FirstEnergy Reports 2012 Earnings

                      FirstEnergy Reports 2012 Earnings

Reaffirms 2013 Non-GAAP Guidance

PR Newswire

AKRON, Ohio, Feb. 25, 2013

AKRON, Ohio, Feb. 25, 2013 /PRNewswire/ --FirstEnergy Corp. (NYSE: FE) today
reported full-year 2012 basic earnings of $3.34 per share of common stock on a
non-GAAP* basis. These results exclude the impact of the special items listed
below. In 2011, non-GAAP earnings were $3.64 per share.

"In 2012, we successfully controlled costs, improved our operational
performance, and continued building our competitive business, consistent with
our strategies," said Anthony J. Alexander, president and chief executive
officer of FirstEnergy. "This year, we will remain focused on continuing the
strong operational performance in our three core businesses, generation,
transmission and distribution, while delivering financial stability and
pursuing opportunities for growth."

The company also reaffirmed its 2013 non-GAAP earnings guidance of $2.85 to
$3.15 per share.

On a GAAP basis, full-year 2012 earnings were $1.85 per basic share ($1.84
diluted), on net income of $771 million and revenue of $15.3 billion. In
2011, GAAP earnings were $2.22 per basic share ($2.21 diluted) on net income
of $869 million and revenue of $16.1 billion.

Fourth quarter 2012 non-GAAP earnings were $0.80 per share of common stock.
This compares to fourth quarter 2011 non-GAAP earnings of $0.77 per share. On
a GAAP basis, the company reported a fourth quarter 2012 net loss of $148
million, or a loss of $0.35 per basic share, on revenue of $3.5 billion. In
2011, GAAP earnings were $0.23 per basic and diluted share on net income of
$99 million and revenue of $3.9 billion.

The annual adjustment for pension and other post-employment benefits actuarial
assumptions reduced fourth quarter 2012 GAAP earnings by $0.91 per share,
resulting in the loss for the quarter. Last year's adjustment reduced GAAP
earnings by $0.74 per share in the fourth quarter of 2011, but that adjustment
was more than offset by a one-time gain from the sale of non-core assets.

GAAP to Non-GAAP* Reconciliation
                                        Fourth Quarter Full Year     Full Year
                                        2012    2011   2012   2011   2013
Basic Earnings (Loss) Per Share (GAAP)  $(0.35) $0.23  $1.85  $2.22  $2.55 -
Excluding Special Items:
Mark-To-Market Adjustments
 Pension/OPEB Actuarial Assumptions 0.91    0.74   0.91   0.78   --
 Other                              (0.03)  (0.03) (0.11) 0.02   --
Regulatory Charges                     0.02    --     0.08   0.05   0.06
Trust Securities Impairment            0.01    --     0.02   0.03   --
Income Tax Legislative Changes         0.02    0.06   0.08   0.07   --
Merger Transaction/Integration Costs   0.02    0.01   0.04   0.41   --
Impact of Non-Core Asset                                        

 Sales/Impairments                  0.04    (0.81) 0.03   (0.78) 0.08
Plant Closing Costs                    0.12    --     0.29   --     0.01
Restructuring Costs                    0.01    --     0.02   --     0.01
Merger Accounting – Commodity                                   

 Contracts                          0.03    0.08   0.13   0.26   0.08
Generating Plant Charges               --      0.49   --     0.52   --
Litigation Resolution                  --      --     --     0.06   --
Debt Redemption Costs                  --      --     --     --     0.06
Basic Earnings Per Share (Non-GAAP*)    $0.80   $0.77  $3.34  $3.64  $2.85 -

Fourth quarter 2012 non-GAAP results benefited from lower operating costs,
higher distribution deliveries and increased investment income. Results were
negatively affected by lower sales margins and a higher effective income tax

Full year non-GAAP results benefited from lower operating costs, the net
impact of the Allegheny merger (2011 included results for only 10 months),
reduced interest expense and higher investment income. These drivers partially
offset lower full-year sales margins, a higher effective income tax rate, and
reduced distribution deliveries.

Fourth quarter distribution deliveries increased 1 percent in 2012 compared to
2011. Industrial deliveries in the quarter decreased 3 percent compared to
the same period in 2011, while commercial deliveries were essentially flat and
residential deliveries increased 5 percent, largely due to cooler weather
compared to the fourth quarter of 2011.

