Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2014

Supplemental Guarantor Information [Abstract]

Condensed Consolidating Statements of Income and Comprehensive Income

FIRSTENERGY SOLUTIONS CORP.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
For the Three Months Ended September 30, 2014	FES			FG			NG			Eliminations			Consolidated
	(In millions)
REVENUES	$	1,481		$	477		$	592		$	(1,029	)	$	1,521
OPERATING EXPENSES:
Fuel	—			216			54			—			270
Purchased power from affiliates	1,026			—			64			(1,026		)	64
Purchased power from non-affiliates	627			—			—			—			627
Other operating expenses	178			59			106			13			356
Provision for depreciation	2			30			52			(1		)	83
General taxes	17			7			7			—			31
Total operating expenses	1,850			312			283			(1,014		)	1,431
OPERATING INCOME (LOSS)	(369		)	165			309			(15		)	90
OTHER INCOME (EXPENSE):
Loss on debt redemptions	—			—			(1		)	—			(1		)
Investment income	2			3			13			(5		)	13
Miscellaneous income (expense), including net income from equity investees	289			(2		)	—			(286		)	1
Interest expense — affiliates	(3		)	(2		)	—			4			(1		)
Interest expense — other	(13		)	(26		)	(14		)	16			(37		)
Capitalized interest	—			2			5			—			7
Total other income (expense)	275			(25		)	3			(271		)	(18		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (BENEFITS)	(94		)	140			312			(286		)	72
INCOME TAXES (BENEFITS)	(138		)	49			117			—			28
INCOME FROM CONTINUING OPERATIONS	44			91			195			(286		)	44
Discontinued operations (Note 14)	—			—			—			—			—
NET INCOME	$	44		$	91		$	195		$	(286	)	$	44
STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$	44		$	91		$	195		$	(286	)	$	44
OTHER COMPREHENSIVE LOSS:
Pensions and OPEB prior service costs	(4		)	(4		)	—			4			(4		)
Amortized gain on derivative hedges	(2		)	—			—			—			(2		)
Change in unrealized gain on available-for-sale securities	(9		)	—			(9		)	9			(9		)
Other comprehensive loss	(15		)	(4		)	(9		)	13			(15		)
Income tax benefits on other comprehensive loss	(6		)	(2		)	(3		)	5			(6		)
Other comprehensive loss, net of tax	(9		)	(2		)	(6		)	8			(9		)
COMPREHENSIVE INCOME	$	35		$	89		$	189		$	(278	)	$	35

FIRSTENERGY SOLUTIONS CORP.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
For the Nine Months Ended September 30, 2014	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME (LOSS)
REVENUES	$	4,690		$	1,297		$	1,391		$	(2,576	)	$	4,802
OPERATING EXPENSES:
Fuel	—			776			147			—			923
Purchased power from affiliates	2,573			—			203			(2,573		)	203
Purchased power from non-affiliates	2,270			4			—			—			2,274
Other operating expenses	648			200			391			37			1,276
Provision for depreciation	6			89			143			(2		)	236
General taxes	56			24			19			—			99
Total operating expenses	5,553			1,093			903			(2,538		)	5,011
OPERATING INCOME (LOSS)	(863		)	204			488			(38		)	(209		)
OTHER INCOME (EXPENSE):
Loss on debt redemptions	(3		)	(1		)	(2		)	—			(6		)
Investment income	5			6			57			(11		)	57
Miscellaneous income, including net income from equity investees	551			1			—			(547		)	5
Interest expense — affiliates	(8		)	(5		)	(2		)	10			(5		)
Interest expense — other	(41		)	(75		)	(40		)	46			(110		)
Capitalized interest	—			3			24			—			27
Total other income (expense)	504			(71		)	37			(502		)	(32		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (BENEFITS)	(359		)	133			525			(540		)	(241		)
INCOME TAXES (BENEFITS)	(327		)	41			188			3			(95		)
INCOME (LOSS) FROM CONTINUING OPERATIONS	(32		)	92			337			(543		)	(146		)
Discontinued operations (net of income taxes of $70) (Note 14)	—			116			—			—			116
NET INCOME (LOSS)	$	(32	)	$	208		$	337		$	(543	)	$	(30	)
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
NET INCOME (LOSS)	$	(32	)	$	208		$	337		$	(543	)	$	(30	)
OTHER COMPREHENSIVE INCOME (LOSS):
Pensions and OPEB prior service costs	(14		)	(13		)	—			13			(14		)
Amortized gain on derivative hedges	(7		)	—			—			—			(7		)
Change in unrealized gain on available-for-sale securities	35			—			35			(35		)	35
Other comprehensive income (loss)	14			(13		)	35			(22		)	14
Income taxes (benefits) on other comprehensive income (loss)	5			(5		)	13			(8		)	5
Other comprehensive income (loss), net of tax	9			(8		)	22			(14		)	9
COMPREHENSIVE INCOME (LOSS)	$	(23	)	$	200		$	359		$	(557	)	$	(21	)

