Commission | Registrant; State of Incorporation; | I.R.S. Employer | ||
File Number | Address; and Telephone Number | Identification No. | ||
333-21011 | FIRSTENERGY CORP.
|
34-1843785 | ||
(An Ohio Corporation) | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
000-53742 | FIRSTENERGY SOLUTIONS CORP.
|
31-1560186 | ||
(An Ohio Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-2578 | OHIO EDISON COMPANY
|
34-0437786 | ||
(An Ohio Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-2323 | THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
|
34-0150020 | ||
(An Ohio Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-3583 | THE TOLEDO EDISON COMPANY
|
34-4375005 | ||
(An Ohio Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-3141 | JERSEY CENTRAL POWER & LIGHT COMPANY
|
21-0485010 | ||
(A New Jersey Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-446 | METROPOLITAN EDISON COMPANY
|
23-0870160 | ||
(A Pennsylvania Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 | ||||
1-3522 | PENNSYLVANIA ELECTRIC COMPANY
|
25-0718085 | ||
(A Pennsylvania Corporation) | ||||
c/o FirstEnergy Corp. | ||||
76 South Main Street | ||||
Akron, OH 44308 | ||||
Telephone (800)736-3402 |
Yes þ No o
|
FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company |
Yes þ No o
|
FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company, and Pennsylvania Electric Company |
Large Accelerated Filer þ
|
FirstEnergy Corp. | |
Accelerated Filer o
|
N/A | |
Non-accelerated Filer (Do not check if a smaller reporting company) þ |
FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company | |
Smaller Reporting Company o
|
N/A |
Yes o No þ
|
FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company |
OUTSTANDING | ||||
CLASS | AS OF JULY 29, 2011 | |||
FirstEnergy Corp., $.10 par value |
418,216,437 | |||
FirstEnergy Solutions Corp., no par value |
7 | |||
Ohio Edison Company, no par value |
60 | |||
The Cleveland Electric Illuminating Company, no par value |
67,930,743 | |||
The Toledo Edison Company, $5 par value |
29,402,054 | |||
Jersey Central Power & Light Company, $10 par value |
13,628,447 | |||
Metropolitan Edison Company, no par value |
740,905 | |||
Pennsylvania Electric Company, $20 par value |
4,427,577 |
| The speed and nature of increased competition in the electric utility industry. |
| The impact of the regulatory process on the pending matters in the various states in which
we do business including, but not limited to, matters related to rates. |
| The status of the PATH project in light of PJMs direction to suspend work on the project
pending review of its planning process, its re-evaluation of the need for the project and the
uncertainty of the timing and amounts of any related capital expenditures. |
| Business and regulatory impacts from ATSIs realignment into PJM Interconnection, L.L.C. |
| Economic or weather conditions affecting future sales and margins. |
| Changes in markets for energy services. |
| Changing energy and commodity market prices and availability. |
| Financial derivative reforms that could increase our liquidity needs and collateral costs. |
| The continued ability of FirstEnergys regulated utilities to collect transition and other
costs. |
| Operation and maintenance costs being higher than anticipated. |
| Other legislative and regulatory changes, and revised environmental requirements, including
possible GHG emission, water intake and coal combustion residual regulations, the potential
impacts of any laws, rules or regulations that ultimately replace CAIR, including the
Cross-State Air Pollution Rule (CSAPR), and the effects of the EPAs recently released MACT
proposal to establish certain mercury and other emission standards for electric generating
units. |
| The uncertainty of the timing and amounts of the capital expenditures that may arise in
connection with any NSR litigation or potential regulatory initiatives or rulemakings
(including that such expenditures could result in our decision to shut down or idle certain
generating units). |
| Adverse regulatory or legal decisions and outcomes with respect to our nuclear operations
(including, but not limited to the revocation or non-renewal of necessary licenses, approvals
or operating permits by the NRC including as a result of the incident at Japans Fukushima
Daiichi Nuclear Plant). |
| Adverse legal decisions and outcomes related to Met-Eds and Penelecs ability to recover
certain transmission costs through their transmission service charge riders. |
| The continuing availability of generating units and changes in their ability to operate at
or near full capacity. |
| Replacement power costs being higher than anticipated or inadequately hedged. |
| The ability to comply with applicable state and federal reliability standards and energy
efficiency mandates. |
| Changes in customers demand for power, including but not limited to, changes resulting
from the implementation of state and federal energy efficiency mandates. |
| The ability to accomplish or realize anticipated benefits from strategic goals. |
| Efforts and our ability to improve electric commodity margins and the impact of, among
other factors, the increased cost of coal and coal transportation on such margins. |
| The ability to experience growth in the distribution business. |
| The changing market conditions that could affect the value of assets held in FirstEnergys
nuclear decommissioning trusts, pension trusts and other trust funds, and cause us to make
additional contributions sooner, or in amounts that are larger than currently anticipated. |
| The ability to access the public securities and other capital and credit markets in
accordance with FirstEnergys financing plan, the cost of such capital and overall condition
of the capital and credit markets affecting FirstEnergy and its subsidiaries. |
| Changes in general economic conditions affecting FirstEnergy and its subsidiaries. |
| Interest rates and any actions taken by credit rating agencies that could negatively affect
FirstEnergys and its subsidiaries access to financing or their costs and increase
requirements to post additional collateral to support outstanding commodity positions, LOCs
and other financial guarantees. |
| The continuing uncertainty of the national and regional economy and its impact on
FirstEnergys and its subsidiaries major industrial and commercial customers. |
| Issues concerning the soundness of financial institutions and counterparties with which
FirstEnergy and its subsidiaries do business. |
| Issues arising from the recently completed merger of FirstEnergy and Allegheny Energy, Inc.
and the ongoing coordination of their combined operations including FirstEnergys ability to
maintain relationships with customers, employees or suppliers, as well as the ability to
successfully integrate the businesses and realize cost savings and any other synergies and the
risk that the credit ratings of the combined company or its subsidiaries may be different from
what the companies expect. |
| The risks and other factors discussed from time to time in the registrants SEC filings,
and other similar factors. |
Page | ||||
iii | ||||
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7 | ||||
8 | ||||
9 | ||||
10 | ||||
11 | ||||
12 | ||||
13 | ||||
14 | ||||
15 | ||||
16 | ||||
17 | ||||
18 | ||||
19 | ||||
20 | ||||
21 | ||||
22 | ||||
23 | ||||
24 | ||||
25 |
i
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140 | ||||||||
142 | ||||||||
144 | ||||||||
146 | ||||||||
146 | ||||||||
147 | ||||||||
147 | ||||||||
147 | ||||||||
147 | ||||||||
148 | ||||||||
Exhibit 10.1 | ||||||||
Exhibit 12 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
ii
AE
|
Allegheny Energy, Inc., a Maryland utility holding company that merged with a subsidiary of FirstEnergy on February 25, 2011 | |
AESC
|
Allegheny Energy Service Corporation, a subsidiary of AE | |
AE Supply
|
Allegheny Energy Supply Company LLC, an unregulated generation subsidiary of AE | |
AET
|
Allegheny Energy Transmission, LLC, a parent of TrAIL and PATH | |
AGC
|
Allegheny Generating Company, a generation subsidiary of AE | |
Allegheny
|
Allegheny Energy, Inc., together with its consolidated subsidiaries | |
AVE
|
Allegheny Ventures, Inc. | |
ATSI
|
American Transmission Systems, Incorporated, which owns and operates transmission facilities | |
CEI
|
The Cleveland Electric Illuminating Company, an Ohio electric utility operating subsidiary | |
FENOC
|
FirstEnergy Nuclear Operating Company, which operates nuclear generating facilities | |
FES
|
FirstEnergy Solutions Corp., which provides energy-related products and services | |
FESC
|
FirstEnergy Service Company, which provides legal, financial and other corporate support services | |
FEV
|
FirstEnergy Ventures Corp., which invests in certain unregulated enterprises and business ventures | |
FGCO
|
FirstEnergy Generation Corp., which owns and operates non-nuclear generating facilities | |
FirstEnergy
|
FirstEnergy Corp., a public utility holding company | |
Global Rail
|
A joint venture between FEV and WMB Loan Ventures II LLC, that owns coal transportation operations near Roundup, Montana | |
GPU
|
GPU, Inc., former parent of JCP&L, Met-Ed and Penelec, that merged with FirstEnergy on November 7, 2001 | |
JCP&L
|
Jersey Central Power & Light Company, a New Jersey electric utility operating subsidiary | |
Met-Ed
|
Metropolitan Edison Company, a Pennsylvania electric utility operating subsidiary | |
MP
|
Monongahela Power Company, a West Virginia electric utility operating subsidiary of AE | |
NGC
|
FirstEnergy Nuclear Generation Corp., owns nuclear generating facilities | |
OE
|
Ohio Edison Company, an Ohio electric utility operating subsidiary | |
Ohio Companies
|
CEI, OE and TE | |
PATH
|
Potomac-Appalachian Transmission Highline LLC, a joint venture between Allegheny and a subsidiary of American Electric Power Company, Inc. | |
PATH-VA
|
PATH Allegheny Virginia Transmission Corporation | |
PE
|
The Potomac Edison Company, a Maryland electric operating subsidiary of AE | |
Penelec
|
Pennsylvania Electric Company, a Pennsylvania electric utility operating subsidiary | |
Penn
|
Pennsylvania Power Company, a Pennsylvania electric utility operating subsidiary of OE | |
Pennsylvania Companies
|
Met-Ed, Penelec, Penn and WP | |
PNBV
|
PNBV Capital Trust, a special purpose entity created by OE in 1996 | |
Shippingport
|
Shippingport Capital Trust, a special purpose entity created by CEI and TE in 1997 | |
Signal Peak
|
A joint venture between FEV and WMB Loan Ventures LLC, that owns mining operations near Roundup, Montana | |
TE
|
The Toledo Edison Company, an Ohio electric utility operating subsidiary | |
TrAIL
|
Trans-Allegheny Interstate Line Company | |
Utilities
|
OE, CEI, TE, Penn, JCP&L, Met-Ed, Penelec, MP, PE and WP | |
Utility Registrants
|
OE, CEI, TE, JCP&L, Met-Ed and Penelec | |
WP
|
West Penn Power Company, a Pennsylvania electric utility operating subsidiary of AE | |
The following abbreviations and acronyms are used to identify frequently used terms in this report: | ||
ALJ
|
Administrative Law Judge | |
AOCL
|
Accumulated Other Comprehensive Loss | |
AEP
|
American Electric Power | |
AQC
|
Air Quality Control | |
ARO
|
Asset Retirement Obligation | |
ARR
