For
the transition period from
|
to
|
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
|
||
1-2578
|
OHIO
EDISON COMPANY
|
34-0437786
|
(An
Ohio Corporation)
|
||
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
|
||
1-3491
|
PENNSYLVANIA
POWER COMPANY
|
25-0718810
|
(A
Pennsylvania 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
|
YesX
|
No
|
FirstEnergy
Corp.
|
Yes
|
NoX
|
Ohio
Edison
Company, Pennsylvania Power 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
NOVEMBER 2,
2005
|
FirstEnergy
Corp., $.10 par value
|
329,836,276
|
Ohio
Edison
Company, no par value
|
100
|
The
Cleveland
Electric Illuminating Company, no par value
|
79,590,689
|
The
Toledo
Edison Company, $5 par value
|
39,133,887
|
Pennsylvania
Power Company, $30 par value
|
6,290,000
|
Jersey
Central Power & Light Company, $10 par value
|
15,371,270
|
Metropolitan
Edison Company, no par value
|
859,500
|
Pennsylvania
Electric Company, $20 par value
|
5,290,596
|
Pages
|
||
Glossary
of Terms
|
iii-v
|
|
Part
I. Financial
Information
|
||
Items
1. and 2. - Financial Statements and Management’s Discussion and
Analysis of
Results of Operation and Financial Condition
|
||
Notes
to
Consolidated Financial Statements
|
1-25
|
|
FirstEnergy
Corp.
|
||
Consolidated
Statements of Income
|
26
|
|
Consolidated
Statements of Comprehensive Income
|
27
|
|
Consolidated
Balance Sheets
|
28
|
|
Consolidated
Statements of Cash Flows
|
29
|
|
Report
of
Independent Registered Public Accounting Firm
|
30
|
|
Management's
Discussion and Analysis of Results of Operations and
|
31-65
|
|
Financial
Condition
|
||
Ohio
Edison Company
|
||
Consolidated
Statements of Income and Comprehensive Income
|
66
|
|
Consolidated
Balance Sheets
|
67
|
|
Consolidated
Statements of Cash Flows
|
68
|
|
Report
of
Independent Registered Public Accounting Firm
|
69
|
|
Management's
Discussion and Analysis of Results of Operations and
|
70-82
|
|
Financial
Condition
|
||
The
Cleveland Electric Illuminating Company
|
||
Consolidated
Statements of Income and Comprehensive Income
|
83
|
|
Consolidated
Balance Sheets
|
84
|
|
Consolidated
Statements of Cash Flows
|
85
|
|
Report
of
Independent Registered Public Accounting Firm
|
86
|
|
Management's
Discussion and Analysis of Results of Operations and
|
87-98
|
|
Financial
Condition
|
||
The
Toledo Edison Company
|
||
Consolidated
Statements of Income and Comprehensive Income
|
99
|
|
Consolidated
Balance Sheets
|
100
|
|
Consolidated
Statements of Cash Flows
|
101
|
|
Report
of
Independent Registered Public Accounting Firm
|
102
|
|
Management's
Discussion and Analysis of Results of Operations and
|
103-114
|
|
Financial
Condition
|
||
Pennsylvania
Power Company
|
||
Consolidated
Statements
of Income and Comprehensive Income
|
115
|
|
Consolidated
Balance
Sheets
|
116
|
|
Consolidated
Statements
of Cash Flows
|
117
|
|
Report
of
Independent Registered Public Accounting Firm
|
118
|
|
Management's
Discussion and Analysis of Results of Operations and
|
119-127
|
|
Financial
Condition
|
Pages
|
||
Jersey
Central Power & Light Company
|
||
Consolidated
Statements of Income and Comprehensive Income
|
128
|
|
Consolidated
Balance Sheets
|
129
|
|
Consolidated
Statements of Cash Flows
|
130
|
|
Report
of
Independent Registered Public Accounting Firm
|
131
|
|
Management's
Discussion and Analysis of Results of Operations and
|
132-140
|
|
Financial
Condition
|
||
Metropolitan
Edison Company
|
||
Consolidated
Statements of Income and Comprehensive Income
|
141
|
|
Consolidated
Balance Sheets
|
142
|
|
Consolidated
Statements of Cash Flows
|
143
|
|
Report
of
Independent Registered Public Accounting Firm
|
144
|
|
Management's
Discussion and Analysis of Results of Operations and
|
145-153
|
|
Financial
Condition
|
||
Pennsylvania
Electric Company
|
||
Consolidated
Statements of Income and Comprehensive Income
|
154
|
|
Consolidated
Balance Sheets
|
155
|
|
Consolidated
Statements of Cash Flows
|
156
|
|
Report
of
Independent Registered Public Accounting Firm
|
157
|
|
Management's
Discussion and Analysis of Results of Operations and
|
158-166
|
|
Financial
Condition
|
||
Item
3. Quantitative
and Qualitative Disclosures About Market Risk
|
167
|
|
Item
4. Controls
and Procedures
|
167
|
|
Part
II. Other
Information
|
||
Item
1. Legal
Proceedings
|
168
|
|
168
|
||
Item
2. Changes
in Securities, Use of Proceeds and Issuer Purchases of Equity
Securities
|
||
Item 5. Other Information |
168
|
|
Item 6. Exhibits
|
169-184
|
|
ATSI
|
American
Transmission Systems, Incorporated, owns and operates transmission
facilities
|
CEI
|
The
Cleveland
Electric Illuminating Company, an Ohio electric utility operating
subsidiary
|
CFC
|
Centerior
Funding Corporation, a wholly owned finance subsidiary of
CEI
|
Companies
|
OE,
CEI, TE,
Penn, JCP&L, Met-Ed and Penelec
|
EUOC
|
Electric
Utility Operating Companies (OE, CEI, TE, Penn, JCP&L, Met-Ed,
Penelec, and ATSI)
|
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
|
FGCO
|
FirstEnergy
Generation Corp., owns and operates non-nuclear generating
facilities
|
FirstCom
|
First
Communications, LLC, provides local and long-distance telephone
service
|
FirstEnergy
|
FirstEnergy
Corp., a registered public utility holding company
|
FSG
|
FirstEnergy
Facilities Services Group, LLC, the parent company of several
heating,
ventilation,
|
air
conditioning and energy management companies
|
|
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
|
JCP&L
Transition
|
JCP&L
Transition Funding LLC, a Delaware limited liability company
and issuer of
transition bonds
|
Met-Ed
|
Metropolitan
Edison Company, a Pennsylvania electric utility operating
subsidiary
|
MYR
|
MYR
Group,
Inc., a utility infrastructure construction service
company
|
NGC
|
FirstEnergy
Nuclear Generation Corp. established to acquire FirstEnergy's
nuclear
generating facilities
|
OE
|
Ohio
Edison
Company, an Ohio electric utility operating subsidiary
|
OE
Companies
|
OE
and Penn
|
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
|
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
|
TE
|
The
Toledo
Edison Company, an Ohio electric utility operating
subsidiary
|
TEBSA
|
Termobarranquilla
S. A., Empresa de Servicios
Publicos
|
AOCL
|
Accumulated
Other Comprehensive Loss
|
|
APB
|
Accounting
Principles Board
|
|
APB
25
|
APB
Opinion
No. 25, "Accounting for Stock Issued to Employees"
|
|
APB
29
|
APB
Opinion
No. 29, “Accounting for Nonmonetary Transactions”
|
|
ARO
|
Asset
Retirement Obligation
|
|
BGS
|
Basic
Generation Service
|
|
CAIR
|
Clean
Air
Interstate Rule
|
|
CAL
|
Confirmatory
Action Letter
|
|
CAT
|
Commercial
Activity Tax
|
|
CO2
|
Carbon Dioxide | |
CTC
|
Competitive
Transition Charge
|
|
DOJ
|
United
States
Department of Justice
|
|
ECAR
|
East
Central
Area Reliability Coordination Agreement
|
|
EITF
|
Emerging
Issues Task Force
|
|
EITF
03-1
|
EITF
Issue
No. 03-1, "The Meaning of Other-Than-Temporary and Its Application
to
Certain
|
|
Investments”
|
||
EITF
04-13
|
EITF
Issue
No. 04-13, “Accounting for Purchases and Sales of Inventory with the Same
Counterparty”
|
|
EITF
99-19
|
EITF
Issue
No. 99-19, “Reporting Revenue Gross as a Principal versus Net as an
Agent”
|
|
EPA
|
Environmental
Protection Agency
|
|
ERO
|
Electric
Reliability Organization
|
|
FASB
|
Financial
Accounting Standards Board
|
|
FERC
|
Federal
Energy Regulatory Commission
|
|
FIN
|
FASB
Interpretation
|
|
FIN
46R
|
FIN
46
(revised December 2003), "Consolidation of Variable Interest
Entities"
|
FIN
47
|
FASB
Interpretation 47, “Accounting for Conditional Asset Retirement
Obligations - an interpretation
of FASB Statement No. 143”
|
FMBs
|
First
Mortgage Bonds
|
FSP
|
FASB
Staff
Position
|
FSP
EITF
03-1-1
|
FASB
Staff
Position No. EITF Issue 03-1-1, "Effective Date of Paragraphs
10-20 of
EITF Issue
|
No.
03-1,
The
Meaning of Other-Than-Temporary Impairment and Its Application
to Certain
|
|
Investments"
|
|
FSP
109-1
|
FASB
Staff
Position No. 109-1, “Application of FASB Statement No. 109,
Accounting for Income
Taxes,
to the Tax
Deduction on Qualified Production Activities Provided by the
American
Jobs
Creation
Act
of 2004”
|
GCAF
|
Generation
Charge Adjustment Factor
|
GAAP
|
Accounting
Principles Generally Accepted in the United States
|
GHG
|
Greenhouse
Gases
|
HVAC
|
Heating,
Ventilation and Air-conditioning
|
IBEW
|
International
Brotherhood of Electrical Workers
|
KWH
|
Kilowatt-hours
|
LOC
|
Letter
of
Credit
|
MEIUG
|
Met-Ed
Industrial Users Group
|
MISO
|
Midwest
Independent Transmission System Operator, Inc.
|
MOU
|
Memorandum
of
Understanding
|
MSG
|
Market
Support Generation
|
MTC
|
Market
Transition Charge
|
MW
|
Megawatts
|
NAAQS
|
National
Ambient Air Quality Standards
|
NERC
|
North
American Electric Reliability Council
|
NJBPU
|
New
Jersey
Board of Public Utilities
|
NOAC
|
Northwest
Ohio Aggregation Coalition
|
NOV
|
Notices
of
Violation
|
NOx
|
Nitrogen
Oxide
|
NRC
|
Nuclear
Regulatory Commission
|
NUG
|
Non-Utility
Generation
|
OCA
|
Office
of
Consumer Advocate
|
OCC
|
Ohio
Consumers' Counsel
|
OCI
|
Other
Comprehensive Income
|
OPAE
|
Ohio
Partners
for Affordable Energy
|
OPEB
|
Other
Post-Employment Benefits
|
OSBA
|
Office
of
Small Business Advocate
|
OTS
|
Office
of
Trial Staff
|
PCAOB
|
Public
Company Accounting Oversight Board (United States)
|
PCRBs
|
Pollution
Control Revenue Bonds
|
PICA
|
Penelec
Industrial Customer Association
|
PJM
|
PJM
Interconnection, L.L.C.
|
PLR
|
Provider
of
Last Resort
|
PPUC
|
Pennsylvania
Public Utility Commission
|
PRP
|
Potentially
Responsible Party
|
PSA
|
Purchase
and
Sale Agreement
|
PUCO
|
Public
Utilities Commission of Ohio
|
PUHCA
|
Public
Utility Holding Company Act of 1935
|
RCP
|
Rate
Certainty Plan
|
RSP
|
Rate
Stabilization Plan
|
RTC
|
Regulatory
Transition Charge
|
S&P
|
Standard
& Poor’s Ratings Service
|
SBC
|
Societal
Benefits Charge
|
SEC
|
United
States
Securities and Exchange Commission
|
SFAS
|
Statement
of
Financial Accounting Standards
|
SFAS
71
|
SFAS
No. 71,
"Accounting for the Effects of Certain Types of
Regulation"
|
SFAS
123
|
SFAS
No. 123,
"Accounting for Stock-Based Compensation"
|
SFAS
123(R)
|
SFAS
No. 123
(revised 2004), “Share-Based Payment”
|
SFAS
131
|
SFAS
No. 131,
“Disclosures about Segments of an Enterprise and Related
Information”
|
SFAS
133
|
SFAS
No. 133,
“Accounting for Derivative Instruments and Hedging
Activities”
|
SFAS
140
|
SFAS
No. 140,
“Accounting for Transfers and Servicing of Financial Assets
and
|
Extinguishment
of Liabilities”
|
|
SFAS
144
|
SFAS
No. 144,
"Accounting for the Impairment or Disposal of Long-Lived
Assets"
|
SFAS
153
|
SFAS
No. 153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion
No.
29”
|
SFAS
154
|
SFAS
No. 154,
“Accounting Changes and Error Corrections - a replacement of APB
Opinion
No.
20
and FASB
Statement No. 3”
|
SO2
|
Sulfur
Dioxide
|
TBC
|
Transition
Bond Charge
|
TMI-2
|
Three
Mile
Island Unit 2
|
UWUA
|
Utility
Workers Union of America
|
VIE
|
Variable
Interest Entity
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
September
30,
|
September
30,
|
||||||||||||
Reconciliation
of Basic and Diluted Earnings per Share
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
thousands, except per share amounts)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Before
Discontinued Operations
|
|
$
|
331,832
|
|
$
|
296,125
|
|
$
|
651,627
|
|
$
|
670,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Shares of Common Stock Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator
for basic earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(weighted
average shares outstanding)
|
|
|
328,119
|
|
|
327,499
|
|
|
328,030
|
|
|
327,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumed
exercise of dilutive stock options and awards
|
|
|
2,074
|
|
|
1,600
|
|
|
1,896
|
|
|
1,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator
for diluted earnings per share
|
|
|
330,193
|
|
|
329,099
|
|
|
329,926
|
|
|
328,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Before
Discontinued Operations per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$1.01
|
|
$0.90
|
|
$1.99
|
|
$2.05
|
|
|||
Diluted
|
|
$1.01
|
|
$0.90
|
|
$1.98
|
|
$2.04
|
|
Three
Months Ended
|
|
FirstEnergy
|
|
CEI
|
|
TE
|
|
JCP&L
|
|
Met-Ed
|
|
Penelec
|
|
||||||
|
|
(In
millions)
|
|
||||||||||||||||
Balance
as of
July 1, 2005
|
|
$
|
6,033
|
|
$
|
1,694
|
|
$
|
505
|
|
$
|
1,984
|
|
$
|
868
|
|
$
|
887
|
|
Pre-merger
tax adjustments related to Centerior acquisition
|
|
|
(9
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
Balance
as of
September 30, 2005
|
|
$
|
6,024
|
|
$
|
1,689
|
|
$
|
501
|
|
$
|
1,984
|
|
$
|
868
|
|
$
|
887
|
|
Nine
Months Ended
|
|
FirstEnergy
|
|
CEI
|
|
TE
|
|
JCP&L
|
|
Met-Ed
|
|
Penelec
|
|
||||||
|
|
(In
millions)
|
|
||||||||||||||||
Balance
as of
January 1, 2005
|
|
$
|
6,050
|
|
$
|
1,694
|
|
$
|
505
|
|
$
|
1,985
|
|
$
|
870
|
|
$
|
888
|
|
Non-core
asset sales
|
|
|
(13
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Pre-merger
tax adjustments related to Centerior acquisition
|
|
|
(9
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
Pre-merger
tax adjustments related to GPU acquisition
|
|
|
(4
|
)
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
Balance
as of
September 30, 2005
|
|
$
|
6,024
|
|
$
|
1,689
|
|
$
|
501
|
|
$
|
1,984
|
|
$
|
868
|
|
$
|
887
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
Revenues
|
|
$
|
1
|
|
$
|
151
|
|
$
|
214
|
|
$
|
508
|
|
Income
before
income taxes
|
|
$
|
1
|
|
$
|
4
|
|
$
|
10
|
|
$
|
10
|
|
Income
from
discontinued operations, net of tax
|
|
$
|
1
|
|
$
|
3
|
|
$
|
19
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|||||||||||
Discontinued
operations (net of tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain
on
sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
gas
business
|
|
$
|
-
|
|
$
|
-
|
|
$
|
5
|
|
$
|
-
|
|
FSG
and MYR
subsidiaries
|
|
|
-
|
|
|
-
|
|
|
12
|
|
|
-
|
|
Reclassification
of operating income, net of tax
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|
6
|
|
Total
|
|
$
|
1
|
|
$
|
3
|
|
$
|
19
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||||
|
|
|
September
30,
|
|
September
30,
|
|
||||||||||
|
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||||
|
|
|
(In
thousands, except per share amounts)
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Net
income,
as reported
|
|
|
|
$
|
332,360
|
|
$
|
298,622
|
|
$
|
670,078
|
|
$
|
676,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
back
compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reported
in
net income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(based
on APB
25)(1)
|
|
|
|
|
17,404
|
|
|
13,549
|
|
|
39,785
|
|
|
29,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Deduct
compensation expense based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
upon
estimated fair value, net of tax(2)
|
|
|
|
|
(18,378
|
)
|
|
(16,981
|
)
|
|
(44,825
|
)
|
|
(40,380
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income,
as adjusted
|
|
|
|
$
|
331,386
|
|
$
|
295,190
|
|
$
|
665,038
|
|
$
|
665,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
Per
Share of Common Stock -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
|
|
$1.01
|
|
$0.91
|
|
$2.04
|
|
$2.07
|
|
|||||
As
adjusted
|
|
|
|
$1.01
|
|
$0.90
|
|
$2.03
|
|
$2.03
|
|
|||||
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
|
|
$1.01
|
|
$0.91
|
|
$2.03
|
|
$2.06
|
|
|||||
As
adjusted
|
|
|
|
$1.00
|
|
$0.90
|
|
$2.02
|
|
$2.02
|
|
|||||
(1) Includes
restricted stock, restricted stock units, stock options, performance
shares, Employee Stock
Ownership
Plan, Executive
Deferred Compensation Plan and Deferred Compensation Plan for
outside Directors.
|
|
|||||||||||||||
(2)
Assumes
vesting at age 65.
|
Three
Months Ended
|
|
FirstEnergy
|
|
OE
|
|
CEI
|
|
TE
|
|
Penn
|
|
JCP&L
|
|
Met-Ed
|
|
Penelec
|
|
||||||||
|
|
(In
millions)
|
|
||||||||||||||||||||||
Balance,
July
1, 2005
|
|
$
|
1,113
|
|
$
|
208
|
|
$
|
281
|
|
$
|
201
|
|
$
|
143
|
|
$
|
75
|
|
$
|
137
|
|
$
|
68
|
|
Liabilities
incurred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Liabilities
settled
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Accretion
|
|
|
18
|
|
|
3
|
|
|
5
|
|
|
4
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
1
|
|
Revisions
in
estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cash
flows
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|
11
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Balance,
September 30, 2005
|
|
$
|
1,130
|
|
$
|
209
|
|
$
|
281
|
|
$
|
200
|
|
$
|
156
|
|
$
|
76
|
|
$
|
139
|
|
$
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
July
1, 2004
|
|
$
|
1,217
|
|
$
|
194
|
|
$
|
263
|
|
$
|
188
|
|
$
|
134
|
|
$
|
113
|
|
$
|
216
|
|
$
|
108
|
|
Liabilities
incurred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Liabilities
settled
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Accretion
|
|
|
19
|
|
|
4
|
|
|
5
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
1
|
|
Revisions
in
estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cash
flows
|
|
|
(176
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(43
|
)
|
|
(89
|
)
|
|
(44
|
)
|
Balance,
September 30, 2004
|
|
$
|
1,060
|
|
$
|
198
|
|
$
|
268
|
|
$
|
191
|
|
$
|
136
|
|
$
|
72
|
|
$
|
130
|
|
$
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
FirstEnergy
|
OE
|
CEI
|
TE
|
Penn
|
JCP&L
|
Met-Ed
|
Penelec
|
|
|||||||||||||||
|
|
(In
millions)
|
|
||||||||||||||||||||||
Balance,
January 1, 2005
|
|
$
|
1,078
|
|
$
|
201
|
|
$
|
272
|
|
$
|
195
|
|
$
|
138
|
|
$
|
72
|
|
$
|
133
|
|
$
|
67
|
|
Liabilities
incurred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Liabilities
settled
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Accretion
|
|
|
53
|
|
|
10
|
|
|
14
|
|
|
10
|
|
|
7
|
|
|
4
|
|
|
6
|
|
|
2
|
|
Revisions
in
estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cash
flows
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|
11
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Balance,
September 30, 2005
|
|
$
|
1,130
|
|
$
|
209
|
|
$
|
281
|
|
$
|
200
|
|
$
|
156
|
|
$
|
76
|
|
$
|
139
|
|
$
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
January 1, 2004
|
|
$
|
1,179
|
|
$
|
188
|
|
$
|
255
|
|
$
|
182
|
|
$
|
130
|
|
$
|
110
|
|
$
|
210
|
|
$
|
105
|
|
Liabilities
incurred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Liabilities
settled
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Accretion
|
|
|
57
|
|
|
10
|
|
|
13
|
|
|
9
|
|
|
6
|
|
|
5
|
|
|
9
|
|
|
4
|
|
Revisions
in
estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cash
flows
|
|
|
(176
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(43
|
)
|
|
(89
|
)
|
|
(44
|
)
|
Balance,
September 30, 2004
|
|
$
|
1,060
|
|
$
|
198
|
|
$
|
268
|
|
$
|
191
|
|
$
|
136
|
|
$
|
72
|
|
$
|
130
|
|
$
|
65
|
|
|
|
Three
Months Ended
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Pension
Benefits
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Service
cost
|
|
$
|
19
|
|
$
|
19
|
|
$
|
58
|
|
$
|
58
|
|
Interest
cost
|
|
|
64
|
|
|
63
|
|
|
191
|
|
|
189
|
|
Expected
return on plan assets
|
|
|
(86
|
)
|
|
(71
|
)
|
|
(259
|
)
|
|
(215
|
)
|
Amortization
of prior service cost
|
|
|
2
|
|
|
2
|
|
|
6
|
|
|
7
|
|
Recognized
net actuarial loss
|
|
|
9
|
|
|
10
|
|
|
27
|
|
|
29
|
|
Net
periodic
cost
|
|
$
|
8
|
|
$
|
23
|
|
$
|
23
|
|
$
|
68
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Other
Postretirement Benefits
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
Service
cost
|
|
$
|
10
|
|
$
|
9
|
|
$
|
30
|
|
$
|
27
|
|
Interest
cost
|
|
|
27
|
|
|
26
|
|
|
83
|
|
|
83
|
|
Expected
return on plan assets
|
|
|
(11
|
)
|
|
(10
|
)
|
|
(34
|
)
|
|
(32
|
)
|
Amortization
of prior service cost
|
|
|
(11
|
)
|
|
(9
|
)
|
|
(33
|
)
|
|
(28
|
)
|
Recognized
net actuarial loss
|
|
|
10
|
|
|
9
|
|
|
30
|
|
|
29
|
|
Net
periodic
cost
|
|
$
|
25
|
|
$
|
25
|
|
$
|
76
|
|
$
|
79
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
September
30,
|
|
|||||||||
Pension
Benefits (Credit)
|
|
2005
|
2004
|
2005
|
2004
|
|
|||||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
OE
|
|
$
|
0.2
|
|
$
|
1.7
|
|
$
|
0.7
|
|
$
|
5.2
|
|
Penn
|
|
|
(0.2
|
)
|
|
0.1
|
|
|
(0.7
|
)
|
|
0.4
|
|
CEI
|
|
|
0.3
|
|
|
1.6
|
|
|
1.0
|
|
|
4.8
|
|
TE
|
|
|
0.3
|
|
|
0.8
|
|
|
1.0
|
|
|
2.3
|
|
JCP&L
|
|
|
(0.3
|
)
|
|
1.9
|
|
|
(0.8
|
)
|
|
5.6
|
|
Met-Ed
|
|
|
(1.1
|
)
|
|
0.1
|
|
|
(3.2
|
)
|
|
0.2
|
|
Penelec
|
|
|
(1.3
|
)
|
|
0.1
|
|
|
(4.0
|
)
|
|
0.4
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
September
30,
|
|
|||||||||
Other
Postretirement Benefits
|
|
2005
|
2004
|
2005
|
2004
|
|
|||||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
OE
|
|
$
|
5.8
|
|
$
|
5.7
|
|
$
|
17.3
|
|
$
|
17.7
|
|
Penn
|
|
|
1.2
|
|
|
1.2
|
|
|
3.5
|
|
|
3.7
|
|
CEI
|
|
|
3.8
|
|
|
4.4
|
|
|
11.4
|
|
|
13.7
|
|
TE
|
|
|
2.2
|
|
|
1.7
|
|
|
6.5
|
|
|
5.0
|
|
JCP&L
|
|
|
1.5
|
|
|
1.0
|
|
|
5.7
|
|
|
3.5
|
|
Met-Ed
|
|
|
0.4
|
|
|
0.7
|
|
|
1.2
|
|
|
2.5
|
|
Penelec
|
|
|
2.0
|
|
|
0.7
|
|
|
5.9
|
|
|
2.5
|
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||
|
September
30,
|
|
September
30,
|
|
||||||||||
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||||
|
(In
millions)
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
JCP&L
|
$
|
33
|
|
$
|
26
|
|
$
|
74
|
|
$
|
71
|
|
||
Met-Ed
|
|
10
|
|
|
13
|
|
|
40
|
|
|
38
|
|
||
Penelec
|
|
7
|
|
|
7
|
|
|
21
|
|
|
20
|
|
||
Total
|
$
|
50
|
|
$
|
46
|
|
$
|
135
|
|
$
|
129
|
|
OE
|
|
$
|
36.0
|
CEI
|
|
|
7.5
|
TE
|
|
|
17.5
|
Other
FirstEnergy subsidiaries
|
|
|
10.7
|
Total
FirstEnergy
|
|
$
|
71.7
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||
September
30, 2005
|
September
30, 2005
|
|||||||||
(In
millions)
|
||||||||||
OE
|
|
$
|
1.6
|
$
|
6.5
|
|||||
CEI
|
|
|
(3.1
|
)
|
(1.7
|
)
|
||||
TE
|
|
|
0.7
|
1.2
|
||||||
Other
FirstEnergy subsidiaries
|
|
|
0.7
|
1.5
|
||||||
Total
FirstEnergy
|
|
$
|
(0.1
|
)
|
$
|
7.5
|
|
|
|
Total
|
|
Collateral
Paid
|
|
Remaining
|
|
|||||||
Collateral
Provisions
|
|
|
Exposure
|
|
Cash
|
|
LOC
|
|
Exposure
|
|
|||||
|
|
|
(In
millions)
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
rating
downgrade
|
|
|
|
$
|
445
|
|
$
|
213
|
|
$
|
18
|
|
$
|
214
|
|
Adverse
event
|
|
|
|
|
77
|
|
|
-
|
|
|
5
|
|
|
72
|
|
Total
|
|
|
|
$
|
522
|
|
$
|
213
|
|
$
|
23
|
|
$
|
286
|
|
Subsidiary
Company
|
|
Parent
Company
|
|
Capacity
|
|
||
|
|
|
|
(In
millions)
|
|
||
OES
Capital,
Incorporated
|
|
|
OE
|
|
$
|
170
|
|
Centerior
Funding Corp.
|
|
|
CEI
|
|
|
200
|
|
Penn
Power
Funding LLC
|
|
|
Penn
|
|
|
25
|
|
Met-Ed
Funding LLC
|
|
|
Met-Ed
|
|
|
80
|
|
Penelec
Funding LLC
|
|
|
Penelec
|
|
|
75
|
|
|
|
|
|
|
$
|
550
|
|
|
|
Estimated
Net Amortization
|
|
||||||||||||||||||||||
|
|
RCP
|
|
RSP
|
|
||||||||||||||||||||
Amortization
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
Total
|
|
||||||||
Period
|
|
OE
|
|
CEI
|
|
TE
|
|
Ohio
|
|
OE
|
|
CEI
|
|
TE
|
|
Ohio
|
|
||||||||
|
|
(In
millions)
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2006
|
|
$
|
169
|
|
$
|
100
|
|
$
|
80
|
|
$
|
349
|
|
$
|
175
|
|
$
|
94
|
|
$
|
73
|
|
$
|
342
|
|
2007
|
|
|
176
|
|
|
111
|
|
|
89
|
|
|
376
|
|
|
237
|
|
|
104
|
|
|
82
|
|
|
423
|
|
2008
|
|
|
198
|
|
|
129
|
|
|
100
|
|
|
427
|
|
|
206
|
|
|
122
|
|
|
159
|
|
|
487
|
|
2009
|
|
|
-
|
|
|
216
|
|
|
-
|
|
|
216
|
|
|
-
|
|
|
318
|
|
|
-
|
|
|
318
|
|
2010
|
|
|
-
|
|
|
268
|
|
|
-
|
|
|
268
|
|
|
-
|
|
|
271
|
|
|
-
|
|
|
271
|
|
Net
Amortization*
|
|
$
|
543
|
|
$
|
824
|
|
$
|
269
|
|
$
|
1,636
|
|
$
|
618
|
|
$
|
909
|
|
$
|
314
|
|
$
|
1,841
|
|
*
RCP
aggregate amortization is less than amortization under the RSP due
to the
accelerated application of regulatory liabilities
to reduce deferred shopping
incentives.
|
·
|
An
annual
increase in distribution revenues of $23 million effective June 1,
2005, associated with the Phase I Order
reconsideration;
|
·
|
An
annual
increase in distribution revenues of $36 million effective June 1,
2005, related to JCP&L's Phase II
Petition;
|
·
|
An
annual
reduction in both rates and amortization expense of $8 million,
effective
June 1, 2005, in anticipation of an NJBPU order regarding
JCP&L's
request to securitize up to $277 million of its deferred cost
balance;
|
·
|
An
increase
in JCP&L's authorized return on common equity from 9.5% to 9.75%;
and
|
·
|
A
commitment
by JCP&L to maintain a target level of customer service reliability
with a reduction in JCP&L's authorized return on common equity from
9.75% to 9.5% if the target is not met for two consecutive quarters.
