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Derivative Instruments (Tables) | 9 Months Ended
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Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Fair value of derivatives instruments | The following table summarizes the fair value and classification of derivative instruments on FirstEnergy’s Consolidated Balance Sheets:
Derivative Assets |  | Derivative Liabilities
| Fair Value |  |  | Fair Value
| September 30, 2016 |  | December 31, 2015 |  |  | September 30, 2016 |  | December 31, 2015
| (In millions) |  |  | (In millions)
Current Assets - Derivatives |  |  |  |  | Current Liabilities - Derivatives |  |  |
Commodity Contracts | $ | 139 |  |  | $ | 150 |  |  | Commodity Contracts | $ | (84 | ) |  | $ | (94 | )
FTRs | 13 |  |  | 7 |  |  | FTRs | (7 | ) |  | (12 | )
| 152 |  |  | 157 |  |  |  | (91 | ) |  | (106 | )
Deferred Charges and Other Assets - Other |  |  |  |  | Noncurrent Liabilities - Adverse Power Contract Liability |  |  |
|  |  |  |  | NUGs(1) | (118 | ) |  | (137 | )
Commodity Contracts | 98 |  |  | 78 |  |  | Noncurrent Liabilities - Other |  |  |
FTRs | — |  |  | 1 |  |  | Commodity Contracts | (50 | ) |  | (37 | )
NUGs(1) | — |  |  | 1 |  |  | FTRs | — |  |  | (1 | )
| 98 |  |  | 80 |  |  |  | (168 | ) |  | (175 | )
Derivative Assets | $ | 250 |  |  | $ | 237 |  |  | Derivative Liabilities | $ | (259 | ) |  | $ | (281 | )
(1) | NUG contracts are subject to regulatory accounting treatment and do not impact earnings.
Offsetting assets and liabilities | The following tables summarize the fair value of derivative assets and derivative liabilities on FirstEnergy’s Consolidated Balance Sheets and the effect of netting arrangements and collateral on its financial position:
|  |  |  | Amounts Not Offset in Consolidated Balance Sheet |  |
September 30, 2016 |  | Fair Value |  | Derivative Instruments |  | Cash Collateral (Received)/Pledged |  | Net Fair Value
|  | (In millions)
Derivative Assets |  |  |  |  |  |  |  |
Commodity contracts |  | $ | 237 |  |  | $ | (120 | ) |  | $ | (22 | ) |  | $ | 95 |
FTRs |  | 13 |  |  | (7 | ) |  | — |  |  | 6 |
NUG contracts |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | 250 |  |  | $ | (127 | ) |  | $ | (22 | ) |  | $ | 101 |
Derivative Liabilities |  |  |  |  |  |  |  |
Commodity contracts |  | $ | (134 | ) |  | $ | 120 |  |  | $ | 8 |  |  | $ | (6 | )
FTRs |  | (7 | ) |  | 7 |  |  | — |  |  | — |
NUG contracts |  | (118 | ) |  | — |  |  | — |  |  | (118 | )
|  | $ | (259 | ) |  | $ | 127 |  |  | $ | 8 |  |  | $ | (124 | )
|  |  |  | Amounts Not Offset in Consolidated Balance Sheet |  |
December 31, 2015 |  | Fair Value |  | Derivative Instruments |  | Cash Collateral (Received)/Pledged |  | Net Fair Value
|  | (In millions)
Derivative Assets |  |  |  |  |  |  |  |
Commodity contracts |  | $ | 228 |  |  | $ | (125 | ) |  | $ | — |  |  | $ | 103 |
FTRs |  | 8 |  |  | (8 | ) |  | — |  |  | — |
NUG contracts |  | 1 |  |  | — |  |  | — |  |  | 1 |
|  | $ | 237 |  |  | $ | (133 | ) |  | $ | — |  |  | $ | 104 |
Derivative Liabilities |  |  |  |  |  |  |  |
Commodity contracts |  | $ | (131 | ) |  | $ | 125 |  |  | $ | 3 |  |  | $ | (3 | )
FTRs |  | (13 | ) |  | 8 |  |  | 5 |  |  | — |
NUG contracts |  | (137 | ) |  | — |  |  | — |  |  | (137 | )
|  | $ | (281 | ) |  | $ | 133 |  |  | $ | 8 |  |  | $ | (140 | )
Volume of First Energy's outstanding derivative transactions | The following table summarizes the volumes associated with FirstEnergy’s outstanding derivative transactions as of September 30, 2016:
| Purchases |  | Sales |  | Net |  | Units
| (In millions)
Power Contracts | 9 |  |  | 49 |  |  | (40 | ) |  | MWH
FTRs | 42 |  |  | — |  |  | 42 |  |  | MWH
NUGs | 3 |  |  | — |  |  | 3 |  |  | MWH
Natural Gas | 49 |  |  | — |  |  | 49 |  |  | mmBTU
Effect of derivative instruments on statements of income and comprehensive income | The effect of active derivative instruments not in a hedging relationship on the Consolidated Statements of Income (Loss) during the three months and nine months ended September 30, 2016 and 2015, are summarized in the following tables:
| For the Three Months Ended September 30
| Commodity Contracts |  | FTRs |  | Total
| (In millions)
2016 |  |  |  |  |  |  |  |
Unrealized Gain (Loss) Recognized in: |  |  |  |  |  |  |  |
Other Operating Expense(1) | $ | 19 |  |  | $ | (3 | ) |  | $ | 16 |
Realized Gain (Loss) Reclassified to: |  |  |  |  |  |  |  |
Revenues(1) | $ | 32 |  |  | $ | 1 |  |  | $ | 33 |
Purchased Power Expense(1) | (22 | ) |  | — |  |  | (22 | )
Other Operating Expense(1) | — |  |  | (6 | ) |  | (6 | )
Fuel Expense | (2 | ) |  | — |  |  | (2 | )
(1) All amounts are associated with FES.
