þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission | Registrant; State of Incorporation; | I.R.S. Employer | ||
File Number | Address; and Telephone Number | Identification No. | ||
333-21011 | FIRSTENERGY CORP. | 34-1843785 | ||
(An Ohio Corporation) | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
000-53742 | FIRSTENERGY SOLUTIONS CORP. | 31-1560186 | ||
(An Ohio Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-2578 | OHIO EDISON COMPANY (An Ohio Corporation) |
34-0437786 | ||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-2323 | THE CLEVELAND ELECTRIC ILLUMINATING COMPANY | 34-0150020 | ||
(An Ohio Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-3583 | THE TOLEDO EDISON COMPANY | 34-4375005 | ||
(An Ohio Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-3141 | JERSEY CENTRAL POWER & LIGHT COMPANY | 21-0485010 | ||
(A New Jersey Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-446 | METROPOLITAN EDISON COMPANY | 23-0870160 | ||
(A Pennsylvania Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-3522 | PENNSYLVANIA ELECTRIC COMPANY | 25-0718085 | ||
(A Pennsylvania Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 |
Yes þ No o
|
FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company |
Yes þ No o
|
FirstEnergy Corp. |
Yes o No o
|
FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company, and Pennsylvania Electric Company |
Large Accelerated Filer þ
|
FirstEnergy Corp. | |
Accelerated Filer o
|
N/A | |
Non-accelerated Filer (Do not check
if a smaller reporting company)
þ
|
FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company |
Smaller Reporting Company o
|
N/A |
Yes o No þ
|
FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company |
OUTSTANDING | ||||
CLASS | AS OF JULY 31, 2010 | |||
FirstEnergy Corp., $10 par value |
304,835,407 | |||
FirstEnergy Solutions Corp., no par value |
7 | |||
Ohio Edison Company, no par value |
60 | |||
The Cleveland Electric Illuminating Company, no par value |
67,930,743 | |||
The Toledo Edison Company, $5 par value |
29,402,054 | |||
Jersey Central Power & Light Company, $10 par value |
13,628,447 | |||
Metropolitan Edison Company, no par value |
859,500 | |||
Pennsylvania Electric Company, $20 par value |
4,427,577 |
| The speed and nature of increased competition in the electric utility industry and
legislative and regulatory changes affecting how generation rates will be determined
following the expiration of existing rate plans in Pennsylvania. |
||
| The impact of the regulatory process on the pending matters in Ohio, Pennsylvania and
New Jersey. |
||
| Business and regulatory impacts from ATSIs realignment into PJM. |
||
| Economic or weather conditions affecting future sales and margins. |
||
| Changes in markets for energy services. |
||
| Changing energy and commodity market prices and availability. |
||
| Replacement power costs being higher than anticipated or inadequately hedged. |
||
| The continued ability of FirstEnergys regulated utilities to recover regulatory assets
or increased costs. |
||
| Operation and maintenance costs being higher than anticipated. |
||
| Other legislative and regulatory changes, and revised environmental requirements,
including possible GHG emission regulations. |
||
| The potential impacts of the proposed rules promulgated by EPA on July 6, 2010, in
response to the U.S. Court of Appeals July 11, 2008 decision requiring revisions to the
CAIR rules. |
||
| The uncertainty of the timing and amounts of the capital expenditures needed to, among
other things, implement the Air Quality Compliance Plan (including that such amounts could
be higher than anticipated or that certain generating units may need to be shut down) or
levels of emission reductions related to the Consent Decree resolving the NSR litigation or
other potential similar regulatory initiatives or actions. |
||
| Adverse regulatory or legal decisions and outcomes (including, but not limited to, the
revocation of necessary licenses or operating permits and oversight) by the NRC. |
||
| Ultimate resolution of Met-Eds and Penelecs TSC filings with the PPUC. |
||
| The continuing availability of generating units and their ability to operate at or near
full capacity. |
||
| The ability to comply with applicable state and federal reliability standards and energy
efficiency mandates. |
||
| The ability to accomplish or realize anticipated benefits from strategic goals
(including employee workforce initiatives). |
||
| The ability to improve electric commodity margins and to experience growth in the
distribution business. |
||
| The changing market conditions that could affect the value of assets held in the
registrants nuclear decommissioning trusts, pension trusts and other trust funds, and
cause FirstEnergy to make additional contributions sooner, or in amounts that are larger
than currently anticipated. |
||
| The ability to access the public securities and other capital and credit markets in
accordance with FirstEnergys financing plan and the cost of such capital. |
||
| Changes in general economic conditions affecting the registrants. |
||
| The state of the capital and credit markets affecting the registrants. |
||
| Interest rates and any actions taken by credit rating agencies that could negatively
affect the registrants access to financing or their costs and increase requirements to
post additional collateral to support outstanding commodity positions, LOCs and other
financial guarantees. |
||
| The state of the national and regional economies and associated impacts on the
registrants major industrial and commercial customers. |
||
| Issues concerning the soundness of financial institutions and counterparties with which
the registrants do business. |
||
| The expected timing and likelihood of completion of the proposed merger with Allegheny
Energy, Inc., including the timing, receipt and terms and conditions of any required
governmental and regulatory approvals of the proposed merger that could reduce anticipated
benefits or cause the parties to abandon the merger, the diversion of managements time and
attention from FirstEnergys ongoing business during this time period, the ability to
maintain relationships with customers, employees or suppliers as well as the ability to
successfully integrate the businesses and realize cost savings and any other synergies and
the risk that the credit ratings of the combined company or its subsidiaries may be
different from what the companies expect. |
||
| The risks and other factors discussed from time to time in the registrants SEC filings,
and other similar factors. |
Page | ||||||||
iii-v | ||||||||
FirstEnergy Corp. |
||||||||
1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
FirstEnergy Solutions Corp. |
||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
Ohio Edison Company |
||||||||
8 | ||||||||
9 | ||||||||
10 | ||||||||
The Cleveland Electric Illuminating Company |
||||||||
11 | ||||||||
12 | ||||||||
13 | ||||||||
The Toledo Edison Company |
||||||||
14 | ||||||||
15 | ||||||||
16 | ||||||||
Jersey Central Power & Light Company |
||||||||
17 | ||||||||
18 | ||||||||
19 | ||||||||
Metropolitan Edison Company |
||||||||
20 | ||||||||
21 | ||||||||
22 | ||||||||
Pennsylvania Electric Company |
||||||||
23 | ||||||||
24 | ||||||||
25 | ||||||||
Exhibit 12 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
i
Page | ||||
26 | ||||
65 | ||||
Managements Narrative Analysis of Results of Operations |
||||
103 | ||||
106 | ||||
108 | ||||
110 | ||||
112 | ||||
114 | ||||
116 | ||||
118 | ||||
118 | ||||
118 | ||||
119 | ||||
119 | ||||
119 | ||||
119 | ||||
120 | ||||
ii
ATSI
|
American Transmission Systems, Incorporated, owns and operates transmission facilities | |
CEI
|
The Cleveland Electric Illuminating Company, an Ohio electric utility operating subsidiary | |
FENOC
|
FirstEnergy Nuclear Operating Company, operates nuclear generating facilities | |
FES
|
FirstEnergy Solutions Corp., provides energy-related products and services | |
FESC
|
FirstEnergy Service Company, provides legal, financial and other corporate support services | |
FEV
|
FirstEnergy Ventures Corp., invests in certain unregulated enterprises and business ventures | |
FGCO
|
FirstEnergy Generation Corp., owns and operates non-nuclear generating facilities | |
FirstEnergy
|
FirstEnergy Corp., a public utility holding company | |
GPU
|
GPU, Inc., former parent of JCP&L, Met-Ed and Penelec, which merged with FirstEnergy on November 7, 2001 | |
JCP&L
|
Jersey Central Power & Light Company, a New Jersey electric utility operating subsidiary | |
Met-Ed
|
Metropolitan Edison Company, a Pennsylvania electric utility operating subsidiary | |
NGC
|
FirstEnergy Nuclear Generation Corp., owns nuclear generating facilities | |
OE
|
Ohio Edison Company, an Ohio electric utility operating subsidiary | |
Ohio Companies
|
CEI, OE and TE | |
Penelec
|
Pennsylvania Electric Company, a Pennsylvania electric utility operating subsidiary | |
Penn
|
Pennsylvania Power Company, a Pennsylvania electric utility operating subsidiary of OE | |
Pennsylvania Companies
|
Met-Ed, Penelec and Penn | |
PNBV
|
PNBV Capital Trust, a special purpose entity created by OE in 1996 | |
Shippingport
|
Shippingport Capital Trust, a special purpose entity created by CEI and TE in 1997 | |
Signal Peak
|
A joint venture between FirstEnergy Ventures Corp. and Boich Companies, that owns mining and coal transportation operations near Roundup, Montana | |
TE
|
The Toledo Edison Company, an Ohio electric utility operating subsidiary | |
Utilities
|
OE, CEI, TE, Penn, JCP&L, Met-Ed and Penelec |
AEP
|
American Electric Power Company, Inc. | |
ALJ
|
Administrative Law Judge | |
AOCL
|
Accumulated Other Comprehensive Loss | |
AQC
|
Air Quality Control | |
ARO
|
Asset Retirement Obligation | |
BGS CAA |
Basic Generation Service Clean Air Act |
|
CAIR
|
Clean Air Interstate Rule | |
CAMR
|
Clean Air Mercury Rule | |
CBP
|
Competitive Bid Process | |
CO2
|
Carbon Dioxide | |
CTC
|
Competitive Transition Charge | |
DOE
|
United States Department of Energy | |
DOJ
|
United States Department of Justice | |
DPA
|
Department of the Public Advocate, Division of Rate Counsel (New Jersey) | |
EDCP
|
Executive Deferred Compensation Plan | |
EE&C
|
Energy Efficiency and Conservation | |
EMAAC
|
Eastern Mid-Atlantic Area Council | |
EMP
|
Energy Master Plan | |
EPA
|
United States Environmental Protection Agency | |
EPRI
|
Electric Power Research Institute |
iii
ESP
|
Electric Security Plan | |
FASB
|
Financial Accounting Standards Board | |
FERC
|
Federal Energy Regulatory Commission | |
FMB
|
First Mortgage Bond | |
FPA
|
Federal Power Act | |
FRR
|
Fixed Resource Requirement | |
GAAP
|
Generally Accepted Accounting Principles in the United States | |