The
authorized return on common equity would then be restored to 9.75%
if the
target is met for two consecutive
quarters.
|
EITF
Issue No. 05-6, "Determining the Amortization Period for Leasehold
Improvements Purchased after Lease Inception or Acquired in a Business
Combination"
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement of APB
Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion No.
29”
|
Segment
Financial Information
|
|||||||||||||||||||
Power
|
|||||||||||||||||||
Supply
|
|||||||||||||||||||
Regulated
|
Management
|
Facilities
|
Reconciling
|
||||||||||||||||
Services
|
Services
|
Services
|
Other
|
Adjustments
|
Consolidated
|
||||||||||||||
(In
millions)
|
|||||||||||||||||||
Three
Months Ended:
|
|||||||||||||||||||
September
30, 2005
|
|||||||||||||||||||
External
revenues
|
$
|
1,676
|
$
|
1,712
|
$
|
59
|
$
|
138
|
$
|
2
|
$
|
3,587
|
|||||||
Internal
revenues
|
79
|
-
|
-
|
-
|
(79
|
)
|
-
|
||||||||||||
Total
revenues
|
1,755
|
1,712
|
59
|
138
|
(77
|
)
|
3,587
|
||||||||||||
Depreciation
and amortization
|
377
|
9
|
-
|
1
|
6
|
393
|
|||||||||||||
Net
interest
charges
|
88
|
11
|
-
|
2
|
57
|
158
|
|||||||||||||
Income
taxes
|
254
|
7
|
-
|
4
|
(28
|
)
|
237
|
||||||||||||
Income
before
discontinued operations
|
366
|
10
|
(2
|
)
|
6
|
(49
|
)
|
331
|
|||||||||||
Discontinued
operations
|
-
|
-
|
-
|
1
|
-
|
1
|
|||||||||||||
Net
income
(loss)
|
366
|
10
|
(2
|
)
|
7
|
(49
|
)
|
332
|
|||||||||||
Total
assets
|
28,385
|
1,741
|
82
|
522
|
644
|
31,374
|
|||||||||||||
Total
goodwill
|
5,938
|
24
|
-
|
62
|
-
|
6,024
|
|||||||||||||
Property
additions
|
207
|
79
|
-
|
1
|
7
|
294
|
|||||||||||||
September
30, 2004
|
|||||||||||||||||||
External
revenues
|
$
|
1,481
|
$
|
1,756
|
$
|
61
|
$
|
90
|
$
|
(3
|
)
|
$
|
3,385
|
||||||
Internal
revenues
|
80
|
-
|
-
|
-
|
(80
|
)
|
-
|
||||||||||||
Total
revenues
|
1,561
|
1,756
|
61
|
90
|
(83
|
)
|
3,385
|
||||||||||||
Depreciation
and amortization
|
374
|
9
|
-
|
-
|
9
|
392
|
|||||||||||||
Net
interest
charges
|
82
|
9
|
-
|
-
|
60
|
151
|
|||||||||||||
Income
taxes
|
226
|
30
|
-
|
(1
|
)
|
(41
|
)
|
214
|
|||||||||||
Income
before
discontinued operations
|
315
|
44
|
-
|
(2
|
)
|
(61
|
)
|
296
|
|||||||||||
Discontinued
operations
|
-
|
-
|
1
|
2
|
-
|
3
|
|||||||||||||
Net
income
(loss)
|
315
|
44
|
1
|
-
|
(61
|
)
|
299
|
||||||||||||
Total
assets
|
28,416
|
1,467
|
182
|
596
|
564
|
31,225
|
|||||||||||||
Total
goodwill
|
5,965
|
24
|
37
|
75
|
-
|
6,101
|
|||||||||||||
Property
additions
|
157
|
46
|
-
|
1
|
7
|
211
|
|||||||||||||
Nine
Months Ended:
|
|||||||||||||||||||
September
30, 2005
|
|||||||||||||||||||
External
revenues
|
$
|
4,366
|
$
|
4,346
|
$
|
161
|
$
|
385
|
$
|
19
|
$
|
9,277
|
|||||||
Internal
revenues
|
237
|
-
|
-
|
-
|
(237
|
)
|
-
|
||||||||||||
Total
revenues
|
4,603
|
4,346
|
161
|
385
|
(218
|
)
|
9,277
|
||||||||||||
Depreciation
and amortization
|
1,076
|
26
|
-
|
2
|
19
|
1,123
|
|||||||||||||
Net
interest
charges
|
285
|
29
|
1
|
4
|
170
|
489
|
|||||||||||||
Income
taxes
|
595
|
(10
|
)
|
3
|
13
|
(2
|
)
|
599
|
|||||||||||
Income
before
discontinued operations
|
856
|
(15
|
)
|
(6
|
)
|
18
|
(201
|
)
|
652
|
||||||||||
Discontinued
operations
|
-
|
-
|
13
|
5
|
-
|
18
|
|||||||||||||
Net
income
(loss)
|
856
|
(15
|
)
|
7
|
23
|
(201
|
)
|
670
|
|||||||||||
Total
assets
|
28,385
|
1,741
|
82
|
522
|
644
|
31,374
|
|||||||||||||
Total
goodwill
|
5,938
|
24
|
-
|
62
|
-
|
6,024
|
|||||||||||||
Property
additions
|
506
|
226
|
1
|
5
|
18
|
756
|
|||||||||||||
September
30, 2004
|
|||||||||||||||||||
External
revenues
|
$
|
4,049
|
$
|
4,828
|
$
|
156
|
$
|
324
|
$
|
4
|
$
|
9,361
|
|||||||
Internal
revenues
|
239
|
-
|
-
|
-
|
(239
|
)
|
-
|
||||||||||||
Total
revenues
|
4,288
|
4,828
|
156
|
324
|
(235
|
)
|
9,361
|
||||||||||||
Depreciation
and amortization
|
1,098
|
26
|
1
|
-
|
28
|
1,153
|
|||||||||||||
Net
interest
charges
|
301
|
30
|
-
|
2
|
169
|
502
|
|||||||||||||
Income
taxes
|
541
|
55
|
(1
|
)
|
(19
|
)
|
(70
|
)
|
506
|
||||||||||
Income
before
discontinued operations
|
761
|
79
|
(1
|
)
|
39
|
(207
|
)
|
671
|
|||||||||||
Discontinued
operations
|
-
|
-
|
3
|
3
|
-
|
6
|
|||||||||||||
Net
income
(loss)
|
761
|
79
|
2
|
42
|
(207
|
)
|
677
|
||||||||||||
Total
assets
|
28,416
|
1,467
|
182
|
596
|
564
|
31,225
|
|||||||||||||
Total
goodwill
|
5,965
|
24
|
37
|
75
|
-
|
6,101
|
|||||||||||||
Property
additions
|
377
|
149
|
2
|
1
|
17
|
546
|
|||||||||||||
Reconciling
adjustments to segment operating results from internal management
reporting to consolidated external financial reporting primarily
|
|||||||||||||||||||
consist
of
interest expense related to holding company debt, corporate support
services revenues and expenses, fuel marketing revenues, which
are
|
|||||||||||||||||||
reflected
as
reductions to expenses for internal management reporting purposes,
and
elimination of intersegment transactions.
|
|
|
OE
|
|
Penn
|
|
CEI
|
|
TE
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
(In
millions)
|
|
|||||||||||
Assets
Pending Sale
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Property,
plant and equipment
|
|
$
|
1,598
|
|
$
|
440
|
|
$
|
1,305
|
|
$
|
687
|
|
Other
property and investments
|
|
|
363
|
|
|
147
|
|
|
433
|
|
|
276
|
|
Current
assets
|
|
|
93
|
|
|
38
|
|
|
73
|
|
|
42
|
|
Deferred
charges
|
|
|
(60
|
)
|
|
2
|
|
|
-
|
|
|
-
|
|
Total
|
|
$
|
1,994
|
|
$
|
627
|
|
$
|
1,811
|
|
$
|
1,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
Related to Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pending
Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
$
|
238
|
|
$
|
53
|
|
$
|
-
|
|
$
|
-
|
|
Current
liabilities
|
|
|
40
|
|
|
31
|
|
|
434
|
|
|
253
|
|
Noncurrent
liabilities
|
|
|
280
|
|
|
226
|
|
|
362
|
|
|
202
|
|
Total
|
|
$
|
558
|
|
$
|
310
|
|
$
|
796
|
|
$
|
455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Pending Sale
|
|
$
|
1,436
|
|
$
|
317
|
|
$
|
1,015
|
|
$
|
550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRSTENERGY
CORP.
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands, except per share amounts)
|
|||||||||||||
REVENUES:
|
|||||||||||||
Electric
utilities
|
$
|
2,935,547
|
$
|
2,526,971
|
$
|
7,573,858
|
$
|
6,874,574
|
|||||
Unregulated
businesses (Note 2)
|
651,240
|
858,497
|
1,703,281
|
2,485,959
|
|||||||||
Total
revenues
|
3,586,787
|
3,385,468
|
9,277,139
|
9,360,533
|
|||||||||
EXPENSES:
|
|||||||||||||
Fuel
and
purchased power (Note 2)
|
1,287,225
|
1,285,355
|
3,115,153
|
3,514,816
|
|||||||||
Other
operating expenses
|
992,436
|
868,440
|
2,758,378
|
2,500,182
|
|||||||||
Provision
for
depreciation
|
152,786
|
147,052
|
444,443
|
439,017
|
|||||||||
Amortization
of regulatory assets
|
364,337
|
324,300
|
981,750
|
905,488
|
|||||||||
Deferral
of
new regulatory assets
|
(123,827
|
)
|
(78,767
|
)
|
(303,496
|
)
|
(191,487
|
)
|
|||||
General
taxes
|
187,562
|
177,452
|
540,606
|
514,174
|
|||||||||
Total
expenses
|
2,860,519
|
2,723,832
|
7,536,834
|
7,682,190
|
|||||||||
INCOME
BEFORE INTEREST AND INCOME TAXES
|
726,268
|
661,636
|
1,740,305
|
1,678,343
|
|||||||||
NET
INTEREST CHARGES:
|
|||||||||||||
Interest
expense
|
162,104
|
152,348
|
488,462
|
504,396
|
|||||||||
Capitalized
interest
|
(7,005
|
)
|
(6,536
|
)
|
(11,957
|
)
|
(18,286
|
)
|
|||||
Subsidiaries’
preferred stock dividends
|
2,626
|
5,354
|
12,912
|
16,024
|
|||||||||
Net
interest
charges
|
157,725
|
151,166
|
489,417
|
502,134
|
|||||||||
INCOME
TAXES
|
236,711
|
214,345
|
599,261
|
505,875
|
|||||||||
INCOME
BEFORE DISCONTINUED OPERATIONS
|
331,832
|
296,125
|
651,627
|
670,334
|
|||||||||
Discontinued
operations (net of income taxes (benefit) of
|
|||||||||||||
$367,000
and
$1,625,000 in the three months ended
|
|||||||||||||
September
30,
and ($8,684,000) and $3,762,000 in the nine
|
|||||||||||||
months
ended
September 30, of 2005 and 2004, respectively)
|
|||||||||||||
(Note
6)
|
528
|
2,497
|
18,451
|
6,332
|
|||||||||
NET
INCOME
|
$
|
332,360
|
$
|
298,622
|
$
|
670,078
|
$
|
676,666
|
|||||
BASIC
EARNINGS PER SHARE OF COMMON STOCK:
|
|||||||||||||
Earnings
before discontinued operations
|
$
|
1.01
|
$
|
0.90
|
$
|
1.99
|
$
|
2.05
|
|||||
Discontinued
operations (Note 6)
|
-
|
0.01
|
0.05
|
0.02
|
|||||||||
Net
earnings
per basic share
|
$
|
1.01
|
$
|
0.91
|
$
|
2.04
|
$
|
2.07
|
|||||
WEIGHTED
AVERAGE NUMBER OF BASIC SHARES
|
|||||||||||||
OUTSTANDING
|
328,119
|
327,499
|
328,030
|
327,280
|
|||||||||
DILUTED
EARNINGS PER SHARE OF COMMON STOCK:
|
|||||||||||||
Earnings
before discontinued operations
|
$
|
1.01
|
$
|
0.90
|
$
|
1.98
|
$
|
2.04
|
|||||
Discontinued
operations (Note 6)
|
-
|
0.01
|
0.05
|
0.02
|
|||||||||
Net
earnings
per diluted share
|
$
|
1.01
|
$
|
0.91
|
$
|
2.03
|
$
|
2.06
|
|||||
WEIGHTED
AVERAGE NUMBER OF DILUTED SHARES
|
|||||||||||||
OUTSTANDING
|
330,193
|
329,099
|
329,926
|
328,850
|
|||||||||
DIVIDENDS
DECLARED PER SHARE OF COMMON STOCK
|
$
|
0.43
|
$
|
0.375
|
$
|
1.255
|
$
|
1.125
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate to FirstEnergy
Corp. are an integral part of these statements.
|
|||||||||||||
FIRSTENERGY
CORP.
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
NET
INCOME
|
$
|
332,360
|
$
|
298,622
|
$
|
670,078
|
$
|
676,666
|
|||||
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|||||||||||||
Unrealized
gain on derivative hedges
|
17,723
|
5,927
|
19,023
|
26,536
|
|||||||||
Unrealized
gain (loss) on available for sale securities
|
(13,093
|
)
|
8,715
|
(37,216
|
)
|
5,265
|
|||||||
Other
comprehensive income (loss)
|
4,630
|
14,642
|
(18,193
|
)
|
31,801
|
||||||||
Income
tax
expense (benefit) related to other
|
|||||||||||||
comprehensive
income
|
(1,797
|
)
|
2,498
|
(7,704
|
)
|
11,026
|
|||||||
Other
comprehensive income (loss), net of tax
|
6,427
|
12,144
|
(10,489
|
)
|
20,775
|
||||||||
COMPREHENSIVE
INCOME
|
$
|
338,787
|
$
|
310,766
|
$
|
659,589
|
$
|
697,441
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate to FirstEnergy
Corp. are an integral part of these
|
|||||||||||||
statements.
|
FIRSTENERGY
CORP.
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(Unaudited)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash
equivalents
|
$
|
139,812
|
$
|
52,941
|
|||
Receivables
-
|
|||||||
Customers
(less accumulated provisions of $37,429,000 and
|
|||||||
$34,476,000,
respectively, for uncollectible accounts)
|
1,336,969
|
979,242
|
|||||
Other
(less
accumulated provisions of $26,416,000 and
|
|||||||
$26,070,000,
respectively, for uncollectible accounts)
|
198,256
|
377,195
|
|||||
Materials
and
supplies, at average cost -
|
|||||||
Owned
|
378,937
|
363,547
|
|||||
Under
consignment
|
117,265
|
94,226
|
|||||
Prepayments
and other
|
235,496
|
145,196
|
|||||
2,406,735
|
2,012,347
|
||||||
PROPERTY,
PLANT AND EQUIPMENT:
|
|||||||
In
service
|
22,777,299
|
22,213,218
|
|||||
Less
-
Accumulated provision for depreciation
|
9,688,122
|
9,413,730
|
|||||
13,089,177
|
12,799,488
|
||||||
Construction
work in progress
|
684,042
|
678,868
|
|||||
13,773,219
|
13,478,356
|
||||||
INVESTMENTS:
|
|||||||
Nuclear
plant
decommissioning trusts
|
1,711,112
|
1,582,588
|
|||||
Investments
in
lease obligation bonds
|
905,504
|
951,352
|
|||||
Other
|
773,994
|
740,026
|
|||||
3,390,610
|
3,273,966
|
||||||
DEFERRED
CHARGES:
|
|||||||
Goodwill
|
6,024,376
|
6,050,277
|
|||||
Regulatory
assets
|
5,045,838
|
5,532,087
|
|||||
Other
|
733,164
|
720,911
|
|||||
11,803,378
|
12,303,275
|
||||||
$
|
31,373,942
|
$
|
31,067,944
|
||||
LIABILITIES
AND CAPITALIZATION
|
|||||||
CURRENT
LIABILITIES:
|
|||||||
Currently
payable long-term debt
|
$
|
983,412
|
$
|
940,944
|
|||
Short-term
borrowings
|
246,505
|
170,489
|
|||||
Accounts
payable
|
651,941
|
610,589
|
|||||
Accrued
taxes
|
852,477
|
657,219
|
|||||
Other
|
1,110,511
|
929,194
|
|||||
3,844,846
|
3,308,435
|
||||||
CAPITALIZATION:
|
|||||||
Common
stockholders’ equity -
|
|||||||
Common
stock,
$0.10 par value, authorized 375,000,000 shares -
|
|||||||
329,836,276
shares outstanding
|
32,984
|
32,984
|
|||||
Other
paid-in
capital
|
7,033,726
|
7,055,676
|
|||||
Accumulated
other comprehensive loss
|
(323,601
|
)
|
(313,112
|
)
|
|||
Retained
earnings
|
2,115,434
|
1,856,863
|
|||||
Unallocated
employee stock ownership plan common stock -
|
|||||||
1,642,223
and
2,032,800 shares, respectively
|
(30,584
|
)
|
(43,117
|
)
|
|||
Total
common stockholders' equity
|
8,827,959
|
8,589,294
|
|||||
Preferred
stock of consolidated subsidiaries
|
183,719
|
335,123
|
|||||
Long-term
debt
and other long-term obligations
|
9,418,734
|
10,013,349
|
|||||
18,430,412
|
18,937,766
|
||||||
NONCURRENT
LIABILITIES:
|
|||||||
Accumulated
deferred income taxes
|
2,345,281
|
2,324,097
|
|||||
Asset
retirement obligations
|
1,130,194
|
1,077,557
|
|||||
Power
purchase
contract loss liability
|
1,920,358
|
2,001,006
|
|||||
Retirement
benefits
|
1,343,461
|
1,238,973
|
|||||
Lease
market
valuation liability
|
872,650
|
936,200
|
|||||
Other
|
1,486,740
|
1,243,910
|
|||||
9,098,684
|
8,821,743
|
||||||
COMMITMENTS,
GUARANTEES AND CONTINGENCIES (Note 13)
|
|||||||
$
|
31,373,942
|
$
|
31,067,944
|
||||
The
preceding
Notes to Consolidated Financial Statements as they relate to FirstEnergy
Corp. are an integral part of these
|
|||||||
balance
sheets.
|
FIRSTENERGY
CORP.
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||
Net
income
|
$
|
332,360
|
$
|
298,622
|
$
|
670,078
|
$
|
676,666
|
|||||
Adjustments
to reconcile net income to net cash from
|
|||||||||||||
operating
activities -
|
|||||||||||||
Provision
for
depreciation
|
152,786
|
147,052
|
444,443
|
439,017
|
|||||||||
Amortization
of regulatory assets
|
364,337
|
324,300
|
981,750
|
905,488
|
|||||||||
Deferral
of
new regulatory assets
|
(123,827
|
)
|
(78,767
|
)
|
(303,496
|
)
|
(191,487
|
)
|
|||||
Nuclear
fuel
and lease amortization
|
25,785
|
26,776
|
63,363
|
71,782
|
|||||||||
Amortization
of electric service obligation
|
(8,630
|
)
|
(3,336
|
)
|
(24,135
|
)
|
(12,877
|
)
|
|||||
Deferred
purchased power and other costs
|
(39,215
|
)
|
(118,409
|
)
|
(231,438
|
)
|
(263,290
|
)
|
|||||
Deferred
income taxes and investment tax credits, net
|
(37,851
|
)
|
37,138
|
24,034
|
(56,995
|
)
|
|||||||
Deferred
rents and lease market valuation liability
|
29,834
|
28,402
|
(71,275
|
)
|
(52,182
|
)
|
|||||||
Accrued
retirement benefit obligations
|
56,116
|
42,397
|
104,488
|
106,897
|
|||||||||
Accrued
compensation, net
|
4,380
|
25,864
|
(32,895
|
)
|
48,186
|
||||||||
Commodity
derivative transactions, net
|
(55,101
|
)
|
17,336
|
(40,993
|
)
|
(37,443
|
)
|
||||||
Cash
collateral from suppliers
|
76,978
|
-
|
76,978
|
-
|
|||||||||
Income
from
discontinued operations (Note 6)
|
(528
|
)
|
(2,497
|
)
|
(18,451
|
)
|
(6,332
|
)
|
|||||
Pension
trust
contribution
|
-
|
(500,000
|
)
|
-
|
(500,000
|
)
|
|||||||
Decrease
(increase) in operating assets -
|
|||||||||||||
Receivables
|
(90,673
|
)
|
16,288
|
(225,982
|
)
|
187,730
|
|||||||
Materials
and
supplies
|
11,976
|
6,210
|
(39,876
|
)
|
7,173
|
||||||||
Prepayments
and other current assets
|
102,025
|
46,969
|
(57,192
|
)
|
(42,625
|
)
|
|||||||
Increase
(decrease) in operating liabilities -
|
|||||||||||||
Accounts
payable
|
(44,369
|
)
|
(37,049
|
)
|
59,662
|
(145,691
|
)
|
||||||
Accrued
taxes
|
167,851
|
152,009
|
207,006
|
296,668
|
|||||||||
Accrued
interest
|
95,721
|
82,221
|
91,934
|
75,158
|
|||||||||
Prepayment
for electric service - education programs
|
-
|
-
|
241,685
|
-
|
|||||||||
Other
|
(38,799
|
)
|
15,979
|
(7,416
|
)
|
32,370
|
|||||||
Net
cash
provided from operating activities
|
981,156
|
527,505
|
1,912,272
|
1,538,213
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||
New
Financing
-
|
|||||||||||||
Long-term
debt
|
88,950
|
86,754
|
334,300
|
961,474
|
|||||||||
Short-term
borrowings, net
|
-
|
228,072
|
77,295
|
-
|
|||||||||
Redemptions
and Repayments -
|
|||||||||||||
Preferred
stock
|
(30,000
|
)
|
(1,000
|
)
|
(169,650
|
)
|
(1,000
|
)
|
|||||
Long-term
debt
|
(162,939
|
)
|
(772,451
|
)
|
(851,687
|
)
|
(1,752,394
|
)
|
|||||
Short-term
borrowings, net
|
(308,319
|
)
|
-
|
-
|
(219,032
|
)
|
|||||||
Net
controlled disbursement activity
|
(27,118
|
)
|
(19,129
|
)
|
(27,594
|
)
|
(36,400
|
)
|
|||||
Common
stock
dividend payments
|
(141,023
|
)
|
(123,965
|
)
|
(411,507
|
)
|
(367,751
|
)
|
|||||
Net
cash used
for financing activities
|
(580,449
|
)
|
(601,719
|
)
|
(1,048,843
|
)
|
(1,415,103
|
)
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||
Property
additions
|
(294,443
|
)
|
(211,243
|
)
|
(756,118
|
)
|
(545,743
|
)
|
|||||
Proceeds
from
asset sales
|
-
|
1,662
|
61,207
|
213,109
|
|||||||||
Proceeds
from
certificates of deposit
|
-
|
277,763
|
-
|
277,763
|
|||||||||
Nonutility
generation trust contributions
|
-
|
-
|
-
|
(50,614
|
)
|
||||||||
Contributions
to nuclear decommissioning trusts
|
(25,370
|
)
|
(25,370
|
)
|
(76,112
|
)
|
(76,112
|
)
|
|||||
Cash
investments
|
(13,950
|
)
|
(7,316
|
)
|
21,171
|
19,640
|
|||||||
Other
|
23,120
|
7,072
|
(26,706
|
)
|
(7,236
|
)
|
|||||||
Net
cash
provided from (used for) investing activities
|
(310,643
|
)
|
42,568
|
(776,558
|
)
|
(169,193
|
)
|
||||||
Net
change in
cash and cash equivalents
|
90,064
|
(31,646
|
)
|
86,871
|
(46,083
|
)
|
|||||||
Cash
and cash
equivalents at beginning of period
|
49,748
|
99,538
|
52,941
|
113,975
|
|||||||||
Cash
and cash
equivalents at end of period
|
$
|
139,812
|
$
|
67,892
|
$
|
139,812
|
$
|
67,892
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate to FirstEnergy
Corp. are an integral part of these
|
|||||||||||||
statements.
|
|||||||||||||
Reconciliation
of non-GAAP to GAAP
|
|
2005
|
|
2004
|
|
||||||||
|
|
After-tax
|
|
Basic
|
|
After-tax
|
|
Basic
|
|
||||
|
|
Amount
|
|
Earnings
|
|
Amount
|
|
Earnings
|
|
||||
Three
Months Ended September 30,
|
|
(Millions)
|
|
Per
Share
|
|
(Millions)
|
|
Per
Share
|
|
||||
Earnings
Before Unusual Items (Non-GAAP)
|
|
$
|
342
|
|
$
|
1.04
|
|
$
|
319
|
|
$
|
0.97
|
|
Unusual
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-core
asset sales gains/losses, net
|
|
|
-
|
|
|
-
|
|
|
(16
|
)
|
|
(0.05
|
)
|
JCP&L
arbitration decision
|
|
|
(10
|
)
|
|
(0.03
|
)
|
|
-
|
|
|
-
|
|
Other
|
|
|
-
|
|
|
-
|
|
|
(4
|
)
|
|
(0.01
|
)
|
Net
Income
(GAAP)
|
|
$
|
332
|
|
$
|
1.01
|
|
$
|
299
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
Before Unusual Items (Non-GAAP)
|
|
$
|
730
|
|
$
|
2.22
|
|
$
|
753
|
|
$
|
2.30
|
|
Unusual
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-core
asset sales gains/losses, net
|
|
|
22
|
|
|
0.07
|
|
|
(23
|
)
|
|
(0.07
|
)
|
Davis-Besse
impacts
|
|
|
-
|
|
|
-
|
|
|
(38
|
)
|
|
(0.12
|
)
|
EPA
settlement
|
|
|
(14
|
)
|
|
(0.04
|
)
|
|
-
|
|
|
-
|
|
NRC
fine
|
|
|
(3
|
)
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
JCP&L
rate settlement
|
|
|
16
|
|
|
0.05
|
|
|
-
|
|
|
-
|
|
JCP&L
arbitration decision
|
|
|
(10
|
)
|
|
(0.03
|
)
|
|
-
|
|
|
-
|
|
Ohio
tax write-off
|
|
|
(71
|
)
|
|
(0.22
|
)
|
|
-
|
|
|
-
|
|
Class-action
lawsuit settlement
|
|
|
-
|
|
|
-
|
|
|
(11
|
)
|
|
(0.03
|
)
|
Other
|
|
|
-
|
|
|
-
|
|
|
(4
|
)
|
|
(0.01
|
)
|
Net
Income
(GAAP)
|
|
$
|
670
|
|
$
|
2.04
|
|
$
|
677
|
|
$
|
2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
·
|
Regulated
Services
transmits,
distributes and sells electricity through eight utility operating
companies that collectively comprise the nation’s fifth largest
investor-owned electric system, serving 4.5 million customers within
36,100 square miles of Ohio, Pennsylvania and New Jersey. This
business
segment primarily derives its revenue from the delivery of electricity,
including transition cost recovery.
|
·
|
Power
Supply Management Services
supplies the
electric power needs of end-use customers (principally in Ohio,
Pennsylvania and New Jersey) through retail and wholesale arrangements,
including sales to meet the PLR requirements of FirstEnergy’s Ohio
Companies and Penn. This business segment operates FirstEnergy's
generating facilities and purchases from the wholesale market to
meet its
sales obligations. Pursuant to an asset transfer on October 24,
2005,
it now owns as well as operates FirstEnergy's fossil and hydroelectric
generation facilities previously owned by the EUOC. It also purchases
the
entire output of the nuclear plants currently owned or leased by
the EUOC.