|
Auction Revenue Rights | |
BGS
|
Basic Generation Service | |
BMP
|
Bruce Mansfield Plant | |
CAA
|
Clean Air Act | |
CAIR
|
Clean Air Interstate Rule | |
CAMR
|
Clean Air Mercury Rule | |
CATR
|
Clean Air Transport Rule | |
CBP
|
Competitive Bid Process |
iii
CCB
|
Coal Combustion By-products | |
CDWR
|
California Department of Water Resources | |
CO2
|
Carbon Dioxide | |
CSAPR
|
Cross-State Air Pollution Rule | |
CTC
|
Competitive Transition Charge | |
CWA
|
Clean Water Act | |
CWIP
|
Construction Work in Progress | |
DCPD
|
Deferred Compensation Plan for Outside Directors | |
DOE
|
United States Department of Energy | |
DOJ
|
United States Department of Justice | |
DPA
|
Department of the Public Advocate, Division of Rate Counsel (New Jersey) | |
DSP
|
Default Service Plan | |
EDCP
|
Executive Deferred Compensation Plan | |
EE&C
|
Energy Efficiency and Conservation | |
EIS
|
Energy Insurance Services, Inc. | |
EMP
|
Energy Master Plan | |
ENEC
|
Expanded Net Energy Cost | |
EPA
|
United States Environmental Protection Agency | |
ESOP
|
Employee Stock Ownership Plan | |
ESP
|
Electric Security Plan | |
FASB
|
Financial Accounting Standards Board | |
FERC
|
Federal Energy Regulatory Commission | |
FMB
|
First Mortgage Bond | |
FPA
|
Federal Power Act | |
FRR
|
Fixed Resource Requirement | |
FTRs
|
Financial Transmission Rights | |
GAAP
|
Generally Accepted Accounting Principles in the United States | |
RGGI
|
Regional Greenhouse Gas Initiative | |
GHG
|
Greenhouse Gases | |
IRS
|
Internal Revenue Service | |
JOA
|
Joint Operating Agreement | |
kV
|
Kilovolt | |
KWH
|
Kilowatt-hours | |
LBR
|
Little Blue Run | |
LED
|
Light-Emitting Diode | |
LOC
|
Letter of Credit | |
LSE
|
Load Serving Entity | |
LTIP
|
Long-Term Incentive Plan | |
MACT
|
Maximum Achievable Control Technology | |
MDE
|
Maryland Department of the Environment | |
MDPSC
|
Maryland Public Service Commission | |
MEIUG
|
Met-Ed Industrial Users Group | |
MISO
|
Midwest Independent Transmission System Operator, Inc. | |
Moodys
|
Moodys Investors Service, Inc. | |
MRO
|
Market Rate Offer | |
MSHA
|
Mine Safety and Health Administration | |
MTEP
|
MISO Regional Transmission Expansion Plan | |
MVP
|
Multi-value Project | |
MW
|
Megawatts | |
MWH
|
Megawatt-hours | |
NAAQS
|
National Ambient Air Quality Standards | |
NDT
|
Nuclear Decommissioning Trusts | |
NERC
|
North American Electric Reliability Corporation | |
NJBPU
|
New Jersey Board of Public Utilities | |
NNSR
|
Non-Attainment New Source Review | |
NOAC
|
Northwest Ohio Aggregation Coalition | |
NOPEC
|
Northeast Ohio Public Energy Council | |
NOV
|
Notice of Violation | |
NOX
|
Nitrogen Oxide | |
NPDES
|
National Pollutant Discharge Elimination System | |
NRC
|
Nuclear Regulatory Commission |
iv
NSR
|
New Source Review | |
NUG
|
Non-Utility Generation | |
NUGC
|
Non-Utility Generation Charge | |
NYSEG
|
New York State Electric and Gas | |
OCC
|
Ohio Consumers Counsel | |
OCI
|
Other Comprehensive Income | |
OPEB
|
Other Post-Employment Benefits | |
OSBA
|
Office of Small Business Advocate | |
OVEC
|
Ohio Valley Electric Corporation | |
PA DEP
|
Pennsylvania Department of Environmental Protection | |
PCRB
|
Pollution Control Revenue Bond | |
PICA
|
Pennsylvania Intergovernmental Cooperation Authority | |
PJM
|
PJM Interconnection L. L. C. | |
POLR
|
Provider of Last Resort; an electric utilitys obligation to provide generation service to customers whose alternative supplier fails to deliver service | |
PPUC
|
Pennsylvania Public Utility Commission | |
PSCWV
|
Public Service Commission of West Virginia | |
PSA
|
Power Supply Agreement | |
PSD
|
Prevention of Significant Deterioration | |
PUCO
|
Public Utilities Commission of Ohio | |
PURPA
|
Public Utility Regulatory Policies Act of 1978 | |
RECs
|
Renewable Energy Credits | |
RFP
|
Request for Proposal | |
RGGI
|
Regional Greenhouse Gas Initiative | |
RPM
|
Reliability Pricing Model | |
RTEP
|
Regional Transmission Expansion Plan | |
RTC
|
Regulatory Transition Charge | |
RTO
|
Regional Transmission Organization | |
S&P
|
Standard & Poors Ratings Service | |
SB221
|
Amended Substitute Senate Bill 221 | |
SBC
|
Societal Benefits Charge | |
SEC
|
U.S. Securities and Exchange Commission | |
SIP
|
State Implementation Plan(s) Under the Clean Air Act | |
SMIP
|
Smart Meter Implementation Plan | |
SNCR
|
Selective Non-Catalytic Reduction | |
SO2
|
Sulfur Dioxide | |
SOS
|
Standard Offer Service | |
TBC
|
Transition Bond Charge | |
TDS
|
Total Dissolved Solid | |
TMDL
|
Total Maximum Daily Load | |
TMI-2
|
Three Mile Island Unit 2 | |
TSC
|
Transmission Service Charge | |
VIE
|
Variable Interest Entity | |
VSCC
|
Virginia State Corporation Commission | |
WVDEP
|
West Virginia Department of Environmental Protection | |
WVPSC
|
Public Service Commission of West Virginia |
v
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
In millions, except per share amounts | 2011 | 2010 | 2011 | 2010 | ||||||||||||
REVENUES: |
||||||||||||||||
Electric utilities |
$ | 2,590 | $ | 2,373 | $ | 4,925 | $ | 4,916 | ||||||||
Unregulated businesses |
1,470 | 766 | 2,711 | 1,522 | ||||||||||||
Total revenues* |
4,060 | 3,139 | 7,636 | 6,438 | ||||||||||||
EXPENSES: |
||||||||||||||||
Fuel |
635 | 350 | 1,088 | 684 | ||||||||||||
Purchased power |
1,220 | 1,063 | 2,406 | 2,301 | ||||||||||||
Other operating expenses |
1,105 | 673 | 2,138 | 1,374 | ||||||||||||
Provision for depreciation |
282 | 190 | 502 | 383 | ||||||||||||
Amortization of regulatory assets |
90 | 161 | 222 | 373 | ||||||||||||
General taxes |
242 | 176 | 479 | 381 | ||||||||||||
Total expenses |
3,574 | 2,613 | 6,835 | 5,496 | ||||||||||||
OPERATING INCOME |
486 | 526 | 801 | 942 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
31 | 31 | 52 | 47 | ||||||||||||
Interest expense |
(265 | ) | (207 | ) | (496 | ) | (420 | ) | ||||||||
Capitalized interest |
20 | 40 | 38 | 81 | ||||||||||||
Total other expense |
(214 | ) | (136 | ) | (406 | ) | (292 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
272 | 390 | 395 | 650 | ||||||||||||
INCOME TAXES |
101 | 134 | 179 | 245 | ||||||||||||
NET INCOME |
171 | 256 | 216 | 405 | ||||||||||||
Loss attributable to noncontrolling interest |
(10 | ) | (9 | ) | (15 | ) | (15 | ) | ||||||||
EARNINGS AVAILABLE TO FIRSTENERGY CORP. |
$ | 181 | $ | 265 | $ | 231 | $ | 420 | ||||||||
EARNINGS PER SHARE OF COMMON STOCK: |
||||||||||||||||
Basic |
$ | 0.43 | $ | 0.87 | $ | 0.61 | $ | 1.38 | ||||||||
Diluted |
$ | 0.43 | $ | 0.87 | $ | 0.61 | $ | 1.37 | ||||||||
AVERAGE SHARES OUTSTANDING: |
||||||||||||||||
Basic |
418 | 304 | 380 | 304 | ||||||||||||
Diluted |
420 | 305 | 382 | 305 | ||||||||||||
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK |
| | $ | 0.55 | $ | 0.55 |
* | Includes excise tax collections of $116 million and $99 million in the three months ended June
30, 2011 and 2010, respectively, and $235 million and $208 million in the six months ended June 30,
2011 and 2010, respectively. |
1
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
(In millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
NET INCOME |
$ | 171 | $ | 256 | $ | 216 | $ | 405 | ||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
111 | 17 | 130 | 30 | ||||||||||||
Unrealized gain on derivative hedges |
17 | 6 | 11 | 10 | ||||||||||||
Change in unrealized gain on available-for-sale securities |
10 | 6 | 19 | 12 | ||||||||||||
Other comprehensive income |
138 | 29 | 160 | 52 | ||||||||||||
Income tax expense related to other comprehensive income |
53 | 9 | 54 | 16 | ||||||||||||
Other comprehensive income, net of tax |
85 | 20 | 106 | 36 | ||||||||||||
COMPREHENSIVE INCOME |
256 | 276 | 322 | 441 | ||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE |
||||||||||||||||
TO NONCONTROLLING INTEREST |
(10 | ) | (9 | ) | (15 | ) | (15 | ) | ||||||||
COMPREHENSIVE INCOME AVAILABLE TO FIRSTENERGY CORP. |
$ | 266 | $ | 285 | $ | 337 | $ | 456 | ||||||||
2
June 30, | December 31, | |||||||
(In millions) | 2011 | 2010 | ||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 476 | $ | 1,019 | ||||
Receivables- |
||||||||
Customers, net of allowance for uncollectible accounts of $35 in 2011 and $36 in 2010 |
1,578 | 1,392 | ||||||
Other, net of allowance for uncollectible accounts of $8 in 2011 and 2010 |
256 | 176 | ||||||
Materials and supplies, at average cost |
866 | 638 | ||||||
Prepaid taxes |
474 | 199 | ||||||
Derivatives |
265 | 182 | ||||||
Other |
203 | 92 | ||||||
4,118 | 3,698 | |||||||
PROPERTY, PLANT AND EQUIPMENT: |
||||||||
In service |
39,568 | 29,451 | ||||||
Less Accumulated provision for depreciation |
11,593 | 11,180 | ||||||
27,975 | 18,271 | |||||||
Construction work in progress |
1,465 | 1,517 | ||||||
Property, plant and equipment held for sale, net |
502 | | ||||||
29,942 | 19,788 | |||||||
INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
2,051 | 1,973 | ||||||
Investments in lease obligation bonds |
414 | 476 | ||||||
Nuclear fuel disposal trust |
212 | 208 | ||||||
Other |
479 | 345 | ||||||
3,156 | 3,002 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
6,456 | 5,575 | ||||||
Regulatory assets |
2,182 | 1,826 | ||||||
Intangible assets |
973 | 256 | ||||||
Other |
769 | 660 | ||||||
10,380 | 8,317 | |||||||
$ | 47,596 | $ | 34,805 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 2,058 | $ | 1,486 | ||||
Short-term borrowings |
656 | 700 | ||||||
Accounts payable |
1,122 | 872 | ||||||
Accrued taxes |
399 | 326 | ||||||
Accrued compensation and benefits |
331 | 315 | ||||||
Derivatives |
287 | 266 | ||||||
Other |
691 | 733 | ||||||
5,544 | 4,698 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, $0.10 par value, authorized 490,000,000 and 375,000,000 shares, respectively-
418,216,437 and 304,835,407 shares outstanding, respectively |
42 | 31 | ||||||
Other paid-in capital |
9,782 | 5,444 | ||||||
Accumulated other comprehensive loss |
(1,433 | ) | (1,539 | ) | ||||
Retained earnings |
4,607 | 4,609 | ||||||
Total common stockholders equity |
12,998 | 8,545 | ||||||
Noncontrolling interest |
(48 | ) | (32 | ) | ||||
Total equity |
12,950 | 8,513 | ||||||
Long-term debt and other long-term obligations |
16,491 | 12,579 | ||||||
29,441 | 21,092 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
5,219 | 2,879 | ||||||
Retirement benefits |
2,134 | 1,868 | ||||||
Asset retirement obligations |
1,459 | 1,407 | ||||||
Deferred gain on sale and leaseback transaction |
942 | 959 | ||||||
Adverse power contract liability |
649 | 466 | ||||||
Other |
2,208 | 1,436 | ||||||
12,611 | 9,015 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9) |
||||||||
$ | 47,596 | $ | 34,805 | |||||
3
Six Months Ended | ||||||||
June 30 | ||||||||
(In millions) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 216 | $ | 405 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
502 | 383 | ||||||
Amortization of regulatory assets |
222 | 373 | ||||||
Nuclear fuel and lease amortization |
92 | 76 | ||||||
Deferred purchased power and other costs |
(168 | ) | (146 | ) | ||||
Deferred income taxes and investment tax credits, net |
552 | 159 | ||||||
Deferred rents and lease market valuation liability |
(61 | ) | (62 | ) | ||||
Accrued compensation and retirement benefits |
49 | (27 | ) | |||||
Commodity derivative transactions, net |
