~~JERSEY~~UNITED ~~CENTRAL~~STATES ~~POWER~~SECURITIES ~~& LIGHT COMPANY~~ AND ~~SUBSIDIARY~~EXCHANGE COMPANY Consolidated Balance Sheets --------------------------- In Thousands -------------------------- September 30, December 31, 2001 2000 ------------- ------------ (Unaudited) ASSETS Utility Plant: Utility plant in service $3,351,697 $3,269,676 Accumulated depreciation (1,281,627) (1,212,784) --------- --------- Net utility plant in service 2,070,070 2,056,892 Construction work in progress 90,956 75,201 Other, net 13,311 13,311 --------- --------- Net utility plant 2,174,337 2,145,404 --------- --------- Other Property and Investments: Nuclear decommissioning trusts, at market (Note 1) 113,076 115,311 Nuclear fuel disposal trust, at market 137,734 126,336 Other, net 19,722 6,342 --------- --------- Total other property and investments 270,532 247,989 --------- --------- Current Assets: Cash and temporary cash investments 72,984 801 Special deposits 1,188 1,220 Accounts receivable: Customers, less provision for doubtful accounts of $13,974 for 2001 and $21,479 for 2000 194,988 156,358 Affiliates 7,642 8,520 Other 61,367 38,107 Unbilled revenues 80,369 80,864 Materials and supplies, at average cost or less 1,350 508 Deferred income taxes 16,815 20,669 Prepayments 31,201 96,916 --------- --------- Total current assets 467,904 403,963 --------- --------- Deferred Debits and Other Assets: Regulatory assets, net (Note 1) 3,167,145 3,185,072 Deferred income taxes 179,958 187,632 Other 54,389 47,295 --------- --------- Total deferred debits and other assets 3,401,492 3,419,999 -------- --------- Total Assets $6,314,265 $6,217,355 ========= ========= The accompanying notes are an integral part of the consolidated financial statements.COMMISSION

~~JERSEY CENTRAL POWER & LIGHT COMPANY AND SUBSIDIARY COMPANY Consolidated Balance Sheets --------------------------- In Thousands --------------------------- September 30~~Washington, ~~December~~D. 31, 2001 2000 ------------- ------------ (Unaudited) LIABILITIES AND CAPITALIZATION Capitalization: Common stock $ 153,713 $ 153,713 Capital surplus 510,769 510,769 Retained earnings 904,287 794,786 Accumulated other comprehensive income/(loss) (Note 3) 922 (8) --------- --------- Total common stockholder's equity 1,569,691 1,459,260 Cumulative preferred stock: With mandatory redemption 40,667 51,500 Without mandatory redemption 12,649 12,649 Company-obligated mandatorily redeemable preferred securities 125,000 125,000 Long-term debt 1,193,873 1,093,987 --------- --------- Total capitalization 2,941,880 2,742,396 --------- --------- Current Liabilities: Securities due within one year 100,846 50,847 Notes payable - 29,200 Accounts payable: Affiliates 41,020 98,526 Other 103,415 95,988 Taxes accrued 63,121 8,836 Interest accrued 31,573 23,625 Other 41,207 37,786 --------- --------- Total current liabilities 381,182 344,808 --------- --------- Deferred Credits and Other Liabilities: Deferred income taxes 941,536 866,058 Unamortized investment tax credits 14,389 17,087 Power purchase contract loss liability (Note 1) 1,514,445 1,699,473 Nuclear fuel disposal fee 162,417 156,959 Three Mile Island Unit 2 future costs (Note 1) 131,841 128,735 Other 226,575 261,839 --------- --------- Total deferred credits and other liabilities 2,991,203 3,130,151 --------- --------- Commitments and Contingencies (Note 1) Total Liabilities and Capitalization $6,314,265 $6,217,355 ========= ========= The accompanying notes are an integral part of the consolidated financial statementsC. 20549

~~JERSEY~~FORM ~~CENTRAL POWER & LIGHT COMPANY AND SUBSIDIARY COMPANY Consolidated Statements of Income~~ 10--------------------------------- (Unaudited) In Thousands ------------------------------------------- Three Months Nine Months Ended September 30, Ended September 30, ------------------ -------------------- 2001 2000 2001 2000 ---- ---- ---- ---- Operating Revenues $672,131 $605,045 $1,654,867 $1,547,940 ------- ------- --------- --------- Operating Expenses: Fuel 1,524 4,773 4,302 19,966 Power purchased and interchanged: Affiliates 2,902 6,430 14,574 37,683 Others 546,203 417,837 1,139,698 835,112 Deferred costs, net (189,228) (131,954) (303,102) (198,950) Other operation and maintenance 59,875 97,579 191,331 305,406 Depreciation and amortization 62,272 57,467 186,705 169,773 Taxes, other than income taxes 18,295 17,078 48,949 47,567 ------- ------- --------- --------- Total operating expenses 501,843 469,210 1,282,457 1,216,557 ------- ------- --------- --------- Operating Income 170,288 135,835 372,410 331,383 ------- ------- --------- --------- Other Income and Deductions: Allowance for other funds used during construction (61) 442 (117) 955 Other income, net 7,981 15,701 25,688 19,632 ------- ------ --------- ---- ---- Total other income and deductions 7,920 16,143 25,571 20,587 ------- ------- --------- --------- Income Before Interest Charges 178,208 151,978 397,981 351,970 ------- ------- --------- --------- Interest Charges: Long-term debt and notes payable 25,671 24,143 74,892 69,965 Company-obligated mandatorily redeemable preferred securities 2,675 2,675 8,025 8,025 Other interest 332 537 1,512 897 Allowance for borrowed funds used during construction 170 (620) (261) (1,439) ------- ------- --------- --------- Total interest charges 28,848 26,735 84,168 77,448 ------ ------- --------- --------- Income Before Income Taxes 149,360 125,243 313,813 274,522 Income taxes 58,214 32,450 125,231 91,725 ------- ------- --------- --------- Net Income 91,146 92,793 188,582 182,797 Preferred stock dividends 1,299 1,391 4,081 5,513 ------- ------- --------- --------- Earnings Available for Common Stock $ 89,847 $ 91,402 $ 184,501 $ 177,284 ======= ======= ========= ========= The accompanying notes are an integral part of the consolidated financial statements.Q

~~JERSEY CENTRAL POWER & LIGHT COMPANY AND SUBSIDIARY COMPANY Consolidated Statements of Cash Flows -------------------------------------~~ (~~Unaudited)~~Mark In Thousands ------------------------- Nine Months Ended September 30, ------------------------- 2001 2000 Operating Activities: ---- ---- Net income $ 188,582 $ 182,797 Adjustments to reconcile income to cash provided: Depreciation and amortization 208,290 195,620 Provision for doubtful accounts 247 6,995 Regulatory assets, net 9,113 (111,026One) Amortization of property under capital leases - 11,472 Loss on sale of investments 80 - Deferred income taxes and investment tax credits, net 67,525 285,710 Deferred costs, net (303,102) (198,950) Allowance for funds used during construction 117 (955) Changes in working capital: Receivables (61,642) (39,934) Materials and supplies (842) 95 Special deposits and prepayments 65,745 (160,487) Payables and accrued liabilities 73,079 (11,983) Due to/from affiliates (56,627) 52,108 Other, net (35,304) 8,227 -------- -------- Net cash provided by operating activities 155,261 219,689 -------- -------- Investing Activities: Capital expenditures and investments (109,006) (84,569) Contributions to decommissioning trusts (902) (130,141) Proceeds from sale of investments - 9,265 Other, net (2,852) 320 -------- -------- Net cash required by investing activities (112,760) (205,125) -------- -------- Financing Activities: Issuance of long-term debt 148,796 - Increase/(decrease) in notes payable, net (29,200) 163,000 Retirement of long-term debt - (40,000) Redemption of preferred stock (10,833) (21,667) Capital lease principal payments - (48,516) Dividends paid on common stock (75,000) (130,000) Dividends paid on preferred stock (4,081) (5,674) -------- -------- Net cash provided/(required) by financing activities 29,682 (82,857) -------- -------- Net increase/(decrease) in cash and temporary cash investments from above activities 72,183 (68,293) Cash and temporary cash investments, beginning of year 801 68,684 -------- -------- Cash and temporary cash investments, end of period $ 72,984 $ 391 ======== ======== Supplemental Disclosure: Interest and preferred dividends paid $ 77,683 $ 79,007 ======== ======== Income taxes paid/(refunded) $ 8,009 $ (40,634) ======== ======== New capital lease obligations incurred $ - $ 41,580 ======== ======== The accompanying notes are an integral part of the consolidated financial statements.