This business segment principally derives its revenues from electric
generation sales.
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||||||||||
|
|
|
|
September
30,
|
|
Increase
|
|
September
30,
|
|
Increase
|
|
||||||||||||
|
|
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
||||||||
|
|
|
|
(In
millions, except per share amounts)
|
|
||||||||||||||||||
Net
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
By
Business Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Regulated
Services
|
|
|
|
|
$
|
366
|
|
$
|
315
|
|
$
|
51
|
|
$
|
856
|
|
$
|
761
|
|
$
|
95
|
|
|
Power
supply
management services
|
|
|
|
|
|
10
|
|
|
44
|
|
|
(34
|
)
|
|
(15
|
)
|
|
79
|
|
|
(94
|
)
|
|
Other
and
reconciling adjustments*
|
|
|
|
|
|
(44
|
)
|
|
(60
|
)
|
|
16
|
|
|
(171
|
)
|
|
(163
|
)
|
|
(8
|
)
|
|
Total
|
|
|
|
|
$
|
332
|
|
$
|
299
|
|
$
|
33
|
|
$
|
670
|
|
$
|
677
|
|
$
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before
discontinued operations
|
|
|
|
|
$
|
1.01
|
|
$
|
0.90
|
|
$
|
0.11
|
$
|
1.99
|
|
$
|
2.05
|
|
$
|
(0.06
|
)
|
||
Discontinued
operations
|
|
|
|
|
--
|
|
0.01
|
|
(0.01
|
)
|
0.05
|
|
0.02
|
|
0.03
|
||||||||
Net
earnings
per basic share
|
|
|
|
|
$
|
1.01
|
|
$
|
0.91
|
|
$
|
0.10
|
|
$
|
2.04
|
|
$
|
2.07
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before
discontinued operations
|
|
|
|
|
$
|
1.01
|
|
$
|
0.90
|
|
$
|
0.11
|
|
$
|
1.98
|
|
$
|
2.04
|
|
$
|
(0.06
|
)
|
|
Discontinued
operations
|
|
|
|
|
--
|
|
0.01
|
|
(0.01
|
)
|
0.05
|
|
0.02
|
|
0.03
|
||||||||
Net
earnings
per diluted share
|
|
|
|
|
$
|
1.01
|
|
$
|
0.91
|
|
$
|
0.10
|
|
$
|
2.03
|
|
$
|
2.06
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Represents
other operating segments and reconciling items including interest
expense
on holding company debt and corporate support services revenues
and
expenses.
|
|
|
|
|
|
Power
|
|
|
|
|
|
||||
|
|
|
|
Supply
|
|
Other
and
|
|
|
|
||||
3rd
Quarter 2005
|
|
Regulated
|
|
Management
|
|
Reconciling
|
|
FirstEnergy
|
|
||||
Quarterly
Financial Results
|
|
Services
|
|
Services
|
|
Adjustments
|
|
Consolidated
|
|
||||
|
|
(In
millions)
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||
External
|
|
|
|
|
|
|
|
|
|
||||
Electric
|
|
$
|
1,432
|
|
$
|
1,684
|
|
$
|
--
|
|
$
|
3,116
|
|
Other
|
|
|
244
|
|
|
28
|
|
|
199
|
|
|
471
|
|
Internal
|
|
|
79
|
|
|
--
|
|
|
(79
|
)
|
|
--
|
|
Total
Revenues
|
|
|
1,755
|
|
|
1,712
|
|
|
120
|
|
|
3,587
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
and
purchased power
|
|
|
--
|
|
|
1,287
|
|
|
--
|
|
|
1,287
|
|
Other
operating
|
|
|
511
|
|
|
364
|
|
|
118
|
|
|
993
|
|
Provision
for
depreciation
|
|
|
137
|
|
|
9
|
|
|
7
|
|
|
153
|
|
Amortization
of regulatory assets
|
|
|
364
|
|
|
--
|
|
|
--
|
|
|
364
|
|
Deferral
of
new regulatory assets
|
|
|
(124
|
)
|
|
--
|
|
--
|
|
(124
|
)
|
||
General
taxes
|
|
|
159
|
|
|
24
|
|
|
5
|
|
|
188
|
|
Total
Expenses
|
|
|
1,047
|
|
|
1,684
|
|
|
130
|
|
|
2,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest
charges
|
|
|
88
|
|
|
11
|
|
|
59
|
|
|
158
|
|
Income
taxes
|
|
|
254
|
|
|
7
|
|
|
(24
|
)
|
|
237
|
|
Income
before
discontinued operations
|
|
|
366
|
|
|
10
|
|
|
(45
|
)
|
|
331
|
|
Discontinued
operations
|
|
|
--
|
|
|
--
|
|
|
1
|
|
|
1
|
|
Net
Income
(Loss)
|
|
$
|
366
|
|
$
|
10
|
|
$
|
(44
|
)
|
$
|
332
|
|
|
|
|
|
Power
|
|
|
|
|
|
||||
|
|
|
|
Supply
|
|
Other
and
|
|
|
|
||||
3rd
Quarter 2004
|
|
Regulated
|
|
Management
|
|
Reconciling
|
|
FirstEnergy
|
|
||||
Quarterly
Financial Results
|
|
Services
|
|
Services
|
|
Adjustments
|
|
Consolidated
|
|
||||
|
|
(In
millions)
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||
External
|
|
|
|
|
|
|
|
|
|
||||
Electric
|
|
$
|
1,309
|
|
$
|
1,721
|
|
$
|
--
|
|
$
|
3,030
|
|
Other
|
|
|
172
|
|
|
35
|
|
|
148
|
|
|
355
|
|
Internal
|
|
|
80
|
|
|
--
|
|
|
(80
|
)
|
|
--
|
|
Total
Revenues
|
|
|
1,561
|
|
|
1,756
|
|
|
68
|
|
|
3,385
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
and
purchased power
|
|
|
--
|
|
|
1,285
|
|
|
--
|
|
|
1,285
|
|
Other
operating
|
|
|
414
|
|
|
356
|
|
|
99
|
|
|
869
|
|
Provision
for
depreciation
|
|
|
129
|
|
|
9
|
|
|
9
|
|
|
147
|
|
Amortization
of regulatory assets
|
|
|
324
|
|
|
--
|
|
|
--
|
|
|
324
|
|
Deferral
of
new regulatory assets
|
|
|
(79
|
)
|
|
--
|
|
--
|
|
(79
|
)
|
||
General
taxes
|
|
|
150
|
|
|
23
|
|
|
5
|
|
|
178
|
|
Total
Expenses
|
|
|
938
|
|
|
1,673
|
|
|
113
|
|
|
2,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest
charges
|
|
|
82
|
|
|
9
|
|
|
60
|
|
|
151
|
|
Income
taxes
|
|
|
226
|
|
|
30
|
|
|
(42
|
)
|
|
214
|
|
Income
before
discontinued operations
|
|
|
315
|
|
|
44
|
|
|
(63
|
)
|
|
296
|
|
Discontinued
operations
|
|
|
--
|
|
|
--
|
|
|
3
|
|
|
3
|
|
Net
Income
(Loss)
|
|
$
|
315
|
|
$
|
44
|
|
$
|
(60
|
)
|
$
|
299
|
|
Change
Between
|
|
Power
|
|
||||||||||
3rd
Quarter 2005 and 2004
|
|
|
Supply
|
|
Other
and
|
|
|
||||||
Quarterly
Financial Results
|
|
Regulated
|
|
Management
|
|
Reconciling
|
|
FirstEnergy
|
|
||||
Increase
(Decrease)
|
|
Services
|
|
Services
|
|
Adjustments(1)
|
|
Consolidated
|
|
||||
|
|
(In
millions)
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||
External
|
|
|
|
|
|
|
|
|
|
||||
Electric
|
|
$
|
123
|
|
$
|
(37
|
)
|
$
|
--
|
|
$
|
86
|
|
Other
|
|
|
72
|
|
|
(7
|
)
|
|
51
|
|
|
116
|
|
Internal
|
|
|
(1
|
)
|
|
--
|
|
|
1
|
|
|
--
|
|
Total
Revenues
|
|
|
194
|
|
|
(44
|
)
|
|
52
|
|
|
202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
and
purchased power
|
|
|
--
|
|
|
2
|
|
|
--
|
|
|
2
|
|
Other
operating
|
|
|
97
|
|
|
8
|
|
|
19
|
|
|
124
|
|
Provision
for
depreciation
|
|
|
8
|
|
|
--
|
|
|
(2
|
)
|
|
6
|
|
Amortization
of regulatory assets
|
|
|
40
|
|
|
--
|
|
|
--
|
|
|
40
|
|
Deferral
of
new regulatory assets
|
|
|
(45
|
)
|
|
--
|
|
--
|
|
(45
|
)
|
||
General
taxes
|
|
|
9
|
|
|
1
|
|
|
--
|
|
|
10
|
|
Total
Expenses
|
|
|
109
|
|
|
11
|
|
|
17
|
|
|
137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest
charges
|
|
|
6
|
|
|
2
|
|
|
(1
|
)
|
|
7
|
|
Income
taxes
|
|
|
28
|
|
|
(23
|
)
|
|
18
|
|
|
23
|
|
Income
before
discontinued operations
|
|
|
51
|
|
|
(34
|
)
|
|
18
|
|
|
35
|
|
Discontinued
operations
|
|
|
--
|
|
|
--
|
|
|
(2
|
)
|
|
(2
|
)
|
Net
Income
(Loss)
|
|
$
|
51
|
|
$
|
(34
|
)
|
$
|
16
|
|
$
|
33
|
|
(1)
The
impact of
the new Ohio tax legislation is included with FirstEnergy’s other
operating segments and reconciling adjustments.
|
|
Three
Months Ended
|
|
||||||||
|
September
30,
|
|
|
|||||||
Revenues
by Type of Service
|
|
2005
|
|
2004
|
|
Increase
|
|
|||
|
|
(In
millions)
|
||||||||
|
|
|
|
|
|
|
|
|||
Distribution
services
|
|
$
|
1,432
|
|
$
|
1,309
|
|
$
|
123
|
|
Transmission
services
|
|
|
117
|
|
|
81
|
|
|
36
|
|
Lease
revenue
from affiliates
|
|
|
79
|
|
|
79
|
|
|
--
|
|
Other
|
|
|
127
|
|
|
92
|
|
|
35
|
|
Total
Revenues
|
|
$
|
1,755
|
|
$
|
1,561
|
|
$
|
194
|
|
|
|
|
|||||
Electric
Distribution Deliveries
|
|
|
Increase
|
|
|||
Residential
|
|
|
|
15.4
|
%
|
||
Commercial
|
|
|
|
7.8
|
%
|
||
Industrial
|
|
|
|
5.2
|
%
|
||
Total
Distribution Deliveries
|
|
|
|
9.6
|
%
|
||
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
Sources
of Change in Distribution Revenues
|
|
(Decrease)
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
||
Changes
in
customer usage
|
|
$
|
135
|
|
Changes
in
prices:
|
|
|
|
|
Rate
changes
--
|
|
|
|
|
Ohio
shopping
credits
|
|
|
(11
|
)
|
JCP&L
rate settlements
|
|
|
21
|
|
Billing
component reallocations
|
(22
|
)
|
||
Net
Increase
in Distribution Revenues
|
|
$
|
123
|
|
·
|
Higher general taxes of $9 million resulting from increased EUOC
sales
which increased the Ohio KWH
tax and the Pennsylvania gross receipts
tax;
|
|
|
Three
Months Ended
|
|
|
|
|||||
|
September
30,
|
|
Increase
|
|
||||||
Revenues
by Type of Service
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
|||
(In
millions)
|
||||||||||
Electric
generation sales:
|
|
|
|
|
|
|
|
|||
Retail
|
|
$
|
1,254
|
|
$
|
1,069
|
|
$
|
185
|
|
Wholesale
|
|
|
430
|
|
|
388
|
|
|
42
|
|
Total
electric generation sales
|
|
|
1,684
|
|
|
1,457
|
|
|
227
|
|
Transmission
|
|
|
16
|
|
|
20
|
|
|
(4
|
)
|
Other
|
|
|
12
|
|
|
15
|
|
(3
|
)
|
|
Total
|
|
|
1,712
|
|
|
1,492
|
|
|
220
|
|
PJM
gross
transactions
|
|
|
--
|
|
|
264
|
|
|
(264
|
)
|
Total
Revenues
|
|
$
|
1,712
|
|
$
|
1,756
|
|
$
|
(44
|
)
|
Increase
|
||||
Source
of Change in Electric Generation Sales
|
|
(Decrease)
|
|
|
(In
millions)
|
||||
Retail:
|
|
|
|
|
Effect
of
9.9% increase in customer usage
|
|
$
|
113
|
|
Change
in
prices
|
|
|
72
|
|
|
|
|
185
|
|
Wholesale:
|
|
|
|
|
Effect
of
8.7% reduction in customer usage(1)
|
|
|
(41
|
)
|
Change
in
prices
|
|
|
83
|
|
|
|
|
42
|
|
Net
Increase
in Electric Generation Sales
|
|
$
|
227
|
|
(1)
Decrease of
46.4% including the effect of the PJM revision.
|
|
|
Increase
|
|
|
Source
of Change in Fuel and Purchased Power
|
|
(Decrease)
|
|
|
|
|
(In
millions)
|
|
|
Fuel:
|
|
|
|
|
Change
due to
increased unit costs
|
|
$
|
92
|
|
Change
due to
volume consumed
|
|
|
29
|
|
|
|
|
121
|
|
Purchased
Power:
|
|
|
|
|
Change
due to
increased unit costs
|
|
130
|
|
|
Change
due to
volume purchased
|
|
|
(16
|
)
|
Reduction
in
costs deferred
|
|
|
31
|
|
|
|
|
145
|
|
PJM
gross
transactions
|
|
|
(264
|
)
|
Net
Increase
in Fuel and Purchased Power Costs
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Power
|
|
|
|
|
|
|||||
|
|
|
|
|
Supply
|
|
Other
and
|
|
|
|
|||||
Nine
Months ended September 30, 2005
|
|
|
Regulated
|
|
Management
|
|
Reconciling
|
|
FirstEnergy
|
|
|||||
Financial
Results
|
|
|
Services
|
|
Services
|
|
Adjustments
|
|
Consolidated
|
|
|||||
|
|
|
(In
millions)
|
|
|||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|||||
External
|
|
|
|
|
|
|
|
|
|
|
|||||
Electric
|
|
|
|
$
|
3,759
|
|
$
|
4,273
|
|
$
|
-
|
|
$
|
8,032
|
|
Other
|
|
|
|
|
607
|
|
|
73
|
|
|
565
|
|
|
1,245
|
|
Internal
|
|
|
|
|
237
|
|
|
-
|
|
|
(237
|
)
|
|
-
|
|
Total
Revenues
|
|
|
|
|
4,603
|
|
|
4,346
|
|
|
328
|
|
|
9,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
and
purchased power
|
|
|
|
|
-
|
|
|
3,115
|
|
|
-
|
|
|
3,115
|
|
Other
operating
|
|
|
|
|
1,336
|
|
|
1,132
|
|
|
290
|
|
|
2,758
|
|
Provision
for
depreciation
|
|
|
|
|
397
|
|
|
26
|
|
|
21
|
|
|
444
|
|
Amortization
of regulatory assets
|
|
|
|
|
982
|
|
|
-
|
|
|
-
|
|
|
982
|
|
Deferral
of
new regulatory assets
|
|
|
|
|
(303
|
)
|
|
-
|
|
-
|
|
(303
|
)
|
||
General
taxes
|
|
|
|
|
455
|
|
|
69
|
|
|
17
|
|
|
541
|
|
Total
Expenses
|
|
|
|
|
2,867
|
|
|
4,342
|
|
|
328
|
|
|
7,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest
charges
|
|
|
|
|
285
|
|
|
29
|
|
|
175
|
|
|
489
|
|
Income
taxes
|
|
|
|
|
595
|
|
|
(10
|
)
|
|
14
|
|
|
599
|
|
Income
before
discontinued operations
|
|
|
|
|
856
|
|
|
(15
|
)
|
|
(189
|
)
|
|
652
|
|
Discontinued
operations
|
|
|
|
|
-
|
|
|
-
|
|
|
18
|
|
|
18
|
|
Net
Income
(Loss)
|
|
|
|
$
|
856
|
|
$
|
(15
|
)
|
$
|
(171
|
)
|
$
|
670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power
|
|
|
|
|
|
|||||
|
|
|
|
|
Supply
|
|
Other
and
|
|
|
|
|||||
Nine
Months ended September 30, 2004
|
|
|
Regulated
|
|
Management
|
|
Reconciling
|
|
FirstEnergy
|
|
|||||
Financial
Results
|
|
|
Services
|
|
Services
|
|
Adjustments
|
|
Consolidated
|
|
|||||
|
|
(In
millions)
|
|
||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|||||
External
|
|
|
|
|
|
|
|
|
|
||||||
Electric
|
|
|
|
$
|
3,588
|
|
$
|
4,742
|
|
$
|
--
|
|
$
|
8,330
|
|
Other
|
|
|
|
|
461
|
|
|
86
|
|
|
484
|
|
|
1,031
|
|
Internal
|
|
|
|
|
239
|
|
|
--
|
|
|
(239
|
)
|
|
--
|
|
Total
Revenues
|
|
|
|
|
4,288
|
|
|
4,828
|
|
|
245
|
|
|
9,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
and
purchased power
|
|
|
|
|
--
|
|
|
3,515
|
|
|
--
|
|
|
3,515
|
|
Other
operating
|
|
|
|
|
1,155
|
|
|
1,058
|
|
|
288
|
|
|
2,501
|
|
Provision
for
depreciation
|
|
|
|
|
384
|
|
|
26
|
|
|
29
|
|
|
439
|
|
Amortization
of regulatory assets
|
|
|
|
|
905
|
|
|
--
|
|
|
--
|
|
|
905
|
|
Deferral
of
new regulatory assets
|
|
|
|
|
(192
|
)
|
|
--
|
|
--
|
|
(192
|
)
|
||
General
taxes
|
|
|
|
|
433
|
|
|
65
|
|
|
16
|
|
|
514
|
|
Total
Expenses
|
|
|
|
|
2,685
|
|
|
4,664
|
|
|
333
|
|
|
7,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest
charges
|
|
|
|
|
301
|
|
|
30
|
|
|
171
|
|
|
502
|
|
Income
taxes
|
|
|
|
|
541
|
|
|
55
|
|
|
(90
|
)
|
|
506
|
|
Income
before
discontinued operations
|
|
|
|
|
761
|
|
|
79
|
|
|
(169
|
)
|
|
671
|
|
Discontinued
operations
|
|
|
|
|
--
|
|
|
--
|
|
|
6
|
|
|
6
|
|
Net
Income
(Loss)
|
|
|
|
$
|
761
|
|
$
|
79
|
|
$
|
(163
|
)
|
$
|
677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power
|
|
|
|
|
|
|||||||
Change
Between Nine Months ended
|
|
|
|
|
Supply
|
|
Other
and
|
|
|
|
||||||
September
30, 2005 vs. 2004
|
|
|
Regulated
|
|
Management
|
|
Reconciling
|
|
FirstEnergy
|
|
||||||
Financial
Results
|
|
|
Services
|
|
Services
|
|
Adjustments(1)
|
|
Consolidated
|
|
||||||
Increase
(Decrease)
|
|
|
(In
millions)
|
|
||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
||||||
External
|
|
|
|
|
|
|
|
|
|
|||||||
Electric
|
|
|
|
$
|
171
|
|
$
|
(469
|
)
|
$
|
-
|
|
$
|
(298
|
)
|
|
Other
|
|
|
|
|
146
|
|
|
(13
|
)
|
|
81
|
|
|
214
|
|
|
Internal
|
|
|
|
|
(2
|
)
|
|
-
|
|
|
2
|
|
|
-
|
|
|
Total
Revenues
|
|
|
|
|
315
|
|
|
(482
|
)
|
|
83
|
|
|
(84
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
and
purchased power
|
|
|
|
|
-
|
|
|
(400
|
)
|
|
-
|
|
|
(400
|
)
|
|
Other
operating
|
|
|
|
|
181
|
|
|
74
|
|
|
2
|
|
|
257
|
|
|
Provision
for
depreciation
|
|
|
|
|
13
|
|
|
-
|
|
|
(8
|
)
|
|
5
|
|
|
Amortization
of regulatory assets
|
|
|
|
|
77
|
|
|
-
|
|
|
-
|
|
|
77
|
|
|
Deferral
of
new regulatory assets
|
|
|
|
|
(111
|
)
|
|
-
|
|
-
|
|
(111
|
)
|
|||
General
taxes
|
|
|
|
|
22
|
|
|
4
|
|
|
1
|
|
|
27
|
|
|
Total
Expenses
|
|
|
|
|
182
|
|
|
(322
|
)
|
|
(5
|
)
|
|
(145
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest
charges
|
|
|
|
|
(16
|
)
|
|
(1
|
)
|
|
4
|
|
|
(13
|
)
|
|
Income
taxes
|
|
|
|
|
54
|
|
|
(65
|
)
|
|
104
|
|
|
93
|
|
|
Income
before
discontinued operations
|
|
|
|
|
95
|
|
|
(94
|
)
|
|
(20
|
)
|
|
(19
|
)
|
|
Discontinued
operations
|
|
|
|
|
-
|
|
|
-
|
|
|
12
|
|
|
12
|
|
|
Net
Income
(Loss)
|
|
|
|
$
|
95
|
|
$
|
(94
|
)
|
$
|
(8
|
)
|
$
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(1)
The impact
of the new Ohio tax legislation is included with FirstEnergy's other
operating segments and reconciling
adjustments.
|
|
Nine
Months Ended
|
|
|
|
||||||
|
September
30,
|
|
Increase
|
|
||||||
Revenues
by Type of Service
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
|||
|
|
(In
millions)
|
|
|||||||
|
|
|
|
|
|
|
|
|||
Distribution
services
|
|
$
|
3,759
|
|
$
|
3,588
|
|
$
|
171
|
|
Transmission
services
|
|
|
314
|
|
|
210
|
|
|
104
|
|
Lease
revenue
from affiliates
|
|
|
237
|
|
|
239
|
|
|
(2
|
)
|
Other
|
|
|
293
|
|
|
251
|
|
|
42
|
|
Total
Revenues
|
|
$
|
4,603
|
|
$
|
4,288
|
|
$
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric
Distribution Deliveries
|
|
Increase
|
|
|
|
|
|
|
|
Residential
|
|
|
7.9
|
%
|
Commercial
|
|
|
5.2
|
%
|
Industrial
|
|
|
1.8
|
%
|
Total
Distribution Deliveries
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
Increase
|
|
|
Sources
of Change in Distribution Revenues
|
|
(Decrease)
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
Changes
in
customer usage
|
|
$
|
210
|
|
Changes
in
prices:
|
|
|
|
|
Rate
changes
-
|
|
|
|
|
Ohio
shopping
credits
|
|
|
(33
|
)
|
JCP&L
rate settlements
|
|
|
28
|
|
Billing
component reallocation
|
(34
|
)
|
||
Net Increase in Distribution Revenues |
|
$
|
171
|
|
· |
Other
operating expenses increased $181 million principally due to
higher
transmission expenses resulting from an amended power supply
agreement
with FES, increased loads, and higher transmission system usage
charges;
|
· |
Provision
for
depreciation increased $13 million reflecting the effect of
property
additions, additional costs for decommissioning the Saxton
nuclear unit
and increased leasehold improvement amortization, reflecting
shorter lives
associated with capital additions for leased generating plants
of the Ohio
Companies to correspond to the remaining lease
terms;
|
· |
Additional
amortization of regulatory assets of $77 million, principally
Ohio
transition costs;
|
·
|
Higher general taxes of $22 million resulting from increased
EUOC sales
which increased the Ohio KWH
tax and the Pennsylvania gross receipts tax and the absence in
2005 of
Pennsylvania property tax
refunds
recognized in 2004; and
|
· |
Higher
income
taxes of $54 million due to increased taxable
income.
|
· |
Additional
deferrals of regulatory assets of $111 million, stemming from
the deferral
of PUCO-approved
MISO
administrative costs, JCP&L reliability improvements, shopping
incentive credits and relat
interest
on
those deferrals (see Note 14 - Regulatory Matters - Transmission,
New
Jersey); and
|
· |
Lower
interest charges of $16 million resulting from debt and preferred
stock
redemptions and refinancings.
|
Power
Supply Management Services - Nine Months ended September 30,
2005 compared
with the Nine Months ended September 30,
2004
|
|
|
Nine
Months Ended
|
|
|
|
|||||
|
September
30,
|
|
Increase
|
|
||||||
Revenues
by Type of Service
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
|||
|
|
(In
millions)
|
|
|||||||
|
|
|
|
|
|
|
|
|||
Electric
generation sales:
|
|
|
|
|
|
|
|
|||
Retail
|
|
$
|
3,223
|
|
$
|
2,933
|
|
$
|
290
|
|
Wholesale(1)
|
|
|
1,050
|
|
|
981
|
|
|
69
|
|
Total
Electric Generation Sales
|
|
|
4,273
|
|
|
3,914
|
|
|
359
|
|
Transmission
|
|
|
41
|
|
|
57
|
|
|
(16
|
)
|
Other
|
|
|
32
|
|
|
29
|
|
|
3
|
|
Total
|
|
|
4,346
|
|
|
4,000
|
|
|
346
|
|
PJM
gross
transactions
|
|
|
-
|
|
|
828
|
|
|
(828
|
)
|
Total
Revenues
|
|
$
|
4,346
|
|
$
|
4,828
|
|
$
|
(482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excluding
2004 PJM effect of gross transactions.
|
Source
of Change in Electric Generation Sales
|
|
|
|
|
|
|
(In
millions)
|
|
|
Retail:
|
|
|
|
|
Effect
of
4.5% increase in customer usage
|
|
$
|
140
|
|
Change
in
prices
|
|
|
150
|
|
|
|
|
290
|
|
Wholesale:
|
|
|
|
|
Effect
of
4.4% reduction in customer usage(1)
|
|
|
(48
|
)
|
Change
in
prices
|
|
|
117
|
|
|
|
|
69
|
|
Net
Increase
in Electric Generation Sales
|
|
$
|
359
|
|
(1)
Decrease of
47.3% including the effect of the PJM revision.
|
|
|
Increase
|
|
|
Source
of Change in Fuel and Purchased Power
|
|
(Decrease)
|
|
|
|
|
(In
millions)
|
|
|
Fuel:
|
|
|
|
|
Change
due to
unit costs
|
|
$
|
212
|
|
Change
due to
volume consumed
|
|
|
33
|
|
|
|
|
245
|
|
|
|
|
|
|
Purchased
Power:
|
|
|
|
|
Change
due to
unit costs
|
|
255
|
|
|
Change
due to
volume purchased
|
|
|
(53
|
)
|
Increase in
deferred costs
|
|
|
(19
|
)
|
|
|
|
183
|
|
PJM
Gross
Transactions
|
|
|
(828
|
)
|
Net
Decrease
in Fuel and Purchased Power Costs
|
|
$
|
(400
|
)
|
|
|
Nine
Months Ended
|
|
|
|
|||||
|
|
September
30,
|
|
Increase
|
|
|||||
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
|||
|
|
(In
millions)
|
|
|||||||
Discontinued
operations (net of tax)
|
|
|
|
|
|
|
|
|||
Gain
on
sale:
|
|
|
|
|
|
|
|
|
|
|
Retail
gas
business
|
|
$
|
5
|
|
$
|
-
|
|
$
|
5
|
|
FSG
and MYR
Subsidiaries
|
|
|
12
|
|
|
-
|
|
|
12
|
|
Reclassification
of operating income
|
|
|
2
|
|
|
6
|
|
|
(4
|
)
|
Total
|
|
$
|
19
|
|
$
|
6
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||||||
Postretirement
|
|
September
30,
|
Increase
|
|
September
30,
|
Increase
|
|
||||||||||||
Benefits
Expense *
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
||||||
|
|
(In
millions)
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pension
|
|
$
|
8
|
|
$
|
21
|
|
$
|
(13
|
)
|
$
|
24
|
|
$
|
64
|
|
$
|
(40
|
)
|
OPEB
|
|
|
18
|
|
|
22
|
|
|
(4
|
)
|
|
54
|
|
|
68
|
|
|
(14
|
)
|
Total
|
|
$
|
26
|
|
$
|
43
|
|
$
|
(17
|
)
|
$
|
78
|
|
$
|
132
|
|
$
|
(54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Excludes
the capitalized portion of postretirement benefits costs (see Note
10 for
total costs).