GHG
|
Greenhouse Gases | |
IRS
|
Internal Revenue Service | |
JOA
|
Joint Operating Agreement | |
kV
|
Kilovolt | |
KWH
|
Kilowatt-hours | |
LED
|
Light-Emitting Diode | |
LOC
|
Letter of Credit | |
MAAC
|
Mid-Atlantic Area Council | |
MACT
|
Maximum Achievable Control Technology | |
MDPSC
|
Maryland Public Service Commission | |
MISO
|
Midwest Independent Transmission System Operator, Inc. | |
Moodys
|
Moodys Investors Service, Inc. | |
MRO
|
Market Rate Offer | |
MW
|
Megawatts | |
MWH
|
Megawatt-hours | |
NAAQS
|
National Ambient Air Quality Standards | |
NERC
|
North American Electric Reliability Corporation | |
NJBPU
|
New Jersey Board of Public Utilities | |
NNSR
|
Non-Attainment New Source Review | |
NOAC
|
Northwest Ohio Aggregation Coalition | |
NOPEC
|
Northeast Ohio Public Energy Council | |
NOV
|
Notice of Violation | |
NOX
|
Nitrogen Oxide | |
NRC
|
Nuclear Regulatory Commission | |
NSR
|
New Source Review | |
NUG
|
Non-Utility Generation | |
NUGC
|
Non-Utility Generation Charge | |
OCI
|
Other Comprehensive Income | |
OPEB
|
Other Post-Employment Benefits | |
OVEC
|
Ohio Valley Electric Corporation | |
PCRB
|
Pollution Control Revenue Bond | |
PJM
|
PJM Interconnection L. L. C. | |
POLR
|
Provider of Last Resort; an electric utilitys obligation to provide generation service to customers whose alternative supplier fails to deliver service | |
PPUC
|
Pennsylvania Public Utility Commission | |
PSCWV
|
Public Service Commission of West Virginia | |
PSA
|
Power Supply Agreement | |
PSD
|
Prevention of Significant Deterioration | |
PPUC
|
Pennsylvania Public Utility Commission | |
PUCO
|
Public Utilities Commission of Ohio | |
RCP
|
Rate Certainty Plan | |
RECs
|
Renewable Energy Credits | |
RFP
|
Request for Proposal | |
RPM
|
Reliability Pricing Model | |
RTEP
|
Regional Transmission Expansion Plan | |
RTC
|
Regulatory Transition Charge | |
RTO
|
Regional Transmission Organization | |
S&P
|
Standard & Poors Ratings Service | |
SB221
|
Amended Substitute Senate Bill 221 | |
SBC
|
Societal Benefits Charge |
iv
SEC
|
U.S. Securities and Exchange Commission | |
SIP
|
State Implementation Plan(s) Under the Clean Air Act | |
SNCR
|
Selective Non-Catalytic Reduction | |
SO2
|
Sulfur Dioxide | |
TBC
|
Transition Bond Charge | |
TMI-2
|
Three Mile Island Unit 2 | |
TSC
|
Transmission Service Charge | |
VIE
|
Variable Interest Entity | |
VSCC
|
Virginia State Corporation Commission | |
VIE
|
Variable Interest Entity |
v
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
REVENUES: |
||||||||||||||||
Electric utilities |
$ | 2,373 | $ | 2,791 | $ | 4,916 | $ | 5,811 | ||||||||
Unregulated businesses |
755 | 480 | 1,511 | 794 | ||||||||||||
Total revenues* |
3,128 | 3,271 | 6,427 | 6,605 | ||||||||||||
EXPENSES: |
||||||||||||||||
Fuel |
350 | 276 | 684 | 588 | ||||||||||||
Purchased power |
1,052 | 1,024 | 2,290 | 2,167 | ||||||||||||
Other operating expenses |
673 | 612 | 1,374 | 1,439 | ||||||||||||
Provision for depreciation |
190 | 185 | 383 | 362 | ||||||||||||
Amortization of regulatory assets |
161 | 233 | 373 | 642 | ||||||||||||
Deferral of new regulatory assets |
| (45 | ) | | (136 | ) | ||||||||||
General taxes |
176 | 184 | 381 | 395 | ||||||||||||
Total expenses |
2,602 | 2,469 | 5,485 | 5,457 | ||||||||||||
OPERATING INCOME |
526 | 802 | 942 | 1,148 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
31 | 27 | 47 | 16 | ||||||||||||
Interest expense |
(207 | ) | (206 | ) | (420 | ) | (400 | ) | ||||||||
Capitalized interest |
40 | 33 | 81 | 61 | ||||||||||||
Total other expense |
(136 | ) | (146 | ) | (292 | ) | (323 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
390 | 656 | 650 | 825 | ||||||||||||
INCOME TAXES |
134 | 248 | 245 | 302 | ||||||||||||
NET INCOME |
256 | 408 | 405 | 523 | ||||||||||||
Noncontrolling interest loss |
(9 | ) | (6 | ) | (15 | ) | (10 | ) | ||||||||
EARNINGS AVAILABLE TO FIRSTENERGY CORP. |
$ | 265 | $ | 414 | $ | 420 | $ | 533 | ||||||||
BASIC EARNINGS PER SHARE OF COMMON STOCK |
$ | 0.87 | $ | 1.36 | $ | 1.38 | $ | 1.75 | ||||||||
WEIGHTED AVERAGE NUMBER OF BASIC SHARES OUTSTANDING |
304 | 304 | 304 | 304 | ||||||||||||
DILUTED EARNINGS PER SHARE OF COMMON STOCK |
$ | 0.87 | $ | 1.36 | $ | 1.37 | $ | 1.75 | ||||||||
WEIGHTED AVERAGE NUMBER OF DILUTED SHARES OUTSTANDING |
305 | 305 | 305 | 306 | ||||||||||||
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK |
$ | | $ | | $ | 0.55 | $ | 0.55 | ||||||||
* | Includes excise tax collections of $99 million and $95 million in the three months ended June 30,
2010 and 2009, respectively, and $208 million and $204 million in the six months ended June 30,
2010 and 2009, respectively. |
1
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In millions) | ||||||||||||||||
NET INCOME |
$ | 256 | $ | 408 | $ | 405 | $ | 523 | ||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
17 | 469 | 30 | 504 | ||||||||||||
Unrealized gain on derivative hedges |
6 | 23 | 10 | 38 | ||||||||||||
Change in unrealized gain on available-for-sale securities |
6 | 37 | 12 | 32 | ||||||||||||
Other comprehensive income |
29 | 529 | 52 | 574 | ||||||||||||
Income tax expense related to other comprehensive income |
9 | 227 | 16 | 242 | ||||||||||||
Other comprehensive income, net of tax |
20 | 302 | 36 | 332 | ||||||||||||
COMPREHENSIVE INCOME |
276 | 710 | 441 | 855 | ||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE
TO NONCONTROLLING INTEREST |
(9 | ) | (6 | ) | (15 | ) | (10 | ) | ||||||||
COMPREHENSIVE INCOME AVAILABLE TO FIRSTENERGY CORP. |
$ | 285 | $ | 716 | $ | 456 | $ | 865 | ||||||||
2
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(In millions) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 281 | $ | 874 | ||||
Receivables- |
||||||||
Customers
(less allowances of $33 million in 2010 and 2009) |
1,409 | 1,244 | ||||||
Other (less allowances of $7 million in 2010 and 2009) |
146 | 153 | ||||||
Materials and supplies, at average cost |
675 | 647 | ||||||
Prepaid taxes |
397 | 248 | ||||||
Other |
206 | 154 | ||||||
3,114 | 3,320 | |||||||
PROPERTY, PLANT AND EQUIPMENT: |
||||||||
In service |
28,274 | 27,826 | ||||||
Less Accumulated provision for depreciation |
11,724 | 11,397 | ||||||
16,550 | 16,429 | |||||||
Construction work in progress |
3,000 | 2,735 | ||||||
19,550 | 19,164 | |||||||
INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
1,880 | 1,859 | ||||||
Investments in lease obligation bonds |
486 | 543 | ||||||
Other |
589 | 621 | ||||||
2,955 | 3,023 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
5,575 | 5,575 | ||||||
Regulatory assets |
2,313 | 2,356 | ||||||
Power purchase contract asset |
134 | 200 | ||||||
Other |
825 | 666 | ||||||
8,847 | 8,797 | |||||||
$ | 34,466 | $ | 34,304 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 1,571 | $ | 1,834 | ||||
Short-term borrowings |
1,463 | 1,181 | ||||||
Accounts payable |
848 | 829 | ||||||
Accrued taxes |
256 | 314 | ||||||
Other |
907 | 1,130 | ||||||
5,045 | 5,288 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, $0.10 par value, authorized 375,000,000 shares-
304,835,407 shares outstanding |
31 | 31 | ||||||
Other paid-in capital |
5,440 | 5,448 | ||||||
Accumulated other comprehensive loss |
(1,379 | ) | (1,415 | ) | ||||
Retained earnings |
4,747 | 4,495 | ||||||
Total common stockholders equity |
8,839 | 8,559 | ||||||
Noncontrolling interest |
(20 | ) | (2 | ) | ||||
Total equity |
8,819 | 8,557 | ||||||
Long-term debt and other long-term obligations |
11,861 | 11,908 | ||||||
20,680 | 20,465 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
2,710 | 2,468 | ||||||
Retirement benefits |
1,531 | 1,534 | ||||||
Asset retirement obligations |
1,372 | 1,425 | ||||||
Deferred gain on sale and leaseback transaction |
976 | 993 | ||||||
Power purchase contract liability |
691 | 643 | ||||||
Lease market valuation liability |
239 | 262 | ||||||
Other |
1,222 | 1,226 | ||||||
8,741 | 8,551 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 8) |
||||||||
$ | 34,466 | $ | 34,304 | |||||
3
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
(In millions) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 405 | $ | 523 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
383 | 362 | ||||||
Amortization of regulatory assets |
373 | 642 | ||||||
Deferral of new regulatory assets |
| (136 | ) | |||||
Nuclear fuel and lease amortization |
76 | 52 | ||||||
Deferred purchased power and other costs |
(146 | ) | (135 | ) | ||||
Deferred income taxes and investment tax credits, net |
159 | 69 | ||||||
Investment impairment |
19 | 39 | ||||||
Deferred rents and lease market valuation liability |
(62 | ) | (59 | ) | ||||
Stock-based compensation |
(6 | ) | (2 | ) | ||||
Accrued compensation and retirement benefits |
(27 | ) | (93 | ) | ||||
Interest rate swap transactions |
43 | | ||||||
Commodity derivative transactions, net |
(29 | ) | 18 | |||||
Cash collateral received (paid), net |
(63 | ) | 48 | |||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
(156 | ) | 32 | |||||
Materials and supplies |
(17 | ) | 6 | |||||
Prepayments and other current assets |
(81 | ) | (179 | ) | ||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
18 | (11 | ) | |||||
Accrued taxes |
(58 | ) | (101 | ) | ||||
Other |
27 | 27 | ||||||
Net cash provided from operating activities |
858 | 1,102 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Long-term debt |
| 1,679 | ||||||
Short-term borrowings, net |
281 | | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(407 | ) | (881 | ) | ||||
Common stock dividend payments |
(335 | ) | (335 | ) | ||||
Other |
(23 | ) | (37 | ) | ||||
Net cash provided from (used for) financing activities |
(484 | ) | 426 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(997 | ) | (1,143 | ) | ||||
Proceeds from asset sales |
116 | 19 | ||||||
Sales of investment securities held in trusts |
1,915 | 1,001 | ||||||
Purchases of investment securities held in trusts |
(1,934 | ) | (1,041 | ) | ||||
Customer acquisition costs |
(105 | ) | | |||||
Cash investments |
59 | 40 | ||||||
Other |
(21 | ) | (49 | ) | ||||
Net cash used for investing activities |
(967 | ) | (1,173 | ) | ||||
Net change in cash and cash equivalents |
(593 | ) | 355 | |||||
Cash and cash equivalents at beginning of period |
874 | 545 | ||||||
Cash and cash equivalents at end of period |
$ | 281 | $ | 900 | ||||
4
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales to affiliates |
$ | 538,545 | $ | 839,751 | $ | 1,145,847 | $ | 1,732,441 | ||||||||
Electric sales to non-affiliates |
728,803 | 205,379 | 1,397,488 | 485,125 | ||||||||||||
Other |
47,326 | 296,022 | 159,432 | 349,692 | ||||||||||||
Total revenues |
1,314,674 | 1,341,152 | 2,702,767 | 2,567,258 | ||||||||||||
