SEC File No. 70-9793
And
SEC FILE NO. 70-9941
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
CERTIFICATE PURSUANT TO
RULE 24
OF PARTIAL COMPLETION OF
TRANSACTIONS
FirstEnergy Corp.
------------------------------------:
In the matter of :
FirstEnergy Corp. : Certificate Pursuant
: to Rule 24 of Partial
: Completion of
: Transactions
SEC File No. 70-9793 :
SEC File No. 70-9941 :
(Public Utility Holding Company Act :
of 1935) :
------------------------------------
TO THE MEMBERS OF THE SECURITIES AND EXCHANGE COMMISSION:
The undersigned, FirstEnergy Corp (FirstEnergy) hereby certifies pursuant
to Rule 24 of the Rules and Regulations under the Public Utility Holding Company
Act of 1935 (the Act), that certain of the transactions proposed in the
Applications, as amended, filed in SEC File No. 70-9793 and SEC File No.
70-9941, respectively, have been carried out in accordance with the Commission's
Orders dated with respect to the said Applications as follows:
1. During the period October 1, 2002 through December 31, 2002, there were no
sales of common stock or Preferred Securities by FirstEnergy.
2. FirstEnergy issued 817,213 shares of common stock pursuant to options
granted under employee benefit plans and dividend reinvestment plans during the
fourth quarter of 2002.
3. During the period October 1, 2002 through December 31, 2002, no FirstEnergy
common stock was transferred to a seller of securities of a company being
acquired.
4. During the fourth quarter of 2002, the following guarantees were made by
FirstEnergy to support activities of its subsidiary, FirstEnergy Solutions Corp.
(FES):
Purpose of
Beneficiary Amount Terms Guarantee
----------- ------ ----- ----------
FES (Trading - Electric)
------------------------
BP Energy Trading 12,000,000 (a) (b)
Dominion Energy Marketing 7,000,000 (a) (b)
Edison Mission Marketing 5,000,000 (a) (b)
Select Energy 5,000,000 (a) (b)
Tenaska Power Services 1,000,000 (a) (b)
FES (Trading - Gas)
-------------------
Amerada Hess 5,000,000 (a) (b)
BP Energy 3,000,000 (a) (b)
Dominion Field Services 1,500,000 (a) (b)
Noble Gas Marketing 7,000,000 (a) (b)
ProLiance Energy 3,000,000 (a) (b)
Tenaska Marketing Ventures 2,000,000 (a) (b)
Vista Resources 500,000 (a) (b)
WPS Energy Services 2,000,000 (a) (b)
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(a) Such guarantees are issued for a one-year term, with a ten-day
termination right by FirstEnergy (b) Parental guarantees issued by
FirstEnergy to provide credit support for electric power and natural
gas purchases by subsidiary
The following Letters of Credits (LOC) were issued during the fourth quarter of
2002:
Purpose of
Beneficiary Amount LOC
----------- ------ -----------
Pennsylvania Electric Company
(Penelec)
--------------------------------
Pennsylvania Dept of Environment
Bureau of Land Recycling & Waste
Management $ 210,000 (a)
FES
---
National Fuel Gas Distribution Corp. $3,267,000 (b)
(a) Collateral for the Harborcreek Ash Disposal Site in Erie, PA
(b) Collateral for Customer Balancing Aggregator Program
5. During the period October 1, 2002 through December 31, 2002, the
FirstEnergy Companies issued the following indebtedness:
Transaction Maturity Transaction
Date Date Rate Amount Loan Balance
----------- -------- ---- ------------ ------------
CitiBank (FirstEnergy Revolver)
-------------------------------
FirstEnergy 10/21/2002 10/28/2002 2.86 $25,000,000.00 $100,055,659.72
FirstEnergy 11/1/2002 11/8/2002 2.86 $130,000,000.00 $130,072,357.65
FirstEnergy 11/8/2002 11/22/2002 2.80 $595,000,000.00 $595,647,888.89
FirstEnergy 11/15/2002 11/29/2002 2.61 $65,000,000.00 $65,066,038.19
FirstEnergy 11/25/2002 11/26/2002 4.43 $19,000,000.00 $19,002,303.42
FirstEnergy 11/29/2002 12/20/2002 2.61 $35,000,000.00 $100,152,395.83
FirstEnergy 12/2/2002 12/16/2002 2.61 $60,000,000.00 $60,060,958.33
FirstEnergy 12/16/2002 1/6/2003 2.61 $140,000,000.00 $200,304,791.66
FirstEnergy 12/20/2002 1/10/2003 2.61 $65,000,000.00 $165,251,453.13