FIRSTENERGY SOLUTIONS CORP.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
For the Three Months Ended September 30, 2013	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME
REVENUES	$	1,654		$	528		$	440		$	(943	)	$	1,679
OPERATING EXPENSES:
Fuel	—			249			55			—			304
Purchased power from affiliates	1,009			—			65			(942		)	132
Purchased power from non-affiliates	720			4			—			—			724
Other operating expenses	147			65			114			13			339
Provision for depreciation	1			33			46			—			80
General taxes	21			9			5			—			35
Total operating expenses	1,898			360			285			(929		)	1,614
OPERATING INCOME (LOSS)	(244		)	168			155			(14		)	65
OTHER INCOME (EXPENSE):
Investment income (loss)	2			—			(1		)	(4		)	(3		)
Miscellaneous income, including net income from equity investees	180			19			—			(178		)	21
Interest expense — affiliates	(3		)	(2		)	(1		)	5			(1		)
Interest expense — other	(13		)	(24		)	(13		)	15			(35		)
Capitalized interest	—			1			8			—			9
Total other income (expense)	166			(6		)	(7		)	(162		)	(9		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (BENEFITS)	(78		)	162			148			(176		)	56
INCOME TAXES (BENEFITS)	(118		)	111			28			2			23
INCOME FROM CONTINUING OPERATIONS	40			51			120			(178		)	33
Discontinued operations (net of income taxes of $5) (Note 14)	—			7			—			—			7
NET INCOME	$	40		$	58		$	120		$	(178	)	$	40
STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$	40		$	58		$	120		$	(178	)	$	40
OTHER COMPREHENSIVE INCOME (LOSS):
Pensions and OPEB prior service costs	(5		)	(5		)	—			5			(5		)
Amortized gain on derivative hedges	(1		)	—			—			—			(1		)
Change in unrealized gain on available for sale securities	5			—			5			(5		)	5
Other comprehensive income (loss)	(1		)	(5		)	5			—			(1		)
Income taxes (benefits) on other comprehensive income (loss)	(1		)	(2		)	3			(1		)	(1		)
Other comprehensive income (loss), net of tax	—			(3		)	2			1			—
COMPREHENSIVE INCOME	$	40		$	55		$	122		$	(177	)	$	40

FIRSTENERGY SOLUTIONS CORP.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
For the Nine Months Ended September 30, 2013	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME (LOSS)
REVENUES	$	4,575		$	1,612		$	1,337		$	(2,869	)	$	4,655
OPERATING EXPENSES:
Fuel	—			782			154			—			936
Purchased power from affiliates	3,072			—			197			(2,868		)	401
Purchased power from non-affiliates	1,749			6			—			—			1,755
Other operating expenses	484			208			376			37			1,105
Provision for depreciation	4			96			134			(3		)	231
General taxes	60			28			18			—			106
Total operating expenses	5,369			1,120			879			(2,834		)	4,534
OPERATING INCOME (LOSS)	(794		)	492			458			(35		)	121
OTHER INCOME (EXPENSE):
Loss on debt redemptions	(103		)	—			—			—			(103		)
Investment income	4			—			3			(11		)	(4		)
Miscellaneous income, including net income from equity investees	543			23			—			(537		)	29
Interest expense — affiliates	(10		)	(4		)	(5		)	12			(7		)
Interest expense — other	(50		)	(79		)	(42		)	45			(126		)
Capitalized interest	1			1			26			—			28
Total other income (expense)	385			(59		)	(18		)	(491		)	(183		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (BENEFITS)	(409		)	433			440			(526		)	(62		)
INCOME TAXES (BENEFITS)	(380		)	215			138			8			(19		)
INCOME (LOSS) FROM CONTINUING OPERATIONS	(29		)	218			302			(534		)	(43		)
Discontinued operations (net of income taxes of $8) Note (14)	—			14			—			—			14
NET INCOME (LOSS)	$	(29	)	$	232		$	302		$	(534	)	$	(29	)
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
NET INCOME (LOSS)	$	(29	)	$	232		$	302		$	(534	)	$	(29	)
OTHER COMPREHENSIVE INCOME (LOSS):
Pensions and OPEB prior service costs	(16		)	(15		)	—			15			(16		)
Amortized gain on derivative hedges	(3		)	—			—			—			(3		)
Change in unrealized gain on available-for-sale securities	2			—			2			(2		)	2
Other comprehensive income (loss)	(17		)	(15		)	2			13			(17		)
Income taxes (benefits) on other comprehensive income (loss)	(7		)	(6		)	1			5			(7		)
Other comprehensive income (loss), net of tax	(10		)	(9		)	1			8			(10		)
COMPREHENSIVE INCOME (LOSS)	$	(39	)	$	223		$	303		$	(526	)	$	(39	)