(21 | ) | (29 | ) | ||||
Pension trust contribution |
(262 | ) | | |||||
Asset impairments |
41 | 21 | ||||||
Cash collateral paid, net |
(31 | ) | (63 | ) | ||||
Interest rate swap transactions |
| 43 | ||||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
199 | (156 | ) | |||||
Materials and supplies |
24 | (17 | ) | |||||
Prepayments and other current assets |
(268 | ) | (81 | ) | ||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
(28 | ) | 18 | |||||
Accrued taxes |
(66 | ) | (58 | ) | ||||
Accrued interest |
(4 | ) | 10 | |||||
Other |
43 | 9 | ||||||
Net cash provided from operating activities |
1,031 | 858 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Long-term debt |
503 | | ||||||
Short-term borrowings, net |
| 281 | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(1,002 | ) | (407 | ) | ||||
Short-term borrowings, net |
(44 | ) | | |||||
Common stock dividend payments |
(420 | ) | (335 | ) | ||||
Other |
(76 | ) | (23 | ) | ||||
Net cash used for financing activities |
(1,039 | ) | (484 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(1,018 | ) | (997 | ) | ||||
Proceeds from asset sales |
| 116 | ||||||
Sales of investment securities held in trusts |
1,703 | 1,915 | ||||||
Purchases of investment securities held in trusts |
(1,807 | ) | (1,934 | ) | ||||
Customer acquisition costs |
(2 | ) | (105 | ) | ||||
Cash investments |
50 | 59 | ||||||
Cash received in Allegheny merger |
590 | | ||||||
Other |
(51 | ) | (21 | ) | ||||
Net cash used for investing activities |
(535 | ) | (967 | ) | ||||
Net change in cash and cash equivalents |
(543 | ) | (593 | ) | ||||
Cash and cash equivalents at beginning of period |
1,019 | 874 | ||||||
Cash and cash equivalents at end of period |
$ | 476 | $ | 281 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION: |
||||||||
Non-cash transaction: merger with Allegheny, common stock issued |
$ | 4,354 | $ | |
4
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(In millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales to non-affiliates |
$ | 1,052 | $ | 729 | $ | 2,097 | $ | 1,397 | ||||||||
Electric sales to affiliates |
170 | 539 | 431 | 1,146 | ||||||||||||
Other |
70 | 58 | 156 | 171 | ||||||||||||
Total revenues |
1,292 | 1,326 | 2,684 | 2,714 | ||||||||||||
EXPENSES: |
||||||||||||||||
Fuel |
316 | 343 | 659 | 671 | ||||||||||||
Purchased power from affiliates |
65 | 69 | 134 | 130 | ||||||||||||
Purchased power from non-affiliates |
329 | 310 | 626 | 760 | ||||||||||||
Other operating expenses |
429 | 304 | 910 | 608 | ||||||||||||
Provision for depreciation |
68 | 63 | 136 | 126 | ||||||||||||
General taxes |
30 | 22 | 60 | 49 | ||||||||||||
Impairment of long-lived assets |
7 | | 20 | 2 | ||||||||||||
Total expenses |
1,244 | 1,111 | 2,545 | 2,346 | ||||||||||||
OPERATING INCOME |
48 | 215 | 139 | 368 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
16 | 13 | 22 | 14 | ||||||||||||
Miscellaneous income (expense) |
4 | 4 | 8 | 7 | ||||||||||||
Interest expense affiliates |
(2 | ) | (2 | ) | (3 | ) | (5 | ) | ||||||||
Interest expense other |
(52 | ) | (51 | ) | (105 | ) | (101 | ) | ||||||||
Capitalized interest |
10 | 24 | 20 | 44 | ||||||||||||
Total other expense |
(24 | ) | (12 | ) | (58 | ) | (41 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
24 | 203 | 81 | 327 | ||||||||||||
INCOME TAXES |
4 | 69 | 25 | 113 | ||||||||||||
NET INCOME |
$ | 20 | $ | 134 | $ | 56 | $ | 214 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 20 | $ | 134 | $ | 56 | $ | 214 | ||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
1 | 1 | 3 | (9 | ) | |||||||||||
Unrealized gain on derivative hedges |
14 | 3 | 5 | 4 | ||||||||||||
Change in unrealized gain on available-for-sale securities |
8 | 6 | 15 | 11 | ||||||||||||
Other comprehensive income |
23 | 10 | 23 | 6 | ||||||||||||
Income taxes related to other comprehensive income |
10 | 4 | 8 | 2 | ||||||||||||
Other comprehensive income, net of tax |
13 | 6 | 15 | 4 | ||||||||||||
COMPREHENSIVE INCOME |
$ | 33 | $ | 140 | $ | 71 | $ | 218 | ||||||||
5
June 30, | December 31, | |||||||
(In millions) | 2011 | 2010 | ||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 6 | $ | 9 | ||||
Receivables- |
||||||||
Customers, net of allowance for uncollectible accounts of $18 in 2011 and $17 in 2010 |
450 | 366 | ||||||
Associated companies |
490 | 478 | ||||||
Other, net of allowances for uncollectible accounts of $3 in 2011 and $7 in 2010 |
51 | 90 | ||||||
Notes receivable from associated companies |
490 | 397 | ||||||
Materials and supplies, at average cost |
499 | 545 | ||||||
Derivatives |
221 | 182 | ||||||
Prepayments and other |
49 | 59 | ||||||
2,256 | 2,126 | |||||||
PROPERTY, PLANT AND EQUIPMENT: |
||||||||
In service |
11,455 | 11,321 | ||||||
Less Accumulated provision for depreciation |
4,206 | 4,024 | ||||||
7,249 | 7,297 | |||||||
Construction work in progress |
694 | 1,063 | ||||||
Property, plant and equipment held for sale, net |
487 | | ||||||
8,430 | 8,360 | |||||||
INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
1,184 | 1,146 | ||||||
Other |
10 | 12 | ||||||
1,194 | 1,158 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Customer intangibles |
129 | 134 | ||||||
Goodwill |
24 | 24 | ||||||
Property taxes |
41 | 41 | ||||||
Unamortized sale and leaseback costs |
76 | 73 | ||||||
Derivatives |
135 | 98 | ||||||
Other |
75 | 48 | ||||||
480 | 418 | |||||||
$ | 12,360 | $ | 12,062 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 1,088 | $ | 1,132 | ||||
Short-term borrowings- |
||||||||
Associated companies |
541 | 12 | ||||||
Other |
1 | | ||||||
Accounts payable- |
||||||||
Associated companies |
393 | 467 | ||||||
Other |
191 | 241 | ||||||
Derivatives |
242 | 266 | ||||||
Other |
262 | 322 | ||||||
2,718 | 2,440 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, without par value, authorized 750 shares- 7 shares outstanding |
1,488 | 1,490 | ||||||
Accumulated other comprehensive loss |
(105 | ) | (120 | ) | ||||
Retained earnings |
2,474 | 2,418 | ||||||
Total common stockholders equity |
3,857 | 3,788 | ||||||
Long-term debt and other long-term obligations |
3,000 | 3,181 | ||||||
6,857 | 6,969 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Deferred gain on sale and leaseback transaction |
942 | 959 | ||||||
Accumulated deferred income taxes |
216 | 58 | ||||||
Asset retirement obligations |
875 | 892 | ||||||
Retirement benefits |
295 | 285 | ||||||
Lease market valuation liability |
194 | 217 | ||||||
Derivatives |
85 | 81 | ||||||
Other |
178 | 161 | ||||||
2,785 | 2,653 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9) |
||||||||
$ | 12,360 | $ | 12,062 | |||||
6
Six Months Ended | ||||||||
June 30 | ||||||||
(In millions) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 56 | $ | 214 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
136 | 126 | ||||||
Nuclear fuel and lease amortization |
92 | 78 | ||||||
Deferred rents and lease market valuation liability |
(58 | ) | (59 | ) | ||||
Deferred income taxes and investment tax credits, net |
126 | 114 | ||||||
Asset impairments |
28 | 21 | ||||||
Accrued compensation and retirement benefits |
8 | 7 | ||||||
Commodity derivative transactions, net |
(60 | ) | (29 | ) | ||||
Cash collateral paid, net |
(40 | ) | (38 | ) | ||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
(36 | ) | (193 | ) | ||||
Materials and supplies |
50 | (29 | ) | |||||
Prepayments and other current assets |
12 | 25 | ||||||
Decrease in operating liabilities- |
||||||||
Accounts payable |
(124 | ) | (32 | ) | ||||
Accrued taxes |
(29 | ) | (8 | ) | ||||
Other |
21 | 21 | ||||||
Net cash provided from operating activities |
182 | 218 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New financing- |
||||||||
Long-term debt |
247 | | ||||||
Short-term borrowings, net |
530 | 76 | ||||||
Redemptions and repayments- |
||||||||
Long-term debt |
(472 | ) | (295 | ) | ||||
Other |
(11 | ) | (1 | ) | ||||
Net cash provided from (used for) financing activities |
294 | (220 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(334 | ) | (566 | ) | ||||
Proceeds from asset sales |
| 116 | ||||||
Sales of investment securities held in trusts |
513 | 957 | ||||||
Purchases of investment securities held in trusts |
(545 | ) | (979 | ) | ||||
Loans to associated companies, net |
(93 | ) | 631 | |||||
Customer acquisition costs |
(2 | ) | (105 | ) | ||||
Leasehold improvement payments to associated companies |
| (51 | ) | |||||
Other |
(18 | ) | (1 | ) | ||||
Net cash provided from (used for) investing activities |
(479 | ) | 2 | |||||
Net change in cash and cash equivalents |
(3 | ) | | |||||
Cash and cash equivalents at beginning of period |
9 | | ||||||
Cash and cash equivalents at end of period |
$ | 6 | $ | | ||||
7
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 360,203 | $ | 415,437 | $ | 724,034 | $ | 895,362 | ||||||||
Excise and gross receipts tax collections |
24,941 | 23,949 | 53,136 | 52,424 | ||||||||||||
Total revenues |
385,144 | 439,386 | 777,170 | 947,786 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
69,134 | 134,050 | 162,396 | 287,727 | ||||||||||||
Purchased power from non-affiliates |
62,667 | 78,826 | 123,046 | 173,057 | ||||||||||||
Other operating expenses |
110,778 | 88,275 | 212,240 | 177,130 | ||||||||||||
Provision for depreciation |
22,470 | 22,014 | 44,346 | 43,894 | ||||||||||||
Amortization of regulatory assets, net |
2,405 | 9,424 | 3,179 | 38,769 | ||||||||||||
General taxes |
45,592 | 43,362 | 95,018 | 90,854 | ||||||||||||
Total expenses |
313,046 | 375,951 | 640,225 | 811,431 | ||||||||||||
OPERATING INCOME |
72,098 | 63,435 | 136,945 | 136,355 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
5,043 | 6,309 | 9,351 | 11,553 | ||||||||||||
Miscellaneous income (expense) |
(477 | ) | 1,295 | (187 | ) | 1,003 | ||||||||||
Interest expense |
(22,011 | ) | (22,155 | ) | (44,156 | ) | (44,465 | ) | ||||||||
Capitalized interest |
510 | 295 | 841 | 503 | ||||||||||||
Total other expense |
(16,935 | ) | (14,256 | ) | (34,151 | ) | (31,406 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
55,163 | 49,179 | 102,794 | 104,949 | ||||||||||||
INCOME TAXES |
16,538 | 11,856 | 34,029 | 31,465 | ||||||||||||
NET INCOME |
38,625 | 37,323 | 68,765 | 73,484 | ||||||||||||
Income attributable to noncontrolling interest |
114 | 130 | 230 | 262 | ||||||||||||
EARNINGS AVAILABLE TO PARENT |
$ | 38,511 | $ | 37,193 | $ | 68,535 | $ | 73,222 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 38,625 | $ | 37,323 | $ | 68,765 | $ | 73,484 | ||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
1,122 | 322 | 1,461 | 4,337 | ||||||||||||
Increase in unrealized gain on available-for-sale securities |
1,591 | 520 | 1,569 | 811 | ||||||||||||
Other comprehensive income |
2,713 | 842 | 3,030 | 5,148 | ||||||||||||
Income tax expense (benefit) related to other |
||||||||||||||||
comprehensive income |
386 | (26 | ) | (1,110 | ) | 667 | ||||||||||
Other comprehensive income, net of tax |
2,327 | 868 | 4,140 | 4,481 | ||||||||||||
COMPREHENSIVE INCOME |
40,952 | 38,191 | 72,905 | 77,965 | ||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO |
||||||||||||||||
NONCONTROLLING INTEREST |
114 | 130 | 230 | 262 | ||||||||||||
COMPREHENSIVE INCOME AVAILABLE TO PARENT |