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Operating
Cash Flows
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Cash
earnings
(1)
|
|
$
|
777
|
|
$
|
545
|
|
$
|
1,642
|
|
$
|
1,427
|
|
Pension
trust
contribution(2)
|
-
|
(300
|
)
|
-
|
(300
|
) | |||||||
Working
capital and other
|
|
|
204
|
|
|
283
|
|
270
|
|
|
411
|
|
|
Total
cash
flows from operating activities
|
|
$
|
981
|
|
$
|
528
|
|
$
|
1,912
|
|
$
|
1,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Cash
earnings are a non-GAAP measure (see reconciliation
below).
|
|
||||||||||||
(2)
Pension
trust contribution net of $200 million of income tax
benefits.
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Reconciliation
of Cash Earnings
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net
income
(GAAP)
|
|
$
|
332
|
|
$
|
299
|
|
$
|
670
|
|
$
|
677
|
|
Non-cash
charges (credits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for
depreciation
|
|
|
153
|
|
|
147
|
|
|
444
|
|
|
439
|
|
Amortization
of regulatory assets
|
|
|
364
|
|
|
324
|
|
|
982
|
|
|
905
|
|
Deferral
of
new regulatory assets
|
|
|
(124
|
)
|
|
(79
|
)
|
|
(303
|
)
|
|
(191
|
)
|
Nuclear
fuel
and lease amortization
|
|
|
26
|
|
|
27
|
|
|
63
|
|
|
72
|
|
Deferred
purchased power and other costs
|
|
|
(39
|
)
|
|
(118
|
)
|
|
(231
|
)
|
|
(263
|
)
|
Deferred
income taxes and investment tax credits(1)
|
|
|
(38
|
)
|
|
(163
|
)
|
|
24
|
|
|
(257
|
)
|
Deferred
rents and lease market valuation liability
|
|
|
30
|
|
28
|
|
(71
|
)
|
|
(52
|
)
|
||
Accrued
retirement benefit obligations
|
56
|
42
|
104
|
107
|
|||||||||
Income
from
discontinued operations
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(18
|
)
|
|
(6
|
)
|
Other
non-cash expenses
|
|
|
18
|
|
|
40
|
|
|
(22
|
)
|
|
(4
|
)
|
Cash
earnings
(non-GAAP)
|
|
$
|
777
|
|
$
|
545
|
|
$
|
1,642
|
|
$
|
1,427
|
|
(1)
Excludes
$200 million of deferred tax benefits from pension contribution
in
2004.
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Securities
Issued or Redeemed
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
New
issues
|
|
|
|
|
|
|
|
|
|
||||
Pollution
control notes
|
|
$
|
89
|
|
$
|
77
|
|
$
|
334
|
|
$
|
261
|
|
Secured
notes
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
550
|
|
Long-term
revolving credit
|
-
|
10
|
-
|
-
|
|||||||||
Unsecured
notes
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
150
|
|
|
|
$
|
89
|
|
$
|
87
|
|
$
|
334
|
|
$
|
961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
mortgage bonds
|
|
$
|
-
|
|
$
|
206
|
|
$
|
178
|
|
$
|
588
|
|
Pollution
control notes
|
|
|
130
|
|
|
80
|
|
|
377
|
|
|
80
|
|
Secured
notes
|
|
|
25
|
|
|
374
|
|
|
74
|
|
|
447
|
|
Long-term
revolving credit
|
|
|
-
|
|
|
-
|
|
|
215
|
|
|
300
|
|
Unsecured
notes
|
|
|
8
|
|
|
112
|
|
|
8
|
|
|
337
|
|
Preferred
stock
|
|
|
30
|
|
|
1
|
|
|
170
|
|
|
1
|
|
|
|
$
|
193
|
|
$
|
773
|
|
$
|
1,022
|
|
$
|
1,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings, net increase (decrease)
|
|
$
|
(308
|
)
|
$
|
228
|
$
|
77
|
|
$
|
(219
|
)
|
Borrowing
Capability
|
|
FirstEnergy
|
|
|
Penelec
|
|
Total
|
|
||||
|
|
(In
millions)
|
|
|||||||||
|
|
|
|
|
|
|
|
|
||||
Short-term
credit(1)
|
|
$
|
2,020
|
|
|
$
|
-
|
|
$
|
2,020
|
|
|
Utilized
|
|
|
-
|
|
|
-
|
|
|
-
|
|||
Letters
of
credit
|
|
|
(137
|
)
|
|
|
-
|
|
|
(137
|
)
|
|
Net
|
|
|
1,883
|
|
|
|
-
|
|
|
1,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
bank facilities(2)
|
|
|
-
|
|
|
|
75
|
|
|
75
|
|
|
Utilized
|
|
|
-
|
|
|
|
(75
|
)
|
|
(75
|
)
|
|
Net
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
Total
unused
borrowing capability
|
|
$
|
1,883
|
|
|
$
|
-
|
|
$
|
1,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
A $2 billion
revolving credit facility is available in various amounts to
FirstEnergy
and certain
of
its
subsidiaries, including Penelec. A $20 million uncommitted
line of
credit facility added
in
September
2005 is available to FirstEnergy only.
|
||||||||||||
(2)
Penelec bank
facility terminated on October 7,
2005.
|
|
|
Revolving
|
Regulatory
and
|
|
|||
|
|
Credit
Facility
|
Other
Short-Term
|
|
|||
Borrower
|
|
Sub-Limit
|
Debt
Limitations1
|
|
|||
|
|
(In
millions)
|
|
||||
|
|
|
|
|
|
||
FirstEnergy
|
|
$
|
2,000
|
|
$
|
1,500
|
|
OE
|
|
|
500
|
|
|
500
|
|
Penn
|
|
|
50
|
|
|
51
|
|
CEI
|
|
|
250
|
|
|
500
|
|
TE
|
|
|
250
|
|
|
500
|
|
JCP&L
|
|
|
425
|
|
|
416
|
|
Met-Ed
|
|
|
250
|
|
|
300
|
|
Penelec
|
|
|
250
|
|
|
300
|
|
FES
|
|
|
-2
|
|
|
n/a
|
|
ATSI
|
|
|
-2
|
|
|
26
|
|
(2)
|
Borrowing
sublimits for FES and ATSI may be increased to up to $250 million
and $100
million, respectively, by delivering notice to the administrative
agent
that either (i) such borrower has senior unsecured debt ratings
of at
least BBB- by S&P and Baa3 by Moody’s or (ii) FirstEnergy has
guaranteed the obligations of such borrower under the
facility.
|
|
|
Debt
|
|
|
|
|
To
Total
|
|
|
Borrower
|
|
Capitalization
|
|
|
FirstEnergy
|
|
|
0.54
to
1.00
|
|
OE
|
|
|
0.39
to
1.00
|
|
Penn
|
|
|
0.32
to
1.00
|
|
CEI
|
|
|
0.57
to
1.00
|
|
TE
|
|
|
0.43
to
1.00
|
|
JCP&L
|
|
|
0.29
to
1.00
|
|
Met-Ed
|
|
|
0.38
to
1.00
|
|
Penelec
|
|
|
0.34
to
1.00
|
|
Ratings
of Securities
|
Securities
|
S&P
|
Moody’s
|
Fitch
|
||||
FirstEnergy
|
Senior
unsecured
|
BBB-
|
Baa3
|
BBB-
|
||||
OE
|
Senior
unsecured
|
BBB-
|
Baa2
|
BBB
|
||||
Preferred
stock
|
BB+
|
Ba1
|
BBB-
|
|||||
CEI
|
Senior
secured
|
BBB
|
Baa2
|
BBB-
|
||||
Senior
unsecured
|
BBB-
|
Baa3
|
BB
|
|||||
TE
|
Senior
secured
|
BBB
|
Baa2
|
BBB-
|
||||
Preferred
stock
|
BB+
|
Ba2
|
BB-
|
|||||
Penn
|
Senior
secured
|
BBB+
|
Baa1
|
BBB+
|
||||
Senior
unsecured (1)
|
BBB-
|
Baa2
|
BBB
|
|||||
Preferred
stock
|
BB+
|
Ba1
|
BBB-
|
|||||
JCP&L
|
Senior
secured
|
BBB+
|
Baa1
|
BBB+
|
||||
Preferred
stock
|
BB+
|
Ba1
|
BBB
|
|||||
Met-Ed
|
Senior
secured
|
BBB+
|
Baa1
|
BBB+
|
||||
Senior
unsecured
|
BBB
|
Baa2
|
BBB
|
|||||
Penelec
|
Senior
unsecured
|
BBB
|
Baa2
|
BBB
|
||||
Summary
of Cash Flows
|
|
Property
|
|
|
|
|
|
|
|
||||
Used
for Investing Activities
|
|
Additions
|
|
Investments
|
|
Other
|
|
Total
|
|
||||
Sources
(Uses)
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Three
Months Ended September 30, 2005
|
|
|
|
|
|
|
|
|
|
||||
Regulated
services
|
|
$
|
(207
|
)
|
$
|
(17
|
)
|
$
|
2
|
|
$
|
(222
|
)
|
Power
supply
management services
|
|
|
(79
|
)
|
|
1
|
|
|
-
|
|
|
(78
|
)
|
Other
|
|
|
(1
|
)
|
|
-
|
|
|
1
|
|
|
-
|
|
Reconciling
items
|
(7
|
)
|
(9
|
)
|
5
|
(11
|
)
|
||||||
Total
|
|
$
|
(294
|
)
|
$
|
(25
|
)
|
$
|
8
|
|
$
|
(311
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September 30, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulated
services
|
|
$
|
(157
|
)
|
$
|
242
|
|
$
|
(69
|
)
|
$
|
16
|
|
Power
supply
management services
|
|
|
(46
|
)
|
|
(11
|
)
|
|
-
|
|
|
(57
|
)
|
Other
|
|
|
(1
|
)
|
|
-
|
|
|
(2
|
)
|
|
(3
|
)
|
Reconciling
items
|
(7
|
)
|
10
|
84
|
87
|
||||||||
Total
|
|
$
|
(211
|
)
|
$
|
241
|
|
$
|
13
|
|
$
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Cash Flows |
Property
|
||||||||||||
Used
for Investing Activities
|
Additions
|
Investments
|
Other
|
Total
|
|||||||||
Sources (Uses) |
(In
millions)
|
||||||||||||
Nine
Months Ended September 30, 2005
|
|
|
|
|
|
|
|
|
|
||||
Regulated
services
|
|
$
|
(506
|
)
|
$
|
(13
|
)
|
$
|
(5
|
)
|
$
|
(524
|
)
|
Power
supply
management services
|
|
|
(226
|
)
|
|
-
|
|
|
-
|
|
|
(226
|
)
|
Other
|
|
|
(6
|
)
|
|
19
|
|
|
(18
|
)
|
|
(5
|
)
|
Reconciling
items
|
(18
|
)
|
(9
|
)
|
5
|
(22
|
)
|
||||||
Total
|
|
$
|
(756
|
)
|
$
|
(3
|
)
|
$
|
(18
|
)
|
$
|
(777
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulated
services
|
|
$
|
(377
|
)
|
$
|
196
|
|
$
|
(76
|
)
|
$
|
(257
|
)
|
Power
supply
management services
|
|
|
(149
|
)
|
|
(14
|
)
|
|
-
|
|
|
(163
|
)
|
Other
|
|
|
(3
|
)
|
|
173
|
|
|
2
|
|
|
172
|
|
Reconciling
items
|
(17
|
)
|
31
|
65
|
79
|
||||||||
Total
|
|
$
|
(546
|
)
|
$
|
386
|
|
$
|
(9
|
)
|
$
|
(169
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum
|
||
Guarantees
and Other Assurances
|
|
Exposure
|
||
|
|
(In
millions)
|
||
FirstEnergy
guarantees of subsidiaries:
|
|
|
||
Energy
and
energy-related contracts (1)
|
|
$
|
785
|
|
Other
(2)
|
|
|
503
|
|
|
|
|
1,288
|
|
|
|
|
|
|
Surety
bonds
|
|
|
307
|
|
Letters
of
credit (3)(4)
|
|
|
1,055
|
|
|
|
|
|
|
Total
Guarantees and Other Assurances
|
|
$
|
2,650
|
|
|
|
|
|
|
(1)Issued
for a
one-year term, with a 10-day termination right by
FirstEnergy.
|
||||
(2)Issued
for
various terms.
|
|
|
|
|
(3)Includes
$137
million issued for various terms under LOC capacity available
|
||||
under
FirstEnergy's revolving credit agreement and $299 million outstanding
in
|
||||
support of pollution control revenue bonds issued with various
maturities.
|
||||
(4)Includes
approximately $194 million pledged in connection with the sale
and
|
||||
leaseback of Beaver Valley Unit 2 by CEI and TE, $291 million pledged
in
connection
|
||||
with
the sale and leaseback of Beaver Valley Unit 2 by OE and $134 million
pledged
|
||||
in
connection with the sale and leaseback of Perry Unit 1 by
OE.
|
|
|
|
Total
|
|
Collateral
Paid
|
|
Remaining
|
|
|||||||
Collateral
Provisions
|
|
|
Exposure
|
|
Cash
|
|
LOC
|
|
Exposure
|
|
|||||
|
|
|
(In
millions)
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit
rating
downgrade
|
|
|
|
$
|
445
|
|
$
|
213
|
|
$
|
18
|
|
$
|
214
|
|
Adverse
event
|
|
|
|
|
77
|
|
|
-
|
|
|
5
|
|
|
72
|
|
Total
|
|
|
|
$
|
522
|
|
$
|
213
|
|
$
|
23
|
|
$
|
286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
Nine
Months Ended
|
|
|||||||||||||||
Increase
(Decrease) in the Fair Value
|
|
September
30, 2005
|
September
30, 2005
|
|
|||||||||||||||
Of
Commodity Derivative Contracts
|
|
Non-Hedge
|
Hedge
|
Total
|
Non-Hedge
|
Hedge
|
Total
|
|
|||||||||||
|
|
(In
millions)
|
|
||||||||||||||||
Change
in the Fair Value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commodity
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Outstanding
net asset at beginning of period
|
|
$
|
55
|
|
$
|
(2
|
)
|
$
|
53
|
|
$
|
62
|
|
$
|
2
|
|
$
|
64
|
|
New
contract
when entered
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Additions/change
in value of existing contracts
|
|
|
(3
|
)
|
|
3
|
|
|
-
|
|
|
(4
|
)
|
|
5
|
|
|
1
|
|
Change
in
techniques/assumptions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Settled
contracts
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(7
|
)
|
|
-
|
|
|
(7
|
)
|
Sale
of
retail natural gas contracts
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
(6
|
)
|
|
(5
|
)
|
Outstanding
net asset at end of period (1)
|
|
$
|
52
|
|
$
|
1
|
|
$
|
53
|
|
$
|
52
|
|
$
|
1
|
|
$
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-commodity
Net Assets at End of Period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate
swaps (2)
|
|
|
-
|
|
|
(10
|
)
|
|
(10
|
)
|
|
-
|
|
|
(10
|
)
|
|
(10
|
)
|
Net
Assets - Derivative Contracts at End of Period
|
|
$
|
52
|
|
$
|
(9
|
)
|
$
|
43
|
|
$
|
52
|
|
$
|
(9
|
)
|
$
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact
of Changes in Commodity Derivative Contracts(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Statement effects (pre-tax)
|
|
$
|
(4
|
)
|
$
|
-
|
|
$
|
(4
|
)
|
$
|
(4
|
)
|
$
|
-
|
|
$
|
(4
|
)
|
Balance
Sheet
effects:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (pre-tax)
|
|
$
|
-
|
|
$
|
3
|
|
$
|
3
|
|
$
|
-
|
|
$
|
(1
|
)
|
$
|
(1
|
)
|
Regulatory
liability
|
|
$
|
1
|
|
$
|
-
|
|
$
|
1
|
|
$
|
(6
|
)
|
$
|
-
|
|
$
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
$55 million in non-hedge commodity derivative contracts which are
offset
by a regulatory liability.
|
|||||||||||||||||||
(2) Interest
rate
swaps are treated as cash flow or fair value hedges. (See Interest
Rate
Swap Agreements - Fair Value Hedges and Forward
|
|||||||||||||||||||
Starting
Swap Agreements - Cash Flow Hedges)
|
|||||||||||||||||||
(3) Represents
the change in value of existing contracts, settled contracts and
changes
in techniques/assumptions.
|
Balance
Sheet Classification
|
|
Non-Hedge
|
|
Hedge
|
|
Total
|
|
|||
|
|
(In
millions)
|
|
|||||||
Current
-
|
|
|
|
|
|
|
|
|||
Other
assets
|
|
$
|
-
|
|
$
|
39
|
|
$
|
39
|
|
Other
liabilities
|
|
|
(1
|
)
|
|
(39
|
)
|
|
(40
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current
-
|
|
|
|
|
|
|
|
|
|
|
Other
deferred charges
|
|
|
56
|
|
|
5
|
|
|
61
|
|
Other
noncurrent liabilities
|
|
|
(3
|
)
|
|
(14
|
)
|
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets
|
|
$
|
52
|
|
$
|
(9
|
)
|
$
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
Sources
of Information -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fair
Value by Contract Year
|
|
2005
(1)
|
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
Thereafter
|
|
Total
|
|
|||||||
|
|
(In
millions)
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Prices
actively quoted (2)
|
|
$
|
(3
|
)
|
$
|
(3
|
)
|
$
|
(2
|
)
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(8
|
)
|
Other
external sources (3)
|
|
|
19
|
|
|
7
|
|
|
10
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
36
|
|
Prices
based
on models
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9
|
|
|
8
|
|
|
8
|
|
|
25
|
|
Total
(4)
|
|
$
|
16
|
|
$
|
4
|
|
$
|
8
|
|
$
|
9
|
|
$
|
8
|
|
$
|
8
|
|
$
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For
the
last quarter of 2005.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Exchange
traded.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Broker
quote sheets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Includes
$55 million in non-hedge commodity derivative contracts which are
offset
by a regulatory liability.
|
|
|
|
|
|
September
30, 2005
|
|
December
31, 2004
|
|
||||||||||||||
|
|
Notional
|
|
Maturity
|
|
Fair
|
|
Notional
|
|
Maturity
|
|
Fair
|
|
||||||
Interest
Rate Swaps
|
|
Amount
|
|
Date
|
|
Value
|
|
Amount
|
|
Date
|
|
Value
|
|
||||||
|
|
(Dollars
in millions)
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed
to
Floating Rate
|
|
$
|
-
|
|
|
2006
|
|
$
|
-
|
$
|
200
|
|
|
2006
|
|
$
|
(1
|
)
|
|
(Fair
value
hedges)
|
|
|
100
|
|
|
2008
|
|
|
(3
|
)
|
|
100
|
|
|
2008
|
|
|
(1
|
)
|
|
|
|
50
|
|
|
2010
|
|
|
-
|
|
|
100
|
|
|
2010
|
|
|
1
|
|
|
|
|
50
|
|
|
2011
|
|
|
-
|
|
|
100
|
|
|
2011
|
|
|
2
|
|
|
|
|
450
|
|
|
2013
|
|
|
-
|
|
|
400
|
|
|
2013
|
|
|
4
|
|
|
|
|
-
|
|
|
2014
|
|
|
-
|
|
|
100
|
|
|
2014
|
|
|
2
|
|
|
|
|
150
|
|
|
2015
|
|
|
(7
|
)
|
|
150
|
|
|
2015
|
|
|
(7
|
)
|
|
|
|
150
|
|
|
2016
|
|
|
2
|
|
|
200
|
|
|
2016
|
|
|
1
|
|
|
|
-
|
|
|
2018
|
|
|
-
|
|
|
150
|
|
|
2018
|
|
|
5
|
|
|
|
|
-
|
|
|
2019
|
|
|
-
|
|
|
50
|
|
|
2019
|
|
|
2
|
|
|
|
|
|
100
|
|
|
2031
|
|
|
(4
|
)
|
|
100
|
|
|
2031
|
|
|
(4
|
)
|
|
|
$
|
1,050
|
|
|
|
|
$
|
(12
|
)
|
$
|
1,650
|
|
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
·
|
restructuring
the electric generation business and allowing the Companies'
customers to
select a
competitive
electric generation supplier other than the
Companies;
|
·
|
establishing
or defining the PLR obligations to customers in the Companies'
service
areas;
|
·
|
providing
the
Companies with the opportunity to recover potentially stranded
investment
(or transition costs)
not
otherwise
recoverable in a competitive generation
market;
|
·
|
itemizing
(unbundling) the price of electricity into its component elements
-
including generation,
transmission,
distribution and stranded costs recovery
charges;
|
·
|
continuing
regulation of the Companies' transmission and distribution systems;
and
|
·
|
requiring
corporate separation of regulated and unregulated business
activities.
|
|
|
September
30,
|
December
31,
|
Increase
|
||||||
Regulatory
Assets*
|
|
2005
|
2004
|
(Decrease)
|
||||||
|
|
(In
millions)
|
||||||||
|
|
|
|
|
|
|
||||
OE
|
|
$
|
845
|
|
$
|
1,116
|
|
$
|
(271
|
)
|
CEI
|
|
|
889
|
|
|
959
|
|
|
(70
|
)
|
TE
|
|
|
310
|
|
|
375
|
|
|
(65
|
)
|
JCP&L
|
|
|
2,311
|
|
|
2,176
|
|
|
135
|
|
Met-Ed
|
|
|
572
|
|
|
693
|
|
|
(121
|
)
|
Penelec
|
|
|
99
|
|
|
200
|
|
|
(101
|
)
|
ATSI
|
|
|
20
|
|
|
13
|
|
|
7
|
|
Total
|
|
$
|
5,046
|
|
$
|
5,532
|
|
$
|
(486
|
)
|
*Penn
had net
regulatory liabilities of approximately $48 million and $18 million
included
in Noncurrent Liabilities on the Consolidated Balance Sheets as
of
September
30, 2005 and December 31, 2004, respectively.
|
|
September
30,
|
|
December
31,
|
|
Increase
|
|
|||||
Regulatory
Assets by Source
|
|
2005
|
|
2004
|
|
(Decrease)
|
|
||||
|
|
(In
millions)
|
|||||||||
|
|
|
|
|
|
|
|
||||
Regulatory
transition costs
|
|
|
$
|
4,169
|
|
$
|
4,889
|
|
$
|
(720
|
)
|
Customer
shopping incentives
|
|
|
|
826
|
|
|
612
|
|
|
214
|
|
Customer
receivables for future income taxes
|
|
|
|
289
|
|
|
246
|
|
|
43
|
|
Societal
benefits charge
|
|
|
|
18
|
|
|
51
|
|
|
(33
|
)
|
Loss
on
reacquired debt
|
|
|
|
83
|
|
|
89
|
|
|
(6
|
)
|
Employee
postretirement benefit costs
|
|
|
|
57
|
|
|
65
|
|
|
(8
|
)
|
Nuclear
decommissioning, decontamination
|
|
|
|
|
|
|
|
|
|
|
|
and
spent
fuel disposal costs
|
|
|
|
(172
|
)
|
|
(169
|
)
|
|
(3
|
)
|
Asset
removal
costs
|
|
|
|
(366
|
)
|
|
(340
|
)
|
|
(26
|
)
|
Property
losses and unrecovered plant costs
|
|
|
|
34
|
|
|
50
|
|
|
(16
|
)
|
MISO
transmission costs
|
|
|
|
52
|
|
|
-
|
|
|
52
|
|
JCP&L
reliability costs
|
|
|
|
26
|
|
|
-
|
|
|
26
|
|
Other
|
|
|
|
30
|
|
|
39
|
|
|
(9
|
)
|
Total
|
|
|
$
|
5,046
|
|
$
|
5,532
|
|
$
|
(486
|
)
|
EITF
Issue No. 05-6, "Determining the Amortization Period for Leasehold
Improvements Purchased after Lease Inception or Acquired in a
Business
Combination"
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement of APB
Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion
No.
