FirstEnergy Rule 24 for the 4th Quarter of 2004 (Financing)









SEC File No. 70-10122







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 October 1, 2004 through December 31, 2004, there were no sales of common stock or preferred securities by FirstEnergy.

 (2)  
FirstEnergy issued 290,537 shares of common stock pursuant to dividend reinvestment plans and zero shares of common stock were granted under employee benefit plans during the fourth quarter of 2004.

 (3)  
During the period October 1, 2004 through December 31, 2004, no FirstEnergy common stock was transferred to a seller of securities of a company being acquired.

 (4)  
During the period October 1, 2004 through December 31, 2004, there was no Long-term Debt and Preferred Securities issued by FirstEnergy. FirstEnergy issued the following Short-term Debt during the fourth quarter of 2004:

 
   
Transaction
  
Maturity
      
Transaction
  
   
Date   
  
Date   
  
Rate 
  
Amount    
  
CitiBank (FirstEnergy Revolver - 1 Billion
3 Year Facility) 
                  
FirstEnergy
    
10/20/2004
    
10/27/2004
    
2.95
%
$
60,000,000.00
  
FirstEnergy
    
12/1/2004
    
12/8/2004
    
3.20
%
$
50,000,000.00
  
FirstEnergy
    
12/8/2004
    
12/15/2004
    
3.26
%
$
20,000,000.00
  
FirstEnergy
    
12/15/2004
    
12/22/2004
    
3.45
%
$
40,000,000.00
  
FirstEnergy
    
12/20/2004
    
12/29/2004
    
3.45
%
$
140,000,000.00
  
FirstEnergy
    
12/29/2004
    
1/5/2005
    
3.58
%
$
140,000,000.00
  
FirstEnergy
    
12/30/2004
    
1/6/2005
    
3.58
%
$
75,000,000.00
  
 
 
1
 
 
(5)  
During the period October 1, 2004 through December 31, 2004, the following short-term debt was issued by the Utility Subsidiaries:


   
Transaction
  
Maturity
      
Transaction
  
   
Date   
  
Date   
  
Rate 
  
Amount    
  
FirstMerit (Ohio Edison Company (OE) Bi-Lateral Facility)
                  
OE
    
10/1/2004
    
10/4/2004
    
2.50
%
$
14,000,000.00
  
OE
    
10/22/2004
    
10/26/2004
    
2.50
%
$
14,000,000.00
  
OE
    
12/3/2004
    
12/9/2004
    
2.75
%
$
14,000,000.00
  
OE
    
12/10/2004
    
12/13/2004
    
2.81
%
$
2,000,000.00
  
OE
    
12/22/2004
    
12/23/2004
    
3.00
%
$
14,000,000.00
  
OE
    
12/30/2004
    
1/4/2005
    
3.00
%
$
14,000,000.00
  
                           
KeyBank (OE Bi-Lateral Facility)
                          
OE
    
10/25/2004
    
10/26/2004
    
2.92
%
$
6,000,000.00
  
OE
    
10/29/2004
    
11/2/2004
    
3.00
%
$
13,750,000.00
  
OE
    
11/1/2004
    
11/3/2004
    
3.00
%
$
6,250,000.00
  
OE
    
11/29/2004
    
11/30/2004
    
3.20
%
$
10,000,000.00
  
OE
    
12/1/2004
    
12/2/2004
    
3.19
%
$
5,000,000.00
  
OE
    
12/3/2004
    
12/6/2004
    
3.15
%
$
9,000,000.00
  
OE
    
12/7/2004
    
12/9/2004
    
3.17
%
$
8,000,000.00
  
OE
    
12/22/2004
    
12/23/2004
    
3.39
%
$
10,000,000.00
  
OE
    
12/30/2004
    
12/31/2004
    
3.44
%
$
20,000,000.00
  


Under the Utility Money Pool, the principal balance of borrowings at the end of the fourth quarter of 2004 and average interest rate during the fourth quarter of 2004 are as follows:

Regulated Money Pool
  
Average
  
Principal
  
Loan to/(Borrowing from):    
  