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2012

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________ to ___________________



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

1-3141	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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.



Yes þ No o		FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).



Yes þ No o		FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



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 and Jersey Central Power & Light Company

Smaller Reporting Company o	N/A

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).



Yes o No þ		FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:



		OUTSTANDING
CLASS		AS OF APRIL 30, 2012
FirstEnergy Corp., $.10 par value		418,216,437
FirstEnergy Solutions Corp., no par value		7
Ohio Edison Company, no par value		60
Jersey Central Power & Light Company, $10 par value		13,628,447

FirstEnergy Corp. is the sole holder of FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company common stock.

This combined Form 10-Q is separately filed by FirstEnergy Corp., FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. No registrant makes any representation as to information relating to any other registrant, except that information relating to any of the FirstEnergy subsidiary registrants is also attributed to FirstEnergy Corp.

FirstEnergy Web Site

Each of the registrants’ Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed with or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are also made available free of charge on or through FirstEnergy’s Internet web site at www.firstenergycorp.com.

These reports are posted on the web site as soon as reasonably practicable after they are electronically filed with the SEC. Additionally, the registrants routinely post important information on FirstEnergy’s Internet web site and recognize FirstEnergy’s Internet web site as a channel of distribution to reach public investors and as a means of disclosing material non-public information for complying with disclosure obligations under SEC Regulation FD. Information contained on FirstEnergy’s Internet web site shall not be deemed incorporated into, or to be part of, this report.

OMISSION OF CERTAIN INFORMATION

FirstEnergy Solutions Corp., Ohio Edison Company and Jersey Central Power & Light Company meet the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) to Form 10-Q.

Forward-Looking Statements: This Form 10-Q includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “believe,” “estimate” and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Actual results may differ materially due to:


•	The speed and nature of increased competition in the electric utility industry.


•	The impact of the regulatory process on the pending matters before FERC and 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 PJM's 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.


•	The uncertainties of various cost recovery and cost allocation issues resulting from ATSI's realignment into PJM.


•	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 our 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 CSAPR which was stayed by the courts on December 30, 2011, and the effects of the EPA's MATS rules.


•	The uncertainty of the timing and amounts of the capital expenditures that may arise in connection with any litigation, including 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).


•	The uncertainties associated with our plan to retire our older unscrubbed regulated and competitive fossil units, including the impact on vendor commitments, and PJM's review of our plans for, and the timing of, those retirements.


•	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 or as a result of the incident at Japan's Fukushima Daiichi Nuclear Plant).


•	Issues that could result from our continuing evaluation of the indications of cracking in the Davis-Besse Plant shield building imposed by the CAL issued by the NRC.


•	Adverse legal decisions and outcomes related to ME's and PN's 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.


•	Our ability to improve electric commodity margins and the impact of, among other factors, the increased cost of fuel and fuel transportation on such margins.


•	The ability to experience growth in the distribution business.


•	Changing market conditions that could affect the value of assets held in our NDTs, pension trusts and other trust funds, and cause us and our subsidiaries to make additional contributions sooner, or in amounts that are larger than currently anticipated.


•	The impact of changes to material accounting policies.


•	The ability to access the public securities and other capital and credit markets in accordance with our financing plans, the cost of such capital and overall condition of the capital and credit markets affecting us and our subsidiaries.


•	Changes in general economic conditions affecting us and our subsidiaries.


•	Interest rates and any actions taken by credit rating agencies that could negatively affect us and our subsidiaries' access to financing, increased costs thereof, and increase requirements to post additional collateral to support outstanding commodity positions, LOCs and other financial guarantees.


•	The state of the national and regional economy and its impact on our major industrial and commercial customers.


•	Issues concerning the soundness of domestic and foreign financial institutions and counterparties with which we do business.


•	The risks and other factors discussed from time to time in our SEC filings, and other similar factors.

Dividends declared from time to time on FE's common stock during any annual period may in the aggregate vary from the indicated amount due to circumstances considered by FE's Board of Directors at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating.

The foregoing review of factors should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. The registrants expressly disclaim any current intention to update, except as required by law, any forward-looking statements contained herein as a result of new information, future events or otherwise.

TABLE OF CONTENTS

	Page

Part I. Financial Information

Glossary of Terms	ii

Item 1. Financial Statements

FirstEnergy Corp.
Consolidated Statements of Income	1
Consolidated Statements of Comprehensive Income	2
Consolidated Balance Sheets	3
Consolidated Statements of Cash Flows	4

FirstEnergy Solutions Corp.
Consolidated Statements of Income and Comprehensive Income	5
Consolidated Balance Sheets	6
Consolidated Statements of Cash Flows	7

Ohio Edison Company
Consolidated Statements of Income and Comprehensive Income	8
Consolidated Balance Sheets	9
Consolidated Statements of Cash Flows	10

Jersey Central Power & Light Company
Consolidated Statements of Income and Comprehensive Income	11
Consolidated Balance Sheets	12
Consolidated Statements of Cash Flows	13

Combined Notes To Consolidated Financial Statements	14

Item 2. Management’s Discussion and Analysis of Registrant and Subsidiaries	53
FirstEnergy Corp. Management's Discussion of Analysis of Financial Condition and Results of Operations	53

Management’s Narrative Analysis of Results of Operations
FirstEnergy Solutions Corp.	89
Ohio Edison Company	93
Jersey Central Power & Light Company	95

Item 3. Quantitative and Qualitative Disclosures About Market Risk	97

Item 4. Controls and Procedures — FirstEnergy	97

Part II. Other Information

Item 1. Legal Proceedings	97

Item 1A. Risk Factors	97

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	97

Item 3. Defaults Upon Senior Securities	97

Item 4. Mine Safety Disclosures	97

Item 5. Other Information	97

Item 6. Exhibits	98

GLOSSARY OF TERMS

The following abbreviations and acronyms are used in this report to identify FirstEnergy Corp. and its current and former subsidiaries:



AE	Allegheny Energy, Inc., a Maryland utility holding company that merged with a subsidiary of FirstEnergy on February 25, 2011
AE Supply	Allegheny Energy Supply Company, LLC, an unregulated generation subsidiary of AE
AET	Allegheny Energy Transmission, LLC, a subsidiary of AE, which is the parent of ATSI and TrAIL and has a joint venture in PATH
AGC	Allegheny Generating Company, a generation subsidiary of AE
Allegheny	Allegheny Energy, Inc., together with its consolidated subsidiaries
ATSI	American Transmission Systems, Incorporated, formerly a direct subsidiary of FE that became a subsidiary of AET in April 2012, which owns and operates transmission facilities.
CEI	The Cleveland Electric Illuminating Company, an Ohio electric utility operating subsidiary
FE	FirstEnergy Corp., a public utility holding company
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., a subsidiary of FES, which owns and operates non-nuclear generating facilities
FirstEnergy	FirstEnergy Corp., together with its consolidated subsidiaries
Global Holding	Global Mining Holding Company, LLC, a joint venture between FEV, WMB Marketing Ventures, LLC and Gunvor Group, Ltd. that owns Global Rail and Signal Peak
Global Rail	A joint venture between FEV, WMB Marketing Ventures, LLC and Gunvor Group, Ltd. that owns coal transportation operations near Roundup, Montana
JCP&L	Jersey Central Power & Light Company, a New Jersey electric utility operating subsidiary
ME	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., a subsidiary of FES, which 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 AEP
PATH-Allegheny	PATH Allegheny Transmission Company, LLC
PATH-VA	PATH Allegheny Virginia Transmission Corporation
PE	The Potomac Edison Company, a Maryland electric utility operating subsidiary of AE
PN	Pennsylvania Electric Company, a Pennsylvania electric utility operating subsidiary
Penn	Pennsylvania Power Company, a Pennsylvania electric utility operating subsidiary of OE
Pennsylvania Companies	ME, PN, 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, WMB Marketing Ventures, LLC and Gunvor Group, Ltd. that owns mining operations near Roundup, Montana
TE	The Toledo Edison Company, an Ohio electric utility operating subsidiary
TrAIL	Trans-Allegheny Interstate Line Company, a subsidiary of AET, which owns and operates transmission facilities
Utilities	OE, CEI, TE, Penn, JCP&L, ME, PN, MP, PE and WP
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
Anker WV	Anker West Virginia Mining Company, Inc.
Anker Coal	Anker Coal Group, Inc.
AOCI	Accumulated Other Comprehensive Income
AEP	American Electric Power Company, Inc.
AREPA	Alternative and Renewable Energy Portfolio Act
ARR	Auction Revenue Right
ASLB	Atomic Safety and Licensing Board