EXPENSES: |
||||||||||||||||
Fuel |
342,411 | 270,309 | 670,632 | 576,467 | ||||||||||||
Purchased power from affiliates |
68,898 | 51,249 | 129,851 | 114,456 | ||||||||||||
Purchased power from non-affiliates |
298,820 | 185,613 | 749,035 | 345,955 | ||||||||||||
Other operating expenses |
303,895 | 278,264 | 608,406 | 585,620 | ||||||||||||
Provision for depreciation |
63,319 | 65,548 | 126,237 | 126,921 | ||||||||||||
General taxes |
22,272 | 21,285 | 49,018 | 44,661 | ||||||||||||
Total expenses |
1,099,615 | 872,268 | 2,333,179 | 1,794,080 | ||||||||||||
OPERATING INCOME |
215,059 | 468,884 | 369,588 | 773,178 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income (loss) |
13,366 | 5,643 | 14,083 | (23,231 | ) | |||||||||||
Miscellaneous income |
4,393 | 7,622 | 5,703 | 10,133 | ||||||||||||
Interest expense to affiliates |
(2,560 | ) | (3,315 | ) | (4,865 | ) | (6,294 | ) | ||||||||
Interest expense other |
(51,372 | ) | (26,271 | ) | (101,016 | ) | (48,798 | ) | ||||||||
Capitalized interest |
23,905 | 14,028 | 43,595 | 24,106 | ||||||||||||
Total other expense |
(12,268 | ) | (2,293 | ) | (42,500 | ) | (44,084 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
202,791 | 466,591 | 327,088 | 729,094 | ||||||||||||
INCOME TAXES |
68,866 | 169,189 | 113,237 | 261,011 | ||||||||||||
NET INCOME |
133,925 | 297,402 | 213,851 | 468,083 | ||||||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
885 | 72,121 | (8,949 | ) | 74,689 | |||||||||||
Unrealized gain on derivative hedges |
3,017 | 15,041 | 4,291 | 26,057 | ||||||||||||
Change in unrealized gain on available-for-sale securities |
6,060 | 39,504 | 11,088 | 38,027 | ||||||||||||
Other comprehensive income |
9,962 | 126,666 | 6,430 | 138,773 | ||||||||||||
Income tax expense related to other comprehensive income |
3,544 | 50,625 | 2,204 | 55,334 | ||||||||||||
Other comprehensive income, net of tax |
6,418 | 76,041 | 4,226 | 83,439 | ||||||||||||
TOTAL COMPREHENSIVE INCOME |
$ | 140,343 | $ | 373,443 | $ | 218,077 | $ | 551,522 | ||||||||
5
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 11 | $ | 12 | ||||
Receivables- |
||||||||
Customers (less accumulated provisions of $14,523,000 and $12,041,000,
respectively, for uncollectible accounts) |
315,178 | 195,107 | ||||||
Associated companies |
354,127 | 318,561 | ||||||
Other (less accumulated provisions of $6,702,000 for uncollectible accounts) |
36,392 | 51,872 | ||||||
Notes receivable from associated companies |
173,931 | 805,103 | ||||||
Materials and supplies, at average cost |
578,521 | 539,541 | ||||||
Prepayments and other |
172,514 | 107,782 | ||||||
1,630,674 | 2,017,978 | |||||||
PROPERTY, PLANT AND EQUIPMENT: |
||||||||
In service |
10,500,405 | 10,357,632 | ||||||
Less Accumulated provision for depreciation |
4,695,180 | 4,531,158 | ||||||
5,805,225 | 5,826,474 | |||||||
Construction work in progress |
2,622,865 | 2,423,446 | ||||||
8,428,090 | 8,249,920 | |||||||
INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
1,107,594 | 1,088,641 | ||||||
Other |
7,965 | 22,466 | ||||||
1,115,559 | 1,111,107 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Accumulated deferred income tax benefits |
| 86,626 | ||||||
Customer intangibles |
118,219 | 16,566 | ||||||
Goodwill |
24,248 | 24,248 | ||||||
Property taxes |
50,125 | 50,125 | ||||||
Unamortized sales and leaseback costs |
77,646 | 72,553 | ||||||
Other |
128,315 | 121,665 | ||||||
398,553 | 371,783 | |||||||
$ | 11,572,876 | $ | 11,750,788 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 1,381,783 | $ | 1,550,927 | ||||
Short-term borrowings- |
||||||||
Associated companies |
85,128 | 9,237 | ||||||
Other |
100,000 | 100,000 | ||||||
Accounts payable- |
||||||||
Associated companies |
412,507 | 466,078 | ||||||
Other |
236,720 | 245,363 | ||||||
Accrued taxes |
109,082 | 83,158 | ||||||
Other |
369,086 | 359,057 | ||||||
2,694,306 | 2,813,820 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, without par value, authorized 750 shares,
7 shares outstanding |
1,467,158 | 1,468,423 | ||||||
Accumulated other comprehensive loss |
(98,775 | ) | (103,001 | ) | ||||
Retained earnings |
2,363,000 | 2,149,149 | ||||||
Total common stockholders equity |
3,731,383 | 3,514,571 | ||||||
Long-term debt and other long-term obligations |
2,585,918 | 2,711,652 | ||||||
6,317,301 | 6,226,223 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Deferred gain on sale and leaseback transaction |
976,012 | 992,869 | ||||||
Accumulated deferred investment tax credits |
56,310 | 58,396 | ||||||
Asset retirement obligations |
863,409 | 921,448 | ||||||
Retirement benefits |
223,853 | 204,035 | ||||||
Property taxes |
50,125 | 50,125 | ||||||
Lease market valuation liability |
239,447 | 262,200 | ||||||
Other |
152,113 | 221,672 | ||||||
2,561,269 | 2,710,745 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 8) |
||||||||
$ | 11,572,876 | $ | 11,750,788 | |||||
6
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 213,851 | $ | 468,083 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
126,237 | 126,921 | ||||||
Nuclear fuel and lease amortization |
78,324 | 53,265 | ||||||
Deferred rents and lease market valuation liability |
(59,254 | ) | (55,493 | ) | ||||
Deferred income taxes and investment tax credits, net |
113,978 | 63,309 | ||||||
Investment impairment |
19,093 | 36,154 | ||||||
Accrued compensation and retirement benefits |
7,132 | (10,594 | ) | |||||
Commodity derivative transactions, net |
(29,308 | ) | 17,688 | |||||
Gain on asset sales |
(1,021 | ) | (9,635 | ) | ||||
Cash collateral, net |
(38,211 | ) | 40,471 | |||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
(192,792 | ) | 179,373 | |||||
Materials and supplies |
(28,470 | ) | 16,609 | |||||
Prepayments and other current assets |
24,518 | 7,555 | ||||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
(31,610 | ) | (102,907 | ) | ||||
Accrued taxes |
(8,462 | ) | (14,333 | ) | ||||
Accrued interest |
(457 | ) | 1,871 | |||||
Other |
24,907 | (6,121 | ) | |||||
Net cash provided from operating activities |
218,455 | 812,216 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Long-term debt |
| 681,675 | ||||||
Short-term borrowings, net |
75,891 | 145,009 | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(295,037 | ) | (622,853 | ) | ||||
Other |
(686 | ) | | |||||
Net cash provided from (used for) financing activities |
(219,832 | ) | 203,831 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(566,187 | ) | (634,967 | ) | ||||
Proceeds from asset sales |
115,657 | 15,771 | ||||||
Sales of investment securities held in trusts |
956,813 | 537,078 | ||||||
Purchases of investment securities held in trusts |
(978,785 | ) | (550,730 | ) | ||||
Loans from (to) associated companies, net |
631,172 | (241,170 | ) | |||||
Customer acquisition costs |
(104,795 | ) | | |||||
Leasehold improvement payments to associated companies |
(51,204 | ) | | |||||
Other |
(1,295 | ) | (22,034 | ) | ||||
Net cash provided from (used for) investing activities |
1,376 | (896,052 | ) | |||||
Net change in cash and cash equivalents |
(1 | ) | 119,995 | |||||
Cash and cash equivalents at beginning of period |
12 | 39 | ||||||
Cash and cash equivalents at end of period |
$ | 11 | $ | 120,034 | ||||
7
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 415,437 | $ | 647,224 | $ | 895,362 | $ | 1,367,235 | ||||||||
Excise and gross receipts tax collections |
23,949 | 24,948 | 52,424 | 53,928 | ||||||||||||
Total revenues |
439,386 | 672,172 | 947,786 | 1,421,163 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
114,414 | 314,870 | 250,271 | 647,206 | ||||||||||||
Purchased power from non-affiliates |
98,462 | 98,330 | 210,513 | 236,143 | ||||||||||||
Other operating expenses |
88,275 | 111,938 | 177,130 | 269,768 | ||||||||||||
Provision for depreciation |
22,014 | 21,996 | 43,894 | 43,509 | ||||||||||||
Amortization of regulatory assets, net |
9,424 | 22,295 | 38,769 | 42,506 | ||||||||||||
General taxes |
43,362 | 43,903 | 90,854 | 93,023 | ||||||||||||
Total expenses |
375,951 | 613,332 | 811,431 | 1,332,155 | ||||||||||||
OPERATING INCOME |
63,435 | 58,840 | 136,355 | 89,008 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
6,309 | 10,149 | 11,553 | 19,511 | ||||||||||||
Miscellaneous income |
1,295 | 2,681 | 1,003 | 1,871 | ||||||||||||
Interest expense |
(22,155 | ) | (21,469 | ) | (44,465 | ) | (44,756 | ) | ||||||||
Capitalized interest |
295 | 279 | 503 | 499 | ||||||||||||
Total other expense |
(14,256 | ) | (8,360 | ) | (31,406 | ) | (22,875 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
49,179 | 50,480 | 104,949 | 66,133 | ||||||||||||
INCOME TAXES |
11,856 | 16,852 | 31,465 | 20,857 | ||||||||||||
NET INCOME |
37,323 | 33,628 | 73,484 | 45,276 | ||||||||||||
Noncontrolling interest income |
130 | 143 | 262 | 289 | ||||||||||||
EARNINGS AVAILABLE TO PARENT |
$ | 37,193 | $ | 33,485 | $ | 73,222 | $ | 44,987 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 37,323 | $ | 33,628 | $ | 73,484 | $ | 45,276 | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS): |
||||||||||||||||
Pension and other postretirement benefits |
322 | 89,864 | 4,337 | 95,602 | ||||||||||||
Change in unrealized gain on available-for-sale securities |
520 | 728 | 811 | (1,981 | ) | |||||||||||
Other comprehensive income |
842 | 90,592 | 5,148 | 93,621 | ||||||||||||
Income tax expense (benefit) related to other |
||||||||||||||||
comprehensive income |
(26 | ) | 37,310 | 667 | 37,839 | |||||||||||
Other comprehensive income, net of tax |
868 | 53,282 | 4,481 | 55,782 | ||||||||||||
COMPREHENSIVE INCOME |
38,191 | 86,910 | 77,965 | 101,058 | ||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO
NONCONTROLLING INTEREST |
130 | 143 | 262 | 289 | ||||||||||||
COMPREHENSIVE INCOME AVAILABLE TO PARENT |
$ | 38,061 | $ | 86,767 | $ | 77,703 | $ | 100,769 | ||||||||
8
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 51,679 | $ | 324,175 | ||||
Receivables- |
||||||||
Customers (less accumulated provisions of $4,685,000 and $5,119,000,
respectively, for uncollectible accounts) |
202,983 | 209,384 | ||||||
Associated companies |
68,005 | 98,874 | ||||||
Other (less accumulated provisions of $6,000 and $18,000, respectively,
for uncollectible accounts) |
13,065 | 14,155 | ||||||
Notes receivable from associated companies |
106,232 | 118,651 | ||||||
Prepayments and other |
14,748 | 15,964 | ||||||
456,712 | 781,203 | |||||||
UTILITY PLANT: |
||||||||
In service |
3,086,689 | 3,036,467 | ||||||
Less Accumulated provision for depreciation |
1,189,802 | 1,165,394 | ||||||
1,896,887 | 1,871,073 | |||||||
Construction work in progress |
36,866 | 31,171 | ||||||
1,933,753 | 1,902,244 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Investment in lease obligation bonds |
