----

----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D. C.  20549**

**FORM      10-Q**

**(Mark      One)**

**[X]  QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

**For      the      quarterly period ended September 30, 2007**

**OR**

**[  ]  TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

| **For                the transition period from** |   | **to** |   |
|---------------------------------------------------|--------|--------|--------|

| **Commission**                   | **Registrant;                State of Incorporation;**         | **I.R.S.                Employer**      |
|----------------------------------|----------------------------------------------------------------|-----------------------------------------|
| **File                  Number** | **Address;                  and Telephone Number**             | **Identification                  No.** |
|                             |                                                           |                                    |
| **333-21011**                    | **FIRSTENERGY                CORP.**                           | **34-1843785**                          |
|                             | **(An                Ohio Corporation)**                       |                                    |
|                             | **76                South Main Street**                        |                                    |
|                             | **Akron,                OH  44308**                  |                                    |
|                             | **Telephone                (800)736**-**3402**                 |                                    |
|                             |                                                           |                                    |
| **333-145140-01**                | **FIRSTENERGY                SOLUTIONS CORP.**                 | **31-1560186**                          |
|                             | **(An                Ohio Corporation)**                       |                                    |
|                             | **c/o                FirstEnergy Corp.**                       |                                    |
|                             | **76                South Main Street**                        |                                    |
|                             | **Akron,                OH 44308**                        |                                    |
|                             | **Telephone                (800)736-3402**                     |                                    |
|                             |                                                           |                                    |
| **1-2578**                       | **OHIO                EDISON COMPANY**                         | **34-0437786**                          |
|                             | **(An                Ohio Corporation)**                       |                                    |
|                             | **c/o                FirstEnergy Corp.**                       |                                    |
|                             | **76                South Main Street**                        |                                    |
|                             | **Akron,                OH  44308**                  |                                    |
|                             | **Telephone                (800)736**-**3402**                 |                                    |
|                             |                                                           |                                    |
| **1-2323**                       | **THE                CLEVELAND ELECTRIC ILLUMINATING COMPANY** | **34-0150020**                          |
|                             | **(An                Ohio Corporation)**                       |                                    |
|                             | **c/o                FirstEnergy Corp.**                       |                                    |
|                             | **76                South Main Street**                        |                                    |
|                             | **Akron,                OH  44308**                  |                                    |
|                             | **Telephone                (800)736**-**3402**                 |                                    |
|                             |                                                           |                                    |
| **1-3583**                       | **THE                TOLEDO EDISON COMPANY**                   | **34-4375005**                          |
|                             | **(An                Ohio Corporation)**                       |                                    |
|                             | **c/o                FirstEnergy Corp.**                       |                                    |
|                             | **76                South Main Street**                        |                                    |
|                             | **Akron,                OH  44308**                  |                                    |
|                             | **Telephone                (800)736**-**3402**                 |                                    |
|                             |                                                           |                                    |
| **1-3141**                       | **JERSEY                CENTRAL POWER & LIGHT COMPANY**    | **21-0485010**                          |
|                             | **(A                New                Jersey Corporation)**   |                                    |
|                             | **c/o                FirstEnergy Corp.**                       |                                    |
|                             | **76                South Main Street**                        |                                    |
|                             | **Akron,                OH  44308**                  |                                    |
|                             | **Telephone                (800)736**-**3402**                 |                                    |
|                             |                                                           |                                    |
| **1-446**                        | **METROPOLITAN                EDISON COMPANY**                 | **23-0870160**                          |
|                             | **(A                Pennsylvania Corporation)**                |                                    |
|                             | **c/o                FirstEnergy Corp.**                       |                                    |
|                             | **76                South Main Street**                        |                                    |
|                             | **Akron,                OH  44308**                  |                                    |
|                             | **Telephone                (800)736**-**3402**                 |                                    |
|                             |                                                           |                                    |
| **1-3522**                       | **PENNSYLVANIA                ELECTRIC COMPANY**               | **25-0718085**                          |
|                             | **(A                Pennsylvania Corporation)**                |                                    |
|                             | **c/o                FirstEnergy Corp.**                       |                                    |
|                             | **76                South Main Street**                        |                                    |
|                             | **Akron,                OH  44308**                  |                                    |
|                             | **Telephone                (800)736**-**3402**                 |                                    |

----

| Yes                (X)  No (  ) | FirstEnergy                Corp., FirstEnergy Solutions Corp., Ohio Edison Company, The Cleveland                Electric Illuminating Company and Pennsylvania Electric                Company |
|----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Yes                (  )  No (X) | The                Toledo                Edison Company, Jersey Central Power & Light Company and Metropolitan                Edison Company                                                |

| Large                Accelerated Filer  (X)           | FirstEnergy                Corp.                                                                                                                                                                                                                                                              |
|-----------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Accelerated                Filer  (  )      | N/A                                                                                                                                                                                                                                                                                           |
| Non-accelerated                Filer  (X)   | FirstEnergy                Solutions Corp., Ohio Edison Company, The Cleveland Electric Illuminating                Company, The Toledo Edison Company, Jersey Central Power & Light                Company, Metropolitan Edison Company and Pennsylvania Electric                Company |

|                                                                                    | **OUTSTANDING**                             |
|-----------------------------------------------------------------------------------------|---------------------------------------------|
| **CLASS**                                                                               | **AS                  OF OCTOBER 31, 2007** |
| FirstEnergy                Corp., $.10 par value                                        | 304,835,407                                 |
| FirstEnergy                Solutions Corp., no par value                                | 7                                           |
| Ohio                Edison                Company, no par value                         | 60                                          |
| The                Cleveland                Electric Illuminating Company, no par value | 67,930,743                                  |
| The                Toledo                Edison Company, $5 par value                   | 29,402,054                                  |
| Jersey                Central                Power & Light Company, $10 par value   | 14,421,637                                  |
| Metropolitan                Edison Company, no par value                                | 859,500                                     |
| Pennsylvania                Electric Company, $20 par value                             | 4,427,577                                   |

----

*This      Form 10-Q      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 achievement 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 and legislative and      regulatory changes affecting how generation rates will be determined following      the expiration of existing rate plans in Ohio and Pennsylvania, economic or      weather conditions affecting future sales and margins, changes in markets for      energy services, changing energy and commodity market prices, replacement power      costs being higher than anticipated or inadequately hedged, the continued      ability of FirstEnergy’s regulated utilities to collect transition and other      charges or to recover increased transmission costs, maintenance costs being      higher than anticipated, other legislative and regulatory changes including      revised environmental requirements, the uncertainty of the timing and amounts      of      the capital expenditures needed to, among other things, implement the Air      Quality Compliance Plan (including that such amounts could be higher than      anticipated) or levels of emission reductions related to the Consent Decree      resolving the New Source Review litigation or other potential regulatory      initiatives, adverse regulatory or legal decisions and outcomes (including,      but      not limited to, the revocation of necessary licenses or operating permits and      oversight) by the NRC (including, but not limited to, the Demand for Information      issued to FENOC on May 14, 2007) as disclosed in the registrants’ SEC      filings, the timing and outcome of various proceedings before the PUCO      (including, but not limited to, the distribution rate cases and the generation      supply plan filing for the Ohio Companies and the successful resolution of      the      issues remanded to the PUCO by the Ohio Supreme Court regarding the RSP and      RCP,      including the deferral of fuel costs) and the PPUC (including the resolution      of      the Petitions for Review filed with the Commonwealth Court of Pennsylvania      with      respect to the transition rate plan for Met-Ed and Penelec), the continuing      availability of generating units and their the ability to operate at, or near      full capacity, the ability to comply with applicable state and federal      reliability standards, the inability to accomplish or realize anticipated      benefits from strategic goals (including employee workforce initiatives), the      ability to improve electric commodity margins and to experience growth in the      distribution business, the ability to access the public securities and other      capital markets and the cost of such capital, the outcome, cost and other      effects of present and potential legal and administrative proceedings and claims      related to the August 14, 2003 regional power outage,  the risks      and other factors discussed from time to time in the registrants’ SEC filings,      and other similar factors. The foregoing review of factors should not be      construed as exhaustive. New factors emerge from time to time, and it is not      possible to predict all such factors, nor assess the impact of any such factor      on the registrants’ 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. Also, a security rating is not a recommendation      to buy, sell or hold securities, and it may be subject to revision or withdrawal      at any time and each such rating should be evaluated independently of any other      rating. The registrants expressly disclaim any current intention to update      any      forward-looking statements contained herein as a result of new information,      future events, or otherwise.*

----

**TABLE      OF      CONTENTS**

|                                                                                                                                                                                                                                                                                                  |                                                                                  | **Pages** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|-----------|
| **Glossary                of                Terms**                                                                                                                                                                                                                                                   | iii-iv                                                                                |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
| **Part                I.     Financial                Information**                                                                                                                                                                                                          |                                                                                  |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
| **Items                1. and 2. - Financial                Statements and Management’s Discussion and Analysis of Financial Condition                and****                               Results of Operations.** |                                                                                  |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
|                                                                                                                                                                                                                                                                                                  | Notes                to                Consolidated Financial Statements              | 1-34      |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
| **FirstEnergy                Corp.**                                                                                                                                                                                                                                                                  |                                                                                  |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Income                                      | 35        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Comprehensive Income                        | 36        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Balance Sheets                                            | 37        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Cash Flows                                  | 38        |
|                                                                                                                                                                                                                                                                                                  | Report                of                Independent Registered Public Accounting Firm | 39        |
|                                                                                                                                                                                                                                                                                                  | Management's                Discussion and Analysis of Financial Condition and        | 40-80     |
|                                                                                                                                                                                                                                                                                                  | Results                of Operations                                                  |      |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
| **FirstEnergy                Solutions                Corp.**                                                                                                                                                                                                                                         |                                                                                  |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Income and Comprehensive Income             | 81        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Balance Sheets                                            | 82        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Cash Flows                                  | 83        |
|                                                                                                                                                                                                                                                                                                  | Report                of                Independent Registered Public Accounting Firm | 84        |
|                                                                                                                                                                                                                                                                                                  | Management's                Narrative Analysis of Results of Operations               | 85-87     |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
| **Ohio                Edison                Company**                                                                                                                                                                                                                                                 |                                                                                  |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Income and Comprehensive Income             | 88        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Balance Sheets                                            | 89        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Cash Flows                                  | 90        |
|                                                                                                                                                                                                                                                                                                  | Report                of                Independent Registered Public Accounting Firm | 91        |
|                                                                                                                                                                                                                                                                                                  | Management's                Narrative Analysis of Results of Operations               | 92-93     |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
| **The                Cleveland Electric                Illuminating Company**                                                                                                                                                                                                                         |                                                                                  |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Income and Comprehensive Income             | 94        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Balance Sheets                                            | 95        |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Cash Flows                                  | 96        |
|                                                                                                                                                                                                                                                                                                  | Report                of                Independent Registered Public Accounting Firm | 97        |
|                                                                                                                                                                                                                                                                                                  | Management's                Narrative Analysis of Results of Operations               | 98-99     |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
| **The                Toledo Edison                Company**                                                                                                                                                                                                                                           |                                                                                  |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Income and Comprehensive Income             | 100       |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Balance Sheets                                            | 101       |
|                                                                                                                                                                                                                                                                                                  | Consolidated                Statements of Cash Flows                                  | 102       |
|                                                                                                                                                                                                                                                                                                  | Report                of                Independent Registered Public Accounting Firm | 103       |
|                                                                                                                                                                                                                                                                                                  | Management's                Narrative Analysis of Results of Operations               | 104-105   |
|                                                                                                                                                                                                                                                                                                  |                                                                                  |      |

----

**TABLE      OF      CONTENTS (Cont'd)**

| **Jersey                Central Power & Light                Company**                                                                                                                                                                | **Pages**                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                      |                                                                                  |   |
|                                                                                                                                                                                                                                      | Consolidated                Statements of Income and Comprehensive Income             | 106 |
|                                                                                                                                                                                                                                      | Consolidated                Balance Sheets                                            | 107 |
|                                                                                                                                                                                                                                      | Consolidated                Statements of Cash Flows                                  | 108 |
|                                                                                                                                                                                                                                      | Report                of                Independent Registered Public Accounting Firm | 109 |
|                                                                                                                                                                                                                                      | Management's                Narrative Analysis of Results of Operations               | 110-111 |
|                                                                                                                                                                                                                                      |                                                                                  |   |
| **Metropolitan                Edison                Company**                                                                                                                                                                             |                                                                                  |
|                                                                                                                                                                                                                                      |                                                                                  |   |
|                                                                                                                                                                                                                                      | Consolidated                Statements of Income and Comprehensive Income             | 112 |
|                                                                                                                                                                                                                                      | Consolidated                Balance Sheets                                            | 113 |
|                                                                                                                                                                                                                                      | Consolidated                Statements of Cash Flows                                  | 114 |
|                                                                                                                                                                                                                                      | Report                of                Independent Registered Public Accounting Firm | 115 |
|                                                                                                                                                                                                                                      | Management's                Narrative Analysis of Results of Operations               | 116-117 |
|                                                                                                                                                                                                                                      |                                                                                  |   |
| **Pennsylvania                Electric                Company**                                                                                                                                                                           |                                                                                  |
|                                                                                                                                                                                                                                      |                                                                                  |   |
|                                                                                                                                                                                                                                      | Consolidated                Statements of Income and Comprehensive Income             | 118 |
|                                                                                                                                                                                                                                      | Consolidated                Balance Sheets                                            | 119 |
|                                                                                                                                                                                                                                      | Consolidated                Statements of Cash Flows                                  | 120 |
|                                                                                                                                                                                                                                      | Report                of                Independent Registered Public Accounting Firm | 121 |
|                                                                                                                                                                                                                                      | Management's                Narrative Analysis of Results of Operations               | 122-123 |
|                                                                                                                                                                                                                                      |                                                                                  |   |
| **Combined                Management’s Discussion                and Analysis of Registrant Subsidiaries**                                                                                                                          | 124-137                                                                               |
|                                                                                                                                                                                                                                      |                                                                                  |
| **Item                3.                      Quantitative                and Qualitative Disclosures About Market Risk.**  | 138                                                                                   |
|                                                                                                                                                                                                                                      |                                                                                  |   |
| **Item                4.                      Controls                and Procedures.**                                     | 138                                                                                   |
|                                                                                                                                                                                                                                      |                                                                                  |   |
| **Part                II.    Other Information**                                                                                                                                                                           |                                                                                  |
|                                                                                                                                                                                                                                      |                                                                                  |   |
| **Item                1.                      Legal                Proceedings.**                                           | 139                                                                                   |
|                                                                                                                                                                                                                                      |                                                                                  |   |
| **Item                1A.                   Risk                Factors.**                                                                 | 139                                                                                   |
|                                                                                                                                                                                                                                      |                                                                                  |
| **Item                2.                      Unregistered                Sales of Equity Securities and Use of Proceeds.** | 139                                                                                   |
|                                                                                                                                                                                                                                      |                                                                                  |
| **Item                6.                      Exhibits.**                                                                   | 140                                                                                   |

----

**GLOSSARY              OF              TERMS**

| ATSI                                                                                                                                                            | American                Transmission Systems, Inc., owns and operates transmission                facilities                                                                                                   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CEI                                                                                                                                                             | The                Cleveland                Electric Illuminating Company, an Ohio electric utility operating                subsidiary                                                                        |   |
| Companies                                                                                                                                                       | OE,                CEI, TE,                JCP&L, Met-Ed and Penelec                                                                                                                                       |   |
| FENOC                                                                                                                                                           | FirstEnergy                Nuclear Operating Company, operates nuclear generating                facilities                                                                                                    |   |
| FES                                                                                                                                                             | FirstEnergy                Solutions Corp., provides energy-related products and                services                                                                                                       |   |
| FESC                                                                                                                                                            | FirstEnergy                Service Company, provides legal, financial, and other corporate support                services                                                                                     |   |
| FGCO                                                                                                                                                            | FirstEnergy                Generation Corp., owns and operates non-nuclear generating                facilities                                                                                                |   |
| FirstEnergy                                                                                                                                                     | FirstEnergy                Corp., a public utility holding company                                                                                                                                             |   |
| FSG                                                                                                                                                             | FirstEnergy                Facilities Services Group, LLC, former parent company of several                heating,                ventilation,air                conditioning and energy management companies |   |
| GPU                                                                                                                                                             | GPU,                Inc.,                former parent of JCP&L, Met-Ed and Penelec, which merged with                FirstEnergy onNovember 7,                2001                                   |   |
| JCP&L                                                                                                                                                       | Jersey                Central                Power & Light Company, a New Jersey electric utility operating                subsidiary                                                                      |   |
| JCP&L                Transition   Funding                                                                                                    | JCP&L                Transition Funding LLC, a Delaware limited liability company and                issuer of                transition   bonds                                            |   |
| JCP&L                Transition   Funding                II                                                                                  | JCP&L                Transition Funding II LLC, a Delaware limited liability company and                issuer                of transition    bonds                                        |   |
| Met-Ed                                                                                                                                                          | Metropolitan                Edison Company, a Pennsylvania electric utility operating                subsidiary                                                                                                |   |
| MYR                                                                                                                                                             | MYR                Group,                Inc., a utility infrastructure construction service                company                                                                                            |   |
| NGC                                                                                                                                                             | FirstEnergy                Nuclear Generation Corp., owns nuclear generating                facilities                                                                                                         |   |
| OE                                                                                                                                                              | Ohio                Edison                Company, an Ohio electric utility operating subsidiary                                                                                                               |   |
| Ohio                Companies                                                                                                                                   | CEI,                OE and                TE                                                                                                                                                                   |   |
| Penelec                                                                                                                                                         | Pennsylvania                Electric Company, a Pennsylvania electric utility operating                subsidiary                                                                                              |   |
| Penn                                                                                                                                                            | Pennsylvania                Power Company, a Pennsylvania electric utility operating subsidiary                of                OE                                                                            |   |
| Pennsylvania                Companies                                                                                                                           | Met-Ed,                Penelec and Penn                                                                                                                                                                        |   |
| PNBV                                                                                                                                                            | PNBV                Capital                Trust, a special purpose entity created by OE in 1996                                                                                                               |   |
| Shippingport                                                                                                                                                    | Shippingport                Capital Trust, a special purpose entity created by CEI and TE in                1997                                                                                               |   |
| TE                                                                                                                                                              | The                Toledo                Edison Company, an Ohio electric utility operating                subsidiary                                                                                          |   |
| TEBSA                                                                                                                                                           | Termobarranquilla                S.A., Empresa de Servicios Publicos                                                                                                                                           |   |
|                                                                                                                                                            |                                                                                                                                                                                                           |   |
| The                following                abbreviations and acronyms are used to identify frequently used terms                in                this report: |                                                                                                                                                                                                           |
|                                                                                                                                                            |                                                                                                                                                                                                           |   |
| ALJ                                                                                                                                                             | Administrative                Law Judge                                                                                                                                                                        |   |
| APIC                                                                                                                                                            | Additional                Paid-In Capital                                                                                                                                                                      |   |
| AOCL                                                                                                                                                            | Accumulated                Other Comprehensive Loss                                                                                                                                                            |   |
| ARO                                                                                                                                                             | Asset                Retirement Obligation                                                                                                                                                                     |   |
| BGS                                                                                                                                                             | Basic                Generation Service                                                                                                                                                                        |   |
| CAIR                                                                                                                                                            | Clean                Air                Interstate Rule                                                                                                                                                        |   |
| CAL                                                                                                                                                             | Confirmatory                Action Letter                                                                                                                                                                      |   |
| CAMR                                                                                                                                                            | Clean                Air                Mercury Rule                                                                                                                                                           |   |
| CBP                                                                                                                                                             | Competitive                Bid Process                                                                                                                                                                         |   |
| CO2                                                                                                                                                             | Carbon                Dioxide                                                                                                                                                                                  |   |
| DOJ                                                                                                                                                             | United                States                Department of Justice                                                                                                                                              |
| DRA                                                                                                                                                             | Division                of                Ratepayer Advocate                                                                                                                                                   |
| ECAR                                                                                                                                                            | East                Central                Area Reliability Coordination Agreement                                                                                                                             |
| EIS                                                                                                                                                             | Energy                Independence Strategy                                                                                                                                                                    |
| EITF                                                                                                                                                            | Emerging                Issues Task Force                                                                                                                                                                      |
| EITF                06-11                                                                                                                                       | EITF                Issue No.                06-11, “Accounting for Income Tax Benefits of Dividends or                Share-Based   Payment                Awards”                 |
| EMP                                                                                                                                                             | Energy                Master                Plan                                                                                                                                                               |
| EPA                                                                                                                                                             | Environmental                Protection Agency                                                                                                                                                                 |
| EPACT                                                                                                                                                           | Energy                Policy                Act of 2005                                                                                                                                                        |
| ERO                                                                                                                                                             | Electric                Reliability Organization                                                                                                                                                               |
| FASB                                                                                                                                                            | Financial                Accounting Standards Board                                                                                                                                                            |
| FERC                                                                                                                                                            | Federal                Energy                Regulatory Commission                                                                                                                                             |
| FIN                                                                                                                                                             | FASB                Interpretation                                                                                                                                                                             |
| FIN                39-1                                                                                                                                         | FIN                39-1,                “Amendment of FASB Interpretation No. 39”                                                                                                                  |
| FIN                46R                                                                                                                                          | FIN                46                (revised December 2003), "Consolidation of Variable Interest                Entities"                                                                                     |
| FIN                47                                                                                                                                           | FIN                47,                "Accounting for Conditional Asset Retirement Obligations - an                interpretation of FASB   Statement                No. 143"                   |