$ | 40,838 | $ | 38,061 | $ | 72,675 | $ | 77,703 | ||||||||
8
June 30, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 176 | $ | 420,489 | ||||
Receivables- |
||||||||
Customers, net of allowance for uncollectible accounts of $3,564 in 2011
and $4,086 in 2010 |
159,393 | 176,591 | ||||||
Associated companies |
68,709 | 118,135 | ||||||
Other |
32,798 | 12,232 | ||||||
Notes receivable from associated companies |
95,884 | 16,957 | ||||||
Prepayments and other |
35,339 | 6,393 | ||||||
392,299 | 750,797 | |||||||
UTILITY PLANT: |
||||||||
In service |
3,176,455 | 3,136,623 | ||||||
Less Accumulated provision for depreciation |
1,230,570 | 1,207,745 | ||||||
1,945,885 | 1,928,878 | |||||||
Construction work in progress |
66,656 | 45,103 | ||||||
2,012,541 | 1,973,981 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Investment in lease obligation bonds |
177,835 | 190,420 | ||||||
Nuclear plant decommissioning trusts |
133,354 | 127,017 | ||||||
Other |
92,440 | 95,563 | ||||||
403,629 | 413,000 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Regulatory assets |
392,580 | 400,322 | ||||||
Pension assets |
62,612 | 28,596 | ||||||
Property taxes |
71,331 | 71,331 | ||||||
Unamortized sale and leaseback costs |
27,628 | 30,126 | ||||||
Other |
19,041 | 17,634 | ||||||
573,192 | 548,009 | |||||||
$ | 3,381,661 | $ | 3,685,787 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 1,429 | $ | 1,419 | ||||
Short-term borrowings- |
||||||||
Associated companies |
| 142,116 | ||||||
Other |
166 | 320 | ||||||
Accounts payable- |
||||||||
Associated companies |
94,821 | 99,421 | ||||||
Other |
41,417 | 29,639 | ||||||
Accrued taxes |
69,364 | 78,707 | ||||||
Accrued interest |
25,374 | 25,382 | ||||||
Other |
79,795 | 74,947 | ||||||
312,366 | 451,951 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, without par value, authorized 175,000,000 shares
60 shares outstanding |
783,871 | 951,866 | ||||||
Accumulated other comprehensive loss |
(174,936 | ) | (179,076 | ) | ||||
Retained earnings |
110,156 | 141,621 | ||||||
Total common stockholders equity |
719,091 | 914,411 | ||||||
Noncontrolling interest |
5,313 | 5,680 | ||||||
Total equity |
724,404 | 920,091 | ||||||
Long-term debt and other long-term obligations |
1,151,720 | 1,152,134 | ||||||
1,876,124 | 2,072,225 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
749,687 | 696,410 | ||||||
Accumulated deferred investment tax credits |
9,439 | 10,159 | ||||||
Retirement benefits |
183,345 | 183,712 | ||||||
Asset retirement obligations |
69,164 | 74,456 | ||||||
Other |
181,536 | 196,874 | ||||||
1,193,171 | 1,161,611 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 9) |
||||||||
$ | 3,381,661 | $ | 3,685,787 | |||||
The accompanying Combined Notes to the Consolidated Financial Statements are an integral part
of these financial statements. |
9
Six Months Ended | ||||||||
June 30 | ||||||||
(In thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 68,765 | $ | 73,484 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
44,346 | 43,894 | ||||||
Amortization of regulatory assets, net |
3,179 | 38,769 | ||||||
Purchased power cost recovery reconciliation |
(8,584 | ) | (1,514 | ) | ||||
Amortization of lease costs |
(4,696 | ) | (4,619 | ) | ||||
Deferred income taxes and investment tax credits, net |
62,216 | 4,964 | ||||||
Accrued compensation and retirement benefits |
(8,328 | ) | (16,154 | ) | ||||
Accrued regulatory obligations |
(3,309 | ) | (2,309 | ) | ||||
Cash collateral from (to) suppliers, net |
(850 | ) | 1,215 | |||||
Pension trust contribution |
(27,000 | ) | | |||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
80,968 | 49,250 | ||||||
Prepayments and other current assets |
(28,947 | ) | 5,072 | |||||
Decrease in operating liabilities- |
||||||||
Accounts payable |
(22,253 | ) | (57,208 | ) | ||||
Accrued taxes |
(9,360 | ) | (25,685 | ) | ||||
Other |
4,261 | (114 | ) | |||||
Net cash provided from operating activities |
150,408 | 109,045 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(707 | ) | (2,957 | ) | ||||
Short-term borrowings, net |
(142,270 | ) | (93,017 | ) | ||||
Common stock dividend payments |
(268,000 | ) | (250,000 | ) | ||||
Other |
(2,340 | ) | (881 | ) | ||||
Net cash used for financing activities |
(413,317 | ) | (346,855 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(78,894 | ) | (71,698 | ) | ||||
Leasehold improvement payments from associated companies |
| 18,375 | ||||||
Sales of investment securities held in trusts |
19,595 | 59,804 | ||||||
Purchases of investment securities held in trusts |
(25,547 | ) | (64,063 | ) | ||||
Loans to associated companies, net |
(78,927 | ) | 12,420 | |||||
Cash investments |
11,962 | 11,774 | ||||||
Other |
(5,593 | ) | (1,298 | ) | ||||
Net cash used for investing activities |
(157,404 | ) | (34,686 | ) | ||||
Net change in cash and cash equivalents |
(420,313 | ) | (272,496 | ) | ||||
Cash and cash equivalents at beginning of period |
420,489 | 324,175 | ||||||
Cash and cash equivalents at end of period |
$ | 176 | $ | 51,679 | ||||
10
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 202,148 | $ | 280,180 | $ | 408,890 | $ | 592,677 | ||||||||
Excise tax collections |
15,706 | 15,495 | 33,851 | 33,068 | ||||||||||||
Total revenues |
217,854 | 295,675 | 442,741 | 625,745 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
36,040 | 99,422 | 82,208 | 208,815 | ||||||||||||
Purchased power from non-affiliates |
23,099 | 32,651 | 41,319 | 70,049 | ||||||||||||
Other operating expenses |
31,625 | 28,937 | 66,661 | 60,172 | ||||||||||||
Provision for depreciation |
18,488 | 18,336 | 36,914 | 36,447 | ||||||||||||
Amortization of regulatory assets, net |
18,166 | 30,807 | 41,536 | 75,946 | ||||||||||||
General taxes |
36,954 | 28,840 | 77,166 | 67,329 | ||||||||||||
Total expenses |
164,372 | 238,993 | 345,804 | 518,758 | ||||||||||||
OPERATING INCOME |
53,482 | 56,682 | 96,937 | 106,987 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
5,637 | 6,605 | 12,234 | 14,152 | ||||||||||||
Miscellaneous income |
1,038 | 675 | 1,674 | 1,257 | ||||||||||||
Interest expense |
(32,135 | ) | (33,262 | ) | (65,213 | ) | (66,883 | ) | ||||||||
Capitalized interest |
36 | 7 | 63 | 33 | ||||||||||||
Total other expense |
(25,424 | ) | (25,975 | ) | (51,242 | ) | (51,441 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
28,058 | 30,707 | 45,695 | 55,546 | ||||||||||||
INCOME TAXES |
6,209 | 8,785 | 10,645 | 19,628 | ||||||||||||
NET INCOME |
21,849 | 21,922 | 35,050 | 35,918 | ||||||||||||
Income attributable to noncontrolling interest |
309 | 366 | 675 | 785 | ||||||||||||
EARNINGS AVAILABLE TO PARENT |
$ | 21,540 | $ | 21,556 | $ | 34,375 | $ | 35,133 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 21,849 | $ | 21,922 | $ | 35,050 | $ | 35,918 | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS): |
||||||||||||||||
Pension and other postretirement benefits (charges) |
2,975 | 3,228 | 5,942 | (19,357 | ) | |||||||||||
Income tax expense (benefit) related to other
comprehensive income |
860 | 976 | 398 | (7,301 | ) | |||||||||||
Other comprehensive income (loss), net of tax |
2,115 | 2,252 | 5,544 | (12,056 | ) | |||||||||||
COMPREHENSIVE INCOME |
23,964 | 24,174 | 40,594 | 23,862 | ||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO
NONCONTROLLING INTEREST |
309 | 366 | 675 | 785 | ||||||||||||
COMPREHENSIVE INCOME AVAILABLE TO PARENT |
$ | 23,655 | $ | 23,808 | $ | 39,919 | $ | 23,077 | ||||||||
11
June 30, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 244 | $ | 238 | ||||
Receivables- |
||||||||
Customers, net of allowance for uncollectible accounts of $2,801 in 2011 and
$4,589 in 2010 |
97,997 | 183,744 | ||||||
Associated companies |
32,348 | 77,047 | ||||||
Other |
13,476 | 11,544 | ||||||
Notes receivable from associated companies |
71,911 | 23,236 | ||||||
Materials and supplies, at average cost |
13,784 | 398 | ||||||
Prepayments and other |
6,431 | 3,258 | ||||||
236,191 | 299,465 | |||||||
UTILITY PLANT: |
||||||||
In service |
2,417,031 | 2,396,893 | ||||||
Less Accumulated provision for depreciation |
944,379 | 932,246 | ||||||
1,472,652 | 1,464,647 | |||||||
Construction work in progress |
59,281 | 38,610 | ||||||
1,531,933 | 1,503,257 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Investment in lessor notes |
286,745 | 340,029 | ||||||
Other |
10,048 | 10,074 | ||||||
296,793 | 350,103 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
1,688,521 | 1,688,521 | ||||||
Regulatory assets |
320,337 | 370,403 | ||||||
Pension assets |
14,652 | | ||||||
Property taxes |
80,614 | 80,614 | ||||||
Other |
12,884 | 11,486 | ||||||
2,117,008 | 2,151,024 | |||||||
$ | 4,181,925 | $ | 4,303,849 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 188 | $ | 161 | ||||
Short-term borrowings from associated companies |
23,303 | 105,996 | ||||||
Accounts payable- |
||||||||
Associated companies |
51,001 | 32,020 | ||||||
Other |
18,700 | 14,947 | ||||||
Accrued taxes |
83,265 | 84,668 | ||||||
Accrued interest |
18,551 | 18,555 | ||||||
Other |
38,685 | 44,569 | ||||||
233,693 | 300,916 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, without par value, authorized 105,000,000 shares,
67,930,743 shares outstanding |
887,053 | 887,087 | ||||||
Accumulated other comprehensive loss |
(147,643 | ) | (153,187 | ) | ||||
Retained earnings |
539,280 | 568,906 | ||||||
Total common stockholders equity |
1,278,690 | 1,302,806 | ||||||
Noncontrolling interest |
15,195 | 18,017 | ||||||
Total equity |
1,293,885 | 1,320,823 | ||||||
Long-term debt and other long-term obligations |
1,831,023 | 1,852,530 | ||||||
3,124,908 | 3,173,353 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
640,059 | 622,771 | ||||||
Accumulated deferred investment tax credits |
10,574 | 10,994 | ||||||
Retirement benefits |
76,010 | 95,654 | ||||||
Other |
96,681 | 100,161 | ||||||
823,324 | 829,580 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 9) |
||||||||
$ | 4,181,925 | $ | 4,303,849 | |||||
12
Six Months Ended | ||||||||
June 30 | ||||||||
(In thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 35,050 | $ | 35,918 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
36,914 | 36,447 | ||||||
Amortization of regulatory assets, net |
41,536 | 75,946 | ||||||
Deferred income taxes and investment tax credits, net |
17,221 | (18,083 | ) | |||||
Accrued compensation and retirement benefits |
5,421 | 5,421 | ||||||
Accrued regulatory obligations |
(2,001 | ) | (444 | ) | ||||
Cash collateral from suppliers, net |
| 685 | ||||||
Pension trust contribution |
(35,000 | ) | | |||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
140,455 | 51,757 | ||||||
Prepayments and other current assets |
(17,469 | ) | 5,392 | |||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
10,135 | (34,488 | ) | |||||
Accrued taxes |
(346 | ) | (11,317 | ) | ||||
Other |
(4,436 | ) | 2,023 | |||||
Net cash provided from operating activities |
227,480 | 149,257 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(74 | ) | (54 | ) | ||||
Short-term borrowings, net |
(104,228 | ) | (136,013 | ) | ||||
Common stock dividend payments |
(64,000 | ) | (100,000 | ) | ||||
Other |
(5,239 | ) | (3,367 | ) | ||||
Net cash used for financing activities |