The company's competitive subsidiary, FirstEnergy Solutions, expanded its
retail customer count by 42 percent in the year, growing from approximately
1.9 million customers at the end of 2011 to nearly 2.6 million at the end of
2012. FirstEnergy Solutions also grew direct retail sales by 18 percent in
the year. In the fourth quarter, sales margins benefited from the execution
of the company's retail strategy, but these gains were offset by a decrease in
capacity revenues due to lower capacity prices.

FirstEnergy's Consolidated Report to the Financial Community – which provides
highlights on company developments and financial results for the year and for
the fourth quarter of 2012 – is posted on the company's website – To access the report, click on Fourth Quarter
2012 Consolidated Report to the Financial Community.

The company invites investors, customers and other interested parties to
listen to a live Internet webcast of its teleconference for financial analysts
at 1:00 p.m. Eastern Time today. FirstEnergy management will present an
overview of the company's financial results, followed by a question-and-answer
session. The teleconference can be accessed on the company's website by
selecting the Q4 2012 Earnings Conference Call link. The webcast will be
archived on the website. 

FirstEnergy is a diversified energy company dedicated to safety, reliability
and operational excellence. Its 10 electric distribution companies form one
of the nation's largest investor-owned electric systems, serving customers in
Maryland, Ohio, Pennsylvania, New Jersey, New York and West Virginia. Its
generation subsidiaries control more than 20,000 megawatts of capacity from a
diversified mix of scrubbed coal, non-emitting nuclear, natural gas, hydro,
pumped-storage hydro and other renewables. Follow FirstEnergy on Twitter

(*) This news release contains non-GAAP financial measures. Generally, a
non-GAAP financial measure is a numerical measure of a company's historical or
future financial performance, financial position, or cash flows that either
excludes or includes amounts that are not normally excluded or included in the
most directly comparable measure calculated and presented in accordance with
accounting principles generally accepted in the United States (GAAP). These
non-GAAP financial measures are intended to complement, and not considered as
an alternative to, the most directly comparable GAAP financial measure. Also,
the non-GAAP financial measures may not be comparable to similarly titled
measures used by other entities.

Forward-Looking Statements: This News Release 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, in
general, and the retail sales market in particular, 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 and pending rate cases, 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, regulatory
outcomes associated with Hurricane Sandy, changing energy, capacity and
commodity market prices including, but not limited to, coal, natural gas and
oil, and availability and their impact on retail margins, 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 discharge, water intake and coal
combustion residual regulations, the potential impacts of CAIR, and any laws,
rules or regulations that ultimately replace CAIR, and the effects of the
EPA's MATS rules including our estimated costs of compliance, 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 deactivate or idle certain generating units), the
uncertainties associated with the deactivation of certain older unscrubbed
regulated and competitive fossil units, including the impact on vendor
commitments, and the timing thereof as they relate to, among other things, the
RMR arrangements and the reliability of the transmission grid, 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), adverse legal
decisions and outcomes related to ME's and PN's ability to recover certain
transmission costs through their TSC riders, the impact of future changes to
the operational status or availability of our generating units, the risks and
uncertainties associated with litigation, arbitration, mediation and like
proceedings, including, but not limited to, any such proceedings related to
vendor commitments, replacement power costs being higher than anticipated or
inadequately hedged, the ability to comply with applicable state and federal
reliability standards and energy efficiency and peak demand reduction
mandates, changes in customers' demand for power, including but not limited
to, changes resulting from the implementation of state and federal energy
efficiency and peak demand reduction mandates, the ability to accomplish or
realize anticipated benefits from strategic and financial goals including, but
not limited to, the ability to successfully complete the proposed West
Virginia asset transfer and to improve our credit metrics, 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 Regulated Distribution segment and to continue to
successfully implement our direct retail sales strategy in the Competitive
Energy Services segment, changing market conditions that could affect the
measurement of liabilities and 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,
actions that may be taken by credit rating agencies that could negatively
affect us and our subsidiaries' access to financing, increase the costs
thereof, and increase requirements to post additional collateral to support
outstanding commodity positions, LOCs and other financial guarantees, changes
in national and regional economic conditions affecting us, our subsidiaries
and our major industrial and commercial customers, and other counterparties
including fuel suppliers, with which we do business, issues concerning the
stability 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. FirstEnergy
expressly disclaims 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.

SOURCE FirstEnergy Corp.

Contact: News Media Contact: Tricia Ingraham, +1-330-384-5247; Investor
Contact: Irene Prezelj, +1-330-384-3859
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