Condensed Consolidating Balance Sheets

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)

As of September 30, 2014	FES		FG		NG		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	2	$	—	$	—		$	2
Receivables-
Customers	445		—		—		—			445
Affiliated companies	408		339		538		(797		)	488
Other	61		21		32		—			114
Notes receivable from affiliated companies	408		769		364		(1,327		)	214
Materials and supplies	59		194		218		—			471
Derivatives	168		—		—		—			168
Collateral	218		—		—		—			218
Prepayments and other	43		54		1		—			98
	1,810		1,379		1,153		(2,124		)	2,218
PROPERTY, PLANT AND EQUIPMENT:
In service	128		6,195		7,805		(383		)	13,745
Less — Accumulated provision for depreciation	34		2,032		3,211		(190		)	5,087
	94		4,163		4,594		(193		)	8,658
Construction work in progress	6		146		536		—			688
	100		4,309		5,130		(193		)	9,346
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,381		—			1,381
Investment in affiliated companies	6,345		—		—		(6,345		)	—
Other	—		11		—		—			11
	6,345		11		1,381		(6,345		)	1,392
DEFERRED CHARGES AND OTHER ASSETS:
Accumulated deferred income tax benefits	307		39		—		(346		)	—
Customer intangibles	82		—		—		—			82
Goodwill	23		—		—		—			23
Property taxes	—		4		5		—			9
Unamortized sale and leaseback costs	—		—		—		210			210
Derivatives	42		—		—		—			42
Other	40		278		3		(214		)	107
	494		321		8		(350		)	473
	$	8,749	$	6,020	$	7,672	$	(9,012	)	$	13,429
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	18	$	163	$	377	$	(23	)	$	535
Short-term borrowings-
Affiliated companies	946		381		—		(1,327		)	—
Other	12		9		—		—			21
Accounts payable-
Affiliated companies	704		115		338		(704		)	453
Other	66		112		—		—			178
Accrued taxes	251		27		30		(141		)	167
Derivatives	166		—		—		—			166
Other	52		67		16		35			170
	2,215		874		761		(2,160		)	1,690
CAPITALIZATION:
Total equity	5,772		2,491		3,855		(6,315		)	5,803
Long-term debt and other long-term obligations	694		2,229		881		(1,173		)	2,631
	6,466		4,720		4,736		(7,488		)	8,434
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		833			833
Accumulated deferred income taxes	—		—		937		(196		)	741
Asset retirement obligations	—		189		870		—			1,059
Retirement benefits	23		175		—		(1		)	197
Derivatives	20		—		—		—			20
Other	25		62		368		—			455
	68		426		2,175		636			3,305
	$	8,749	$	6,020	$	7,672	$	(9,012	)	$	13,429

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)