(173,541 | ) | (239,434 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(52,743 | ) | (44,373 | ) | ||||
Loans to associated companies, net |
(48,676 | ) | 2,322 | |||||
Redemptions of lessor notes |
53,283 | 48,608 | ||||||
Other |
(5,797 | ) | (2,365 | ) | ||||
Net cash provided from (used for) investing activities |
(53,933 | ) | 4,192 | |||||
Net change in cash and cash equivalents |
6 | (85,985 | ) | |||||
Cash and cash equivalents at beginning of period |
238 | 86,230 | ||||||
Cash and cash equivalents at end of period |
$ | 244 | $ | 245 | ||||
13
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 93,048 | $ | 114,691 | $ | 199,373 | $ | 240,122 | ||||||||
Excise tax collections |
6,270 | 6,059 | 13,572 | 13,100 | ||||||||||||
Total revenues |
99,318 | 120,750 | 212,945 | 253,222 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
17,037 | 47,106 | 52,554 | 101,725 | ||||||||||||
Purchased power from non-affiliates |
16,114 | 15,223 | 30,102 | 33,713 | ||||||||||||
Other operating expenses |
32,549 | 25,499 | 69,136 | 51,044 | ||||||||||||
Provision for depreciation |
7,959 | 8,013 | 15,890 | 15,963 | ||||||||||||
Deferral of regulatory assets, net |
(7,054 | ) | (1,800 | ) | (18,532 | ) | (10,299 | ) | ||||||||
General taxes |
12,438 | 12,282 | 26,890 | 25,743 | ||||||||||||
Total expenses |
79,043 | 106,323 | 176,040 | 217,889 | ||||||||||||
OPERATING INCOME |
20,275 | 14,427 | 36,905 | 35,333 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Investment income |
2,599 | 5,057 | 5,521 | 8,857 | ||||||||||||
Miscellaneous income (expense) |
396 | (945 | ) | (1,233 | ) | (2,351 | ) | |||||||||
Interest expense |
(10,415 | ) | (10,455 | ) | (20,858 | ) | (20,942 | ) | ||||||||
Capitalized interest |
135 | 80 | 237 | 158 | ||||||||||||
Total other expense |
(7,285 | ) | (6,263 | ) | (16,333 | ) | (14,278 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
12,990 | 8,164 | 20,572 | 21,055 | ||||||||||||
INCOME TAXES |
1,429 | 948 | 3,164 | 6,330 | ||||||||||||
NET INCOME |
11,561 | 7,216 | 17,408 | 14,725 | ||||||||||||
Income attributable to noncontrolling interest |
2 | 2 | 4 | 5 | ||||||||||||
EARNINGS AVAILABLE TO PARENT |
$ | 11,559 | $ | 7,214 | $ | 17,404 | $ | 14,720 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 11,561 | $ | 7,216 | $ | 17,408 | $ | 14,725 | ||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
575 | 714 | 1,167 | 1,010 | ||||||||||||
Increase (decrease) in unrealized gain on available-for-sale securities |
754 | (330 | ) | 2,059 | 39 | |||||||||||
Other comprehensive income |
1,329 | 384 | 3,226 | 1,049 | ||||||||||||
Income tax expense related to other comprehensive income |
351 | 65 | 685 | 235 | ||||||||||||
Other comprehensive income, net of tax |
978 | 319 | 2,541 | 814 | ||||||||||||
COMPREHENSIVE INCOME |
12,539 | 7,535 | 19,949 | 15,539 | ||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO
NONCONTROLLING INTEREST |
2 | 2 | 4 | 5 | ||||||||||||
COMPREHENSIVE INCOME AVAILABLE TO PARENT |
$ | 12,537 | $ | 7,533 | $ | 19,945 | $ | 15,534 | ||||||||
14
June 30, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 12 | $ | 149,262 | ||||
Receivables- |
||||||||
Customers, net of allowance for uncollectible accounts of $1,142 in 2011
and $1 in 2010 |
45,931 | 29 | ||||||
Associated companies |
48,340 | 31,777 | ||||||
Other, net of allowance for uncollectible accounts of $339 in 2011
and $330 in 2010 |
5,272 | 18,464 | ||||||
Notes receivable from associated companies |
128,815 | 96,765 | ||||||
Prepayments and other |
12,052 | 2,306 | ||||||
240,422 | 298,603 | |||||||
UTILITY PLANT: |
||||||||
In service |
955,002 | 947,203 | ||||||
Less Accumulated provision for depreciation |
453,517 | 446,401 | ||||||
501,485 | 500,802 | |||||||
Construction work in progress |
17,386 | 12,604 | ||||||
518,871 | 513,406 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Investment in lessor notes |
82,153 | 103,872 | ||||||
Nuclear plant decommissioning trusts |
79,018 | 75,558 | ||||||
Other |
1,448 | 1,492 | ||||||
162,619 | 180,922 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
500,576 | 500,576 | ||||||
Regulatory assets |
89,112 | 72,059 | ||||||
Pension assets |
24,603 | | ||||||
Property taxes |
24,990 | 24,990 | ||||||
Other |
42,341 | 23,750 | ||||||
681,622 | 621,375 | |||||||
$ | 1,603,534 | $ | 1,614,306 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 188 | $ | 199 | ||||
Accounts payable- |
||||||||
Associated companies |
22,144 | 17,168 | ||||||
Other |
12,524 | 7,351 | ||||||
Accrued taxes |
23,699 | 24,401 | ||||||
Accrued interest |
5,933 | 5,931 | ||||||
Lease market valuation liability |
36,900 | 36,900 | ||||||
Other |
18,060 | 23,145 | ||||||
119,448 | 115,095 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, $5 par value, authorized 60,000,000 shares,
29,402,054 shares outstanding |
147,010 | 147,010 | ||||||
Other paid-in capital |
178,157 | 178,182 | ||||||
Accumulated other comprehensive loss |
(46,642 | ) | (49,183 | ) | ||||
Retained earnings |
100,937 | 117,534 | ||||||
Total common stockholders equity |
379,462 | 393,543 | ||||||
Noncontrolling interest |
2,593 | 2,589 | ||||||
Total equity |
382,055 | 396,132 | ||||||
Long-term debt and other long-term obligations |
600,524 | 600,493 | ||||||
982,579 | 996,625 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
168,429 | 132,019 | ||||||
Accumulated deferred investment tax credits |
5,715 | 5,930 | ||||||
Retirement benefits |
51,764 | 71,486 | ||||||
Asset retirement obligations |
29,737 | 28,762 | ||||||
Lease market valuation liability |
180,850 | 199,300 | ||||||
Other |
65,012 | 65,089 | ||||||
501,507 | 502,586 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9) |
||||||||
$ | 1,603,534 | $ | 1,614,306 | |||||
15
Six Months Ended | ||||||||
June 30 | ||||||||
(In thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 17,408 | $ | 14,725 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
15,890 | 15,963 | ||||||
Deferral of regulatory assets, net |
(18,532 | ) | (10,299 | ) | ||||
Deferred rents and lease market valuation liability |
(43,851 | ) | (42,264 | ) | ||||
Deferred income taxes and investment tax credits, net |
41,457 | 16,503 | ||||||
Accrued compensation and retirement benefits |
1,085 | 2,600 | ||||||
Accrued regulatory obligations |
(1,193 | ) | (632 | ) | ||||
Pension trust contribution |
(45,000 | ) | | |||||
Cash collateral from (to) suppliers, net |
(14 | ) | 343 | |||||
Increase (decrease) in operating assets- |
||||||||
Receivables |
(48,807 | ) | 52,754 | |||||
Prepayments and other current assets |
(9,758 | ) | 3,608 | |||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
3,661 | (61,195 | ) | |||||
Accrued taxes |
(701 | ) | (4,007 | ) | ||||
Other |
5,771 | (8,960 | ) | |||||
Net cash used for operating activities |
(82,584 | ) | (20,861 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(105 | ) | (111 | ) | ||||
Short-term borrowings, net |
| (225,975 | ) | |||||
Common stock dividend payments |
(34,000 | ) | (130,000 | ) | ||||
Other |
(1,742 | ) | (112 | ) | ||||
Net cash used for financing activities |
(35,847 | ) | (356,198 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(17,386 | ) | (20,237 | ) | ||||
Leasehold improvement payments from associated companies |
| 32,829 | ||||||
Loans to associated companies, net |
(32,050 | ) | (10,818 | ) | ||||
Redemptions of lessor notes |
21,739 | 20,485 | ||||||
Sales of investment securities held in trusts |
28,401 | 106,814 | ||||||
Purchases of investment securities held in trusts |
(30,050 | ) | (107,978 | ) | ||||
Other |
(1,473 | ) | (2,905 | ) | ||||
Net cash provided from (used for) investing activities |
(30,819 | ) | 18,190 | |||||
Net change in cash and cash equivalents |
(149,250 | ) | (358,869 | ) | ||||
Cash and cash equivalents at beginning of period |
149,262 | 436,712 | ||||||
Cash and cash equivalents at end of period |
$ | 12 | $ | 77,843 | ||||
16
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 576,977 | $ | 709,606 | $ | 1,211,000 | $ | 1,400,998 | ||||||||
Excise tax collections |
11,120 | 11,012 | 23,607 | 23,364 | ||||||||||||
Total revenues |
588,097 | 720,618 | 1,234,607 | 1,424,362 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power |
328,463 | 410,470 | 698,631 | 824,486 | ||||||||||||
Other operating expenses |
78,603 | 75,177 | 164,682 | 170,837 | ||||||||||||
Provision for depreciation |
26,773 | 27,093 | 52,087 | 55,064 | ||||||||||||
Amortization of regulatory assets, net |
40,046 | 81,326 | 121,633 | 150,774 | ||||||||||||
General taxes |
15,115 | 14,902 | 32,526 | 31,338 | ||||||||||||
Total expenses |
489,000 | 608,968 | 1,069,559 | 1,232,499 | ||||||||||||
OPERATING INCOME |
99,097 | 111,650 | 165,048 | 191,863 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Miscellaneous income |
3,554 | 1,649 | 5,464 | 3,482 | ||||||||||||
Interest expense |
(31,125 | ) | (30,041 | ) | (61,782 | ) | (59,464 | ) | ||||||||
Capitalized interest |
618 | 156 | 1,045 | 289 | ||||||||||||
Total other expense |
(26,953 | ) | (28,236 | ) | (55,273 | ) | (55,693 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
72,144 | 83,414 | 109,775 | 136,170 | ||||||||||||
INCOME TAXES |
30,383 | 33,521 | 48,461 | 57,051 | ||||||||||||
NET INCOME |
$ | 41,761 | $ | 49,893 | $ | 61,314 | $ | 79,119 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 41,761 | $ | 49,893 | $ | 61,314 | $ | 79,119 | ||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
4,290 | 4,135 | 8,511 | 20,063 | ||||||||||||
Unrealized gain on derivative hedges |
69 | 69 | 138 | 138 | ||||||||||||
Other comprehensive income |
4,359 | 4,204 | 8,649 | 20,201 | ||||||||||||
Income tax expense related to other comprehensive income |
1,612 | 1,441 | 3,202 | 7,999 | ||||||||||||
Other comprehensive income, net of tax |
2,747 | 2,763 | 5,447 | 12,202 | ||||||||||||
COMPREHENSIVE INCOME |
$ | 44,508 | $ | 52,656 | $ | 66,761 | $ | 91,321 | ||||||||
17
June 30, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 42 | $ | 4 | ||||
Receivables- |
||||||||
Customers, net of allowance for uncollectible accounts of $3,306 in 2011
and $3,769 in 2010 |
259,313 | 323,044 | ||||||
Associated companies |
66,069 | 53,780 | ||||||
Other |
25,580 | 26,119 | ||||||
Notes receivable associated companies |
16,288 | 177,228 | ||||||
Prepaid taxes |
135,679 | 10,889 | ||||||
Other |
15,421 | 12,654 | ||||||
518,392 | 603,718 | |||||||
UTILITY PLANT: |
||||||||
In service |
4,589,369 | 4,562,781 | ||||||
Less Accumulated provision for depreciation |
1,682,577 | 1,656,939 | ||||||
2,906,792 | 2,905,842 | |||||||
Construction work in progress |
112,573 | 63,535 | ||||||
3,019,365 | 2,969,377 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Nuclear fuel disposal trust |
212,419 | 207,561 | ||||||
Nuclear plant decommissioning trusts |
190,422 | 181,851 | ||||||
Other |
2,118 | 2,104 | ||||||
404,959 | 391,516 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
1,810,936 | 1,810,936 | ||||||
Regulatory assets |
469,490 | 513,395 | ||||||
Other |
34,028 | 27,938 | ||||||
2,314,454 | 2,352,269 | |||||||
$ | 6,257,170 | $ | 6,316,880 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 33,315 | $ | 32,402 | ||||
Short-term borrowings- |
||||||||
Associated companies |
360,917 | | ||||||