FirstEnergy 12/23/2002 12/24/2002 4.43 $5,000,000.00 $5,000,606.16
FirstEnergy 12/27/2002 1/13/2003 2.56 $60,000,000.00 $60,072,604.17
CitiBank (Ohio Edison Company (Ohio Edison) Revolver)
-----------------------------------------------------
Ohio Edison 10/1/2002 10/8/2002 2.31 $20,000,000.00 $20,009,000.00
Ohio Edison 10/15/2002 10/29/2002 2.54 $250,000,000.00 $250,246,701.39
FirstMerit (Ohio Edison Bi-Lateral Facility)
--------------------------------------------
Ohio Edison 10/4/2002 10/7/2002 2.50 $10,000,000.00 $10,002,083.33
Ohio Edison 10/28/2002 10/29/2002 2.56 $2,500,000.00 $2,500,177.95
Ohio Edison 10/29/2002 10/30/2002 2.50 $2,500,000.00 $5,000,347.22
Ohio Edison 11/1/2002 11/4/2002 2.56 $10,500,000.00 $10,502,242.18
Ohio Edison 11/4/2002 11/5/2002 2.50 $3,500,000.00 $14,000,972.22
Ohio Edison 11/8/2002 11/12/2002 2.00 $5,500,000.00 $5,501,222.22
Ohio Edison 11/22/2002 11/25/2002 2.06 $14,000,000.00 $14,002,406.25
Ohio Edison 12/2/2002 12/3/2002 1.88 $14,000,000.00 $14,000,729.17
Ohio Edison 12/6/2002 12/9/2002 2.00 $9,000,000.00 $14,002,333.33
Ohio Edison 12/13/2002 12/16/2002 2.00 $14,000,000.00 $14,002,333.33
Ohio Edison 12/26/2002 12/27/2002 2.00 $9,500,000.00 $14,000,777.78
KeyBank (Ohio Edison Bi-Lateral Facility)
-----------------------------------------
Ohio Edison 11/4/2002 11/5/2002 2.75 $13,500,000.00 $13,501,031.25
Ohio Edison 11/22/2002 11/25/2002 2.25 $9,000,000.00 $9,001,687.50
Ohio Edison 11/25/2002 11/26/2002 2.27 $11,000,000.00 $20,001,261.11
Ohio Edison 12/2/2002 12/3/2002 2.31 $18,000,000.00 $18,001,156.25
Ohio Edison 12/4/2002 12/5/2002 2.25 $1,000,000.00 $2,500,156.25
Ohio Edison 12/6/2002 12/9/2002 2.25 $8,000,000.00 $8,001,500.00
Ohio Edison 12/9/2002 12/10/2002 2.27 $4,500,000.00 $12,500,788.19
2
Ohio Edison 12/13/2002 12/16/2002 2.28 $17,000,000.00 $17,003,231.84
Ohio Edison 12/20/2002 12/23/2002 2.28 $20,000,000.00 $20,003,802.17
Ohio Edison 12/26/2002 12/27/2002 2.28 $14,500,000.00 $14,500,918.85
Ohio Edison 12/30/2002 12/31/2002 2.38 $4,000,000.00 $8,500,560.76
6. During the period October 1, 2002 through December 31, 2002, the following
short-term debt was issued by the Utility Subsidiaries:
Transaction Maturity Transaction
Date Date Rate Amount Loan Balance
----------- -------- ---- ------------ ------------
American Transmission Systems, Incorporated (ATSI) - Intercompany Loan to:
--------------------------------------------------------------------------
Ohio Edison 10/31/2002 11/1/2002 1.94 $6,820,000.00 $31,604,138.92
Ohio Edison 11/29/2002 12/2/2002 1.94 $15,690,000.00 $47,349,344.42
Jersey Central Power & Light Company (JCP&L) - Intercompany Loan to:
--------------------------------------------------------------------
Ohio Edison 10/7/2002 10/25/2002 1.94 $50,000,000.00 $50,048,381.50
Ohio Edison 10/25/2002 11/1/2002 1.94 $50,000,000.00 $100,086,029.76
Ohio Edison 11/4/2002 12/2/2002 1.94 $20,000,000.00 $120,282,948.85
Ohio Edison 12/26/2002 1/2/2003 1.80 $15,000,000.00 $77,384,790.17
Ohio Edison - Intercompany Loan to:
-----------------------------------
The Cleveland Electric
Illuminating
Company (CEI) 11/29/2002 12/2/2002 1.94 $25,615,000.00 $243,103,158.13
CEI 12/31/2002 1/2/2003 1.80 $43,359,000.00 $286,843,438.71
The Toledo Edison
Company (TE) 9/30/2002 10/1/2002 1.99 $18,000,000.00 $147,450,237.86
TE 12/31/2002 1/2/2003 1.80 $23,000,000.00 $149,668,282.85
Pennsylvani Power Company (PennPower) - Intercompany Loan to:
------------------------------------------------------------
Ohio Edison 10/31/2002 11/1/2002 1.94 $9,780,000.00 $32,198,671.45
Ohio Edison 11/29/2002 12/2/2002 1.94 $6,780,000.00 $39,033,430.93
7. During the fourth quarter of 2002, there were no financings consummated by
any Non-Utility subsidiary that were not exempt under rule 52.
8. During the Fourth Quarter of 2002, no financial Hedge Instruments or
Anticipatory Hedges were entered into by FirstEnergy or its Utility
Subsidiaries.
