FirstEnergy Solutions Increases Share of Sales at Affiliated Ohio Utilities to 81.4%

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February 17, 2011  

FirstEnergy Solutions increased its share of sales in its affiliated franchised utility territories in Ohio to 81.4%, FirstEnergy Corp. disclosed in reporting fourth-quarter earnings.

The 81.4% share for the quarter ending December 31, 2010, which includes POLR, aggregation and direct retail sales, compares to 80.7% during the quarter ending September 30, 2010, and 72.1% for the quarter ending December 31, 2009.

Through a combination of POLR, opt-out government aggregation, and direct sales to end users, FirstEnergy Solutions supplied 10,546 GWh of the total 12,950 GWh used by customers at its affiliated Ohio distribution companies.  The breakdown was 2,959 GWh POLR sales, 3,475 GWh aggregation sales, and 4,112 GWh direct retail sales.  

Non-affiliated third parties accounted for only 2,404 GWh of supply at the FirstEnergy Ohio distribution companies, with such third-party supply split almost evenly between POLR sales and competitive retail sales.

FirstEnergy Solutions also reported that, during the fourth quarter, it served 990 GWh of non-aggregation, non-POLR retail sales in Ohio outside of its affiliated service areas.  In Pennsylvania, FirstEnergy Solutions served 561 GWh of direct retail sales in its affiliated service areas, and 812 GWh of direct retail sales outside of its affiliated service areas.

FirstEnergy Solutions' current customer count is 1.5 million, versus 1.2 million as of late October 2010.

FirstEnergy Solutions said that it continues to expand direct retail sales in Illinois, Michigan and Maryland, in addition to recently entered non-affiliate territories in Pennsylvania and southern Ohio.

In 2010, FirstEnergy Solutions doubled its sales outside of Ohio.

For the full fiscal year 2010, FirstEnergy Solutions Corp. recorded lower net income of $269 million versus $577 million in 2009.  The decrease was primarily due to $384 million of impairment charges in 2010, and a decrease of $105 million in earnings from the sale of a 6.65% participation interest in Ohio Valley Electric Corporation compared to a sale of a 9% interest in 2009.  Investment income from nuclear decommissioning trusts was also lower in 2010.  These reductions were partially offset by an increase in sales margins.

Excluding the impact of the OVEC sale in both years, total revenues increased $1.267 billion in 2010 compared to the same period in 2009, primarily due to an increase in direct and government aggregation sales and the sale of RECs, partially offset by decreases in POLR sales to affiliated Ohio distribution companies and other wholesale sales.

Total revenues for FirstEnergy Solutions Corp. for 2010, including the OVEC sale, were $5.8 billion, versus $4.7 billion a year ago.

Revenues from direct retail and government aggregation sales increased to $2.5 billion in 2010, versus $779 million in 2009.

FirstEnergy Solutions reported that it won three one-year tranches and three three-year tranches in the recent Standard Service Offer auction for the affiliated FirstEnergy distribution companies.  Combined with the tranches won in October, FirstEnergy Solutions will be supplying 26% of the affiliated Ohio companies' POLR generation requirements beginning in June 2011.

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