Other |
50,000 | | ||||||
Accounts payable- |
||||||||
Associated companies |
56,544 | 28,571 | ||||||
Other |
159,720 | 158,442 | ||||||
Accrued compensation and benefits |
35,578 | 35,232 | ||||||
Customer deposits |
23,684 | 23,385 | ||||||
Accrued taxes |
1,346 | 2,509 | ||||||
Accrued interest |
18,059 | 18,111 | ||||||
Other |
13,487 | 22,263 | ||||||
752,650 | 320,915 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, $10 par value, authorized 16,000,000 shares-
13,628,447 shares outstanding |
136,284 | 136,284 | ||||||
Other paid-in capital |
2,008,847 | 2,508,874 | ||||||
Accumulated other comprehensive loss |
(248,095 | ) | (253,542 | ) | ||||
Retained earnings |
288,484 | 227,170 | ||||||
Total common stockholders equity |
2,185,520 | 2,618,786 | ||||||
Long-term debt and other long-term obligations |
1,754,582 | 1,769,849 | ||||||
3,940,102 | 4,388,635 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
761,844 | 715,527 | ||||||
Power purchase contract liability |
239,943 | 233,492 | ||||||
Nuclear fuel disposal costs |
196,868 | 196,768 | ||||||
Retirement benefits |
71,711 | 182,364 | ||||||
Asset retirement obligations |
111,831 | 108,297 | ||||||
Other |
182,221 | 170,882 | ||||||
1,564,418 | 1,607,330 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9) |
||||||||
$ | 6,257,170 | $ | 6,316,880 | |||||
18
Six Months Ended | ||||||||
June 30 | ||||||||
(In thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 61,314 | $ | 79,119 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
52,087 | 55,064 | ||||||
Amortization of regulatory assets, net |
121,633 | 150,774 | ||||||
Deferred purchased power and other costs |
(70,998 | ) | (67,664 | ) | ||||
Deferred income taxes and investment tax credits, net |
51,222 | (1,425 | ) | |||||
Accrued compensation and retirement benefits |
1,319 | 2,608 | ||||||
Cash collateral paid, net |
(235 | ) | (23,400 | ) | ||||
Pension trust contribution |
(105,000 | ) | | |||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
58,466 | (46,788 | ) | |||||
Prepaid taxes |
(124,790 | ) | (111,968 | ) | ||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
13,856 | 11,924 | ||||||
Accrued taxes |
(1,167 | ) | 10,368 | |||||
Other |
612 | (6,446 | ) | |||||
Net cash provided from operating activities |
58,319 | 52,166 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Short-term borrowings, net |
410,917 | 57,850 | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(14,671 | ) | (13,830 | ) | ||||
Common stock dividend payments |
| (90,000 | ) | |||||
Equity payment to parent |
(500,000 | ) | | |||||
Other |
(1,452 | ) | | |||||
Net cash used for financing activities |
(105,206 | ) | (45,980 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(98,153 | ) | (80,727 | ) | ||||
Loans to associated companies, net |
160,940 | 85,049 | ||||||
Sales of investment securities held in trusts |
375,885 | 281,242 | ||||||
Purchases of investment securities held in trusts |
(385,448 | ) | (289,454 | ) | ||||
Other |
(6,299 | ) | (2,224 | ) | ||||
Net cash provided from (used for) investing activities |
46,925 | (6,114 | ) | |||||
Net change in cash and cash equivalents |
38 | 72 | ||||||
Cash and cash equivalents at beginning of period |
4 | 27 | ||||||
Cash and cash equivalents at end of period |
$ | 42 | $ | 99 | ||||
19
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 265,363 | $ | 422,030 | $ | 603,779 | $ | 873,590 | ||||||||
Gross receipts tax collections |
14,601 | 20,629 | 33,401 | 42,196 | ||||||||||||
Total revenues |
279,964 | 442,659 | 637,180 | 915,786 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
34,935 | 149,000 | 84,824 | 310,080 | ||||||||||||
Purchased power from non-affiliates |
100,836 | 85,276 | 253,879 | 177,204 | ||||||||||||
Other operating expenses |
50,075 | 90,151 | 97,307 | 192,134 | ||||||||||||
Provision for depreciation |
12,766 | 13,440 | 25,189 | 26,198 | ||||||||||||
Amortization of regulatory assets, net |
22,167 | 48,589 | 54,261 | 97,389 | ||||||||||||
General taxes |
17,152 | 19,894 | 39,302 | 41,634 | ||||||||||||
Total expenses |
237,931 | 406,350 | 554,762 | 844,639 | ||||||||||||
OPERATING INCOME |
42,033 | 36,309 | 82,418 | 71,147 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Interest income |
13 | 880 | 106 | 2,097 | ||||||||||||
Miscellaneous income |
915 | 1,381 | 1,885 | 3,554 | ||||||||||||
Interest expense |
(13,130 | ) | (13,002 | ) | (26,187 | ) | (26,775 | ) | ||||||||
Capitalized interest |
228 | 159 | 375 | 285 | ||||||||||||
Total other expense |
(11,974 | ) | (10,582 | ) | (23,821 | ) | (20,839 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
30,059 | 25,727 | 58,597 | 50,308 | ||||||||||||
INCOME TAXES |
13,281 | 8,618 | 19,232 | 20,884 | ||||||||||||
NET INCOME |
$ | 16,778 | $ | 17,109 | $ | 39,365 | $ | 29,424 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 16,778 | $ | 17,109 | $ | 39,365 | $ | 29,424 | ||||||||
OTHER COMPREHENSIVE INCOME |
||||||||||||||||
Pension and other postretirement benefits |
2,227 | 2,162 | 4,190 | 11,871 | ||||||||||||
Unrealized gain on derivative hedges |
84 | 84 | 168 | 168 | ||||||||||||
Other comprehensive income |
2,311 | 2,246 | 4,358 | 12,039 | ||||||||||||
Income tax expense related to other comprehensive income |
869 | 724 | 1,632 | 4,901 | ||||||||||||
Other comprehensive income, net of tax |
1,442 | 1,522 | 2,726 | 7,138 | ||||||||||||
COMPREHENSIVE INCOME |
$ | 18,220 | $ | 18,631 | $ | 42,091 | $ | 36,562 | ||||||||
20
June 30, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 157 | $ | 243,220 | ||||
Receivables- |
||||||||
Customers, net of allowance for uncollectible accounts of $3,087 in 2011
and $3,868 in 2010 |
143,820 | 178,522 | ||||||
Associated companies |
12,849 | 24,920 | ||||||
Other |
16,437 | 13,007 | ||||||
Notes receivable from associated companies |
10,432 | 11,028 | ||||||
Prepaid taxes |
27,083 | 343 | ||||||
Other |
1,443 | 2,289 | ||||||
212,221 | 473,329 | |||||||
UTILITY PLANT: |
||||||||
In service |
2,266,437 | 2,247,853 | ||||||
Less Accumulated provision for depreciation |
859,055 | 846,003 | ||||||
1,407,382 | 1,401,850 | |||||||
Construction work in progress |
42,604 | 23,663 | ||||||
1,449,986 | 1,425,513 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
301,188 | 289,328 | ||||||
Other |
840 | 884 | ||||||
302,028 | 290,212 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
416,499 | 416,499 | ||||||
Regulatory assets |
341,488 | 295,856 | ||||||
Power purchase contract asset |
65,861 | 111,562 | ||||||
Other |
54,587 | 31,699 | ||||||
878,435 | 855,616 | |||||||
$ | 2,842,670 | $ | 3,044,670 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 28,760 | $ | 28,760 | ||||
Short-term borrowings- |
||||||||
Associated companies |
238,399 | 124,079 | ||||||
Other |
50,000 | | ||||||
Accounts payable- |
||||||||
Associated companies |
24,377 | 33,942 | ||||||
Other |
48,262 | 29,862 | ||||||
Accrued taxes |
12,844 | 60,856 | ||||||
Accrued interest |
16,011 | 16,114 | ||||||
Other |
29,605 | 29,278 | ||||||
448,258 | 322,891 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, without par value, authorized 900,000 shares,
740,905 and 859,500 shares outstanding, respectively |
842,023 | 1,197,076 | ||||||
Accumulated other comprehensive loss |
(139,657 | ) | (142,383 | ) | ||||
Retained earnings |
46,772 | 32,406 | ||||||
Total common stockholders equity |
749,138 | 1,087,099 | ||||||
Long-term debt and other long-term obligations |
704,486 | 718,860 | ||||||
1,453,624 | 1,805,959 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
494,716 | 473,009 | ||||||
Accumulated deferred investment tax credits |
6,656 | 6,866 | ||||||
Nuclear fuel disposal costs |
44,471 | 44,449 | ||||||
Asset retirement obligations |
199,162 | 192,659 | ||||||
Retirement benefits |
22,276 | 29,121 | ||||||
Power purchase contract liability |
121,924 | 116,027 | ||||||
Other |
51,583 | 53,689 | ||||||
940,788 | 915,820 | |||||||
COMMITMENTS AND CONTINGENCIES (Note 9) |
||||||||
$ | 2,842,670 | $ | 3,044,670 | |||||
21
Six Months Ended | ||||||||
June 30 | ||||||||
(In thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 39,365 | $ | 29,424 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
25,189 | 26,198 | ||||||
Amortization of regulatory assets, net |
54,261 | 97,389 | ||||||
Deferred costs recoverable as regulatory assets |
(41,699 | ) | (38,358 | ) | ||||
Deferred income taxes and investment tax credits, net |
11,972 | (12,079 | ) | |||||
Accrued compensation and retirement benefits |
(510 | ) | (1,573 | ) | ||||
Cash collateral from suppliers, net |
174 | 50 | ||||||
Pension trust contribution |
(35,000 | ) | | |||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
46,240 | (29,439 | ) | |||||
Prepaid taxes |
(26,740 | ) | (31,246 | ) | ||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
5,148 | 733 | ||||||
Accrued taxes |
(47,676 | ) | 9,519 | |||||
Accrued interest |
(103 | ) | (1,277 | ) | ||||
Other |
10,903 | 7,553 | ||||||
Net cash provided from operating activities |
41,524 | 56,894 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Short-term borrowings, net |
164,320 | 17,898 | ||||||
Redemptions and Repayments- |
||||||||
Common stock |
(150,000 | ) | | |||||
Long-term debt |
(14,784 | ) | (100,000 | ) | ||||
Common stock dividend payments |
(80,000 | ) | | |||||
Equity payment to parent |
(150,000 | ) | | |||||
Net cash used for financing activities |
(230,464 | ) | (82,102 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(46,647 | ) | (54,405 | ) | ||||
Sales of investment securities held in trusts |
501,260 | 376,610 | ||||||
Purchases of investment securities held in trusts |
(506,220 | ) | (381,219 | ) | ||||
Loans to associated companies, net |
596 | 85,943 | ||||||
Other |
(3,112 | ) | (1,715 | ) | ||||
Net cash provided from (used for) investing activities |
(54,123 | ) | 25,214 | |||||
Net change in cash and cash equivalents |
(243,063 | ) | 6 | |||||
Cash and cash equivalents at beginning of period |
243,220 | 120 | ||||||
Cash and cash equivalents at end of period |
$ | 157 | $ | 126 | ||||
22
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(In thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
STATEMENTS OF INCOME |
||||||||||||||||
REVENUES: |
||||||||||||||||
Electric sales |
$ | 238,942 | $ | 350,335 | $ | 547,258 | $ | 736,271 | ||||||||
Gross receipts tax collections |
12,727 | 16,162 | 29,256 | 33,686 | ||||||||||||
Total revenues |
251,669 | 366,497 | 576,514 | 769,957 | ||||||||||||
EXPENSES: |
||||||||||||||||
Purchased power from affiliates |
54,635 | 152,945 | 102,119 | 321,345 | ||||||||||||
Purchased power from non-affiliates |
64,459 | 86,829 | 205,895 | 178,252 | ||||||||||||
Other operating expenses |
44,570 | 67,070 | 85,898 | 139,464 | ||||||||||||
Provision for depreciation |
15,770 | 16,605 | 30,343 | 31,287 | ||||||||||||
Amortization (deferral) of regulatory assets, net |
12,608 | (10,522 | ) | 25,615 | (20,488 | ) | ||||||||||
General taxes |
14,665 | 18,647 | 35,401 | 35,181 | ||||||||||||
Total expenses |
206,707 | 331,574 | 485,271 | 685,041 | ||||||||||||
OPERATING INCOME |
44,962 | 34,923 | 91,243 | 84,916 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Miscellaneous income |
644 | 1,310 | 669 | 2,923 | ||||||||||||