GLOSSARY OF TERMS, Continued

BGS	Basic Generation Service
BMP	Bruce Mansfield Plant
CAA	Clean Air Act
CAL	Confirmatory Action Letter
CAIR	Clean Air Interstate Rule
CBP	Competitive Bid Process
CCB	Coal Combustion By-products
CDWR	California Department of Water Resources
CERCLA	Comprehensive Environmental Response, Compensation, and Liability Act of 1980
CO₂	Carbon Dioxide
CSAPR	Cross-State Air Pollution Rule
CWA	Clean Water Act
DCPD	Deferred Compensation Plan for Outside Directors
DCR	Delivery Capital Recovery Rider
DOE	United States Department of Energy
DOJ	United States Department of Justice
DSP	Default Service Plan
EDC	Electric Distribution Company
EDCP	Executive Deferred Compensation Plan
EE&C	Energy Efficiency and Conservation
EGS	Electric Generation Supplier
EHB	Environmental Hearing Board
ENEC	Expanded Net Energy Cost
EPA	United States Environmental Protection Agency
ERO	Electric Reliability Organization
ESP	Electric Security Plan
FERC	Federal Energy Regulatory Commission
Fitch	Fitch Ratings
FMB	First Mortgage Bond
FPA	Federal Power Act
FTR	Financial Transmission Right
GAAP	Accounting Principles Generally Accepted in the United States of America
GHG	Greenhouse Gases
HCL	Hydrochloric Acid
ICG	International Coal Group Inc.
ILP	Integrated License Application Process
IRS	Internal Revenue Service
kV	Kilovolt
KWH	Kilowatt-hour
LBR	Little Blue Run
LOC	Letter of Credit
LSE	Load Serving Entity
LTIP	Long-Term Incentive Plan
MATS	Mercury and Air Toxics Standards
MDPSC	Maryland Public Service Commission
MISO	Midwest Independent Transmission System Operator, Inc.
Moody’s	Moody’s Investors Service, Inc.
MTEP	MISO Regional Transmission Expansion Plan
MVP	Multi-value Project
MW	Megawatt
MWH	Megawatt-hour

iii

GLOSSARY OF TERMS, Continued

NCEA	NERC Compliance Enforcement Authority
NDT	Nuclear Decommissioning Trust
NEPA	National Environmental Policy Act
NERC	North American Electric Reliability Corporation
NJBPU	New Jersey Board of Public Utilities
NNSR	Non-Attainment New Source Review
NOV	Notice of Violation
NOx	Nitrogen Oxide
NPDES	National Pollutant Discharge Elimination System
NRC	Nuclear Regulatory Commission
NSR	New Source Review
NUG	Non-Utility Generation
NYPSC	New York State Public Service Commission
NYSEG	New York State Electric and Gas
OCI	Other Comprehensive Income
OPEB	Other Post-Employment Benefits
OTTI	Other Than Temporary Impairments
OVEC	Ohio Valley Electric Corporation
PA DEP	Pennsylvania Department of Environmental Protection
PCRB	Pollution Control Revenue Bond
PJM	PJM Interconnection LLC
PM	Particulate Matter
POLR	Provider of Last Resort
PPUC	Pennsylvania Public Utility Commission
PSA	Power Supply Agreement
PSD	Prevention of Significant Deterioration
PUCO	Public Utilities Commission of Ohio
PURPA	Public Utility Regulatory Policies Act of 1978
REC	Renewable Energy Credit
RFC	ReliabilityFirst
RFP	Request for Proposal
RGGI	Regional Greenhouse Gas Initiative
ROE	Return on Equity
RTEP	Regional Transmission Expansion Plan
RTO	Regional Transmission Organization
S&P	Standard & Poor’s Ratings Service
SB221	Amended Substitute Senate Bill 221
SBC	Societal Benefits Charge
SEC	United States Securities and Exchange Commission
SIP	State Implementation Plan(s) Under the Clean Air Act
SMIP	Smart Meter Implementation Plan
SO₂	Sulfur Dioxide
SOS	Standard Offer Service
SREC	Solar Renewable Energy Credit
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

FIRSTENERGY CORP.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)



	Three Months Ended March 31
(In millions, except per share amounts)	2012			2011

REVENUES:
Electric utilities	$	2,554		$	2,332
Unregulated businesses	1,524			1,244
Total revenues*	4,078			3,576

OPERATING EXPENSES:
Fuel	541			453
Purchased power	1,347			1,186
Other operating expenses	812			993
Provision for depreciation	285			225
Amortization of regulatory assets, net	75			132
General taxes	272			237
Total operating expenses	3,332			3,226

OPERATING INCOME	746			350

OTHER INCOME (EXPENSE):
Investment income	11			21
Interest expense	(246		)	(231		)
Capitalized interest	17			18
Total other expense	(218		)	(192		)

INCOME BEFORE INCOME TAXES	528			158

INCOME TAXES	222			111

NET INCOME	306			47

Loss attributable to noncontrolling interest	—			(5		)

EARNINGS AVAILABLE TO FIRSTENERGY CORP.	$	306		$	52

EARNINGS PER SHARE OF COMMON STOCK:
Basic	$	0.73		$	0.15
Diluted	$	0.73		$	0.15

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic	418			342
Diluted	420			343

DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	$	0.55		$	0.55


*	Includes excise tax collections of $121 million and $119 million in the three months ended March 31, 2012 and 2011, respectively.

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

FIRSTENERGY CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)



	Three Months Ended March 31
(In millions)	2012			2011

NET INCOME	$	306		$	47

OTHER COMPREHENSIVE LOSS:
Pensions and OPEB prior service costs	(53		)	(44		)
Amortized losses on derivative hedges	(2		)	(6		)
Change in unrealized gain on available-for-sale securities	10			9
Other comprehensive loss	(45		)	(41		)
Income tax benefits on other comprehensive loss	(24		)	(19		)
Other comprehensive loss, net of tax	(21		)	(22		)

COMPREHENSIVE INCOME	285			25

Comprehensive loss attributable to noncontrolling interest	—			(5		)

COMPREHENSIVE INCOME AVAILABLE TO FIRSTENERGY CORP.	$	285		$	30

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

FIRSTENERGY CORP.

