Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured on Recurring Basis

The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy:

	March 31, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(In millions)
Derivative assets FTRs(1)	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	3
Equity securities	2		—		—		2		2		—		—		2
U.S. state debt securities	—		276		—		276		—		276		—		276
Cash and cash equivalents	1,281		—		—		1,281		1,734		—		—		1,734
Other(2)	—		37		—		37		—		41		—		41
Total assets	$	1,283	$	313	$	—	$	1,596	$	1,736	$	317	$	3	$	2,056
Liabilities
Derivative liabilities FTRs(1)	$	—	$	—	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Net assets (liabilities)(3)	$	1,283	$	313	$	(1)	$	1,595	$	1,736	$	317	$	3	$	2,056

(1)Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.

(2)Primarily consists of short-term investments.

(3)Excludes $1 million each as of March 31, 2021 and December 31, 2020, respectively, of net receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.

Reconciliation of Changes in the Fair Value Roll Forward of Level 3 Measurements of NUG Contracts

The following table provides a reconciliation of changes in the fair value of NUG contracts and FTRs that are classified as Level 3 in the fair value hierarchy for the periods ended March 31, 2021, and December 31, 2020:

	NUG Contracts(1)		FTRs(1)
	Derivative Liabilities		Derivative Assets		Derivative Liabilities		Net
	(In millions)
January 1, 2020 Balance	$	(16)	$	4	$	(1)	$	3
Unrealized loss	(3)		(3)		—		(3)
Purchases	—		7		(2)		5
Settlements	19		(5)		3		(2)
December 31, 2020 Balance	$	—	$	3	$	—	$	3
Unrealized loss	—		—		(1)		(1)
Settlements	—		(3)		—		(3)
March 31, 2021 Balance	$	—	$	—	$	(1)	$	(1)

(1)Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.

Quantitative Information for Level 3 Valuation

The following table provides quantitative information for FTRs contracts that are classified as Level 3 in the fair value hierarchy for the period ended March 31, 2021:

	Fair Value, Net (In millions)		Valuation Technique	Significant Input	Range					Weighted Average	Units
FTRs	$	(1)	Model	RTO auction clearing prices	$	0.20	to	$	1.90	$0.60	Dollars/MWH

Amortized Cost Basis, Unrealized Gains and Losses and Fair Values of Investments in Available-for-sale Securities

The following table summarizes the amortized cost basis, unrealized gains, unrealized losses and fair values of investments held in spent nuclear fuel disposal trusts as of March 31, 2021, and December 31, 2020:

	March 31, 2021(1)								December 31, 2020(2)
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(In millions)
Debt securities	$	276	$	4	$	(7)	$	273	$	275	$	7	$	(6)	$	276

(1) Excludes short-term cash investments of $8 million.

    (2) Excludes short-term cash investments of $9 million.

Proceeds from the Sale of Investments in Available-for-sale Securities, Realized Gains and Losses on Those Sales, and Interest and Dividend Income

Proceeds from the sale of investments in AFS debt securities, realized gains and losses on those sales and interest and dividend income for the three months ended March 31, 2021 and 2020, were as follows:

	For the Three Months Ended March 31,
	2021		2020(1)
	(In millions)
Sale proceeds	$	5	$	13
Realized gains	—		4
Realized losses	—		(5)
Interest and dividend income	3		5

(1) Includes amounts associated with NDTs that were previously held by JCP&L, ME, and PN. See above for additional information.

Fair Value and Related Carrying Amounts of Long-term Debt and Other Long-term Obligations

March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
	(In millions)
Carrying value (1)	$	22,848	$	22,377
Fair value	$	24,914	$	25,465

(1) The carrying value as of March 31, 2021, includes $500 million of debt issuances and $29 million of redemptions that occurred in the first quarter of 2021.