| For the Three Months Ended September 30
| Commodity Contracts |  | FTRs |  | Total
| (In millions)
2015 |  |  |  |  |  |  |  |
Unrealized Gain (Loss) Recognized in: |  |  |  |  |  |  |  |
Other Operating Expense(2) | $ | 59 |  |  | $ | (2 | ) |  | $ | 57 |
Realized Gain (Loss) Reclassified to: |  |  |  |  |  |  |  |
Revenues(2) | $ | 41 |  |  | $ | 2 |  |  | $ | 43 |
Purchased Power Expense(2) | (50 | ) |  | — |  |  | (50 | )
Other Operating Expense(2) | — |  |  | (11 | ) |  | (11 | )
Fuel Expense | (5 | ) |  | — |  |  | (5 | )
(2) All amounts are associated with FES.
| For the Nine Months Ended September 30
| Commodity Contracts |  | FTRs |  |  | Total
2016 | (In millions)
Unrealized Gain Recognized in: |  |  |  |  |  |  |  |  |
Other Operating Expense(1) | $ | 2 |  |  | $ | 8 |  |  |  | $ | 10 |
Realized Gain (Loss) Reclassified to: |  |  |  |  |  |  |  |  |
Revenues(1) | $ | 162 |  |  | $ | 5 |  |  |  | $ | 167 |
Purchased Power Expense(1) | (105 | ) |  | — |  |  |  | (105 | )
Other Operating Expense(1) | — |  |  | (28 | ) |  |  | (28 | )
Fuel Expense | (9 | ) |  | — |  |  |  | (9 | )
(1) All amounts are associated with FES.
| For the Nine Months Ended September 30
| Commodity Contracts |  | FTRs |  |  | Total
| (In millions)
2015 |  |  |  |  |  |  |  |  |
Unrealized Gain (Loss) Recognized in: |  |  |  |  |  |  |  |  |
Other Operating Expense(2) | $ | 81 |  |  | $ | (17 | ) |  |  | $ | 64 |
Realized Gain (Loss) Reclassified to: |  |  |  |  |  |  |  |  |
Revenues(3) | $ | 48 |  |  | $ | 48 |  |  |  | $ | 96 |
Purchased Power Expense(4) | (78 | ) |  | — |  |  |  | (78 | )
Other Operating Expense(5) | — |  |  | (38 | ) |  |  | (38 | )
Fuel Expense | (26 | ) |  | — |  |  |  | (26 | )
(2) Includes $81 million for commodity contracts and $(16) million for FTRs associated with FES.
(3) Includes $48 million for commodity contracts and $46 million for FTRs associated with FES.
(4) All amounts are associated with FES.
(5) Includes $(37) million for FTRs associated with FES.
Reconciliation of changes in the fair value of certain contracts that are deferred | The following table provides a reconciliation of changes in the fair value of FirstEnergy's derivative instruments subject to regulatory accounting during the three and nine months ended September 30, 2016 and 2015. Changes in the value of these instruments are deferred for future recovery from (or credit to) customers:
|  | For the Three Months Ended September 30
Derivatives Not in a Hedging Relationship with Regulatory Offset |  | NUGs |  | Regulated FTRs |  | Total
|  | (In millions)
Outstanding net asset (liability) as of July 1, 2016 |  | $ | (124 | ) |  | $ | 4 |  |  | $ | (120 | )
Unrealized loss |  | (6 | ) |  | — |  |  | (6 | )
Settlements |  | 12 |  |  | — |  |  | 12 |
Outstanding net asset (liability) as of September 30, 2016 |  | $ | (118 | ) |  | $ | 4 |  |  | $ | (114 | )
Outstanding net asset (liability) as of July 1, 2015 |  | $ | (140 | ) |  | $ | 12 |  |  | $ | (128 | )
Unrealized loss |  | (20 | ) |  | (4 | ) |  | (24 | )
Settlements |  | 17 |  |  | (3 | ) |  | 14 |
Outstanding net asset (liability) as of September 30, 2015 |  | $ | (143 | ) |  | $ | 5 |  |  | $ | (138 | )
|  | For the Nine Months Ended September 30
Derivatives Not in a Hedging Relationship with Regulatory Offset |  | NUGs |  | Regulated FTRs |  | Total
|  | (In millions)
Outstanding net asset (liability) as of January 1, 2016 |  | $ | (136 | ) |  | $ | 1 |  |  | $ | (135 | )
Unrealized loss |  | (17 | ) |  | (1 | ) |  | (18 | )
Purchases |  | — |  |  | 4 |  |  | 4 |
Settlements |  | 35 |  |  | — |  |  | 35 |
Outstanding net asset (liability) as of September 30, 2016 |  | $ | (118 | ) |  | $ | 4 |  |  | $ | (114 | )
Outstanding net asset (liability) as of January 1, 2015 |  | $ | (151 | ) |  | $ | 11 |  |  | $ | (140 | )
Unrealized loss |  | (36 | ) |  | (3 | ) |  | (39 | )
Purchases |  | — |  |  | 12 |  |  | 12 |
Settlements |  | 44 |  |  | (15 | ) |  | 29 |
Outstanding net asset (liability) as of September 30, 2015 |  | $ | (143 | ) |  | $ | 5 |  |  | $ | (138 | )

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