CONSOLIDATED BALANCE SHEETS

(Unaudited)



(In millions, except share amounts)	March 31, 2012		December 31, 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	74	$	202
Receivables-
Customers, net of allowance for uncollectible accounts of $35 in 2012 and $37 in 2011	1,449		1,525
Other, net of allowance for uncollectible accounts of $8 in 2012 and $3 in 2011	286		269
Materials and supplies	927		811
Prepaid taxes	213		191
Derivatives	346		235
Other	182		122
	3,477		3,355
PROPERTY, PLANT AND EQUIPMENT:
In service	40,587		40,122
Less — Accumulated provision for depreciation	12,086		11,839
	28,501		28,283
Construction work in progress	2,065		2,054
	30,566		30,337
INVESTMENTS:
Nuclear plant decommissioning trusts	2,135		2,112
Investments in lease obligation bonds	336		402
Other	1,011		1,008
	3,482		3,522
DEFERRED CHARGES AND OTHER ASSETS:
Goodwill	6,444		6,441
Regulatory assets	2,006		2,030
Other	1,716		1,641
	10,166		10,112
	$	47,691	$	47,326
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	1,772	$	1,621
Short-term borrowings	1,075		—
Accounts payable	918		1,174
Accrued taxes	442		558
Accrued compensation and benefits	258		384
Derivatives	299		218
Other	1,009		900
	5,773		4,855
CAPITALIZATION:
Common stockholders’ equity-
Common stock, $0.10 par value, authorized 490,000,000 shares - 418,216,437 shares outstanding	42		42
Other paid-in capital	9,754		9,765
Accumulated other comprehensive income	405		426
Retained earnings	3,122		3,047
Total common stockholders’ equity	13,323		13,280
Noncontrolling interest	16		19
Total equity	13,339		13,299
Long-term debt and other long-term obligations	15,527		15,716
	28,866		29,015
NONCURRENT LIABILITIES:
Accumulated deferred income taxes	5,904		5,670
Retirement benefits	2,240		2,823
Asset retirement obligations	1,522		1,497
Deferred gain on sale and leaseback transaction	917		925
Adverse power contract liability	458		469
Other	2,011		2,072
	13,052		13,456
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9)
	$	47,691	$	47,326

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

FIRSTENERGY CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



	Three Months Ended March 31
(In millions)	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	306		$	47
Adjustments to reconcile net income to net cash from operating activities-
Provision for depreciation	285			225
Amortization of regulatory assets, net	75			132
Nuclear fuel and lease amortization	58			47
Deferred purchased power and other costs	(107		)	(58		)
Deferred income taxes and investment tax credits, net	265			204
Deferred rents and lease market valuation liability	(23		)	(15		)
Stock based compensation	(29		)	(9		)
Accrued compensation and retirement benefits	(162		)	(53		)
Commodity derivative transactions, net	(64		)	(25		)
Pension trust contributions	(600		)	(157		)
Asset impairments	4			31
Cash collateral, net	(28		)	(28		)
Decrease (increase) in operating assets-
Receivables	59			164
Materials and supplies	(118		)	40
Prepayments and other current assets	(19		)	118
Increase (decrease) in operating liabilities-
Accounts payable	(256		)	(90		)
Accrued taxes	(116		)	(182		)
Accrued interest	70			76
Other	(13		)	24
Net cash provided from (used for) operating activities	(413		)	491

CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Long-term debt	—			217
Short-term borrowings, net	1,075			—
Redemptions and Repayments-
Long-term debt	(16		)	(359		)
Short-term borrowings, net	—			(214		)
Common stock dividend payments	(230		)	(190		)
Other	(10		)	(4		)
Net cash provided from (used for) financing activities	819			(550		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(589		)	(449		)
Sales of investment securities held in trusts	251			969
Purchases of investment securities held in trusts	(266		)	(993		)
Cash investments	78			47
Cash received in Allegheny merger	—			590
Other	(8		)	(23		)
Net cash provided from (used for) investing activities	(534		)	141

Net change in cash and cash equivalents	(128		)	82
Cash and cash equivalents at beginning of period	202			1,019
Cash and cash equivalents at end of period	$	74		$	1,101

SUPPLEMENTAL CASH FLOW INFORMATION:
Non-cash transaction: merger with Allegheny, common stock issued	$	—		$	4,354

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

FIRSTENERGY SOLUTIONS CORP.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)



	Three Months Ended March 31
(In millions)	2012			2011

STATEMENTS OF INCOME
REVENUES:
Electric sales to non-affiliates	$	1,332		$	1,044
Electric sales to affiliates	121			261
Other	63			86
Total revenues	1,516			1,391

OPERATING EXPENSES:
Fuel	295			343
Purchased power from affiliates	117			69
Purchased power from non-affiliates	487			297
Other operating expenses	295			465
Provision for depreciation	63			69
General taxes	37			29
Impairment of long-lived assets	—			14
Total operating expenses	1,294			1,286

OPERATING INCOME	222			105

OTHER INCOME (EXPENSE):
Investment income	6			6
Miscellaneous income	4			4
Interest expense — affiliates	(2		)	(1		)
Interest expense — other	(41		)	(53		)
Capitalized interest	9			10
Total other income (expense)	(24		)	(34		)

INCOME BEFORE INCOME TAXES	198			71

INCOME TAXES	76			26

NET INCOME	$	122		$	45

STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$	122		$	45

OTHER COMPREHENSIVE INCOME (LOSS):
Pensions and OPEB prior service costs	(5		)	(10		)
Amortized losses on derivative hedges	(5		)	(9		)
Change in unrealized gain on available-for-sale securities	10			8
Other comprehensive loss	—			(11		)
Income taxes (benefits) on other comprehensive income (loss)	2			(6		)
Other comprehensive loss, net of tax	(2		)	(5		)

COMPREHENSIVE INCOME	$	120		$	40

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

FIRSTENERGY SOLUTIONS CORP.

CONSOLIDATED BALANCE SHEETS

(Unaudited)



(In millions, except share amounts)	March 31, 2012		December 31, 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	7	$	7
Receivables-
Customers, net of allowance for uncollectible accounts of $16 in 2012 and 2011	395		424
Affiliated companies	541		600
Other, net of allowance for uncollectible accounts of $3 in 2012 and 2011	122		61
Notes receivable from affiliated companies	12		383
Materials and supplies	551		492
Derivatives	322		219
Prepayments and other	24		38
	1,974		2,224
PROPERTY, PLANT AND EQUIPMENT:
In service	11,002		10,983
Less — Accumulated provision for depreciation	4,214		4,110
	6,788		6,873
Construction work in progress	1,173		1,014
	7,961		7,887
INVESTMENTS:
Nuclear plant decommissioning trusts	1,240		1,223
Other	7		7
	1,247		1,230
DEFERRED CHARGES AND OTHER ASSETS:
Customer intangibles	120		123
Goodwill	24		24
Property taxes	43		43
Unamortized sale and leaseback costs	120		80
Derivatives	117		79
Other	171		129
	595		478
	$	11,777	$	11,819
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	905	$	905
Accounts payable-
Affiliated companies	483		436
Other	190		220
Accrued Taxes	75		227
Derivatives	281		189
Other	245		261
	2,179		2,238
CAPITALIZATION:
Common stockholder's equity-
Common stock, without par value, authorized 750 shares- 7 shares outstanding	1,568		1,570
Accumulated other comprehensive income	74		76
Retained earnings	2,053		1,931
Total common stockholder's equity	3,695		3,577
Long-term debt and other long-term obligations	2,797		2,799
	6,492		6,376
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	917		925
Accumulated deferred income taxes	365		286
Asset retirement obligations	919		904
Retirement benefits	151		356
Lease market valuation liability	160		171
Other	594		563
	3,106		3,205
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9)
	$	11,777	$	11,819

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

FIRSTENERGY SOLUTIONS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



	Three Months Ended March 31
(In millions)	2012			2011

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	122		$	45
Adjustments to reconcile net income to net cash from operating activities-
Provision for depreciation	63			69
Nuclear fuel and lease amortization	57			47
Deferred rents and lease market valuation liability	(47		)	(39		)
Deferred income taxes and investment tax credits, net	83			67
Asset impairments	3			19
Accrued compensation and retirement benefits	(10		)	(16		)
Pension trust contribution	(209		)	—
Commodity derivative transactions, net	(52		)	(35		)
Cash collateral, net	(25		)	(27		)
Decrease (increase) in operating assets-
Receivables	28			(76		)
Materials and supplies	(59		)	61
Prepayments and other current assets	14			8
Increase (decrease) in operating liabilities-
Accounts payable	17			(18		)
Accrued taxes	(155		)	(3		)
Other	(8		)	(8		)
Net cash provided from (used for) operating activities	(178		)	94

CASH FLOWS FROM FINANCING ACTIVITIES:
New financing-
Long-term debt	—			150
Short-term borrowings, net	—			350
Redemptions and repayments-
Long-term debt	—			(332		)
Other	(3		)	(1		)
Net cash provided from (used for) financing activities	(3		)	167

