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 January 1, 2003 through March 31, 2003, there were no
sales of common stock or Preferred Securities by FirstEnergy.
2. FirstEnergy issued 4,419,850 shares of common stock pursuant to options
granted under employee benefit plans and dividend reinvestment plans during the
first quarter of 2003.
3. During the period January 1, 2003 through March 31, 2003, no FirstEnergy
common stock was transferred to a seller of securities of a company being
acquired.
4. During the first quarter of 2003, 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)
------------------------
Amp Ohio 20,000,000 (a) (b)
Constellation 1,500,000 (a) (b)
DTE Energy Trading 2,500,000 (a) (b)
Ontario Power Generation 5,000,000 (a) (b)
PJM Interconnection 10,000,000 (a) (b)
Progress Energy Ventures 5,000,000 (a) (b)
Reliant Energy Services 2,000,000 (a) (b)
Tenaska Power Services 1,000,000 (a) (b)
FES (Trading - Gas)
-------------------
Alliance Energy Services 1,000,000 (a) (b)
Cinergy Marketing & Trading 3,000,000 (a) (b)
Connective Energy 1,000,000 (a) (b)
Colonial Energy 1,000,000 (a) (b)
Cook Inlet Energy 1,000,000 (a) (b)
FIMAT 2,500,000 (a) (b)
1
NJR Energy Services 12,000,000 (a) (b)
ONEOK Energy Marketing 5,000,000 (a) (b)
Sempra Energy 3,500,000 (a) (b)
Sequent Energy Management 4,000,000 (a) (b)
Tenaska Marketing 4,000,000 (a) (b)
Western Gas Resources 3,000,000 (a) (b)
FES (Retail)
------------
Cincinnati Gas & Electric 7,300,000 (a) (c)
Public Service Electric 31,800,000 (a) (d)
(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
(c) Credit requirement in non-FirstEnergy service territories
(d) Credit backstop for tranches awarded in BGS-FP Auction
The following Letters of Credits (LOC) were issued during the first quarter of
2003:
Purpose of
Beneficiary Amount LOC
----------- ------ -----------
FirstEnergy
-----------
Jersey Central
Power & Light Company
(JCP&L) $17,500,000 (a)
(a) Temporary security for the BGS Auction.
5. During the period January 1, 2003 through March 31, 2003, the FirstEnergy
Companies issued the following indebtedness:
Transaction Maturity Transaction
Date Date Rate Amount Loan Balance
----------- -------- ---- ------------ ------------
CitiBank (FirstEnergy Revolver)
-------------------------------
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 12/27/2002 1/13/2003 2.56 $60,000,000.00 $60,072,604.17
FirstEnergy 1/3/2003 1/6/2003 4.43 $13,000,000.00 $13,004,728.08
FirstEnergy 1/21/2003 1/22/2003 6.21 $35,000,000.00 $35,005,956.35
FirstEnergy 1/21/2003 1/27/2003 2.50 $110,000,000.00 $110,045,833.33
FirstEnergy 1/21/2003 2/4/2003 2.50 $60,000,000.00 $60,058,333.33
FirstEnergy 1/31/2003 2/21/2003 2.55 $35,000,000.00 $185,275,187.50
FirstEnergy 2/20/2003 3/20/2003 2.50 $50,000,000.00 $50,097,222.22
FirstEnergy 2/25/2003 3/27/2003 2.50 $60,000,000.00 $105,218,750.00
FirstEnergy 2/28/2003 3/31/2003 2.50 $60,000,000.00 $145,312,152.77
