2.2.0.7 false Variable Interest Entities 00207 - Disclosure - Variable Interest Entities true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Tons Standard http://firstenergycorp.com/20100331 tons fe 0 Percent Standard http://www.xbrl.org/2003/instance pure xbrli 0 kV Standard http://firstenergycorp.com/20100331 kV fe 0 Customers Standard http://firstenergycorp.com/20100331 Customers fe 0 Days Standard http://firstenergycorp.com/20100331 Days fe 0 EPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Variable Interest Entities [Abstract] 0 fe_VariableInterestEntitiesAbstract fe false na duration Variable Interest Entities Abstract. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Variable Interest Entities Abstract. false 3 VARIABLE INTEREST ENTITIES 1 us-gaap_ScheduleOfVariableInterestEntitiesTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 6. VARIABLE INTEREST ENTITIES On January 1, 2010, FirstEnergy adopted the amendments to the consolidation topic addressing VIEs. This standard requires that FirstEnergy and its subsidiaries perform a qualitative analysis to determine whether a variable interest gives FirstEnergy or its subsidiaries a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both the power to direct the activities of a VIE that most significantly impact the entity's economic performance and the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. This standard also requires an ongoing reassessment of the primary beneficiary of a VIE and eliminates the quantitative approach previously required for determining whether an entity is the primary beneficiary. There was no impact to FirstEnergy or its subsidiaries as a result of the adoption of this standard.  FirstEnergy's consolidated financial statements include the accounts of entities in which it has a controlling financial interest. FirstEnergy and its subsidiaries reflect the portion of VIEs not owned by them in the caption noncontrolling interest within the consolidated financial statements. The change in noncontrolling interest within the consolidated balance sheets is the result of net losses of the noncontrolling interests ($15 million) and distributions to owners ($4 million) for the six months ended June 30, 2010. FirstEnergy consolidates certain VIEs in which it has financial control through disproportionate economics in its equity and debt investments in the entities. These VIEs include: FEV's joint venture in the Signal Peak mining and coal transportation operations; the PNBV and Shippingport bond trusts that were created to refinance debt originally issued in connection with sale and leaseback transactions; and wholly owned limited liability companies of JCP&L created to sell transition bonds to securitize the recovery of JCP&L's bondable stranded costs associated with the previously divested Oyster Creek Nuclear Generating Station, of which $326 million was outstanding as of June 30, 2010.  In order to evaluate contracts under the consolidation guidance, FirstEnergy aggregated contracts into two categories based on similar risk characteristics and significance as follows: Power Purchase Agreements FirstEnergy evaluated its power purchase agreements and determined that certain NUG entities may be VIEs to the extent they own a plant that sells substantially all of its output to the Utilities and the contract price for power is correlated with the plant's variable costs of production. FirstEnergy, through its subsidiaries JCP&L, Met-Ed and Penelec, maintains 21 long-term power purchase agreements with NUG entities. The agreements were entered into pursuant to the Public Utility Regulatory Policies Act of 1978. FirstEnergy was not involved in the creation of, and has no equity or debt invested in, these entities.  FirstEnergy has determined that for all but two of these entities, neither JCP&L, nor Met-Ed nor Penelec have variable interests in the entities or the entities are governmental or not-for-profit organizations not within the scope of consolidation consideration for VIEs. JCP&L may hold variable interests in the remaining two entities, which sell their output at variable prices that correlate to some extent with the operating costs of the plants. However, FirstEnergy applied the scope exception that exempts enterprises unable to obtain the necessary information to evaluate entities.  Since JCP&L has no equity or debt interests in the NUG entities, its maximum exposure to loss relates primarily to the above-market costs it incurs for power. FirstEnergy expects any above-market costs it incurs to be recovered from customers. Purchased power costs related to the two contracts that may contain a variable interest were $53 million and $48 million for the three months ended June 30, 2010, and 2009, respectively and $117 million and $115 million for the six months ended June 30, 2010 and 2009, respectively.  Loss Contingencies FirstEnergy has variable interests in certain sale-leaseback transactions. FirstEnergy concluded that it is not the primary beneficiary of these interests as it does not have control over the significant activities affecting the economics of the arrangement. FES and the Ohio Companies are exposed to losses under their applicable sale-leaseback agreements upon the occurrence of certain contingent events that each company considers unlikely to occur. The maximum exposure under these provisions represents the net amount of casualty value payments due upon the occurrence of specified casualty events that render the applicable plant worthless. Net discounted lease payments would not be payable if the casualty loss payments were made. The following table discloses each company's net exposure to loss based upon the casualty value provisions mentioned above: <div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 13px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;"> </td><td colspan="2" style="width: 102px; text-align:center;border-color:#000000;min-width:102px;">Maximum</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td colspan="2" style="width: 108px; text-align:center;border-color:#000000;min-width:108px;">Discounted Lease</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td colspan="2" style="width: 102px; text-align:center;border-color:#000000;min-width:102px;">Net</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 13px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;"> </td><td colspan="2" style="width: 102px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:102px;">Exposure</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td colspan="2" style="width: 108px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:108px;">Payments, net (1)</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td colspan="2" style="width: 102px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:102px;">Exposure</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 3px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;"> </td><td style="width: 14px; text-align:center;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 14px; text-align:center;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;"> </td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 13px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;"> </td><td colspan="8" style="width: 340px; text-align:center;border-color:#000000;min-width:340px;">(In millions)</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 13px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;">FES</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">$</td><td style="width: 88px; border-color:#000000;min-width:88px;"> 1,352</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;">$</td><td style="width: 88px; border-color:#000000;min-width:88px;"> 1,165</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">$</td><td style="width: 88px; border-color:#000000;min-width:88px;"> 187</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 13px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;">OE</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 693</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 499</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 194</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 13px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;">CEI(2)</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 662</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 70</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 592</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 13px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;">TE(2)</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 662</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 339</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; border-color:#000000;min-width:88px;"> 323</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 15px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; text-align:left;border-color:#000000;min-width:88px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 88px; text-align:left;border-color:#000000;min-width:88px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;"> </td><td style="width: 88px; text-align:left;border-color:#000000;min-width:88px;"> </td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 30px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;"> (1)</td><td colspan="8" style="width: 340px; text-align:left;border-color:#000000;min-width:340px;">The net present value of FirstEnergy's consolidated sale and leaseback operating lease commitments is $1.6 billion.</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr><tr style="height: 29px"><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td><td style="width: 65px; text-align:left;border-color:#000000;min-width:65px;"> (2)</td><td colspan="8" style="width: 340px; text-align:left;border-color:#000000;min-width:340px;">CEI and TE are jointly and severally liable for the maximum loss amounts under certain sale-leaseback agreements.</td><td style="width: 120px; text-align:left;border-color:#000000;min-width:120px;"> </td></tr></table></div> 6. VARIABLE INTEREST ENTITIES On January 1, 2010, FirstEnergy adopted the amendments to the consolidation topic addressing VIEs. This standard requires false false false us-types:textBlockItemType textblock Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 35 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 2, 14, 15, 16, 23, 24, 25, 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 4 -Subparagraph g Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS140-4 and FIN46(R)-8 -Paragraph C4 -Subparagraph d false 1 2 false UnKnown UnKnown UnKnown false true