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(181		)	(159		)
Sales of investment securities held in trusts	83			216
Purchases of investment securities held in trusts	(90		)	(231		)
Loans from (to) affiliated companies, net	371			(82		)
Other	(2		)	(7		)
Net cash provided from (used for) investing activities	181			(263		)

Net change in cash and cash equivalents	—			(2		)
Cash and cash equivalents at beginning of period	7			9
Cash and cash equivalents at end of period	$	7		$	7

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

OHIO EDISON COMPANY

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)



	Three Months Ended March 31
(In millions)	2012			2011

STATEMENTS OF INCOME
REVENUES:
Electric sales	$	359		$	364
Excise and gross receipts tax collections	27			28
Total revenues	386			392

OPERATING EXPENSES:
Purchased power from affiliates	52			93
Purchased power from non-affiliates	70			60
Other operating expenses	121			96
Provision for depreciation	24			23
Amortization of regulatory assets, net	—			1
General taxes	50			50
Total operating expenses	317			323

OPERATING INCOME	69			69

OTHER INCOME (EXPENSE):
Investment income	4			5
Interest expense	(22		)	(22		)
Capitalized interest	1			—
Total other expense	(17		)	(17		)

INCOME BEFORE INCOME TAXES	52			52

INCOME TAXES	21			20

NET INCOME	$	31		$	32

STATEMENTS OF COMPREHENSIVE INCOME

NET INCOME	$	31		$	32

OTHER COMPREHENSIVE LOSS:
Pensions and OPEB prior service costs	(10		)	(7		)
Other comprehensive loss	(10		)	(7		)
Income tax benefits on other comprehensive loss	(5		)	(4		)
Other comprehensive loss, net of tax	(5		)	(3		)

COMPREHENSIVE INCOME	$	26		$	29

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

OHIO EDISON COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)



(In millions, except share amounts)	March 31, 2012			December 31, 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	26
Receivables-
Customers, net of allowance for uncollectible accounts of $4 in 2012 and 2011	154			163
Affiliated companies	72			86
Other	37			41
Notes receivable from affiliated companies	259			181
Prepayments and other	11			17
	533			514
UTILITY PLANT:
In service	3,405			3,358
Less — Accumulated provision for depreciation	1,280			1,267
	2,125			2,091
Construction work in progress	85			91
	2,210			2,182
OTHER PROPERTY AND INVESTMENTS:
Investment in lease obligation bonds	162			163
Nuclear plant decommissioning trusts	137			137
Other	92			90
	391			390
DEFERRED CHARGES AND OTHER ASSETS:
Regulatory assets	362			363
Pension assets	6			5
Property taxes	80			81
Unamortized sale and leaseback costs	24			25
Other	16			14
	488			488
	$	3,622		$	3,574
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	3		$	2
Accounts payable-
Affiliated companies	110			119
Other	34			35
Accrued taxes	88			88
Accrued interest	25			25
Other	102			79
	362			348
CAPITALIZATION:
Common stockholder's equity-
Common stock, without par value, authorized 175,000,000 shares – 60 shares outstanding	747			747
Accumulated other comprehensive income	49			54
Accumulated deficit	(53		)	(84		)
Total common stockholder's equity	743			717
Noncontrolling interest	5			5
Total equity	748			722
Long-term debt and other long-term obligations	1,156			1,155
	1,904			1,877
NONCURRENT LIABILITIES:
Accumulated deferred income taxes	791			787
Accumulated deferred investment tax credits	8			9
Retirement benefits	213			213
Asset retirement obligations	73			71
Other	271			269
	1,356			1,349
COMMITMENTS AND CONTINGENCIES (Note 9)
	$	3,622		$	3,574

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

OHIO EDISON COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



	Three Months Ended March 31
(In millions)	2012			2011

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	31		$	32
Adjustments to reconcile net income to net cash from operating activities-
Provision for depreciation	24			23
Amortization of regulatory assets, net	—			1
Amortization of lease costs	33			33
Deferred income taxes and investment tax credits, net	11			29
Accrued compensation and retirement benefits	(17		)	(13		)
Cash collateral, net	(2		)	—
Pension trust contributions	—			(27		)
Decrease (increase) in operating assets-
Receivables	27			82
Prepayments and other current assets	7			(23		)
Increase (decrease) in operating liabilities-
Accounts payable	(10		)	(20		)
Accrued taxes	1			(10		)
Other	(5		)	(3		)
Net cash provided from operating activities	100			104

CASH FLOWS FROM FINANCING ACTIVITIES:
Redemptions and Repayments-
Short-term borrowings, net	—			(39		)
Common stock dividend payments	—			(100		)
Other	(1		)	—
Net cash used for financing activities	(1		)	(139		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(43		)	(37		)
Sales of investment securities held in trusts	37			8
Purchases of investment securities held in trusts	(38		)	(9		)
Loans to affiliated companies, net	(78		)	—
Other	(3		)	(2		)
Net cash used for investing activities	(125		)	(40		)

Net change in cash and cash equivalents	(26		)	(75		)
Cash and cash equivalents at beginning of period	26			420
Cash and cash equivalents at end of period	$	—		$	345

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

JERSEY CENTRAL POWER & LIGHT COMPANY

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)



	Three Months Ended March 31
(In millions)	2012			2011

STATEMENTS OF INCOME
REVENUES:
Electric sales	$	478		$	634
Excise tax collections	10			13
Total revenues	488			647

OPERATING EXPENSES:
Purchased power	264			370
Other operating expenses	81			80
Provision for depreciation	30			26
Amortization of regulatory assets, net	20			82
General taxes	15			18
Total operating expenses	410			576

OPERATING INCOME	78			71

OTHER INCOME (EXPENSE):
Miscellaneous income	1			2
Interest expense	(31		)	(30		)
Total other expense	(30		)	(28		)

INCOME BEFORE INCOME TAXES	48			43

INCOME TAXES	22			20

NET INCOME	$	26		$	23

STATEMENTS OF COMPREHENSIVE INCOME

NET INCOME	$	26		$	23

OTHER COMPREHENSIVE LOSS:
Pensions and OPEB prior service costs	(6		)	(6		)
Other comprehensive loss	(6		)	(6		)
Income tax benefits on other comprehensive loss	(4		)	(3		)
Other comprehensive loss, net of tax	(2		)	(3		)

COMPREHENSIVE INCOME	$	24		$	20

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

JERSEY CENTRAL POWER & LIGHT COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)



(In millions, except share amounts)		March 31, 2012		December 31, 2011
ASSETS
CURRENT ASSETS:
Receivables-
Customers, net of allowance for uncollectible accounts of $3 in 2012 and $4 in 2011		$	202	$	235
Affiliated companies		35		—
Other		16		17
Prepaid taxes		39		33
Other		24		19
		316		304
UTILITY PLANT:
In service		5,022		4,872
Less — Accumulated provision for depreciation		1,759		1,743
		3,263		3,129
Construction work in progress		119		227
		3,382		3,356
OTHER PROPERTY AND INVESTMENTS:
Nuclear fuel disposal trust		225		219
Nuclear plant decommissioning trusts		195		193
Other		2		2
		422		414
DEFERRED CHARGES AND OTHER ASSETS:
Goodwill		1,811		1,811
Regulatory assets		384		408
Other		32		32
		2,227		2,251
		$	6,347	$	6,325
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt		$	34	$	34
Short-term borrowings-
Affiliated companies		300		259
Accounts payable-
Affiliated companies		3		19
Other		94		101
Accrued compensation and benefits		33		41
Customer deposits		24		24
Accrued interest		30		18
Other		41		36
		559		532
CAPITALIZATION:
Common stockholder's equity-
Common stock, $10 par value, authorized 16,000,000 shares, 13,628,447 shares outstanding		136		136
Other paid-in capital		2,011		2,011
Accumulated other comprehensive income		36		39
Retained earnings		146		121
Total common stockholder's equity		2,329		2,307
Long-term debt and other long-term obligations		1,729		1,736
		4,058		4,043
NONCURRENT LIABILITIES:
Accumulated deferred income taxes		908		859
Power purchase contract liability		136		147
Nuclear fuel disposal costs		197		197
Retirement benefits		163		170
Asset retirement obligations		117		115
Other		209		262
		1,730		1,750
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 9)	1
		$	6,347	$	6,325