204,812 | 216,600 | ||||||
Nuclear plant decommissioning trusts |
126,405 | 120,812 | ||||||
Other |
96,633 | 96,861 | ||||||
427,850 | 434,273 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Regulatory assets |
422,559 | 465,331 | ||||||
Pension assets |
36,199 | 19,881 | ||||||
Property taxes |
67,037 | 67,037 | ||||||
Unamortized sales and leaseback costs |
32,626 | 35,127 | ||||||
Other |
17,765 | 39,881 | ||||||
576,186 | 627,257 | |||||||
$ | 3,394,501 | $ | 3,744,977 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 7,975 | $ | 2,723 | ||||
Short-term borrowings- |
||||||||
Associated companies |
| 92,863 | ||||||
Other |
653 | 807 | ||||||
Accounts payable- |
||||||||
Associated companies |
54,891 | 102,763 | ||||||
Other |
31,087 | 40,423 | ||||||
Accrued taxes |
55,976 | 81,868 | ||||||
Accrued interest |
25,639 | 25,749 | ||||||
Other |
79,382 | 81,424 | ||||||
255,603 | 428,620 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, without par value, authorized 175,000,000 shares -
60 shares outstanding |
949,822 | 1,154,797 | ||||||
Accumulated other comprehensive loss |
(159,096 | ) | (163,577 | ) | ||||
Retained earnings |
58,112 | 29,890 | ||||||
Total common stockholders equity |
848,838 | 1,021,110 | ||||||
Noncontrolling interest |
6,100 | 6,442 | ||||||
Total equity |
854,938 | 1,027,552 | ||||||
Long-term debt and other long-term obligations |
1,152,303 | 1,160,208 | ||||||
2,007,241 | 2,187,760 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
678,669 | 660,114 | ||||||
Accumulated deferred investment tax credits |
10,882 | 11,406 | ||||||
Retirement benefits |
171,056 | 174,925 | ||||||
Asset retirement obligations |
81,941 | 85,926 | ||||||
Other |
189,109 | 196,226 | ||||||
1,131,657 | 1,128,597 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 8) |
||||||||
$ | 3,394,501 | $ | 3,744,977 | |||||
9
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 73,484 | $ | 45,276 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
43,894 | 43,509 | ||||||
Amortization of regulatory assets, net |
38,769 | 42,506 | ||||||
Purchased power cost recovery reconciliation |
(1,514 | ) | 11,068 | |||||
Amortization of lease costs |
(4,619 | ) | (4,540 | ) | ||||
Deferred income taxes and investment tax credits, net |
4,964 | (11,252 | ) | |||||
Accrued compensation and retirement benefits |
(16,154 | ) | (4,593 | ) | ||||
Accrued regulatory obligations |
(2,309 | ) | 18,350 | |||||
Electric service prepayment programs |
| (4,603 | ) | |||||
Cash collateral from suppliers |
1,215 | 6,380 | ||||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
49,250 | (16,509 | ) | |||||
Prepayments and other current assets |
5,072 | (6,290 | ) | |||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
(57,208 | ) | (4,820 | ) | ||||
Accrued taxes |
(25,685 | ) | (19,523 | ) | ||||
Accrued interest |
(110 | ) | 36 | |||||
Other |
(4 | ) | 10,086 | |||||
Net cash provided from operating activities |
109,045 | 105,081 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Long-term debt |
| 100,000 | ||||||
Short-term borrowings, net |
| 114,617 | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(2,957 | ) | (100,984 | ) | ||||
Short-term borrowings, net |
(93,017 | ) | | |||||
Common stock dividend payments |
(250,000 | ) | (125,000 | ) | ||||
Other |
(881 | ) | (1,627 | ) | ||||
Net cash used for financing activities |
(346,855 | ) | (12,994 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(71,698 | ) | (69,512 | ) | ||||
Lease improvement payments from associated companies |
18,375 | | ||||||
Sales of investment securities held in trusts |
59,804 | 24,941 | ||||||
Purchases of investment securities held in trusts |
(64,063 | ) | (30,877 | ) | ||||
Loan repayments from associated companies, net |
12,420 | 51,803 | ||||||
Cash investments |
11,774 | 7,929 | ||||||
Other |
(1,298 | ) | 1,098 | |||||
Net cash used for investing activities |
(34,686 | ) | (14,618 | ) | ||||
Net change in cash and cash equivalents |
(272,496 | ) | 77,469 | |||||
Cash and cash equivalents at beginning of period |
324,175 | 146,343 | ||||||
Cash and cash equivalents at end of period |
$ | 51,679 | $ | 223,812 | ||||
10
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 280,180 | $ | 458,287 | $ | 592,677 | $ | 889,692 | ||||||||
Excise tax collections |
15,495 | 16,799 | 33,068 | 35,119 | ||||||||||||
Total revenues |
295,675 | 475,086 | 625,745 | 924,811 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
83,532 | 243,499 | 178,497 | 482,371 | ||||||||||||
Purchased power from non-affiliates |
48,541 | 49,414 | 100,367 | 121,160 | ||||||||||||
Other operating expenses |
28,937 | 39,177 | 60,172 | 104,007 | ||||||||||||
Provision for depreciation |
18,336 | 17,852 | 36,447 | 36,132 | ||||||||||||
Amortization of regulatory assets |
30,807 | 29,580 | 75,946 | 286,317 | ||||||||||||
Deferral of new regulatory assets |
| (39,771 | ) | | (134,587 | ) | ||||||||||
General taxes |
28,840 | 36,856 | 67,329 | 74,997 | ||||||||||||
Total expenses |
238,993 | 376,607 | 518,758 | 970,397 | ||||||||||||
OPERATING INCOME (LOSS) |
56,682 | 98,479 | 106,987 | (45,586 | ) | |||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
6,605 | 7,614 | 14,152 | 16,034 | ||||||||||||
Miscellaneous expense |
675 | 798 | 1,257 | 2,792 | ||||||||||||
Interest expense |
(33,262 | ) | (32,757 | ) | (66,883 | ) | (66,079 | ) | ||||||||
Capitalized interest |
7 | 51 | 33 | 118 | ||||||||||||
Total other expense |
(25,975 | ) | (24,294 | ) | (51,441 | ) | (47,135 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
30,707 | 74,185 | 55,546 | (92,721 | ) | |||||||||||
INCOME TAX EXPENSE (BENEFIT) |
8,785 | 26,461 | 19,628 | (35,045 | ) | |||||||||||
NET INCOME (LOSS) |
21,922 | 47,724 | 35,918 | (57,676 | ) | |||||||||||
Noncontrolling interest income |
366 | 419 | 785 | 877 | ||||||||||||
EARNINGS (LOSS) AVAILABLE TO PARENT |
$ | 21,556 | $ | 47,305 | $ | 35,133 | $ | (58,553 | ) | |||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME (LOSS) |
$ | 21,922 | $ | 47,724 | $ | 35,918 | $ | (57,676 | ) | |||||||
OTHER COMPREHENSIVE INCOME (LOSS): |
||||||||||||||||
Pension and other postretirement benefits |
3,228 | 43,903 | (19,357 | ) | 47,870 | |||||||||||
Income tax expense (benefit) related to other
comprehensive income |
976 | 17,936 | (7,301 | ) | 19,306 | |||||||||||
Other comprehensive income (loss), net of tax |
2,252 | 25,967 | (12,056 | ) | 28,564 | |||||||||||
COMPREHENSIVE INCOME (LOSS) |
24,174 | 73,691 | 23,862 | (29,112 | ) | |||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO
NONCONTROLLING INTEREST |
366 | 419 | 785 | 877 | ||||||||||||
COMPREHENSIVE INCOME (LOSS) AVAILABLE TO PARENT |
$ | 23,808 | $ | 73,272 | $ | 23,077 | $ | (29,989 | ) | |||||||
11
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 245 | $ | 86,230 | ||||
Receivables- |
||||||||
Customers (less accumulated provisions of $4,809,000 and $5,239,000,
respectively, for uncollectible accounts) |
198,970 | 209,335 | ||||||
Associated companies |
73,008 | 98,954 | ||||||
Other |
10,377 | 11,661 | ||||||
Notes receivable from associated companies |
24,480 | 26,802 | ||||||
Prepayments and other |
4,390 | 9,973 | ||||||
311,470 | 442,955 | |||||||
UTILITY PLANT: |
||||||||
In service |
2,350,804 | 2,310,074 | ||||||
Less Accumulated provision for depreciation |
911,368 | 888,169 | ||||||
1,439,436 | 1,421,905 | |||||||
Construction work in progress |
30,665 | 36,907 | ||||||
1,470,101 | 1,458,812 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Investment in lessor notes |
340,033 | 388,641 | ||||||
Other |
10,108 | 10,220 | ||||||
350,141 | 398,861 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
1,688,521 | 1,688,521 | ||||||
Regulatory assets |
468,119 | 545,505 | ||||||
Pension assets (Note 5) |
| 13,380 | ||||||
Property taxes |
77,319 | 77,319 | ||||||
Other |
12,912 | 12,777 | ||||||
2,246,872 | 2,337,502 | |||||||
$ | 4,378,584 | $ | 4,638,130 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 137 | $ | 117 | ||||
Short-term borrowings- |
||||||||
Associated companies |
224,031 | 339,728 | ||||||
Accounts payable- |
||||||||
Associated companies |
35,605 | 68,634 | ||||||
Other |
15,707 | 17,166 | ||||||
Accrued taxes |
77,051 | 90,511 | ||||||
Accrued interest |
18,557 | 18,466 | ||||||
Other |
49,897 | 45,440 | ||||||
420,985 | 580,062 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, without par value, authorized 105,000,000 shares,
67,930,743 shares outstanding |
884,878 | 884,897 | ||||||
Accumulated other comprehensive loss |
(150,214 | ) | (138,158 | ) | ||||
Retained earnings |
532,380 | 597,248 | ||||||
Total common stockholders equity |
1,267,044 | 1,343,987 | ||||||
Noncontrolling interest |
18,017 | 20,592 | ||||||
Total equity |
1,285,061 | 1,364,579 | ||||||
Long-term debt and other long-term obligations |
1,852,488 | 1,872,750 | ||||||
3,137,549 | 3,237,329 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
632,696 | 644,745 | ||||||
Accumulated deferred investment tax credits |
11,415 | 11,836 | ||||||
Retirement benefits |
81,872 | 69,733 | ||||||
Other |
94,067 | 94,425 | ||||||
820,050 | 820,739 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 8) |
||||||||
$ | 4,378,584 | $ | 4,638,130 | |||||
12
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income (Loss) |
$ | 35,918 | $ | (57,676 | ) | |||
Adjustments to reconcile net income (loss) to net cash from operating activities- |
||||||||
Provision for depreciation |
36,447 | 36,132 | ||||||
Amortization of regulatory assets, net |
75,946 | 286,317 | ||||||
Deferral of new regulatory assets |
| (134,587 | ) | |||||
Purchased power cost recovery reconciliation |
| 2,072 | ||||||
Deferred income taxes and investment tax credits, net |
(18,083 | ) | (58,506 | ) | ||||
Accrued compensation and retirement benefits |
5,421 | 2,092 | ||||||
Accrued regulatory obligations |
(444 | ) | 12,057 | |||||
Electric service prepayment programs |
| (3,510 | ) | |||||
Cash collateral from suppliers |
685 | 5,365 | ||||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
51,757 | (84,469 | ) | |||||
Prepayments and other current assets |
5,392 | (1,145 | ) | |||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
(34,488 | ) | 18,991 | |||||
Accrued taxes |
(11,317 | ) | (29,434 | ) | ||||
Accrued interest |
91 | 232 | ||||||
Other |
1,932 | 3,265 | ||||||
Net cash provided from (used for) operating activities |
149,257 | (2,804 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Short-term borrowings, net |
| 47,423 | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(54 | ) | (368 | ) | ||||
Short-term borrowings, net |
(136,013 | ) | | |||||
Common stock dividend payments |
(100,000 | ) | (25,000 | ) | ||||
Other |