----

**GLOSSARY              OF              TERMS,              Cont’d.**

| FIN                48      | FIN                48,                “Accounting for Uncertainty in Income Taxes - an interpretation of                FASB                Statement   No.                109”                            |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| FMB                        | First                Mortgage                Bonds                                                                                                                                                                                    |
| GAAP                       | Accounting                Principles Generally Accepted in the United States                                                                                                                                                          |
| GHG                        | Greenhouse                Gases                                                                                                                                                                                                       |
| IRS                        | Internal                Revenue Service                                                                                                                                                                                               |
| kV                         | Kilovolt                                                                                                                                                                                                                              |
| KWH                        | Kilowatt-hours                                                                                                                                                                                                                        |
| LOC                        | Letter                of                Credit                                                                                                                                                                                        |
| MEIUG                      | Met-Ed                Industrial Users Group                                                                                                                                                                                          |
| MISO                       | Midwest                Independent Transmission System Operator, Inc.                                                                                                                                                                 |
| Moody’s              | Moody’s                Investors Service                                                                                                                                                                                        |
| MOU                        | Memorandum                of                Understanding                                                                                                                                                                             |
| MW                         | Megawatts                                                                                                                                                                                                                             |
| NAAQS                      | National                Ambient Air Quality Standards                                                                                                                                                                                 |
| NERC                       | North                American                Electric Reliability Corporation                                                                                                                                                         |
| NJBPU                      | New                Jersey                Board of Public Utilities                                                                                                                                                                    |
| NOPR                       | Notice                of                Proposed Rulemaking                                                                                                                                                                           |
| NOV                        | Notice                of                Violation                                                                                                                                                                                     |
| NOX                        | Nitrogen                Oxide                                                                                                                                                                                                         |
| NRC                        | Nuclear                Regulatory Commission                                                                                                                                                                                          |
| NSR                        | New                Source                Review                                                                                                                                                                                       |
| NUG                        | Non-Utility                Generation                                                                                                                                                                                                 |
| NUGC                       | Non-Utility                Generation Charge                                                                                                                                                                                          |
| OCA                        | Office                of                Consumer Advocate                                                                                                                                                                             |
| OCC                        | Office                of the                Ohio Consumers’ Counsel                                                                                                                                                             |
| OVEC                       | Ohio                Valley                Electric Corporation                                                                                                                                                                        |
| PICA                       | Penelec                Industrial Customer Alliance                                                                                                                                                                                   |
| PJM                        | PJM                Interconnection L. L. C.                                                                                                                                                                                           |
| PLR                        | Provider                of                Last Resort                                                                                                                                                                                 |
| PPUC                       | Pennsylvania                Public Utility Commission                                                                                                                                                                                 |
| PRP                        | Potentially                Responsible Party                                                                                                                                                                                          |
| PSA                        | Power                Supply                Agreement                                                                                                                                                                                  |
| PUCO                       | Public                Utilities Commission of Ohio                                                                                                                                                                                    |
| PUHCA                      | Public                Utility                Holding Company Act of 1935                                                                                                                                                              |
| RCP                        | Rate                Certainty                Plan                                                                                                                                                                                     |   |
| RFP                        | Request                for                Proposal                                                                                                                                                                                    |   |
| RSP                        | Rate                Stabilization Plan                                                                                                                                                                                                |   |
| RTO                        | Regional                Transmission Organization                                                                                                                                                                                     |   |
| RTOR                       | Regional                Through and Out Rates                                                                                                                                                                                         |   |
| S&P                    | Standard&                Poor’s Ratings Service                                                                                                                                                                             |   |
| SBC                        | Societal                Benefits Charge                                                                                                                                                                                               |   |
| SEC                        | U.S.                Securities and Exchange Commission                                                                                                                                                                                |   |
| SECA                       | Seams                Elimination Cost Adjustment                                                                                                                                                                                      |   |
| SFAS                       | Statement                of                Financial Accounting Standards                                                                                                                                                             |   |
| SFAS                107    | SFAS                No. 107,                “Disclosure about Fair Value of Financial Instruments”                                                                                                                        |   |
| SFAS                109    | SFAS                No. 109,                “Accounting for Income Taxes”                                                                                                                                                 |   |
| SFAS                123(R) | SFAS                No.                123(R), "Share-Based Payment"                                                                                                                                                                  |   |
| SFAS                133    | SFAS                No. 133,                “Accounting for Derivative Instruments and Hedging                Activities”                                                                                                 |   |
| SFAS                142    | SFAS                No. 142,                “Goodwill and Other Intangible Assets”                                                                                                                                        |   |
| SFAS                143    | SFAS                No. 143,                “Accounting for Asset Retirement Obligations”                                                                                                                                 |   |
| SFAS                157    | SFAS                No. 157,                “Fair Value Measurements”                                                                                                                                                     |   |
| SFAS                159    | SFAS                No. 159,                “The Fair Value Option for Financial Assets and Financial Liabilities–                Including an   Amendment                of FASB Statement No. 115” |   |
| SIP                        | State                Implementation Plan(s) Under the Clean Air Act                                                                                                                                                                   |   |
| SNCR                       | Selective                Non-Catalytic Reduction                                                                                                                                                                                      |   |
| SO2                        | Sulfur                Dioxide                                                                                                                                                                                                         |   |
| SRM                        | Special                Reliability Master                                                                                                                                                                                             |   |
| TBC                        | Transition                Bond Charge                                                                                                                                                                                                 |   |
| TMI-2                      | Three                Mile                Island Unit 2                                                                                                                                                                                |   |
| VIE                        | Variable                Interest Entity                                                                                                                                                                                               |   |

----

**PART      I.      FINANCIAL INFORMATION**

**ITEMS      1. AND      2. FINANCIAL STATEMENTS AND MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL      CONDITION AND RESULTS OF OPERATIONS.**

**FIRSTENERGY      CORP. AND SUBSIDIARIES**

**FIRSTENERGY      SOLUTIONS CORP. AND SUBSIDIARIES**

**OHIO      EDISON      COMPANY AND SUBSIDIARIES**

**THE      CLEVELAND ELECTRIC ILLUMINATING COMPANY AND SUBSIDIARIES**

**THE      TOLEDO      EDISON COMPANY AND SUBSIDIARY**

**JERSEY      CENTRAL POWER & LIGHT COMPANY AND SUBSIDIARIES**

**METROPOLITAN      EDISON COMPANY AND SUBSIDIARIES**

**PENNSYLVANIA      ELECTRIC COMPANY AND SUBSIDIARIES**

**NOTES      TO      CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**1.  ORGANIZATION      AND BASIS OF PRESENTATION**

----

**2.  EARNINGS      PER SHARE**

|                                                                                      |   | **Three                Months Ended**                        |   | **Nine                Months Ended** |   |
|-------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                                      |   | **September                  30,**                           |   | **September                  30,**   |   |
| **Reconciliation                of Basic and Diluted Earnings per Share**                 |   | **2007**                                                     |   | **2006**                             |   | **2007** |   | **2006** |   |
|                                                                                      |   | ***(In                millions, except per share amounts)*** |   |
|                                                                                      |   |                                                         |   |                                 |   |   |   |   |   |   |   |   |   |
| Income                from                continuing operations                           |   | $                                                            | 413    |                                 | $      | 452 |   | $ | 1,041 |   | $ | 983 |   |
| Discontinued                operations                                                    |   |                                                         | -      |                                 |   | 2 |   |   | - |   |   | (4 | ) |
| Redemption                premium on subsidiary preferred stock                           |   |                                                         | -      |                                 |   | - |   |   | - |   |   | (3 | ) |
| Net                earnings                available for common shareholders              |   | $                                                            | 413    |                                 | $      | 454 |   | $ | 1,041 |   | $ | 976 |   |
|                                                                                      |   |                                                         |   |                                 |   |   |   |   |   |   |   |   |   |
| Average                shares                of common stock outstanding – Basic    |   |                                                         | 304    |                                 |   | 322 |   |   | 307 |   |   | 326 |   |
| Assumed                exercise of dilutive stock options and awards                      |   |                                                         | 3      |                                 |   | 3 |   |   | 4 |   |   | 3 |   |
| Average                shares                of common stock outstanding – Dilutive |   |                                                         | 307    |                                 |   | 325 |   |   | 311 |   |   | 329 |   |
|                                                                                      |   |                                                         |   |                                 |   |   |   |   |   |   |   |   |   |
| Earnings                per                share:                                         |   |                                                         |   |                                 |   |   |   |   |   |   |   |   |   |
| Basic                earnings                per share:                                   |   |                                                         |   |                                 |   |   |   |   |   |   |   |   |   |
| Earnings                from                continuing operations                         |   | $                                                            | 1.36   |                                 | $      | 1.40 |   | $ | 3.39 |   | $ | 3.00 |   |
| Discontinued                operations                                                    |   |                                                         | -      |                                 |   | 0.01 |   |   | - |   |   | (0.01 | ) |
| Net                earnings                per basic share                                |   | $                                                            | 1.36   |                                 | $      | 1.41 |   | $ | 3.39 |   | $ | 2.99 |   |
|                                                                                      |   |                                                         |   |                                 |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share:                                                |   |                                                         |   |                                 |   |   |   |   |   |   |   |   |   |
| Earnings                from                continuing operations                         |   | $                                                            | 1.34   |                                 | $      | 1.39 |   | $ | 3.35 |   | $ | 2.98 |   |
| Discontinued                operations                                                    |   |                                                         | -      |                                 |   | 0.01 |   |   | - |   |   | (0.01 | ) |
| Net                earnings                per diluted share                              |   | $                                                            | 1.34   |                                 | $      | 1.40 |   | $ | 3.35 |   | $ | 2.97 |   |

**3.  GOODWILL**

----

| **Three                  Months Ended**                            |   | **FirstEnergy**                                                                                                                                                                                                                                            |   | **FES** |   | **CEI** |   | **TE** |   | **JCP&L** |   | **Met-Ed** |   | **Penelec** |   |
|--------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|---------|--------|--------|--------|---------------|--------|------------|--------|-------------|--------|
|                                                               |   | ***                 (In                millions)***                    |   |
| Balance                  as of                  July 1, 2007       |   | $                                                                                                                                                                                                                                                          | 5,898  |    | $      | 24      |   | $      | 1,689  |          | $      | 501        |   | $           | 1,962  |   | $ | 496 |   | $ | 861 |   |
| Adjustments                  related to GPU acquisition            |   |                                                                                                                                                                                                                                                       | (289   | )       |   | -       |   |   | -      |          |   | -          |   |        | (136   | ) |   | (70 | ) |   | (83 | ) |
| Balance                  as of                  September 30, 2007 |   | $                                                                                                                                                                                                                                                          | 5,609  |    | $      | 24      |   | $      | 1,689  |          | $      | 501        |   | $           | 1,826  |   | $ | 426 |   | $ | 778 |   |

| **Nine                  Months Ended**                             |   | **FirstEnergy**                      |   | **FES** |   | **CEI** |   | **TE** |   | **JCP&L** |   | **Met-Ed** |   | **Penelec** |   |
|--------------------------------------------------------------------|--------|--------------------------------------|--------|---------|--------|---------|--------|--------|--------|---------------|--------|------------|--------|-------------|--------|
|                                                               |   | ***(In                  millions)*** |   |
| Balance                  as of                  January 1, 2007    |   | $                                    | 5,898  |    | $      | 24      |   | $      | 1,689  |          | $      | 501        |   | $           | 1,962  |   | $ | 496 |   | $ | 861 |   |
| Adjustments                  related to GPU acquisition            |   |                                 | (289   | )       |   | -       |   |   | -      |          |   | -          |   |        | (136   | ) |   | (70 | ) |   | (83 | ) |
| Balance                  as of                  September 30, 2007 |   | $                                    | 5,609  |    | $      | 24      |   | $      | 1,689  |          | $      | 501        |   | $           | 1,826  |   | $ | 426 |   | $ | 778 |   |

**4.  DIVESTITURES      AND DISCONTINUED OPERATIONS**

|                            |   | **Three                Months**    |   |   | **Nine                Months** |   |
|---------------------------------|--------|------------------------------------|--------|--------|--------------------------------|--------|
|                            |   | *(**In                millions)*** |   |
|                            |   |                               |   |   |                           |   |
| FSG                subsidiaries |   | $                                  | 2      |   | $                              | (6     | ) |
| MYR                             |   |                               | -      |   |                           | 2      |   |
| Total                           |   | $                                  | 2      |   | $                              | (4     | ) |

**5.  DERIVATIVE      INSTRUMENTS**

----

**6.  ASSET      RETIREMENT OBLIGATIONS**

| **Three                Months Ended**                |   | **FirstEnergy**                    |   | **FES** |   | **OE** |   | **CEI** |   | **TE** |   | **JCP&L** |   | **Met-Ed** |   | **Penelec** |   |
|------------------------------------------------------|--------|------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------------|--------|------------|--------|-------------|--------|
|                                                 |   | ***(In                millions)*** |   |
| **ARO                Reconciliation**                |   |                               |   |    |   |   |   |    |   |   |   |          |   |       |   |        |   |   |   |   |   |   |   |   |   |
| Balance,                July                1, 2007  |   | $                                  | 1,228  |    | $      | 784    |   | $       | 91     |   | $      | 2             |   | $          | 27     |        | $      | 87 |   | $ | 156 |   | $ | 79 |   |
| Liabilities                incurred                  |   |                               | -      |    |   | -      |   |    | -      |   |   | -             |   |       | -      |        |   | - |   |   | - |   |   | - |   |
| Liabilities                settled                   |   |                               | -      |    |   | -      |   |    | -      |   |   | -             |   |       | -      |        |   | - |   |   | - |   |   | - |   |
| Accretion                                            |   |                               | 19     |    |   | 13     |   |    | 1      |   |   | -             |   |       | 1      |        |   | 1 |   |   | 2 |   |   | 2 |   |
| Revisions                in                estimated |   |                               |   |    |   |   |   |    |   |   |   |          |   |       |   |        |   |   |   |   |   |   |   |   |   |
| cashflows                                            |   |                               | -      |    |   | -      |   |    | -      |   |   | -             |   |       | -      |        |   | - |   |   | - |   |   | - |   |
| Balance,                September 30, 2007           |   | $                                  | 1,247  |    | $      | 797    |   | $       | 92     |   | $      | 2             |   | $          | 28     |        | $      | 88 |   | $ | 158 |   | $ | 81 |   |
|                                                 |   |                               |   |    |   |   |   |    |   |   |   |          |   |       |   |        |   |   |   |   |   |   |   |   |   |
| Balance,                July                1, 2006  |   | $                                  | 1,160  |    | $      | 743    |   | $       | 85     |   | $      | 2             |   | $          | 26     |        | $      | 82 |   | $ | 146 |   | $ | 74 |   |
| Liabilities                incurred                  |   |                               | -      |    |   | -      |   |    | -      |   |   | -             |   |       | -      |        |   | - |   |   | - |   |   | - |   |
| Liabilities                settled                   |   |                               | -      |    |   | -      |   |    | -      |   |   | -             |   |       | -      |        |   | - |   |   | - |   |   | - |   |
| Accretion                                            |   |                               | 19     |    |   | 13     |   |    | 2      |   |   | -             |   |       | -      |        |   | 1 |   |   | 3 |   |   | 2 |   |
| Revisions                in                estimated |   |                               |   |    |   |   |   |    |   |   |   |          |   |       |   |        |   |   |   |   |   |   |   |   |   |
| cashflows                                            |   |                               | -      |    |   | -      |   |    | -      |   |   | -             |   |       | -      |        |   | - |   |   | - |   |   | - |   |
| Balance,                September 30, 2006           |   | $                                  | 1,179  |    | $      | 756    |   | $       | 87     |   | $      | 2             |   | $          | 26     |        | $      | 83 |   | $ | 149 |   | $ | 76 |   |
|                                                 |   |                               |   |    |   |   |   |    |   |   |   |          |   |       |   |        |   |   |   |   |   |   |   |   |   |