29”
|
OHIO
EDISON COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
STATEMENTS
OF INCOME
|
|||||||||||||
OPERATING
REVENUES
|
$
|
825,790
|
$
|
766,336
|
$
|
2,268,760
|
$
|
2,227,978
|
|||||
OPERATING
EXPENSES AND TAXES:
|
|||||||||||||
Fuel
|
15,158
|
15,244
|
39,080
|
44,158
|
|||||||||
Purchased
power
|
229,561
|
242,835
|
703,658
|
730,542
|
|||||||||
Nuclear
operating costs
|
76,254
|
81,244
|
264,514
|
235,277
|
|||||||||
Other
operating costs
|
114,762
|
99,132
|
293,530
|
276,289
|
|||||||||
Provision
for
depreciation
|
30,169
|
30,702
|
87,875
|
90,846
|
|||||||||
Amortization
of regulatory assets
|
126,439
|
103,211
|
347,880
|
317,030
|
|||||||||
Deferral
of
new regulatory assets
|
(43,929
|
)
|
(25,728
|
)
|
(107,750
|
)
|
(69,790
|
)
|
|||||
General
taxes
|
51,945
|
47,634
|
146,066
|
135,688
|
|||||||||
Income
taxes
|
99,778
|
76,502
|
245,942
|
203,863
|
|||||||||
Total
operating expenses and taxes
|
700,137
|
670,776
|
2,020,795
|
1,963,903
|
|||||||||
OPERATING
INCOME
|
125,653
|
95,560
|
247,965
|
264,075
|
|||||||||
OTHER
INCOME (net of income taxes)
|
20,069
|
17,141
|
37,352
|
50,285
|
|||||||||
NET
INTEREST CHARGES:
|
|||||||||||||
Interest
on
long-term debt
|
12,989
|
10,657
|
44,330
|
43,641
|
|||||||||
Allowance
for
borrowed funds used during construction
|
|||||||||||||
and
capitalized interest
|
(3,014
|
)
|
(1,950
|
)
|
(8,255
|
)
|
(4,924
|
)
|
|||||
Other
interest expense
|
4,193
|
640
|
12,457
|
7,576
|
|||||||||
Subsidiary's
preferred stock dividend requirements
|
156
|
639
|
1,534
|
1,919
|
|||||||||
Net
interest
charges
|
14,324
|
9,986
|
50,066
|
48,212
|
|||||||||
NET
INCOME
|
131,398
|
102,715
|
235,251
|
266,148
|
|||||||||
PREFERRED
STOCK DIVIDEND REQUIREMENTS
|
659
|
623
|
1,976
|
1,843
|
|||||||||
EARNINGS
ON COMMON STOCK
|
$
|
130,739
|
$
|
102,092
|
$
|
233,275
|
$
|
264,305
|
|||||
STATEMENTS
OF COMPREHENSIVE INCOME
|
|||||||||||||
NET
INCOME
|
$
|
131,398
|
$
|
102,715
|
$
|
235,251
|
$
|
266,148
|
|||||
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|||||||||||||
Unrealized
loss on available for sale securities
|
(3,402
|
)
|
(6,913
|
)
|
(19,079
|
)
|
(2,767
|
)
|
|||||
Income
tax
benefit related to other comprehensive income
|
2,043
|
2,850
|
7,713
|
1,141
|
|||||||||
Other
comprehensive loss, net of tax
|
(1,359
|
)
|
(4,063
|
)
|
(11,366
|
)
|
(1,626
|
)
|
|||||
TOTAL
COMPREHENSIVE INCOME
|
$
|
130,039
|
$
|
98,652
|
$
|
223,885
|
$
|
264,522
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
Ohio Edison
Company are an integral part of these
|
|||||||||||||
statements.
|
OHIO
EDISON COMPANY
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(Unaudited)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
UTILITY
PLANT:
|
|||||||
In
service
|
$
|
5,573,996
|
$
|
5,440,374
|
|||
Less
-
Accumulated provision for depreciation
|
2,793,343
|
2,716,851
|
|||||
2,780,653
|
2,723,523
|
||||||
Construction
work in progress -
|
|||||||
Electric
plant
|
246,325
|
203,167
|
|||||
Nuclear
fuel
|
17,972
|
21,694
|
|||||
264,297
|
224,861
|
||||||
3,044,950
|
2,948,384
|
||||||
OTHER
PROPERTY AND INVESTMENTS:
|
|||||||
Investment
in
lease obligation bonds
|
341,335
|
354,707
|
|||||
Nuclear
plant
decommissioning trusts
|
462,439
|
436,134
|
|||||
Long-term
notes receivable from associated companies
|
207,089
|
208,170
|
|||||
Other
|
44,623
|
48,579
|
|||||
1,055,486
|
1,047,590
|
||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash
equivalents
|
900
|
1,230
|
|||||
Receivables
-
|
|||||||
Customers
(less accumulated provisions of $7,312,000 and $6,302,000,
respectively,
|
|||||||
for
uncollectible accounts)
|
285,462
|
274,304
|
|||||
Associated
companies
|
121,262
|
245,148
|
|||||
Other
(less
accumulated provisions of $14,000 and $64,000,
respectively,
|
|||||||
for
uncollectible accounts)
|
20,653
|
18,385
|
|||||
Notes
receivable from associated companies
|
798,513
|
538,871
|
|||||
Materials
and
supplies, at average cost
|
92,610
|
90,072
|
|||||
Prepayments
and other
|
17,336
|
13,104
|
|||||
1,336,736
|
1,181,114
|
||||||
DEFERRED
CHARGES:
|
|||||||
Regulatory
assets
|
844,590
|
1,115,627
|
|||||
Property
taxes
|
61,419
|
61,419
|
|||||
Unamortized
sale and leaseback costs
|
56,477
|
60,242
|
|||||
Other
|
67,093
|
68,275
|
|||||
1,029,579
|
1,305,563
|
||||||
$
|
6,466,751
|
$
|
6,482,651
|
||||
CAPITALIZATION
AND LIABILITIES
|
|||||||
CAPITALIZATION:
|
|||||||
Common
stockholder's equity -
|
|||||||
Common
stock,
without par value, authorized 175,000,000 shares - 100 shares
outstanding
|
$
|
2,099,099
|
$
|
2,098,729
|
|||
Accumulated
other comprehensive loss
|
(58,484
|
)
|
(47,118
|
)
|
|||
Retained
earnings
|
434,473
|
442,198
|
|||||
Total
common
stockholder's equity
|
2,475,088
|
2,493,809
|
|||||
Preferred
stock
|
60,965
|
60,965
|
|||||
Preferred
stock of consolidated subsidiary
|
14,105
|
39,105
|
|||||
Long-term
debt
and other long-term obligations
|
1,099,147
|
1,114,914
|
|||||
3,649,305
|
3,708,793
|
||||||
CURRENT
LIABILITIES:
|
|||||||
Currently
payable long-term debt
|
273,656
|
398,263
|
|||||
Short-term
borrowings -
|
|||||||
Associated
companies
|
120,971
|
11,852
|
|||||
Other
|
123,584
|
167,007
|
|||||
Accounts
payable -
|
|||||||
Associated
companies
|
81,980
|
187,921
|
|||||
Other
|
11,289
|
10,582
|
|||||
Accrued
taxes
|
213,843
|
153,400
|
|||||
Other
|
117,268
|
74,663
|
|||||
942,591
|
1,003,688
|
||||||
NONCURRENT
LIABILITIES:
|
|||||||
Accumulated
deferred income taxes
|
688,702
|
766,276
|
|||||
Accumulated
deferred investment tax credits
|
52,108
|
62,471
|
|||||
Asset
retirement obligation
|
364,525
|
339,134
|
|||||
Retirement
benefits
|
320,044
|
307,880
|
|||||
Other
|
449,476
|
294,409
|
|||||
1,874,855
|
1,770,170
|
||||||
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
|||||||
$
|
6,466,751
|
$
|
6,482,651
|
||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
Ohio Edison
Company are an integral part of these balance sheets.
|
|||||||
OHIO
EDISON COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||
Net
income
|
$
|
131,398
|
$
|
102,715
|
$
|
235,251
|
$
|
266,148
|
|||||
Adjustments
to reconcile net income to net cash from
|
|||||||||||||
operating
activities -
|
|||||||||||||
Provision
for
depreciation
|
30,169
|
30,702
|
87,875
|
90,846
|
|||||||||
Amortization
of regulatory assets
|
126,439
|
103,211
|
347,880
|
317,030
|
|||||||||
Deferral
of
new regulatory assets
|
(43,929
|
)
|
(25,728
|
)
|
(107,750
|
)
|
(69,790
|
)
|
|||||
Nuclear
fuel
and lease amortization
|
11,867
|
11,914
|
30,530
|
33,766
|
|||||||||
Amortization
of lease costs
|
32,963
|
33,037
|
30,011
|
30,585
|
|||||||||
Amortization
of electric service obligation
|
(4,565
|
)
|
-
|
(8,556
|
)
|
-
|
|||||||
Deferred
income taxes and investment tax credits, net
|
(17,787
|
)
|
(11,374
|
)
|
(22,929
|
)
|
(61,961
|
)
|
|||||
Accrued
retirement benefit obligations
|
5,503
|
7,253
|
12,164
|
24,482
|
|||||||||
Accrued
compensation, net
|
1,254
|
1,106
|
(1,903
|
)
|
5,138
|
||||||||
Pension
trust
contribution
|
-
|
(72,763
|
)
|
-
|
(72,763
|
)
|
|||||||
Decrease
(increase) in operating assets -
|
|||||||||||||
Receivables
|
32,715
|
(86,506
|
)
|
110,460
|
(10,734
|
)
|
|||||||
Materials
and
supplies
|
15,611
|
(2,930
|
)
|
(2,538
|
)
|
(8,796
|
)
|
||||||
Prepayments
and other current assets
|
2,988
|
4,878
|
(4,232
|
)
|
(1,636
|
)
|
|||||||
Increase
(decrease) in operating liabilities -
|
|||||||||||||
Accounts
payable
|
(20,007
|
)
|
115,690
|
(105,234
|
)
|
21,905
|
|||||||
Accrued
taxes
|
41,365
|
(4,464
|
)
|
60,443
|
(346,918
|
)
|
|||||||
Accrued
interest
|
2,458
|
3,028
|
1,667
|
2,918
|
|||||||||
Prepayment
for electric service - education programs
|
-
|
-
|
136,142
|
-
|
|||||||||
Other
|
(11,504
|
)
|
2,572
|
1,372
|
(8,624
|
)
|
|||||||
Net
cash
provided from operating activities
|
336,938
|
212,341
|
800,653
|
211,596
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||
New
Financing
-
|
|||||||||||||
Long-term
debt
|
-
|
-
|
146,450
|
30,000
|
|||||||||
Short-term
borrowings, net
|
18,254
|
91,072
|
65,696
|
13,258
|
|||||||||
Redemptions
and Repayments -
|
|||||||||||||
Preferred
stock
|
-
|
-
|
(37,750
|
)
|
-
|
||||||||
Long-term
debt
|
(17,819
|
)
|
(36,090
|
)
|
(278,327
|
)
|
(152,900
|
)
|
|||||
Dividend
Payments -
|
|||||||||||||
Common
stock
|
(64,000
|
)
|
(68,000
|
)
|
(241,000
|
)
|
(239,000
|
)
|
|||||
Preferred
stock
|
(659
|
)
|
(623
|
)
|
(1,976
|
)
|
(1,843
|
)
|
|||||
Net
cash used
for financing activities
|
(64,224
|
)
|
(13,641
|
)
|
(346,907
|
)
|
(350,485
|
)
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||
Property
additions
|
(69,346
|
)
|
(61,682
|
)
|
(190,804
|
)
|
(146,645
|
)
|
|||||
Contributions
to nuclear decommissioning trusts
|
(7,885
|
)
|
(7,885
|
)
|
(23,655
|
)
|
(23,655
|
)
|
|||||
Loan
repayments from (loans to) associated companies, net
|
(200,021
|
)
|
(378,081
|
)
|
(258,561
|
)
|
30,709
|
||||||
Proceeds
from
certificates of deposit
|
-
|
277,763
|
-
|
277,763
|
|||||||||
Other
|
4,155
|
(29,200
|
)
|
18,944
|
113
|
||||||||
Net
cash
provided from (used for) investing activities
|
(273,097
|
)
|
(199,085
|
)
|
(454,076
|
)
|
138,285
|
||||||
Net
decrease
in cash and cash equivalents
|
(383
|
)
|
(385
|
)
|
(330
|
)
|
(604
|
)
|
|||||
Cash
and cash
equivalents at beginning of period
|
1,283
|
1,664
|
1,230
|
1,883
|
|||||||||
Cash
and cash
equivalents at end of period
|
$
|
900
|
$
|
1,279
|
$
|
900
|
$
|
1,279
|
|||||
|
|||||||||||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
Ohio Edison
Company are an integral part of these
|
|||||||||||||
statements.
|
|||||||||||||
|
Three
|
|
Nine
|
|
|||
Changes
in KWH Sales
|
|
Months
|
|
Months
|
|
||
Increase
(Decrease)
|
|
|
|
|
|
||
Electric
Generation:
|
|
|
|
|
|
||
Retail
|
|
|
9.1
|
%
|
|
3.9
|
%
|
Wholesale
|
|
|
(1.2
|
)%
|
|
(9.4
|
)%
|
Total
Electric Generation Sales
|
|
|
4.0
|
%
|
|
(2.6
|
)%
|
|
|
|
|
|
|
|
|
Distribution
Deliveries:
|
|
|
|
|
|
|
|
Residential
|
|
|
15.9
|
%
|
|
8.3
|
%
|
Commercial
|
|
|
6.3
|
%
|
|
4.2
|
%
|
Industrial
|
|
|
6.9
|
%
|
|
3.4
|
%
|
Total
Distribution Deliveries
|
|
|
9.8
|
%
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
Operating
Expenses and Taxes - Changes
|
|
Three
Months
|
|
Nine
Months
|
|
||
Increase
(Decrease)
|
|
(In
millions)
|
|
||||
Fuel
costs
|
|
$
|
--
|
|
$
|
(5
|
)
|
Purchased
power costs
|
|
|
(13
|
)
|
|
(27
|
)
|
Nuclear
operating costs
|
|
|
(5
|
)
|
|
29
|
|
Other
operating costs
|
|
|
16
|
|
|
17
|
|
Provision
for
depreciation
|
|
|
(1
|
)
|
|
(3
|
)
|
Amortization
of regulatory assets
|
|
|
23
|
|
|
31
|
|
Deferral
of
new regulatory assets
|
|
|
(18
|
)
|
|
(38
|
)
|
General
taxes
|
|
|
4
|
|
|
11
|
|
Income
taxes
|
|
|
23
|
|
|
42
|
|
Net
increase in operating expenses and taxes
|
|
$
|
29
|
|
$
|
57
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Operating
Cash Flows
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Cash
earnings
(1)
|
|
$
|
273
|
|
$
|
224
|
|
$
|
603
|
|
$
|
607
|
|
Pension
trust
contribution (2)
|
--
|
(44
|
)
|
--
|
(44
|
)
|
|||||||
Working
capital and other
|
|
|
64
|
|
|
32
|
|
|
198
|
|
|
(351
|
)
|
Total
cash
flows from operating activities
|
|
$
|
337
|
|
$
|
212
|
|
$
|
801
|
|
$
|
212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Cash
earnings is a non-GAAP measure (see reconciliation
below).
|
|
|
|
|
|
|
|
|
|
|
|||
(2)
Pension
trust contribution net of $29 million of income tax
benefits.
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Reconciliation
of Cash Earnings
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net
income
(GAAP)
|
|
$
|
131
|
|
$
|
103
|
|
$
|
235
|
|
$
|
266
|
|
Non-cash
charges (credits):
|
|
|
|
|
|
|
|
|
|
|
|||
Provision
for
depreciation
|
|
|
30
|
|
|
31
|
|
|
88
|
|
|
91
|
|
Amortization
of regulatory assets
|
|
|
126
|
|
|
103
|
|
|
348
|
|
|
317
|
|
Amortization
of lease costs
|
33
|
33
|
30
|
31
|
|||||||||
Nuclear
fuel
and capital lease amortization
|
|
|
12
|
|
|
12
|
|
|
31
|
|
|
34
|
|
Deferral
of
new regulatory assets
|
|
|
(44
|
)
|
|
(26
|
)
|
|
(108
|
)
|
|
(70
|
)
|
Deferred
income taxes and investment tax credits, net
|
|
|
(18
|
)
|
|
(40
|
)
|
|
(23
|
)
|
|
(91
|
)
|
Other
non-cash items
|
|
|
3
|
|
|
8
|
|
|
2
|
|
29
|
|
|
Cash
earnings
(Non-GAAP)
|
|
$
|
273
|
|
$
|
224
|
|
$
|
603
|
|
$
|
607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EITF
Issue No. 05-6, “Determining the Amortization Period for Leasehold
Improvements Purchased after Lease Inception or Acquired in a Business
Combination”
|
FIN
47,
“Accounting for Conditional Asset Retirement Obligations - an
interpretation of FASB Statement No.
143”
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement of APB
Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion No.
29”
|
THE
CLEVELAND ELECTRIC ILLUMINATING COMPANY
|
||||||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2005
|
2004
|
2005
|
2004
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
STATEMENTS
OF INCOME
|
||||||||||||||||
OPERATING
REVENUES
|
$
|
526,421
|
$
|
504,848
|
$
|
1,408,341
|
$
|
1,372,259
|
||||||||
OPERATING
EXPENSES AND TAXES:
|
||||||||||||||||
Fuel
|
24,701
|
21,011
|
64,138
|
57,583
|
||||||||||||
Purchased
power
|
129,640
|
140,988
|
411,366
|
412,170
|
||||||||||||
Nuclear
operating costs
|
26,252
|
28,766
|
121,765
|
80,002
|
||||||||||||
Other
operating costs
|
89,475
|
76,196
|
227,759
|
219,857
|
||||||||||||
Provision
for
depreciation
|
36,100
|
33,096
|
100,602
|
98,060
|
||||||||||||
Amortization
of regulatory assets
|
68,455
|
53,732
|
177,497
|
151,822
|
||||||||||||
Deferral
of
new regulatory assets
|
(60,519
|
)
|
(40,596
|
)
|
(126,508
|
)
|
(92,032
|
)
|
||||||||
General
taxes
|
40,054
|
37,348
|
115,546
|
110,646
|
||||||||||||
Income
taxes
|
55,286
|
51,883
|
94,897
|
81,057
|
||||||||||||
Total
operating expenses and taxes
|
409,444
|
402,424
|
1,187,062
|
1,119,165
|
||||||||||||
OPERATING
INCOME
|
116,977
|
102,424
|
221,279
|
253,094
|
||||||||||||
OTHER
INCOME (net of income taxes)
|
24,117
|
8,264
|
37,691
|
29,485
|
||||||||||||
NET
INTEREST CHARGES:
|
||||||||||||||||
Interest
on
long-term debt
|
27,090
|
24,061
|
83,452
|
92,967
|
||||||||||||
Allowance
for
borrowed funds used during construction
|
(1,129
|
)
|
(1,056
|
)
|
(2,012
|
)
|
(3,782
|
)
|
||||||||
Other
interest expense
|
4,696
|
5,239
|
12,952
|
12,750
|
||||||||||||
Net
interest
charges
|
30,657
|
28,244
|
94,392
|
101,935
|
||||||||||||
NET
INCOME
|
110,437
|
82,444
|
164,578
|
180,644
|
||||||||||||
PREFERRED
STOCK DIVIDEND REQUIREMENTS
|
-
|
1,754
|
2,918
|
5,253
|
||||||||||||
EARNINGS
ON COMMON STOCK
|
$
|
110,437
|
$
|
80,690
|
$
|
161,660
|
$
|
175,391
|
||||||||
STATEMENTS
OF COMPREHENSIVE INCOME
|
||||||||||||||||
NET
INCOME
|
$
|
110,437
|
$
|
82,444
|
$
|
164,578
|
$
|
180,644
|
||||||||
OTHER
COMPREHENSIVE INCOME (LOSS):
|
||||||||||||||||
Unrealized
gain (loss) on available for sale securities
|
(6,574
|
)
|
991
|
(9,144
|
)
|
(1,332
|
)
|
|||||||||
Income
tax
expense (benefit) related to other comprehensive income
|
(2,510
|
)
|
406
|
(3,433
|
)
|
(546
|
)
|
|||||||||
Other
comprehensive income (loss), net of tax
|
(4,064
|
)
|
585
|
(5,711
|
)
|
(786
|
)
|
|||||||||
TOTAL
COMPREHENSIVE INCOME
|
$
|
106,373
|
$
|
83,029
|
$
|
158,867
|
$
|
179,858
|
||||||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
The Cleveland
Electric Illuminating Company are an
|
||||||||||||||||
integral
part
of these statements.
|
||||||||||||||||
THE
CLEVELAND ELECTRIC ILLUMINATING COMPANY
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(Unaudited)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
UTILITY
PLANT:
|
|||||||
In
service
|
$
|
4,498,876
|
$
|
4,418,313
|
|||
Less
-
Accumulated provision for depreciation
|
2,020,868
|
1,961,737
|
|||||
2,478,008
|
2,456,576
|
||||||
Construction
work in progress -
|
|||||||
Electric
plant
|
90,911
|
85,258
|
|||||
Nuclear
fuel
|
8,632
|
30,827
|
|||||
99,543
|
116,085
|
||||||
2,577,551
|
2,572,661
|
||||||
OTHER
PROPERTY AND INVESTMENTS:
|
|||||||
Investment
in
lessor notes
|
564,169
|
596,645
|
|||||
Nuclear
plant
decommissioning trusts
|
427,920
|
383,875
|
|||||
Long-term
notes receivable from associated companies
|
8,774
|
97,489
|
|||||
Other
|
16,028
|
17,001
|
|||||
1,016,891
|
1,095,010
|
||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash
equivalents
|
207
|
197
|
|||||
Receivables-
|
|||||||
Customers
(less accumulated provision of $5,309,000 for uncollectible accounts
in
2005)
|
255,769
|
11,537
|
|||||
Associated
companies
|
19,883
|
33,414
|
|||||
Other
(less
accumulated provisions of $6,000 and $293,000, respectively,
|
9,651
|
152,785
|
|||||
for
uncollectible accounts)
|
|||||||
Notes
receivable from associated companies
|
-
|
521
|
|||||
Materials
and
supplies, at average cost
|
72,506
|
58,922
|
|||||
Prepayments
and other
|
2,769
|
2,136
|
|||||
360,785
|
259,512
|
||||||
DEFERRED
CHARGES:
|
|||||||
Goodwill
|
1,688,966
|
1,693,629
|
|||||
Regulatory
assets
|
889,127
|
958,986
|
|||||
Property
taxes
|
77,792
|
77,792
|
|||||
Other
|
29,995
|
32,875
|
|||||
2,685,880
|
2,763,282
|
||||||
$
|
6,641,107
|
$
|
6,690,465
|
||||
CAPITALIZATION
AND LIABILITIES
|
|||||||
CAPITALIZATION:
|
|||||||
Common
stockholder's equity-
|
|||||||
Common
stock,
without par value, authorized 105,000,000 shares -
|
|||||||
79,590,689
shares outstanding
|
$
|
1,356,998
|
$
|
1,281,962
|
|||
Accumulated
other comprehensive income
|
12,148
|
17,859
|
|||||
Retained
earnings
|
574,394
|
553,740
|
|||||
Total
common
stockholder's equity
|
1,943,540
|
1,853,561
|
|||||
Preferred
stock
|
-
|
96,404
|
|||||
Long-term
debt
and other long-term obligations
|
1,939,730
|
1,970,117
|
|||||
3,883,270
|
3,920,082
|
||||||
CURRENT
LIABILITIES:
|
|||||||
Currently
payable long-term debt
|
75,706
|
76,701
|
|||||
Short-term
borrowings-
|
|||||||
Associated
companies
|
518,784
|
488,633
|
|||||
Other
|
35,000
|
-
|
|||||
Accounts
payable-
|
|||||||
Associated
companies
|
33,802
|
150,141
|
|||||
Other
|
6,702
|
9,271
|
|||||
Accrued
taxes
|
156,630
|
129,454
|
|||||
Accrued
interest
|
27,242
|
22,102
|
|||||
Lease
market
valuation liability
|
60,200
|
60,200
|
|||||
Other
|
39,094
|
61,131
|
|||||
953,160
|
997,633
|
||||||
NONCURRENT
LIABILITIES:
|
|||||||
Accumulated
deferred income taxes
|
552,072
|
540,211
|
|||||
Accumulated
deferred investment tax credits
|
58,736
|
60,901
|
|||||
Lease
market
valuation liability
|
623,100
|
668,200
|
|||||
Asset
retirement obligation
|
280,765
|
272,123
|
|||||
Retirement
benefits
|
86,597
|
82,306
|
|||||
Other
|
203,407
|
149,009
|
|||||
1,804,677
|
1,772,750
|
||||||
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
|||||||
$
|
6,641,107
|
$
|
6,690,465
|
||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
The Cleveland
Electric Illuminating Company are
|
|||||||
an
integral
part of these balance sheets.
|
|||||||
THE
CLEVELAND ELECTRIC ILLUMINATING COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||
Net
income
|
$
|
110,437
|
$
|
82,444
|
$
|
164,578
|
$
|
180,644
|
|||||
Adjustments
to reconcile net income to net cash from
|
|||||||||||||
operating
activities -
|
|||||||||||||
Provision
for
depreciation
|
36,100
|
33,096
|
100,602
|
98,060
|
|||||||||
Amortization
of regulatory assets
|
68,455
|
53,732
|
177,497
|
151,822
|
|||||||||
Deferral
of
new regulatory assets
|
(60,519
|
)
|
(40,596
|
)
|
(126,508
|
)
|
(92,032
|
)
|
|||||
Nuclear
fuel
and capital lease amortization
|
8,236
|
7,804
|
19,017
|
20,420
|
|||||||||
Amortization
of electric service obligation
|
(2,155
|
)
|
(3,336
|
)
|
(12,278
|
)
|
(12,877
|
)
|
|||||
Deferred
rents and lease market valuation liability
|
(13,439
|
)
|
(14,324
|
)
|
(67,130
|
)
|
(56,182
|
)
|
|||||
Deferred
income taxes and investment tax credits, net
|
10,484
|
13,019
|
14,934
|
11,392
|
|||||||||
Accrued
retirement benefit obligations
|
2,169
|
2,854
|
4,291
|
10,900
|
|||||||||
Accrued
compensation, net
|
1,201
|
1,303
|
(1,294
|
)
|
3,232
|
||||||||
Pension
trust
contribution
|
-
|
(31,718
|
)
|
-
|
(31,718
|
)
|
|||||||
Decrease
(increase) in operating assets-
|
|||||||||||||
Receivables
|
10,507
|
(3,422
|
)
|
(87,567
|
)
|
106,421
|
|||||||
Materials
and
supplies
|
15,207
|
(2,238
|
)
|
(13,584
|
)
|
(7,711
|
)
|
||||||
Prepayments
and other current assets
|
(821
|
)
|
1,512
|
(633
|
)
|
3,409
|
|||||||
Increase
(decrease) in operating liabilities-
|
|||||||||||||
Accounts
payable
|
(157,188
|
)
|
60,237
|
(118,908
|
)
|
1,889
|
|||||||
Accrued
taxes
|
33,955
|
(15,630
|
)
|
27,176
|
(52,495
|
)
|
|||||||
Accrued
interest
|
5,460
|
(3,218
|
)
|
5,140
|
(2,371
|
)
|
|||||||
Prepayment
for electric service - education programs
|
-
|
-
|
67,589
|
-
|
|||||||||
Other
|
(18,457
|
)
|
(3,335
|
)
|
(26,328
|
)
|
(40,193
|
)
|
|||||
Net
cash
provided from operating activities
|
49,632
|
138,184
|
126,594
|
292,610
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||
New
Financing-
|
|||||||||||||
Long-term
debt
|
87,772
|
44,330
|
141,056
|
125,238
|
|||||||||
Short-term
borrowings, net
|
-
|
213,682
|
53,369
|
132,770
|
|||||||||
Equity
contributions from parent
|
-
|
-
|
75,000
|
-
|
|||||||||
Redemptions
and Repayments-
|
|||||||||||||
Preferred
stock
|
-
|
(1,000
|
)
|
(101,900
|
)
|
(1,000
|
)
|
||||||
Long-term
debt
|
(90,859
|
)
|
(327,171
|
)
|
(147,789
|
)
|
(335,272
|
)
|
|||||
Short-term
borrowings, net
|
(5,505
|
)
|
-
|
-
|
-
|
||||||||
Dividend
Payments-
|
|||||||||||||
Common
stock
|
(17,000
|
)
|
-
|
(141,000
|
)
|
(145,000
|
)
|
||||||
Preferred
stock
|
-
|
(1,755
|
)
|
(2,260
|
)
|
(5,253
|
)
|
||||||
Net
cash used
for financing activities
|
(25,592
|
)
|
(71,914
|
)
|
(123,524
|
)
|
(228,517
|
)
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||
Property
additions
|
(37,809
|
)
|
(32,238
|
)
|
(98,053
|
)
|
(70,967
|
)
|
|||||
Loan
repayments from (loans to) associated companies, net
|
22,309
|
(850
|
)
|
89,236
|
9,964
|
||||||||
Investments
in lessor notes
|
3
|
(11,699
|
)
|
32,476
|
9,266
|
||||||||
Contributions
to nuclear decommissioning trusts
|
(7,256
|
)
|
(7,256
|
)
|
(21,768
|
)
|
(21,768
|
)
|
|||||
Other
|
(1,287
|
)
|
(14,227
|
)
|
(4,951
|
)
|
(15,170
|
)
|
|||||
Net
cash used
for investing activities
|
(24,040
|
)
|
(66,270
|
)
|
(3,060
|
)
|
(88,675
|
)
|
|||||
Net
change in
cash and cash equivalents
|
-
|
-
|
10
|
(24,582
|
)
|
||||||||
Cash
and cash
equivalents at beginning of period
|
207
|
200
|
197
|
24,782
|
|||||||||
Cash
and cash
equivalents at end of period
|
$
|
207
|
$
|
200
|
$
|
207
|
$
|
200
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
The Cleveland
Electric Illuminating Company are an
|
|||||||||||||
integral
part
of these statements.
|
|||||||||||||
Three
|
|
Nine
|
|
||||
Changes
in KWH Sales
|
|
Months
|
|
Months
|
|
||
Increase
(Decrease)
|
|
|
|
|
|
||
Electric
Generation:
|
|
|
|
|
|
||
Retail
|
|
|
0.6
|
%
|
|
(0.3
|
)%
|
Wholesale
|
|
|
2.5
|
%
|
|
(4.0
|
)%
|
Total
Electric Generation Sales
|
|
|
1.7
|
%
|
|
(2.5
|
)%
|
|
|
|
|
|
|
|
|
Distribution
Deliveries:
|
|
|
|
|
|
|
|
Residential
|
|
|
18.7
|
%
|
|
9.7
|
%
|
Commercial
|
|
|
1.5
|
%
|
|
3.3
|
%
|
Industrial
|
|
|
2.8
|
%
|
|
(1.0
|
)%
|
Total
Distribution Deliveries
|
|
|
6.6
|
%
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three
|
|
Nine
|
|
|||
Operating
Expenses and Taxes - Changes
|
|
Months
|
Months
|
|
|||
Increase
(Decrease)
|
|
(In
millions)
|
|
||||
Fuel
costs
|
|
$
|
3
|
|
$
|
6
|
|
Purchased
power costs
|
|
|
(11
|
)
|
|
(1
|
)
|
Nuclear
operating costs
|
|
|
(2
|
)
|
|
42
|
|
Other
operating costs
|
13
|
8
|
|||||
Provision
for
depreciation
|
|
|
3
|
|
|
3
|
|
Amortization
of regulatory assets
|
|
|
15
|
|
|
26
|
|
Deferral
of
new regulatory assets
|
|
|
(20
|
)
|
|
(35
|
)
|
General
taxes
|
3
|
5
|
|||||
Income
taxes
|
|
|
3
|
|
|
14
|
|
Net
increase in operating expenses and taxes
|
|
$
|
7
|
|
$
|
68
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
September
30,
|
|
September
30,
|
|
|||||||||
Operating
Cash Flows
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Cash
earnings
(1)
|
|
$
|
161
|
|
$
|
123
|
|
$
|
274
|
|
$
|
302
|
|
Pension
trust
contribution (2)
|
--
|
(19
|
)
|
--
|
(19
|
)
|
|||||||
Working
capital and other
|
|
|
(111
|
)
|
|
35
|
|
|
(147
|
)
|
|
10
|
|
Total
cash
flows from operating activities
|
|
$
|
50
|
|
$
|
139
|
|
$
|
127
|
|
$
|
293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Cash
earnings is a non-GAAP measure (see reconciliation below).
