10-KPeriod: FY2008

FIRSTENERGY CORP Annual Report, Year Ended Dec 31, 2008

Filed February 25, 2009For Securities:FE

Summary

FirstEnergy Corp.'s 2009 10-K filing details its operations as a holding company for eight electric utility subsidiaries and its energy services subsidiary, FES. The company operates in Ohio, Pennsylvania, and New Jersey, providing electricity generation, transmission, and distribution services to millions of customers. A significant portion of the report focuses on the complex regulatory landscape governing its utilities, including rate decisions by state Public Utility Commissions (PUCO, PPUC, NJBPU) and federal regulations by FERC and NRC. The company is navigating a changing industry with a focus on reliability initiatives and compliance with evolving environmental regulations. Financially, FirstEnergy had approximately $2.4 billion in short-term indebtedness as of December 31, 2008, with substantial liquidity from its credit facilities. The company is undertaking significant capital expenditures for system improvements and environmental compliance over the next five years, totaling over $8 billion. Key areas of focus include managing regulatory proceedings, optimizing its diverse generation portfolio (coal, nuclear, gas), and adapting to market changes while ensuring reliable service and managing financial risks.

Financial Highlights

46 data points
Beta

Revenue

$13.63B

Net Income

$1.34B

9.8% Net Margin

EPS (Diluted)

$4.38

Total Assets

$33.52B

Cash & Equivalents

$545.00M

Free Cash Flow

$2.22B

Financial Statements
Beta
Revenue$13.63B
Operating Expenses$10.87B
Operating Income$2.76B
Net Income$1.34B
EPS (Basic)$4.41
EPS (Diluted)$4.38
Shares Outstanding (Basic)304.00M
Shares Outstanding (Diluted)307.00M

Key Highlights

  • 1FirstEnergy operates eight electric utility subsidiaries across Ohio, Pennsylvania, and New Jersey, serving approximately 11.3 million people.
  • 2The company's generation portfolio comprises 14,173 MW, with 53.5% coal-fired, 28.6% nuclear, and other sources.
  • 3FirstEnergy is subject to extensive regulation by state agencies (PUCO, PPUC, NJBPU) and federal agencies (FERC, NRC), impacting rates, operations, and capital expenditures.
  • 4Anticipated capital expenditures for 2009-2013 are estimated at $8.14 billion, for system improvements, environmental compliance, and generation capacity.
  • 5As of December 31, 2008, the company had approximately $2.4 billion in short-term indebtedness and substantial liquidity through various credit facilities.
  • 6The company is actively managing ongoing regulatory proceedings, particularly in Ohio concerning ESP and MRO filings, which could impact future rates and operations.
  • 7FirstEnergy is committed to reliability initiatives and managing environmental compliance costs, including those related to Clean Air Act regulations and potential climate change policies.

Frequently Asked Questions

FirstEnergy Corp. is a holding company for eight electric utility operating subsidiaries. Its principal business is providing electric service in Ohio, Pennsylvania, and New Jersey, serving approximately 11.3 million people across a combined service area of 36,100 square miles.

FirstEnergy's total generating capacity is 14,173 MW. The portfolio is diversified, with 53.5% coal-fired, 28.6% nuclear, 11.4% oil and natural gas peaking units, 3.2% hydroelectric, and 3.3% from other sources like OVEC.

FirstEnergy's utilities are subject to state-level regulation by the PUCO (Ohio), PPUC (Pennsylvania), and NJBPU (New Jersey) for retail rates and service. Federally, FERC regulates wholesale operations and transmission, while the NRC oversees nuclear facilities. The company is actively engaged in rate proceedings and compliance with evolving regulations, particularly regarding Ohio's Electric Security Plan (ESP) and Market Rate Option (MRO).

FirstEnergy anticipates capital expenditures of approximately $8.14 billion for the period 2009-2013. These expenditures are primarily allocated for system betterment, environmental compliance, and the construction of generating, transmission, and distribution facilities.

As of December 31, 2008, FirstEnergy had approximately $2.4 billion in short-term indebtedness. The company maintains substantial liquidity, with approximately $4.0 billion in committed bank credit facilities and $1.5 billion available as of January 31, 2009, which are expected to be sufficient to meet its obligations.