(3,367 | ) | (3,019 | ) | ||||
Net cash provided from (used for) financing activities |
(239,434 | ) | 19,036 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(44,373 | ) | (46,434 | ) | ||||
Loan repayments from (loans to) associated companies, net |
2,322 | (5,449 | ) | |||||
Redemptions of lessor notes |
48,608 | 37,070 | ||||||
Other |
(2,365 | ) | (1,415 | ) | ||||
Net cash provided from (used for) investing activities |
4,192 | (16,228 | ) | |||||
Net change in cash and cash equivalents |
(85,985 | ) | 4 | |||||
Cash and cash equivalents at beginning of period |
86,230 | 226 | ||||||
Cash and cash equivalents at end of period |
$ | 245 | $ | 230 | ||||
13
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 114,691 | $ | 219,911 | $ | 240,122 | $ | 456,996 | ||||||||
Excise tax collections |
6,059 | 6,297 | 13,100 | 14,026 | ||||||||||||
Total revenues |
120,750 | 226,208 | 253,222 | 471,022 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
38,654 | 130,564 | 85,654 | 255,888 | ||||||||||||
Purchased power from non-affiliates |
23,675 | 18,244 | 49,784 | 58,781 | ||||||||||||
Other operating expenses |
25,499 | 35,480 | 51,044 | 80,484 | ||||||||||||
Provision for depreciation |
8,013 | 7,717 | 15,963 | 15,289 | ||||||||||||
Amortization (deferral) of regulatory assets, net |
(1,800 | ) | 11,771 | (10,299 | ) | 21,668 | ||||||||||
General taxes |
12,282 | 12,349 | 25,743 | 26,599 | ||||||||||||
Total expenses |
106,323 | 216,125 | 217,889 | 458,709 | ||||||||||||
OPERATING INCOME |
14,427 | 10,083 | 35,333 | 12,313 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
5,057 | 7,529 | 8,857 | 13,013 | ||||||||||||
Miscellaneous income (expense) |
(945 | ) | 1,375 | (2,351 | ) | 35 | ||||||||||
Interest expense |
(10,455 | ) | (9,262 | ) | (20,942 | ) | (14,795 | ) | ||||||||
Capitalized interest |
80 | 50 | 158 | 92 | ||||||||||||
Total other expense |
(6,263 | ) | (308 | ) | (14,278 | ) | (1,655 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
8,164 | 9,775 | 21,055 | 10,658 | ||||||||||||
INCOME TAXES |
948 | 3,370 | 6,330 | 3,261 | ||||||||||||
NET INCOME |
7,216 | 6,405 | 14,725 | 7,397 | ||||||||||||
Noncontrolling interest income |
2 | 1 | 5 | 3 | ||||||||||||
EARNINGS AVAILABLE TO PARENT |
$ | 7,214 | $ | 6,404 | $ | 14,720 | $ | 7,394 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 7,216 | $ | 6,405 | $ | 14,725 | $ | 7,397 | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS): |
||||||||||||||||
Pension and other postretirement benefits |
714 | 19,016 | 1,010 | 19,149 | ||||||||||||
Change in unrealized gain on available-for-sale securities |
(330 | ) | (2,739 | ) | 39 | (3,548 | ) | |||||||||
Other comprehensive income |
384 | 16,277 | 1,049 | 15,601 | ||||||||||||
Income tax expense related to other comprehensive income |
65 | 7,224 | 235 | 7,205 | ||||||||||||
Other comprehensive income, net of tax |
319 | 9,053 | 814 | 8,396 | ||||||||||||
COMPREHENSIVE INCOME |
7,535 | 15,458 | 15,539 | 15,793 | ||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO
NONCONTROLLING INTEREST |
2 | 1 | 5 | 3 | ||||||||||||
COMPREHENSIVE INCOME AVAILABLE TO PARENT |
$ | 7,533 | $ | 15,457 | $ | 15,534 | $ | 15,790 | ||||||||
14
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 77,843 | $ | 436,712 | ||||
Receivables- |
||||||||
Customers |
128 | 75 | ||||||
Associated companies |
52,068 | 90,191 | ||||||
Other (less accumulated provisions of $298,000 and $208,000, respectively,
for uncollectible accounts) |
18,866 | 20,180 | ||||||
Notes receivable from associated companies |
95,919 | 85,101 | ||||||
Prepayments and other |
3,503 | 7,111 | ||||||
248,327 | 639,370 | |||||||
UTILITY PLANT: |
||||||||
In service |
932,788 | 912,930 | ||||||
Less Accumulated provision for depreciation |
437,327 | 427,376 | ||||||
495,461 | 485,554 | |||||||
Construction work in progress |
7,906 | 9,069 | ||||||
503,367 | 494,623 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Investment in lessor notes |
103,872 | 124,357 | ||||||
Nuclear plant decommissioning trusts |
75,540 | 73,935 | ||||||
Other |
1,539 | 1,580 | ||||||
180,951 | 199,872 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
500,576 | 500,576 | ||||||
Regulatory assets |
81,799 | 69,557 | ||||||
Property taxes |
23,658 | 23,658 | ||||||
Other |
38,655 | 55,622 | ||||||
644,688 | 649,413 | |||||||
$ | 1,577,333 | $ | 1,983,278 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 216 | $ | 222 | ||||
Accounts payable- |
||||||||
Associated companies |
16,535 | 78,341 | ||||||
Other |
6,972 | 8,312 | ||||||
Notes payable to associated companies |
| 225,975 | ||||||
Accrued taxes |
20,069 | 25,734 | ||||||
Lease market valuation liability |
36,900 | 36,900 | ||||||
Other |
22,244 | 29,273 | ||||||
102,936 | 404,757 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, $5 par value, authorized 60,000,000 shares,
29,402,054 shares outstanding |
147,010 | 147,010 | ||||||
Other paid-in-capital |
178,136 | 178,181 | ||||||
Accumulated other comprehensive loss |
(48,989 | ) | (49,803 | ) | ||||
Retained earnings |
99,210 | 214,490 | ||||||
Total common stockholders equity |
375,367 | 489,878 | ||||||
Noncontrolling interest |
2,590 | 2,696 | ||||||
Total equity |
377,957 | 492,574 | ||||||
Long-term debt and other long-term obligations |
600,463 | 600,443 | ||||||
978,420 | 1,093,017 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
112,670 | 80,508 | ||||||
Accumulated deferred investment tax credits |
6,148 | 6,367 | ||||||
Retirement benefits |
67,507 | 65,988 | ||||||
Asset retirement obligations |
27,819 | 32,290 | ||||||
Lease market valuation liability |
217,750 | 236,200 | ||||||
Other |
64,083 | 64,151 | ||||||
495,977 | 485,504 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 8) |
||||||||
$ | 1,577,333 | $ | 1,983,278 | |||||
15
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 14,725 | $ | 7,397 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
15,963 | 15,289 | ||||||
Amortization (deferral) of regulatory assets, net |
(10,299 | ) | 21,668 | |||||
Purchased power cost recovery reconciliation |
60 | (4,197 | ) | |||||
Deferred rents and lease market valuation liability |
(42,264 | ) | (40,697 | ) | ||||
Deferred income taxes and investment tax credits, net |
16,503 | (1,206 | ) | |||||
Accrued compensation and retirement benefits |
2,600 | 711 | ||||||
Accrued regulatory obligations |
(632 | ) | 4,450 | |||||
Electric service prepayment programs |
| (1,458 | ) | |||||
Cash collateral from suppliers |
343 | 2,755 | ||||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
52,754 | 1,075 | ||||||
Prepayments and other current assets |
3,608 | (220 | ) | |||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
(61,195 | ) | 5,533 | |||||
Accrued taxes |
(4,007 | ) | (2,936 | ) | ||||
Accrued interest |
| 3,983 | ||||||
Other |
(9,020 | ) | 1,788 | |||||
Net cash provided from (used for) operating activities |
(20,861 | ) | 13,935 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Long-term debt |
| 297,422 | ||||||
Short-term borrowings, net |
| 59,938 | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(111 | ) | (236 | ) | ||||
Short-term borrowings, net |
(225,975 | ) | | |||||
Common stock dividend payments |
(130,000 | ) | (25,000 | ) | ||||
Other |
(112 | ) | (247 | ) | ||||
Net cash provided from (used for) financing activities |
(356,198 | ) | 331,877 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(20,237 | ) | (21,661 | ) | ||||
Leasehold improvement payments from associated companies |
32,829 | | ||||||
Loans to associated companies, net |
(10,818 | ) | (19,819 | ) | ||||
Redemptions of lessor notes |
20,485 | 18,330 | ||||||
Sales of investment securities held in trusts |
106,814 | 77,323 | ||||||
Purchases of investment securities held in trusts |
(107,978 | ) | (78,700 | ) | ||||
Other |
(2,905 | ) | (1,845 | ) | ||||
Net cash provided from (used for) investing activities |
18,190 | (26,372 | ) | |||||
Net change in cash and cash equivalents |
(358,869 | ) | 319,440 | |||||
Cash and cash equivalents at beginning of period |
436,712 | 14 | ||||||
Cash and cash equivalents at end of period |
$ | 77,843 | $ | 319,454 | ||||
16
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 709,606 | $ | 697,061 | $ | 1,400,998 | $ | 1,457,981 | ||||||||
Excise tax collections |
11,012 | 11,031 | 23,364 | 23,762 | ||||||||||||
Total revenues |
720,618 | 708,092 | 1,424,362 | 1,481,743 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power |
410,470 | 423,950 | 824,486 | 905,191 | ||||||||||||
Other operating expenses |
75,177 | 70,876 | 170,837 | 156,746 | ||||||||||||
Provision for depreciation |
27,093 | 25,301 | 55,064 | 50,404 | ||||||||||||
Amortization of regulatory assets, net |
81,326 | 80,018 | 150,774 | 166,849 | ||||||||||||
General taxes |
14,902 | 12,587 | 31,338 | 30,083 | ||||||||||||
Total expenses |
608,968 | 612,732 | 1,232,499 | 1,309,273 | ||||||||||||
OPERATING INCOME |
111,650 | 95,360 | 191,863 | 172,470 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Miscellaneous income |
1,649 | 2,007 | 3,482 | 2,812 | ||||||||||||
Interest expense |
(30,041 | ) | (29,671 | ) | (59,464 | ) | (57,539 | ) | ||||||||
Capitalized interest |
156 | 218 | 289 | 280 | ||||||||||||
Total other expense |
(28,236 | ) | (27,446 | ) | (55,693 | ) | (54,447 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
83,414 | 67,914 | 136,170 | 118,023 | ||||||||||||
INCOME TAXES |
33,521 | 29,848 | 57,051 | 52,399 | ||||||||||||
NET INCOME |
49,893 | 38,066 | 79,119 | 65,624 | ||||||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
4,135 | 20,918 | 20,063 | 25,039 | ||||||||||||
Unrealized gain on derivative hedges |
69 | 69 | 138 | 138 | ||||||||||||
Other comprehensive income |
4,204 | 20,987 | 20,201 | 25,177 | ||||||||||||
Income tax expense related to other comprehensive income |
1,441 | 11,059 | 7,999 | 12,489 | ||||||||||||
Other comprehensive income, net of tax |
2,763 | 9,928 | 12,202 | 12,688 | ||||||||||||
TOTAL COMPREHENSIVE INCOME |
$ | 52,656 | $ | 47,994 | $ | 91,321 | $ | 78,312 | ||||||||
17
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 99 | $ | 27 | ||||
Receivables- |
||||||||
Customers (less accumulated provisions of $3,362,000 and $3,506,000,
respectively, for uncollectible accounts) |
345,136 | 300,991 | ||||||
Associated companies |
11,778 | 12,884 | ||||||
Other |
25,626 | 21,877 | ||||||
Notes receivable associated companies |
17,883 | 102,932 | ||||||
Prepaid taxes |
146,898 | 34,930 | ||||||
Other |
11,357 | 12,945 | ||||||
558,777 | 486,586 | |||||||
UTILITY PLANT: |
||||||||
In service |
4,524,706 | 4,463,490 | ||||||
Less Accumulated provision for depreciation |
1,651,304 | 1,617,639 | ||||||
2,873,402 | 2,845,851 | |||||||