(2)
Pension
contribution net of $13 million of income tax benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Reconciliation
of Cash Earnings
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net
income
(GAAP)
|
|
$
|
110
|
|
$
|
83
|
|
$
|
164
|
|
$
|
181
|
|
Non-cash
charges (credits):
|
|
|
|
|
|
|
|
|
|
||||
Provision
for
depreciation
|
|
|
36
|
|
|
33
|
|
|
101
|
|
|
98
|
|
Amortization
of regulatory assets
|
|
|
68
|
|
|
54
|
|
|
177
|
|
|
152
|
|
Deferral
of
new regulatory assets
|
|
|
(60
|
)
|
|
(41
|
)
|
|
(126
|
)
|
|
(92
|
)
|
Nuclear
fuel
and capital lease amortization
|
|
|
8
|
|
|
7
|
|
|
19
|
|
|
20
|
|
Amortization
of electric service obligation
|
|
|
(2
|
)
|
|
(3
|
)
|
|
(12
|
)
|
|
(13
|
)
|
Deferred
rents and lease market valuation liability
|
|
|
(13
|
)
|
|
(14
|
)
|
|
(67
|
)
|
|
(56
|
)
|
Deferred
income taxes and investment tax credits, net
|
|
|
10
|
|
|
--
|
|
|
15
|
|
|
(2
|
)
|
Accrued
retirement benefit obligations
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
11
|
|
Accrued
compensation, net
|
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|
3
|
|
Cash
earnings
(Non-GAAP)
|
|
$
|
161
|
|
$
|
123
|
|
$
|
274
|
|
$
|
302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EITF
Issue No. 05-6, "Determining the Amortization Period for Leasehold
Improvements Purchased after Lease Inception or Acquired in a
Business
Combination"
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement of APB
Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion No.
29”
|
THE
TOLEDO EDISON COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
STATEMENTS
OF INCOME
|
|||||||||||||
OPERATING
REVENUES
|
$
|
286,960
|
$
|
276,342
|
$
|
787,824
|
$
|
755,106
|
|||||
OPERATING
EXPENSES AND TAXES:
|
|||||||||||||
Fuel
|
16,501
|
13,908
|
43,474
|
37,195
|
|||||||||
Purchased
power
|
73,144
|
79,774
|
225,600
|
236,869
|
|||||||||
Nuclear
operating costs
|
39,207
|
43,827
|
145,059
|
122,685
|
|||||||||
Other
operating costs
|
48,164
|
43,865
|
123,823
|
121,228
|
|||||||||
Provision
for
depreciation
|
18,835
|
14,588
|
48,724
|
43,021
|
|||||||||
Amortization
of regulatory assets
|
39,576
|
41,037
|
107,672
|
102,065
|
|||||||||
Deferral
of
new regulatory assets
|
(19,379
|
)
|
(12,442
|
)
|
(41,473
|
)
|
(29,664
|
)
|
|||||
General
taxes
|
14,159
|
14,924
|
41,960
|
41,252
|
|||||||||
Income
taxes
|
20,311
|
11,963
|
44,160
|
18,465
|
|||||||||
Total
operating expenses and taxes
|
250,518
|
251,444
|
738,999
|
693,116
|
|||||||||
OPERATING
INCOME
|
36,442
|
24,898
|
48,825
|
61,990
|
|||||||||
OTHER
INCOME (net of income taxes)
|
12,283
|
4,172
|
18,173
|
14,724
|
|||||||||
NET
INTEREST CHARGES:
|
|||||||||||||
Interest
on
long-term debt
|
3,912
|
4,015
|
12,655
|
23,057
|
|||||||||
Allowance
for
borrowed funds used during construction
|
(372
|
)
|
(741
|
)
|
(117
|
)
|
(2,843
|
)
|
|||||
Other
interest expense
|
2,958
|
1,350
|
4,192
|
2,945
|
|||||||||
Net
interest
charges
|
6,498
|
4,624
|
16,730
|
23,159
|
|||||||||
NET
INCOME
|
42,227
|
24,446
|
50,268
|
53,555
|
|||||||||
PREFERRED
STOCK DIVIDEND REQUIREMENTS
|
1,687
|
2,211
|
6,109
|
6,633
|
|||||||||
EARNINGS
ON COMMON STOCK
|
$
|
40,540
|
$
|
22,235
|
$
|
44,159
|
$
|
46,922
|
|||||
STATEMENTS
OF COMPREHENSIVE INCOME
|
|||||||||||||
NET
INCOME
|
$
|
42,227
|
$
|
24,446
|
$
|
50,268
|
$
|
53,555
|
|||||
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|||||||||||||
Unrealized
gain (loss) on available for sale securities
|
(4,511
|
)
|
913
|
(6,695
|
)
|
(379
|
)
|
||||||
Income
tax
expense (benefit) related to other comprehensive income
|
(1,743
|
)
|
375
|
(2,534
|
)
|
(155
|
)
|
||||||
Other
comprehensive income (loss), net of tax
|
(2,768
|
)
|
538
|
(4,161
|
)
|
(224
|
)
|
||||||
TOTAL
COMPREHENSIVE INCOME
|
$
|
39,459
|
$
|
24,984
|
$
|
46,107
|
$
|
53,331
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
The Toledo
Edison Company are an integral part of these
statements.
|
|||||||||||||
|
THE
TOLEDO EDISON COMPANY
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(Unaudited)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
UTILITY
PLANT:
|
|||||||
In
service
|
$
|
1,906,941
|
$
|
1,856,478
|
|||
Less
-
Accumulated provision for depreciation
|
820,562
|
778,864
|
|||||
1,086,379
|
1,077,614
|
||||||
Construction
work in progress -
|
|||||||
Electric
plant
|
55,376
|
58,535
|
|||||
Nuclear
fuel
|
7,370
|
15,998
|
|||||
62,746
|
74,533
|
||||||
1,149,125
|
1,152,147
|
||||||
OTHER
PROPERTY AND INVESTMENTS:
|
|||||||
Investment
in
lessor notes
|
178,765
|
190,692
|
|||||
Nuclear
plant
decommissioning trusts
|
335,553
|
297,803
|
|||||
Long-term
notes receivable from associated companies
|
39,964
|
39,975
|
|||||
Other
|
1,741
|
2,031
|
|||||
556,023
|
530,501
|
||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash
equivalents
|
15
|
15
|
|||||
Receivables
-
|
|||||||
Customers
(less accumulated provision of $2,000 for
|
|||||||
uncollectible
accounts in 2004)
|
2,412
|
4,858
|
|||||
Associated
companies
|
10,168
|
36,570
|
|||||
Other
|
8,658
|
3,842
|
|||||
Notes
receivable from associated companies
|
52,639
|
135,683
|
|||||
Materials
and
supplies, at average cost
|
42,404
|
40,280
|
|||||
Prepayments
and other
|
1,712
|
1,150
|
|||||
118,008
|
222,398
|
||||||
DEFERRED
CHARGES:
|
|||||||
Goodwill
|
501,022
|
504,522
|
|||||
Regulatory
assets
|
309,835
|
374,814
|
|||||
Property
taxes
|
24,100
|
24,100
|
|||||
Other
|
26,520
|
25,424
|
|||||
861,477
|
928,860
|
||||||
$
|
2,684,633
|
$
|
2,833,906
|
||||
CAPITALIZATION
AND LIABILITIES
|
|||||||
CAPITALIZATION:
|
|||||||
Common
stockholder's equity -
|
|||||||
Common
stock,
$5 par value, authorized 60,000,000 shares -
|
|||||||
39,133,887
shares outstanding
|
$
|
195,670
|
$
|
195,670
|
|||
Other
paid-in
capital
|
428,572
|
428,559
|
|||||
Accumulated
other comprehensive income
|
15,878
|
20,039
|
|||||
Retained
earnings
|
225,218
|
191,059
|
|||||
Total
common
stockholder's equity
|
865,338
|
835,327
|
|||||
Preferred
stock
|
96,000
|
126,000
|
|||||
Long-term
debt
|
296,373
|
300,299
|
|||||
1,257,711
|
1,261,626
|
||||||
CURRENT
LIABILITIES:
|
|||||||
Currently
payable long-term debt
|
53,650
|
90,950
|
|||||
Accounts
payable -
|
|||||||
Associated
companies
|
28,456
|
110,047
|
|||||
Other
|
3,252
|
2,247
|
|||||
Notes
payable
to associated companies
|
378,190
|
429,517
|
|||||
Accrued
taxes
|
72,214
|
46,957
|
|||||
Lease
market
valuation liability
|
24,600
|
24,600
|
|||||
Other
|
28,735
|
53,055
|
|||||
589,097
|
757,373
|
||||||
NONCURRENT
LIABILITIES:
|
|||||||
Accumulated
deferred income taxes
|
222,985
|
221,950
|
|||||
Accumulated
deferred investment tax credits
|
24,697
|
25,102
|
|||||
Lease
market
valuation liability
|
249,550
|
268,000
|
|||||
Retirement
benefits
|
42,998
|
39,227
|
|||||
Asset
retirement obligation
|
200,078
|
194,315
|
|||||
Other
|
97,517
|
66,313
|
|||||
837,825
|
814,907
|
||||||
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
|||||||
$
|
2,684,633
|
$
|
2,833,906
|
||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
The Toledo
Edison Company are an integral part of these blance sheets.
|
|||||||
|
THE
TOLEDO EDISON COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||
Net
income
|
$
|
42,227
|
$
|
24,446
|
$
|
50,268
|
$
|
53,555
|
|||||
Adjustments
to reconcile net income to net cash from
|
|||||||||||||
operating
activities -
|
|||||||||||||
Provision
for
depreciation
|
18,835
|
14,588
|
48,724
|
43,021
|
|||||||||
Amortization
of regulatory assets
|
39,576
|
41,037
|
107,672
|
102,065
|
|||||||||
Deferral
of
new regulatory assets
|
(19,379
|
)
|
(12,442
|
)
|
(41,473
|
)
|
(29,664
|
)
|
|||||
Nuclear
fuel
and capital lease amortization
|
5,682
|
7,058
|
13,816
|
17,596
|
|||||||||
Amortization
of electric service obligation
|
(1,910
|
)
|
-
|
(3,301
|
)
|
-
|
|||||||
Deferred
rents and lease market valuation liability
|
10,310
|
9,689
|
(34,156
|
)
|
(26,585
|
)
|
|||||||
Deferred
income taxes and investment tax credits, net
|
(12,798
|
)
|
(4,608
|
)
|
(4,605
|
)
|
(9,290
|
)
|
|||||
Accrued
retirement benefit obligations
|
1,534
|
1,324
|
3,771
|
4,733
|
|||||||||
Accrued
compensation, net
|
404
|
516
|
(333
|
)
|
1,477
|
||||||||
Pension
trust
contribution
|
-
|
(12,572
|
)
|
-
|
(12,572
|
)
|
|||||||
Decrease
(increase) in operating assets -
|
|||||||||||||
Receivables
|
3,423
|
69,908
|
15,962
|
95,383
|
|||||||||
Materials
and
supplies
|
3,788
|
(725
|
)
|
(2,124
|
)
|
(4,376
|
)
|
||||||
Prepayments
and other current assets
|
(970
|
)
|
677
|
(562
|
)
|
5,971
|
|||||||
Increase
(decrease) in operating liabilities -
|
|||||||||||||
Accounts
payable
|
(6,215
|
)
|
6,202
|
(80,586
|
)
|
(9,568
|
)
|
||||||
Accrued
taxes
|
14,748
|
(3,508
|
)
|
25,257
|
227
|
||||||||
Accrued
interest
|
(369
|
)
|
(7,169
|
)
|
(565
|
)
|
(7,540
|
)
|
|||||
Prepayment
for electric service -- education programs
|
-
|
-
|
37,954
|
-
|
|||||||||
Other
|
(14,392
|
)
|
(10,020
|
)
|
(22,999
|
)
|
(9,679
|
)
|
|||||
Net
cash
provided from operating activities
|
84,494
|
124,401
|
112,720
|
214,754
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||
New
Financing
-
|
|||||||||||||
Long-term
debt
|
-
|
30,500
|
45,000
|
103,500
|
|||||||||
Short-term
borrowings, net
|
45,054
|
146,370
|
-
|
29,310
|
|||||||||
Redemptions
and Repayments -
|
|||||||||||||
Preferred
stock
|
(30,000
|
)
|
-
|
(30,000
|
)
|
-
|
|||||||
Long-term
debt
|
(36,821
|
)
|
(246,591
|
)
|
(83,754
|
)
|
(261,591
|
)
|
|||||
Short-term
borrowings, net
|
-
|
-
|
(51,327
|
)
|
-
|
||||||||
Dividend
Payments -
|
|||||||||||||
Common
stock
|
-
|
-
|
(10,000
|
)
|
-
|
||||||||
Preferred
stock
|
(1,687
|
)
|
(2,211
|
)
|
(6,109
|
)
|
(6,633
|
)
|
|||||
Net
cash used
for financing activities
|
(23,454
|
)
|
(71,932
|
)
|
(136,190
|
)
|
(135,414
|
)
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||
Property
additions
|
(17,951
|
)
|
(16,950
|
)
|
(50,119
|
)
|
(36,377
|
)
|
|||||
Loan
repayments from (loans to) associated companies, net
|
(36,490
|
)
|
(20,389
|
)
|
83,055
|
(21,046
|
)
|
||||||
Investments
in lessor notes
|
32
|
-
|
11,927
|
10,280
|
|||||||||
Contributions
to nuclear decommissioning trusts
|
(7,135
|
)
|
(7,135
|
)
|
(21,406
|
)
|
(21,406
|
)
|
|||||
Other
|
504
|
(7,995
|
)
|
13
|
(13,013
|
)
|
|||||||
Net
cash
provided from (used for) investing activities
|
(61,040
|
)
|
(52,469
|
)
|
23,470
|
(81,562
|
)
|
||||||
Net
change in
cash and cash equivalents
|
-
|
-
|
-
|
(2,222
|
)
|
||||||||
Cash
and cash
equivalents at beginning of period
|
15
|
15
|
15
|
2,237
|
|||||||||
Cash
and cash
equivalents at end of period
|
$
|
15
|
$
|
15
|
$
|
15
|
$
|
15
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
The Toledo
Edison Company are an integral part of these statements.
|
|||||||||||||
|
|
Three
|
|
Nine
|
|
|||
Changes
in KWH Sales
|
|
Months
|
|
Months
|
|
||
Increase
(Decrease)
|
|
|
|
|
|
||
Electric
Generation:
|
|
|
|
|
|
||
Retail
|
|
|
6.0
|
%
|
|
3.9
|
%
|
Wholesale
|
|
|
3.5
|
%
|
|
3.4
|
%
|
Total
Electric Generation Sales
|
|
|
4.6
|
%
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
Distribution
Deliveries:
|
|
|
|
|
|
|
|
Residential
|
|
|
16.7
|
%
|
|
12.0
|
%
|
Commercial
|
|
|
4.7
|
%
|
|
6.8
|
%
|
Industrial
|
|
|
4.8
|
%
|
|
1.2
|
%
|
Total
Distribution Deliveries
|
|
|
7.7
|
%
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
Three
|
|
Nine
|
|
|||
Operating
Expenses and Taxes - Changes
|
|
Months
|
|
Months
|
|
||
Increase
(Decrease)
|
|
(In
millions)
|
|
||||
Fuel
costs
|
|
$
|
3
|
|
$
|
6
|
|
Purchased
power costs
|
|
|
(7
|
)
|
|
(11
|
)
|
Nuclear
operating costs
|
|
|
(4
|
)
|
|
22
|
|
Other
operating costs
|
|
|
4
|
|
|
3
|
|
Provision
for
depreciation
|
|
|
4
|
|
|
6
|
|
Amortization
of regulatory assets
|
|
|
(1
|
)
|
|
6
|
|
Deferral
of
new regulatory assets
|
|
|
(7
|
)
|
|
(12
|
)
|
General
taxes
|
(1
|
)
|
1
|
||||
Income
taxes
|
|
|
8
|
|
|
25
|
|
Net
increase (decrease) in operating expenses and
taxes
|
|
$
|
(1
|
)
|
$
|
46
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Operating
Cash Flows
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Cash
earnings(1)
|
|
$
|
84
|
|
$
|
77
|
|
$
|
140
|
|
$
|
152
|
|
Pension
trust
contribution(2)
|
--
|
(8
|
)
|
--
|
(8
|
)
|
|||||||
Working
capital and other
|
|
|
--
|
|
|
55
|
|
|
(27
|
)
|
|
71
|
|
Total
cash
flows from operating activities
|
|
$
|
84
|
|
$
|
124
|
|
$
|
113
|
|
$
|
215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Cash earnings are a non-GAAP measure (see reconciliation
below).
|
|||||||||||||
(2)
Pension trust contribution net of $5 million of income
tax
benefits.
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Reconciliation
of Cash Earnings
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net
income
(GAAP)
|
|
$
|
42
|
|
$
|
24
|
|
$
|
50
|
|
$
|
54
|
|
Non-cash
charges (credits):
|
|
|
|
|
|
|
|
|
|
||||
Provision
for
depreciation
|
|
|
19
|
|
|
15
|
|
|
49
|
|
|
43
|
|
Amortization
of regulatory assets
|
|
|
40
|
|
|
41
|
|
|
108
|
|
|
102
|
|
Deferral
of
new regulatory assets
|
(20
|
)
|
(12
|
)
|
(42
|
)
|
(30
|
)
|
|||||
Nuclear
fuel
and capital lease amortization
|
|
|
6
|
|
|
7
|
|
|
14
|
|
|
18
|
|
Amortization
of electric service obligation
|
|
|
(2
|
)
|
|
--
|
|
|
(3
|
)
|
|
-
|
|
Deferred
rents and above-market lease liability
|
|
|
10
|
|
|
10
|
|
|
(34
|
)
|
|
(27
|
)
|
Deferred
income taxes and investment tax credits, net
|
(13
|
)
|
(8
|
)
|
(5
|
)
|
(14
|
)
|
|||||
Accrued
retirement benefits obligations
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|
5
|
|
Accrued
compensation, net
|
|
|
-
|
|
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
Cash
earnings
(Non-GAAP)
|
|
$
|
84
|
|
$
|
77
|
|
$
|
140
|
|
$
|
152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
· |
Maintain
the
existing level of base distribution rates through December 31,
2008
for TE;
|
· |
Defer
and
capitalize certain distribution costs to be incurred by all of
the Ohio
Companies during the
period
January 1, 2006 through December 31, 2008, not
to exceed $150
million in each of the three
years;
|
· |
Adjust
the RTC
and extended RTC recovery periods and rate levels so that full
recovery of
authorized
costs
will
occur as of December 31, 2008 for
TE;
|
· |
Reduce
the
deferred shopping incentive balances as of January 1,
2006 by up to
$45 million for TE
by
accelerating
the application of its accumulated cost of removal regulatory
liability;
and
|
· |
Recover
increased fuel costs of up to $75 million, $77 million, and $79
million,
in 2006, 2007, and
2008,
respectively, from all OE and TE distribution and transmission
customers
through a fuel
recovery
mechanism. TE may defer and capitalize increased fuel costs above
the
amount collected
through
the
fuel recovery mechanism.
|
EITF
Issue No. 05-6, "Determining the Amortization Period for Leasehold
Improvements Purchased after Lease Inception or Acquired in a
Business
Combination"
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement of APB
Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion
No.
29”
|
PENNSYLVANIA
POWER COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
STATEMENTS
OF INCOME
|
|||||||||||||
OPERATING
REVENUES
|
$
|
145,540
|
$
|
143,340
|
$
|
414,306
|
$
|
420,578
|
|||||
OPERATING
EXPENSES AND TAXES:
|
|||||||||||||
Fuel
|
6,205
|
6,347
|
17,351
|
18,408
|
|||||||||
Purchased
power
|
42,242
|
44,096
|
131,948
|
136,699
|
|||||||||
Nuclear
operating costs
|
16,997
|
19,934
|
56,710
|
55,737
|
|||||||||
Other
operating costs
|
19,030
|
16,212
|
48,541
|
45,371
|
|||||||||
Provision
for
depreciation
|
3,847
|
3,556
|
11,351
|
10,390
|
|||||||||
Amortization
of regulatory assets
|
9,784
|
9,979
|
29,499
|
30,082
|
|||||||||
General
taxes
|
6,836
|
6,416
|
19,752
|
17,538
|
|||||||||
Income
taxes
|
17,402
|
16,541
|
43,055
|
46,425
|
|||||||||
Total
operating expenses and taxes
|
122,343
|
123,081
|
358,207
|
360,650
|
|||||||||
OPERATING
INCOME
|
23,197
|
20,259
|
56,099
|
59,928
|
|||||||||
OTHER
INCOME (net of income taxes)
|
549
|
745
|
623
|
2,287
|
|||||||||
NET
INTEREST CHARGES:
|
|||||||||||||
Interest
expense
|
2,371
|
1,911
|
7,477
|
7,434
|
|||||||||
Allowance
for
borrowed funds used during construction
|
(1,665
|
)
|
(1,271
|
)
|
(4,508
|
)
|
(3,197
|
)
|
|||||
Net
interest
charges
|
706
|
640
|
2,969
|
4,237
|
|||||||||
NET
INCOME
|
23,040
|
20,364
|
53,753
|
57,978
|
|||||||||
PREFERRED
STOCK DIVIDEND REQUIREMENTS
|
156
|
639
|
1,534
|
1,919
|
|||||||||
EARNINGS
ON COMMON STOCK
|
$
|
22,884
|
$
|
19,725
|
$
|
52,219
|
$
|
56,059
|
|||||
STATEMENTS
OF COMPREHENSIVE INCOME
|
|||||||||||||
NET
INCOME
|
$
|
23,040
|
$
|
20,364
|
$
|
53,753
|
$
|
57,978
|
|||||
OTHER
COMPREHENSIVE INCOME
|
-
|
-
|
-
|
-
|
|||||||||
TOTAL
COMPREHENSIVE INCOME
|
$
|
23,040
|
$
|
20,364
|
$
|
53,753
|
$
|
57,978
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
Pennsylvania
Power Company are an integral part of these statements.
|
|||||||||||||
|
PENNSYLVANIA
POWER COMPANY
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(Unaudited)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
UTILITY
PLANT:
|
|||||||
In
service
|
$
|
907,382
|
$
|
866,303
|
|||
Less
-
Accumulated provision for depreciation
|
378,707
|
356,020
|
|||||
528,675
|
510,283
|
||||||
Construction
work in progress -
|
|||||||
Electric
plant
|
133,790
|
104,366
|
|||||
Nuclear
fuel
|
10,428
|
3,362
|
|||||
144,218
|
107,728
|
||||||
672,893
|
618,011
|
||||||
OTHER
PROPERTY AND INVESTMENTS:
|
|||||||
Nuclear
plant
decommissioning trusts
|
146,706
|
143,062
|
|||||
Long-term
notes receivable from associated companies
|
32,864
|
32,985
|
|||||
Other
|
502
|
722
|
|||||
180,072
|
176,769
|
||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash
equivalents
|
24
|
38
|
|||||
Notes
receivable from associated companies
|
566
|
431
|
|||||
Receivables
-
|
|||||||
Customers
(less accumulated provisions of $1,066,000 and $888,000,
|
|||||||
respectively,
for uncollectible accounts)
|
44,990
|
44,282
|
|||||
Associated
companies
|
6,206
|
23,016
|
|||||
Other
|
2,617
|
1,656
|
|||||
Materials
and
supplies, at average cost
|
37,974
|
37,923
|
|||||
Prepayments
and other
|
12,110
|
8,924
|
|||||
104,487
|
116,270
|
||||||
DEFERRED
CHARGES
|
10,721
|
10,106
|
|||||
$
|
968,173
|
$
|
921,156
|
||||
CAPITALIZATION
AND LIABILITIES
|
|||||||
CAPITALIZATION:
|
|||||||
Common
stockholder's equity -
|
|||||||
Common
stock,
$30 par value, authorized 6,500,000 shares -
|
|||||||
6,290,000
shares outstanding
|
$
|
188,700
|
$
|
188,700
|
|||
Other
paid-in
capital
|
65,035
|
64,690
|
|||||
Accumulated
other comprehensive loss
|
(13,706
|
)
|
(13,706
|
)
|
|||
Retained
earnings
|
131,914
|
87,695
|
|||||
Total
common
stockholder's equity
|
371,943
|
327,379
|
|||||
Preferred
stock
|
14,105
|
39,105
|
|||||
Long-term
debt
and other long-term obligations
|
121,170
|
133,887
|
|||||
507,218
|
500,371
|
||||||
CURRENT
LIABILITIES:
|
|||||||
Currently
payable long-term debt
|
25,774
|
26,524
|
|||||
Short-term
borrowings -
|
|||||||
Associated
companies
|
34,821
|
11,852
|
|||||
Accounts
payable -
|
|||||||
Associated
companies
|
16,864
|
46,368
|
|||||
Other
|
1,884
|
1,436
|
|||||
Accrued
taxes
|
26,163
|
14,055
|
|||||
Accrued
interest
|
1,635
|
1,872
|
|||||
Other
|
8,491
|
8,802
|
|||||
115,632
|
110,909
|
||||||
NONCURRENT
LIABILITIES:
|
|||||||
Accumulated
deferred income taxes
|
79,801
|
93,418
|
|||||
Asset
retirement obligation
|
155,959
|
138,284
|
|||||
Retirement
benefits
|
51,389
|
49,834
|
|||||
Regulatory
liabilities
|
47,809
|
18,454
|
|||||
Other
|
10,365
|
9,886
|
|||||
345,323
|
309,876
|
||||||
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
|||||||
$
|
968,173
|
$
|
921,156
|
||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
Pennsylvania
Power Company are an integral part of these balance
sheets.
|
|||||||
|
PENNSYLVANIA
POWER COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||
Net
income
|
$
|
23,040
|
$
|
20,364
|
$
|
53,753
|
$
|
57,978
|
|||||
Adjustments
to reconcile net income to net cash from
|
|||||||||||||
operating
activities -
|
|||||||||||||
Provision
for depreciation
|
3,847
|
3,556
|
11,351
|
10,390
|
|||||||||
Amortization
of regulatory assets
|
9,784
|
9,979
|
29,499
|
30,082
|
|||||||||
Nuclear
fuel and other amortization
|
4,634
|
4,550
|
12,912
|
13,546
|
|||||||||
Deferred
income taxes and investment tax credits, net
|
(2,612
|
)
|
(501
|
)
|
(7,567
|
)
|
(2,852
|
)
|
|||||
Pension
trust contribution
|
-
|
(12,934
|
)
|
-
|
(12,934
|
)
|
|||||||
Decrease
(increase) in operating assets -
|
|||||||||||||
Receivables
|
4,303
|
(30,285
|
)
|
15,141
|
(10,551
|
)
|
|||||||
Materials
and
supplies
|
755
|
(1,078
|
)
|
(51
|
)
|
(3,374
|
)
|
||||||
Prepayments
and other current assets
|
5,074
|
4,164
|
(3,186
|
)
|
(3,977
|
)
|
|||||||
Increase
(decrease) in operating liabilities -
|
|||||||||||||
Accounts
payable
|
(9,161
|
)
|
40,306
|
(29,056
|
)
|
21,678
|
|||||||
Accrued
taxes
|
5
|
(2,485
|
)
|
12,108
|
2,301
|
||||||||
Accrued
interest
|
(353
|
)
|
(986
|
)
|
(237
|
)
|
(2,415
|
)
|
|||||
Other
|
564
|
1,353
|
1,027
|
5,294
|
|||||||||
Net
cash
provided from operating activities
|
39,880
|
36,003
|
95,694
|
105,166
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||
New
Financing
-
|
|||||||||||||
Short-term
borrowings, net
|
-
|
-
|
22,969
|
10,789
|
|||||||||
Equity
contribution from parent
|
-
|
25,000
|
-
|
25,000
|
|||||||||
Redemptions
and Repayments -
|
|||||||||||||
Preferred
stock
|
-
|
-
|
(37,750
|
)
|
-
|
||||||||
Long-term
debt
|
(39
|
)
|
(20,508
|
)
|
(849
|
)
|
(63,297
|
)
|
|||||
Short-term
borrowings, net
|
(10,776
|
)
|
(11,414
|
)
|
-
|
-
|
|||||||
Dividend
Payments -
|
|||||||||||||
Common
stock
|
-
|
-
|
(8,000
|
)
|
(23,000
|
)
|
|||||||
Preferred
stock
|
(156
|
)
|
(639
|
)
|
(1,534
|
)
|
(1,919
|
)
|
|||||
Net
cash used
for financing activities
|
(10,971
|
)
|
(7,561
|
)
|
(25,164
|
)
|
(52,427
|
)
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||
Property
additions
|
(28,537
|
)
|
(24,670
|
)
|
(69,630
|
)
|
(56,080
|
)
|
|||||
Contributions
to nuclear decommissioning trusts
|
(399
|
)
|
(399
|
)
|
(1,196
|
)
|
(1,196
|
)
|
|||||
Loan
repayments from (loans to) associated companies
|
(187
|
)
|
(36
|
)
|
(14
|
)
|
5,975
|
||||||
Other
|
214
|
(3,337
|
)
|
296
|
(1,440
|
)
|
|||||||
Net
cash used
for investing activities
|
(28,909
|
)
|
(28,442
|
)
|
(70,544
|
)
|
(52,741
|
)
|
|||||
Net
change in
cash and cash equivalents
|
-
|
-
|
(14
|
)
|
(2
|
)
|
|||||||
Cash
and cash
equivalents at beginning of period
|
24
|
38
|
38
|
40
|
|||||||||
Cash
and cash
equivalents at end of period
|
$
|
24
|
$
|
38
|
$
|
24
|
$
|
38
|
|||||
|
|||||||||||||
The
preceding
Notes to Consolidated Financial Statements as they relate to
Pennsylvania
Power Company are an integral part of these statements.
|
|||||||||||||
|
|
Three
|
|
Nine
|
|
|||
Changes
in KWH Sales
|
|
Months
|
|
Months
|
|
||
Increase
(Decrease)
|
|
|
|
|
|
||
Electric
Generation:
|
|
|
|
|
|
||
Retail
|
|
|
10.2
|
%
|
|
5.0
|
%
|
Wholesale
|
|
|
(1.4
|
)%
|
|
(5.5
|
)%
|
Total
Electric Generation Sales
|
|
|
3.1
|
%
|
|
(1.4
|
)%
|
|
|
|
|
|
|
|
|
Distribution
Deliveries:
|
|
|
|
|
|
|
|
Residential
|
|
|
7.6
|
%
|
|
8.0
|
%
|
Commercial
|
|
|
4.0
|
%
|
|
5.6
|
%
|
Industrial
|
|
|
19.8
|
%
|
|
1.5
|
%
|
Total
Distribution Deliveries
|
|
|
10.2
|
%
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
Three
|
|
Nine
|
|
|||
Operating
Expenses and Taxes - Changes
|
|
Months
|
|
Months
|
|
||
|
(In
millions)
|
|
|||||
Increase
(Decrease)
|
|
|
|
|
|
||
Fuel
costs
|
|
$
|
-
|
|
$
|
(1
|
)
|
Purchased
power costs
|
|
|
(2
|
)
|
|
(4
|
)
|
Nuclear
operating costs
|
|
|
(3
|
)
|
|
1
|
|
Other
operating costs
|
|
|
3
|
|
|
3
|
|
General
taxes
|
|
|
-
|
|
|
2
|
|
Income
taxes
|
|
|
1
|
|
(3
|
)
|
|
Net
decrease in operating expenses and taxes
|
|
$
|
(1
|
)
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Operating
Cash Flows
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Cash
earnings
(1)
|
|
$
|
40
|
|
$
|
34
|
|
$
|
101
|
|
$
|
108
|
|
Pension
trust
contribution(2)
|
-
|
(8
|
)
|
-
|
(8
|
)
|
|||||||
Working
capital and other
|
|
|
-
|
|
10
|
|
(5
|
)
|
|
5
|
|||
Total
cash
flows from operating activities
|
|
$
|
40
|
|
$
|
36
|
|
$
|
96
|
|
$
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Cash
earnings is a non-GAAP measure (see reconciliation below).