FirstEnergy 3/5/2003 3/6/2003 4.38 $13,000,000.00 $13,001,558.22
FirstEnergy 3/17/2003 3/24/2003 2.49 $100,000,000.00 $100,048,368.06
FirstEnergy 3/20/2003 4/10/2003 2.44 $100,000,000.00 $150,213,281.25
FirstEnergy 3/25/2003 4/1/2003 2.55 $40,000,000.00 $90,044,625.00
FirstMerit (Ohio Edison Company (OE) Bi-Lateral Facility)
---------------------------------------------------------
OE 1/13/2003 1/14/2003 2.00 $3,000,000.00 $3,000,166.67
OE 1/21/2003 1/22/2003 2.00 $14,000,000.00 $14,000,777.78
OE 2/3/2003 2/4/2003 2.06 $10,000,000.00 $10,000,572.92
OE 2/4/2003 2/5/2003 2.00 $4,000,000.00 $14,000,777.78
OE 2/20/2003 2/21/2003 2.50 $14,000,000.00 $14,000,972.22
OE 3/3/2003 3/4/2003 2.06 $10,000,000.00 $10,000,572.92
OE 3/4/2003 3/5/2003 2.00 $4,000,000.00 $14,000,777.78
2
KeyBank (OE Bi-Lateral Facility)
--------------------------------
OE 1/2/2003 1/3/2003 2.31 $3,500,000.00 $5,000,321.19
OE 1/3/2003 1/6/2003 2.25 $15,000,000.00 $20,003,750.00
OE 1/27/2003 1/28/2003 2.27 $1,500,000.00 $1,500,094.58
OE 2/4/2003 2/5/2003 2.25 $5,000,000.00 $5,000,312.50
OE 2/20/2003 2/21/2003 2.27 $20,000,000.00 $20,001,261.11
OE 3/4/2003 3/5/2003 2.27 $11,500,000.00 $11,500,725.14
OE 3/5/2003 3/6/2003 2.22 $8,500,000.00 $20,001,232.67
6. During the period January 1, 2003 through March 31, 2003, the following
short-term debt was issued by the Utility Subsidiaries:
Transaction Maturity Transaction
Date Date Rate Amount Loan Balance
-------- -------- ---- ------------ ------------
JCP&L - Intercompany Loan to:
-----------------------------
OE 1/22/2003 1/27/2003 1.54 $25,000,000.00 $84,475,435.69
OE 1/27/2003 1/31/2003 1.54 $16,000,000.00 $100,492,682.97
OE 2/4/2003 2/14/2003 1.40 $7,000,000.00 $87,540,729.07
OE 2/14/2003 2/19/2003 1.40 $57,000,000.00 $144,568,742.27
OE - Intercompany Loan to:
--------------------------
The Cleveland Electric
Illuminating
Company (CEI) 1/31/2003 2/3/2003 1.54 $62,005,000.00 $349,250,376.06
The Toledo Edison
Company (TE) 1/31/2003 2/3/2003 1.54 $57,591,000.00 $207,472,253.71
Effective February 19, 2003, all Utility Subsidiaries short-term borrowings were
through Money Pool mechanisms. The following short-term debt was issued by the
Regulated Money Pool during the First Quarter of 2003:
Regulated Money Pool Transaction Maturity Transaction
Loan to: Date Date Rate Amount
------------------ ------------ -------- -------- -----------
OE 02/03/2003 02/04/2003 1.3954% $15,000,000.00
OE 02/04/2003 02/05/2003 1.3954% 22,300,000.00
OE 02/07/2003 02/08/2003 1.3954% 19,700,000.00
OE 02/11/2003 02/12/2003 1.3954% 32,700,000.00
OE 02/14/2003 02/15/2003 1.3954% 96,700,000.00
OE 02/19/2003 02/20/2003 1.3954% 129,300,000.00
OE 02/20/2003 02/21/2003 1.3954% 60,000,000.00
OE 02/21/2003 02/22/2003 1.3954% 3,450,000.00
OE 03/03/2003 03/04/2003 1.3483% 47,631,000.00
OE 03/04/2003 03/05/2003 1.3483% 22,037,000.00
OE 03/05/2003 03/06/2003 1.3483% 22,000,000.00
OE 03/10/2003 03/11/2003 1.3483% 4,000,000.00
OE 03/11/2003 03/12/2003 1.3483% 41,300,000.00