----

|  **Nine              Months Ended**             |   |   **FirstEnergy**                                                                                                                                                                                                                                                                                                |   |   **FES** |   |   **OE** |   |   **CEI** |   |   **TE** |   |   **JCP&L** |   |   **Met-Ed** |   |   **Penelec** |   |
|------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------------------|--------|---------------------|--------|--------------------|--------|---------------------------|--------|------------------------|--------|-------------------------|--------|
|                                                 |   | ***                                           (In millions)***                       |   |
| **ARO                Reconciliation**                |   |                                                                                                                                                                                                                                                                                                                            |   |                |   |               |   |                |   |               |   |                      |   |                   |   |                    |   |   |   |   |   |   |   |   |   |
| Balance,                January 1, 2007              |   | $                                                                                                                                                                                                                                                                                                                               | 1,190  |                | $      | 760                |   | $                   | 88     |               | $      | 2                         |   | $                      | 27     |                    | $      | 84 |   | $ | 151 |   | $ | 77 |   |
| Liabilities                incurred                  |   |                                                                                                                                                                                                                                                                                                                            | -      |                |   | -                  |   |                | -      |               |   | -                         |   |                   | -      |                    |   | - |   |   | - |   |   | - |   |
| Liabilities                settled                   |   |                                                                                                                                                                                                                                                                                                                            | (2     | )                   |   | (1                 | )      |                | -      |               |   | -                         |   |                   | -      |                    |   | - |   |   | - |   |   | - |   |
| Accretion                                            |   |                                                                                                                                                                                                                                                                                                                            | 59     |                |   | 38                 |   |                | 4      |               |   | -                         |   |                   | 1      |                    |   | 4 |   |   | 7 |   |   | 4 |   |
| Revisions                in                estimated |   |                                                                                                                                                                                                                                                                                                                            |   |                |   |               |   |                |   |               |   |                      |   |                   |   |                    |   |   |   |   |   |   |   |   |   |
| cashflows                                            |   |                                                                                                                                                                                                                                                                                                                            | -      |                |   | -                  |   |                | -      |               |   | -                         |   |                   | -      |                    |   | - |   |   | - |   |   | - |   |
| Balance,                September 30, 2007           |   | $                                                                                                                                                                                                                                                                                                                               | 1,247  |                | $      | 797                |   | $                   | 92     |               | $      | 2                         |   | $                      | 28     |                    | $      | 88 |   | $ | 158 |   | $ | 81 |   |
|                                                 |   |                                                                                                                                                                                                                                                                                                                            |   |                |   |               |   |                |   |               |   |                      |   |                   |   |                    |   |   |   |   |   |   |   |   |   |
| Balance,                January 1, 2006              |   | $                                                                                                                                                                                                                                                                                                                               | 1,126  |                | $      | 716                |   | $                   | 83     |               | $      | 8                         |   | $                      | 25     |                    | $      | 80 |   | $ | 142 |   | $ | 72 |   |
| Liabilities                incurred                  |   |                                                                                                                                                                                                                                                                                                                            | -      |                |   | -                  |   |                | -      |               |   | -                         |   |                   | -      |                    |   | - |   |   | - |   |   | - |   |
| Liabilities                settled                   |   |                                                                                                                                                                                                                                                                                                                            | (6     | )                   |   | -                  |   |                | -      |               |   | (6                        | )      |                   | -      |                    |   | - |   |   | - |   |   | - |   |
| Accretion                                            |   |                                                                                                                                                                                                                                                                                                                            | 55     |                |   | 36                 |   |                | 4      |               |   | -                         |   |                   | 1      |                    |   | 3 |   |   | 7 |   |   | 4 |   |
| Revisions                in                estimated |   |                                                                                                                                                                                                                                                                                                                            |   |                |   |               |   |                |   |               |   |                      |   |                   |   |                    |   |   |   |   |   |   |   |   |   |
| cashflows                                            |   |                                                                                                                                                                                                                                                                                                                            | 4      |                |   | 4                  |   |                | -      |               |   | -                         |   |                   | -      |                    |   | - |   |   | - |   |   | - |   |
| Balance,                September 30, 2006           |   | $                                                                                                                                                                                                                                                                                                                               | 1,179  |                | $      | 756                |   | $                   | 87     |               | $      | 2                         |   | $                      | 26     |                    | $      | 83 |   | $ | 149 |   | $ | 76 |   |

**7.  PENSION      AND OTHER POSTRETIREMENT BENEFITS**

|                                                        |   | **           Three                Months Ended** | **Nine                Months Ended** |                             |
|-------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------------------------------------|----------------------------------|
|                                                        |   | **September                30,**                                                                        |                                 | **September                30,** |   |
| **Pension                Benefits**                         |   | **2007**                                                                                                |                                 | **2006**                         |   | **2007** |   | **2006** |   |
|                                                        |   | ***(In                millions)***                                                                      |                                 |
| Service                cost                                 |   | $                                                                                                       | 21                                   |                             | $ | 21 |   | $ | 63 |   | $ | 63 |   |
| Interest                cost                                |   |                                                                                                    | 71                                   |                             |   | 66 |   |   | 213 |   |   | 199 |   |
| Expected                return on plan assets               |   |                                                                                                    | (112                                 | )                                |   | (99 | ) |   | (337 | ) |   | (297 | ) |
| Amortization                of prior service cost           |   |                                                                                                    | 2                                    |                             |   | 2 |   |   | 7 |   |   | 7 |   |
| Recognized                net                actuarial loss |   |                                                                                                    | 10                                   |                             |   | 15 |   |   | 31 |   |   | 44 |   |
| Net                periodic                cost (credit)    |   | $                                                                                                       | (8                                   | )                                | $ | 5 |   | $ | (23 | ) | $ | 16 |   |

|                                                        |   | **           Three                Months Ended** | **Nine                Months Ended** |                             |
|-------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------------------------------------|----------------------------------|
|                                                        |   | **September                30,**                                                                        |                                 | **September                30,** |   |
| **Other                Postretirement Benefits**            |   | **2007**                                                                                                |                                 | **2006**                         |   | **2007** |   | **2006** |   |
|                                                        |   | ***(In                millions)***                                                                      |                                 |
| Service                cost                                 |   | $                                                                                                       | 5                                    |                             | $ | 9 |   | $ | 16 |   | $ | 26 |   |
| Interest                cost                                |   |                                                                                                    | 17                                   |                             |   | 26 |   |   | 52 |   |   | 79 |   |
| Expected                return on plan assets               |   |                                                                                                    | (12                                  | )                                |   | (12 | ) |   | (38 | ) |   | (35 | ) |
| Amortization                of prior service cost           |   |                                                                                                    | (37                                  | )                                |   | (19 | ) |   | (112 | ) |   | (57 | ) |
| Recognized                net                actuarial loss |   |                                                                                                    | 11                                   |                             |   | 14 |   |   | 34 |   |   | 42 |   |
| Net                periodic                cost (credit)    |   | $                                                                                                       | (16                                  | )                                | $ | 18 |   | $ | (48 | ) | $ | 55 |   |

----

|                                             |   | **Three                Months Ended** |   | **Nine                Months Ended** |   |
|--------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                             |   | **September                30,**      |   | **September                30,**     |   |
| **Pension                Benefit Cost (Credit)** |   | **2007**                              |   | **2006**                             |   | **2007** |   | **2006** |   |
|                                             |   | ***(In                millions)***    |   |
| FES                                              |   | $                                     | 5.2    |                                 | $      | 9.9 |   | $ | 15.7 |   | $ | 29.9 |   |
| OE                                               |   |                                  | (4.0   | )                                    |   | (1.5 | ) |   | (11.9 | ) |   | (4.5 | ) |
| CEI                                              |   |                                  | 0.3    |                                 |   | 1.0 |   |   | 0.9 |   |   | 2.9 |   |
| TE                                               |   |                                  | -      |                                 |   | 0.2 |   |   | (0.1 | ) |   | 0.7 |   |
| JCP&L                                        |   |                                  | (2.1   | )                                    |   | (1.4 | ) |   | (6.4 | ) |   | (4.1 | ) |
| Met-Ed                                           |   |                                  | (1.7   | )                                    |   | (1.7 | ) |   | (5.1 | ) |   | (5.2 | ) |
| Penelec                                          |   |                                  | (2.6   | )                                    |   | (1.3 | ) |   | (7.7 | ) |   | (4.0 | ) |
| Other                FirstEnergy subsidiaries    |   |                                  | (2.7   | )                                    |   | - |   |   | (8.1 | ) |   | - |   |
|                                             |   | $                                     | (7.6   | )                                    | $      | 5.2 |   | $ | (22.7 | ) | $ | 15.7 |   |

|                                                          |   | **Three                Months Ended** |   | **Nine                Months Ended** |   |
|---------------------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                                          |   | **September                30,**      |   | **September                30,**     |   |
| **Other                Postretirement Benefit Cost (Credit)** |   | **2007**                              |   | **2006**                             |   | **2007** |   | **2006** |   |
|                                                          |   | ***(In                millions)***    |   |
| FES                                                           |   | $                                     | (2.4   | )                                    | $      | 3.4 |   | $ | (7.4 | ) | $ | 10.2 |   |
| OE                                                            |   |                                  | (2.7   | )                                    |   | 4.2 |   |   | (8.0 | ) |   | 12.6 |   |
| CEI                                                           |   |                                  | 1.0    |                                 |   | 2.8 |   |   | 2.9 |   |   | 8.3 |   |
| TE                                                            |   |                                  | 1.2    |                                 |   | 2.0 |   |   | 3.7 |   |   | 6.1 |   |
| JCP&L                                                     |   |                                  | (4.0   | )                                    |   | 0.6 |   |   | (11.9 | ) |   | 1.8 |   |
| Met-Ed                                                        |   |                                  | (2.5   | )                                    |   | 0.7 |   |   | (7.7 | ) |   | 2.2 |   |
| Penelec                                                       |   |                                  | (3.2   | )                                    |   | 1.8 |   |   | (9.5 | ) |   | 5.4 |   |
| Other                FirstEnergy subsidiaries                 |   |                                  | (3.3   | )                                    |   | 2.7 |   |   | (9.8 | ) |   | 7.9 |   |
|                                                          |   | $                                     | (15.9  | )                                    | $      | 18.2 |   | $ | (47.7 | ) | $ | 54.5 |   |

**8.  VARIABLE      INTEREST ENTITIES**

**Trusts**

----

**Power      Purchase      Agreements**

|      |   | **Three                Months Ended** |   | **Nine                Months Ended** |   |
|-----------|--------|---------------------------------------|--------|--------------------------------------|--------|
|      |   | **September                30,**      |   | **September                30,**     |   |
|      |   | **2007**                              |   | **2006**                             |   | **2007** |   | **2006** |   |
|      |   | ***(In                millions)***    |   |
| JCP&L |   | $                                     | 30     |                                 | $      | 29 |   | $ | 71 |   | $ | 63 |   |
| Met-Ed    |   |                                  | 13     |                                 |   | 12 |   |   | 40 |   |   | 45 |   |
| Penelec   |   |                                  | 7      |                                 |   | 8 |   |   | 22 |   |   | 22 |   |
| Total     |   | $                                     | 50     |                                 | $      | 49 |   | $ | 133 |   | $ | 130 |   |

**Transition      Bonds**

----

**9.  INCOME      TAXES**

**10.  COMMITMENTS,      GUARANTEES AND CONTINGENCIES**

**(A)    GUARANTEES      AND OTHER ASSURANCES**

----

|                                                    |   |                              |    | **Borrowing**                      |   |
|---------------------------------------------------------|--------|-----------------------------------|---------|------------------------------------|--------|
| **Subsidiary                  Company**                 |   | **Parent                Company** |    | **Capacity**                       |   |
|                                                    |   |                              |    | ***(In                millions)*** |   |
| OES                Capital,                Incorporated |   |                              | OE      |                               | $      | 170 |   |
| Centerior                Funding Corp.                  |   |                              | CEI     |                               |   | 200 |   |
| PennPower                Funding LLC                    |   |                              | Penn    |                               |   | 25 |   |
| Met-Ed                Funding                LLC        |   |                              | Met-Ed  |                               |   | 80 |   |
| Penelec                Funding LLC                      |   |                              | Penelec |                               |   | 75 |   |
|                                                    |   |                              |    |                               | $      | 550 |   |

**(B)    ENVIRONMENTAL      MATTERS**

*Clean      Air Act Compliance*

----

*National      Ambient Air Quality      Standards*

*Mercury      Emissions*

----

*W.      H. Sammis Plant*

*Climate      Change*

----

*Clean      Water Act*

*Regulation      of Hazardous Waste*

----

**(C)   OTHER      LEGAL      PROCEEDINGS**

*Power      Outages and Related      Litigation*

----

*Nuclear      Plant Matters*

*Other      Legal Matters*

----

**11.  REGULATORY      MATTERS**

**(A)      RELIABILITY      INITIATIVES**

*First*
*First*

----

*yFirst*
*First*

**(B)      OHIO**

----

**(C)      PENNSYLVANIA**

----

----

**(D)      NEW JERSEY**

| ·   | Meet                22.5% of                New Jersey’s electricity needs with renewable energy resources by that                date; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Achieve                a 20%                reduction in both Customer Average Interruption Duration Index and                System                Average Interruption Frequency Index by                2020; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Maintain                unit                prices for electricity to no more than +5% of the regional average                price                (region includes New York, New Jersey, Pennsylvania, Delaware, Maryland                and the District of Columbia); and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(E)      FERC      MATTERS**

*** ***

----

*   New      FERC Transmission Rate      Design Filings*

*   MISO      Ancillary Services      Market and Balancing Area Consolidation Filing*

----

*   Order      No. 890 on Open Access      Transmission Tariffs*

**12.  LEASES**

| 2007                                                       | $      | 44    |
|------------------------------------------------------------|--------|-------|
| 2008                                                       |   | 89    |
| 2009                                                       |   | 89    |
| 2010                                                       |   | 89    |
| 2011                                                       |   | 89    |
| Years                thereafter                            |   | 2,286 |
| Total                minimum                lease payments | $      | 2,686 |

**13.  NEW      ACCOUNTING STANDARDS AND INTERPRETATIONS**

*SFAS      157 – “Fair Value      Measurements”*

----

|  |   | *SFAS                159 –                “The Fair Value Option for Financial Assets and Financial Liabilities–                Including an amendment of**FASB                Statement No. 115”* |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

* *
*. *

*EITF      06-11 – “Accounting for Income Tax      Benefits of Dividends or Share-based Payment Awards”*

