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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;&lt;b&gt;15. ASSET RETIREMENT OBLIGATIONS&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;FirstEnergy has recognized applicable legal obligations for AROs and their associated cost for
   nuclear power plant decommissioning, reclamation of sludge disposal ponds and closure of coal ash
   disposal sites. In addition, FirstEnergy has recognized conditional asset retirement obligations
   (primarily for asbestos remediation).
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;The ARO liabilities for FES and OE include the decommissioning of the Perry nuclear generating
   facilities. FES and OE use an expected cash flow approach to measure the fair value of their
   nuclear decommissioning AROs.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;During the first quarter of 2011, studies were completed to update the estimated cost of
   decommissioning the Perry nuclear generating facility. The cost studies resulted in a revision to
   the estimated cash flows associated with the ARO liabilities of FES and OE and reduced the
   liability for each subsidiary in the amounts of $40&amp;#160;million and $6&amp;#160;million, respectively, as of
   March&amp;#160;31, 2011.
   &lt;/div&gt;
   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt"&gt;The revision to the estimated cash flows had no significant impact on accretion of the obligation
   during the first quarter of 2011 when compared to the first quarter of 2010.
   &lt;/div&gt;
   &lt;/div&gt;
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 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 143
 -Paragraph 22

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