(2)
Pension
trust contribution net of $5 million of income tax
benefits.
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Reconciliation
of Cash Earnings
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net
income
(GAAP)
|
|
$
|
23
|
|
$
|
20
|
|
$
|
54
|
|
$
|
58
|
|
Non-cash
charges (credits):
|
|
|
|
|
|
|
|
|
|
||||
Provision
for
depreciation
|
|
|
4
|
|
|
4
|
|
|
11
|
|
|
10
|
|
Amortization
of regulatory assets
|
|
|
10
|
|
|
10
|
|
|
29
|
|
|
30
|
|
Nuclear
fuel
and other amortization
|
|
|
5
|
|
|
4
|
|
|
13
|
|
|
14
|
|
Deferred
income taxes and investment tax credits, net
|
|
|
(3
|
)
|
|
(5
|
)
|
|
(8
|
)
|
|
(8
|
)
|
Other
non-cash items
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
4
|
|
Cash
earnings
(Non-GAAP)
|
|
$
|
40
|
|
$
|
34
|
|
$
|
101
|
|
$
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement of APB
Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion
No.
29”
|
JERSEY
CENTRAL POWER & LIGHT COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
STATEMENTS
OF INCOME
|
|||||||||||||
OPERATING
REVENUES
|
$
|
900,247
|
$
|
706,613
|
$
|
2,024,630
|
$
|
1,754,402
|
|||||
OPERATING
EXPENSES AND TAXES:
|
|||||||||||||
Purchased
power
|
517,212
|
387,282
|
1,115,737
|
943,757
|
|||||||||
Other
operating costs
|
112,690
|
91,516
|
293,996
|
259,176
|
|||||||||
Provision
for
depreciation
|
19,659
|
18,435
|
59,721
|
56,603
|
|||||||||
Amortization
of regulatory assets
|
84,388
|
84,271
|
223,012
|
216,705
|
|||||||||
Deferral
of
new regulatory assets
|
-
|
-
|
(27,765
|
)
|
-
|
||||||||
General
taxes
|
19,538
|
17,901
|
49,802
|
48,571
|
|||||||||
Income
taxes
|
55,729
|
35,099
|
110,578
|
70,555
|
|||||||||
Total
operating expenses and taxes
|
809,216
|
634,504
|
1,825,081
|
1,595,367
|
|||||||||
OPERATING
INCOME
|
91,031
|
72,109
|
199,549
|
159,035
|
|||||||||
OTHER
INCOME (net of income taxes)
|
3,014
|
1,996
|
3,331
|
4,603
|
|||||||||
NET
INTEREST CHARGES:
|
|||||||||||||
Interest
on
long-term debt
|
18,162
|
21,709
|
56,843
|
62,240
|
|||||||||
Allowance
for
borrowed funds used during construction
|
(497
|
)
|
(169
|
)
|
(1,337
|
)
|
(440
|
)
|
|||||
Deferred
interest
|
(1,069
|
)
|
(871
|
)
|
(2,896
|
)
|
(2,685
|
)
|
|||||
Other
interest expense
|
2,283
|
1,105
|
5,262
|
1,958
|
|||||||||
Net
interest
charges
|
18,879
|
21,774
|
57,872
|
61,073
|
|||||||||
NET
INCOME
|
75,166
|
52,331
|
145,008
|
102,565
|
|||||||||
PREFERRED
STOCK DIVIDEND REQUIREMENTS
|
125
|
125
|
375
|
375
|
|||||||||
EARNINGS
ON COMMON STOCK
|
$
|
75,041
|
$
|
52,206
|
$
|
144,633
|
$
|
102,190
|
|||||
STATEMENTS
OF COMPREHENSIVE INCOME
|
|||||||||||||
NET
INCOME
|
$
|
75,166
|
$
|
52,331
|
$
|
145,008
|
$
|
102,565
|
|||||
OTHER
COMPREHENSIVE INCOME:
|
|||||||||||||
Unrealized
gain on derivative hedges
|
102
|
173
|
208
|
217
|
|||||||||
Unrealized
loss on available for sale securities
|
-
|
-
|
-
|
(8
|
)
|
||||||||
Other
comprehensive income
|
102
|
173
|
208
|
209
|
|||||||||
Income
tax
expense (benefit) related to other comprehensive income
|
42
|
(1,542
|
)
|
85
|
(1,546
|
)
|
|||||||
Other
comprehensive income, net of tax
|
60
|
1,715
|
123
|
1,755
|
|||||||||
TOTAL
COMPREHENSIVE INCOME
|
$
|
75,226
|
$
|
54,046
|
$
|
145,131
|
$
|
104,320
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate
to Jersey
Central Power & Light Company are an integral part of these
statements.
|
JERSEY
CENTRAL POWER & LIGHT COMPANY
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(Unaudited)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
UTILITY
PLANT:
|
|||||||
In
service
|
$
|
3,840,213
|
$
|
3,730,767
|
|||
Less
-
Accumulated provision for depreciation
|
1,424,801
|
1,380,775
|
|||||
2,415,412
|
2,349,992
|
||||||
Construction
work in progress
|
85,335
|
75,012
|
|||||
2,500,747
|
2,425,004
|
||||||
OTHER
PROPERTY AND INVESTMENTS:
|
|||||||
Nuclear
plant
decommissioning trusts
|
143,937
|
138,205
|
|||||
Nuclear
fuel
disposal trust
|
164,070
|
159,696
|
|||||
Long-term
notes receivable from associated companies
|
19,751
|
20,436
|
|||||
Other
|
16,597
|
19,379
|
|||||
344,355
|
337,716
|
||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash
equivalents
|
571
|
162
|
|||||
Receivables
-
|
|||||||
Customers
(less accumulated provisions of $4,264,000 and $3,881,000,
|
|||||||
respectively,
for uncollectible accounts)
|
313,730
|
201,415
|
|||||
Associated
companies
|
1,171
|
86,531
|
|||||
Other
(less
accumulated provisions of $239,000 and $162,000,
|
|||||||
respectively,
for uncollectible accounts)
|
38,569
|
39,898
|
|||||
Materials
and
supplies, at average cost
|
1,863
|
2,435
|
|||||
Prepayments
and other
|
33,254
|
31,489
|
|||||
389,158
|
361,930
|
||||||
DEFERRED
CHARGES:
|
|||||||
Regulatory
assets
|
2,310,532
|
2,176,520
|
|||||
Goodwill
|
1,983,699
|
1,985,036
|
|||||
Other
|
2,850
|
4,978
|
|||||
4,297,081
|
4,166,534
|
||||||
$
|
7,531,341
|
$
|
7,291,184
|
||||
CAPITALIZATION
AND LIABILITIES
|
|||||||
CAPITALIZATION:
|
|||||||
Common
stockholder's equity -
|
|||||||
Common
stock,
$10 par value, authorized 16,000,000 shares -
|
|||||||
15,371,270
shares outstanding
|
$
|
153,713
|
$
|
153,713
|
|||
Other
paid-in
capital
|
3,014,600
|
3,013,912
|
|||||
Accumulated
other comprehensive loss
|
(55,411
|
)
|
(55,534
|
)
|
|||
Retained
earnings
|
104,904
|
43,271
|
|||||
Total
common
stockholder's equity
|
3,217,806
|
3,155,362
|
|||||
Preferred
stock
|
12,649
|
12,649
|
|||||
Long-term
debt
and other long-term obligations
|
1,017,478
|
1,238,984
|
|||||
4,247,933
|
4,406,995
|
||||||
CURRENT
LIABILITIES:
|
|||||||
Currently
payable long-term debt
|
167,045
|
16,866
|
|||||
Notes
payable
-
|
|||||||
Associated
companies
|
114,932
|
248,532
|
|||||
Accounts
payable -
|
|||||||
Associated
companies
|
8,968
|
20,605
|
|||||
Other
|
162,583
|
124,733
|
|||||
Accrued
taxes
|
78,342
|
2,626
|
|||||
Accrued
interest
|
23,535
|
10,359
|
|||||
Other
|
152,638
|
65,130
|
|||||
708,043
|
488,851
|
||||||
NONCURRENT
LIABILITIES:
|
|||||||
Power
purchase
contract loss liability
|
1,410,659
|
1,268,478
|
|||||
Accumulated
deferred income taxes
|
670,514
|
645,741
|
|||||
Nuclear
fuel
disposal costs
|
173,591
|
169,884
|
|||||
Asset
retirement obligation
|
76,002
|
72,655
|
|||||
Retirement
benefits
|
100,567
|
103,036
|
|||||
Other
|
144,032
|
135,544
|
|||||
2,575,365
|
2,395,338
|
||||||
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
|||||||
$
|
7,531,341
|
$
|
7,291,184
|
||||
The
preceding
Notes to Consolidated Financial Statements as they relate
to Jersey
Central Power & Light Company are an integral
part
of these blance sheets.
|
|||||||
|
JERSEY
CENTRAL POWER & LIGHT COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||
Net
income
|
$
|
75,166
|
$
|
52,331
|
$
|
145,008
|
$
|
102,565
|
|||||
Adjustments
to reconcile net income to net cash from
|
|||||||||||||
operating
activities -
|
|||||||||||||
Provision
for
depreciation
|
19,659
|
18,436
|
59,721
|
56,603
|
|||||||||
Amortization
of regulatory assets
|
84,388
|
84,269
|
223,012
|
216,704
|
|||||||||
Deferral
of
new regulatory assets
|
-
|
-
|
(27,765
|
)
|
-
|
||||||||
Deferred
purchased power and other costs
|
(42,381
|
)
|
(77,162
|
)
|
(168,646
|
)
|
(155,552
|
)
|
|||||
Deferred
income taxes and investment tax credits, net
|
(11,222
|
)
|
6,165
|
5,204
|
(13,582
|
)
|
|||||||
Accrued
retirement benefit obligation
|
813
|
2,888
|
(2,468
|
)
|
(5,880
|
)
|
|||||||
Accrued
compensation, net
|
671
|
1,547
|
(4,077
|
)
|
731
|
||||||||
NUG
power
contract restructuring
|
-
|
-
|
-
|
52,800
|
|||||||||
Cash
collateral from suppliers
|
76,978
|
-
|
76,978
|
-
|
|||||||||
Pension
trust
contribution
|
-
|
(62,499
|
)
|
-
|
(62,499
|
)
|
|||||||
Decrease
(increase) in operating assets -
|
|||||||||||||
Receivables
|
(39,897
|
)
|
(34,749
|
)
|
(25,626
|
)
|
(26,906
|
)
|
|||||
Materials
and
supplies
|
395
|
64
|
572
|
411
|
|||||||||
Prepayments
and other current assets
|
64,761
|
34,664
|
(1,764
|
)
|
(5,040
|
)
|
|||||||
Increase
(decrease) in operating liabilities -
|
|||||||||||||
Accounts
payable
|
(5,873
|
)
|
57,485
|
26,214
|
58,430
|
||||||||
Accrued
taxes
|
18,498
|
(27,924
|
)
|
75,716
|
35,844
|
||||||||
Accrued
interest
|
13,765
|
16,709
|
13,176
|
11,481
|
|||||||||
Other
|
6,928
|
27,603
|
23,982
|
8,539
|
|||||||||
Net
cash
provided from operating activities
|
262,649
|
99,827
|
419,237
|
274,649
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||
New
Financing-
|
|||||||||||||
Long-term
debt
|
-
|
-
|
-
|
300,000
|
|||||||||
Redemptions
and Repayments-
|
|||||||||||||
Long-term
debt
|
(4,321
|
)
|
(7,082
|
)
|
(67,648
|
)
|
(304,150
|
)
|
|||||
Short-term
borrowings, net
|
(164,172
|
)
|
(456
|
)
|
(133,600
|
)
|
(72,648
|
)
|
|||||
Dividend
Payments-
|
|||||||||||||
Common
stock
|
(43,000
|
)
|
(40,000
|
)
|
(83,000
|
)
|
(60,000
|
)
|
|||||
Preferred
stock
|
(125
|
)
|
(125
|
)
|
(375
|
)
|
(375
|
)
|
|||||
Net
cash used
for financing activities
|
(211,618
|
)
|
(47,663
|
)
|
(284,623
|
)
|
(137,173
|
)
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||
Property
additions
|
(50,837
|
)
|
(52,507
|
)
|
(133,498
|
)
|
(135,932
|
)
|
|||||
Loan
repayments from (loans to) associated companies, net
|
15
|
(711
|
)
|
685
|
(1,122
|
)
|
|||||||
Other
|
(50
|
)
|
1,049
|
(1,392
|
)
|
(416
|
)
|
||||||
Net
cash used
for investing activities
|
(50,872
|
)
|
(52,169
|
)
|
(134,205
|
)
|
(137,470
|
)
|
|||||
Net
increase
(decrease) in cash and cash equivalents
|
159
|
(5
|
)
|
409
|
6
|
||||||||
Cash
and cash
equivalents at beginning of period
|
412
|
282
|
162
|
271
|
|||||||||
Cash
and cash
equivalents at end of period
|
$
|
571
|
$
|
277
|
$
|
571
|
$
|
277
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate
to Jersey
Central Power & Light Company are an integral part of these
statements.
|
|||||||||||||
|
|||||||||||||
|
Three
|
|
Nine
|
|
|||
Changes
in KWH Sales
|
|
Months
|
|
Months
|
|
||
Increase
(Decrease)
|
|
|
|
|
|
||
Electric
Generation:
|
|
|
|
|
|
||
Retail
|
|
|
17.2
|
%
|
|
13.4
|
%
|
Wholesale
|
|
|
5.5
|
%
|
|
(8.5
|
)%
|
Total
Electric Generation Sales
|
|
|
14.8
|
%
|
|
8.2
|
%
|
|
|
|
|
|
|
|
|
Distribution
Deliveries:
|
|
|
|
|
|
|
|
Residential
|
|
|
15.6
|
%
|
|
7.4
|
%
|
Commercial
|
|
|
13.4
|
%
|
|
6.7
|
%
|
Industrial
|
|
|
5.4
|
%
|
|
0.4
|
%
|
Total
Distribution Deliveries
|
|
|
13.4
|
%
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
Nine
|
|
||
Operating
Expenses and Taxes - Changes
|
|
Months
|
|
Months
|
|
||
|
|
(In
millions)
|
|
||||
Increase
(Decrease)
|
|
|
|
|
|
||
Purchased
power costs
|
|
$
|
130
|
|
$
|
172
|
|
Other
operating costs
|
|
|
21
|
|
35
|
|
|
Provision
for
depreciation
|
|
|
1
|
|
|
3
|
|
Amortization
of regulatory assets
|
|
|
-
|
|
|
7
|
|
Deferral
of
new regulatory assets
|
|
|
-
|
|
(28
|
)
|
|
General
taxes
|
2
|
1
|
|||||
Income
taxes
|
|
|
21
|
|
|
40
|
|
Net
increase in operating expenses and taxes
|
|
$
|
175
|
|
$
|
230
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Operating
Cash Flows
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Cash
earnings
(1)
|
|
$
|
204
|
|
$
|
64
|
|
$
|
307
|
|
$
|
177
|
|
Pension
trust
contribution (2)
|
-
|
(37
|
)
|
-
|
(37
|
)
|
|||||||
Working
capital and other
|
|
|
58
|
|
|
73
|
|
|
112
|
|
|
135
|
|
Total
cash
flows from operating activities
|
|
$
|
262
|
|
$
|
100
|
|
$
|
419
|
|
$
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Cash earnings is a non-GAAP measure (see reconciliation
below).
(2)
Pension trust contribution net of $25 million of income tax
benefits.
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Reconciliation
of Cash Earnings
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net
income
(GAAP)
|
|
$
|
75
|
|
$
|
52
|
|
$
|
145
|
|
$
|
103
|
|
Non-cash
charges (credits):
|
|
|
|
|
|
|
|
|
|
||||
Provision
for
depreciation
|
|
|
20
|
|
|
18
|
|
|
60
|
|
|
57
|
|
Amortization
of regulatory assets
|
|
|
84
|
|
|
84
|
|
|
223
|
|
|
217
|
|
Deferral
of
new regulatory assets
|
-
|
-
|
(28
|
)
|
-
|
||||||||
Deferred
purchased power and other costs
|
|
|
(42
|
)
|
|
(77
|
)
|
|
(169
|
)
|
|
(156
|
)
|
Deferred
income taxes & investment tax credits, net
|
|
|
(11
|
)
|
|
(19
|
)
|
|
5
|
|
|
(39
|
)
|
Other
non-cash items
|
|
|
78
|
|
|
6
|
|
|
71
|
|
|
(5
|
)
|
Cash
earnings
(Non-GAAP)
|
|
$
|
204
|
|
$
|
64
|
|
$
|
307
|
|
$
|
177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sources
of Information
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair
Value by Contract Year
|
|
|
|
2005(1)
|
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
Thereafter
|
|
Total
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Prices
based
on external sources(2)
|
|
|
|
|
$
|
3
|
|
$
|
2
|
|
$
|
3
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
8
|
|
Prices
based
on models
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
6
|
|
Total
|
|
|
|
|
$
|
3
|
|
$
|
2
|
|
$
|
3
|
|
$
|
2
|
|
$
|
2
|
|
$
|
2
|
|
$
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For
the last quarter of 2005.
(2) Broker
quote sheets.
|
EITF
Issue No. 05-6, "Determining the Amortization Period for
Leasehold
Improvements Purchased after Lease Inception or Acquired
in a Business
Combination"
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement
of APB Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion
No.
29”
|
METROPOLITAN
EDISON COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
OPERATING
REVENUES
|
$
|
333,180
|
$
|
285,419
|
$
|
892,097
|
$
|
788,361
|
|||||
OPERATING
EXPENSES AND TAXES:
|
|||||||||||||
Purchased
power
|
186,148
|
146,938
|
467,911
|
421,660
|
|||||||||
Other
operating costs
|
81,774
|
50,141
|
192,892
|
130,210
|
|||||||||
Provision
for
depreciation
|
9,323
|
10,648
|
32,221
|
30,370
|
|||||||||
Amortization
of regulatory assets
|
32,853
|
30,291
|
86,760
|
78,737
|
|||||||||
General
taxes
|
19,906
|
18,680
|
56,201
|
53,103
|
|||||||||
Income
taxes
|
(2,111
|
)
|
8,448
|
9,754
|
17,179
|
||||||||
Total
operating expenses and taxes
|
327,893
|
265,146
|
845,739
|
731,259
|
|||||||||
OPERATING
INCOME
|
5,287
|
20,273
|
46,358
|
57,102
|
|||||||||
OTHER
INCOME (net of income taxes)
|
6,459
|
6,888
|
19,897
|
18,530
|
|||||||||
NET
INTEREST CHARGES:
|
|||||||||||||
Interest
on
long-term debt
|
8,941
|
8,823
|
27,886
|
31,208
|
|||||||||
Allowance
for
borrowed funds used during construction
|
(150
|
)
|
(65
|
)
|
(401
|
)
|
(208
|
)
|
|||||
Other
interest expense
|
1,950
|
1,326
|
5,626
|
2,846
|
|||||||||
Net
interest
charges
|
10,741
|
10,084
|
33,111
|
33,846
|
|||||||||
NET
INCOME
|
1,005
|
17,077
|
33,144
|
41,786
|
|||||||||
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|||||||||||||
Unrealized
gain (loss) on derivative hedges
|
84
|
84
|
252
|
(3,182
|
)
|
||||||||
Unrealized
gain (loss) on available for sale securities
|
67
|
-
|
67
|
(53
|
)
|
||||||||
Other
comprehensive income (loss)
|
151
|
84
|
319
|
(3,235
|
)
|
||||||||
Income
tax
expense (benefit) related to other comprehensive income
|
62
|
(1,314
|
)
|
132
|
(1,342
|
)
|
|||||||
Other
comprehensive income (loss), net of tax
|
89
|
1,398
|
187
|
(1,893
|
)
|
||||||||
TOTAL
COMPREHENSIVE INCOME
|
$
|
1,094
|
$
|
18,475
|
$
|
33,331
|
$
|
39,893
|
|||||
The
preceding
Notes to Consolidated Financial Statements as they relate
to Metropolitan
Edison Company are an integral part of these statements.
|
|||||||||||||
|
METROPOLITAN
EDISON COMPANY
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(Unaudited)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
UTILITY
PLANT:
|
|||||||
In
service
|
$
|
1,841,450
|
$
|
1,800,569
|
|||
Less
-
Accumulated provision for depreciation
|
712,549
|
709,895
|
|||||
1,128,901
|
1,090,674
|
||||||
Construction
work in progress
|
7,458
|
21,735
|
|||||
1,136,359
|
1,112,409
|
||||||
OTHER
PROPERTY AND INVESTMENTS:
|
|||||||
Nuclear
plant
decommissioning trusts
|
229,437
|
216,951
|
|||||
Long-term
notes receivable from associated companies
|
11,162
|
10,453
|
|||||
Other
|
29,355
|
34,767
|
|||||
269,954
|
262,171
|
||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash
equivalents
|
120
|
120
|
|||||
Notes
receivable from associated companies
|
15,793
|
18,769
|
|||||
Receivables
-
|
|||||||
Customers
(less accumulated provisions of $4,320,000 and $4,578,000,
|
|||||||
respectively,
for uncollectible accounts)
|
131,213
|
119,858
|
|||||
Associated
companies
|
1,401
|
118,245
|
|||||
Other
|
7,684
|
15,493
|
|||||
Prepayments
and other
|
13,285
|
11,057
|
|||||
169,496
|
283,542
|
||||||
DEFERRED
CHARGES:
|
|||||||
Goodwill
|
867,649
|
869,585
|
|||||
Regulatory
assets
|
571,745
|
693,133
|
|||||
Other
|
24,055
|
24,438
|
|||||
1,463,449
|
1,587,156
|
||||||
$
|
3,039,258
|
$
|
3,245,278
|
||||
CAPITALIZATION
AND LIABILITIES
|
|||||||
CAPITALIZATION:
|
|||||||
Common
stockholder's equity -
|
|||||||
Common
stock,
without par value, authorized 900,000 shares -
|
|||||||
859,500
shares
outstanding
|
$
|
1,290,296
|
$
|
1,289,943
|
|||
Accumulated
other comprehensive loss
|
(43,303
|
)
|
(43,490
|
)
|
|||
Retained
earnings
|
28,110
|
38,966
|
|||||
Total
common
stockholder's equity
|
1,275,103
|
1,285,419
|
|||||
Long-term
debt
and other long-term obligations
|
594,116
|
701,736
|
|||||
1,869,219
|
1,987,155
|
||||||
CURRENT
LIABILITIES:
|
|||||||
Currently
payable long-term debt
|
100,000
|
30,435
|
|||||
Short-term
borrowings -
|
|||||||
Associated
companies
|
76,755
|
80,090
|
|||||
Other
|
-
|
-
|
|||||
Accounts
payable -
|
|||||||
Associated
companies
|
39,505
|
88,879
|
|||||
Other
|
30,966
|
26,097
|
|||||
Accrued
taxes
|
2,247
|
11,957
|
|||||
Accrued
interest
|
9,462
|
11,618
|
|||||
Other
|
20,008
|
23,076
|
|||||
278,943
|
272,152
|
||||||
NONCURRENT
LIABILITIES:
|
|||||||
Accumulated
deferred income taxes
|
309,979
|
305,389
|
|||||
Accumulated
deferred investment tax credits
|
10,250
|
10,868
|
|||||
Power
purchase
contract loss liability
|
250,024
|
349,980
|
|||||
Asset
retirement obligation
|
139,216
|
132,887
|
|||||
Retirement
benefits
|
77,501
|
82,218
|
|||||
Nuclear
fuel
disposal costs
|
39,213
|
38,408
|
|||||
Other
|
64,913
|
66,221
|
|||||
891,096
|
985,971
|
||||||
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
|||||||
$
|
3,039,258
|
$
|
3,245,278
|
||||
The
preceding
Notes to Consolidated Financial Statements as they relate
to Metropolitan
Edison Company are an integral part of these balance
sheets.