*FSP      FIN 39-1 – “Amendment of FASB      Interpretation No. 39”*

**14.  SEGMENT      INFORMATION**

----

----

| **Segment                  Financial Information**     |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |
|--------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|-----------|--------|--------|-----------------|--------|--------|
|                                                   |   |                                                                                                                         |   |   |            |   |   | **Ohio**         |   |   |      |   |   |            |   |   |   |   |
|                                                   |   | **Energy**                                                                                                                   |   |   | **Competitive** |   |   | **Transitional** |   |   |      |   |   |            |   |   |   |   |
|                                                   |   | **Delivery**                                                                                                                 |   |   | **Energy**      |   |   | **Generation**   |   |   |      |   |   | **Reconciling** |   |   |   |   |
| **Three                  Months Ended**                |   | **Services**                                                                                                                 |   |   | **Services**    |   |   | **Services**     |   |   | **Other** |   |   | **Adjustments** |   |   | **Consolidated** |   |
|                                                   |   | **(In                  millions)**                |   |
| **September                  30, 2007**                |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |
| External                  revenues                     |   | $                                                                                                                            | 2,520  |   |            | $      | 370    |             |   | $      | 723       |   |   | $               | 9      |   |   | $ | 19 |   |   | $ | 3,641 |   |
| Internal                  revenues                     |   |                                                                                                                         | -      |   |            |   | 806    |             |   |   | -         |   |   |            | -      |   |   |   | (806 | ) |   |   | - |   |
| Total                  revenues                        |   |                                                                                                                         | 2,520  |   |            |   | 1,176  |             |   |   | 723       |   |   |            | 9      |   |   |   | (787 | ) |   |   | 3,641 |   |
| Depreciation                  and amortization         |   |                                                                                                                         | 299    |   |            |   | 51     |             |   |   | (16       | )      |   |            | 1      |   |   |   | 8 |   |   |   | 343 |   |
| Investment                  income                     |   |                                                                                                                         | 58     |   |            |   | 5      |             |   |   | -         |   |   |            | 1      |   |   |   | (34 | ) |   |   | 30 |   |
| Net                  interest                  charges |   |                                                                                                                         | 117    |   |            |   | 39     |             |   |   | -         |   |   |            | 1      |   |   |   | 37 |   |   |   | 194 |   |
| Income                  taxes                          |   |                                                                                                                         | 175    |   |            |   | 99     |             |   |   | 11        |   |   |            | (2     | )      |   |   | (10 | ) |   |   | 273 |   |
| Net                  income                            |   |                                                                                                                         | 269    |   |            |   | 148    |             |   |   | 16        |   |   |            | 6      |   |   |   | (26 | ) |   |   | 413 |   |
| Total                  assets                          |   |                                                                                                                         | 23,308 |   |            |   | 7,182  |             |   |   | 268       |   |   |            | 232    |   |   |   | 663 |   |   |   | 31,653 |   |
| Total                  goodwill                        |   |                                                                                                                         | 5,585  |   |            |   | 24     |             |   |   | -         |   |   |            | -      |   |   |   | - |   |   |   | 5,609 |   |
| Property                  additions                    |   |                                                                                                                         | 209    |   |            |   | 199    |             |   |   | -         |   |   |            | 1      |   |   |   | 21 |   |   |   | 430 |   |
|                                                   |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| **September                  30, 2006**                |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| External                  revenues                     |   | $                                                                                                                            | 2,306  |   |            | $      | 353    |             |   | $      | 690       |   |   | $               | 24     |   |   | $ | (9 | ) |   | $ | 3,364 |   |
| Internal                  revenues                     |   |                                                                                                                         | -      |   |            |   | 762    |             |   |   | -         |   |   |            | -      |   |   |   | (762 | ) |   |   | - |   |
| Total                  revenues                        |   |                                                                                                                         | 2,306  |   |            |   | 1,115  |             |   |   | 690       |   |   |            | 24     |   |   |   | (771 | ) |   |   | 3,364 |   |
| Depreciation                  and amortization         |   |                                                                                                                         | 227    |   |            |   | 49     |             |   |   | (40       | )      |   |            | 1      |   |   |   | 6 |   |   |   | 243 |   |
| Investment                  income                     |   |                                                                                                                         | 80     |   |            |   | 18     |             |   |   | -         |   |   |            | -      |   |   |   | (52 | ) |   |   | 46 |   |
| Net                  interest                  charges |   |                                                                                                                         | 107    |   |            |   | 49     |             |   |   | -         |   |   |            | 2      |   |   |   | 22 |   |   |   | 180 |   |
| Income                  taxes                          |   |                                                                                                                         | 187    |   |            |   | 112    |             |   |   | 18        |   |   |            | (14    | )      |   |   | (30 | ) |   |   | 273 |   |
| Income                  from                           |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| continuing                  operations                 |   |                                                                                                                         | 280    |   |            |   | 169    |             |   |   | 27        |   |   |            | 25     |   |   |   | (49 | ) |   |   | 452 |   |
| Discontinued                  operations               |   |                                                                                                                         | -      |   |            |   | -      |             |   |   | -         |   |   |            | 2      |   |   |   | - |   |   |   | 2 |   |
| Net                  income                            |   |                                                                                                                         | 280    |   |            |   | 169    |             |   |   | 27        |   |   |            | 27     |   |   |   | (49 | ) |   |   | 454 |   |
| Total                  assets                          |   |                                                                                                                         | 23,940 |   |            |   | 6,822  |             |   |   | 240       |   |   |            | 321    |   |   |   | 839 |   |   |   | 32,162 |   |
| Total                  goodwill                        |   |                                                                                                                         | 5,911  |   |            |   | 24     |             |   |   | -         |   |   |            | -      |   |   |   | - |   |   |   | 5,935 |   |
| Property                  additions                    |   |                                                                                                                         | 119    |   |            |   | 126    |             |   |   | -         |   |   |            | -      |   |   |   | 6 |   |   |   | 251 |   |
|                                                   |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| **Nine                  Months Ended**                 |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| **September                  30, 2007**                |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| External                  revenues                     |   | $                                                                                                                            | 6,655  |   |            | $      | 1,089  |             |   | $      | 1,968     |   |   | $               | 29     |   |   | $ | (18 | ) |   | $ | 9,723 |   |
| Internal                  revenues                     |   |                                                                                                                         | -      |   |            |   | 2,210  |             |   |   | -         |   |   |            | -      |   |   |   | (2,210 | ) |   |   | - |   |
| Total                  revenues                        |   |                                                                                                                         | 6,655  |   |            |   | 3,299  |             |   |   | 1,968     |   |   |            | 29     |   |   |   | (2,228 | ) |   |   | 9,723 |   |
| Depreciation                  and amortization         |   |                                                                                                                         | 767    |   |            |   | 153    |             |   |   | (80       | )      |   |            | 3      |   |   |   | 20 |   |   |   | 863 |   |
| Investment                  income                     |   |                                                                                                                         | 190    |   |            |   | 13     |             |   |   | 1         |   |   |            | 1      |   |   |   | (112 | ) |   |   | 93 |   |
| Net                  interest                  charges |   |                                                                                                                         | 340    |   |            |   | 131    |             |   |   | 1         |   |   |            | 3      |   |   |   | 97 |   |   |   | 572 |   |
| Income                  taxes                          |   |                                                                                                                         | 464    |   |            |   | 259    |             |   |   | 46        |   |   |            | -      |   |   |   | (74 | ) |   |   | 695 |   |
| Net                  income                            |   |                                                                                                                         | 695    |   |            |   | 388    |             |   |   | 69        |   |   |            | 13     |   |   |   | (124 | ) |   |   | 1,041 |   |
| Total                  assets                          |   |                                                                                                                         | 23,308 |   |            |   | 7,182  |             |   |   | 268       |   |   |            | 232    |   |   |   | 663 |   |   |   | 31,653 |   |
| Total                  goodwill                        |   |                                                                                                                         | 5,585  |   |            |   | 24     |             |   |   | -         |   |   |            | -      |   |   |   | - |   |   |   | 5,609 |   |
| Property                  additions                    |   |                                                                                                                         | 609    |   |            |   | 462    |             |   |   | -         |   |   |            | 4      |   |   |   | 52 |   |   |   | 1,127 |   |
|                                                   |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| **September                  30, 2006**                |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| External                  revenues                     |   | $                                                                                                                            | 5,876  |   |            | $      | 1,077  |             |   | $      | 1,808     |   |   | $               | 92     |   |   | $ | (32 | ) |   | $ | 8,821 |   |
| Internal                  revenues                     |   |                                                                                                                         | 14     |   |            |   | 1,997  |             |   |   | -         |   |   |            | -      |   |   |   | (2,011 | ) |   |   | - |   |
| Total                  revenues                        |   |                                                                                                                         | 5,890  |   |            |   | 3,074  |             |   |   | 1,808     |   |   |            | 92     |   |   |   | (2,043 | ) |   |   | 8,821 |   |
| Depreciation                  and amortization         |   |                                                                                                                         | 657    |   |            |   | 143    |             |   |   | (89       | )      |   |            | 3      |   |   |   | 17 |   |   |   | 731 |   |
| Investment                  income                     |   |                                                                                                                         | 244    |   |            |   | 35     |             |   |   | -         |   |   |            | 1      |   |   |   | (160 | ) |   |   | 120 |   |
| Net                  interest                  charges |   |                                                                                                                         | 308    |   |            |   | 139    |             |   |   | 1         |   |   |            | 5      |   |   |   | 60 |   |   |   | 513 |   |
| Income                  taxes                          |   |                                                                                                                         | 468    |   |            |   | 201    |             |   |   | 58        |   |   |            | (17    | )      |   |   | (85 | ) |   |   | 625 |   |
| Income                  from                           |   |                                                                                                                         |   |   |            |   |   |             |   |   |      |   |   |            |   |   |   |   |   |   |   |   |   |   |
| continuing                  operations                 |   |                                                                                                                         | 702    |   |            |   | 302    |             |   |   | 88        |   |   |            | 30     |   |   |   | (139 | ) |   |   | 983 |   |
| Discontinued                  operations               |   |                                                                                                                         | -      |   |            |   | -      |             |   |   | -         |   |   |            | (4     | )      |   |   | - |   |   |   | (4 | ) |
| Net                  income                            |   |                                                                                                                         | 702    |   |            |   | 302    |             |   |   | 88        |   |   |            | 26     |   |   |   | (139 | ) |   |   | 979 |   |
| Total                  assets                          |   |                                                                                                                         | 23,940 |   |            |   | 6,822  |             |   |   | 240       |   |   |            | 321    |   |   |   | 839 |   |   |   | 32,162 |   |
| Total                  goodwill                        |   |                                                                                                                         | 5,911  |   |            |   | 24     |             |   |   | -         |   |   |            | -      |   |   |   | - |   |   |   | 5,935 |   |
| Property                  additions                    |   |                                                                                                                         | 489    |   |            |   | 473    |             |   |   | -         |   |   |            | -      |   |   |   | 28 |   |   |   | 990 |   |

----

**15.  SUPPLEMENTAL      GUARANTOR INFORMATION**

----

| **FIRSTENERGY                SOLUTIONS CORP.**               |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATING                STATEMENTS OF INCOME**                  |   |
| **(Unaudited)**                                              |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **For                the Three Months Ended September 30, 2007**                                                                   |   | **FES** |   |   | **FGCO** |   |   | **NGC** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                                                                               |   | ***(In                thousands)***          |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES**                                                                                                                       |   | $ | 1,180,449 |   |   | $ | 496,204 |   |   | $ | 280,072 |   |   | $ | (785,817 | ) |   | $ | 1,170,908 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                                                                                                                               |   |   | 10,944 |   |   |   | 261,759 |   |   |   | 29,083 |   |   |   | - |   |   |   | 301,786 |   |
| Purchased                power from non-affiliates                                                                                 |   |   | 228,755 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 228,755 |   |
| Purchased                power from affiliates                                                                                     |   |   | 774,873 |   |   |   | 57,927 |   |   |   | 15,525 |   |   |   | (785,817 | ) |   |   | 62,508 |   |
| Other                operating expenses                                                                                            |   |   | 41,828 |   |   |   | 75,985 |   |   |   | 117,220 |   |   |   | - |   |   |   | 235,033 |   |
| Provision                for                depreciation                                                                           |   |   | 650 |   |   |   | 24,669 |   |   |   | 23,181 |   |   |   | - |   |   |   | 48,500 |   |
| General                taxes                                                                                                       |   |   | 5,406 |   |   |   | 11,788 |   |   |   | 5,048 |   |   |   | - |   |   |   | 22,242 |   |
| Total                expenses                                                                                                      |   |   | 1,062,456 |   |   |   | 432,128 |   |   |   | 190,057 |   |   |   | (785,817 | ) |   |   | 898,824 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                INCOME**                                                                                                |   |   | 117,993 |   |   |   | 64,076 |   |   |   | 90,015 |   |   |   | - |   |   |   | 272,084 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                INCOME (EXPENSE):**                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income (expense), including                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                income                from equity investees                                                                     |   |   | 82,870 |   |   |   | 2,375 |   |   |   | 3,935 |   |   |   | (76,525 | ) |   |   | 12,655 |   |
| Interest                expense to affiliates                                                                                 |   |   | (676 | ) |   |   | (4,769 | ) |   |   | (4,196 | ) |   |   | - |   |   |   | (9,641 | ) |
| Interest                expense - other                                                                                            |   |   | (808 | ) |   |   | (21,274 | ) |   |   | (9,712 | ) |   |   | - |   |   |   | (31,794 | ) |
| Capitalized                interest                                                                                                |   |   | 9 |   |   |   | 3,889 |   |   |   | 1,233 |   |   |   | - |   |   |   | 5,131 |   |
| Total                other                income (expense)                                                                         |   |   | 81,395 |   |   |   | (19,779 | ) |   |   | (8,740 | ) |   |   | (76,525 | ) |   |   | (23,649 | ) |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                BEFORE INCOME TAXES**                                                                                      |   |   | 199,388 |   |   |   | 44,297 |   |   |   | 81,275 |   |   |   | (76,525 | ) |   |   | 248,435 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                TAXES**                                                                                                    |   |   | 44,624 |   |   |   | 19,850 |   |   |   | 29,197 |   |   |   | - |   |   |   | 93,671 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME**                                                                                                      |   | $ | 154,764 |   |   | $ | 24,447 |   |   | $ | 52,078 |   |   | $ | (76,525 | ) |   | $ | 154,764 |   |

----

| **FIRSTENERGY                SOLUTIONS CORP.**               |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATING                STATEMENTS OF INCOME**                  |   |
| **(Unaudited)**                                              |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **For                the Three Months Ended September 30, 2006**                                                                   |   | **FES** |   |   | **FGCO** |   |   | **NGC** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                                                                               |   | ***(In                thousands)***          |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES**                                                                                                                       |   | $ | 1,120,844 |   |   | $ | 466,628 |   |   | $ | 246,039 |   |   | $ | (723,931 | ) |   | $ | 1,109,580 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                                                                                                                               |   |   | 12,632 |   |   |   | 273,398 |   |   |   | 29,491 |   |   |   | - |   |   |   | 315,521 |   |
| Purchased                power from non-affiliates                                                                                 |   |   | 173,620 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 173,620 |   |
| Purchased                power from affiliates                                                                                     |   |   | 711,298 |   |   |   | 52,062 |   |   |   | 16,218 |   |   |   | (723,931 | ) |   |   | 55,647 |   |
| Other                operating expenses                                                                                            |   |   | 42,115 |   |   |   | 48,728 |   |   |   | 107,873 |   |   |   | - |   |   |   | 198,716 |   |
| Provision                for                depreciation                                                                           |   |   | 456 |   |   |   | 24,656 |   |   |   | 21,782 |   |   |   | - |   |   |   | 46,894 |   |
| General                taxes                                                                                                       |   |   | 3,223 |   |   |   | 8,931 |   |   |   | 5,455 |   |   |   | - |   |   |   | 17,609 |   |
| Total                expenses                                                                                                      |   |   | 943,344 |   |   |   | 407,775 |   |   |   | 180,819 |   |   |   | (723,931 | ) |   |   | 808,007 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                INCOME**                                                                                                |   |   | 177,500 |   |   |   | 58,853 |   |   |   | 65,220 |   |   |   | - |   |   |   | 301,573 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                INCOME (EXPENSE):**                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income (expense), including                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                income                from equity investees                                                                     |   |   | 69,102 |   |   |   | 1,694 |   |   |   | 18,089 |   |   |   | (61,223 | ) |   |   | 27,662 |   |
| Interest                expense to affiliates                                                                                 |   |   | - |   |   |   | (29,988 | ) |   |   | (11,428 | ) |   |   | - |   |   |   | (41,416 | ) |
| Interest                expense - other                                                                                            |   |   | (207 | ) |   |   | (2,749 | ) |   |   | (4,958 | ) |   |   | - |   |   |   | (7,914 | ) |
| Capitalized                interest                                                                                                |   |   | 5 |   |   |   | 1,217 |   |   |   | 1,167 |   |   |   | - |   |   |   | 2,389 |   |
| Total                other                income (expense)                                                                         |   |   | 68,900 |   |   |   | (29,826 | ) |   |   | 2,870 |   |   |   | (61,223 | ) |   |   | (19,279 | ) |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                BEFORE INCOME TAXES**                                                                                      |   |   | 246,400 |   |   |   | 29,027 |   |   |   | 68,090 |   |   |   | (61,223 | ) |   |   | 282,294 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                TAXES**                                                                                                    |   |   | 70,281 |   |   |   | 10,134 |   |   |   | 25,760 |   |   |   | - |   |   |   | 106,175 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME**                                                                                                      |   | $ | 176,119 |   |   | $ | 18,893 |   |   | $ | 42,330 |   |   | $ | (61,223 | ) |   | $ | 176,119 |   |

----

| **FIRSTENERGY                SOLUTIONS CORP.**               |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATING                STATEMENTS OF INCOME**                  |   |
| **(Unaudited)**                                              |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **For                the Nine Months Ended September 30, 2007**                                                                    |   | **FES** |   |   | **FGCO** |   |   | **NGC** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                                                                               |   | ***(In                thousands)***             |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES**                                                                                                                       |   | $ | 3,274,694 |   |   | $ | 1,501,112 |   |   | $ | 793,255 |   |   | $ | (2,311,129 | ) |   | $ | 3,257,932 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                                                                                                                               |   |   | 20,824 |   |   |   | 698,643 |   |   |   | 84,734 |   |   |   | - |   |   |   | 804,201 |   |
| Purchased                power from non-affiliates                                                                                 |   |   | 577,831 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 577,831 |   |
| Purchased                power from affiliates                                                                                     |   |   | 2,290,305 |   |   |   | 176,654 |   |   |   | 53,746 |   |   |   | (2,311,129 | ) |   |   | 209,576 |   |
| Other                operating expenses                                                                                            |   |   | 123,596 |   |   |   | 240,774 |   |   |   | 367,404 |   |   |   | - |   |   |   | 731,774 |   |
| Provision                for                depreciation                                                                           |   |   | 1,572 |   |   |   | 74,844 |   |   |   | 68,614 |   |   |   | - |   |   |   | 145,030 |   |
| General                taxes                                                                                                       |   |   | 15,942 |   |   |   | 31,406 |   |   |   | 17,522 |   |   |   | - |   |   |   | 64,870 |   |
| Total                expenses                                                                                                      |   |   | 3,030,070 |   |   |   | 1,222,321 |   |   |   | 592,020 |   |   |   | (2,311,129 | ) |   |   | 2,533,282 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                INCOME**                                                                                                |   |   | 244,624 |   |   |   | 278,791 |   |   |   | 201,235 |   |   |   | - |   |   |   | 724,650 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                INCOME (EXPENSE):**                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income (expense), including                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                income                from equity investees                                                                     |   |   | 271,599 |   |   |   | 2,669 |   |   |   | 13,350 |   |   |   | (239,862 | ) |   |   | 47,756 |   |
| Interest                expense to affiliates                                                                                 |   |   | (676 | ) |   |   | (47,090 | ) |   |   | (14,138 | ) |   |   | - |   |   |   | (61,904 | ) |
| Interest                expense - other                                                                                            |   |   | (7,966 | ) |   |   | (34,150 | ) |   |   | (28,729 | ) |   |   | - |   |   |   | (70,845 | ) |
| Capitalized                interest                                                                                                |   |   | 20 |   |   |   | 9,044 |   |   |   | 3,699 |   |   |   | - |   |   |   | 12,763 |   |
| Total                other                income (expense)                                                                         |   |   | 262,977 |   |   |   | (69,527 | ) |   |   | (25,818 | ) |   |   | (239,862 | ) |   |   | (72,230 | ) |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                BEFORE INCOME TAXES**                                                                                      |   |   | 507,601 |   |   |   | 209,264 |   |   |   | 175,417 |   |   |   | (239,862 | ) |   |   | 652,420 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                TAXES**                                                                                                    |   |   | 98,917 |   |   |   | 82,031 |   |   |   | 62,788 |   |   |   | - |   |   |   | 243,736 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME**                                                                                                      |   | $ | 408,684 |   |   | $ | 127,233 |   |   | $ | 112,629 |   |   | $ | (239,862 | ) |   | $ | 408,684 |   |

----

| **FIRSTENERGY                SOLUTIONS CORP.**               |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATING                STATEMENTS OF INCOME**                  |   |
| **(Unaudited)**                                              |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **For                the Nine Months Ended September 30, 2006**                                                                    |   | **FES** |   |   | **FGCO** |   |   | **NGC** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                                                                               |   | ***(In                thousands)***          |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES**                                                                                                                       |   | $ | 3,071,970 |   |   | $ | 1,336,076 |   |   | $ | 797,967 |   |   | $ | (2,145,891 | ) |   | $ | 3,060,122 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                                                                                                                               |   |   | 16,650 |   |   |   | 752,229 |   |   |   | 76,034 |   |   |   | - |   |   |   | 844,913 |   |
| Purchased                power from non-affiliates                                                                                 |   |   | 477,249 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 477,249 |   |
| Purchased                power from affiliates                                                                                     |   |   | 2,143,509 |   |   |   | 141,974 |   |   |   | 49,106 |   |   |   | (2,145,891 | ) |   |   | 188,698 |   |
| Other                operating expenses                                                                                            |   |   | 149,042 |   |   |   | 204,282 |   |   |   | 421,443 |   |   |   | - |   |   |   | 774,767 |   |
| Provision                for                depreciation                                                                           |   |   | 1,314 |   |   |   | 72,778 |   |   |   | 61,322 |   |   |   | - |   |   |   | 135,414 |   |
| General                taxes                                                                                                       |   |   | 9,268 |   |   |   | 29,536 |   |   |   | 16,746 |   |   |   | - |   |   |   | 55,550 |   |
| Total                expenses                                                                                                      |   |   | 2,797,032 |   |   |   | 1,200,799 |   |   |   | 624,651 |   |   |   | (2,145,891 | ) |   |   | 2,476,591 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                INCOME**                                                                                                |   |   | 274,938 |   |   |   | 135,277 |   |   |   | 173,316 |   |   |   | - |   |   |   | 583,531 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                INCOME (EXPENSE):**                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income (expense), including                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                income                from equity investees                                                                     |   |   | 146,375 |   |   |   | (3,052 | ) |   |   | 35,518 |   |   |   | (133,998 | ) |   |   | 44,843 |   |
| Interest                expense to affiliates                                                                                 |   |   | (241 | ) |   |   | (87,318 | ) |   |   | (35,105 | ) |   |   | - |   |   |   | (122,664 | ) |
| Interest                expense - other                                                                                            |   |   | (564 | ) |   |   | (5,650 | ) |   |   | (11,666 | ) |   |   | - |   |   |   | (17,880 | ) |
| Capitalized                interest                                                                                                |   |   | (3 | ) |   |   | 3,290 |   |   |   | 5,411 |   |   |   | - |   |   |   | 8,698 |   |
| Total                other                income (expense)                                                                         |   |   | 145,567 |   |   |   | (92,730 | ) |   |   | (5,842 | ) |   |   | (133,998 | ) |   |   | (87,003 | ) |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                BEFORE INCOME TAXES**                                                                                      |   |   | 420,505 |   |   |   | 42,547 |   |   |   | 167,474 |   |   |   | (133,998 | ) |   |   | 496,528 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                TAXES**                                                                                                    |   |   | 108,549 |   |   |   | 13,296 |   |   |   | 62,727 |   |   |   | - |   |   |   | 184,572 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME**                                                                                                      |   | $ | 311,956 |   |   | $ | 29,251 |   |   | $ | 104,747 |   |   | $ | (133,998 | ) |   | $ | 311,956 |   |

