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          <NonNumbericText>&lt;div&gt;       &lt;div style="DISPLAY: block; TEXT-INDENT: 0pt"&gt;&lt;br /&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"&gt;&lt;font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 9pt; FONT-FAMILY: Arial"&gt;1.&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;ORGANIZATION  AND BASIS OF PRESENTATION&lt;/font&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; TEXT-INDENT: 0pt"&gt;&lt;br /&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Arial"&gt;FirstEnergy is a  diversified energy company that holds, directly or indirectly, all of the  outstanding common stock of its principal subsidiaries: OE, CEI, TE, Penn (a  wholly owned subsidiary of OE), ATSI, JCP&amp;amp;L, Met-Ed, Penelec, FENOC, FES and  its subsidiaries FGCO and NGC, and FESC.&lt;/font&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; TEXT-INDENT: 0pt"&gt;&lt;br /&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Arial"&gt;FirstEnergy and its  subsidiaries follow GAAP and comply with the regulations, orders, policies and  practices prescribed by the SEC, FERC and, as applicable, the PUCO, PPUC and  NJBPU. The preparation of financial statements in conformity with GAAP requires  management to make periodic estimates and assumptions that affect the reported  amounts of assets, liabilities, revenues and expenses and disclosure of  contingent assets and liabilities. Actual results could differ from these  estimates. The reported results of operations are not indicative of results of  operations for any future period. In preparing the financial statements,  FirstEnergy and its subsidiaries have evaluated events and transactions for  potential recognition or disclosure through February 18, 2010, the date the  financial statements were issued.&lt;/font&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; TEXT-INDENT: 0pt"&gt;&lt;br /&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Arial"&gt;FirstEnergy and its  subsidiaries consolidate all majority-owned subsidiaries over which they  exercise control and, when applicable, entities for which they have a  controlling financial interest. Intercompany transactions and balances are  eliminated in consolidation unless otherwise prescribed by GAAP (see Note 16).  FirstEnergy consolidates a VIE (see Note 8) when it is determined to be the  VIE's primary beneficiary. Investments in non-consolidated affiliates over which  FirstEnergy and its subsidiaries have the ability to exercise significant  influence, but not control (20-50% owned companies, joint ventures and  partnerships) are accounted for under the equity method. Under the equity  method, the interest in the entity is reported as an investment in the  Consolidated Balance Sheets and the percentage share of the entity&amp;#8217;s earnings is  reported in the Consolidated Statements of Income. These footnotes combine  results of FE, FES, OE, CEI, TE, JCP&amp;amp;L, Met-Ed and Penelec.&lt;/font&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; TEXT-INDENT: 0pt"&gt;&lt;br /&gt;&lt;/div&gt;       &lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"&gt;&lt;font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Arial"&gt;Certain prior year  amounts have been reclassified to conform to the current year presentation.  Unless otherwise indicated, defined terms used herein have the meanings set  forth in the accompanying Glossary of Terms.&lt;/font&gt;&lt;/div&gt;     &lt;/div&gt;</NonNumbericText>
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