Interest Rate
  
Balance     
  
           
OE
    
1.7596
%
$
503,029,195
  
Pennsylvania Power Company (Penn)
    
1.7596
%
  
(11,789,384
)
The Cleveland Electric Illuminating Company (CEI)
    
1.7596
%
  
(472,876,225
)
The Toledo Edison Company (TE)
    
1.7596
%
  
(429,517,644
)
American Transmission Systems, Incorporated (ATSI)
    
1.7596
%
  
97,964,727
  
Jersey Central Power & Light Company (JCP&L)
    
1.7596
%
  
(248,532,345
)
Metropolitan Edison Company (Met-Ed)
    
1.7596
%
  
(80,090,192
)
Pennsylvania Electric Company (Penelec)
    
1.7596
%
  
(241,496,076
)
York Haven Power Company
    
1.7596
%
  
13,404,442
  

(6)  
During the fourth quarter of 2004, there were no financings consummated by any Non-Utility subsidiary that were not exempt under rule 52.
 
 
2

 
(7)  
During the fourth quarter of 2004, the following guarantees were made by FirstEnergy to support activities of its subsidiaries:


           
Purpose of
  
Beneficiary
  
Amount
  
Terms
  
Guarantee
  
               
FirstEnergy Solutions Corp. (FES) (Trading - Electric)
              
Mirant Americas Energy Marketing
  
$
5,000,000
    
(a)
 
  
(b)
 
                     
FES (Trading - Gas)
                    
Chevron Texaco
  
$
5,000,000
    
  (a)  
 
  
(b)
 
CoEnergy Trading Company
  
$
8,000,000
    
(a)
 
  
(b)
 
Deutsche Bank AG
  
$
3,500,000
    
(a)
 
  
(b)
 
Statoil Natural Gas LLC
  
$
1,000,000
    
(a)
 
  
(b)
 
                     
FirstEnergy Generation Corp. (Fuel Marketing / Coal)
                    
Peabody COALTRADE
  
$
1,500,000
    
(a)
 
  
(c)
 

(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 natural gas purchases by subsidiary

(c)  
Credit backstop to support coal purchases and emission trading
 
The following Letters of Credits (LOC) were issued during the fourth quarter of 2004:


       
Purpose of
  
Beneficiary
  
Amount   
  
LOC     
  
           
FirstEnergy
          
Travelers Casualty and Surety Co. of America
  
$
18,000,000
    
(a
)
Travelers Casualty and Surety Co. of America
  
$
3,000,000
    
(b
)
Deutsche Bank Trust Company Americas
  
$
46,150,595
    
(d
)
               
MYR Group Inc.
              
C.N.A. Insurance
  
$
565,412
    
(c
)


(a)  
Replaced Surety Bonds on self-insurance coverage due to rating agency changes. Original LOC was issued in the first quarter 2004.
(b)  
Replaced Surety Bonds on behalf of JCP&L, FES, FirstEnergy Service Company, and FirstEnergy Telecom Services, Inc. on workers compensation and self-insurance coverage due to rating agency changes. Original LOC was issued in the fourth quarter 2003.
(c)  
Replaced Surety Bonds on MYR Group Inc. insurance and workers compensation policies. Original LOC was issued in the fourth quarter 2003.
(d)  
Lenders granted FirstEnergy the ability to sell its remaining 20.1% in Aquila Sterling Holdings, and unencumbered the Argentina assets abandoned in April 2003. Original LOC of $60 million was issued in the fourth quarter 2003.

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 (8)      
During the fourth quarter of 2004, FirstEnergy entered into seven (7) transactions designed to hedge the fair value of a portion of its fixed-rate long-term debt portfolio against decreases in interest rates. The hedge structures are fixed - for - floating interest rate swaps, whereby FirstEnergy will receive fixed payments equivalent to the fixed coupon rate of the bond being hedged, and pay floating rate payments based on the 3-month and 6-month London Interbank Offering Rates (LIBOR) plus or minus an applicable spread. The debt instruments being hedged, notional amounts, counterparties, and principal terms of the fair value hedges are filed pursuant to request for confidential treatment.

