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          <NonNumbericText>&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Arial;font-size:9pt;font-weight:bold;margin-left:0px;"&gt;15&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;font-weight:bold;"&gt;. &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;font-weight:bold;"&gt;PROPOSED MERGER WITH ALLEGHENY ENERGY, INC.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Arial;font-size:9pt;margin-left:0px;"&gt;As previously disclosed, on February 10, 2010, FirstEnergy entered into an Agreement and Plan of Merger, subsequently amended on June 4, 2010 (Merger Agreement) with Element Merger Sub, Inc., a &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;Maryland&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; corporation and its wholly-owned subsidiary (Merger Sub) and Allegheny Energy, Inc., a &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;Maryland&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; corporation (Allegheny Energy). Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Allegheny Energy with Allegheny Energy continuing as the surviving corporation and a wholly-owned subsidiary of FirstEnergy.&amp;#160;&amp;#160;Pursuant to the Merger Agreement, upon the closing of the merger, each issued and outstanding share of Allegheny Energy common stock, including grants of restricted common stock, will automatically be converted into the right to receive &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;0.667&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; of a share of common stock of FirstEnergy and Allegheny Energy stockholders will own approximately &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;27&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;% of the combined company.  Based on the&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;closing stock prices for both companies on February 10, 2010, Allegheny Energy shareholders would receive a value of $&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;27.&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;65&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; per share. On July 15, 2010 &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;the most recent practicable date prior to the effectiveness of the &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;Form S-4 registration statement&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;, the exchange ratio represented approximately $&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;25.06&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; in value for each share of Allegheny Energy common stock. FirstEnergy will also assume all outstanding Allegheny Energy debt.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Arial;font-size:9pt;margin-left:0px;"&gt;Pursuant to the Merger Agreement, completion of the merger is conditioned upon, among other things, shareholder approval of both companies, the SEC's clearance of a registration statement registering the FirstEnergy common stock to be issued in connection with the merger, as well as expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approval by the FERC, the &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;MDPSC&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;, &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;the &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;PPUC, the &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;VSCC&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; and the &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;PSCWV&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;.&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;The Merger Agreement also contains certain termination rights for both FirstEnergy and Allegheny Energy, and further provides for the payment of fees and expenses upon termination under specified circumstances. &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Arial;font-size:9pt;margin-left:0px;"&gt;FirstEnergy and Allegheny Energy currently anticipate completing the merger in the first half of 2011. Although FirstEnergy and Allegheny Energy 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's and Allegheny Energy'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 Energy and FirstEnergy. &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;Further information concerning the proposed merger is included in the Registration Statement filed by FirstEnergy with the SEC in connection with the merger.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&amp;#160;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:0pt'&gt;&lt;font style="font-family:Arial;font-size:9pt;margin-left:0px;"&gt;In connection with the proposed merger, FirstEnergy recorded approximately &lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;$&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;7&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; million ($&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;5&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; million after tax) of merger transaction costs in the second quarter an&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;d approximately $&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;21&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; million ($&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt;15&lt;/font&gt;&lt;font style="font-family:Arial;font-size:9pt;"&gt; million after tax) of merger transaction costs in the first six months of 2010. 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