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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Assets and liabilities measured on recurring basis
The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy:

FirstEnergy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements
March 31, 2018
 
December 31, 2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
(In millions)
Corporate debt securities
$
—

 
$
468

 
$
—

 
$
468

 
$
—

 
$
476

 
$
—

 
$
476

Derivative assets - FTRs
—

 
—

 
1

 
1

 
—

 
—

 
3

 
3

Equity securities(2)
288

 
—

 
—

 
288

 
297

 
—

 
—

 
297

Foreign government debt securities
—

 
24

 
—

 
24

 
—

 
23

 
—

 
23

U.S. government debt securities
—

 
28

 
—

 
28

 
—

 
21

 
—

 
21

U.S. state debt securities
—

 
245

 
—

 
245

 
—

 
247

 
—

 
247

Other(3)
248

 
30

 
—

 
278

 
588

 
38

 
—

 
626

Total assets
$
536

 
$
795

 
$
1

 
$
1,332

 
$
885

 
$
805

 
$
3

 
$
1,693

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities - commodity contracts
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(4
)
 
$
—

 
$
(4
)
Derivative liabilities - NUG contracts(1)
—

 
—

 
(74
)
 
(74
)
 
—

 
—

 
(79
)
 
(79
)
Total liabilities
$
—

 
$
—

 
$
(74
)
 
$
(74
)
 
$
—

 
$
(4
)
 
$
(79
)
 
$
(83
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets (liabilities)(4)
$
536

 
$
795

 
$
(73
)
 
$
1,258

 
$
885

 
$
801

 
$
(76
)
 
$
1,610


(1) 
NUG contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.
(2) 
NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index or the Wells Fargo Hybrid and Preferred Securities REIT index.
(3) 
Primarily consists of short-term cash investments.
(4) 
Excludes $(15) million and $(11) million as of March 31, 2018 and December 31, 2017, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
Reconciliation of changes in the fair value roll forward of level 3 measurements of NUG contracts
The following table provides a reconciliation of changes in the fair value of NUG contracts and FTRs that are classified as Level 3 in the fair value hierarchy for the periods ended March 31, 2018 and December 31, 2017:

 
NUG Contracts(1)
 
FTRs
 
Derivative Assets
 
Derivative Liabilities
 
Net
 
Derivative Assets
 
Derivative Liabilities
 
Net
 
(In millions)
January 1, 2017 Balance
$
1

 
$
(108
)
 
$
(107
)
 
$
3

 
$
(1
)
 
$
2

Unrealized gain (loss)
—

 
(10
)
 
(10
)
 
1

 
(1
)
 
—

Purchases
—

 
—

 
—

 
3

 
—

 
3

Settlements
(1
)
 
39

 
38

 
(4
)
 
2

 
(2
)
December 31, 2017 Balance
$
—

 
$
(79
)
 
$
(79
)
 
$
3

 
$
—

 
$
3

Unrealized gain (loss)
—

 
(2
)
 
(2
)
 
1

 
—

 
1

Settlements
—

 
7

 
7

 
(3
)
 
—

 
(3
)
March 31, 2018 Balance
$
—

 
$
(74
)
 
$
(74
)
 
$
1

 
$
—

 
$
1


(1) 
NUG contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.
Quantitative information for level 3 valuation
The following table provides quantitative information for FTRs and NUG contracts that are classified as Level 3 in the fair value hierarchy for the period ended March 31, 2018:
 
 
 
Fair Value, Net (In millions)
 
Valuation
Technique
 
Significant Input
 
Range
 
Weighted Average
 
Units
FTRs
 
$
1

 
Model
 
RTO auction clearing prices
 
$0.50 to $5.10
 
$1.20
 
Dollars/MWH
 
 
 
 
 
 
 
 
 
 
 
 
 
NUG Contracts
 
$
(74
)
 
Model
 
Generation
 
400 to 1,881,000
 
382,000

 
MWH
 
 
 
Regional electricity prices
 
$29.10 to $30.90
 
$30.00
 
Dollars/MWH
Amortized cost basis, unrealized gains and losses and fair values of investments in available-for-sale securities
The following table summarizes the amortized cost basis, unrealized gains, unrealized losses and fair values of investments held in NDT and nuclear fuel disposal trusts as of March 31, 2018 and December 31, 2017:

 
 
March 31, 2018
 
December 31, 2017(1)
 
 
Cost Basis
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cost Basis
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
$
783

 
$
5

 
$
(22
)
 
$
766

 
$
774

 
$
11


$
(17
)
 
$
768

Equity securities
 
$
263

 
$
24

 
$
(2
)
 
$
285

 
$
254

 
$
40

 
$
—

 
$
294



(1) 
Excludes short-term cash investments of $11 million.
Proceeds from the sale of investments in available-for-sale securities, realized gains and losses on those sales, and interest and dividend income
Proceeds from the sale of investments in equity and AFS debt securities, realized gains and losses on those sales and interest and dividend income for the three months ended March 31, 2018 and 2017 were as follows:

 
 
For the Three Months Ended March 31,
 
 
2018
 
2017
 
 
(In millions)
Sale Proceeds
 
$
191

 
$
507

Realized Gains
 
19

 
21

Realized Losses
 
(16
)
 
(15
)
Interest and Dividend Income
 
10

 
9
Fair value and related carrying amounts of long-term debt and other long-term obligations
The following table provides the approximate fair value and related carrying amounts of FirstEnergy's long-term debt, which excludes capital lease obligations and net unamortized debt issuance costs, premiums and discounts as of March 31, 2018 and December 31, 2017:

 
March 31, 2018
 
December 31, 2017
 
(In millions)
Carrying Value
$
17,949

 
$
19,425

Fair Value
$
19,487

 
$
21,551