Construction work in progress |
55,825 | 54,251 | ||||||
2,929,227 | 2,900,102 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
166,148 | 166,768 | ||||||
Nuclear fuel disposal trust |
204,088 | 199,677 | ||||||
Other |
2,209 | 2,149 | ||||||
372,445 | 368,594 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
1,810,936 | 1,810,936 | ||||||
Regulatory assets |
800,898 | 888,143 | ||||||
Other |
29,849 | 27,096 | ||||||
2,641,683 | 2,726,175 | |||||||
$ | 6,502,132 | $ | 6,481,457 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 31,508 | $ | 30,639 | ||||
Short-term borrowings- |
||||||||
Associated companies |
57,850 | | ||||||
Accounts payable- |
||||||||
Associated companies |
15,158 | 26,882 | ||||||
Other |
202,049 | 168,093 | ||||||
Accrued taxes |
1,786 | 12,594 | ||||||
Accrued interest |
18,189 | 18,256 | ||||||
Other |
82,524 | 111,156 | ||||||
409,064 | 367,620 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, $10 par value, authorized 16,000,000 shares,
13,628,447 shares outstanding |
136,284 | 136,284 | ||||||
Other paid-in capital |
2,507,003 | 2,507,049 | ||||||
Accumulated other comprehensive loss |
(230,810 | ) | (243,012 | ) | ||||
Retained earnings |
189,194 | 200,075 | ||||||
Total common stockholders equity |
2,601,671 | 2,600,396 | ||||||
Long-term debt and other long-term obligations |
1,787,235 | 1,801,589 | ||||||
4,388,906 | 4,401,985 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
705,219 | 687,545 | ||||||
Nuclear fuel disposal costs |
196,623 | 196,511 | ||||||
Retirement benefits |
132,565 | 150,603 | ||||||
Asset retirement obligations |
104,878 | 101,568 | ||||||
Power purchase contract liability |
378,448 | 399,105 | ||||||
Other |
186,429 | 176,520 | ||||||
1,704,162 | 1,711,852 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 8) |
||||||||
$ | 6,502,132 | $ | 6,481,457 | |||||
18
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 79,119 | $ | 65,624 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
55,064 | 50,404 | ||||||
Amortization of regulatory assets, net |
150,774 | 166,849 | ||||||
Deferred purchased power and other costs |
(67,664 | ) | (50,542 | ) | ||||
Deferred income taxes and investment tax credits, net |
(1,425 | ) | 3,440 | |||||
Accrued compensation and retirement benefits |
2,608 | (2,883 | ) | |||||
Cash collateral paid, net |
(23,400 | ) | (209 | ) | ||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
(46,788 | ) | 41,228 | |||||
Prepayments and other current assets |
(112,155 | ) | (145,740 | ) | ||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
11,924 | (19,321 | ) | |||||
Accrued taxes |
10,368 | (14,007 | ) | |||||
Accrued interest |
(67 | ) | 9,373 | |||||
Tax collections payable |
| (9,714 | ) | |||||
Other |
(6,192 | ) | 4,555 | |||||
Net cash provided from operating activities |
52,166 | 99,057 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Long-term debt |
| 299,619 | ||||||
Short-term borrowings, net |
57,850 | | ||||||
Redemptions and Repayments- |
||||||||
Common stock |
| (150,000 | ) | |||||
Long-term debt |
(13,830 | ) | (13,093 | ) | ||||
Short-term borrowings, net |
| (56,267 | ) | |||||
Common stock dividend payments |
(90,000 | ) | (88,000 | ) | ||||
Other |
| (2,260 | ) | |||||
Net cash used for financing activities |
(45,980 | ) | (10,001 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(80,727 | ) | (78,401 | ) | ||||
Loan repayments from (loans to) associated companies, net |
85,049 | (1,341 | ) | |||||
Sales of investment securities held in trusts |
281,242 | 244,880 | ||||||
Purchases of investment securities held in trusts |
(289,454 | ) | (252,856 | ) | ||||
Other |
(2,224 | ) | (1,266 | ) | ||||
Net cash used for investing activities |
(6,114 | ) | (88,984 | ) | ||||
Net change in cash and cash equivalents |
72 | 72 | ||||||
Cash and cash equivalents at beginning of period |
27 | 66 | ||||||
Cash and cash equivalents at end of period |
$ | 99 | $ | 138 | ||||
19
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 422,030 | $ | 360,022 | $ | 873,590 | $ | 769,708 | ||||||||
Gross receipts tax collections |
20,629 | 17,586 | 42,196 | 37,569 | ||||||||||||
Total revenues |
442,659 | 377,608 | 915,786 | 807,277 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
149,000 | 78,652 | 310,080 | 178,729 | ||||||||||||
Purchased power from non-affiliates |
85,276 | 123,299 | 177,204 | 247,210 | ||||||||||||
Other operating expenses |
90,151 | 51,309 | 192,134 | 157,666 | ||||||||||||
Provision for depreciation |
13,440 | 12,919 | 26,198 | 25,058 | ||||||||||||
Amortization of regulatory assets, net |
48,589 | 61,548 | 97,389 | 89,139 | ||||||||||||
General taxes |
19,894 | 22,034 | 41,634 | 43,969 | ||||||||||||
Total expenses |
406,350 | 349,761 | 844,639 | 741,771 | ||||||||||||
OPERATING INCOME |
36,309 | 27,847 | 71,147 | 65,506 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Interest income |
880 | 2,769 | 2,097 | 5,955 | ||||||||||||
Miscellaneous income |
1,381 | 1,058 | 3,554 | 1,914 | ||||||||||||
Interest expense |
(13,002 | ) | (14,763 | ) | (26,775 | ) | (28,122 | ) | ||||||||
Capitalized interest |
159 | 62 | 285 | 77 | ||||||||||||
Total other expense |
(10,582 | ) | (10,874 | ) | (20,839 | ) | (20,176 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
25,727 | 16,973 | 50,308 | 45,330 | ||||||||||||
INCOME TAXES |
8,618 | 6,968 | 20,884 | 18,703 | ||||||||||||
NET INCOME |
17,109 | 10,005 | 29,424 | 26,627 | ||||||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
2,162 | 27,369 | 11,871 | 31,922 | ||||||||||||
Unrealized gain on derivative hedges |
84 | 84 | 168 | 168 | ||||||||||||
Other comprehensive income |
2,246 | 27,453 | 12,039 | 32,090 | ||||||||||||
Income tax expense related to other comprehensive income |
724 | 13,592 | 4,901 | 15,385 | ||||||||||||
Other comprehensive income, net of tax |
1,522 | 13,861 | 7,138 | 16,705 | ||||||||||||
TOTAL COMPREHENSIVE INCOME |
$ | 18,631 | $ | 23,866 | $ | 36,562 | $ | 43,332 | ||||||||
20
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 126 | $ | 120 | ||||
Receivables- |
||||||||
Customers (less accumulated provisions of $3,877,000 and $4,044,000,
respectively, for uncollectible accounts) |
188,771 | 171,052 | ||||||
Associated companies |
45,551 | 29,413 | ||||||
Other |
13,221 | 11,650 | ||||||
Notes receivable from associated companies |
11,207 | 97,150 | ||||||
Prepaid taxes |
46,475 | 15,229 | ||||||
Other |
649 | 1,459 | ||||||
306,000 | 326,073 | |||||||
UTILITY PLANT: |
||||||||
In service |
2,196,713 | 2,162,815 | ||||||
Less Accumulated provision for depreciation |
830,042 | 810,746 | ||||||
1,366,671 | 1,352,069 | |||||||
Construction work in progress |
30,214 | 14,901 | ||||||
1,396,885 | 1,366,970 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
263,752 | 266,479 | ||||||
Other |
881 | 890 | ||||||
264,633 | 267,369 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
416,499 | 416,499 | ||||||
Regulatory assets |
385,392 | 356,754 | ||||||
Power purchase contract asset |
120,436 | 176,111 | ||||||
Other |
42,546 | 36,544 | ||||||
964,873 | 985,908 | |||||||
$ | 2,932,391 | $ | 2,946,320 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 28,500 | $ | 128,500 | ||||
Short-term borrowings- |
||||||||
Associated companies |
17,898 | | ||||||
Accounts payable- |
||||||||
Associated companies |
51,308 | 40,521 | ||||||
Other |
30,997 | 41,050 | ||||||
Accrued taxes |
20,689 | 11,170 | ||||||
Accrued interest |
16,085 | 17,362 | ||||||
Other |
28,588 | 24,520 | ||||||
194,065 | 263,123 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, without par value, authorized 900,000 shares,
859,500 shares outstanding |
1,197,014 | 1,197,070 | ||||||
Accumulated other comprehensive loss |
(136,413 | ) | (143,551 | ) | ||||
Retained earnings |
33,824 | 4,399 | ||||||
Total common stockholders equity |
1,094,425 | 1,057,918 | ||||||
Long-term debt and other long-term obligations |
713,920 | 713,873 | ||||||
1,808,345 | 1,771,791 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
454,777 | 453,462 | ||||||
Accumulated deferred investment tax credits |
7,090 | 7,313 | ||||||
Nuclear fuel disposal costs |
44,416 | 44,391 | ||||||
Retirement benefits |
29,194 | 33,605 | ||||||
Asset retirement obligations |
186,373 | 180,297 | ||||||
Power purchase contract liability |
158,987 | 143,135 | ||||||
Other |
49,144 | 49,203 | ||||||
929,981 | 911,406 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 8) |
||||||||
$ | 2,932,391 | $ | 2,946,320 | |||||
21
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 29,424 | $ | 26,627 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
26,198 | 25,058 | ||||||
Amortization of regulatory assets, net |
97,389 | 89,139 | ||||||
Deferral of regulatory assets |
(38,358 | ) | (47,592 | ) | ||||
Deferred income taxes and investment tax credits, net |
(12,079 | ) | 30,135 | |||||
Accrued compensation and retirement benefits |
(1,573 | ) | 3,250 | |||||
Cash collateral received (paid), net |
50 | (6,800 | ) | |||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
(29,439 | ) | 346 | |||||
Prepayments and other current assets |
(30,436 | ) | (39,068 | ) | ||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
733 | (18,624 | ) | |||||
Accrued taxes |
9,519 | (1,754 | ) | |||||
Accrued interest |
(1,277 | ) | 10,230 | |||||
Other |
6,743 | 7,870 | ||||||
Net cash provided from operating activities |
56,894 | 78,817 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Long-term debt |
| 300,000 | ||||||
Short-term borrowings, net |
17,898 | | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(100,000 | ) | | |||||
Short-term borrowings, net |
| (15,003 | ) | |||||
Other |
| (2,267 | ) | |||||
Net cash provided from (used for) financing activities |
(82,102 | ) | 282,730 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(54,405 | ) | (48,464 | ) | ||||
Sales of investment securities held in trusts |
376,610 | 63,086 | ||||||
Purchases of investment securities held in trusts |
(381,219 | ) | (67,668 | ) | ||||
Loans from (to) associated companies, net |
85,943 | (306,448 | ) | |||||
Other |
(1,715 | ) | (2,072 | ) | ||||
Net cash provided from (used for) investing activities |
25,214 | (361,566 | ) | |||||
Net change in cash and cash equivalents |
6 | (19 | ) | |||||
Cash and cash equivalents at beginning of period |
120 | 144 | ||||||
Cash and cash equivalents at end of period |
$ | 126 | $ | 125 | ||||
22
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 350,335 | $ | 316,881 | $ | 736,271 | $ | 688,174 | ||||||||
Gross receipts tax collections |
16,162 | 14,804 | 33,686 | 32,096 | ||||||||||||
Total revenues |
366,497 | 331,685 | 769,957 | 720,270 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
152,945 | 72,166 | 321,345 | 168,247 | ||||||||||||