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

JERSEY CENTRAL POWER & LIGHT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



	Three Months Ended March 31
(In millions)	2012			2011

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	26		$	23
Adjustments to reconcile net income to net cash from operating activities-
Provision for depreciation	30			26
Amortization of regulatory assets, net	20			82
Deferred purchased power and other costs	(69		)	(27		)
Deferred income taxes and investment tax credits, net	52			28
Accrued compensation and retirement benefits	(22		)	(11		)
Cash collateral, net	6			—
Decrease (increase) in operating assets-
Receivables	(2		)	86
Prepaid taxes	(6		)	(2		)
Increase (decrease) in operating liabilities-
Accounts payable	(22		)	(62		)
Accrued taxes	(5		)	13
Accrued interest	12			12
Other	9			14
Net cash provided from operating activities	29			182

CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Short-term borrowings, net	40			—
Redemptions and Repayments-
Long-term debt	(8		)	(7		)
Net cash provided from (used for) financing activities	32			(7		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(56		)	(47		)
Loans to affiliated companies, net	—			(121		)
Sales of investment securities held in trusts	95			217
Purchases of investment securities held in trusts	(99		)	(222		)
Other	(1		)	(2		)
Net cash used for investing activities	(61		)	(175		)

Net change in cash and cash equivalents	—			—
Cash and cash equivalents at beginning of period	—			—
Cash and cash equivalents at end of period	$	—		$	—

The accompanying Combined Notes to Consolidated Financial Statements are an integral part of these financial statements.

FIRSTENERGY CORP. AND SUBSIDIARIES

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



Note Number		Page Number

1	Organization and Basis of Presentation	15

2	Earnings Per Share	15

3	Pensions and Other Postemployment Benefits	16

4	Income Taxes	16

5	Variable Interest Entities	17

6	Fair Value Measurements	18

7	Derivative Instruments	25

8	Regulatory Matters	29

9	Commitments, Guarantees and Contingencies	37

10	Supplemental Guarantor Information	43

11	Segment Information	51

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND BASIS OF PRESENTATION

Unless otherwise indicated, defined terms and abbreviations used herein have the meanings set forth in the accompanying Glossary of Terms.

FE is a diversified energy holding company that holds, directly or indirectly, all of the outstanding common stock of its principal subsidiaries: OE, CEI, TE, Penn (a wholly owned subsidiary of OE), JCP&L, ME, PN, FENOC, AE and its principal subsidiaries (AE Supply, AGC, MP, PE, WP and AET), FES and its principal subsidiaries (FGCO and NGC), and FESC. AE merged with a subsidiary of FirstEnergy on February 25, 2011, with AE continuing as the surviving corporation and becoming a wholly owned subsidiary of FirstEnergy. Accordingly, consolidated results of operations for the three months ended March 31, 2011, include just one month of Allegheny results.

The consolidated financial statements of FE, FES, OE and JCP&L include the accounts of entities in which a controlling financial interest is held, after the elimination of intercompany transactions. A controlling financial interest is evidenced by either a voting interest greater than 50% or the result of an analysis that identifies FE or one of its subsidiaries as the primary beneficiary of a VIE. Investments in which a controlling financial interest is not held are accounted for under the equity or cost method of accounting.

These interim financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and disclosures normally included in financial statements and notes prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim financial statements should be read in conjunction with the financial statements and notes included in the combined Annual Report on Form 10-K for the year ended December 31, 2011.

The accompanying interim financial statements are unaudited, but reflect all adjustments, consisting of normal recurring adjustments, that, in the opinion of management, are necessary for a fair presentation of the financial statements. The preparation of financial statements in conformity with GAAP requires management to make periodic estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The reported results of operations are not indicative of results of operations for any future period.

As described in its Annual Report on Form 10-K for the year ended December 31, 2011, FE's consolidated financial statements for the three months ended March 31, 2011, were revised to reflect a purchase accounting measurement adjustment identified during the fourth quarter of 2011 that decreased goodwill and increased income tax expense by approximately $20 million.

As described in its Annual Report on Form 10-K for the year ended December 31, 2011, during the fourth quarter of 2011, FE elected to change its method of accounting relating to its defined benefit pension and OPEB plans to recognize the change in fair value of plan assets and net actuarial gains and losses immediately, and applied this change retrospectively. Generally, these gains and losses are measured annually as of December 31, and accordingly, will be recorded during the fourth quarter.

Certain prior year amounts have been reclassified to conform to the current year presentation.

New Accounting Pronouncements

New accounting pronouncements not yet effective are not expected to have a material effect on the financial statements of FE or its subsidiaries.

2. EARNINGS PER SHARE

Basic earnings per share of common stock are computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted earnings per share of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised. The following table reconciles basic and diluted earnings per share of common stock:



	Three Months Ended March 31
Reconciliation of Basic and Diluted Earnings per Share of Common Stock	2012		2011
	(In millions, except per share amounts)

Weighted average number of basic shares outstanding	418		342
Assumed exercise of dilutive stock options and awards⁽¹⁾	2		1
Weighted average number of diluted shares outstanding	420		343

Earnings Available to FirstEnergy Corp.	$	306	$	52

Basic earnings per share of common stock	$	0.73	$	0.15
Diluted earnings per share of common stock	$	0.73	$	0.15


⁽¹⁾	The number of potentially dilutive securities not included in the calculation of diluted shares outstanding due to their antidilutive effect were not significant for the three months ended March 31, 2012 and 2011.

3. PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

FirstEnergy provides noncontributory qualified defined benefit pension plans that cover substantially all of its employees and non-qualified pension plans that cover certain employees. The plans provide defined benefits based on years of service and compensation levels. In addition, FirstEnergy provides a minimum amount of noncontributory life insurance to retired employees in addition to optional contributory insurance. Health care benefits, which include certain employee contributions, deductibles and co-payments, are also available upon retirement to certain employees, their dependents and, under certain circumstances, their survivors. FirstEnergy recognizes the expected cost of providing pensions and OPEB to employees and their beneficiaries and covered dependents from the time employees are hired until they become eligible to receive those benefits. FirstEnergy also has obligations to former or inactive employees after employment, but before retirement, for disability-related benefits.

FirstEnergy’s funding policy is based on actuarial computations using the projected unit credit method. During the three months ended March 31, 2012, FirstEnergy made pre-tax contributions to its qualified pension plan of $600 million.

The components of the consolidated net periodic cost for pensions and OPEB costs (including amounts capitalized) were as follows:



Components of Net Periodic Benefit Costs (Credits)	Pensions						OPEB
For the Three Months Ended March 31,	2012			2011			2012			2011
	(In millions)
Service cost	$	40		$	29		$	3		$	3
Interest cost	97			84			12			11
Expected return on plan assets	(121		)	(102		)	(9		)	(10		)
Amortization of prior service cost	3			4			(51		)	(48		)
Other adjustments (settlements, curtailments, etc)	—			7			—			—
Net periodic costs (credits)	$	19		$	22		$	(45	)	$	(44	)

Pension and OPEB obligations are allocated to FE's subsidiaries employing the plan participants. The net periodic pension and OPEB costs (net of amounts capitalized) recognized in earnings by FE and its subsidiaries were as follows:



Net Periodic Benefit Costs (Credits)	Pensions						OPEB
For the Three Months Ended March 31,	2012			2011			2012			2011
	(In millions)
FE Consolidated	$	13		$	20		$	(30	)	$	(32	)
FES	10			7			(8		)	(7		)
OE	(1		)	(2		)	(5		)	(6		)
JCP&L	(1		)	(2		)	(2		)	(3		)

4. INCOME TAXES

FirstEnergy accounts for uncertainty in income taxes recognized in its financial statements. Accounting guidance prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken on a company's tax return. During the first quarter of 2012, the federal government issued further guidance

related to the tax accounting of costs to repair and maintain fixed assets. This guidance provided a safe harbor method of tax accounting for AE companies and allowed these companies to reduce their amount of unrecognized tax benefits by $21 million, with a corresponding adjustment to accumulated deferred income taxes for this temporary tax item, with no resulting impact to FirstEnergy's effective tax rate in the first quarter of 2012. There were no other material changes to FirstEnergy's unrecognized income tax benefits during the first quarter of 2012 or 2011.