----

| **FIRSTENERGY                SOLUTIONS CORP.**                |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATING                BALANCE SHEETS**               |   |
| **(Unaudited)**                                               |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **As                of                September 30, 2007**                                                                          |   | **FES** |   |   | **FGCO** |   |   | **NGC** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                                                                                |   | ***(In                thousands)***             |   |
| **ASSETS**                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CURRENT                ASSETS:**                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and cash                equivalents                                                                             |   | $ | 2 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 2 |   |
| Receivables-                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customers                                                                                                                           |   |   | 144,443 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 144,443 |   |
| Associated                companies                                                                                                 |   |   | 282,118 |   |   |   | 169,108 |   |   |   | 113,936 |   |   |   | (279,700 | ) |   |   | 285,462 |   |
| Other                                                                                                                               |   |   | 4,862 |   |   |   | 554 |   |   |   | - |   |   |   | - |   |   |   | 5,416 |   |
| Notes                receivable from associated companies                                                                           |   |   | - |   |   |   | 242,612 |   |   |   | - |   |   |   | - |   |   |   | 242,612 |   |
| Materials                and                supplies, at average cost                                                               |   |   | 195 |   |   |   | 224,149 |   |   |   | 216,722 |   |   |   | - |   |   |   | 441,066 |   |
| Prepayments                and other                                                                                                |   |   | 67,892 |   |   |   | 13,693 |   |   |   | 2,240 |   |   |   | - |   |   |   | 83,825 |   |
|                                                                                                                                |   |   | 499,512 |   |   |   | 650,116 |   |   |   | 332,898 |   |   |   | (279,700 | ) |   |   | 1,202,826 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **PROPERTY,                PLANT AND EQUIPMENT:**                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In                service                                                                                                           |   |   | 25,171 |   |   |   | 5,023,255 |   |   |   | 3,530,969 |   |   |   | (395,817 | ) |   |   | 8,183,578 |   |
| Less                -                Accumulated provision for depreciation                                                         |   |   | 6,807 |   |   |   | 2,539,192 |   |   |   | 1,476,051 |   |   |   | (169,154 | ) |   |   | 3,852,896 |   |
|                                                                                                                                |   |   | 18,364 |   |   |   | 2,484,063 |   |   |   | 2,054,918 |   |   |   | (226,663 | ) |   |   | 4,330,682 |   |
| Construction                work in progress                                                                                        |   |   | 1,034 |   |   |   | 414,243 |   |   |   | 181,602 |   |   |   | - |   |   |   | 596,879 |   |
|                                                                                                                                |   |   | 19,398 |   |   |   | 2,898,306 |   |   |   | 2,236,520 |   |   |   | (226,663 | ) |   |   | 4,927,561 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INVESTMENTS:**                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nuclear                plant                decommissioning trusts                                                                  |   |   | - |   |   |   | - |   |   |   | 1,342,083 |   |   |   | - |   |   |   | 1,342,083 |   |
| Long-term                notes receivable from associated companies                                                                 |   |   | - |   |   |   | - |   |   |   | 62,900 |   |   |   | - |   |   |   | 62,900 |   |
| Investment                in                associated companies                                                                    |   |   | 2,462,960 |   |   |   | - |   |   |   | - |   |   |   | (2,462,960 | ) |   |   | - |   |
| Other                                                                                                                               |   |   | 5,315 |   |   |   | 34,447 |   |   |   | 202 |   |   |   | - |   |   |   | 39,964 |   |
|                                                                                                                                |   |   | 2,468,275 |   |   |   | 34,447 |   |   |   | 1,405,185 |   |   |   | (2,462,960 | ) |   |   | 1,444,947 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **DEFERRED                CHARGES AND OTHER ASSETS:**                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated                deferred income taxes                                                                                    |   |   | 28,756 |   |   |   | 403,890 |   |   |   | - |   |   |   | (192,464 | ) |   |   | 240,182 |   |
| Goodwill                                                                                                                            |   |   | 24,248 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24,248 |   |
| Property                taxes                                                                                                       |   |   | - |   |   |   | 20,946 |   |   |   | 23,165 |   |   |   | - |   |   |   | 44,111 |   |
| Pension                assets                                                                                                       |   |   | 1,154 |   |   |   | 8,295 |   |   |   | - |   |   |   | - |   |   |   | 9,449 |   |
| Other                                                                                                                               |   |   | 33,049 |   |   |   | 32,477 |   |   |   | 5,112 |   |   |   | - |   |   |   | 70,638 |   |
|                                                                                                                                |   |   | 87,207 |   |   |   | 465,608 |   |   |   | 28,277 |   |   |   | (192,464 | ) |   |   | 388,628 |   |
|                                                                                                                                |   | $ | 3,074,392 |   |   | $ | 4,048,477 |   |   | $ | 4,002,880 |   |   | $ | (3,161,787 | ) |   | $ | 7,963,962 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **LIABILITIES                AND CAPITALIZATION**                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CURRENT                LIABILITIES:**                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currently                payable long-term debt                                                                                     |   | $ | - |   |   | $ | 624,517 |   |   | $ | 861,265 |   |   | $ | (16,061 | ) |   | $ | 1,469,721 |   |
| Notes                payable-                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Associated                companies                                                                                                 |   |   | 223,942 |   |   |   | - |   |   |   | 13,128 |   |   |   | - |   |   |   | 237,070 |   |
| Other                                                                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Accounts                payable-                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Associated                companies                                                                                                 |   |   | 279,976 |   |   |   | 158,500 |   |   |   | 273,919 |   |   |   | (279,700 | ) |   |   | 432,695 |   |
| Other                                                                                                                               |   |   | 65,782 |   |   |   | 112,038 |   |   |   | - |   |   |   | - |   |   |   | 177,820 |   |
| Accrued                taxes                                                                                                        |   |   | 44,995 |   |   |   | 461,635 |   |   |   | 30,430 |   |   |   | - |   |   |   | 537,060 |   |
| Other                                                                                                                               |   |   | 60,252 |   |   |   | 59,770 |   |   |   | 9,731 |   |   |   | 33,486 |   |   |   | 163,239 |   |
|                                                                                                                                |   |   | 674,947 |   |   |   | 1,416,460 |   |   |   | 1,188,473 |   |   |   | (262,275 | ) |   |   | 3,017,605 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CAPITALIZATION:**                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                stockholder's equity                                                                                          |   |   | 2,369,019 |   |   |   | 905,100 |   |   |   | 1,557,860 |   |   |   | (2,462,960 | ) |   |   | 2,369,019 |   |
| Long-term                debt                                                                                                       |   |   | - |   |   |   | 1,575,653 |   |   |   | 242,400 |   |   |   | (1,312,857 | ) |   |   | 505,196 |   |
|                                                                                                                                |   |   | 2,369,019 |   |   |   | 2,480,753 |   |   |   | 1,800,260 |   |   |   | (3,775,817 | ) |   |   | 2,874,215 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NONCURRENT                LIABILITIES:**                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred                gain                on sale and leaseback transaction                                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,068,769 |   |   |   | 1,068,769 |   |
| Accumulated                deferred income taxes                                                                                    |   |   | - |   |   |   | - |   |   |   | 192,464 |   |   |   | (192,464 | ) |   |   | - |   |
| Accumulated                deferred investment tax credits                                                                          |   |   | - |   |   |   | 36,764 |   |   |   | 25,511 |   |   |   | - |   |   |   | 62,275 |   |
| Asset                retirement obligations                                                                                         |   |   | - |   |   |   | 24,350 |   |   |   | 773,007 |   |   |   | - |   |   |   | 797,357 |   |
| Retirement                benefits                                                                                                  |   |   | 7,843 |   |   |   | 45,662 |   |   |   | - |   |   |   | - |   |   |   | 53,505 |   |
| Property                taxes                                                                                                       |   |   | - |   |   |   | 21,268 |   |   |   | 23,165 |   |   |   | - |   |   |   | 44,433 |   |
| Other                                                                                                                               |   |   | 22,583 |   |   |   | 23,220 |   |   |   | - |   |   |   | - |   |   |   | 45,803 |   |
|                                                                                                                                |   |   | 30,426 |   |   |   | 151,264 |   |   |   | 1,014,147 |   |   |   | 876,305 |   |   |   | 2,072,142 |   |
|                                                                                                                                |   | $ | 3,074,392 |   |   | $ | 4,048,477 |   |   | $ | 4,002,880 |   |   | $ | (3,161,787 | ) |   | $ | 7,963,962 |   |

----

| **FIRSTENERGY                SOLUTIONS CORP.**                |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATING                BALANCE SHEETS**               |   |
| **(Unaudited)**                                               |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **As                of                December 31, 2006**                                                                           |   | **FES** |   |   | **FGCO** |   |   | **NGC** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                                                                                |   | ***(In                thousands)***             |   |
| **ASSETS**                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CURRENT                ASSETS:**                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and cash                equivalents                                                                             |   | $ | 2 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 2 |   |
| Receivables-                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customers                                                                                                                           |   |   | 129,843 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 129,843 |   |
| Associated                companies                                                                                                 |   |   | 201,281 |   |   |   | 160,965 |   |   |   | 69,751 |   |   |   | (196,465 | ) |   |   | 235,532 |   |
| Other                                                                                                                               |   |   | 2,383 |   |   |   | 1,702 |   |   |   | - |   |   |   | - |   |   |   | 4,085 |   |
| Notes                receivable from associated companies                                                                           |   |   | 460,023 |   |   |   | - |   |   |   | 292,896 |   |   |   | - |   |   |   | 752,919 |   |
| Materials                and                supplies, at average cost                                                               |   |   | 195 |   |   |   | 238,936 |   |   |   | 221,108 |   |   |   | - |   |   |   | 460,239 |   |
| Prepayments                and other                                                                                                |   |   | 45,314 |   |   |   | 10,389 |   |   |   | 1,843 |   |   |   | - |   |   |   | 57,546 |   |
|                                                                                                                                |   |   | 839,041 |   |   |   | 411,992 |   |   |   | 585,598 |   |   |   | (196,465 | ) |   |   | 1,640,166 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **PROPERTY,                PLANT AND EQUIPMENT:**                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In                service                                                                                                           |   |   | 16,261 |   |   |   | 4,960,453 |   |   |   | 3,378,630 |   |   |   | - |   |   |   | 8,355,344 |   |
| Less                -                Accumulated provision for depreciation                                                         |   |   | 5,738 |   |   |   | 2,477,004 |   |   |   | 1,335,526 |   |   |   | - |   |   |   | 3,818,268 |   |
|                                                                                                                                |   |   | 10,523 |   |   |   | 2,483,449 |   |   |   | 2,043,104 |   |   |   | - |   |   |   | 4,537,076 |   |
| Construction                work in progress                                                                                        |   |   | 345 |   |   |   | 170,063 |   |   |   | 169,478 |   |   |   | - |   |   |   | 339,886 |   |
|                                                                                                                                |   |   | 10,868 |   |   |   | 2,653,512 |   |   |   | 2,212,582 |   |   |   | - |   |   |   | 4,876,962 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INVESTMENTS:**                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nuclear                plant                decommissioning trusts                                                                  |   |   | - |   |   |   | - |   |   |   | 1,238,272 |   |   |   | - |   |   |   | 1,238,272 |   |
| Long-term                notes receivable from associated companies                                                                 |   |   | - |   |   |   | - |   |   |   | 62,900 |   |   |   | - |   |   |   | 62,900 |   |
| Investment                in                associated companies                                                                    |   |   | 1,471,184 |   |   |   | - |   |   |   | - |   |   |   | (1,471,184 | ) |   |   | - |   |
| Other                                                                                                                               |   |   | 6,474 |   |   |   | 65,833 |   |   |   | 202 |   |   |   | - |   |   |   | 72,509 |   |
|                                                                                                                                |   |   | 1,477,658 |   |   |   | 65,833 |   |   |   | 1,301,374 |   |   |   | (1,471,184 | ) |   |   | 1,373,681 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **DEFERRED                CHARGES AND OTHER ASSETS:**                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                            |   |   | 24,248 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24,248 |   |
| Property                taxes                                                                                                       |   |   | - |   |   |   | 20,946 |   |   |   | 23,165 |   |   |   | - |   |   |   | 44,111 |   |
| Accumulated                deferred income taxes                                                                                    |   |   | 32,939 |   |   |   | - |   |   |   | - |   |   |   | (32,939 | ) |   |   | - |   |
| Other                                                                                                                               |   |   | 23,544 |   |   |   | 11,542 |   |   |   | 4,753 |   |   |   | - |   |   |   | 39,839 |   |
|                                                                                                                                |   |   | 80,731 |   |   |   | 32,488 |   |   |   | 27,918 |   |   |   | (32,939 | ) |   |   | 108,198 |   |
|                                                                                                                                |   | $ | 2,408,298 |   |   | $ | 3,163,825 |   |   | $ | 4,127,472 |   |   | $ | (1,700,588 | ) |   | $ | 7,999,007 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **LIABILITIES                AND CAPITALIZATION**                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CURRENT                LIABILITIES:**                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currently                payable long-term debt                                                                                     |   | $ | - |   |   | $ | 608,395 |   |   | $ | 861,265 |   |   | $ | - |   |   | $ | 1,469,660 |   |
| Notes                payable                to associated companies                                                                 |   |   | - |   |   |   | 1,022,197 |   |   |   | - |   |   |   | - |   |   |   | 1,022,197 |   |
| Accounts                payable-                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Associated                companies                                                                                                 |   |   | 375,328 |   |   |   | 11,964 |   |   |   | 365,222 |   |   |   | (196,465 | ) |   |   | 556,049 |   |
| Other                                                                                                                               |   |   | 32,864 |   |   |   | 103,767 |   |   |   | - |   |   |   | - |   |   |   | 136,631 |   |
| Accrued                taxes                                                                                                        |   |   | 54,537 |   |   |   | 32,028 |   |   |   | 26,666 |   |   |   | - |   |   |   | 113,231 |   |
| Other                                                                                                                               |   |   | 49,906 |   |   |   | 41,401 |   |   |   | 9,634 |   |   |   | - |   |   |   | 100,941 |   |
|                                                                                                                                |   |   | 512,635 |   |   |   | 1,819,752 |   |   |   | 1,262,787 |   |   |   | (196,465 | ) |   |   | 3,398,709 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CAPITALIZATION:**                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                stockholder's equity                                                                                          |   |   | 1,859,363 |   |   |   | 78,542 |   |   |   | 1,392,642 |   |   |   | (1,471,184 | ) |   |   | 1,859,363 |   |
| Long-term                debt                                                                                                       |   |   | - |   |   |   | 1,057,252 |   |   |   | 556,970 |   |   |   | - |   |   |   | 1,614,222 |   |
|                                                                                                                                |   |   | 1,859,363 |   |   |   | 1,135,794 |   |   |   | 1,949,612 |   |   |   | (1,471,184 | ) |   |   | 3,473,585 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NONCURRENT                LIABILITIES:**                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated                deferred income taxes                                                                                    |   |   | - |   |   |   | 25,293 |   |   |   | 129,095 |   |   |   | (32,939 | ) |   |   | 121,449 |   |
| Accumulated                deferred investment tax credits                                                                          |   |   | - |   |   |   | 38,894 |   |   |   | 26,857 |   |   |   | - |   |   |   | 65,751 |   |
| Asset                retirement obligations                                                                                         |   |   | - |   |   |   | 24,272 |   |   |   | 735,956 |   |   |   | - |   |   |   | 760,228 |   |
| Retirement                benefits                                                                                                  |   |   | 10,255 |   |   |   | 92,772 |   |   |   | - |   |   |   | - |   |   |   | 103,027 |   |
| Property                taxes                                                                                                       |   |   | - |   |   |   | 21,268 |   |   |   | 23,165 |   |   |   | - |   |   |   | 44,433 |   |
| Other                                                                                                                               |   |   | 26,045 |   |   |   | 5,780 |   |   |   | - |   |   |   | - |   |   |   | 31,825 |   |
|                                                                                                                                |   |   | 36,300 |   |   |   | 208,279 |   |   |   | 915,073 |   |   |   | (32,939 | ) |   |   | 1,126,713 |   |
|                                                                                                                                |   | $ | 2,408,298 |   |   | $ | 3,163,825 |   |   | $ | 4,127,472 |   |   | $ | (1,700,588 | ) |   | $ | 7,999,007 |   |