(9)  
Investments made during the fourth quarter of 2004 in any intermediate subsidiary or financing subsidiary are as follows:


Company
  
Investment
  
   
(In Thousands $)
  
       
Centerior Funding Corp.
  
$
97,140
  
Penn Power Funding LLC
  
$
500
  
GPU Power, Inc.
  
$
447
  


(10)  During the fourth quarter of 2004 FirstEnergy filed the following U-6B-2 forms:


Company
    
Filing Date
 
CEI
    
October 7, 2004
  
TE
    
October 7, 2004
  
OE
    
November 30, 2004
  

(11)   There were no jurisdictional financing transactions during the fourth quarter of 2004.

(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 2004.


FirstEnergy
  
  Amount   
  
  Ratio  
  
Common Equity
  
$
8,589,294
    
42.84
%
Preferred Stock
    
335,123
    
1.67
%
Long-Term Debt
    
10,954,293
    
54.64
%
Short-Term Debt
    
170,489
    
0.85
%
Total Capitalization
  
$
20,049,199
    
100.00
%
               
OE
              
Common Equity
  
$
2,493,809
    
58.19
%
Preferred Stock
    
100,070
    
2.33
%
Long-Term Debt
    
1,513,177
    
35.31
%
Short-Term Debt
    
178,859
    
4.17
%
Total Capitalization
  
$
4,285,915
    
100.00
%
               
CEI
              
Common Equity
  
$
1,853,561
    
41.33
%
Preferred Stock
    
96,404
    
2.15
%
Long-Term Debt
    
2,046,818
    
45.63
%
Short-Term Debt
    
488,633
    
10.89
%
Total Capitalization
  
$
4,485,416
    
100.00
%
 
4
 
 
               
TE
              
Common Equity
  
$
835,327
    
46.88
%
Preferred Stock
    
126,000
    
7.07
%
Long-Term Debt
    
391,249
    
21.95
%
Short-Term Debt
    
429,517
    
24.10
%
Total Capitalization
  
$
1,782,093
    
100.00
%
               
Penn
              
Common Equity
  
$
327,379
    
60.77
%
Preferred Stock
    
39,105
    
7.26
%
Long-Term Debt
    
160,411
    
29.77
%
Short-Term Debt
    
11,852
    
2.20
%
Total Capitalization
  
$
538,747
    
100.00
%
               
JCP&L
              
Common Equity
  
$
3,155,362
    
67.53
%
Preferred Stock
    
12,649
    
0.27
%
Long-Term Debt
    
1,255,850
    
26.88
%
Short-Term Debt
    
248,532
    
5.32
%
Total Capitalization
  
$
4,672,393
    
100.00
%
               
Met-Ed
              
Common Equity
  
$
1,285,419
    
61.28
%
Preferred Stock
    
-
    
-
%
Long-Term Debt
    
732,171
    
34.90
%
Short-Term Debt
    
80,090
    
3.82
%
Total Capitalization
  
$
2,097,680
    
100.00
%
               
Penelec
              
Common Equity
  
$
1,305,015
    
64.07
%
Preferred Stock
    
-
    
-
%
Long-Term Debt
    
490,119
    
24.07
%
Short-Term Debt
    
241,496
    
11.86
%
Total Capitalization
  
$
2,036,630
    
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 2004.

 
 
FirstEnergy
 
OE     
 
CEI    
  
TE     
  
Balance, December 31, 2003
  
$
1,604,385
  
$
522,934
  
$
494,212
  
$
113,620
  
Net Income
    
878,175
    
342,766
   
236,531
    
86,283
  
Cash Dividends on Preferred Stock
    
-
    
(2,502
)
  
(7,003
)
  
(8,844
)
Cash Dividends on Common Stock
    
(490,529
)
  
(421,000
)
  
(170,000
)
  
-
  
Other*
    
(135,168
)
  
-
    
-
    
-
  
Balance, December 31, 2004
  
$
1,856,863
  
$
442,198
  
$
553,740
  
$
191,059
  
                           
 