Interest expense |
(17,361 | ) | (17,630 | ) | (34,595 | ) | (34,920 | ) | ||||||||
Capitalized interest |
41 | 183 | 63 | 323 | ||||||||||||
Total other expense |
(16,676 | ) | (16,137 | ) | (33,863 | ) | (31,674 | ) | ||||||||
INCOME BEFORE INCOME TAXES |
28,286 | 18,786 | 57,380 | 53,242 | ||||||||||||
INCOME TAXES |
13,568 | 5,812 | 25,356 | 22,969 | ||||||||||||
NET INCOME |
$ | 14,718 | $ | 12,974 | $ | 32,024 | $ | 30,273 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
NET INCOME |
$ | 14,718 | $ | 12,974 | $ | 32,024 | $ | 30,273 | ||||||||
OTHER COMPREHENSIVE INCOME: |
||||||||||||||||
Pension and other postretirement benefits |
1,890 | 1,830 | 3,475 | 10,377 | ||||||||||||
Unrealized gain on derivative hedges |
17 | 16 | 33 | 32 | ||||||||||||
Other comprehensive income |
1,907 | 1,846 | 3,508 | 10,409 | ||||||||||||
Income tax expense related to other comprehensive income |
678 | 483 | 1,233 | 3,767 | ||||||||||||
Other comprehensive income, net of tax |
1,229 | 1,363 | 2,275 | 6,642 | ||||||||||||
COMPREHENSIVE INCOME |
$ | 15,947 | $ | 14,337 | $ | 34,299 | $ | 36,915 | ||||||||
23
June 30, | December 31, | |||||||
(In thousands) | 2011 | 2010 | ||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 2 | $ | 5 | ||||
Receivables- |
||||||||
Customers, net of allowance for uncollectible accounts of $2,856 in 2011
and $3,369 in 2010 |
121,511 | 148,864 | ||||||
Associated companies |
65,989 | 54,052 | ||||||
Other |
11,420 | 11,314 | ||||||
Notes receivable from associated companies |
13,498 | 14,404 | ||||||
Prepaid taxes |
26,372 | 14,026 | ||||||
Other |
1,423 | 1,592 | ||||||
240,215 | 244,257 | |||||||
UTILITY PLANT: |
||||||||
In service |
2,552,303 | 2,532,629 | ||||||
Less Accumulated provision for depreciation |
947,315 | 935,259 | ||||||
1,604,988 | 1,597,370 | |||||||
Construction work in progress |
62,592 | 30,505 | ||||||
1,667,580 | 1,627,875 | |||||||
OTHER PROPERTY AND INVESTMENTS: |
||||||||
Nuclear plant decommissioning trusts |
162,154 | 152,928 | ||||||
Non-utility generation trusts |
126,786 | 80,244 | ||||||
Other |
292 | 297 | ||||||
289,232 | 233,469 | |||||||
DEFERRED CHARGES AND OTHER ASSETS: |
||||||||
Goodwill |
768,628 | 768,628 | ||||||
Regulatory assets |
222,804 | 163,407 | ||||||
Power purchase contract asset |
4,000 | 5,746 | ||||||
Other |
15,272 | 19,287 | ||||||
1,010,704 | 957,068 | |||||||
$ | 3,207,731 | $ | 3,062,669 | |||||
LIABILITIES AND CAPITALIZATION |
||||||||
CURRENT LIABILITIES: |
||||||||
Currently payable long-term debt |
$ | 45,000 | $ | 45,000 | ||||
Short-term borrowings- |
||||||||
Associated companies |
159,902 | 101,338 | ||||||
Accounts payable- |
||||||||
Associated companies |
77,121 | 35,626 | ||||||
Other |
29,217 | 41,420 | ||||||
Accrued taxes |
3,397 | 5,075 | ||||||
Accrued interest |
17,454 | 17,378 | ||||||
Other |
23,280 | 22,541 | ||||||
355,371 | 268,378 | |||||||
CAPITALIZATION: |
||||||||
Common stockholders equity- |
||||||||
Common stock, $20 par value, authorized 5,400,000 shares-
4,427,577 shares outstanding |
88,552 | 88,552 | ||||||
Other paid-in capital |
913,486 | 913,519 | ||||||
Accumulated other comprehensive loss |
(161,251 | ) | (163,526 | ) | ||||
Retained earnings |
23,017 | 60,993 | ||||||
Total common stockholders equity |
863,804 | 899,538 | ||||||
Long-term debt and other long-term obligations |
1,072,417 | 1,072,262 | ||||||
1,936,221 | 1,971,800 | |||||||
NONCURRENT LIABILITIES: |
||||||||
Accumulated deferred income taxes |
415,899 | 371,877 | ||||||
Retirement benefits |
188,407 | 187,621 | ||||||
Power purchase contract liability |
160,130 | 116,972 | ||||||
Asset retirement obligations |
101,441 | 98,132 | ||||||
Other |
50,262 | 47,889 | ||||||
916,139 | 822,491 | |||||||
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9) |
||||||||
$ | 3,207,731 | $ | 3,062,669 | |||||
24
Six Months Ended | ||||||||
June 30 | ||||||||
(In thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 32,024 | $ | 30,273 | ||||
Adjustments to reconcile net income to net cash from operating activities- |
||||||||
Provision for depreciation |
30,343 | 31,287 | ||||||
Amortization (deferral) of regulatory assets, net |
25,615 | (20,488 | ) | |||||
Deferred costs recoverable as regulatory assets |
(38,291 | ) | (38,955 | ) | ||||
Deferred income taxes and investment tax credits, net |
46,687 | 42,943 | ||||||
Accrued compensation and retirement benefits |
4,733 | 4,216 | ||||||
Cash collateral paid, net |
(1,276 | ) | (3,613 | ) | ||||
Decrease (increase) in operating assets- |
||||||||
Receivables |
19,561 | 3,266 | ||||||
Prepaid taxes |
(12,346 | ) | (37,504 | ) | ||||
Increase (decrease) in operating liabilities- |
||||||||
Accounts payable |
23,449 | (4,603 | ) | |||||
Accrued taxes |
(12,373 | ) | (1,339 | ) | ||||
Other |
13,153 | 10,227 | ||||||
Net cash provided from operating activities |
131,279 | 15,710 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
New Financing- |
||||||||
Long-term debt |
25,000 | | ||||||
Short-term borrowings, net |
58,564 | 25,313 | ||||||
Redemptions and Repayments- |
||||||||
Long-term debt |
(25,000 | ) | | |||||
Common stock dividend payments |
(70,000 | ) | | |||||
Other |
(1,353 | ) | 5 | |||||
Net cash provided from (used for) financing activities |
(12,789 | ) | 25,318 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Property additions |
(64,177 | ) | (58,293 | ) | ||||
Loans to
associated companies, net |
906 | 498 | ||||||
Sales of investment securities held in trusts |
265,223 | 133,934 | ||||||
Purchases of investment securities held in trusts |
(314,738 | ) | (113,067 | ) | ||||
Other |
(5,707 | ) | (4,104 | ) | ||||
Net cash used for investing activities |
(118,493 | ) | (41,032 | ) | ||||
Net change in cash and cash equivalents |
(3 | ) | (4 | ) | ||||
Cash and cash equivalents at beginning of period |
5 | 14 | ||||||
Cash and cash equivalents at end of period |
$ | 2 | $ | 10 | ||||
25
26
Shares of Allegheny common stock outstanding on February 24, 2011 |
170 | |||
Exchange ratio |
0.667 | |||
Number of shares of FirstEnergy common stock issued |
113 | |||
Closing price of FirstEnergy common stock on February 24, 2011 |
$ | 38.16 | ||
Fair value of shares issued by FirstEnergy |
$ | 4,327 | ||
Fair value of replacement share-based compensation awards
relating to pre-merger service |
27 | |||
Total consideration transferred |
$ | 4,354 | ||
27
(In millions) | ||||
Current assets |
$ | 1,494 | ||
Property, plant and equipment |
9,656 | |||
Investments |
138 | |||
Goodwill |
881 | |||
Other noncurrent assets |
1,347 | |||
Current liabilities |
(716 | ) | ||
Noncurrent liabilities |
(3,452 | ) | ||
Long-term debt and other long-term obligations |
(4,994 | ) | ||
$ | 4,354 | |||
Competitive | Regulated | |||||||||||||||||||
Regulated | Energy | Independent | Other/ | |||||||||||||||||
(In millions) | Distribution | Services | Transmission | Corporate | Consolidated | |||||||||||||||
Balance as of December 31, 2010 |
$ | 5,551 | $ | 24 | $ | | $ | | $ | 5,575 | ||||||||||
Merger with Allegheny |
| 881 | | | 881 | |||||||||||||||
Balance as of June 30, 2011 |
$ | 5,551 | $ | 905 | $ | | $ | | $ | 6,456 | ||||||||||
28
Preliminary | Weighted Average | |||||||
(In millions) | Valuation | Amortization Period | ||||||
Above market contracts: |
||||||||
Energy contracts |
$ | 189 | 10 years | |||||
NUG contracts |
124 | 25 years | ||||||
Coal supply contracts |
516 | 8 years | ||||||
829 | ||||||||
Below market contracts: |
||||||||
NUG contracts |
143 | 13 years | ||||||
Coal supply contracts |
83 | 7 years | ||||||
Transportation contract |
35 | 8 years | ||||||
261 | ||||||||
Net intangible assets |
$ | 568 | ||||||
Intangible | ||||
(In millions) | Assets | |||
Purchase contract assets |
||||
NUG |
$ | 198 | ||
OVEC |
54 | |||
252 | ||||
Intangible assets |
||||
Coal contracts |
487 | |||
FES customer intangible assets |
129 | |||
Energy contracts |
105 | |||
721 | ||||
Total intangible assets |
$ | 973 | ||
29
April 1 | February 26 | |||||||
(In millions, except per share amounts) | June 30, 2011 | June 30, 2011 | ||||||
Total revenues |
$ | 1,181 | $ | 1,618 | ||||
Earnings available to FirstEnergy Corp.(1) |
63 | 17 | ||||||
Basic Earnings Per Share |
$ | 0.15 | $ | 0.04 | ||||
Diluted Earnings Per Share |
$ | 0.15 | $ | 0.04 |
(1) | Includes Alleghenys after-tax merger costs of $4 million and $56 million,
respectively. |
Three Months Ended | Six Months Ended | |||||||||||||||
(Pro forma amounts in millions, except | June 30 | June 30 | ||||||||||||||
per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues |
$ | 4,062 | $ | 4,401 | $ | 8,848 | $ | 9,086 | ||||||||
Earnings available to FirstEnergy |
$ | 186 | $ | 389 | $ | 323 | $ | 644 | ||||||||
Basic Earnings Per Share |
$ | 0.44 | $ | 0.93 | $ | 0.77 | $ | 1.54 | ||||||||
Diluted Earnings Per Share |
$ | 0.44 | $ | 0.93 | $ | 0.77 | $ | 1.53 | ||||||||
30
Three Months | Six Months | |||||||||||||||
Reconciliation of Basic and Diluted Earnings per Share | Ended June 30 | Ended June 30 | ||||||||||||||
of Common Stock | 2011 | 2010 | 2011 | 2010 | ||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Earnings available to FirstEnergy Corp. |
$ | 181 | $ | 265 | $ | 231 | $ | 420 | ||||||||
Weighted average number of basic shares outstanding(1) |
418 | 304 | 380 | 304 | ||||||||||||
Assumed exercise of dilutive stock options and awards |
2 | 1 | 2 | 1 | ||||||||||||
Weighted average number of diluted shares outstanding(1) |
420 | 305 | 382 | 305 | ||||||||||||
Basic earnings per share of common stock |
$ | 0.43 | $ | 0.87 | $ | 0.61 | $ | 1.38 | ||||||||
Diluted earnings per share of common stock |
$ | 0.43 | $ | 0.87 | $ | 0.61 | $ | 1.37 | ||||||||
(1) | Includes 113 million shares issued to AE stockholders for the periods subsequent to
the merger date. (See Note 2) |
June 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(In millions) | ||||||||||||||||
FirstEnergy(1) |
$ | 18,371 | $ | 19,436 | $ | 13,928 | $ | 14,845 | ||||||||
FES |
4,056 | 4,310 | 4,279 | 4,403 | ||||||||||||
OE |
1,158 | 1,367 | 1,159 | 1,321 | ||||||||||||
CEI |
1,831 | 2,083 | 1,853 | 2,035 | ||||||||||||
TE |
600 | 690 | 600 | 653 | ||||||||||||
JCP&L |
1,795 | 2,008 | 1,810 | 1,962 | ||||||||||||
Met-Ed |
729 | 828 | 742 | 821 | ||||||||||||
Penelec |
1,120 | 1,231 | 1,120 | 1,189 |
(1) | Includes debt assumed in the Allegheny merger (See Note 2) with a carrying value
and a fair value as of June 30, 2011 of $4,530 million and $4,127 million, respectively. |
31
June 30, 2011(1) | December 31, 2010(2) | |||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Basis | Gains | Losses | Value | Basis | Gains | Losses | Value | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
FirstEnergy |
$ | 2,015 | $ | 48 | $ | | $ | 2,063 | $ | 1,699 | $ | 31 | $ | | $ | 1,730 | ||||||||||||||||
FES |
1,023 | 26 | | 1,049 | 980 | 13 | | 993 | ||||||||||||||||||||||||
OE |
128 | 3 | | 131 | 123 | 1 | | 124 | ||||||||||||||||||||||||
TE |
52 | 1 | | 53 | 42 | | | 42 | ||||||||||||||||||||||||
JCP&L |
353 | 9 | | 362 | 281 | 9 | | 290 | ||||||||||||||||||||||||
Met-Ed |
249 | 5 | | 254 | 127 | 4 | | 131 | ||||||||||||||||||||||||
Penelec |
210 | 4 | | 214 | 145 | 4 | | 149 | ||||||||||||||||||||||||
Equity securities |