Purchased power from non-affiliates |
86,829 | 125,317 | 178,252 | 252,483 | ||||||||||||
Other operating expenses |
67,070 | 46,301 | 139,464 | 123,590 | ||||||||||||
Provision for depreciation |
16,605 | 15,581 | 31,287 | 30,036 | ||||||||||||
Amortization (deferral) of regulatory assets, net |
(10,522 | ) | 18,113 | (20,488 | ) | 26,889 | ||||||||||
General taxes |
18,647 | 18,251 | 35,181 | 38,844 | ||||||||||||
Total expenses |
331,574 | 295,729 | 685,041 | 640,089 | ||||||||||||
OPERATING INCOME |
34,923 | 35,956 | 84,916 | 80,181 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Miscellaneous income |
1,310 | 911 | 2,923 | 1,709 | ||||||||||||
Interest expense |
(17,630 | ) | (11,843 | ) | (34,920 | ) | (25,076 | ) | ||||||||
Capitalized interest |
183 | 29 | 323 | 51 | ||||||||||||
Total other expense |
(16,137 | ) | (10,903 | ) | (31,674 | ) | (23,316 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
18,786 | 25,053 | 53,242 | 56,865 | ||||||||||||
INCOME TAXES |
5,812 | 10,232 | 22,969 | 23,354 | ||||||||||||
NET INCOME |
12,974 | 14,821 | 30,273 | 33,511 | ||||||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
1,830 | 29,400 | 10,377 | 32,355 | ||||||||||||
Unrealized gain on derivative hedges |
16 | 16 | 32 | 32 | ||||||||||||
Change in unrealized gain on available-for-sale securities |
| 6 | | (16 | ) | |||||||||||
Other comprehensive income |
1,846 | 29,422 | 10,409 | 32,371 | ||||||||||||
Income tax expense related to other comprehensive income |
483 | 15,100 | 3,767 | 16,155 | ||||||||||||
Other comprehensive income, net of tax |
1,363 | 14,322 | 6,642 | 16,216 | ||||||||||||
TOTAL COMPREHENSIVE INCOME |
$ | 14,337 | $ | 29,143 | $ | 36,915 | $ | 49,727 | ||||||||
23
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 10 | $ | 14 | ||||
Receivables- |
||||||||
Customers (less accumulated provisions of $3,428,000 and $3,483,000,
respectively, for uncollectible accounts) |
137,450 | 139,302 | ||||||
Associated companies |
88,612 | 77,338 | ||||||
Other |
10,934 | 18,320 | ||||||
Notes receivable from associated companies |
14,092 | 14,589 | ||||||
Prepaid taxes |
56,450 | 18,946 | ||||||
Other |
758 | 1,400 | ||||||
308,306 | 269,909 | |||||||
UTILITY PLANT: |
||||||||
In service |
2,481,942 | 2,431,737 | ||||||
Less Accumulated provision for depreciation |
918,963 | 901,990 | ||||||
1,562,979 | 1,529,747 | |||||||
Construction work in progress |
22,319 | 24,205 | ||||||
1,585,298 | 1,553,952 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
140,611 | 142,603 | ||||||
Non-utility generation trusts |
96,988 | 120,070 | ||||||
Other |
283 | 289 | ||||||
237,882 | 262,962 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
768,628 | 768,628 | ||||||
Regulatory assets |
138,557 | 9,045 | ||||||
Power purchase contract asset |
6,031 | 15,362 | ||||||
Other |
20,245 | 19,143 | ||||||
933,461 | 812,178 | |||||||
$ | 3,064,947 | $ | 2,899,001 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 69,310 | $ | 69,310 | ||||
Short-term borrowings- |
||||||||
Associated companies |
66,786 | 41,473 | ||||||
Accounts payable- |
||||||||
Associated companies |
48,876 | 39,884 | ||||||
Other |
28,460 | 41,990 | ||||||
Accrued taxes |
5,071 | 6,409 | ||||||
Accrued interest |
17,625 | 17,598 | ||||||
Other |
24,696 | 22,741 | ||||||
260,824 | 239,405 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, $20 par value, authorized 5,400,000 shares,
4,427,577 shares outstanding |
88,552 | 88,552 | ||||||
Other paid-in capital |
913,460 | 913,437 | ||||||
Accumulated other comprehensive loss |
(155,462 | ) | (162,104 | ) | ||||
Retained earnings |
121,774 | 91,501 | ||||||
Total common stockholders equity |
968,324 | 931,386 | ||||||
Long-term debt and other long-term obligations |
1,072,199 | 1,072,181 | ||||||
2,040,523 | 2,003,567 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
296,829 | 242,040 | ||||||
Retirement benefits |
167,288 | 174,306 | ||||||
Asset retirement obligations |
94,933 | 91,841 | ||||||
Power purchase contract liability |
153,603 | 100,849 | ||||||
Other |
50,947 | 46,993 | ||||||
763,600 | 656,029 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 8) |
||||||||
$ | 3,064,947 | $ | 2,899,001 | |||||
24
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 30,273 | $ | 33,511 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
31,287 | 30,036 | ||||||
Amortization (deferral) of regulatory assets, net |
(20,488 | ) | 26,889 | |||||
Deferred costs recoverable as regulatory assets |
(38,955 | ) | (46,349 | ) | ||||
Deferred income taxes and investment tax credits, net |
42,943 | 24,700 | ||||||
Accrued compensation and retirement benefits |
4,216 | 490 | ||||||
Cash collateral |
(3,613 | ) | 2 | |||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
3,266 | 42,494 | ||||||
Prepayments and other current assets |
(36,864 | ) | (35,750 | ) | ||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
(4,603 | ) | (10,108 | ) | ||||
Accrued taxes |
(1,339 | ) | (7,629 | ) | ||||
Accrued interest |
28 | (1,669 | ) | |||||
Other |
9,559 | 2,302 | ||||||
Net cash provided from operating activities |
15,710 | 58,919 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Short-term borrowings, net |
25,313 | 146,654 | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
| (100,000 | ) | |||||
Common stock dividend payments |
| (35,000 | ) | |||||
Other |
5 | | ||||||
Net cash provided from financing activities |
25,318 | 11,654 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(58,293 | ) | (59,606 | ) | ||||
Loans from associated companies, net |
498 | 63 | ||||||
Sales of investment securities held in trusts |
133,934 | 53,504 | ||||||
Purchases of investment securities held in trusts |
(113,067 | ) | (60,378 | ) | ||||
Other |
(4,104 | ) | (4,168 | ) | ||||
Net cash used for investing activities |
(41,032 | ) | (70,585 | ) | ||||
Net change in cash and cash equivalents |
(4 | ) | (12 | ) | ||||
Cash and cash equivalents at beginning of period |
14 | 23 | ||||||
Cash and cash equivalents at end of period |
$ | 10 | $ | 11 | ||||
25
Three Months | Six Months | |||||||||||||||
Reconciliation of Basic and Diluted Earnings per Share | Ended June 30 | Ended June 30 | ||||||||||||||
of Common Stock | 2010 | 2009 | 2010 | 2009 | ||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Earnings available to FirstEnergy Corp. |
$ | 265 | $ | 414 | $ | 420 | $ | 533 | ||||||||
Weighted average number of basic shares outstanding |
304 | 304 | 304 | 304 | ||||||||||||
Assumed exercise of dilutive stock options and awards |
1 | 1 | 1 | 2 | ||||||||||||
Weighted average number of diluted shares outstanding |
305 | 305 | 305 | 306 | ||||||||||||
Basic earnings per share of common stock |
$ | 0.87 | $ | 1.36 | $ | 1.38 | $ | 1.75 | ||||||||
Diluted earnings per share of common stock |
$ | 0.87 | $ | 1.36 | $ | 1.37 | $ | 1.75 | ||||||||
26
June 30, 2010 | December 31, 2009 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(In millions) | ||||||||||||||||
FirstEnergy |
$ | 13,346 | $ | 14,992 | $ | 13,753 | $ | 14,502 | ||||||||
FES |
3,932 | 4,386 | 4,224 | 4,306 | ||||||||||||
OE |
1,166 | 1,378 | 1,169 | 1,299 | ||||||||||||
CEI |
1,853 | 2,110 | 1,873 | 2,032 | ||||||||||||
TE |
600 | 682 | 600 | 638 | ||||||||||||
JCP&L |
1,826 | 2,013 | 1,840 | 1,950 | ||||||||||||
Met-Ed |
742 | 840 | 842 | 909 | ||||||||||||
Penelec |
1,144 | 1,233 | 1,144 | 1,177 |
June 30, 2010(1) | December 31, 2009(2) | |||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Basis | Gains | Losses | Value | Basis | Gains | Losses | Value | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
FirstEnergy |
$ | 1,404 | $ | 40 | $ | | $ | 1,444 | $ | 1,727 | $ | 22 | $ | | $ | 1,749 | ||||||||||||||||
FES |
702 | 18 | | 720 | 1,043 | 3 | | 1,046 | ||||||||||||||||||||||||
OE |
119 | 1 | | 120 | 55 | | | 55 | ||||||||||||||||||||||||
TE |
14 | | | 14 | 72 | | | 72 | ||||||||||||||||||||||||
JCP&L |
278 | 11 | | 289 | 271 | 9 | | 280 | ||||||||||||||||||||||||
Met-Ed |
130 | 5 | | 135 | 120 | 5 | | 125 | ||||||||||||||||||||||||
Penelec |
161 | 5 | | 166 | 166 | 5 | | 171 | ||||||||||||||||||||||||
Equity securities |
||||||||||||||||||||||||||||||||
FirstEnergy |
$ | 250 | $ | 24 | $ | | $ | 274 | $ | 252 | $ | 43 | $ | | $ | 295 | ||||||||||||||||
JCP&L |
74 | 4 | | 78 | 74 | 11 | | 85 | ||||||||||||||||||||||||
Met-Ed |
117 | 14 | | 131 | 117 | 23 | | 140 | ||||||||||||||||||||||||
Penelec |
59 | 6 | | 65 | 61 | 9 | | 70 |
(1) | Excludes cash balances: FirstEnergy $463 million; FES $388 million; OE $6
million; TE $61 million; JCP&L $3 million; Met-Ed $(2) million and Penelec -
$7 million. |
|
(2) | Excludes cash balances: FirstEnergy $137 million; FES $43 million; OE -
$66 million; TE $2 million; JCP&L $3 million and Penelec $23 million. |
27
June 30, 2010 | FirstEnergy | FES | OE | TE | JCP&L | Met-Ed | Penelec | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Proceeds from sales |
$ | 1,916 | $ | 957 | $ | 60 | $ | 107 | $ | 281 | $ | 377 | $ | 134 | |||||||||||||||
Realized gains |
83 | 54 | 2 | 3 | 9 | 9 | 6 | ||||||||||||||||||||||
Realized losses |
86 | 58 | | | 9 | 12 | 7 | ||||||||||||||||||||||
Interest and dividend income |
37 | 22 | 1 | 1 | 7 | 3 | 3 |
June 30, 2009 | FirstEnergy | FES | OE | TE | JCP&L | Met-Ed | Penelec | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Proceeds from sales
|
$ | 1,001 | $ | 537 | $ | 25 | $ | 77 | $ | 245 | $ | 63 | $ | 54 | |||||||||||||||
Realized gains
|
30 | 24 | - | 3 | 3 | 1 | - | ||||||||||||||||||||||
Realized losses
|
91 | 58 | 3 | - | 11 | 12 | 7 | ||||||||||||||||||||||
Interest and dividend
income
|
30 | 14 | 2 | 1 | 7 | 3 | 3 |
June 30, 2010 | December 31, 2009 | |||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Basis | Gains | Losses | Value | Basis | Gains | Losses | Value | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Debt Securities |
||||||||||||||||||||||||||||||||
FirstEnergy |
$ | 487 | $ | 93 | $ | | $ | 580 | $ | 544 | $ | 72 | $ | | $ | 616 | ||||||||||||||||
OE |
205 | 55 | | 260 | 217 | 29 | | 246 | ||||||||||||||||||||||||
CEI |
340 | 38 | | 378 | 389 | 43 | | 432 |
June 30, 2010 | December 31, 2009 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(In millions) | ||||||||||||||||
Notes Receivable |
||||||||||||||||
FirstEnergy |
$ | 36 | $ | 34 | $ | 36 | $ | 35 | ||||||||
FES |
| | 2 | 1 | ||||||||||||
TE |
104 | 117 | 124 | 141 |
28
Recurring Fair Value Measures as of June 30, 2010 | ||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||
FirstEnergy | FES | OE | TE | JCP&L | Met-Ed | Penelec | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Nuclear Decommissioning Trust Investments |
||||||||||||||||||||||||||||
Equity securities consumer products |
