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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;&lt;b&gt;22. PROPOSED MERGER WITH ALLEGHENY&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;As previously disclosed, on February&amp;#160;10, 2010, FirstEnergy entered into an Agreement and Plan of
   Merger, subsequently amended on June&amp;#160;4, 2010 (Merger Agreement), with Element Merger Sub, Inc., a
   Maryland corporation, its wholly-owned subsidiary (Merger Sub) and Allegheny, a Maryland
   corporation. Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger
   Sub would merge with and into Allegheny with Allegheny continuing as the surviving corporation and
   a wholly-owned subsidiary of FirstEnergy. Pursuant to the Merger Agreement, upon the closing of the
   merger, each issued and outstanding share of Allegheny common stock, including grants of restricted
   common stock, would automatically be converted into the right to receive 0.667 of a share of common
   stock of FirstEnergy, and Allegheny stockholders would own approximately 27% of the combined
   company.
   FirstEnergy would also assume all outstanding Allegheny debt.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;Pursuant to the Merger Agreement, completion of the merger is conditioned upon, among other things,
   shareholder approval of both companies, which was received on September&amp;#160;14, 2010; the SEC&amp;#8217;s
   clearance of a registration statement registering the FirstEnergy common stock to be issued in
   connection with the merger, which occurred on July&amp;#160;16, 2010. Approval of the merger was received from
   the VSCC on September&amp;#160;9, 2010. Approval from the FERC and from the PSCWV was received on December
   16, 2010. Approval from the MDPSC was received on January&amp;#160;18, 2011. On January&amp;#160;7, 2011, we were
   notified by the DOJ that it had completed its review of the merger and closed its investigation.
   The proposed merger is also conditioned upon receipt of the approval of the PPUC. The Merger
   Agreement also contains certain termination rights for both FirstEnergy and Allegheny, and further
   provides for the payment of fees and expenses upon termination under specified circumstances.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;FirstEnergy and Allegheny currently anticipate completing the merger in the first  quarter  of 2011.
   Although FirstEnergy and Allegheny believe that they will receive the required authorizations,
   approvals and consents to complete the merger, there can be no assurance as to the timing of these
   authorizations, approvals and consents or as to FirstEnergy&amp;#8217;s and Allegheny&amp;#8217;s ultimate ability to
   obtain such authorizations, consents or approvals (or any additional authorizations, approvals or
   consents which may otherwise become necessary) or that such authorizations, approvals or consents
   will be obtained on terms and subject to conditions satisfactory to Allegheny and FirstEnergy.
   Further information concerning the proposed merger is included in the Registration Statement filed
   by FirstEnergy with the SEC in connection with the merger.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;In connection with the proposed merger, FirstEnergy recorded approximately $65&amp;#160;million ($47&amp;#160;million
   after tax) of merger transaction costs in the year ended December&amp;#160;31, 2010. These costs are
   expensed as incurred.
   &lt;/div&gt;
   &lt;/div&gt;
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