||||||||||||||||||||||||||||||||
FirstEnergy |
$ | 187 | $ | 11 | $ | | $ | 198 | $ | 268 | $ | 69 | $ | | $ | 337 | ||||||||||||||||
FES |
90 | 6 | | 96 | | | | | ||||||||||||||||||||||||
TE |
24 | 2 | | 26 | | | | | ||||||||||||||||||||||||
JCP&L |
21 | 1 | | 22 | 80 | 17 | | 97 | ||||||||||||||||||||||||
Met-Ed |
32 | 1 | | 33 | 125 | 35 | | 160 | ||||||||||||||||||||||||
Penelec |
20 | 1 | | 21 | 63 | 16 | | 79 |
(1) | Excludes cash investments, receivables, payables, deferred taxes and accrued
income: FirstEnergy $130 million; FES $39 million; OE $3 million; JCP&L $19 million;
Met-Ed $14 million and Penelec $55 million. |
|
(2) | Excludes cash investments, receivables, payables, deferred taxes and accrued
income: FirstEnergy $193 million; FES $153 million; OE $3 million; TE $34 million;
JCP&L $3 million; Met-Ed $(3) million and Penelec $4 million. |
32
Three Months Ended June 30, | ||||||||||||||||
Interest and | ||||||||||||||||
2011 | Sales Proceeds | Realized Gains | Realized Losses | Dividend Income | ||||||||||||
(In millions) | ||||||||||||||||
FirstEnergy |
$ | 734 | $ | 22 | $ | (16 | ) | $ | 28 | |||||||
FES |
297 | 10 | (7 | ) | 17 | |||||||||||
OE |
12 | | | 1 | ||||||||||||
TE |
15 | 1 | (1 | ) | 1 | |||||||||||
JCP&L |
159 | 4 | (2 | ) | 4 | |||||||||||
Met-Ed |
165 | 4 | (3 | ) | 3 | |||||||||||
Penelec |
86 | 3 | (3 | ) | 2 |
Interest and | ||||||||||||||||
2010 | Sales Proceeds | Realized Gains | Realized Losses | Dividend Income | ||||||||||||
(In millions) | ||||||||||||||||
FirstEnergy |
$ | 1,183 | $ | 46 | $ | (36 | ) | $ | 16 | |||||||
FES |
685 | 41 | (35 | ) | 9 | |||||||||||
OE |
57 | 2 | | | ||||||||||||
TE |
76 | 2 | | | ||||||||||||
JCP&L |
91 | | | 3 | ||||||||||||
Met-Ed |
233 | 1 | (1 | ) | 2 | |||||||||||
Penelec |
41 | | | 2 |
Six Months Ended June 30, | ||||||||||||||||
Interest and | ||||||||||||||||
2011 | Sales Proceeds | Realized Gains | Realized Losses | Dividend Income | ||||||||||||
(In millions) | ||||||||||||||||
FirstEnergy |
$ | 1,703 | $ | 122 | $ | (45 | ) | $ | 52 | |||||||
FES |
513 | 22 | (23 | ) | 32 | |||||||||||
OE |
20 | | | 2 | ||||||||||||
TE |
28 | 1 | (2 | ) | 1 | |||||||||||
JCP&L |
376 | 26 | (6 | ) | 8 | |||||||||||
Met-Ed |
501 | 48 | (7 | ) | 5 | |||||||||||
Penelec |
265 | 25 | (7 | ) | 4 |
Interest and | ||||||||||||||||
2010 | Sales Proceeds | Realized Gains | Realized Losses | Dividend Income | ||||||||||||
(In millions) | ||||||||||||||||
FirstEnergy |
$ | 1,915 | $ | 83 | $ | (86 | ) | $ | 37 | |||||||
FES |
957 | 54 | (58 | ) | 22 | |||||||||||
OE |
60 | 2 | | 1 | ||||||||||||
TE |
107 | 3 | | 1 | ||||||||||||
JCP&L |
281 | 9 | (9 | ) | 7 | |||||||||||
Met-Ed |
377 | 9 | (12 | ) | 3 | |||||||||||
Penelec |
134 | 6 | (7 | ) | 3 |
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Basis | Gains | Losses | Value | Basis | Gains | Losses | Value | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Debt Securities |
||||||||||||||||||||||||||||||||
FirstEnergy |
$ | 414 | $ | 84 | $ | | 498 | $ | 476 | $ | 91 | $ | | $ | 567 | |||||||||||||||||
OE |
178 | 45 | | 223 | 190 | 51 | | 241 | ||||||||||||||||||||||||
CEI |
287 | 39 | | 326 | 340 | 41 | | 381 |
33
June 30, 2011 | December 31, 2010 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(In millions) | ||||||||||||||||
Notes Receivable |
||||||||||||||||
FirstEnergy |
$ | 6 | $ | 7 | $ | 7 | $ | 8 | ||||||||
TE |
82 | 94 | 104 | 118 |
34
Level 1
|
Quoted prices for identical instruments in active markets. | |
Level 2
|
Quoted prices for similar instruments in active markets; | |
quoted prices for identical or similar instruments in markets that are not active; and | ||
model-derived valuations for which all significant inputs are observable market data. | ||
Level 3
|
Valuation inputs are unobservable and significant to the fair value measurement. |
35
June 30, 2011 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ | | $ | 868 | $ | | $ | 868 | ||||||||
Derivative assets commodity contracts |
| 312 | | 312 | ||||||||||||
Derivative assets FTRs |
| | 13 | 13 | ||||||||||||
Derivative assets interest rate swaps |
| 4 | | 4 | ||||||||||||
Derivative assets NUG contracts(1) |
| | 75 | 75 | ||||||||||||
Equity securities(2) |
198 | | | 198 | ||||||||||||
Foreign government debt securities |
| 206 | | 206 | ||||||||||||
U.S. government debt securities |
| 673 | | 673 | ||||||||||||
U.S. state debt securities |
| 306 | | 306 | ||||||||||||
Other(4) |
| 146 | | 146 | ||||||||||||
Total assets |
$ | 198 | $ | 2,515 | $ | 88 | $ | 2,801 | ||||||||
Liabilities |
||||||||||||||||
Derivative liabilities commodity contracts |
$ | | $ | (362 | ) | $ | | $ | (362 | ) | ||||||
Derivative liabilities FTRs |
| | (7 | ) | (7 | ) | ||||||||||
Derivative liabilities interest rate swaps |
| (5 | ) | | (5 | ) | ||||||||||
Derivative liabilities NUG contracts(1) |
| | (522 | ) | (522 | ) | ||||||||||
Total liabilities |
$ | | $ | (367 | ) | $ | (529 | ) | $ | (896 | ) | |||||
Net assets (liabilities)(3) |
$ | 198 | $ | 2,148 | $ | (441 | ) | $ | 1,905 | |||||||
December 31, 2010 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ | | $ | 597 | $ | | $ | 597 | ||||||||
Derivative assets commodity contracts |
| 250 | | 250 | ||||||||||||
Derivative assets NUG contracts(1) |
| | 122 | 122 | ||||||||||||
Equity securities(2) |
338 | | | 338 | ||||||||||||
Foreign government debt securities |
| 149 | | 149 | ||||||||||||
U.S. government debt securities |
| 595 | | 595 | ||||||||||||
U.S. state debt securities |
| 379 | | 379 | ||||||||||||
Other(4) |
| 219 | | 219 | ||||||||||||
Total assets |
$ | 338 | $ | 2,189 | $ | 122 | $ | 2,649 | ||||||||
Liabilities |
||||||||||||||||
Derivative liabilities commodity contracts |
$ | | $ | (348 | ) | $ | | $ | (348 | ) | ||||||
Derivative liabilities NUG contracts(1) |
| | (466 | ) | (466 | ) | ||||||||||
Total liabilities |
$ | | $ | (348 | ) | $ | (466 | ) | $ | (814 | ) | |||||
Net assets (liabilities)(3) |
$ | 338 | $ | 1,841 | $ | (344 | ) | $ | 1,835 | |||||||
(1) | NUG contracts are generally subject to regulatory accounting and do not
materially impact earnings. |
|
(2) | NDT funds hold equity portfolios the performance of which is benchmarked against
the S&P 500 Index or Russell 3000 Index. |
|
(3) | Excludes $6 million and $(7) million as of June 30, 2011 and December 31, 2010,
respectively, of receivables, payables, deferred taxes and accrued income associated with
the financial instruments reflected within the fair value table. |
|
(4) | Primarily consists of cash and cash equivalents. |
36
Derivative Asset(1) | Derivative Liability(1) | Net(1) | ||||||||||
(In millions) | ||||||||||||
January 1, 2011 Balance |
$ | 122 | $ | (466 | ) | $ | (344 | ) | ||||
Realized gain (loss) |
| | | |||||||||
Unrealized gain (loss) |
(40 | ) | (203 | ) | (243 | ) | ||||||
Purchases |
13 | (3 | ) | 10 | ||||||||
Issuances |
| | | |||||||||
Sales |
| | | |||||||||
Settlements |
(6 | ) | 154 | 148 | ||||||||
Transfers
into Level 3 |
| (12 | ) | (12 | ) | |||||||
June 30, 2011 Balance |
$ | 89 | $ | (530 | ) | $ | (441 | ) | ||||
January 1, 2010 Balance |
$ | 200 | $ | (643 | ) | $ | (443 | ) | ||||
Realized gain (loss) |
| | | |||||||||
Unrealized gain (loss) |
(71 | ) | (110 | ) | (181 | ) | ||||||
Purchases |
| | | |||||||||
Issuances |
| | | |||||||||
Sales |
| | | |||||||||
Settlements |
(7 | ) | 287 | 280 | ||||||||
Transfers
into Level 3 |
| | | |||||||||
December 31, 2010 Balance |
$ | 122 | $ | (466 | ) | $ | (344 | ) | ||||
(1) | Changes in the fair value of NUG contracts are generally subject to
regulatory accounting and do not materially impact earnings. |
37
June 30, 2011 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ | | $ | 562 | $ | | $ | 562 | ||||||||
Derivative assets commodity contracts |
| 283 | | 283 | ||||||||||||
Derivative assets FTRs |
| | 2 | 2 | ||||||||||||
Equity securities(3) |
96 | | | 96 | ||||||||||||
Foreign government debt securities |
| 160 | | 160 | ||||||||||||
U.S. government debt securities |
| 316 | | 316 | ||||||||||||
U.S. state debt securities |
| 7 | | 7 | ||||||||||||
Other(2) |
| 42 | | 42 | ||||||||||||
Total assets |
$ | 96 | $ | 1,370 | $ | 2 | $ | 1,468 | ||||||||
Liabilities |
||||||||||||||||
Derivative liabilities commodity contracts |
$ | | $ | (327 | ) | $ | | $ | (327 | ) | ||||||
Total liabilities |
$ | | $ | (327 | ) | $ | | $ | (327 | ) | ||||||
Net assets (liabilities)(1) |
$ | 96 | $ | 1,043 | $ | 2 | $ | 1,141 | ||||||||
December 31, 2010 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ | | $ | 528 | $ | | $ | 528 | ||||||||
Derivative assets commodity contracts |
| 241 | | 241 | ||||||||||||
Foreign government debt securities |
| 147 | | 147 | ||||||||||||
U.S. government debt securities |
| 308 | | 308 | ||||||||||||
U.S. state debt securities |
| 6 | | 6 | ||||||||||||
Other(2) |
| 148 | | 148 | ||||||||||||
Total assets |
$ | | $ | 1,378 | $ | | $ | 1,378 | ||||||||
Liabilities |
||||||||||||||||
Derivative liabilities commodity contracts |
$ | | $ | (348 | ) | $ | | $ | (348 | ) | ||||||
Total liabilities |
$ | | $ | (348 | ) | $ | | $ | (348 | ) | ||||||
Net assets (liabilities)(1) |
$ | | $ | 1,030 | $ | | $ | 1,030 | ||||||||
(1) | Excludes $7 million as of December 31, 2010 of receivables, payables, deferred
taxes and accrued income associated with the financial instruments reflected within the
fair value table. |
|
(2) | Primarily consists of cash and cash equivalents. |
|
(3) | NDT funds hold equity portfolios the performance of which is benchmarked against
the S&P 500 Index or Russell 3000 Index. |
Derivative Asset | Derivative Liability | Net | ||||||||||
FTRs | FTRs | FTRs | ||||||||||
(In millions) | ||||||||||||
January 1, 2011 Balance |
$ | | $ | | $ | | ||||||
Realized gain (loss) |
| | | |||||||||
Unrealized gain (loss) |
1 | | 1 | |||||||||
Purchases |
2 | | 2 | |||||||||
Issuances |
| | | |||||||||
Sales |
| | | |||||||||
Settlements |
(1 | ) | | (1 | ) | |||||||
Transfers in (out) of Level 3 |
| | | |||||||||
June 30, 2011 Balance |
$ | 2 | $ | | $ | 2 | ||||||
38
June 30, 2011 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Assets |
||||||||||||||||
U.S. government debt securities |
$ | | $ | 131 | $ | | $ | 131 | ||||||||
Other |
| 2 | | 2 | ||||||||||||
Total assets(1) |
$ | | $ | 133 | $ | | $ | 133 | ||||||||
December 31, 2010 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Assets |
||||||||||||||||
U.S. government debt securities |
$ | | $ | 124 | $ | | $ | 124 | ||||||||
Other |
| 2 | | 2 | ||||||||||||
Total assets(1) |
$ | | $ | 126 | $ | | $ | 126 | ||||||||
(1) | Excludes $2 million and $1 million as of June 30, 2011 and December 31, 2010,
respectively, of receivables, payables, deferred taxes and accrued income associated with
the financial instruments reflected within the fair value table. |
June 30, 2011 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Assets |
||||||||||||||||
Corporate debt securities |
$ | | $ | 16 | $ | | $ | 16 | ||||||||
Equity securities(3) |
26 | | | 26 | ||||||||||||
U.S. government debt securities |
| 33 | | 33 | ||||||||||||
U.S. state debt securities |
| 1 | | 1 | ||||||||||||
Other(2) |
| 3 | | 3 | ||||||||||||
Total assets(1) |
$ | 26 | $ | 53 | $ | | $ | 79 | ||||||||
December 31, 2010 | Level 1 | Level 2 | Level 3 |