2.2.0.25falsefalse00213 - Disclosure - Short-Term Borrowings and Bank Lines of Credittruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
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<!-- Begin Block Tagged Note 13 - us-gaap:ShortTermDebtTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>13. SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">FirstEnergy had approximately $700 million of short-term indebtedness as of December 31, 2010,
comprised of borrowings under a $2.75 billion revolving line of credit. Total short-term bank lines
of committed credit to FirstEnergy and the Utilities as of January 31, 2011 were approximately $3.2
billion of which $2.5 billion was unused and available.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">FirstEnergy, along with certain of its subsidiaries, are parties to a $2.75 billion five-year
revolving credit facility. FirstEnergy has the ability to request an increase in the total
commitments available under this facility up to a maximum of $3.25 billion, subject to the
discretion of each lender to provide additional commitments. Commitments under the facility are
available until August 24, 2012, unless the lenders agree, at the request of the borrowers, to an
unlimited number of additional one-year extensions. Generally, borrowings under the facility must
be repaid within 364 days. Available amounts for each borrower are subject to a specified
sub-limit, as well as applicable regulatory and other limitations. The annual facility fee is
0.125%.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table summarizes the borrowing sub-limits for each borrower under the facility, as
well as the limitations on short-term indebtedness applicable to each borrower under current
regulatory approvals and applicable statutory and/or charter limitations as of December 31, 2010:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Revolving</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Regulatory and</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Credit Facility</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other Short-Term</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Borrower</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Sub-Limit</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Debt Limitations</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b><i>(in millions)</i></b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>FirstEnergy</b>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right">2,750</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right">—</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>FES</b>
</div></td>
<td> </td>
<td> </td>
<td align="right">1,000</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">—</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>OE</b>
</div></td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Penn</b>
</div></td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">34</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>CEI</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">250</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>TE</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">250</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>JCP&L</b>
</div></td>
<td> </td>
<td> </td>
<td align="right">425</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">411</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Met-Ed</b>
</div></td>
<td> </td>
<td> </td>
<td align="right">250</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">300</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Penelec</b>
</div></td>
<td> </td>
<td> </td>
<td align="right">250</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">300</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>ATSI</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">50</td>
<td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>
<div style="text-align: justify">No regulatory approvals, statutory or charter limitations applicable.
</div></td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>
<div style="text-align: justify">Excluding amounts which may be borrowed under the regulated companies’ money pool.
</div></td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td>
<div style="text-align: justify">Borrowing sub-limits for CEI and TE may be increased to up to $500 million by
delivering notice to the administrative agent that such borrower has senior unsecured debt
ratings of at least BBB by S&P and Baa2 by Moody’s.
</div></td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td>
<td> </td>
<td>
<div style="text-align: justify">The borrowing sub-limit for ATSI may be increased up to $100 million by delivering
notice to the administrative agent that ATSI has received regulatory approval to have short-term borrowings up to the same amount.
</div></td>
</tr>
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The regulated companies also have the ability to borrow from each other and FirstEnergy to meet
their short-term working capital requirements. A similar but separate arrangement exists among the
unregulated companies. FESC administers these two money pools and tracks FirstEnergy’s surplus
funds and those of the respective regulated and unregulated subsidiaries, as well as proceeds
available from bank borrowings. Companies receiving a loan under the money pool agreements must
repay the principal amount of the loan, together with accrued interest, within 364 days of
borrowing the funds. The rate of interest is the same for each company receiving a loan from their
respective pool and is based on the average cost of funds available through the pool. The average
interest rate for borrowings in 2010 was 0.51% for the regulated companies’ money pool and 0.60%
for the unregulated companies’ money pool.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The weighted average interest rates on short-term borrowings outstanding as of December 31, 2010
and 2009 were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="72%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">FE
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.68</td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.74</td>
<td nowrap="nowrap"><b>%</b></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">FES
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.60</td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.84</td>
<td nowrap="nowrap"><b>%</b></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">OE
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.51</td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.72</td>
<td nowrap="nowrap"><b>%</b></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">CEI
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.92</td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.13</td>
<td nowrap="nowrap"><b>%</b></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">TE
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.72</td>
<td nowrap="nowrap"><b>%</b></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">JCP&L
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Met-Ed
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.51</td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Penelec
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.51</td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">0.72</td>
<td nowrap="nowrap"><b>%</b></td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: Helvetica,Arial,sans-serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">As of December 31, 2010, FirstEnergy Corp. had four receivables securitizations for five of its
seven public utilities. These transactions enable the company to access up to $395 million of
financing at costs based on commercial paper rates plus annual fees. Each of the facilities matures
in 364 days, and are reflected in the table below. In March of 2011 the Centerior Funding Corp. and
OES Capital facilities are scheduled to decrease to $100 million each. There were no outstanding
borrowings as of December 31, 2010.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="3%"> </td>
<td width="11%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="11%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Parent</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Annual</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Subsidiary Company</b></td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Company</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Commitment</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Facility Fee</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Maturity</b></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="8"><b><i>(In millions)</i></b></td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">OES Capital, Incorporated
</div></td>
<td> </td>
<td align="left" valign="bottom">OE</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right">125</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.08</td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td align="center" valign="bottom" nowrap="nowrap">March 30, 2011</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Centerior Funding Corporation
</div></td>
<td> </td>
<td align="left" valign="bottom">CEI</td>
<td> </td>
<td> </td>
<td align="right">125</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.00</td>
<td> </td>
<td> </td>
<td align="center" valign="bottom">March 30, 2011</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Met-Ed Funding LLC
</div></td>
<td> </td>
<td align="left" valign="bottom">Met-Ed</td>
<td> </td>
<td> </td>
<td align="right">75</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.51</td>
<td> </td>
<td> </td>
<td align="center" valign="bottom">June 17, 2011</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Penelec Funding LLC
</div></td>
<td> </td>
<td align="left" valign="bottom">Penelec</td>
<td> </td>
<td> </td>
<td align="right">70</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.51</td>
<td> </td>
<td> </td>
<td align="center" valign="bottom">June 17, 2011</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center" valign="bottom"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right">395</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="center" valign="bottom"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
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