OE 03/14/2003 03/15/2003 1.3483% 50,500,000.00
OE 03/18/2003 03/19/2003 1.3483% 9,200,000.00
OE 03/19/2003 03/20/2003 1.3483% 12,900,000.00
OE 03/24/2003 03/25/2003 1.3483% 7,620,000.00
OE 03/25/2003 03/26/2003 1.3483% 5,800,000.00
OE 03/27/2003 03/28/2003 1.3483% 5,858,000.00
OE 03/28/2003 03/29/2003 1.3483% 23,500,000.00
Pennsylvania Power Company
(Penn) 02/04/2003 02/05/2003 1.3954% 1,446,000.00
Penn 02/05/2003 02/06/2003 1.3954% 2,090,000.00
Penn 02/10/2003 02/11/2003 1.3954% 600,000.00
Penn 02/11/2003 02/12/2003 1.3954% 1,781,000.00
Penn 02/12/2003 02/13/2003 1.3954% 1,310,000.00
Penn 02/18/2003 02/19/2003 1.3954% 2,176,000.00
Penn 02/19/2003 02/20/2003 1.3954% 35,732,000.00
Penn 02/21/2003 02/22/2003 1.3954% 747,000.00
Penn 02/24/2003 02/25/2003 1.3954% 5,287,000.00
3
Penn 02/25/2003 02/26/2003 1.3954% 1,757,000.00
Penn 02/26/2003 02/27/2003 1.3954% 1,249,000.00
Penn 02/28/2003 03/01/2003 1.3954% 836,000.00
Penn 03/04/2003 03/05/2003 1.3483% 952,000.00
Penn 03/05/2003 03/06/2003 1.3483% 624,000.00
Penn 03/07/2003 03/08/2003 1.3483% 530,000.00
Penn 03/10/2003 03/11/2003 1.3483% 210,000.00
Penn 03/11/2003 03/12/2003 1.3483% 3,382,000.00
Penn 03/12/2003 03/13/2003 1.3483% 6,800,000.00
Penn 03/14/2003 03/15/2003 1.3483% 510,000.00
Penn 03/19/2003 03/20/2003 1.3483% 746,000.00
Penn 03/21/2003 03/22/2003 1.3483% 445,000.00
Penn 03/24/2003 03/25/2003 1.3483% 2,033,000.00
Penn 03/25/2003 03/26/2003 1.3483% 2,388,000.00
Penn 03/26/2003 03/27/2003 1.3483% 14,261,000.00
Penn 03/27/2003 03/28/2003 1.3483% 8,042,000.00
Penn 03/28/2003 03/29/2003 1.3483% 482,000.00
Penn 03/31/2003 04/01/2003 1.3483% 1,403,000.00
CEI 02/04/2003 02/05/2003 1.3954% 4,731,000.00
CEI 02/05/2003 02/06/2003 1.3954% 6,235,000.00
CEI 02/07/2003 02/08/2003 1.3954% 4,826,000.00
CEI 02/10/2003 02/11/2003 1.3954% 5,619,000.00
CEI 02/11/2003 02/12/2003 1.3954% 5,355,000.00
CEI 02/12/2003 02/13/2003 1.3954% 5,102,000.00
CEI 02/18/2003 02/19/2003 1.3954% 2,897,000.00
CEI 02/21/2003 02/22/2003 1.3954% 2,971,000.00
CEI 02/24/2003 02/25/2003 1.3954% 5,614,000.00
CEI 02/25/2003 02/26/2003 1.3954% 3,975,000.00
CEI 02/26/2003 02/27/2003 1.3954% 14,515,000.00
CEI 03/04/2003 03/05/2003 1.3483% 5,196,000.00
CEI 03/05/2003 03/06/2003 1.3483% 3,740,000.00
CEI 03/07/2003 03/08/2003 1.3483% 5,469,000.00
CEI 03/10/2003 03/11/2003 1.3483% 5,635,000.00
CEI 03/11/2003 03/12/2003 1.3483% 8,396,000.00
CEI 03/12/2003 03/13/2003 1.3483% 45,365,000.00
CEI 03/14/2003 03/15/2003 1.3483% 16,374,000.00
CEI 03/17/2003 03/18/2003 1.3483% 1,307,000.00
CEI 03/18/2003 03/19/2003 1.3483% 4,041,000.00
CEI 03/19/2003 03/20/2003 1.3483% 9,853,000.00
CEI 03/21/2003 03/22/2003 1.3483% 3,296,000.00
CEI 03/24/2003 03/25/2003 1.3483% 3,957,000.00
CEI 03/25/2003 03/26/2003 1.3483% 420,000.00
TE 02/04/2003 02/05/2003 1.3954% 2,862,000.00
TE 02/05/2003 02/06/2003 1.3954% 4,625,000.00
TE 02/07/2003 02/08/2003 1.3954% 930,000.00
TE 02/10/2003 02/11/2003 1.3954% 1,316,000.00
TE 02/11/2003 02/12/2003 1.3954% 5,875,000.00
