SEC File No. 70-10122





UNITED STATES

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. 70-10122                                                             :
(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. 70-10122 have been carried out in accordance with the Commission’s Order dated June 30, 2003 as follows:

(1)    During the period July 1, 2005 through September 30, 2005, there were no sales of common stock or preferred securities by FirstEnergy.

(2)    FirstEnergy purchased on the open market 246,763 shares of common stock pursuant to its dividend reinvestment plans and 2,000 shares of restricted stock and zero shares of restricted stock units were granted under employee benefit plans during the third quarter of 2005. The restrictions on restricted stock units lapse over a defined period of time or based on performance. Dividends are received on the restricted stock units and are reinvested in additional shares.

(3)    During the period July 1, 2005 through September 30, 2005, no FirstEnergy common stock was transferred to a seller of securities of a company being acquired.

(4)    During the period July 1, 2005 through September 30, 2005, there was no long-term Debt and Preferred Securities issued by FirstEnergy. FirstEnergy issued the following short-term Debt during the third quarter of 2005:

   
Transaction
Date   
 
Maturity
Date   
 
Rate 
 
Transaction
Amount     
 
KeyBank (FirstEnergy Revolver - $2 Billion 5-Year Facility)
                 
FirstEnergy
   
7/1/2005
   
7/6/2005
7/7/2005
   
3.83
%
$
44,000,000
 
FirstEnergy
   
7/8/2005
   
7/12/2005
   
3.80
%
$
20,000,000
 
FirstEnergy
   
7/11/2005
   
7/12/2005
   
3.83
%
$
18,000,000
 
FirstEnergy
   
7/15/2005
   
7/18/2005
   
3.92
%
$
32,000,000
 
FirstEnergy
   
7/18/2005
   
7/19/2005
   
3.84
%
$
2,000,000
 
FirstEnergy
   
7/20/2005
   
7/21/2005
7/25/2005
7/26/2005
   
3.76
%
$
73,000,000
 
FirstEnergy
   
7/29/2005
   
8/2/2005
   
3.91
%
$
46,000,000
 
FirstEnergy
   
8/1/2005
   
8/2/2005
8/3/2005
   
3.88
%
$
17,500,000
 
FirstEnergy
   
9/1/2005
   
9/2/2005
9/6/2005
   
4.17
%
$
15,000,000
 
FirstEnergy
   
9/20/2005
   
9/21/2005
   
4.22
%
$
32,000,000
 

1
 
(5)    During the period July 1, 2005 through September 30, 2005, the following short-term debt was issued by the Utility Subsidiaries:

   
   Transaction
      Date   
 
   Maturity
     Date   
 
Rate 
 
    Transaction
Amount
 
CitiBank (FirstEnergy Revolver - $2 Billion 5-Year Facility)
                 
Ohio Edison Company (OE)
   
7/1/2005
   
7/11/2005
   
3.80
%
$
30,000,000
 
                           
Union Bank of California (Pennsylvania Electric Company (Penelec) $100 Million Term Loan Facility)
                         
Penelec
   
7/15/2005
   
8/15/2005
   
3.81
%
$
75,000,000
 
Penelec
   
8/15/2005
   
9/15/2005
   
4.00
%
$
75,000,000
 
Penelec
   
9/15/2005
   
10/7/2005
   
4.19
%
$
75,000,000
 

Under the Utility Money Pool, the principal balance of borrowings at the end of the third quarter of 2005 and average interest rate during the third quarter of 2005 are as follows:

Regulated Money Pool
Loan to/(Borrowing from):     
 
Average
Interest Rate
 
Principal     
Balance     
 
           
OE
   
3.5021
%
$
793,126,314
 
Pennsylvania Power Company (Penn)
   
3.5021
%
 
(34,821,229
)
The Cleveland Electric Illuminating Company (CEI)
   
3.5021
%
 
(466,432,871
)
The Toledo Edison Company (TE)
   
3.5021
%
 
(378,072,481
)
American Transmission Systems, Incorporated (ATSI)
   
3.5021
%
 
22,160,179
 
Jersey Central Power & Light Company (JCP&L)
   
3.5021
%
 
(114,932,142
)
Metropolitan Edison Company (Met-Ed)
   
3.5021
%
 
(76,755,046
)
Penelec
   
3.5021
%
 
(114,748,754
)
York Haven Power Company
   
3.5021
%
 
15,792,901
 

(6)    During the third quarter of 2005, there were no financings consummated by any Non-Utility subsidiary that were not exempt under rule 52.

(7)    During the third quarter of 2005, the following guarantees were made by FirstEnergy to support activities of the corporation and its subsidiaries:

Beneficiary
 
Amount
 
Terms
 
Purpose of
Guarantee
 
               
FirstEnergy Solutions Corp. (FES) (Trading - Electric)
             
CMS Energy Resource Mgmt Co.
 