$ | 122 | $ | | $ | | $ | | $ | 35 | $ | 58 | $ | 29 | ||||||||||||||
Equity securities technology |
51 | | | | 15 | 24 | 12 | |||||||||||||||||||||
Equity securities utilities & energy |
52 | | | | 15 | 25 | 12 | |||||||||||||||||||||
Equity securities financial |
42 | | | | 12 | 20 | 10 | |||||||||||||||||||||
Equity securities other |
8 | | | | 2 | 4 | 2 | |||||||||||||||||||||
Total Assets(1) |
$ | 275 | $ | | $ | | $ | | $ | 79 | $ | 131 | $ | 65 | ||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Derivatives commodity contracts |
$ | 5 | $ | 5 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Total Liabilities |
$ | 5 | $ | 5 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
29
Level 2 | ||||||||||||||||||||||||||||
FirstEnergy | FES | OE | TE | JCP&L | Met-Ed | Penelec | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Nuclear Decommissioning Trust Investments |
||||||||||||||||||||||||||||
U.S. government debt securities |
$ | 538 | $ | 265 | $ | 121 | $ | 14 | $ | 36 | $ | 92 | $ | 10 | ||||||||||||||
U.S. state debt securities |
94 | | | | 31 | 2 | 61 | |||||||||||||||||||||
Foreign government debt securities |
297 | 297 | | | | | | |||||||||||||||||||||
Corporate debt securities |
225 | 158 | | | 20 | 42 | 5 | |||||||||||||||||||||
Other |
458 | 388 | 5 | 62 | 1 | 1 | 1 | |||||||||||||||||||||
Total nuclear decommissioning trust investments |
$ | 1,612 | $ | 1,108 | $ | 126 | $ | 76 | $ | 88 | $ | 137 | $ | 77 | ||||||||||||||
Rabbi Trust Investments |
||||||||||||||||||||||||||||
Equity securities financial |
$ | 1 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Other |
12 | | 1 | | | | | |||||||||||||||||||||
Total rabbi trust investments |
$ | 13 | $ | | $ | 1 | $ | | $ | | $ | | $ | | ||||||||||||||
Nuclear Fuel Disposal Trust Investments |
||||||||||||||||||||||||||||
U.S. state debt securities |
$ | 196 | $ | | $ | | $ | | $ | 196 | $ | | $ | | ||||||||||||||
Other |
8 | | | | 8 | | | |||||||||||||||||||||
Total nuclear fuel disposal trust investments |
$ | 204 | $ | | $ | | $ | | $ | 204 | $ | | $ | | ||||||||||||||
NUG Trust Investments |
||||||||||||||||||||||||||||
U.S. state debt securities |
$ | 97 | $ | | $ | | $ | | $ | | $ | | $ | 97 | ||||||||||||||
Total NUG trust investments |
$ | 97 | $ | | $ | | $ | | $ | | $ | | $ | 97 | ||||||||||||||
Derivatives |
||||||||||||||||||||||||||||
Commodity contracts |
$ | 111 | $ | 102 | $ | | $ | | $ | 2 | $ | 5 | $ | 2 | ||||||||||||||
Interest rate contracts |
62 | | | | | | | |||||||||||||||||||||
Total derivatives contracts |
$ | 173 | $ | 102 | $ | | $ | | $ | 2 | $ | 5 | $ | 2 | ||||||||||||||
Total Assets(1) |
$ | 2,099 | $ | 1,210 | $ | 127 | $ | 76 | $ | 294 | $ | 142 | $ | 176 | ||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Derivatives |
||||||||||||||||||||||||||||
Commodity contracts |
$ | 273 | $ | 273 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Total Liabilities |
$ | 273 | $ | 273 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Level 3 | ||||||||||||||||||||||||||||
FirstEnergy | FES | OE | TE | JCP&L | Met-Ed | Penelec | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Derivatives NUG contracts(2) |
$ | 134 | $ | | $ | | $ | | $ | 7 | $ | 121 | $ | 6 | ||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Derivatives NUG contracts(2) |
$ | 691 | $ | | $ | | $ | | $ | 378 | $ | 159 | $ | 154 | ||||||||||||||
(1) | Excludes $(7) million of receivables, payables and accrued income. |
|
(2) | NUG contracts are subject to regulatory accounting and do not impact
earnings. |
30
Recurring Fair Value Measures as of December 31, 2009 | ||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||
FirstEnergy | FES | OE | TE | JCP&L | Met-Ed | Penelec | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Nuclear Decommissioning Trust Investments |
||||||||||||||||||||||||||||
Equity securities consumer products |
$ | 130 | $ | | $ | | $ | | $ | 38 | $ | 59 | $ | 33 | ||||||||||||||
Equity securities technology |
57 | | | | 17 | 26 | 14 | |||||||||||||||||||||
Equity securities utilities & energy |
59 | | | | 17 | 27 | 15 | |||||||||||||||||||||
Equity securities financial |
39 | | | | 12 | 17 | 10 | |||||||||||||||||||||
Equity securities other |
9 | | | | 3 | 4 | 2 | |||||||||||||||||||||
Total Assets(1) |
$ | 294 | $ | | $ | | $ | | $ | 87 | $ | 133 | $ | 74 | ||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Derivatives commodity contracts |
$ | 11 | $ | 11 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Total Liabilities |
$ | 11 | $ | 11 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
31
Level 2 | ||||||||||||||||||||||||||||
FirstEnergy | FES | OE | TE | JCP&L | Met-Ed | Penelec | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Nuclear Decommissioning Trust Investments |
||||||||||||||||||||||||||||
U.S. government debt securities |
$ | 558 | $ | 306 | $ | 118 | $ | 72 | $ | 23 | $ | 30 | $ | 9 | ||||||||||||||
U.S. state debt securities |
188 | 15 | | | 41 | 82 | 50 | |||||||||||||||||||||
Foreign government debt securities |
279 | 279 | | | | | | |||||||||||||||||||||
Corporate debt securities |
484 | 443 | | | 15 | 20 | 6 | |||||||||||||||||||||
Other |
35 | 29 | 2 | | 1 | 2 | 1 | |||||||||||||||||||||
Total nuclear decommissioning trust investments |
$ | 1,544 | $ | 1,072 | $ | 120 | $ | 72 | $ | 80 | $ | 134 | $ | 66 | ||||||||||||||
Rabbi Trust Investments |
||||||||||||||||||||||||||||
Equity securities financial |
$ | 1 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Other |
9 | | | | | | | |||||||||||||||||||||
Total rabbi trust investments |
$ | 10 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Nuclear Fuel Disposal Trust Investments |
||||||||||||||||||||||||||||
U.S. state debt securities |
$ | 189 | $ | | $ | | $ | | $ | 189 | $ | | $ | | ||||||||||||||
Other |
11 | | | | 11 | | | |||||||||||||||||||||
Total nuclear fuel disposal trust investments |
$ | 200 | $ | | $ | | $ | | $ | 200 | $ | | $ | | ||||||||||||||
NUG Trust Investments |
||||||||||||||||||||||||||||
U.S. state debt securities |
$ | 101 | $ | | $ | | $ | | $ | | $ | | $ | 101 | ||||||||||||||
Other |
19 | | | | | | 19 | |||||||||||||||||||||
Total NUG trust investments |
$ | 120 | $ | | $ | | $ | | $ | | $ | | $ | 120 | ||||||||||||||
Derivatives Commodity Contracts |
$ | 34 | $ | 15 | $ | | $ | | $ | 5 | $ | 9 | $ | 5 | ||||||||||||||
Other |
$ | 1 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Total Assets(1) |
$ | 1,909 | $ | 1,087 | $ | 120 | $ | 72 | $ | 285 | $ | 143 | $ | 191 | ||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Derivatives commodity contracts |
$ | 224 | $ | 224 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Total Liabilities |
$ | 224 | $ | 224 | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Level 3 | ||||||||||||||||||||||||||||
FirstEnergy | FES | OE | TE | JCP&L | Met-Ed | Penelec | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Derivatives NUG contracts(2) |
$ | 200 | $ | | $ | | $ | | $ | 9 | $ | 176 | $ | 15 | ||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Derivatives NUG contracts(2) |
$ | 643 | $ | | $ | | $ | | $ | 399 | $ | 143 | $ | 101 | ||||||||||||||
(1) | Excludes $21 million of receivables, payables and accrued income. |
|
(2) | NUG contracts are subject to regulatory accounting and do not impact
earnings. |
32
FirstEnergy | JCP&L | Met-Ed | Penelec | |||||||||||||
Balance as of January 1, 2010 |
$ | (444 | ) | $ | (391 | ) | $ | 33 | $ | (86 | ) | |||||
Settlements(1) |
146 | 70 | 36 | 40 | ||||||||||||
Unrealized losses(1) |
(259 | ) | (50 | ) | (107 | ) | (102 | ) | ||||||||
Balance as of June 30, 2010 |
$ | (557 | ) | $ | (371 | ) | $ | (38 | ) | $ | (148 | ) | ||||
Balance as of April 1, 2010 |
$ | (590 | ) | $ | (394 | ) | $ | (30 | ) | $ | (166 | ) | ||||
Settlements(1) |
68 | 30 | 19 | 19 | ||||||||||||
Unrealized losses(1) |
(35 | ) | (7 | ) | (27 | ) | (1 | ) | ||||||||
Balance as of June 30, 2010 |
$ | (557 | ) | $ | (371 | ) | $ | (38 | ) | $ | (148 | ) | ||||
FirstEnergy | JCP&L | Met-Ed | Penelec | |||||||||||||
Balance as of January 1, 2009 |
$ | (332 | ) | $ | (518 | ) | $ | 150 | $ | 36 | ||||||
Settlements(1) |
179 | 90 | 43 | 47 | ||||||||||||
Unrealized losses(1) |
(383 | ) | (38 | ) | (170 | ) | (176 | ) | ||||||||
Balance as of June 30, 2009 |
$ | (536 | ) | $ | (466 | ) | $ | 23 | $ | (93 | ) | |||||
Balance as of April 1, 2009 |
$ | (476 | ) | $ | (518 | ) | $ | 76 | $ | (34 | ) | |||||
Settlements(1) |
96 | 44 | 26 | 27 | ||||||||||||
Unrealized gains (losses)(1) |
(156 | ) | 8 | (79 | ) | (86 | ) | |||||||||
Balance as of June 30, 2009 |
$ | (536 | ) | $ | (466 | ) | $ | 23 | $ | (93 | ) | |||||
(1) | Changes in fair value of NUG contracts are subject to regulatory accounting
and do not impact earnings. |
33
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Effective Portion |
||||||||||||||||
Gain Recognized in AOCL |
$ | | $ | 2 | $ | | $ | | ||||||||
Reclassification from AOCL into Interest Expense |
(3 | ) | (6 | ) | (6 | ) | (11 | ) |
Derivative Assets | Derivative Liabilities | |||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||
(In millions) | (In millions) | |||||||||||||||||
Fair Value Hedges |
Fair Value Hedges | |||||||||||||||||
Interest Rate Swaps |
$ | 62 | $ | | Interest Rate Swaps | $ | | $ | | |||||||||
Noncurrent Assets |
$ | 62 | $ | | Noncurrent Liabilities | $ | | $ | | |||||||||
34
Derivative Assets | Derivative Liabilities | |||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||
(In millions) | (In millions) | |||||||||||||||||
Cash Flow Hedges |
Cash Flow Hedges | |||||||||||||||||
Electricity Forwards |
Electricity Forwards | |||||||||||||||||
Current Assets |
$ | 40 | $ | 3 | Current Liabilities | $ | 50 | $ | 7 | |||||||||
NonCurrent Assets |
57 | 11 | NonCurrent Liabilities | 54 | 12 | |||||||||||||
Natural Gas Futures |
Natural Gas Futures | |||||||||||||||||
Current Assets |
| | Current Liabilities | 4 | 9 | |||||||||||||
NonCurrent Assets |
| | NonCurrent Liabilities | | | |||||||||||||
Other |
Other | |||||||||||||||||
Current Assets |
| | Current Liabilities | 1 | 2 | |||||||||||||
NonCurrent Assets |
| | NonCurrent Liabilities | | | |||||||||||||
$ | 97 | $ | 14 | $ | 109 | $ | 30 | |||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||
(In millions) | (In millions) | |||||||||||||||||
Economic Hedges |
Economic Hedges | |||||||||||||||||
NUG Contracts |
NUG Contracts | |||||||||||||||||
Power Purchase |
Power Purchase | |||||||||||||||||
Contract Asset |
$ | 134 | $ | 200 | Contract Liability | $ | 691 | $ | 643 | |||||||||
Other |
Other | |||||||||||||||||
Current Assets |
4 | | Current Liabilities | 114 | 106 | |||||||||||||
NonCurrent Assets |
10 | 19 | NonCurrent Liabilities | 55 | 97 | |||||||||||||
  |