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USD ($)

USD ($) / shares

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   &lt;!-- Begin Block Tagged Note 14 - fe:AssetImpairmentChargesTextBlock--&gt;
   &lt;div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;&lt;b&gt;14. IMPAIRMENT OF LONG-LIVED ASSETS&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;FirstEnergy reviews long-lived assets for impairment whenever events or changes in circumstances
   indicate that the carrying value of such assets may not be recoverable. The recoverability of a
   long-lived asset is measured by comparing its carrying value to the sum of undiscounted future cash
   flows expected to result from the use and eventual disposition of the asset. If the carrying value
   is greater than the undiscounted cash flows, impairment exists and a loss is recognized for the
   amount by which the carrying value of the long-lived asset exceeds its estimated fair value. Two
   events occurred during the first quarter of 2011 that indicated the carrying value of certain
   assets may not be recoverable as described in the sections below.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"&gt;&lt;i&gt;Fremont Energy Center&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;On March&amp;#160;11, 2011, FirstEnergy and American Municipal Power, Inc., (AMP) entered into an agreement for
   the sale of Fremont Energy Center, which includes two natural gas combined-cycle combustion
   turbines and a steam turbine capable of producing 544 MW of load-following capacity and 163 MW of
   peaking capacity. The agreement provides, among other things, for a targeted closing date in July
   2011. The execution of this agreement triggered a need to evaluate the recoverability of the
   carrying value of the assets associated with the Fremont Energy Center. The estimated fair value of
   the Fremont Energy Center was based on the purchase price outlined in the sale agreement with
   American Municipal Power, Inc. The result of this evaluation indicated that the carrying cost of
   the Fremont Energy Center was not fully recoverable. As a result of the recoverability evaluation,
   FirstEnergy recorded an impairment charge of $11&amp;#160;million to operating income during the quarter
   ended March&amp;#160;31, 2011. On April&amp;#160;19, 2011, FGCO filed an section 203 application with the FERC for
   authorization to sell the Fremont Energy Center, including related capacity supply obligations, to
   AMP. Comments are due on the filing on or before May&amp;#160;10, 2011. FGCO
   requested FERC action by June&amp;#160;17, 2011.
   &lt;/div&gt;
   &lt;!-- Folio --&gt;
   &lt;!-- /Folio --&gt;
   &lt;/div&gt;
   &lt;!-- PAGEBREAK --&gt;
   &lt;div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; "&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"&gt;&lt;i&gt;Peaking Facilities&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;During the three months ended March&amp;#160;31, 2011, FirstEnergy assessed the carrying values of certain
   peaking facilities that will more likely than not be sold or disposed of before the end of their
   useful lives. The estimated fair values were based on estimated sales prices quoted in an active
   market. The result of this evaluation indicated that the carrying costs of the peaking facilities
   were not fully recoverable. As a result of the recoverability evaluation, FirstEnergy recorded an
   impairment charge of $14&amp;#160;million to the operating income of its Competitive Energy Services segment
   during the quarter ended March&amp;#160;31, 2011.
   &lt;/div&gt;
   &lt;/div&gt;
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