    
Penn  
    
JCP&L
   
Met-Ed
   
Penelec
 
Balance, December 31, 2003
  
$
54,179
  
$
22,132
  
$
27,011
  
$
18,038
  
Net Income
    
59,076
    
111,639
    
66,955
    
36,030
  
Cash Dividends on Preferred Stock
    
(2,560
)
  
(500
)
  
-
    
-
  
Cash Dividends on Common Stock
    
(23,000
)
  
(90,000
)
  
(55,000
)
  
(8,000
)
Other
    
-
    
-
    
-
    
-
  
Balance, December 31, 2004
  
$
87,695
  
$
43,271
 
$
38,966
  
$
46,068
  

* Common stock dividends declared in 2004 and payable in 2005.

5

(14)    During the fourth quarter of 2004, there was no change to any of the credit ratings of FirstEnergy Corp. 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 December 31, 2004 is as follows:

   
(In Thousands
  
FE Generation Corp.
  
$
962,645
  
Termobarranquilla S. A.
    
46,551
  
Aggregate Investment in EWGs
  
$
1,009,196*
  

* 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
  
$
20,049,199
    
5.0
%
Net utility plant
  
$
13,478,356
    
7.5
%
Total consolidated assets
  
$
31,067,944
    
3.2
%
Market value of common equity
  
$
13,031,831
    
7.7
%


(16)  
Set forth below is a summary of the direct or indirect investments as defined in SEC Rule 53(a) by FirstEnergy, as of December 31, 2004 in EWGs, as well as the percentage of equity ownership.



   
FirstEnergy’s
              
   
Investment at
  
FirstEnergy’s
  
Owners not Affiliated with FirstEnergy
  
   
121/31/04
  
% Equity
      
Type
  
Associate Company
  
($000)*
 
Ownership
 
Name of Entity  
  
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
                          
                           
FE Generation Corp.
    
962,645
    
100
%
  
Not Applicable
    
N/A
  
Total Aggregate Investment
                          
  in EWGs
  
$
1,009,196
                    
 
   (*)   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.

6
 

 
(17) 
FirstEnergy and Subsidiary Companies Consolidated Capitalization Ratios as of December 31, 2004:

   
Amount (000’s)
  
Ratio 
  
Common equity
 
$
8,589,294
    
42.8
%
Preferred stock not subject to mandatory redemption
    
335,123
    
1.7
%
Long-term debt
    
10,954,293
    
54.6
%
Notes payable
    
170,489
    
0.9
%
               
Total capitalization
  
$
20,049,199
    
100.0
%
 
 
 (18)  Market-to-book ratio of FirstEnergy and Subsidiary Companies common stock at December 31, 2004:
 
 
Closing Market Price per Share
  
$
39.51
  
Book Value per Share
 
$
26.17
  
Market-to Book Ratio of Common Stock
    
151.0
%
 
 
 (19) 
 No new EWG/FUCO project covered by the Modified Rule 53 Test in which FirstEnergy has invested or committed to invest during the fourth quarter of 2004.
 
 
(20) 
 Analysis of Growth in Retained Earnings for FirstEnergy and Subsidiary Companies:
 
 
   
(In Thousands)
  
Retained Earnings as of 12/31/04
  
$
1,856,863  
 
Retained Earnings as of 12/31/03
    
1,604,385  
 
Growth in Retained Earnings
  
$
252,478  
 
         
Analysis of Growth in Retained Earnings:
        
Income contribution from regulated utility companies
  
$
893,910  
 
Income contribution from EWGs
    
122,996  
 
Income contribution from all other companies
    
67,691 
 
FirstEnergy Holding and Service companies
    
(206,422)
 
Cash dividends declared on common stock
    
(625,697)
Growth in Retained Earnings
  
$
252,478  
 
 

  (21)  
Statements of Operations for the period ended December 31, 2004 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.
     
     
     
March 23, 2005
    
 
By:
/s/ Harvey L. Wagner
 
     Harvey L. Wagner
Vice President, Controller
and Chief Accounting Officer
(Principal Accounting Officer)


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