EXHIBIT 99.1
FirstEnergy Corp. For Release: September 14, 2004
76 South Main Street
Akron, Ohio 44308
www.firstenergycorp.com
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News Media Contact: Investor Relations Contact:
Ellen Raines Kurt Turosky
(330) 384-5808 (330) 384-5500
FIRSTENERGY SUBSIDIARIES TO CONTRIBUTE $500 MILLION
TO PENSION PLAN
FirstEnergy Corp. (NYSE: FE) today announced that its subsidiaries will
make a voluntary $500-million contribution to their pension plan, which will
help add security to future plan benefits.
According to President and Chief Executive Officer Anthony J.
Alexander, "In evaluating the future needs of the plan, we determined that it
made sense to take this step now to help keep the plan sound for employees and
retirees."
FirstEnergy said that the net after-tax cost of the contribution will
be approximately $300 million, and that it will be accretive to earnings over
the next three years. In addition, the contribution is expected to reduce
FirstEnergy's overall risk profile, because it mitigates uncertainty regarding
the plan's unfunded liability.
Economic conditions over the past several years have adversely affected
the net value of most pension plans, including FirstEnergy's. Current rules
governing pension funding would likely have required a contribution in 2006.
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FirstEnergy is a registered public utility holding company
headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in
the generation, transmission and distribution of electricity; marketing of
natural gas; and energy management and other energy-related services.
Forward-Looking Statement: This news release includes forward-looking statements
based on information currently available to management. Such statements are
subject to certain risks and uncertainties. These statements typically contain,
but are not limited to, the terms "anticipate", "potential", "expect",
"believe", "estimate" and similar words. Actual results may differ materially
due to the speed and nature of increased competition and deregulation in the
electric utility industry, economic or weather conditions affecting future sales
and margins, changes in markets for energy services, changing energy and
commodity market prices, replacement power costs being higher than anticipated
or inadequately hedged, maintenance costs being higher than anticipated,
legislative and regulatory changes (including revised environmental
requirements), adverse regulatory or legal decisions and the outcome of
governmental investigations (including revocation of necessary licenses or
operating permits), availability and cost of capital, the continuing
availability and operation of generating units, the inability to accomplish or
realize anticipated benefits of strategic goals, the ability to improve electric
commodity margins and to experience growth in the distribution business, the
ability to access the public securities markets, further investigation into the
causes of the August 14, 2003 regional power outage and the outcome, cost and
other effects of present and potential legal and administrative proceedings and
claims related to that outage, the final outcome in the proceeding related to
the Company's Application for a Rate Stabilization Plan, the risks and other
factors discussed from time to time in the Company's Securities and Exchange
Commission filings, including its annual report on Form 10-K (as amended) for
the year ended December 31, 2003, and its Form 10-Q for the quarter ended June
30, 2004, and other similar factors. The Company expressly disclaims any current
intention to update any forward-looking statements contained in this document as
a result of new information, future events, or otherwise.
(091404)
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