$
7,500,000
   
(a)
 
 
(b)
 
Midwest ISO
   
10,000,000
   
(a)
 
 
(b)
 
PJM Interconnection
   
10,000,000
   
(a)
 
 
(b)
 
                   
FES (Trading - Gas)
                   
Columbia Gulf Transmission Corp
   
2,000,000
   
(a)
 
 
(c)
 
                     
FirstEnergy Generation Corp. (Fuel Marketing / Coal)
                   
Koch Carbon LLC
   
5,000,000
   
(a)
 
 
(d)
 
Ohio Valley Electric Corp.
   
300,000,000
   
(e)
 
 
(f)
 
                     
 
 
2
 
FirstEnergy
     
McKinley Aircraft Holdings Inc.
10,167,137
(g)
(h)
McKinley Aircraft Holdings Inc.
25,100,000
(i)
(h)
McKinley Aircraft Holdings Inc.
6,096,606
(j)
(h)

(a)  
This is a continuing guaranty, with a ten-day termination right by FirstEnergy.
(b)  
Parental guarantees issued by FirstEnergy to provide credit support for electric power purchases by subsidiary.
(c)  
Parental guarantees issued by FirstEnergy to provide credit support for natural gas purchases by subsidiary.
(d)  
Credit backstop to support coal purchases and/or emission trading
(e)  
This guaranty expires December 31, 2026.
(f)  
Credit backstop to support FirstEnergy Generation Corp.’s ownership share in Ohio Valley Electric Corp.
(g)  
This guaranty expires July 10, 2010.
(h)  
Credit backstop for FirstEnergy Corp. airplane lease.
(i)  
This guaranty expires June 30, 2008.
(j)  
This guaranty expires January 5, 2008.

The following Letters of Credits (LOC) were issued during the third quarter of 2005:

Beneficiary
 
Amount   
 
Purpose of
LOC     
 
           
FirstEnergy (on behalf of GPU Service Company)
         
Cologne Reinsurance Company (Dublin) Ltd.
 
$
6,008,976
   
(a)
 
               
GPU Service Company
             
Genesis Insurance Co.
   
3,873,554
   
(a)
 
               
FirstEnergy Facilities Services Group, LLC
             
Old Republic Insurance Company
   
6,876,385
   
(b)
 

(a)  
Renewed Surety Bonds for self-insurance claims. Original LOC was issued in the fourth quarter of 2003.
(b)  
Renewed collateral of FirstEnergy Facilities Services Group, LLC insurance. Original LOC was issued in the third quarter of 2003.

(8)    During the third quarter of 2005, FirstEnergy entered into five forward starting swap agreements in order to hedge a portion of the consolidated interest rate risk associated with the planned issuance of fixed-rate, long-term debt securities for one or more of its consolidated entities in the third and fourth quarters of 2006. These derivatives are treated as cash flow hedges, protecting against the risk of changes in the future interest payments resulting from changes in benchmark U.S. Treasury rates between the date of hedge inception and the date of the debt issuance. The notional amounts, counterparties, and principal terms of the forward starting swap agreements are filed pursuant to request for confidential treatment.

(9)    There were no investments made in any intermediate subsidiary or financing subsidiary during the third quarter of 2005.

(10)    During the third quarter of 2005, FirstEnergy filed the following U-6B-2 Forms:
 
              Company                                                     Filing Date    
  CEI                                                            July 12, 2005
 
3
 
(11)       CEI engaged in jurisdictional financing transactions during the third quarter of 2005. Consolidated balance sheets of CEI for the quarter ended September 30, 2005 are incorporated by reference to CEI’s Form 10-Q Quarterly Report to SEC for the quarter ended September 30, 2005 (File No. 1-2323).
 
(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 third quarter of 2005.