|
|||||||
|
|||||||
METROPOLITAN
EDISON COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||
Net
income
|
$
|
1,005
|
$
|
17,077
|
$
|
33,144
|
$
|
41,786
|
|||||
Adjustments
to reconcile net income to net cash from
|
|||||||||||||
operating
activities -
|
|||||||||||||
Provision
for
depreciation
|
9,323
|
10,648
|
32,221
|
30,370
|
|||||||||
Amortization
of regulatory assets
|
32,853
|
30,291
|
86,760
|
78,737
|
|||||||||
Deferred
costs recoverable as regulatory assets
|
8,521
|
(15,629
|
)
|
(21,491
|
)
|
(45,616
|
)
|
||||||
Deferred
income taxes and investment tax credits, net
|
(8,438
|
)
|
666
|
(10,336
|
)
|
(4,853
|
)
|
||||||
Accrued
retirement benefit obligation
|
(1,514
|
)
|
(273
|
)
|
(4,717
|
)
|
492
|
||||||
Accrued
compensation, net
|
1,527
|
649
|
211
|
201
|
|||||||||
Pension
trust
contribution
|
-
|
(38,823
|
)
|
-
|
(38,823
|
)
|
|||||||
Decrease
(increase) in operating assets -
|
|||||||||||||
Receivables
|
3,088
|
(2,599
|
)
|
113,298
|
29,943
|
||||||||
Materials
and
supplies
|
(1
|
)
|
5
|
(19
|
)
|
41
|
|||||||
Prepayments
and other current assets
|
18,978
|
14,298
|
(2,209
|
)
|
(15,027
|
)
|
|||||||
Increase
(decrease) in operating liabilities -
|
|||||||||||||
Accounts
payable
|
6,088
|
(12,536
|
)
|
(44,505
|
)
|
(17,857
|
)
|
||||||
Accrued
taxes
|
(4,526
|
)
|
(145
|
)
|
(9,710
|
)
|
(6,255
|
)
|
|||||
Accrued
interest
|
(1,269
|
)
|
(3,006
|
)
|
(2,156
|
)
|
(127
|
)
|
|||||
Other
|
(7,701
|
)
|
(7,356
|
)
|
(24,063
|
)
|
(9,581
|
)
|
|||||
Net
cash
provided from (used for) operating activities
|
57,934
|
(6,733
|
)
|
146,428
|
43,431
|
||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||
New
Financing-
|
|||||||||||||
Long-term
debt
|
-
|
-
|
-
|
247,607
|
|||||||||
Short-term
borrowings, net
|
-
|
70,000
|
-
|
4,665
|
|||||||||
Redemptions
and Repayments-
|
|||||||||||||
Long-term
debt
|
-
|
(45,936
|
)
|
(37,830
|
)
|
(196,371
|
)
|
||||||
Short-term
borrowings, net
|
(24,266
|
)
|
-
|
(3,335
|
)
|
-
|
|||||||
Dividend
Payments-
|
|||||||||||||
Common
stock
|
(10,000
|
)
|
(10,000
|
)
|
(44,000
|
)
|
(35,000
|
)
|
|||||
Net
cash
provided from (used for) financing activities
|
(34,266
|
)
|
14,064
|
(85,165
|
)
|
20,901
|
|||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||
Property
additions
|
(21,680
|
)
|
(12,390
|
)
|
(56,075
|
)
|
(33,733
|
)
|
|||||
Contributions
to nuclear decommissioning trusts
|
(2,370
|
)
|
(2,371
|
)
|
(7,112
|
)
|
(7,113
|
)
|
|||||
Loan
repayments from (loans to) associated companies, net
|
(1,072
|
)
|
17,989
|
2,267
|
(13,046
|
)
|
|||||||
Other
|
1,454
|
(10,559
|
)
|
(343
|
)
|
(10,441
|
)
|
||||||
Net
cash
provided used for investing activities
|
(23,668
|
)
|
(7,331
|
)
|
(61,263
|
)
|
(64,333
|
)
|
|||||
Net
change in
cash and cash equivalents
|
-
|
-
|
-
|
(1
|
)
|
||||||||
Cash
and cash
equivalents at beginning of period
|
120
|
120
|
120
|
121
|
|||||||||
Cash
and cash
equivalents at end of period
|
$
|
120
|
$
|
120
|
$
|
120
|
$
|
120
|
|||||
|
|||||||||||||
The
preceding
Notes to Consolidated Financial Statements as they relate
to Metropolitan
Edison Company are an integral part of these statements.
|
|
Three
|
|
Nine
|
|
|||
Changes
in KWH Sales
|
|
Months
|
|
Months
|
|
||
Increase
(Decrease)
|
|
|
|
|
|
||
Retail
Electric Generation:
|
|
|
|
|
|
||
Residential
|
|
|
15.5
|
%
|
|
7.6
|
%
|
Commercial
|
|
|
10.1
|
%
|
|
7.6
|
%
|
Industrial
|
|
|
9.1
|
%
|
|
17.0
|
%
|
Total
Retail Electric Generation Sales
|
|
|
11.9
|
%
|
|
9.9
|
%
|
Distribution
Deliveries:
|
|
|
|
|
|
||
Residential
|
|
|
15.5
|
%
|
|
7.5
|
%
|
Commercial
|
|
|
10.0
|
%
|
|
6.7
|
%
|
Industrial
|
|
|
3.2
|
%
|
|
1.9
|
%
|
Total
Distribution Deliveries
|
|
|
10.0
|
%
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
Three
|
Nine
|
||||||
Operating
Expenses and Taxes - Changes
|
Months
|
Months
|
|||||
|
(In
millions)
|
|
|||||
Increase
(Decrease)
|
|||||||
Purchased
power costs
|
|
$
|
39
|
|
$
|
46
|
|
Other
operating costs
|
|
|
32
|
|
62
|
||
Provision
for
depreciation
|
|
|
(1
|
)
|
|
2
|
|
Amortization
of regulatory assets
|
|
|
3
|
|
|
8
|
|
General
taxes
|
1
|
3
|
|||||
Income
taxes
|
(11
|
) |
(7
|
) | |||
Net
increase in operating expenses and taxes
|
|
$
|
63
|
|
$
|
114
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Operating
Cash Flows
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Cash
earnings
(1)
|
|
$
|
43
|
|
$
|
27
|
|
$
|
116
|
|
$
|
85
|
|
Pension
trust
contribution (2)
|
-
|
(23
|
)
|
-
|
(23
|
)
|
|||||||
Working
capital and other
|
|
|
15
|
|
|
(11
|
)
|
|
30
|
|
|
(19
|
)
|
Total
cash
flows from operating activities
|
|
$
|
58
|
|
$
|
(7
|
)
|
$
|
146
|
|
$
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Cash
earnings is a non-GAAP measure (see reconciliation below).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Pension
trust
contribution net of $16 million of income tax benefits.
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Reconciliation
of Cash Earnings
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net
income
(GAAP)
|
|
$
|
1
|
|
$
|
17
|
|
$
|
33
|
|
$
|
42
|
|
Non-cash
charges (credits):
|
|
|
|
|
|
|
|
|
|
||||
Provision
for
depreciation
|
|
|
9
|
|
|
11
|
|
|
32
|
|
|
30
|
|
Amortization
of regulatory assets
|
|
|
33
|
|
|
30
|
|
|
87
|
|
|
79
|
|
Deferred
costs recoverable as regulatory assets
|
|
|
8
|
|
|
(16
|
)
|
|
(22
|
)
|
|
(46
|
)
|
Deferred
income taxes and investment tax credits, net
|
|
|
(8
|
)
|
|
(16
|
)
|
|
(10
|
)
|
|
(21
|
)
|
Other
non-cash charges
|
|
|
-
|
|
|
1
|
|
|
(4
|
)
|
|
1
|
|
Cash
earnings
(Non-GAAP)
|
|
$
|
43
|
|
$
|
27
|
|
$
|
116
|
|
$
|
85
|
|
Sources
of Information -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair
Value by Contract Year
|
|
|
|
2005(1)
|
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
Thereafter
|
|
Total
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Prices
based
on external sources(2)
|
|
|
|
|
$
|
5
|
|
$
|
5
|
|
$
|
5
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
15
|
|
Prices
based
on models
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5
|
|
|
4
|
|
|
4
|
|
|
13
|
|
Total
|
|
|
|
|
$
|
5
|
|
$
|
5
|
|
$
|
5
|
|
$
|
5
|
|
$
|
4
|
|
$
|
4
|
|
$
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For
the
last quarter of 2005.
(2) Broker
quote sheets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EITF
Issue No. 05-6, "Determining the Amortization Period
for Leasehold
Improvements Purchased after Lease Inception or Acquired
in a Business
Combination"
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement
of APB Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB
Opinion No.
29”
|
PENNSYLVANIA
ELECTRIC COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
OPERATING
REVENUES
|
$
|
290,451
|
$
|
254,339
|
$
|
846,477
|
$
|
752,986
|
|||||
OPERATING
EXPENSES AND TAXES:
|
|||||||||||||
Purchased
power
|
178,090
|
137,146
|
467,639
|
432,974
|
|||||||||
Other
operating costs
|
66,417
|
37,100
|
183,024
|
122,988
|
|||||||||
Provision
for
depreciation
|
12,736
|
12,281
|
37,721
|
35,229
|
|||||||||
Amortization
of regulatory assets
|
12,627
|
11,759
|
38,930
|
39,130
|
|||||||||
General
taxes
|
17,552
|
16,913
|
51,892
|
50,795
|
|||||||||
Income
taxes
|
(3,101
|
)
|
11,693
|
14,991
|
16,000
|
||||||||
Total
operating expenses and taxes
|
284,321
|
226,892
|
794,197
|
697,116
|
|||||||||
OPERATING
INCOME
|
6,130
|
27,447
|
52,280
|
55,870
|
|||||||||
OTHER
INCOME (net of income taxes)
|
1,057
|
1,300
|
1,477
|
1,663
|
|||||||||
NET
INTEREST CHARGES:
|
|||||||||||||
Interest
on
long-term debt
|
7,305
|
7,513
|
22,187
|
22,528
|
|||||||||
Allowance
for
borrowed funds used during construction
|
(285
|
)
|
(60
|
)
|
(674
|
)
|
(192
|
)
|
|||||
Deferred
interest
|
-
|
-
|
-
|
190
|
|||||||||
Other
interest
expense
|
2,536
|
3,058
|
7,392
|
8,063
|
|||||||||
Net
interest
charges
|
9,556
|
10,511
|
28,905
|
30,589
|
|||||||||
NET
INCOME (LOSS)
|
(2,369
|
)
|
18,236
|
24,852
|
26,944
|
||||||||
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|||||||||||||
Unrealized
gain (loss) on derivative hedges
|
17
|
17
|
49
|
(618
|
)
|
||||||||
Unrealized
gain (loss) on available for sale securities
|
18
|
7
|
(3
|
)
|
(3
|
)
|
|||||||
Other
comprehensive income (loss)
|
35
|
24
|
46
|
(621
|
)
|
||||||||
Income
tax
expense (benefit) related to other comprehensive income
|
20
|
(256
|
)
|
20
|
(258
|
)
|
|||||||
Other
comprehensive income (loss), net of tax
|
15
|
280
|
26
|
(363
|
)
|
||||||||
TOTAL
COMPREHENSIVE INCOME (LOSS)
|
$
|
(2,354
|
)
|
$
|
18,516
|
$
|
24,878
|
$
|
26,581
|
||||
The
preceding
Notes to Consolidated Financial Statements as they
relate to Pennsylvania
Electric Company are an integral part of these statements.
|
|||||||||||||
|
PENNSYLVANIA
ELECTRIC COMPANY
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(Unaudited)
|
|||||||
September
30,
|
December
31,
|
||||||
2005
|
2004
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
UTILITY
PLANT:
|
|||||||
In
service
|
$
|
2,004,891
|
$
|
1,981,846
|
|||
Less
-
Accumulated provision for depreciation
|
772,818
|
776,904
|
|||||
1,232,073
|
1,204,942
|
||||||
Construction
work in progress
|
23,622
|
22,816
|
|||||
1,255,695
|
1,227,758
|
||||||
OTHER
PROPERTY AND INVESTMENTS:
|
|||||||
Nuclear
plant
decommissioning trusts
|
111,826
|
109,620
|
|||||
Non-utility
generation trusts
|
97,473
|
95,991
|
|||||
Long-term
notes receivable from associated companies
|
15,629
|
14,001
|
|||||
Other
|
14,855
|
18,746
|
|||||
239,783
|
238,358
|
||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash
equivalents
|
35
|
36
|
|||||
Notes
receivable from associated companies
|
-
|
7,352
|
|||||
Receivables
-
|
|||||||
Customers
(less accumulated provisions of $4,095,000 and $4,712,000,
|
|||||||
respectively,
for uncollectible accounts)
|
120,580
|
121,112
|
|||||
Associated
companies
|
6,339
|
97,528
|
|||||
Other
|
7,369
|
12,778
|
|||||
Prepayments
and other
|
15,818
|
7,198
|
|||||
150,141
|
246,004
|
||||||
DEFERRED
CHARGES:
|
|||||||
Goodwill
|
886,559
|
888,011
|
|||||
Regulatory
assets
|
99,491
|
200,173
|
|||||
Other
|
13,234
|
13,448
|
|||||
999,284
|
1,101,632
|
||||||
$
|
2,644,903
|
$
|
2,813,752
|
||||
CAPITALIZATION
AND LIABILITIES
|
|||||||
CAPITALIZATION:
|
|||||||
Common
stockholder's equity-
|
|||||||
Common
stock,
$20 par value, authorized 5,400,000 shares -
|
|||||||
5,290,596
shares outstanding
|
$
|
105,812
|
$
|
105,812
|
|||
Other
paid-in
capital
|
1,206,358
|
1,205,948
|
|||||
Accumulated
other comprehensive loss
|
(52,787
|
)
|
(52,813
|
)
|
|||
Retained
earnings
|
38,920
|
46,068
|
|||||
Total
common
stockholder's equity
|
1,298,303
|
1,305,015
|
|||||
Long-term
debt
and other long-term obligations
|
478,954
|
481,871
|
|||||
1,777,257
|
1,786,886
|
||||||
CURRENT
LIABILITIES:
|
|||||||
Currently
payable long-term debt
|
4
|
8,248
|
|||||
Short-term
borrowings -
|
|||||||
Associated
companies
|
114,749
|
241,496
|
|||||
Other
|
75,000
|
-
|
|||||
Accounts
payable -
|
|||||||
Associated
companies
|
30,456
|
56,154
|
|||||
Other
|
35,987
|
25,960
|
|||||
Accrued
taxes
|
19,234
|
7,999
|
|||||
Accrued
interest
|
15,289
|
9,695
|
|||||
Other
|
19,264
|
23,750
|
|||||
309,983
|
373,302
|
||||||
NONCURRENT
LIABILITIES:
|
|||||||
Power
purchase
contract loss liability
|
259,675
|
382,548
|
|||||
Retirement
benefits
|
121,251
|
118,247
|
|||||
Asset
retirement obligation
|
69,608
|
66,443
|
|||||
Accumulated
deferred income taxes
|
56,029
|
37,318
|
|||||
Other
|
51,100
|
49,008
|
|||||
557,663
|
653,564
|
||||||
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
|||||||
$
|
2,644,903
|
$
|
2,813,752
|
||||
The
preceding
Notes to Consolidated Financial Statements as they
relate to Pennsylvania
Electric Company are an integral part of these
balance
sheets.
|
|||||||
|
PENNSYLVANIA
ELECTRIC COMPANY
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||||||||
(Unaudited)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
September
30,
|
September
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
(In
thousands)
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||
Net
income
(loss)
|
$
|
(2,369
|
)
|
$
|
18,236
|
$
|
24,852
|
$
|
26,944
|
||||
Adjustments
to
reconcile net income (loss) to net cash from
|
|||||||||||||
operating
activities -
|
|||||||||||||
Provision
for
depreciation
|
12,736
|
12,281
|
37,721
|
35,229
|
|||||||||
Amortization
of regulatory assets
|
12,627
|
11,759
|
38,930
|
39,130
|
|||||||||
Deferred
costs
recoverable as regulatory assets
|
(5,355
|
)
|
(25,618
|
)
|
(41,301
|
)
|
(62,122
|
)
|
|||||
Deferred
income taxes and investment tax credits, net
|
(5,412
|
)
|
28,574
|
(2,765
|
)
|
30,308
|
|||||||
Accrued
retirement benefit obligations
|
1,100
|
1,164
|
3,005
|
4,805
|
|||||||||
Accrued
compensation, net
|
691
|
894
|
(1,695
|
)
|
2,271
|
||||||||
Pension
trust
contribution
|
-
|
(50,281
|
)
|
-
|
(50,281
|
)
|
|||||||
Decrease
(increase) in operating assets -
|
|||||||||||||
Receivables
|
17,528
|
(17,689
|
)
|
97,130
|
35,806
|
||||||||
Prepayments and other current assets
|
13,487
|
9,703
|
(8,620
|
)
|
(25,247
|
)
|
|||||||
Increase
(decrease) in operating liabilities -
|
|||||||||||||
Accounts payable
|
4,662
|
(23,255
|
)
|
(15,671
|
)
|
(38,015
|
)
|
||||||
Accrued taxes
|
507
|
2
|
11,235
|
(7,572
|
)
|
||||||||
Accrued interest
|
5,628
|
5,605
|
5,594
|
2,856
|
|||||||||
Other
|
(1,460
|
)
|
562
|
2,905
|
24,851
|
||||||||
Net cash provided from (used for) operating
activities
|
54,370
|
(28,063
|
)
|
151,320
|
18,963
|
||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||
New
Financing
-
|
|||||||||||||
Long-term
debt
|
-
|
-
|
-
|
150,000
|
|||||||||
Short-term
borrowings, net
|
-
|
158,282
|
-
|
165,918
|
|||||||||
Redemptions
and Repayments -
|
|||||||||||||
Long-term
debt
|
(8,013
|
)
|
(103,241
|
)
|
(11,534
|
)
|
(228,453
|
)
|
|||||
Short-term
borrowings, net
|
(15,139
|
)
|
-
|
(51,747
|
)
|
-
|
|||||||
Dividend
Payments -
|
|||||||||||||
Common
stock
|
(2,000
|
)
|
(3,000
|
)
|
(32,000
|
)
|
(8,000
|
)
|
|||||
Net
cash provided from (used for) financing activities
|
(25,152
|
)
|
52,041
|
(95,281
|
)
|
79,465
|
|||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||
Property
additions
|
(27,997
|
)
|
(10,192
|
)
|
(61,680
|
)
|
(33,428
|
)
|
|||||
Non-utility
generation trust contribution
|
-
|
-
|
-
|
(50,614
|
)
|
||||||||
Loan
repayments from (loans to) associated companies, net
|
(1,287
|
)
|
(3,124
|
)
|
5,724
|
(3,144
|
)
|
||||||
Other,
net
|
66
|
(10,662
|
)
|
(84
|
)
|
(11,242
|
)
|
||||||
Net
cash
used for investing activities
|
(29,218
|
)
|
(23,978
|
)
|
(56,040
|
)
|
(98,428
|
)
|
|||||
Net
change in
cash and cash equivalents
|
-
|
-
|
(1
|
)
|
-
|
||||||||
Cash
and cash
equivalents at beginning of period
|
35
|
36
|
36
|
36
|
|||||||||
Cash
and cash
equivalents at end of period
|
$
|
35
|
$
|
36
|
$
|
35
|
$
|
36
|
|||||
|
|||||||||||||
The
preceding
Notes to Consolidated Financial Statements as they
relate to Pennsylvania
Electric Company are an integral part of these statements.
|
|||||||||||||
|
|
Three
|
|
Nine
|
|
|||
Changes
in KWH Sales
|
|
Months
|
|
Months
|
|
||
Increase
(Decrease)
|
|
|
|
|
|
||
Retail
Electric Generation:
|
|
|
|
|
|||
Residential
|
|
|
8.8
|
%
|
|
4.2
|
%
|
Commercial
|
|
|
7.0
|
%
|
|
4.3
|
%
|
Industrial
|
|
|
17.0
|
%
|
|
7.3
|
%
|
Total
Retail Electric Generation Sales
|
|
|
10.2
|
%
|
|
5.1
|
%
|
Distribution
Deliveries:
|
|
|
|
|
|
||
Residential
|
|
|
8.7
|
%
|
|
4.1
|
%
|
Commercial
|
|
|
6.6
|
%
|
|
4.1
|
%
|
Industrial
|
|
|
8.3
|
%
|
|
5.2
|
%
|
Total
Distribution Deliveries
|
|
|
7.8
|
%
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
Three
|
Nine
|
||||||
Operating
Expenses and Taxes - Changes
|
Months
|
Months
|
|||||
(In
millions)
|
|||||||
Increase
(Decrease)
|
|
|
|
|
|
||
Purchased
power costs
|
|
$
|
41
|
|
$
|
35
|
|
Other
operating costs
|
|
|
29
|
|
60
|
||
Provision
for
depreciation
|
|
|
-
|
|
|
2
|
|
Amortization
of regulatory assets
|
|
|
1
|
|
|
-
|
|
General
taxes
|
1
|
1
|
|||||
Income
taxes
|
(15
|
)
|
(1
|
)
|
|||
Net
increase in operating expenses and taxes
|
|
$
|
57
|
|
$
|
97
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Operating
Cash Flows
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Cash
earnings
(1)
|
|
$
|
14
|
|
$
|
27
|
|
$
|
59
|
|
$
|
56
|
|
Pension
trust
contribution (2)
|
-
|
(30
|
)
|
-
|
(30
|
)
|
|||||||
Working
capital and other
|
|
|
40
|
|
|
(25
|
)
|
|
92
|
|
|
(7
|
)
|
Total
cash
flows from operating activities
|
|
$
|
54
|
|
$
|
(28
|
)
|
$
|
151
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|||||||||
|
|
September
30,
|
|
September
30,
|
|
||||||||
Reconciliation
of Cash Earnings
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
(In
millions)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||
Net
income
(loss) (GAAP)
|
|
$
|
(2
|
)
|
$
|
18
|
|
$
|
25
|
|
$
|
27
|
|
Non-cash
charges (credits):
|
|
|
|
|
|
|
|
|
|
||||
Provision
for
depreciation
|
|
|
13
|
|
|
12
|
|
|
38
|
|
|
35
|
|
Amortization
of regulatory assets
|
|
|
12
|
|
|
12
|
|
|
39
|
|
|
39
|
|
Deferred
costs recoverable as regulatory assets
|
|
|
(5
|
)
|
|
(26
|
)
|
|
(41
|
)
|
|
(62
|
)
|
Deferred
income taxes and investment tax credits, net
|
|
|
(6
|
)
|
|
9
|
|
|
(3
|
)
|
|
10
|
|
Other
non-cash items
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
7
|
|
Cash
earnings
(Non-GAAP)
|
|
$
|
14
|
|
$
|
27
|
|
$
|
59
|
|
$
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sources
of Information
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair
Value by Contract Year
|
|
|
|
2005(1)
|
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
Thereafter
|
|
Total
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Prices
based
on external sources(2)
|
|
|
|
|
$
|
3
|
|
$
|
3
|
|
$
|
2
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
8
|
|
Prices
based
on models
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
6
|
|
Total
|
|
|
|
|
$
|
3
|
|
$
|
3
|
|
$
|
2
|
|
$
|
2
|
|
$
|
2
|
|
$
|
2
|
|
$
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For
the
last quarter of 2005.
(2) Broker
quote sheets.
|
EITF
Issue No. 05-6, "Determining the Amortization Period for
Leasehold
Improvements Purchased after Lease Inception or Acquired
in a Business
Combination"
|
SFAS
154
- “Accounting Changes and Error Corrections - a replacement
of APB Opinion
No. 20 and FASB Statement No.
3”
|
SFAS
153,
“Exchanges of Nonmonetary Assets - an amendment of APB Opinion
No.
29”
|
Maximum
Number
|
|||||||||||||
(or
Approximate
|
|||||||||||||
Total
Number of
|
Dollar
Value) of
|
||||||||||||
Shares
Purchased
|
Shares
that May
|
||||||||||||
Total
Number
|
As
Part of Publicly
|
Yet
Be Purchased
|
|||||||||||
of
Shares
|
Average
Price
|
Announced
Plans
|
Under
the Plans
|
||||||||||
Period
|
Purchased
(a)
|
Paid
per Share
|
or
Programs (b)
|
or
Programs
|
|||||||||
July
1-31,
2005
|
219,344
|
$
|
49.40
|
-
|
-
|
||||||||
August
1-31,
2005
|
698,858
|
$
|
49.46
|
-
|
-
|
||||||||
September
1-30, 2005
|
489,705
|
$
|
51.69
|
-
|
-
|
||||||||
Third
quarter
2005
|
1,407,907
|
$
|
50.23
|
-
|
-
|
(a)
|
Share
amounts
reflect purchases on the open market to satisfy FirstEnergy's
obligations
to deliver common stock under its Executive and Director
Incentive
Compensation Plan, Deferred Compensation Plan for Outside
Directors,
Executive Deferred Compensation Plan, Savings Plan and Stock
Investment
Plan. In addition, such amounts reflect shares tendered by
employees to
pay the exercise price or withholding taxes upon exercise
of stock options
granted under the Executive and Director Incentive Compensation
Plan.
|
(b)
|
FirstEnergy
does not currently have any publicly announced plan or program
for share
purchases.
|
Exhibit
|
||
Number
|
||
JCP&L
|
||
12
|
Fixed
charge
ratios
|
|
31.2
|
Certification
of chief financial officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
|
31.3
|
Certification
of chief executive officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
|
32.2
|
Certification
of chief executive officer and chief financial officer, pursuant
to 18
U.S.C. Section 1350.
|
|
Met-Ed
|
||
10.1 | Notice of Termination Tolling Agreement, Restated Partial Requirements Agreement | |
12
|
Fixed
charge
ratios
|
|
31.1
|
Certification
of chief executive officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
|
31.2
|
Certification
of chief financial officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
|
32.1
|
Certification
of chief executive officer and chief financial officer, pursuant
to 18
U.S.C. Section 1350.
|
|
Penelec
|
||
10.1 | Notice of Termination Tolling Agreement, Restated Partial Requirements Agreement | |
12
|
Fixed
charge
ratios
|
|
15
|
Letter
from
independent registered public accounting firm
|
|
31.1
|
Certification
of chief executive officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
|
31.2
|
Certification
of chief financial officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
|
32.1
|
Certification
of chief executive officer and chief financial officer, pursuant
to 18
U.S.C. Section 1350.
|
FirstEnergy
|
|||
10.1 | Notice of Termination Tolling Agreement, Restated Partial Requirements Agreement | ||
10.2
|
Agreement
by
and between FirstEnergy Generation Corp. and Bechtel Power
Corporation
dated August 26, 2005.*
|
||
15
|
Letter
from
independent registered public accounting firm
|
||
31.1
|
Certification
of chief executive officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
31.2
|
Certification
of chief financial officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
32.1
|
Certification
of chief executive officer and chief financial officer, pursuant
to 18
U.S.C. Section 1350.
|
||
OE
|
|||
15
|
Letter
from
independent registered public accounting firm
|
||
31.1
|
Certification
of chief executive officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
31.2
|
Certification
of chief financial officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
32.1
|
Certification
of chief executive officer and chief financial officer, pursuant
to 18
U.S.C. Section 1350.
|
||
Penn
|
|||
15
|
Letter
from
independent registered public accounting firm.
|
||
31.1
|
Certification
of chief executive officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
31.2
|
Certification
of chief financial officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
32.1
|
Certification
of chief executive officer and chief financial officer, pursuant
to 18
U.S.C. Section 1350.
|
||
CEI
|
|||
31.1
|
Certification
of chief executive officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
31.2
|
Certification
of chief financial officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
32.1
|
Certification
of chief executive officer and chief financial officer, pursuant
to 18
U.S.C. Section 1350.
|
||
TE
|
|||
31.1
|
Certification
of chief executive officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
31.2
|
Certification
of chief financial officer, as adopted pursuant to Rule
13a-15(e)/15d-15(e).
|
||
32.1
|
Certification
of chief executive officer and chief financial officer, pursuant
to 18
U.S.C. Section 1350.
|
FIRSTENERGY
CORP.
|
|
Registrant
|
|
OHIO
EDISON COMPANY
|
|
Registrant
|
|
THE
CLEVELAND ELECTRIC
|
|
ILLUMINATING
COMPANY
|
|
Registrant
|
|
THE
TOLEDO EDISON COMPANY
|
|
Registrant
|
|
PENNSYLVANIA
POWER COMPANY
|
|
Registrant
|
|
JERSEY
CENTRAL POWER & LIGHT COMPANY
|
|
Registrant
|
|
METROPOLITAN
EDISON COMPANY
|
|
Registrant
|
|
PENNSYLVANIA
ELECTRIC COMPANY
|
|
Registrant
|
/s/ Harvey
L.
Wagner
|
|
Harvey L. Wagner
|
|
Vice President, Controller
|
|
and
Chief Accounting Officer
|