TE 02/12/2003 02/13/2003 1.3954% 1,880,000.00
TE 02/18/2003 02/19/2003 1.3954% 3,238,500.00
TE 02/21/2003 02/22/2003 1.3954% 1,383,000.00
TE 02/25/2003 02/26/2003 1.3954% 2,588,000.00
TE 02/26/2003 02/27/2003 1.3954% 6,761,000.00
TE 03/04/2003 03/05/2003 1.3483% 1,814,000.00
TE 03/05/2003 03/06/2003 1.3483% 4,751,000.00
TE 03/07/2003 03/08/2003 1.3483% 1,584,000.00
TE 03/10/2003 03/11/2003 1.3483% 842,000.00
TE 03/11/2003 03/12/2003 1.3483% 927,000.00
TE 03/12/2003 03/13/2003 1.3483% 22,273,000.00
TE 03/14/2003 03/15/2003 1.3483% 7,081,000.00
TE 03/17/2003 03/18/2003 1.3483% 1,225,000.00
TE 03/18/2003 03/19/2003 1.3483% 1,740,000.00
TE 03/19/2003 03/20/2003 1.3483% 2,071,000.00
TE 03/21/2003 03/22/2003 1.3483% 2,287,000.00
TE 03/24/2003 03/25/2003 1.3483% 3,745,000.00
TE 03/25/2003 03/26/2003 1.3483% 5,749,000.00
American Transmission
Systems, Incorporated
(ATSI) 02/03/2003 02/04/2003 1.3954% 1,068,000.00
ATSI 02/04/2003 02/05/2003 1.3954% 350,000.00
ATSI 02/19/2003 02/20/2003 1.3954% 39,193,000.00
ATSI 02/24/2003 02/25/2003 1.3954% 11,043,000.00
ATSI 02/25/2003 02/26/2003 1.3954% 24,000.00
4
ATSI 02/26/2003 02/27/2003 1.3954% 19,000.00
ATSI 02/27/2003 02/28/2003 1.3954% 100,000.00
ATSI 03/05/2003 03/06/2003 1.3483% 1,225,000.00
ATSI 03/07/2003 03/08/2003 1.3483% 841,000.00
ATSI 03/11/2003 03/12/2003 1.3483% 90,000.00
ATSI 03/18/2003 03/19/2003 1.3483% 248,000.00
ATSI 03/21/2003 03/22/2003 1.3483% 10,000.00
ATSI 03/25/2003 03/26/2003 1.3483% 86,000.00
ATSI 03/26/2003 03/27/2003 1.3483% 320,000.00
ATSI 03/28/2003 03/29/2003 1.3483% 414,000.00
JCP&L 02/19/2003 02/20/2003 1.3954% 144,568,742.27
JCP&L 02/24/2003 02/25/2003 1.3954% 24,000,000.00
JCP&L 03/06/2003 03/07/2003 1.3483% 13,000,000.00
Metropolitan Edison Company
(Met-Ed) 03/14/2003 03/15/2003 1.3483% 32,000,000.00
Met-Ed 03/28/2003 03/29/2003 1.3483% 10,000,000.00
Met-Ed 03/31/2003 04/01/2003 1.3483% 48,000,000.00
Pennsylvania Electric Company
(Penelec) 03/07/2003 03/08/2003 1.3483% 116,062,965.48
Penelec 03/14/2003 03/15/2003 1.3483% 9,000,000.00
Penelec 03/31/2003 04/01/2003 1.3483% 1,124.85
York Haven Power Company 02/21/2003 02/22/2003 1.3954% 8,002,480.75
7. During the first quarter of 2003, there were no financings consummated by
any Non-Utility subsidiary that were not exempt under rule 52.
8. During the First Quarter of 2003, FirstEnergy Corp. entered into three (3)
transactions designed to hedge the fair value of a portion of FirstEnergy
Corp.'s fixed-rate long-term debt portfolio against decreases in interest rates.
The hedge structures are fixed - for - floating interest rate swaps, whereby
FirstEnergy Corp. will receive fixed payments equivalent to the fixed coupon
rates of the bonds being hedged, and pay floating rate payments based on the
6-month London Interbank Offering Rate (LIBOR) plus an applicable spread. The
notional amounts, counterparties, and principal terms of the fair value hedges
are filed pursuant to request for confidential treatment.
