01—Abstract
Summary
Summary of the 10-K filed February 19, 2010. Cited figures are marked; the original filing is the authoritative source.
FirstEnergy Corp. (FE) filed its 2009 10-K on February 19, 2010, detailing its business operations and financial performance.
A significant event highlighted is the February 10, 2010 announcement of an Agreement and Plan of Merger with Allegheny Energy, Inc., which is expected to be completed within 12 to 14 months, subject to shareholder and regulatory approvals. The merger would create a larger, more diversified energy company. The filing also covers the company's ongoing operational activities, including generation, transmission, and distribution of electricity across its service territories in Ohio, Pennsylvania, and New Jersey, and discusses the impact of regulatory environments and economic conditions on its performance.
02—Key points
Key Highlights
- FirstEnergy announced a proposed merger with Allegheny Energy, Inc. on February 10, 2010, which is expected to create a larger, diversified energy company.
- The company operates eight electric utility subsidiaries and a generating and marketing subsidiary (FES), serving approximately 11.3 million customers across 36,100 square miles in Ohio, New Jersey, and Pennsylvania.
- FirstEnergy's generating portfolio comprises 13,970 MW of capacity, with a diverse mix including 54.2% coal-fired, 29.0% nuclear, and smaller percentages of oil/natural gas, and hydroelectric.
- The company's operations are subject to extensive federal and state regulation, with key regulatory bodies including FERC, NRC, PUCO, PPUC, and NJBPU.
- FirstEnergy is focused on capital expenditures for 2010, estimated at $1.65 billion (excluding nuclear fuel), with planned investments in transmission and distribution reliability, environmental compliance, and generation capacity.
- The company experienced a decrease in earnings available to FirstEnergy Corp. in 2009 ($1.01 billion) compared to 2008 ($1.34 billion), reflecting challenging economic conditions and mild weather impacts on sales.
- FirstEnergy is actively involved in integrating its ATSI transmission assets into PJM, a significant regulatory undertaking expected to be completed by June 1, 2011.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 19, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $12.97B$13.63B | −4.8% |
| Operating Expenses | $11.29B$10.87B | +3.9% |
| Operating Income | $1.68B$2.76B | −39.0% |
| Net Income | $872.00M$1.34B | −35.0% |
| EPS (Basic) | $2.87$4.41 | −34.9% |
| EPS (Diluted) | $2.85$4.38 | −34.9% |
| Shares Outstanding (Basic) | 304.00M304.00M | 0.0% |
| Shares Outstanding (Diluted) | 306.00M307.00M | −0.3% |
05—Questions
Frequently Asked Questions
What is the most significant strategic development for FirstEnergy as of this filing?
The most significant strategic development is the announced merger agreement with Allegheny Energy, Inc., on February 10, 2010. This transaction, if completed, is expected to create a larger, more integrated energy company, subject to shareholder and regulatory approvals.
What is FirstEnergy's generation capacity and how is it diversified?
FirstEnergy's generating portfolio includes 13,970 MW of capacity. It is diversified across several fuel sources, with the largest components being coal-fired (approximately 54.2%), nuclear (approximately 29.0%), and oil and natural gas peaking units (approximately 11.6%).
How is FirstEnergy regulated, and what are the key regulatory bodies?
FirstEnergy's utility operations are subject to comprehensive regulation at both federal and state levels. Key federal regulators include the FERC (wholesale and interstate operations) and NRC (nuclear facilities). State-level regulation involves the PUCO in Ohio, the PPUC in Pennsylvania, and the NJBPU in New Jersey.
How did the company's financial performance change in 2009 compared to 2008?
FirstEnergy reported a decrease in earnings available to FirstEnergy Corp. in 2009 to $1.01 billion, or $3.31 per share, compared to $1.34 billion, or $4.41 per share, in 2008. This decline was primarily attributed to lower revenues and the impact of recessionary economic conditions and mild weather.
06—Continue