As of March 31, 2012, it is reasonably possible that approximately $45 million of unrecognized income tax benefits may be resolved within the next twelve months, of which approximately $10 million, if recognized, would affect FirstEnergy's effective tax rate. The potential decrease in the amount of unrecognized income tax benefits is primarily associated with issues related to the capitalization of certain costs and various state tax items.

FirstEnergy recognizes interest expense or income related to uncertain tax positions. That amount is computed by applying the applicable statutory interest rate to the difference between the tax position recognized and the amount previously taken or expected to be taken on the tax return. FirstEnergy includes net interest and penalties in the provision for income taxes. During the first quarter of 2012 and 2011, there were no material changes to the amount of accrued interest, except for a $6 million increase in accrued interest from the merger with AE in the first quarter of 2011. The net amount of interest accrued as of March 31, 2012 was $12 million, compared with $11 million as of December 31, 2011.

As a result of the non-deductible portion of merger transaction costs, FirstEnergy's effective tax rate was unfavorably impacted by $30 million in the first three months of 2011.

FirstEnergy has tax returns that are under review at the audit or appeals level by the IRS (2008-2010) and state tax authorities. FirstEnergy's tax returns for all state jurisdictions are open from 2008-2010, and additionally 2005-2007 for New Jersey. The IRS completed its audits of tax year 2008 in July 2010 and tax year 2009 in April 2011, with both tax years having one open item. Tax years 2010-2011 are under review by the IRS. Allegheny is currently under audit by the IRS for tax years 2007 and 2008. Allegheny has filed its 2009 and 2010 federal returns and such filings are subject to review. State tax returns for tax years 2008 through 2010 remain subject to review in Pennsylvania, West Virginia, Maryland and Virginia for certain subsidiaries of AE. Management believes that adequate reserves have been recognized and final settlement of these audits is not expected to have a material adverse effect on FirstEnergy's financial condition, results of operations, cash flow or liquidity.

5. VARIABLE INTEREST ENTITIES

FirstEnergy performs qualitative analyses to determine whether a variable interest gives FirstEnergy a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. FE and its subsidiaries consolidate a VIE when it is determined that it is the primary beneficiary

VIEs included in FirstEnergy’s consolidated financial statements for the first quarter of 2012 are: the PNBV and Shippingport capital trusts that were created to refinance debt originally issued in connection with sale and leaseback transactions; wholly owned limited liability companies of JCP&L created to sell transition bonds to securitize the recovery of JCP&L’s bondable stranded costs associated with the previously divested Oyster Creek Nuclear Generating Station and JCP&L's supply of BGS, of which $270 million was outstanding as of March 31, 2012; and special purpose limited liabilities companies of MP and PE created to issue environmental control bonds that were used to construct environmental control facilities, of which $504 million was outstanding as of March 31, 2012.

The caption noncontrolling interest within the consolidated financial statements is used to reflect the portion of the VIE that FirstEnergy consolidates, but does not wholly own. The change in noncontrolling interest within the Consolidated Balance Sheets during the three months ended March 31, 2012, was primarily due to a $3 million distribution to owners.

In order to evaluate contracts for consolidation treatment and entities for which FirstEnergy has an interest, FirstEnergy aggregated variable interests into the following categories based on similar risk characteristics and significance.

Mining Operations

On October 18, 2011, a subsidiary of Gunvor Group, Ltd. purchased a one-third interest in the Signal Peak joint venture in which FEV held a 50% interest. FEV retained a 33-1/3% equity ownership in the joint venture. Prior to the sale, FirstEnergy consolidated this joint venture since FEV was determined to be the primary beneficiary of the VIE. As a result of the sale, FEV was no longer determined to be the primary beneficiary and its retained 33-1/3% interest is subsequently accounted for using the equity method of accounting.

PATH-WV

PATH was formed to construct, through its operating companies, the PATH Project, which is a high-voltage transmission line that was proposed to extend from West Virginia through Virginia and into Maryland, including modifications to an existing substation in

Putnam County, West Virginia, and the construction of new substations in Hardy County, West Virginia and Frederick County, Maryland as directed by PJM. PATH is a series limited liability company that is comprised of multiple series, each of which has separate rights, powers and duties regarding specified property and the series profits and losses associated with such property. A subsidiary of AE owns 100% of the Allegheny Series (PATH-Allegheny) and 50% of the West Virginia Series (PATH-WV), which is a joint venture with a subsidiary of AEP. FirstEnergy is not the primary beneficiary of PATH-WV, as it does not have control over the significant activities affecting the economics of the portion of the PATH Project to be constructed by PATH-WV.

Because of the nature of PATH-WV’s operations and its FERC approved rate mechanism, FirstEnergy’s maximum exposure to loss, through AE, consists of its equity investment in PATH-WV, which was $30 million as of March 31, 2012.

Power Purchase Agreements

FirstEnergy evaluated its power purchase agreements and determined that certain NUG entities may be VIEs to the extent that they own a plant that sells substantially all of its output to the applicable utilities if the contract price for power is correlated with the plant’s variable costs of production. FirstEnergy, through its subsidiaries JCP&L, ME, PN, PE, WP and MP, maintains 22 long-term power purchase agreements with NUG entities that were entered into pursuant to PURPA. FirstEnergy was not involved in the creation of, and has no equity or debt invested in, these entities.

FirstEnergy has determined that for all but three of these NUG entities, its subsidiaries do not have variable interests in the entities or the entities do not meet the criteria to be considered a VIE. JCP&L, PE and WP may hold variable interests in the remaining three entities; however, FirstEnergy applied the scope exception that exempts enterprises unable to obtain the necessary information to evaluate entities. One of JCP&L's NUG contracts, to which the scope exception was applied, expired during 2011.

Because JCP&L, PE and WP have no equity or debt interests in the NUG entities, their maximum exposure to loss relates primarily to the above-market costs incurred for power. FirstEnergy expects any above-market costs incurred by its subsidiaries to be recovered from customers, except as described further below. Purchased power costs related to the three contracts that may contain a variable interest that were held by FirstEnergy subsidiaries during the three months ended March 31, 2012, were $12 million, $32 million and $16 million for JCP&L, PE and WP, respectively. Purchased power costs related to the four contracts that may contain a variable interest that were held by JCP&L, PE and WP, respectively, during the three months ended March 31, 2011 were $65 million, $11 million, and $5 million, respectively.

In 1998 the PPUC issued an order approving a transition plan for WP that disallowed certain costs, including an estimated amount for an adverse power purchase commitment related to the NUG entity wherein WP may hold a variable interest, for which WP has taken the scope exception. As of March 31, 2012, WP’s reserve for this adverse purchase power commitment was $51 million, including a current liability of $11 million, and is being amortized over the life of the commitment.

Loss Contingencies

FirstEnergy has variable interests in certain sale and leaseback transactions. FirstEnergy is not the primary beneficiary of these interests as it does not have control over the significant activities affecting the economics of the arrangement.

FES, OE and other FE subsidiaries are exposed to losses under their applicable sale and leaseback agreements upon the occurrence of certain contingent events. The maximum exposure under these provisions represents the net amount of casualty value payments due upon the occurrence of specified casualty events. Net discounted lease payments would not be payable if the casualty loss payments were made. The following table discloses each company’s net exposure to loss based upon the casualty value provisions mentioned above as of March 31, 2012:



	Maximum Exposure	Discounted Lease Payments, net⁽¹⁾	Net Exposure
	(In millions)
FES	1,384	1,179	205
OE	583	426	157
Other FE Subsidiaries	643	383	260


⁽¹⁾	The net present value of FirstEnergy’s consolidated sale and leaseback operating lease commitments is $1.6 billion.

6. FAIR VALUE MEASUREMENTS

RECURRING AND NONRECURRING FAIR VALUE MEASUREMENTS

On January 1, 2012, FirstEnergy adopted an amendment to the authoritative accounting guidance regarding fair value measurements. The amendment was applied prospectively and expanded disclosure requirements for fair value measurements, particularly for Level 3 measurements, among other changes.