9. Investments made during the first quarter of 2003 in any intermediate
subsidiary or financing subsidiary are as follows:
Company Investment
------- ----------
(In Thousands $)
Centerior Funding Corporation $52,500
10. During the first quarter of 2003 FirstEnergy filed the following U-6B-2
forms:
Company Filing Date
------- -----------
OE March 10, 2003
Met-Ed March 28, 2003
11. Met-Ed engaged in jurisdictional financing transactions during the first
quarter of 2003. Consolidated balance sheets of Met-Ed for the quarter ended
March 31, 2003 are incorporated by reference to Met-Ed's Form 10-Q Quarterly
Report to SEC for the quarter ended March 31, 2003 (File No. 1-446).
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 first quarter 2003.
5
FirstEnergy Amount Ratio
----------- ---------- -----
Common Equity $ 7,262,260 33.70%
Preferred Stock 765,363 3.55%
Long Term Debt 12,666,967 58.78%
Short Term Debt 855,327 3.97%
----------- ------
Total Capitalization $21,549,917 100.00%
----------- ------
OE
--
Common Equity $2,918,809 58.69%
Preferred Stock 114,320 2.30%
Long Term Debt 1,764,602 35.48%
Short Term Debt 175,384 3.53%
---------- ------
Total Capitalization $4,973,115 100.00%
---------- ------
CEI
---
Common Equity $1,287,550 31.20%
Preferred Stock 202,423 4.91%
Long-Term Debt 2,314,599 56.09%
Short-Term Debt 321,828 7.80%
---------- ------
Total Capitalization $4,126,400 100.00%
---------- ------
TE
--
Common Equity $ 739,403 41.42%
Preferred Stock 126,000 7.06%
Long-Term Debt 671,835 37.63%
Short-Term Debt 248,045 13.89%
---------- ------
Total Capitalization $1,785,283 100.00%
---------- ------
Penn
----
Common Equity $ 221,326 42.08%
Preferred Stock 53,355 10.14%
Long-Term Debt 251,297 47.78%
Short-Term Debt - -%
---------- ------
Total Capitalization $ 525,978 100.00%
---------- ------
JCP&L
-----
Common Equity $3,238,856 68.21%
Preferred Stock 137,892 2.90%
Long-Term Debt 1,372,028 28.89%
Short-Term Debt - -%
---------- ------
Total Capitalization $4,748,776 100.00%
---------- ------
Met-Ed
------
Common Equity $1,332,628 58.00%
Preferred Stock 92,461 4.02%
Long-Term Debt 807,399 35.14%
Short-Term Debt 65,212 2.84%
--------- ------
Total Capitalization $2,297,700 100.00%
---------- ------
Penelec
-------
Common Equity $1,359,002 70.71%
Preferred Stock 92,267 4.80%
Long-Term Debt 470,627 24.49%
Short-Term Debt - -%
---------- ------
Total Capitalization $1,921,896 100.00%
---------- ------
6
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 first quarter 2003.
FirstEnergy OE CEI TE
----------- ------ -------- --------
Balance, December 31, 2002 $1,711,457 $807,345 $288,721 $109,817
Net Income 240,985 88,942 62,669 28,600
Cash Dividends on Preferred Stock - (659) (1,863) (2,211)
Cash Dividends on Common Stock (110,159) (13,000) - -
Other - - 2,646 606
---------- -------- -------- --------
Balance, March 31, 2003 $1,842,283 $882,628 $352,173 $136,812
---------- -------- -------- --------
Penn JCP&L Met-Ed Penelec
--------- ------ ------- -------
Balance, December 31, 2002 $ 50,916 $92,003 $17,841 $32,705
Net Income 5,864 53,882 17,017 5,290
Cash Dividends on Preferred Stock (912) (125) - -
Cash Dividends on Common Stock (13,000) (89,000) - -
Other - - (1) -
-------- -------- ------- -------
Balance, March 31, 2003 $ 42,868 $ 56,760 $34,857 $37,995
-------- -------- ------- -------
14. During the first quarter of 2003, there was no change to the ratings of
FirstEnergy or its Utility Subsidiaries by any of the nationally recognized
credit rating agencies.
7
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.
May 28, 2003
By: /s/ Harvey L. Wagner
-------------------------------------
Harvey L. Wagner
Vice President, Controller
and Chief Accounting Officer
(Principal Accounting Officer)
8