FirstEnergy
 
  Amount    
 
  Ratio  
 
Common Equity
 
$
8,827,959
   
44.91
%
Preferred Stock
   
183,719
   
0.93
%
Long-Term Debt
   
10,402,146
   
52.91
%
Short-Term Debt
   
246,505
   
1.25
%
Total Capitalization
 
$
19,660,329
   
100.00
%
               
OE
             
Common Equity
 
$
2,475,088
   
59.39
%
Preferred Stock
   
75,070
   
1.80
%
Long-Term Debt
   
1,372,803
   
32.94
%
Short-Term Debt
   
244,555
   
5.87
%
Total Capitalization
 
$
4,167,516
   
100.00
%
               
CEI
             
Common Equity
 
$
1,943,540
   
43.07
%
Preferred Stock
   
-
   
-
%
Long-Term Debt
   
2,015,436
   
44.66
%
Short-Term Debt
   
553,784
   
12.27
%
Total Capitalization
 
$
4,512,760
   
100.00
%
               
TE
             
Common Equity
 
$
865,338
   
51.22
%
Preferred Stock
   
96,000
   
5.68
%
Long-Term Debt
   
350,023
   
20.72
%
Short-Term Debt
   
378,190
   
22.38
%
Total Capitalization
 
$
1,689,551
   
100.00
%
               
Penn
             
Common Equity
 
$
371,943
   
65.51
%
Preferred Stock
   
14,105
   
2.48
%
Long-Term Debt
   
146,944
   
25.88
%
Short-Term Debt
   
34,821
   
6.13
%
Total Capitalization
 
$
567,813
   
100.00
%
               
JCP&L
             
Common Equity
 
$
3,217,806
   
71.03
%
Preferred Stock
   
12,649
   
0.28
%
Long-Term Debt
   
1,184,523
   
26.15
%
Short-Term Debt
   
114,932
   
2.54
%
Total Capitalization
 
$
4,529,910
   
100.00
%
               
Met-Ed
             
Common Equity
 
$
1,275,103
   
62.32
%
Preferred Stock
   
-
   
-
%
Long-Term Debt
   
694,116
   
33.93
%
Short-Term Debt
   
76,755
   
3.75
%
Total Capitalization
 
$
2,045,974
   
100.00
%
               
Penelec
             
Common Equity
 
$
1,298,303
   
66.00
%
Preferred Stock
   
-
   
-
%
Long-Term Debt
   
478,958
   
24.35
%
Short-Term Debt
   
189,749
   
9.65
%
Total Capitalization
 
$
1,967,010
   
100.00
%

4
 
(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 third quarter of 2005.

   
FirstEnergy
 
OE     
 
CEI    
 
TE     
 
Balance, December 31, 2004
 
$
1,856,863
 
$
442,198
 
$
553,740
 
$
191,059
 
Net Income
   
670,078
   
235,251
   
164,578
   
50,268
 
Cash Dividends on Preferred Stock
   
-
   
(1,976
)
 
(1,429
)
 
(6,109
)
Cash Dividends on Common Stock
   
(411,507
)
 
(241,000
)
 
(141,000
)
 
(10,000
)
Other
   
-
   
-
   
(1,495
)
 
-
 
Balance, September 30, 2005
 
$
2,115,434
 
$
434,473
 
$
574,394
 
$
225,218
 
                           
   
   
Penn  
   
JCP&L
   
Met-Ed
   
Penelec
 
Balance, December 31, 2004
 
$
87,695
 
$
43,271
 
$
38,966
 
$
46,068
 
Net Income
   
53,753
   
145,008
   
33,144
   
24,852
 
Cash Dividends on Preferred Stock
   
(1,534
)
 
(375
)
 
-
   
-
 
Cash Dividends on Common Stock
   
(8,000
)
 
(83,000
)
 
(44,000
)
 
(32,000
)
Other
   
-
   
-
   
-
   
-
 
Balance, September 30, 2005
 
$
131,914
 
$
104,904
 
$
28,110
 
$
38,920
 


(14)       During the third quarter of 2005, there was no change to any of the credit ratings of FirstEnergy or any of its subsidiaries by any of the nationally recognized credit rating agencies.

(15)    FirstEnergy’s aggregate investment includes all amounts invested, or commitments to be invested, in exempt wholesale generators (EWGs), for which there is recourse, directly or indirectly, to the registered holding company. Accordingly, FirstEnergy’s aggregate investment as of September 30, 2005 is as follows:

   
(In Thousands
 
FirstEnergy Generation Corp.
 
$
1,045,506
 
Termobarranquilla S. A.
   
46,551
 
Aggregate Investment in EWGs
 
$
1,092,057 *
 

* Aggregate investment amounts reflected here include LOCs and guarantees, but do not include any goodwill or other fair value adjustments.


Aggregate Investment as a Percentage of FirstEnergy and Subsidiary Companies :

Total capitalization
 
$
19,660,329
   
5.6
%
Net utility plant
 
$
13,773,219
   
7.9
%
Total consolidated assets
 
$
31,373,219
   
3.5
%
Market value of common equity
 
$
17,191,067
   
6.4
%

5
 
(16)    Set forth below is a summary of the direct or indirect investments as defined in SEC Rule 53(a) by FirstEnergy, as of September 30, 2005 in EWGs, as well as the percentage of equity ownership.
 
 
 
 
 
 
 
FirstEnergy’s Investment at
09/30/05
 
 
FirstEnergy’s
% Equity
 
 
Owners not affiliated with FirstEnergy
 
 Associate Company  
 ($000)*
 
Ownership
 
 Name of Entity
 
Type of Entity
 
                           
Termobarranquilla S.A. (a)
 
$
46,551
   
0
%
 
ABB Energy Ventures, Inc.
   