----

| **FIRSTENERGY                SOLUTIONS CORP.**               |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONDENSED                CONSOLIDATING STATEMENTS OF CASH FLOWS**                   |   |
| **(Unaudited)**                                              |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **For                the Nine Months Ended September 30, 2007**                                                                    |   | **FES** |   |   | **FGCO** |   |   | **NGC** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                                                                               |   | ***(In                thousands)***          |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                CASH PROVIDED FROM (USED FOR)**                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                ACTIVITIES**                                                                                            |   | $ | (17,080 | ) |   | $ | 350,927 |   |   | $ | 146,468 |   |   | $ | - |   |   | $ | 480,315 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| New                Financing-                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                debt                                                                                                      |   |   | - |   |   |   | 1,328,919 |   |   |   | - |   |   |   | (1,328,919 | ) |   |   | - |   |
| Equity                contribution from parent                                                                                     |   |   | 710,468 |   |   |   | 700,000 |   |   |   | 1,325 |   |   |   | (701,325 | ) |   |   | 710,468 |   |
| Short-term                borrowings, net                                                                                          |   |   | 223,942 |   |   |   | - |   |   |   | 13,128 |   |   |   | (237,070 | ) |   |   | - |   |
| Redemptions                and Repayments-                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                debt                                                                                                      |   |   | - |   |   |   | (795,019 | ) |   |   | (315,155 | ) |   |   | - |   |   |   | (1,110,174 | ) |
| Short-term                borrowings, net                                                                                          |   |   | - |   |   |   | (1,022,197 | ) |   |   | - |   |   |   | 237,070 |   |   |   | (785,127 | ) |
| Common                stock                                                                                                        |   |   | (600,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (600,000 | ) |
| Common                stock                dividend payments                                                                       |   |   | (67,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (67,000 | ) |
| Net                cash                provided from (used for) financing activities                                               |   |   | 267,410 |   |   |   | 211,703 |   |   |   | (300,702 | ) |   |   | (2,030,244 | ) |   |   | (1,851,833 | ) |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                additions                                                                                                  |   |   | (10,119 | ) |   |   | (332,499 | ) |   |   | (140,289 | ) |   |   | - |   |   |   | (482,907 | ) |
| Proceeds                from                asset sales                                                                            |   |   | - |   |   |   | 12,990 |   |   |   | - |   |   |   | - |   |   |   | 12,990 |   |
| Proceeds                from                sale and leaseback transaction                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,328,919 |   |   |   | 1,328,919 |   |
| Sales                of                investment securities held in trusts                                                        |   |   | - |   |   |   | - |   |   |   | 521,535 |   |   |   | - |   |   |   | 521,535 |   |
| Purchases                of                investment securities held in trusts                                                    |   |   | - |   |   |   | - |   |   |   | (521,535 | ) |   |   | - |   |   |   | (521,535 | ) |
| Loan                repayments from (loans to) associated companies, net                                                           |   |   | 460,023 |   |   |   | (242,612 | ) |   |   | 292,896 |   |   |   | - |   |   |   | 510,307 |   |
| Investment                in                subsidiary                                                                             |   |   | (701,325 | ) |   |   | - |   |   |   | - |   |   |   | 701,325 |   |   |   | - |   |
| Other                                                                                                                              |   |   | 1,091 |   |   |   | (509 | ) |   |   | 1,627 |   |   |   | - |   |   |   | 2,209 |   |
| Net                cash                provided from (used for) investing activities                                               |   |   | (250,330 | ) |   |   | (562,630 | ) |   |   | 154,234 |   |   |   | 2,030,244 |   |   |   | 1,371,518 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                change in                cash and cash equivalents                                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash                and cash                equivalents at beginning of period                                                     |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |
| Cash                and cash                equivalents at end of period                                                           |   | $ | 2 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 2 |   |

----

| **FIRSTENERGY                  SOLUTIONS CORP.**               |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONDENSED                  CONSOLIDATING STATEMENTS OF CASH FLOWS**                                  |   |
| **(Unaudited)**                                                |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **For                  the Nine Months Ended September 30, 2006**                                                                    |   | **FES** |   |   | **FGCO** |   |   | **NGC** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                                                                                 |   | ***(In                        thousands)***          |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  CASH PROVIDED FROM**                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                  ACTIVITIES**                                                                                            |   | $ | 145,390 |   |   | $ | 72,860 |   |   | $ | 239,855 |   |   | $ | - |   |   | $ | 458,105 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| New                  Financing-                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                  debt                                                                                                      |   |   | - |   |   |   | 146,704 |   |   |   | 105,241 |   |   |   | - |   |   |   | 251,945 |   |
| Short-term                  borrowings, net                                                                                          |   |   | - |   |   |   | 66,817 |   |   |   | - |   |   |   | - |   |   |   | 66,817 |   |
| Redemptions                and Reyapments-                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                  debt                                                                                                      |   |   | - |   |   |   | (146,740 | ) |   |   | (106,500 | ) |   |   | - |   |   |   | (253,240 | ) |
| Net                  cash                  provided from financing activities                                                        |   |   | - |   |   |   | 66,781 |   |   |   | (1,259 | ) |   |   | - |   |   |   | 65,522 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                  additions                                                                                                  |   |   | (699 | ) |   |   | (131,853 | ) |   |   | (294,746 | ) |   |   | - |   |   |   | (427,298 | ) |
| Proceeds                  from                  asset sales                                                                          |   |   | - |   |   |   | 20,437 |   |   |   | - |   |   |   | - |   |   |   | 20,437 |   |
| Sales                  of                  investment securities held in trusts                                                      |   |   | - |   |   |   | - |   |   |   | 886,863 |   |   |   | - |   |   |   | 886,863 |   |
| Purchases                  of                  investment securities held in trusts                                                  |   |   | - |   |   |   | - |   |   |   | (886,863 | ) |   |   | - |   |   |   | (886,863 | ) |
| Loans                  to                  associated companies                                                                      |   |   | (145,734 | ) |   |   | - |   |   |   | 57,442 |   |   |   | - |   |   |   | (88,292 | ) |
| Other                                                                                                                                |   |   | 1,043 |   |   |   | (28,225 | ) |   |   | (1,292 | ) |   |   | - |   |   |   | (28,474 | ) |
| Net                  cash used                  for investing activities                                                             |   |   | (145,390 | ) |   |   | (139,641 | ) |   |   | (238,596 | ) |   |   | - |   |   |   | (523,627 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  change in                  cash and cash equivalents                                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash                  and cash                  equivalents at beginning of period                                                   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |
| Cash                  and cash                  equivalents at end of period                                                         |   | $ | 2 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 2 |   |

----

| **FIRSTENERGY                  CORP.**                                                                                                                                                                          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF INCOME**                                                                                                                                                          |   |
| **(Unaudited)**                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                            |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                                                            |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                                                                                                                                                                            |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                            |   | ***(In                  millions, except per share amounts)*** |   |
| **REVENUES:**                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                  utilities                                                                                                                                                                             |   | $ | 3,260 |   |   | $ | 2,996 |   |   | $ | 8,685 |   |   | $ | 7,677 |   |
| Unregulated                  businesses                                                                                                                                                                         |   |   | 381 |   |   |   | 368 |   |   |   | 1,038 |   |   |   | 1,144 |   |
| Total                  revenues                  *                                                                                                                                                              |   |   | 3,641 |   |   |   | 3,364 |   |   |   | 9,723 |   |   |   | 8,821 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                  and                  purchased power                                                                                                                                                      |   |   | 1,495 |   |   |   | 1,317 |   |   |   | 3,801 |   |   |   | 3,306 |   |
| Other                  operating expenses                                                                                                                                                                       |   |   | 756 |   |   |   | 758 |   |   |   | 2,255 |   |   |   | 2,230 |   |
| Provision                  for                  depreciation                                                                                                                                                    |   |   | 162 |   |   |   | 153 |   |   |   | 477 |   |   |   | 445 |   |
| Amortization                  of regulatory assets                                                                                                                                                              |   |   | 288 |   |   |   | 243 |   |   |   | 785 |   |   |   | 665 |   |
| Deferral                  of                  new regulatory assets                                                                                                                                             |   |   | (107 | ) |   |   | (153 | ) |   |   | (399 | ) |   |   | (379 | ) |
| General                  taxes                                                                                                                                                                                  |   |   | 197 |   |   |   | 187 |   |   |   | 589 |   |   |   | 553 |   |
| Total                  expenses                                                                                                                                                                                 |   |   | 2,791 |   |   |   | 2,505 |   |   |   | 7,508 |   |   |   | 6,820 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                  INCOME**                                                                                                                                                                           |   |   | 850 |   |   |   | 859 |   |   |   | 2,215 |   |   |   | 2,001 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  INCOME (EXPENSE):**                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                  income                                                                                                                                                                              |   |   | 30 |   |   |   | 46 |   |   |   | 93 |   |   |   | 120 |   |
| Interest                  expense                                                                                                                                                                               |   |   | (203 | ) |   |   | (185 | ) |   |   | (593 | ) |   |   | (528 | ) |
| Capitalized                  interest                                                                                                                                                                           |   |   | 9 |   |   |   | 7 |   |   |   | 21 |   |   |   | 21 |   |
| Subsidiaries’                  preferred stock dividends                                                                                                                                                  |   |   | - |   |   |   | (2 | ) |   |   | - |   |   |   | (6 | ) |
| Total                  other                  expense                                                                                                                                                           |   |   | (164 | ) |   |   | (134 | ) |   |   | (479 | ) |   |   | (393 | ) |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  FROM CONTINUING OPERATIONS BEFORE INCOME TAXES**                                                                                                                                      |   |   | 686 |   |   |   | 725 |   |   |   | 1,736 |   |   |   | 1,608 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  TAXES**                                                                                                                                                                               |   |   | 273 |   |   |   | 273 |   |   |   | 695 |   |   |   | 625 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  FROM CONTINUING OPERATIONS**                                                                                                                                                          |   |   | 413 |   |   |   | 452 |   |   |   | 1,041 |   |   |   | 983 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                  operations (net of income tax benefits of                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $1                  million and                  $2 million in the three months and                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| nine                  months                  ended September 30, 2006, respectively) (Note 4)                                                                                                                  |   |   | - |   |   |   | 2 |   |   |   | - |   |   |   | (4 | ) |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                                                                 |   | $ | 413 |   |   | $ | 454 |   |   | $ | 1,041 |   |   | $ | 979 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **BASIC                  EARNINGS PER SHARE OF COMMON STOCK:**                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  from                  continuing operations                                                                                                                                             |   | $ | 1.36 |   |   | $ | 1.40 |   |   | $ | 3.39 |   |   | $ | 3.00 |   |
| Discontinued                  operations                                                                                                                                                                        |   |   | - |   |   |   | 0.01 |   |   |   | - |   |   |   | (0.01 | ) |
| Net                  earnings                  per basic share                                                                                                                                                  |   | $ | 1.36 |   |   | $ | 1.41 |   |   | $ | 3.39 |   |   | $ | 2.99 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **WEIGHTED                  AVERAGE NUMBER OF BASIC SHARES OUTSTANDING**                                                                                                                                        |   |   | 304 |   |   |   | 322 |   |   |   | 307 |   |   |   | 326 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **DILUTED                  EARNINGS PER SHARE OF COMMON STOCK:**                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  from                  continuing operations                                                                                                                                             |   | $ | 1.34 |   |   | $ | 1.39 |   |   | $ | 3.35 |   |   | $ | 2.98 |   |
| Discontinued                  operations                                                                                                                                                                        |   |   | - |   |   |   | 0.01 |   |   |   | - |   |   |   | (0.01 | ) |
| Net                  earnings                  per diluted share                                                                                                                                                |   | $ | 1.34 |   |   | $ | 1.40 |   |   | $ | 3.35 |   |   | $ | 2.97 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **WEIGHTED                  AVERAGE NUMBER OF DILUTED SHARES OUTSTANDING**                                                                                                                                      |   |   | 307 |   |   |   | 325 |   |   |   | 311 |   |   |   | 329 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **DIVIDENDS                  DECLARED PER SHARE OF COMMON STOCK**                                                                                                                                               |   | $ | 1.00 |   |   | $ | 0.45 |   |   | $ | 1.50 |   |   | $ | 1.35 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *                  Includes                  excise tax collections of $108 million in the third quarter of                  both 2007                  and 2006, and $308 million and $297 million in the nine |
|                     months ended September 2007 and 2006, respectively.                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to FirstEnergy                  Corp. are an integral part of these                  statements.      |

----

| **FIRSTENERGY                  CORP.**                                                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF COMPREHENSIVE INCOME**                                                                                                    |   |
| **(Unaudited)**                                                                                                                                                         |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                    |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                                                                                                                                    |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                    |   | ***(In                  millions)*** |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                         |   | $ | 413 |   |   | $ | 454 |   |   | $ | 1,041 |   |   | $ | 979 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  COMPREHENSIVE INCOME (LOSS):**                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                  and                  other postretirement benefits                                                                                             |   |   | (12 | ) |   |   | - |   |   |   | (34 | ) |   |   | - |   |
| Unrealized                  gain (loss) on derivative hedges                                                                                                            |   |   | (10 | ) |   |   | (28 | ) |   |   | 10 |   |   |   | 45 |   |
| Change                  in                  unrealized gain on available for sale securities                                                                            |   |   | 26 |   |   |   | 26 |   |   |   | 89 |   |   |   | 39 |   |
| Other                  comprehensive income (loss)                                                                                                                      |   |   | 4 |   |   |   | (2 | ) |   |   | 65 |   |   |   | 84 |   |
| Income                  tax                  expense (benefit) related to other                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   comprehensive                  income                                                                                                                       |   |   | - |   |   |   | (1 | ) |   |   | 19 |   |   |   | 30 |   |
| Other                  comprehensive income (loss), net of tax                                                                                                          |   |   | 4 |   |   |   | (1 | ) |   |   | 46 |   |   |   | 54 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **COMPREHENSIVE                  INCOME**                                                                                                                               |   | $ | 417 |   |   | $ | 453 |   |   | $ | 1,087 |   |   | $ | 1,033 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to FirstEnergy                  Corp. are an integral part of |   |   |   |   |   |
| these                  statements.                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **FIRSTENERGY                    CORP.**                                                                                                                                                               |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                   |   |   |   |   |   |   |
| **CONSOLIDATED                    BALANCE SHEETS**                                                                                                                                                     |   |
| **(Unaudited)**                                                                                                                                                                                        |   |
|                                                                                                                                                                                                   |   | **September                    30,** |   |   | **December                    31,** |   |
|                                                                                                                                                                                                   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                   |   | ***(In                    millions)*** |   |
| **ASSETS**                                                                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                                                                                   |   |   |   |   |   |   |
| **CURRENT                    ASSETS:**                                                                                                                                                                 |   |   |   |   |   |   |
| Cash                    and cash                    equivalents                                                                                                                                        |   | $ | 30 |   |   | $ | 90 |   |
| Receivables-                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Customers                    (less accumulated provisions of $38 million and                                                                                                                           |   |   |   |   |   |   |   |   |
| $43                    million,                    respectively, for uncollectible accounts)                                                                                                           |   |   | 1,432 |   |   |   | 1,135 |   |
| Other                    (less                    accumulated provisions of $22 million and                                                                                                            |   |   |   |   |   |   |   |   |
| $24                    million,                    respectively, for uncollectible accounts)                                                                                                           |   |   | 194 |   |   |   | 132 |   |
| Materials                    and                    supplies, at average cost                                                                                                                          |   |   | 543 |   |   |   | 577 |   |
| Prepayments                    and other                                                                                                                                                               |   |   | 207 |   |   |   | 149 |   |
|                                                                                                                                                                                                   |   |   | 2,406 |   |   |   | 2,083 |   |
| **PROPERTY,                    PLANT AND EQUIPMENT:**                                                                                                                                                  |   |   |   |   |   |   |   |   |
| In                    service                                                                                                                                                                          |   |   | 24,353 |   |   |   | 24,105 |   |
| Less                    -                    Accumulated provision for depreciation                                                                                                                    |   |   | 10,248 |   |   |   | 10,055 |   |
|                                                                                                                                                                                                   |   |   | 14,105 |   |   |   | 14,050 |   |
| Construction                    work in progress                                                                                                                                                       |   |   | 933 |   |   |   | 617 |   |
|                                                                                                                                                                                                   |   |   | 15,038 |   |   |   | 14,667 |   |
| **INVESTMENTS:**                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Nuclear                    plant                    decommissioning trusts                                                                                                                             |   |   | 2,140 |   |   |   | 1,977 |   |
| Investments                    in                    lease obligation bonds                                                                                                                            |   |   | 738 |   |   |   | 811 |   |
| Other                                                                                                                                                                                                  |   |   | 787 |   |   |   | 746 |   |
|                                                                                                                                                                                                   |   |   | 3,665 |   |   |   | 3,534 |   |
| **DEFERRED                    CHARGES AND OTHER ASSETS:**                                                                                                                                              |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                                               |   |   | 5,609 |   |   |   | 5,898 |   |
| Regulatory                    assets                                                                                                                                                                   |   |   | 4,047 |   |   |   | 4,441 |   |
| Pension                    assets                                                                                                                                                                      |   |   | 318 |   |   |   | - |   |
| Other                                                                                                                                                                                                  |   |   | 570 |   |   |   | 573 |   |
|                                                                                                                                                                                                   |   |   | 10,544 |   |   |   | 10,912 |   |
|                                                                                                                                                                                                   |   | $ | 31,653 |   |   | $ | 31,196 |   |
| **LIABILITIES                    AND CAPITALIZATION**                                                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| **CURRENT                    LIABILITIES:**                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Currently                    payable long-term debt                                                                                                                                                    |   | $ | 2,265 |   |   | $ | 1,867 |   |
| Short-term                    borrowings                                                                                                                                                               |   |   | 573 |   |   |   | 1,108 |   |
| Accounts                    payable                                                                                                                                                                    |   |   | 760 |   |   |   | 726 |   |
| Accrued                    taxes                                                                                                                                                                       |   |   | 671 |   |   |   | 598 |   |
| Accrued                    interest                                                                                                                                                                    |   |   | 215 |   |   |   | 111 |   |
| Other                                                                                                                                                                                                  |   |   | 894 |   |   |   | 845 |   |
|                                                                                                                                                                                                   |   |   | 5,378 |   |   |   | 5,255 |   |
| **CAPITALIZATION:**                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Common                    stockholders’ equity-                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Common                    stock,                    $.10 par value, authorized 375,000,000 shares-                                                                                                     |   |   |   |   |   |   |   |   |
| 304,835,407                    and 319,205,517 shares outstanding, respectively                                                                                                                        |   |   | 30 |   |   |   | 32 |   |
| Other                    paid-in                    capital                                                                                                                                            |   |   | 5,564 |   |   |   | 6,466 |   |
| Accumulated                    other comprehensive loss                                                                                                                                                |   |   | (213 | ) |   |   | (259 | ) |
| Retained                    earnings                                                                                                                                                                   |   |   | 3,387 |   |   |   | 2,806 |   |
| Unallocated                    employee stock ownership plan common stock-                                                                                                                             |   |   |   |   |   |   |   |   |
| 521,818                    shares                                                                                                                                                                      |   |   | - |   |   |   | (10 | ) |
| Total                    common                    stockholders' equity                                                                                                                                |   |   | 8,768 |   |   |   | 9,035 |   |
| Long-term                    debt                    and other long-term obligations                                                                                                                   |   |   | 8,617 |   |   |   | 8,535 |   |
|                                                                                                                                                                                                   |   |   | 17,385 |   |   |   | 17,570 |   |
| **NONCURRENT                    LIABILITIES:**                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Accumulated                    deferred income taxes                                                                                                                                                   |   |   | 2,317 |   |   |   | 2,740 |   |
| Asset                    retirement obligations                                                                                                                                                        |   |   | 1,247 |   |   |   | 1,190 |   |
| Deferred                    gain                    on sale and leaseback transaction                                                                                                                  |   |   | 1,069 |   |   |   | - |   |
| Power                    purchase                    contract loss liability                                                                                                                           |   |   | 872 |   |   |   | 1,182 |   |
| Retirement                    benefits                                                                                                                                                                 |   |   | 918 |   |   |   | 944 |   |
| Lease                    market                    valuation liability                                                                                                                                 |   |   | 684 |   |   |   | 767 |   |
| Other                                                                                                                                                                                                  |   |   | 1,783 |   |   |   | 1,548 |   |
|                                                                                                                                                                                                   |   |   | 8,890 |   |   |   | 8,371 |   |
| **COMMITMENTS,                    GUARANTEES AND CONTINGENCIES (Note 10)**                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                   |   | $ | 31,653 |   |   | $ | 31,196 |   |
|                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    FirstEnergy                    Corp. are an integral part of these |   |
| balance                    sheets.                                                                                                                                                                     |   |   |   |   |   |   |   |   |