9. Investments made during the fourth quarter 2002 in any intermediate
subsidiary or financing subsidiary are as follows:
Company Investment
------- ----------
(In Thousands $)
Bay Shore Power Company $1,563
Webb Technologies, Inc. 1,351
L. H. Cranston and Sons, Inc. 134
10. During the fourth quarter of 2002 FirstEnergy filed the following U-6B-2
forms:
Company Filing Date
------- -----------
CEI October 18, 2002
TE October 18, 2002
11. CEI and TE engaged in jurisdictional financing transactions during the
fourth quarter of 2002. Consolidated balance sheets of CEI and TE for the
quarter ended December 31, 2002 - incorporated by reference to CEI's and TE's
3
Form 10-K Annual Report to SEC for the year ended December 31, 2002 (File No.
1-2323 and 1-3583, respectively).
12. The following table presented in thousands, provides the capital structure
of FirstEnergy on a consolidated basis and each Utility Subsidiary as of the end
of the fourth quarter 2002.
FirstEnergy Amount Ratio
----------- ---------- -----
Common Equity $7,120,049 33.04%
Preferred Stock 765,261 3.55%
Long Term Debt 12,573,288 58.34%
Short Term Debt 1,092,817 5.07%
---------- -----
Total Capitalization $21,551,415 100.00%
----------- ------
Ohio Edison
-----------
Common Equity $2,840,361 55.21%
Preferred Stock 114,320 2.22%
Long Term Debt 1,781,864 34,64%
Short Term Debt 407,662 7.93%
---------- -----
Total Capitalization $5,144,207 100.00%
---------- ------
CEI
---
Common Equity $1,226,632 30.07%
Preferred Stock 202,425 4.96%
Long-Term Debt 2,362,191 57.90%
Short-Term Debt 288,583 7.07%
---------- -----
Total Capitalization $4,079,831 100.00%
---------- ------
TE
--
Common Equity $712,931 41.09%
Preferred Stock 126,000 7.26%
Long-Term Debt 746,620 43.03%
Short-Term Debt 149,653 8.62%
---------- -----
Total Capitalization $1,735,204 100.00%
---------- ------
PennPower
---------
Common Equity $229,374 42.95%
Preferred Stock 53,355 9.99%
Long-Term Debt 251,305 47.06%
Short-Term Debt - -%
---------- -----
Total Capitalization $534,034 100.00%
---------- ------
JCP&L
-----
Common Equity $3,274,069 68.26%
Preferred Stock 137,893 2.88%
Long-Term Debt 1,384,261 28.86%
Short-Term Debt - -%
--------- ------
Total Capitalization $4,796,223 100.00%
---------- ------
Metropolitan Edison Company (Met-Ed)
------------------------------------
Common Equity $1,315,586 62.78%
Preferred Stock 92,409 4.41%
Long-Term Debt 599,257 28.60%
Short-Term Debt 88,299 4.21%
--------- -----
Total Capitalization $2,095,551 100.00%
---------- ------
4
Penelec
-------
Common Equity $1,353,704 67.43%
Preferred Stock 92,214 4.59%
Long-Term Debt 471,087 23.47%
Short-Term Debt 90,427 4.51%
---------- -----
Total Capitalization $2,007,432 100.00%
---------- ------
13. The following table presented in thousands provides retained earnings
analysis of FirstEnergy on a consolidated basis and each Utility Subsidiary as
of the end of the fourth quarter 2002.
Ohio
FirstEnergy Edison CEI TE
----------- -------- --------- --------
Balance, January 1, 2002 $1,521,805 $572,272 $150,183 $113,436
Net Income 629,280 363,483 155,946 13,337
Cash Dividends on Preferred Stock - (6,510) (12,665 (10,057)
Cash Dividends on Common Stock (439,628) (121,900) - (5,600)
Other - - (4,743 (1,299)
---------- -------- -------- --------
Balance, December 31, 2002 $1,711,457 $807,345 $288,721 $109,817
---------- -------- -------- --------
PennPower JCP&L Met-Ed Penelec
--------- ----- ------ -------
Balance, January 1, 2002 $35,398 $ 29,343 $14,617 $10,795
Net Income 47,717 251,895 63,224 50,910
Cash Dividends on Preferred Stock (3,699) (1,471) - -
Cash Dividends on Common Stock (28,500) (190,700) (60,000) (29,000)
Other - 2,936 - -
------- ------- ------- -------
Balance, December 31, 2002 $50,916 $ 92,003 $17,841 $32,705
------- -------- ------- -------
14. During the fourth quarter of 2002, there was no change to the ratings of
FirstEnergy or its Utility Subsidiaries by any of the nationally recognized
credit rating agencies.
5
SIGNATURE
The undersigned registered holding company has duly caused this quarterly
report to be signed on its behalf by the undersigned officer thereunto duly
authorized pursuant to the requirements of the Public Utility Holding Company
Act of 1935.
FIRSTENERGY CORP.
March 28, 2003
By: /s/ Harvey L. Wagner
--------------------------------
Harvey L. Wagner
Vice President, Controller
and Chief Accounting Officer
(Principal Accounting Officer)
6