10-KPeriod: FY2007

FIRSTENERGY CORP Annual Report, Year Ended Dec 31, 2007

Filed February 29, 2008For Securities:FE

Summary

FirstEnergy Corp.'s 2007 10-K filing details a company focused on electric utility operations across Ohio, Pennsylvania, and New Jersey, with significant generation capacity, including both fossil and nuclear assets. The company's business model is heavily influenced by extensive regulation at both federal and state levels, impacting everything from rates to operational standards. Significant efforts in 2007 included managing regulatory proceedings related to fuel cost recovery and distribution rates in Ohio, and navigating complex transmission rate design issues at the FERC. While the company has a diversified generation portfolio, a substantial portion of its operations are subject to rate regulation, with ongoing discussions and potential impacts from evolving environmental regulations, particularly concerning emissions. Capital expenditures are substantial, projected at over $7.6 billion from 2008-2012, with a significant allocation towards generation assets and environmental compliance. The company also highlighted its financial flexibility through various credit facilities and a substantial unused shelf registration statement, indicating a proactive approach to managing its capital needs.

Financial Statements
Beta
Revenue$12.80B
Operating Expenses$9.98B
Operating Income$2.82B
Net Income$1.31B
EPS (Basic)$4.27
EPS (Diluted)$4.22
Shares Outstanding (Basic)306.00M
Shares Outstanding (Diluted)310.00M

Key Highlights

  • 1FirstEnergy operates electric utility subsidiaries across Ohio, Pennsylvania, and New Jersey, serving approximately 11.3 million customers.
  • 2The company possesses a diversified generation portfolio with 14,127 MW (net) of capacity, predominantly coal-fired (54.0%) and nuclear (28.5%).
  • 3Significant capital expenditures are planned, totaling approximately $7.6 billion from 2008-2012, with a substantial portion dedicated to generation assets and environmental compliance.
  • 4FirstEnergy is subject to extensive state and federal regulation, impacting rates, operations, and environmental compliance, with ongoing proceedings in Ohio and Pennsylvania noted.
  • 5Environmental compliance is a major focus, with an estimated $1.4 billion in capital expenditures planned for 2008-2012, driven by regulations like the Clean Air Act.
  • 6The company maintains robust liquidity with approximately $3.4 billion in committed credit facilities and $2.4 billion in unused borrowing capability as of December 31, 2007.
  • 7Nuclear assets are subject to NRC oversight, with applications for operating license extensions filed and ongoing management of regulatory compliance.

Frequently Asked Questions

FirstEnergy Corp.'s primary business is the operation of eight principal electric utility operating subsidiaries across Ohio, Pennsylvania, and New Jersey. It also holds other subsidiaries involved in energy-related products and services.

FirstEnergy's consolidated generating portfolio includes 14,127 MW (net) of capacity. Approximately 54.0% is coal-fired, 28.5% is nuclear, 10.9% is oil and natural gas, and the remaining 6.6% is hydroelectric and other sources.

FirstEnergy anticipates capital expenditures of approximately $7.6 billion from 2008 through 2012, covering betterments to existing facilities, new generation capacity, environmental compliance, and transmission and distribution infrastructure upgrades.

FirstEnergy's operations are heavily regulated by federal (FERC) and state (PUCO, PPUC, NJBPU) agencies. These regulations affect retail rates, service conditions, security issuances, and environmental compliance, with the company actively managing numerous ongoing regulatory proceedings.