main8_k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D. C. 20549
FORM
8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported) March 25, 2009
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Commission
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Registrant;
State of Incorporation;
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I.R.S.
Employer
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Address; and Telephone
Number
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333-21011
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FIRSTENERGY
CORP.
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34-1843785
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(An
Ohio Corporation)
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76
South Main Street
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Akron,
OH 44308
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Telephone (800)736-3402
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1-2323
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THE
CLEVELAND ELECTRIC ILLUMINATING COMPANY
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34-0150020
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(An
Ohio Corporation)
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c/o
FirstEnergy Corp.
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76
South Main Street
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Akron,
OH 44308
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Telephone (800)736-3402
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Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2.):
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
2.06 Material Impairments.
On February 19, 2009, The Cleveland Electric
Illuminating Company (CEI), a wholly owned subsidiary of FirstEnergy Corp.,
filed an Amended Application for an Electric Security Plan with the Public
Utilities Commission of Ohio (PUCO) by filing a Stipulation and Recommendation
setting forth the terms of a Stipulated Electric Security Plan, which was later
supplemented on February 26, 2009 through the filing of a Supplemental
Stipulation (collectively, the Amended ESP). As disclosed in the
Annual Report on Form 10-K for the year ended December 31, 2008, filed by
FirstEnergy and CEI, the Amended ESP included CEI’s proposal to reduce its
recoverable Extended Regulatory Transition Charge balance as of May 31, 2009 by
50 percent. On March 25, 2009, the PUCO issued an order approving
CEI’s Amended ESP without modification. Accordingly, CEI will
recognize a $216 million regulatory asset impairment which will reduce net
income in the first quarter of 2009 for FirstEnergy and CEI by approximately
$139 million ($0.46 per share of FirstEnergy common stock). This
non-cash charge will not result in future cash expenditures.
Forward-Looking
Statements: This Form 8-K includes forward-looking statements based
on information currently available to management. Such statements are subject to
certain risks and uncertainties. These statements include declarations regarding
management's intents, beliefs and current expectations. These statements
typically contain, but are not limited to, the terms "anticipate," "potential,"
"expect," "believe," "estimate" and similar words. Forward-looking statements
involve estimates, assumptions, known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Actual results may
differ materially due to the speed and nature of increased competition in the
electric utility industry and legislative and regulatory changes affecting how
generation rates will be determined following the expiration of existing rate
plans in Ohio and Pennsylvania, the impact of the PUCO's regulatory process on
the Ohio Companies associated with the ESP and MRO filings, including any
resultant mechanism under which the Ohio Companies may not fully recover costs
(including, but not limited to, the costs of generation supply procured by the
Ohio Companies, Regulatory Transition Charges and fuel charges), or the outcome
of any competitive generation procurement process in Ohio, economic or weather
conditions affecting future sales and margins, changes in markets for energy
services, changing energy and commodity market prices and availability,
replacement power costs being higher than anticipated or inadequately hedged,
the continued ability of FirstEnergy’s regulated utilities to collect transition
and other charges or to recover increased transmission costs, maintenance costs
being higher than anticipated, other legislative and regulatory changes, revised
environmental requirements, including possible greenhouse gas emission
regulations, the potential impacts of the U.S. Court of Appeals' July 11, 2008
decision requiring revisions to the CAIR rules and the scope of any laws, rules
or regulations that may ultimately take their place, the uncertainty of the
timing and amounts of the capital expenditures needed to, among other things,
implement the AQC Plan (including that such amounts could be higher than
anticipated or that certain generating units may need to be shut down) or levels
of emission reductions related to the Consent Decree resolving the NSR
litigation or other potential regulatory initiatives, adverse regulatory or
legal decisions and outcomes (including, but not limited to, the revocation of
necessary licenses or operating permits and oversight) by the NRC (including,
but not limited to, the Demand for Information issued to FENOC on May 14, 2007),
the timing and outcome of various proceedings before the PUCO (including, but
not limited to the distribution rate cases and the generation supply plan filing
for the Ohio Companies and the successful resolution of the issues remanded to
the PUCO by the Ohio Supreme Court regarding the RSP and the RCP, including the
recovery of deferred fuel costs), Met-Ed's and Penelec's transmission service
charge filings with the PPUC, the continuing availability of generating units
and their ability to operate at or near full capacity, the ability to comply
with applicable state and federal reliability standards, the ability to
accomplish or realize anticipated benefits from strategic goals (including
employee workforce initiatives), the ability to improve electric commodity
margins and to experience growth in the distribution business, the changing
market conditions that could affect the value of assets held in FirstEnergy’s
nuclear decommissioning trusts, pension trusts and other trust funds, and cause
it to make additional contributions sooner, or in an amount that is larger than
currently anticipated, the ability to access the public securities and other
capital and credit markets in accordance with FirstEnergy’s financing plan and
the cost of such capital, changes in general economic conditions affecting the
Registrants, the state of the capital and credit markets affecting the
Registrants, interest rates and any actions taken by credit rating agencies that
could negatively affect FirstEnergy’s access to financing or its costs and
increase requirements to post additional collateral to support outstanding
commodity positions, LOCs and other financial guarantees, the continuing decline
of the national and regional economy and its impact on FirstEnergy’s major
industrial and commercial customers, issues concerning the soundness of
financial institutions and counterparties with which FirstEnergy does business,
and the risks and other factors discussed from time to time in the Registrants’
SEC filings, and other similar factors. The foregoing review of factors should
not be construed as exhaustive. New factors emerge from time to time, and it is
not possible for management to predict all such factors, nor assess the impact
of any such factor on FirstEnergy’s business or the extent to which any factor,
or combination of factors, may cause results to differ materially from those
contained in any forward-looking statements. The Registrants expressly disclaim
any current intention to update any forward-looking statements contained herein
as a result of new information, future events, or otherwise.
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, each Registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
March 31,
2009
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FIRSTENERGY CORP.
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Registrant
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THE
CLEVELAND ELECTRIC
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ILLUMINATING COMPANY
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Registrant
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Harvey L.
Wagner
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Vice
President, Controller
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and Chief
Accounting Officer
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