Foreign
 
               
Lancaster Steel 
   
Foreign
 
 
               
Distral Group
   
Foreign
 
 
               
Corp. Electrica
   
Foreign
 
               
Corp. Electrica
       
               
De la Costa
       
               
Atlantica
       
 
               
Darby Mazzanine
       
               
Holdings, LLC
       
                           
FirstEnergy Generation Corp.
   
1,045,506
   
100
%
 
Not Applicable
   
N/A
 
                           
Total Aggregate Investment in EWGs
 
$
1,092,057
                   
 
      (*)    Aggregate investment amounts reflected here include LOCs and guarantees, but do not include any goodwill or other fair value adjustments.

(a)  
  FirstEnergy sold Termobarranquilla S.A. on January 31, 2004. The remaining investment represents outstanding LOCs issued by FirstEnergy.

(17)    FirstEnergy and Subsidiary Companies Consolidated Capitalization Ratios as of September 30, 2005:

   
Amount (000’s)
 
Ratio 
 
Common equity
 
$
8,827,959
   
44.9
%
Preferred stock not subject to mandatory redemption
   
183,719
   
0.9
%
Long-term debt
   
10,402,146
   
52.9
%
Notes payable
   
246,505
   
1.3
%
               
Total capitalization
 
$
19,660,329
   
100.0
%

(18)    Market-to-book ratio of FirstEnergy and Subsidiary Companies common stock as of September 30, 2005:

Closing Market Price per Share
$52.12
Book Value per Share
$26.86
Market-to Book Ratio of Common Stock
194.1%

(19)    No new EWG/FUCO project covered by the Modified Rule 53 Test in which FirstEnergy has invested or committed to invest during the third quarter of 2005.

(20)    Analysis of Growth in Retained Earnings for FirstEnergy and Subsidiary Companies:

   
(In Thousands)
 
Retained Earnings as of 09/30/05
 
$
2,115,434
 
Retained Earnings as of 12/31/04
   
1,856,863
 
Growth in Retained Earnings
 
$
258,571
 
         

 

6


Analysis of Growth in Retained Earnings:
     
Income contribution from regulated utility companies
 
$
681,458
 
Income contribution from EWGs
   
20,131
 
Income contribution from all other companies
   
85,660
 
FirstEnergy Holding and Service companies
   
(117,171
)
Cash dividends declared on common stock
   
(411,507
)
Growth in Retained Earnings
 
$
258,571
 

(21)    Statements of Operations for the period ended September 30, 2005 for FirstEnergy Generation Corp. will be filed separately under a request for confidential treatment under Rule 104 (b)


 

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.
     
     
     
November 22, 2005
   
 
By:
     /s/ Harvey L. Wagner
 
          Harvey L. Wagner
    Vice President, Controller
and Chief Accounting Officer
(Principal Accounting Officer)
 

 
8



Exhibit A

FirstEnergy Corp.
76 South Main Street, Akron, Ohio 44308


Certificate


Pursuant to the requirements of Rule 24 of the Public Utility Holding Company Act of 1935, the undersigned certifies that:

   
A copy of certificate pursuant to Rule 24 related to FirstEnergy Corp.’s financing activities, for the period ended June 30, 2005, was filed with the New Jersey and Pennsylvania state commissions having jurisdiction over the electric retail rates of the company’s public utility subsidiary companies. As requested by the Ohio State Commission, a letter was sent to notify the commission having jurisdiction over the electric retail rates of the company’s public utility subsidiary companies of the URL address where the filing could be accessed on the SEC Web site.

   
The names and addresses of these state commissions are as follows:

   
New Jersey Division of Energy
   
Board of Public Utilities
   
Two Gateway Center
   
Newark, NJ 07102

   
Commonwealth of Pennsylvania*
   
Public Utility Commission
   
P.O. Box 3265
   
Harrisburg, PA 17105-3265

   
The Public Utilities Commission of Ohio
   
180 E. Broad Street
Columbus, Ohio 43215-3793

*
A conformed copy of the publicly available report was filed with the Pennsylvania Public Utility Commission.

     
 
FirstEnergy Corp.
     
     
     
November 22, 2005
   
 
By:
 
 
          Harvey L. Wagner
     Vice President, Controller
  and Chief Accounting Officer
 (Principal Accounting Officer)



Note :
 
Pennsylvania Electric Company (Penelec) is also subject to retail rate regulation by the New York Public Service Commission with respect to retail service to approximately 3,700 customers in Waverly, New York served by Waverly Electric Power & Light Company, a Penelec subsidiary. Waverly Electric's revenues are immaterial, accounting for less than 1% of Penelec's total operating revenues.