteed by FES or FGCO, 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 under GAAP for FES and FirstEnergy and as a financing for FGCO. The condensed consolidating statements of income for the three-months ended March31, 2010 and 2009, consolidating balance sheets as of March31, 2010 and December 31, 2009 and consolidating statements of cash flows for the three months ended March31, 2010 and 2009 for FES (parent and guarantor), FGCO and NGC (non-guarantor) are presented below. Investments in wholly owned subsidiaries are accounted for by FES using the equity method. Results of operations for FGCO and NGC 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. 55 FIRSTENERGY SOLUTIONS CORP. CONDENSED CONSOLIDATING STATEMENTS OF INCOME (Unaudited) For the Three Months Ended March 31, 2010 FES FGCO NGC Eliminations Consolidated (In thousands) REVENUES $ 1,367,025 $ 568,364 $ 426,320 $ (973,616 ) $ 1,388,093 EXPENSES: Fuel 5,097 280,863 42,261 - 328,221 Purchased power from affiliates 968,537 5,079 60,953 (973,616 ) 60,953 Purchased power from non-affiliates 450,215 - - - 450,215 Other operating expenses 53,126 99,776 139,420 12,189 304,511 Provision for depreciation 790 26,527 36,910 (1,309 ) 62,918 General taxes 5,498 14,600 6,648 - 26,746 Total expenses 1,483,263 426,845 286,192 (962,736 ) 1,233,564 OPERATING INCOME (LOSS) (116,238 ) 141,519 140,128 (10,880 ) 154,529 OTHER INCOME (EXPENSE): Investment income 1,897 54 (1,234 ) - 717 Miscellaneous income (expense), including net income from equity investees 166,373 (1,633 ) (101 ) (163,329 ) 1,310 Interest expense to affiliates (58 ) (1,812 ) (435 ) - (2,305 ) Interest expense - other (23,373 ) (26,506 ) (15,763 ) 15,998 (49,644 ) Capitalized interest 100 16,333 3,257 - 19,690 Total other income (expense) 144,939 (13,564 ) (14,276 ) (147,331 ) (30,232 ) INCOME BEFORE INCOME TAXES 28,701 127,955 125,852 (158,211 ) 124,297 INCOME TAXES (BENEFITS) (51,225 ) 48,043 45,013 2,540 44,371 NET INCOME $ 79,926

INTANGIBLE ASSETS

INTANGIBLE ASSETS
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
INTANGIBLE ASSETS	13. INTANGIBLE ASSETS FES has acquired certain customer contract rights, which were capitalized as intangible assets.These rights allow FES to supply electric generation needs to customers and are being amortized ratably over the term of the related contracts.Net intangible assets of $114million are included in other assets on the FirstEnergy Consolidated Balance Sheet as of March31, 2010. For the three months ended March 31, 2010, amortization expense was approximately $3 million.

PROPOSED MERGER WITH ALLEGHENY

PROPOSED MERGER WITH ALLEGHENY ENERGY, INC.
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
PROPOSED MERGER WITH ALLEGHENY ENERGY, INC.	14. PROPOSED MERGER WITH ALLEGHENY ENERGY, INC. As previously disclosed, on February 10, 2010, FirstEnergy entered into an Agreement and Plan of Merger (Merger Agreement) with Element Merger Sub, Inc., a Maryland corporation and its wholly-owned subsidiary (Merger Sub) and Allegheny Energy, Inc., a Maryland corporation (Allegheny Energy). Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Allegheny Energy with Allegheny Energy continuing as the surviving corporation and a wholly-owned subsidiary of FirstEnergy.Pursuant to the Merger Agreement, upon the closing of the merger, each issued and outstanding share of Allegheny Energy common stock, including grants of restricted common stock, will automatically be converted into the right to receive 0.667 of a share of common stock of FirstEnergy and Allegheny Energy stockholders will own approximately 27% of the combined company.The Merger Agreement was unanimously approved by both companies Boards of Directors. Pursuant to the Merger Agreement, completion of the merger is conditioned upon, among other things, shareholder approval of both companies, the SECs clearance of a registration statement registering the FirstEnergy common stock to be issued in connection with the merger, as well as expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approval by the FERC, the Maryland Public Service Commission, PPUC, the Virginia State Corporation Commission and the West Virginia Public Service Commission.The Merger Agreement also contains certain termination rights for both FirstEnergy and Allegheny Energy, and further provides for the payment of fees and expenses upon termination under specified circumstances. On March23, 2010, FirstEnergy filed with the SEC a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus relating to the proposed merger (Registration Statement).After the Registration Statement has been declared effective by the SEC, FirstEnergy and Allegheny Energy expect to send the joint proxy statement/prospectus contained in the Registration Statement to their respective shareholders and each hold a special shareholder meeting to approve proposals related to the merger. The companies expect to make their filing with the FERC under Section 203 of the FPA and the applications for clearance under HSR in May 2010. Applications for state regulatory approval in Pennsylvania, Maryland, West Virginia and Virginia are expected to be filed in the second quarter of 2010. In connection with the proposed merger, during the first quarter of 2010, FirstEnergy recorded approximately $14.2million ($9.6million after tax) of expenses associated with merger transactions costs. These costs are expensed as incurred. FirstEnergy and Allegheny Energy currently anticipate completing the merger in the first half of 2011. Although FirstEnergy and Allegheny Energy believe that they will receive the required authorizations, approvals and consents to complete the merger, there can be no assurance as to the timing of these authorizatio

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document Information [Text Block]
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	3 Months Ended Mar. 31, 2010
Entity [Text Block]
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	$11,883,746,668
Entity Common Stock Shares Outstanding	304,835,407
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1