As of December 31, 2013	FES		FG		NG		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	2	$	—	$	—		$	2
Receivables-
Customers	539		—		—		—			539
Affiliated companies	938		787		227		(916		)	1,036
Other	52		12		17		—			81
Notes receivable from affiliated companies	203		23		683		(909		)	—
Materials and supplies	76		159		213		—			448
Derivatives	165		—		—		—			165
Collateral	136		—		—		—			136
Prepayments and other	52		50		7		—			109
	2,161		1,033		1,147		(1,825		)	2,516
PROPERTY, PLANT AND EQUIPMENT:
In service	104		6,105		6,645		(382		)	12,472
Less — Accumulated provision for depreciation	28		1,953		2,962		(188		)	4,755
	76		4,152		3,683		(194		)	7,717
Construction work in progress	23		148		1,137		—			1,308
	99		4,300		4,820		(194		)	9,025
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,276		—			1,276
Investment in affiliated companies	5,801		—		—		(5,801		)	—
Other	—		11		—		—			11
	5,801		11		1,276		(5,801		)	1,287
ASSETS HELD FOR SALE	—		122		—		—			122
DEFERRED CHARGES AND OTHER ASSETS:
Accumulated deferred income tax benefits	—		131		—		(131		)	—
Customer intangibles	95		—		—		—			95
Goodwill	23		—		—		—			23
Property taxes	—		15		26		—			41
Unamortized sale and leaseback costs	—		—		—		168			168
Derivatives	53		—		—		—			53
Other	81		228		18		(155		)	172
	252		374		44		(118		)	552
	$	8,313	$	5,840	$	7,287	$	(7,938	)	$	13,502
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	1	$	367	$	547	$	(23	)	$	892
Short-term borrowings-
Affiliated companies	977		212		151		(909		)	431
Other	—		4		—		—			4
Accounts payable-
Affiliated companies	741		400		362		(738		)	765
Other	94		196		—		—			290
Accrued taxes	204		23		23		(184		)	66
Derivatives	110		—		—		—			110
Other	70		63		18		46			197
	2,197		1,265		1,101		(1,808		)	2,755
CAPITALIZATION:
Total equity	5,312		2,283		3,493		(5,776		)	5,312
Long-term debt and other long-term obligations	712		1,860		742		(1,184		)	2,130
	6,024		4,143		4,235		(6,960		)	7,442
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		858			858
Accumulated deferred income taxes	32		—		736		(27		)	741
Asset retirement obligations	—		187		828		—			1,015
Retirement benefits	22		163		—		—			185
Derivatives	14		—		—		—			14
Other	24		82		387		(1		)	492
	92		432		1,951		830			3,305
	$	8,313	$	5,840	$	7,287	$	(7,938	)	$	13,502

Condensed Consolidating Statements of Cash Flows

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)

For the Nine Months Ended September 30, 2014	FES			FG			NG			Eliminations			Consolidated
	(In millions)
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(269	)	$	197		$	511		$	(11	)	$	428
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Long-term debt	—			431			447			—			878
Short-term borrowings, net	—			173			—			(173		)	—
Equity contribution from parent	500			—			—			—			500
Redemptions and Repayments-
Long-term debt	—			(258		)	(502		)	11			(749		)
Short-term borrowings, net	(20		)	—			(150		)	(244		)	(414		)
Other	—			(10		)	(4		)	—			(14		)
Net cash provided from (used for) financing activities	480			336			(209		)	(406		)	201
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(6		)	(99		)	(481		)	—			(586		)
Nuclear fuel	—			—			(98		)	—			(98		)
Proceeds from asset sales	—			307			—			—			307
Sales of investment securities held in trusts	—			—			890			—			890
Purchases of investment securities held in trusts	—			—			(933		)	—			(933		)
Loans to affiliated companies, net	(205		)	(746		)	320			417			(214		)
Other	—			5			—			—			5
Net cash used for investing activities	(211		)	(533		)	(302		)	417			(629		)
Net change in cash and cash equivalents	—			—			—			—			—
Cash and cash equivalents at beginning of period	—			2			—			—			2
Cash and cash equivalents at end of period	$	—		$	2		$	—		$	—		$	2

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)

For the Nine Months Ended September 30, 2013	FES			FG			NG			Eliminations			Consolidated
	(In millions)
NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(1,018	)	$	712		$	705		$	(10	)	$	389
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Short-term borrowings, net	338			—			—			(338		)	—
Equity contribution from parent	1,500			—			—			—			1,500
Redemptions and Repayments-
Long-term debt	(769		)	(352		)	(68		)	10			(1,179		)
Short-term borrowings, net	—			(32		)	—			32			—
Tender premiums	(67		)	—			—			—			(67		)
Other	(3		)	(4		)	—			—			(7		)
Net cash provided from (used for) financing activities	999			(388		)	(68		)	(296		)	247
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(9		)	(192		)	(276		)	—			(477		)
Nuclear fuel	—			—			(159		)	—			(159		)
Proceeds from asset sales	—			21			—			—			21
Sales of investment securities held in trusts	—			—			650			—			650
Purchases of investment securities held in trusts	—			—			(694		)	—			(694		)
Loans to affiliated companies, net	28			(156		)	(156		)	306			22
Other	—			2			(2		)	—			—
Net cash provided from (used for) investing activities	19			(325		)	(637		)	306			(637		)
Net change in cash and cash equivalents	—			(1		)	—			—			(1		)
Cash and cash equivalents at beginning of period	—			3			—			—			3
Cash and cash equivalents at end of period	$	—		$	2		$	—		$	—		$	2