Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of derivatives instruments

The following tables summarize the fair value of derivative instruments on FirstEnergy’s Consolidated Balance Sheets:

Derivatives not designated as hedging instruments:
Derivative Assets					Derivative Liabilities
	Fair Value					Fair Value
	March 31, 2012		December 31, 2011			March 31, 2012			December 31, 2011
	(In millions)					(In millions)
Power Contracts					Power Contracts
Current Assets	$	300	$	185	Current Liabilities	$	(282	)	$	(196	)
Noncurrent Assets	115		79		Noncurrent Liabilities	(66		)	(51		)
FTRs					FTRs
Current Assets	1		1		Current Liabilities	(15		)	(22		)
Noncurrent Assets	—		—		Noncurrent Liabilities	—			(1		)
NUGs	42		56		NUGs	(342		)	(349		)
Other					Other
Current Assets	1		—		Current Liabilities	(2		)	—
Noncurrent Assets	—		—		Noncurrent Liabilities	—			—
Total Derivatives Assets	$	459	$	321	Total Derivatives Liabilities	$	(707	)	$	(619	)

Volume of First Energy's outstanding derivative transactions

The following table summarizes the volumes associated with FirstEnergy’s outstanding derivative transactions as of March 31, 2012:

	Purchases	Sales	Net		Units
	(In millions)
Power Contracts	33	47	(14	)	MWH
FTRs	17	—	17		MWH
NUGs	23	—	23		MWH
Natural Gas Futures	11	—	11		Million British Thermal Units

Effect of derivative instruments on statements of income and comprehensive income

The effect of derivative instruments on the Consolidated Statements of Income during the three months ended March 31, 2012 and 2011, are summarized in the following tables:

	Three Months Ended March 31
	Power Contracts			FTRs			Other			Total
	(In millions)
Derivatives in a Hedging Relationship
2012
Gain (Loss) Recognized in AOCI (Effective Portion)	$	(5	)	$	—		$	—		$	(5	)
2011
Gain (Loss) Recognized in AOCI (Effective Portion)	$	(9	)	$	—		$	—		$	(9	)
Effective Gain (Loss) Reclassified to:
Purchased Power Expense	16			—			—			16
Revenues	(12		)	—			—			(12		)
Fuel Expense	—			—			—			—
Derivatives Not in a Hedging Relationship
2012
Unrealized Gain (Loss) Recognized in:
Purchased Power Expense	$	—		$	—		$	—		$	—
Other Operating Expense	55			5			(2		)	58
Realized Gain (Loss) Reclassified to:
Purchased Power Expense	(117		)	—			—			(117		)
Revenues	112			6			—			118
Other Operating Expense	—			(24		)	—			(24		)
2011
Unrealized Gain (Loss) Recognized in:
Purchased Power Expense	$	29		$	—		$	—		$	29
Other Operating Expense	(20		)	1			1			(18		)
Realized Gain (Loss) Reclassified to:
Purchased Power Expense	(37		)	—			—			(37		)
Revenue	10			3			(1		)	12
Other Operating Expense	—			(15		)	—			(15		)

Reconciliation of changes in the fair value of certain contracts that are deferred

The following table provides a reconciliation of changes in the fair value of certain contracts that are deferred for future recovery from (or credit to) customers during the three months ended March 31, 2012 and 2011:

	Three Months Ended March 31
Derivatives Not in a Hedging Relationship with Regulatory Offset(1)	NUGs			Other			Total
	(In millions)
Outstanding net asset (liability) as of January 1, 2012	$	(293	)	$	(8	)	$	(301	)
Additions/Change in value of existing contracts	(79		)	(1		)	(80		)
Settled contracts	72			4			76
Outstanding net asset (liability) as of March 31, 2012	$	(300	)	$	(5	)	$	(305	)
Outstanding net asset (liability) as of January 1, 2011	$	(345	)	$	10		$	(335	)
Additions/Change in value of existing contracts	(89		)	—			(89		)
Settled contracts	72			(10		)	62
Outstanding net asset (liability) as of March 31, 2011	$	(362	)	$	—		$	(362	)

⁽¹⁾  Changes in the fair value of certain contracts are deferred for future recovery from (or credited to) customers.