----

| **FIRSTENERGY                  CORP.**                                                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                    |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                                                                                              |   |
| **(Unaudited)**                                                                                                                                                         |   |
|                                                                                                                                                                    |   |   |   |   |   |   |
|                                                                                                                                                                    |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                    |   | **September                  30,** |   |
|                                                                                                                                                                    |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                    |   | ***(In                  millions)*** |   |
|                                                                                                                                                                    |   |   |   |   |   |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                                                                              |   |   |   |   |   |   |
| Net                  income                                                                                                                                             |   | $ | 1,041 |   |   | $ | 979 |   |
| Adjustments                  to                  reconcile net income to net cash from operating                  activities-                                           |   |   |   |   |   |   |   |   |
| Provision                  for                  depreciation                                                                                                            |   |   | 477 |   |   |   | 445 |   |
| Amortization                  of regulatory assets                                                                                                                      |   |   | 785 |   |   |   | 665 |   |
| Deferral                  of                  new regulatory assets                                                                                                     |   |   | (399 | ) |   |   | (379 | ) |
| Nuclear                  fuel                  and lease amortization                                                                                                   |   |   | 75 |   |   |   | 67 |   |
| Deferred                  purchased power and other costs                                                                                                               |   |   | (265 | ) |   |   | (323 | ) |
| Deferred                  income taxes and investment tax credits, net                                                                                                  |   |   | (158 | ) |   |   | 36 |   |
| Investment                  impairment                                                                                                                                  |   |   | 16 |   |   |   | 13 |   |
| Deferred                  rents                  and lease market valuation liability                                                                                   |   |   | (41 | ) |   |   | (54 | ) |
| Accrued                  compensation and retirement benefits                                                                                                           |   |   | (50 | ) |   |   | 78 |   |
| Commodity                  derivative transactions, net                                                                                                                 |   |   | 5 |   |   |   | 28 |   |
| Gain                  on asset                  sales                                                                                                                   |   |   | (35 | ) |   |   | (38 | ) |
| Income                  from                  discontinued operations                                                                                                   |   |   | - |   |   |   | 4 |   |
| Cash                  collateral                                                                                                                                        |   |   | (50 | ) |   |   | (98 | ) |
| Pension                  trust                  contribution                                                                                                            |   |   | (300 | ) |   |   | - |   |
| Decrease                  (increase) in operating assets-                                                                                                               |   |   |   |   |   |   |   |   |
| Receivables                                                                                                                                                             |   |   | (329 | ) |   |   | (7 | ) |
| Materials                  and                  supplies                                                                                                                |   |   | 62 |   |   |   | (30 | ) |
| Prepayments                  and other current assets                                                                                                                   |   |   | (39 | ) |   |   | (49 | ) |
| Increase                  (decrease) in operating liabilities-                                                                                                          |   |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                                                                       |   |   | (15 | ) |   |   | (93 | ) |
| Accrued                  taxes                                                                                                                                          |   |   | 355 |   |   |   | (32 | ) |
| Accrued                  interest                                                                                                                                       |   |   | 104 |   |   |   | 104 |   |
| Electric                  service prepayment programs                                                                                                                   |   |   | (52 | ) |   |   | (45 | ) |
| Other                                                                                                                                                                   |   |   | (36 | ) |   |   | (28 | ) |
| Net                  cash                  provided from operating activities                                                                                           |   |   | 1,151 |   |   |   | 1,243 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                                                                              |   |   |   |   |   |   |   |   |
| New                  Financing-                                                                                                                                         |   |   |   |   |   |   |   |   |
| Long-term                  debt                                                                                                                                         |   |   | 1,100 |   |   |   | 1,235 |   |
| Short-term                  borrowings, net                                                                                                                             |   |   | - |   |   |   | 482 |   |
| Redemptions                  and Repayments-                                                                                                                            |   |   |   |   |   |   |   |   |
| Common                  stock                                                                                                                                           |   |   | (918 | ) |   |   | (600 | ) |
| Preferred                  stock                                                                                                                                        |   |   | - |   |   |   | (107 | ) |
| Long-term                  debt                                                                                                                                         |   |   | (647 | ) |   |   | (993 | ) |
| Short-term                  borrowings, net                                                                                                                             |   |   | (535 | ) |   |   | - |   |
| Net                  controlled                  disbursement activity                                                                                                  |   |   | 6 |   |   |   | (22 | ) |
| Stock-based                  compensation tax benefit                                                                                                                   |   |   | 16 |   |   |   | - |   |
| Common                  stock                  dividend payments                                                                                                        |   |   | (464 | ) |   |   | (439 | ) |
| Net                  cash used                  for financing activities                                                                                                |   |   | (1,442 | ) |   |   | (444 | ) |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                                                                              |   |   |   |   |   |   |   |   |
| Property                  additions                                                                                                                                     |   |   | (1,127 | ) |   |   | (990 | ) |
| Proceeds                  from                  asset sales                                                                                                             |   |   | 37 |   |   |   | 83 |   |
| Proceeds                  from                  sale and leaseback transaction                                                                                          |   |   | 1,329 |   |   |   | - |   |
| Sales                  of                  investment securities held in trusts                                                                                         |   |   | 1,010 |   |   |   | 1,370 |   |
| Purchases                  of                  investment securities held in trusts                                                                                     |   |   | (1,067 | ) |   |   | (1,381 | ) |
| Cash                  investments                                                                                                                                       |   |   | 48 |   |   |   | 109 |   |
| Other                                                                                                                                                                   |   |   | 1 |   |   |   | (13 | ) |
| Net                  cash                  provided from (used for) investing activities                                                                                |   |   | 231 |   |   |   | (822 | ) |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Net                  decrease                  in cash and cash equivalents                                                                                             |   |   | (60 | ) |   |   | (23 | ) |
| Cash                  and cash                  equivalents at beginning of period                                                                                      |   |   | 90 |   |   |   | 64 |   |
| Cash                  and cash                  equivalents at end of period                                                                                            |   | $ | 30 |   |   | $ | 41 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to FirstEnergy                  Corp. are an integral part of |
| these                  statements.                                                                                                                                      |   |   |   |   |   |   |   |   |

----

***Report      of Independent Registered Public Accounting Firm***

----

**FIRSTENERGY      CORP.**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**EXECUTIVE      SUMMARY**

| **Change                in Basic Earnings Per Share****From                Prior Year Periods** |   | **Three                Months****Ended****September                30,** |   | **Nine                Months****Ended****September                30,** |   |
|-------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                                                                            |   |                                                                     |   |                                                                    |   |   |   |
| Basic                Earnings                Per Share – 2006                             |   | $                                                                        | 1.41   |                                                                    | $      | 2.99 |   |
| Revenues                                                                                        |   |                                                                     | 0.55   |                                                                    |   | 1.76 |   |
| Fuel                and                purchased power                                          |   |                                                                     | (0.37  | )                                                                       |   | (0.99 | ) |
| Depreciation                and amortization                                                    |   |                                                                     | (0.11  | )                                                                       |   | (0.29 | ) |
| Deferral                of                new regulatory assets                                 |   |                                                                     | (0.09  | )                                                                       |   | (0.01 | ) |
| Other                expenses                                                                   |   |                                                                     | (0.16  | )                                                                       |   | (0.36 | ) |
| Reduced                common                shares outstanding                                 |   |                                                                     | 0.08   |                                                                    |   | 0.18 |   |
| Non-core                asset                sales/impairments – 2006                     |   |                                                                     | (0.01  | )                                                                       |   | 0.03 |   |
| PPUC                NUG                Accounting Adjustment – 2006                       |   |                                                                     | 0.02   |                                                                    |   | 0.02 |   |
| Non-core                asset                sales -- 2007                                      |   |                                                                     | 0.04   |                                                                    |   | 0.04 |   |
| Saxton                decommissioning regulatory asset – 2007                             |   |                                                                     | -      |                                                                    |   | 0.05 |   |
| Trust                securities impairment – 2007                                         |   |                                                                     | -      |                                                                    |   | (0.03 | ) |
| Basic                Earnings                Per Share – 2007                             |   | $                                                                        | 1.36   |                                                                    | $      | 3.39 |   |

**Regulatory      Matters**

*Ohio*

----

*Pennsylvania*

**Generation**

*Perry*

*Beaver      Valley*

----

**Financial      Matters**

**FIRSTENERGY’S      BUSINESS**

| ·   | **Energy                Delivery Services** transmits and distributes electricity through                FirstEnergy's eight utility operating companies, serving 4.5 million                customers within 36,100 square miles of Ohio, Pennsylvania and New                Jersey                and purchases power for its PLR requirements in Pennsylvania and                New                Jersey. This business segment derives its revenues principally from                the                delivery of electricity within FirstEnergy’s service areas, cost recovery                of regulatory assets and the sale of electric generation service                to                non-shopping retail customers under the PLR obligations in its                Pennsylvania and New Jersey franchise areas.  Its net income                reflects the commodity costs of securing electricity from the competitive                energy services segment under partial requirements purchased power                agreements with FES and non-affiliated power suppliers, including                associated transmission costs. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Competitive                Energy Services** supplies the electric power needs of end-use                customers through retail and wholesale arrangements, including associated                company power sales to meet all or a portion of the PLR requirements                of                FirstEnergy's Ohio and Pennsylvania utility subsidiaries and competitive                retail sales to customers primarily in Ohio, Pennsylvania, Maryland                and                Michigan. This business segment owns or leases and operates FirstEnergy's                generating facilities and also purchases electricity to meet sales                obligations. The segment's net income is primarily derived from affiliated                company power sales and non-affiliated electric generation sales                revenues                less the related costs of electricity generation, including purchased                power and net transmission and ancillary costs charged by PJM and                MISO to                deliver energy to the segment’s                customers. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Ohio                Transitional Generation Services** supplies the electric power                needs of non-shopping customers under the PLR requirements of                FirstEnergy's Ohio Companies. The segment's net income is primarily                derived from electric generation sales revenues less the cost of                power                purchased from the competitive energy services segment through a                full-requirements PSA arrangement with FES, including net transmission                and                ancillary costs charged by MISO to deliver energy to retail                customers. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**RESULTS      OF      OPERATIONS**

----

|                                                             |   | **Three                  Months Ended September 30,**        |   | **Nine                  Months Ended September 30,** |   |
|------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                             |   |                                                         |   | **Increase**                                         |   |   |   | **Increase** |   |
|                                                             |   | **2007**                                                     |   | **2006**                                             |   | **(Decrease)** |   | **2007** |   | **2006** |   | **(Decrease)** |   |
|                                                             |   | ***(In                millions, except per share amounts)*** |   |
| **Net                Income (Loss)**                             |   |                                                         |   |                                                 |   |   |   |   |   |   |   |   |   |
| **By                Business Segment:**                          |   |                                                         |   |                                                 |   |   |   |   |   |   |   |   |   |
| Energy                delivery services                          |   | $                                                            | 269    |                                                 | $      | 280 |   | $ | (11 | ) | $ | 695 |   | $ | 702 |   | $ | (7 | ) |
| Competitive                energy services                       |   |                                                         | 148    |                                                 |   | 169 |   |   | (21 | ) |   | 388 |   |   | 302 |   |   | 86 |   |
| Ohio                transitional generation services             |   |                                                         | 16     |                                                 |   | 27 |   |   | (11 | ) |   | 69 |   |   | 88 |   |   | (19 | ) |
| Other                and                reconciling adjustments* |   |                                                         | (20    | )                                                    |   | (22 | ) |   | 2 |   |   | (111 | ) |   | (113 | ) |   | 2 |   |
| Total                                                            |   | $                                                            | 413    |                                                 | $      | 454 |   | $ | (41 | ) | $ | 1,041 |   | $ | 979 |   | $ | 62 |   |
|                                                             |   |                                                         |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                Earnings Per Share:**                     |   |                                                         |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from                continuing operations  |   | $                                                            | 1.36   |                                                 | $      | 1.40 |   | $ | (0.04 | ) | $ | 3.39 |   | $ | 3.00 |   | $ | 0.39 |   |
| Discontinued                operations                           |   |                                                         | -      |                                                 |   | 0.01 |   |   | (0.01 | ) |   | - |   |   | (0.01 | ) |   | 0.01 |   |
| Net                earnings                per basic share       |   | $                                                            | 1.36   |                                                 | $      | 1.41 |   | $ | (0.05 | ) | $ | 3.39 |   | $ | 2.99 |   | $ | 0.40 |   |
|                                                             |   |                                                         |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                Earnings Per Share:**                   |   |                                                         |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from                continuing operations  |   | $                                                            | 1.34   |                                                 | $      | 1.39 |   | $ | (0.05 | ) | $ | 3.35 |   | $ | 2.98 |   | $ | 0.37 |   |
| Discontinued                operations                           |   |                                                         | -      |                                                 |   | 0.01 |   |   | (0.01 | ) |   | - |   |   | (0.01 | ) |   | 0.01 |   |
| Net                earnings                per diluted share     |   | $                                                            | 1.34   |                                                 | $      | 1.40 |   | $ | (0.06 | ) | $ | 3.35 |   | $ | 2.97 |   | $ | 0.38 |   |
|                                                             |   |                                                         |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

***Summary      of Results of Operations – Third Quarter of 2007 Compared with the Third Quarter      of 2006***

|                                                                |   |                               |   |   |            |   |   | **Ohio**         |   |   |                           |   |   |             |   |
|---------------------------------------------------------------------|--------|------------------------------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|--------------------------------|--------|--------|------------------|--------|
|                                                                |   | **Energy**                         |   |   | **Competitive** |   |   | **Transitional** |   |   | **Other                  and** |   |   |             |   |
|                                                                |   | **Delivery**                       |   |   | **Energy**      |   |   | **Generation**   |   |   | **Reconciling**                |   |   | **FirstEnergy**  |   |
| **Third                  Quarter 2007 Financial Results**           |   | **Services**                       |   |   | **Services**    |   |   | **Services**     |   |   | **Adjustments**                |   |   | **Consolidated** |   |
|                                                                |   | **(In                  millions)** |   |   |            |   |   |             |   |   |                           |   |   |             |   |
| Revenues:                                                           |   |                               |   |   |            |   |   |             |   |   |                           |   |   |             |   |
| External                                                            |   |                               |   |   |            |   |   |             |   |   |                           |   |   |             |   |
| Electric                                                            |   | $                                  | 2,340  |   |            | $      | 338    |             |   | $      | 716                            |   |   | $                | -      |   |   | $ | 3,394 |   |
| Other                                                               |   |                               | 180    |   |            |   | 32     |             |   |   | 7                              |   |   |             | 28     |   |   |   | 247 |   |
| Internal                                                            |   |                               | -      |   |            |   | 806    |             |   |   | -                              |   |   |             | (806   | ) |   |   | - |   |
| Total                  Revenues                                     |   |                               | 2,520  |   |            |   | 1,176  |             |   |   | 723                            |   |   |             | (778   | ) |   |   | 3,641 |   |
|                                                                |   |                               |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Expenses:                                                           |   |                               |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Fuel                  and                  purchased power          |   |                               | 1,116  |   |            |   | 554    |             |   |   | 631                            |   |   |             | (806   | ) |   |   | 1,495 |   |
| Other                  operating expenses                           |   |                               | 436    |   |            |   | 264    |             |   |   | 80                             |   |   |             | (24    | ) |   |   | 756 |   |
| Provision                  for                  depreciation        |   |                               | 102    |   |            |   | 51     |             |   |   | -                              |   |   |             | 9      |   |   |   | 162 |   |
| Amortization                  of regulatory assets                  |   |                               | 279    |   |            |   | -      |             |   |   | 9                              |   |   |             | -      |   |   |   | 288 |   |
| Deferral                  of                  new regulatory assets |   |                               | (82    | )      |            |   | -      |             |   |   | (25                            | )      |   |             | -      |   |   |   | (107 | ) |
| General                  taxes                                      |   |                               | 166    |   |            |   | 26     |             |   |   | 1                              |   |   |             | 4      |   |   |   | 197 |   |
| Total                  Expenses                                     |   |                               | 2,017  |   |            |   | 895    |             |   |   | 696                            |   |   |             | (817   | ) |   |   | 2,791 |   |
|                                                                |   |                               |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Operating                  Income                                   |   |                               | 503    |   |            |   | 281    |             |   |   | 27                             |   |   |             | 39     |   |   |   | 850 |   |
| Other                  Income                  (Expense):           |   |                               |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Investment                  income                                  |   |                               | 58     |   |            |   | 5      |             |   |   | -                              |   |   |             | (33    | ) |   |   | 30 |   |
| Interest                  expense                                   |   |                               | (120   | )      |            |   | (44    | )                |   |   | -                              |   |   |             | (39    | ) |   |   | (203 | ) |
| Capitalized                  interest                               |   |                               | 3      |   |            |   | 5      |             |   |   | -                              |   |   |             | 1      |   |   |   | 9 |   |
| Total                  Other                  Expense               |   |                               | (59    | )      |            |   | (34    | )                |   |   | -                              |   |   |             | (71    | ) |   |   | (164 | ) |
|                                                                |   |                               |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Income                  From                  Continuing Operations |   |                               |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |
| Before                  Income                  Taxes               |   |                               | 444    |   |            |   | 247    |             |   |   | 27                             |   |   |             | (32    | ) |   |   | 686 |   |
| Income                  taxes                                       |   |                               | 175    |   |            |   | 99     |             |   |   | 11                             |   |   |             | (12    | ) |   |   | 273 |   |
| Net                  Income                                         |   | $                                  | 269    |   |            | $      | 148    |             |   | $      | 16                             |   |   | $                | (20    | ) |   | $ | 413 |   |