Authoritative accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This

hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. The three levels of the fair value hierarchy and a description of the valuation techniques for Level 2 and Level 3 are as follows:



Level 1	-	Quoted prices for identical instruments in active market

Level 2	-	Quoted prices for similar instruments in active market
	-	Quoted prices for identical or similar instruments in markets that are not active
	-	Model-derived valuations for which all significant inputs are observable market data

Models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures.



Level 3	-	Valuation inputs are unobservable and significant to the fair value measurement

FirstEnergy produces a long-term power and capacity price forecast annually with periodic updates as market conditions change. When underlying prices are not observable, prices from the long-term price forecast, which has been reviewed and approved by the Risk Policy Committee, are used to measure fair value. A more detailed description of FirstEnergy's valuation process for FTRs and NUGs are as follows.

FTRs are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly day-ahead congestion price differences across transmission paths. FTRs are acquired by FirstEnergy in the annual, monthly and long-term RTO auctions and are initially recorded using the auction clearing price less cost. After initial recognition, FTRs' carrying values are subsequently adjusted to fair value using a mark-to-model methodology on a monthly basis, which approximates market. The primary inputs into the model, that are generally less observable from objective sources, are the most recent RTO auction clearing prices and the FTRs' remaining hours. The model calculates the fair value by multiplying the most recent auction clearing price by the remaining FTR hours less the prorated FTR cost. Generally, significant increases or decreases in inputs in isolation could result in a higher or lower fair value measurement. See Note 7, Derivative Instruments, for additional information regarding FirstEnergy's FTRs.

NUG contracts represent purchased power agreements with third-party non-utility generators that are transacted to satisfy certain obligations under PURPA. NUG contract carrying values are recorded at fair value using a mark-to-model methodology on a monthly basis, which approximates market. The primary unobservable inputs into the model are regional power prices and generation MWH. Monthly pricing for the NUG contracts is a combination of market prices for the current year and next three years based on observable data and internal models using historical trends and market data for the remaining years under contract. The internal models use forecasted energy purchase prices as an input when prices are not defined by the contract. Forecasted market prices are based on IntercontinentalExchange quotes and management assumptions. Generation MWH reflects data provided by contractual arrangements and historical trends. The model calculates the fair value by multiplying the prices by the generation MWH. Generally, significant increases or decreases in inputs in isolation could result in a higher or lower fair value measurement.

FirstEnergy primarily applies the market approach for recurring fair value measurements using the best information available. Accordingly, FirstEnergy maximizes the use of observable inputs and minimizes the use of unobservable inputs. There were no changes in valuation methodologies used as of March 31, 2012 and December 31, 2011. The determination of the fair value measures takes into consideration various factors, including but not limited to, nonperformance risk, counterparty credit risk and the impact of credit enhancements (such as cash deposits, LOCs and priority interests). The impact of these forms of risk was not significant to the fair value measurements.

Transfers between levels are recognized at the end of the reporting period. There were no significant transfers between levels during the 2012 and 2011 periods. The following tables set forth the recurring and nonrecurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy.



FE CONSOLIDATED

Recurring Fair Value Measurements	March 31, 2012												December 31, 2011
	Level 1			Level 2			Level 3			Total			Level 1		Level 2			Level 3			Total
Assets	(In millions)
Corporate debt securities	$	—		$	1,561		$	—		1,561			$	—	$	1,544		$	—		$	1,544
Derivative assets - commodity contracts	1			415			—			416			—		264			—			264
Derivative assets - FTRs	—			—			1			1			—		—			1			1
Derivative assets - NUG contracts⁽¹⁾	—			—			42			42			—		—			56			56
Equity securities⁽²⁾	289			—			—			289			259		—			—			259
Foreign government debt securities	—			—			—			—			—		3			—			3
U.S. government debt securities	—			138			—			138			—		148			—			148
U.S. state debt securities	—			313			—			313			—		314			—			314
Other⁽³⁾	54			167			—			221			49		225			—			274
Total assets	344			2,594			43			2,981			308		2,498			57			2,863

Liabilities
Derivative liabilities - commodity contracts	(2		)	(347		)	—			(349		)	—		(247		)	—			(247		)
Derivative liabilities - FTRs	—			—			(15		)	(15		)	—		—			(23		)	(23		)
Derivative liabilities - NUG contracts⁽¹⁾	—			—			(342		)	(342		)	—		—			(349		)	(349		)
Total liabilities	(2		)	(347		)	(357		)	(706		)	—		(247		)	(372		)	(619		)

Net assets (liabilities)⁽⁴⁾	$	342		$	2,247		$	(314	)	$	2,275		$	308	$	2,251		$	(315	)	$	2,244


⁽¹⁾	NUG contracts are generally subject to regulatory accounting and do not impact earnings.


⁽²⁾	NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index.


⁽³⁾	Primarily consists of short-term cash investments.


⁽⁴⁾	Excludes $2 million and $(52) million as of March 31, 2012 and December 31, 2011, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.

Rollforward of Level 3 Measurements

The following table provides a reconciliation of changes in the fair value of NUG contracts held by the Utilities and FTRs held by FirstEnergy and classified as Level 3 in the fair value hierarchy for the periods ended March 31, 2012 and December 31, 2011:



	NUG Contracts									FTRs
	Derivative Assets⁽¹⁾			Derivative Liabilities⁽¹⁾			Net⁽¹⁾			Derivative Assets⁽¹⁾			Derivative Liabilities⁽¹⁾			Net⁽¹⁾
										(In millions)
January 1, 2011 Balance	$	122		$	(466	)	$	(344	)	$	—		$	—		$	—
Realized gain (loss)	—			—			—			—			—			—
Unrealized gain (loss)	(58		)	(144		)	(202		)	2			(27		)	(25		)
Purchases	—			—			—			13			(4		)	9
Issuances	—			—			—			—			—			—
Sales	—			—			—			—			—			—
Settlements	(7		)	261			254			(14		)	20			6
Transfers in (out) of Level 3	—			—			—						(12		)	(12		)
December 31, 2011 Balance	$	57		$	(349	)	$	(292	)	$	1		$	(23	)	$	(22	)
Realized gain (loss)	—			—			—			—			—			—
Unrealized gain (loss)	(14		)	(65		)	(79		)	—			(3		)	(3		)
Purchases	—			—			—			—			—			—
Issuances	—			—			—			—			—			—
Sales	—			—			—			—			—			—
Settlements	(1		)	72			71			—			11			11
Transfers in (out) of Level 3	—			—			—			—			—			—
March 31, 2012 Balance	$	42		$	(342	)	$	(300	)	$	1		$	(15	)	$	(14	)


⁽¹⁾	Changes in the fair value of NUG contracts are generally subject to regulatory accounting and do not impact earnings.

Level 3 Quantitative Information

The following table provides quantitative information for NUG contracts and FTRs that are classified as Level 3 in the fair value hierarchy for the period ended March 31, 2012:

Fair Value as of March 31, 2012 (In millions)

Valuation

Technique

Significant Input

Range

Weighted Average

Units

FTRs

(14

)

Model

RTO auction clearing prices

($4.18) to $9.81

1.51

Dollars/MWH

NUG Contracts

(300

)

Model

Generation

Power regional prices

500 to 6,809,000

$58.71 to $84.92

2,547,000

$66.77

MWH

Dollars/MWH



FES

Recurring Fair Value Measurements	March 31, 2012								December 31, 2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(In millions)
Corporate debt securities	$	—	$	1,017	$	—	$	1,017	$	—	$	1,010	$	—	$	1,010
Derivative assets - commodity contracts	1		391		—		392		—		248		—		248
Derivative assets - FTRs	—		—		1		1		—		—		1		1
Equity securities⁽¹⁾	150		—		—		150		124		—		—		124
Foreign government debt securities	—		—		—		—		—		3		—		3
U.S. government debt securities	—		5		—		5		—		7		—		7
U.S. state debt securities	—		—		—		—		—		5

Filing Compare · JERSEY CENTRAL POWER & LIGHT CO