----

|                                                                    |   |                                                                                                         |   |   |            |   |   | **Ohio**         |   |   |                             |   |   |             |   |
|-------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|----------------------------------|--------|--------|------------------|--------|
|                                                                    |   | **Energy**                                                                                                   |   |   | **Competitive** |   |   | **Transitional** |   |   | **Other                    and** |   |   |             |   |
|                                                                    |   | **Delivery**                                                                                                 |   |   | **Energy**      |   |   | **Generation**   |   |   | **Reconciling**                  |   |   | **FirstEnergy**  |   |
| **Third                    Quarter 2006 Financial Results**             |   | **Services**                                                                                                 |   |   | **Services**    |   |   | **Services**     |   |   | **Adjustments**                  |   |   | **Consolidated** |   |
|                                                                    |   | **(In                    millions)**             |   |
| Revenues:                                                               |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |
| External                                                                |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |
| Electric                                                                |   | $                                                                                                            | 2,120  |   |            | $      | 313    |             |   | $      | 682                              |   |   | $                | -      |   |   | $ | 3,115 |   |
| Other                                                                   |   |                                                                                                         | 186    |   |            |   | 40     |             |   |   | 8                                |   |   |             | 15     |   |   |   | 249 |   |
| Internal                                                                |   |                                                                                                         | -      |   |            |   | 762    |             |   |   | -                                |   |   |             | (762   | ) |   |   | - |   |
| Total                    Revenues                                       |   |                                                                                                         | 2,306  |   |            |   | 1,115  |             |   |   | 690                              |   |   |             | (747   | ) |   |   | 3,364 |   |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Expenses:                                                               |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Fuel                    and                    purchased power          |   |                                                                                                         | 960    |   |            |   | 515    |             |   |   | 604                              |   |   |             | (762   | ) |   |   | 1,317 |   |
| Other                    operating expenses                             |   |                                                                                                         | 468    |   |            |   | 218    |             |   |   | 76                               |   |   |             | (4     | ) |   |   | 758 |   |
| Provision                    for                    depreciation        |   |                                                                                                         | 97     |   |            |   | 49     |             |   |   | -                                |   |   |             | 7      |   |   |   | 153 |   |
| Amortization                    of regulatory assets                    |   |                                                                                                         | 237    |   |            |   | -      |             |   |   | 6                                |   |   |             | -      |   |   |   | 243 |   |
| Deferral                    of                    new regulatory assets |   |                                                                                                         | (107   | )      |            |   | -      |             |   |   | (46                              | )      |   |             | -      |   |   |   | (153 | ) |
| General                    taxes                                        |   |                                                                                                         | 157    |   |            |   | 21     |             |   |   | 5                                |   |   |             | 4      |   |   |   | 187 |   |
| Total                    Expenses                                       |   |                                                                                                         | 1,812  |   |            |   | 803    |             |   |   | 645                              |   |   |             | (755   | ) |   |   | 2,505 |   |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Operating                    Income                                     |   |                                                                                                         | 494    |   |            |   | 312    |             |   |   | 45                               |   |   |             | 8      |   |   |   | 859 |   |
| Other                    Income                    (Expense):           |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Investment                    income                                    |   |                                                                                                         | 80     |   |            |   | 18     |             |   |   | -                                |   |   |             | (52    | ) |   |   | 46 |   |
| Interest                    expense                                     |   |                                                                                                         | (109   | )      |            |   | (52    | )                |   |   | -                                |   |   |             | (24    | ) |   |   | (185 | ) |
| Capitalized                    interest                                 |   |                                                                                                         | 4      |   |            |   | 3      |             |   |   | -                                |   |   |             | -      |   |   |   | 7 |   |
| Subsidiaries'                    preferred stock dividends              |   |                                                                                                         | (2     | )      |            |   | -      |             |   |   | -                                |   |   |             | -      |   |   |   | (2 | ) |
| Total                    Other                    Expense               |   |                                                                                                         | (27    | )      |            |   | (31    | )                |   |   | -                                |   |   |             | (76    | ) |   |   | (134 | ) |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Income                    From                    Continuing Operations |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Before                    Income                    Taxes               |   |                                                                                                         | 467    |   |            |   | 281    |             |   |   | 45                               |   |   |             | (68    | ) |   |   | 725 |   |
| Income                    taxes                                         |   |                                                                                                         | 187    |   |            |   | 112    |             |   |   | 18                               |   |   |             | (44    | ) |   |   | 273 |   |
| Income                    from                    continuing operations |   |                                                                                                         | 280    |   |            |   | 169    |             |   |   | 27                               |   |   |             | (24    | ) |   |   | 452 |   |
| Discontinued                    operations                              |   |                                                                                                         | -      |   |            |   | -      |             |   |   | -                                |   |   |             | 2      |   |   |   | 2 |   |
| Net                    Income                                           |   | $                                                                                                            | 280    |   |            | $      | 169    |             |   | $      | 27                               |   |   | $                | (22    | ) |   | $ | 454 |   |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| **Changes                    Between Third Quarter 2007 and**           |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |
| **Third                    Quarter 2006 Financial Results**             |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| **Increase                    (Decrease)**                              |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Revenues:                                                               |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| External                                                                |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Electric                                                                |   | $                                                                                                            | 220    |   |            | $      | 25     |             |   | $      | 34                               |   |   | $                | -      |   |   | $ | 279 |   |
| Other                                                                   |   |                                                                                                         | (6     | )      |            |   | (8     | )                |   |   | (1                               | )      |   |             | 13     |   |   |   | (2 | ) |
| Internal                                                                |   |                                                                                                         | -      |   |            |   | 44     |             |   |   | -                                |   |   |             | (44    | ) |   |   | - |   |
| Total                    Revenues                                       |   |                                                                                                         | 214    |   |            |   | 61     |             |   |   | 33                               |   |   |             | (31    | ) |   |   | 277 |   |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Expenses:                                                               |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Fuel                    and                    purchased power          |   |                                                                                                         | 156    |   |            |   | 39     |             |   |   | 27                               |   |   |             | (44    | ) |   |   | 178 |   |
| Other                    operating expenses                             |   |                                                                                                         | (32    | )      |            |   | 46     |             |   |   | 4                                |   |   |             | (20    | ) |   |   | (2 | ) |
| Provision                    for                    depreciation        |   |                                                                                                         | 5      |   |            |   | 2      |             |   |   | -                                |   |   |             | 2      |   |   |   | 9 |   |
| Amortization                    of regulatory assets                    |   |                                                                                                         | 42     |   |            |   | -      |             |   |   | 3                                |   |   |             | -      |   |   |   | 45 |   |
| Deferral                    of                    new regulatory assets |   |                                                                                                         | 25     |   |            |   | -      |             |   |   | 21                               |   |   |             | -      |   |   |   | 46 |   |
| General                    taxes                                        |   |                                                                                                         | 9      |   |            |   | 5      |             |   |   | (4                               | )      |   |             | -      |   |   |   | 10 |   |
| Total                    Expenses                                       |   |                                                                                                         | 205    |   |            |   | 92     |             |   |   | 51                               |   |   |             | (62    | ) |   |   | 286 |   |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Operating                    Income                                     |   |                                                                                                         | 9      |   |            |   | (31    | )                |   |   | (18                              | )      |   |             | 31     |   |   |   | (9 | ) |
| Other                    Income                    (Expense):           |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Investment                    income                                    |   |                                                                                                         | (22    | )      |            |   | (13    | )                |   |   | -                                |   |   |             | 19     |   |   |   | (16 | ) |
| Interest                    expense                                     |   |                                                                                                         | (11    | )      |            |   | 8      |             |   |   | -                                |   |   |             | (15    | ) |   |   | (18 | ) |
| Capitalized                    interest                                 |   |                                                                                                         | (1     | )      |            |   | 2      |             |   |   | -                                |   |   |             | 1      |   |   |   | 2 |   |
| Subsidiaries'                    preferred stock dividends              |   |                                                                                                         | 2      |   |            |   | -      |             |   |   | -                                |   |   |             | -      |   |   |   | 2 |   |
| Total                    Other                    Expense               |   |                                                                                                         | (32    | )      |            |   | (3     | )                |   |   | -                                |   |   |             | 5      |   |   |   | (30 | ) |
|                                                                    |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Income                    From                    Continuing Operations |   |                                                                                                         |   |   |            |   |   |             |   |   |                             |   |   |             |   |   |   |   |   |   |
| Before                    Income                    Taxes               |   |                                                                                                         | (23    | )      |            |   | (34    | )                |   |   | (18                              | )      |   |             | 36     |   |   |   | (39 | ) |
| Income                    taxes                                         |   |                                                                                                         | (12    | )      |            |   | (13    | )                |   |   | (7                               | )      |   |             | 32     |   |   |   | - |   |
| Income                    from                    continuing operations |   |                                                                                                         | (11    | )      |            |   | (21    | )                |   |   | (11                              | )      |   |             | 4      |   |   |   | (39 | ) |
| Discontinued                    operations                              |   |                                                                                                         | -      |   |            |   | -      |             |   |   | -                                |   |   |             | (2     | ) |   |   | (2 | ) |
| Net                    Income                                           |   | $                                                                                                            | (11    | )      |            | $      | (21    | )                |   | $      | (11                              | )      |   | $                | 2      |   |   | $ | (41 | ) |

----

***Energy      Delivery Services – Third      Quarter 2007 Compared to Third Quarter 2006***

*Revenues–*

|                                           |   | **Three                Months Ended** |   |     |   |
|------------------------------------------------|--------|---------------------------------------|--------|----------|--------|
|                                           |   | **September                30,**      |   |     |   |
| **Revenues                by Type of Service** |   | **2007**                              |   | **2006** |   | **Increase****(Decrease)** |   |
|                                           |   | ***(In                millions)***    |   |
| Distribution                  services         |   | $                                     | 1,104  |     | $      | 1,124 |   | $ | (20 | ) |
| Generation                  sales:             |   |                                  |   |     |   |   |   |   |   |   |
|    Retail                       |   |                                  | 942    |     |   | 857 |   |   | 85 |   |
|    Wholesale                    |   |                                  | 207    |     |   | 91 |   |   | 116 |   |
| Total                  generation sales        |   |                                  | 1,149  |     |   | 948 |   |   | 201 |   |
| Transmission                                   |   |                                  | 219    |     |   | 177 |   |   | 42 |   |
| Other                                          |   |                                  | 48     |     |   | 57 |   |   | (9 | ) |
| Total                  Revenues                |   | $                                     | 2,520  |     | $      | 2,306 |   | $ | 214 |   |

| **Electric                Distribution KWH Deliveries** |   |   |
|---------------------------------------------------------|--------|--------|
| Residential                                             |   | (1.7)  |  % |
| Commercial                                              |   | 1.4    |  % |
| Industrial                                              |   | 1.0    |  % |
| Total                  Distribution KWH Deliveries      |   | (0.5)  |  % |

| **Sources                  of Change in Generation Revenues**       |   | **Increase****(Decrease)**         |   |
|---------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                |   | ***(In                millions)*** |   |
| Retail:                                                             |   |                               |   |   |
|   Effect                of 5.9% decrease in sales volumes |   | $                                  | (50    | ) |
|   Change                in prices                         |   |                               | 135    |   |
|                                                                |   |                               | 85     |   |
| Wholesale:                                                          |   |                               |   |   |
|   Effect                of 95% increase in sales volumes  |   |                               | 86     |   |
|   Change                in prices                         |   |                               | 30     |   |
|                                                                |   |                               | 116    |   |
| Net                Increase                in Generation Sales      |   | $                                  | 201    |   |

----

*Expenses–*

|   | · | Purchased                power costs were $157 million                higher in the third quarter of 2007 due to higher unit costs, increased                volumes purchased and a decrease in purchased power cost deferrals.                The                increased unit costs reflected the effect of higher JCP&L purchased                power unit prices resulting from the BGS auction. The increased KWH                purchases in 2007 primarily resulted from more sales to the PJM wholesale                market by Met-Ed and Penelec.  Deferred purchased power costs                were lower due to higher generation charges to JCP&L                customers.  The following table summarizes the sources of                changes in purchased power costs: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Sources                  of Change in Purchased Power**                                |   | **Increase**                       |   |
|------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                     |   | ***(In                millions)*** |   |
|                                                                                     |   |                               |   |   |
| Purchased                Power:                                                          |   |                               |   |   |
|    Change                due to increased unit costs                      |   | $                                  | 97     |   |
|    Change                due to increased volume                          |   |                               | 42     |   |
|    Decrease                in NUG costs deferred                          |   |                               | 18     |   |
|       Net                Increase in Purchased Power Costs |   | $                                  | 157    |   |

|   | · | Amortization                of regulatory assets increased $42 million                compared to 2006 due primarily to recovery of deferred BGS costs                through                higher NUGC revenues for JCP&L as discussed                above. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                deferral                of new regulatory assets during the third quarter of 2007 was                $25 million lower than in 2006 due in part to $40 million in                reduced deferrals of transmission related PJM costs. The reduced                deferral                in the third quarter of 2007 was attributable to greater recovery                of PJM                costs in the 2007 period under the transmission service charge rider                (see                Outlook – State Regulatory Matters - Pennsylvania). The reduction in                deferred PJM costs was partially offset by higher distribution deferrals                under the RCP. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | A                decrease of                $21 million in transmission expenses caused by the expiration of                transmission hedging instruments and reduced financial transmission                rights                revenue. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Other      Expense –*

***Competitive      Energy Services – Third      Quarter 2007 Compared to Third Quarter 2006***

----

*Revenues–*

|                                                   |   | **Three                Months Ended** |   |         |   |
|--------------------------------------------------------|--------|---------------------------------------|--------|--------------|--------|
|                                                   |   | **September                30,**      |   | **Increase** |   |
| **Revenues                By Type of Service**         |   | **2007**                              |   | **2006**     |   | **(Decrease)** |   |
|                                                   |   | ***(In                millions)***    |   |
| Non-Affiliated                  Generation Sales:      |   |                                  |   |         |   |   |   |
| Retail                                                 |   | $                                     | 189    |         | $      | 178 |   | $ | 11 |   |
| Wholesale                                              |   |                                  | 149    |         |   | 134 |   |   | 15 |   |
| Total                  Non-Affiliated Generation Sales |   |                                  | 338    |         |   | 312 |   |   | 26 |   |
| Affiliated                  Generation Sales           |   |                                  | 806    |         |   | 762 |   |   | 44 |   |
| Transmission                                           |   |                                  | 26     |         |   | 32 |   |   | (6 | ) |
| Other                                                  |   |                                  | 6      |         |   | 9 |   |   | (3 | ) |
| Total                  Revenues                        |   | $                                     | 1,176  |         | $      | 1,115 |   | $ | 61 |   |

|                                                                                      |   | **Increase**                       |   |
|-------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
| **Source                  of Change in Non-Affiliated Generation                  Sales** |   | **(Decrease)**                     |   |
|                                                                                      |   | ***(In                millions)*** |   |
| Retail:                                                                                   |   |                               |   |   |
| Effect                of 0.2% increase in sales                volumes                    |   | $                                  | 1      |   |
| Change                in prices                                                           |   |                               | 10     |   |
|                                                                                      |   |                               | 11     |   |
| Wholesale:                                                                                |   |                               |   |   |
| Effect                of 11% decrease in sales                volumes                     |   |                               | (15    | ) |
| Change                in prices                                                           |   |                               | 30     |   |
|                                                                                      |   |                               | 15     |   |
| Net                Increase                in Non-Affiliated Generation Sales             |   | $                                  | 26     |   |
|                                                                                      |   |                               |   |
|                                                                                      |   |                               |   |
| **Source                  of Change in Affiliated Generation Sales**                      |   | **Increase**                       |   |
|                                                                                      |   | ***(In                millions)*** |   |
| Ohio                Companies:                                                            |   |                               |   |   |
| Effect                of 2% increase in sales                volumes                      |   | $                                  | 12     |   |
| Change                in prices                                                           |   |                               | 14     |   |
|                                                                                      |   |                               | 26     |   |
| Pennsylvania                Companies:                                                    |   |                               |   |   |
| Effect                of 8% increase in sales                volumes                      |   |                               | 13     |   |
| Change                in prices                                                           |   |                               | 5      |   |
|                                                                                      |   |                               | 18     |   |
| Net                Increase                in Affiliated Generation Sales                 |   | $                                  | 44     |   |

----

*Expenses      -*

|   | · | Purchased                power costs increased $55 million due primarily to higher volumes for                replacement power related to a forced outage at Perry in the third                quarter                of 2007 and higher market prices. The sources of change in purchased                power                costs are summarized in the following                table: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Source                of Change in Purchased Power**                                           |   | **Increase**                       |   |
|--------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                             |   | ***(In                millions)*** |   |
|                                                                                             |   |                               |   |   |
| Change                due to increased unit                costs                                 |   | $                                  | 14     |   |
| Change                due to 18% increase in                volume                               |   |                               | 31     |   |
|     Change                due to new PJM capacity market                     |   |                               | 10     |   |
|        Total                Increase in Purchased Power Costs |   | $                                  | 55     |   |

|   | · | Fuel                costs                were $16 million lower primarily due to lower coal prices ($8                million), reduced emission allowance costs ($5 million) and a decrease                in                natural gas consumed resulting from reduced combustion turbine generation                ($2 million). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Fossil                operating costs were $32 million higher in 2007 primarily due to the                absence of gains on the sales of emissions allowances recognized                in                2006. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Miscellaneous                operating expenses were $13 million higher primarily due to increased                contractor expenses related to the Beaver Valley Unit 1 outage and                corporate support billings from                FESC. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Higher                general                taxes of $5 million resulted from increased gross receipts taxes and                property taxes. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

***Ohio      Transitional Generation Services –Third Quarter 2007 Compared to Third Quarter 2006***

*Revenues–*

|                                           |   | **Three                Months Ended** |   |     |   |
|------------------------------------------------|--------|---------------------------------------|--------|----------|--------|
|                                           |   | **September                30,**      |   |     |   |
| **Revenues                by Type of Service** |   | **2007**                              |   | **2006** |   | **Increase** |   |
|                                           |   | ***(In                millions)***    |   |
| Generation                  sales:             |   |                                  |   |     |   |   |   |
| Retail                                         |   | $                                     | 622    |     | $      | 605 |   | $ | 17 |   |
| Wholesale                                      |   |                                  | 3      |     |   | 3 |   |   | - |   |
| Total                  generation sales        |   |                                  | 625    |     |   | 608 |   |   | 17 |   |
| Transmission                                   |   |                                  | 98     |     |   | 82 |   |   | 16 |   |
| Total                  Revenues                |   | $                                     | 723    |     | $      | 690 |   | $ | 33 |   |

| **Source                  of Change in Generation Sales**                        |   | **Increase**                       |   |
|----------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                             |   | ***(In                millions)*** |   |
| Effect                of 2% increase in sales                volumes             |   | $                                  | 10     |   |
| Change                in prices                                                  |   |                               | 7      |   |
|     Total                Increase in Retail Generation Sales |   | $                                  | 17     |   |
|                                                                             |   |                               |   |   |

----

*Expenses      -*

| **Source                of Change in Purchased Power**                |   | **Increase**                       |   |
|-----------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                  |   | ***(In                millions)*** |   |
| Purchases                from                non-affiliates:          |   |                               |   |   |
| Change                due to increased unit                costs      |   | $                                  | -      |   |
| Change                due to volume                                   |   |                               | 1      |   |
|                                                                  |   |                               | 1      |   |
| Purchases                from                FES:                     |   |                               |   |   |
| Change                due to increased unit                costs      |   |                               | 14     |   |
| Change                due to volume                                   |   |                               | 12     |   |
|                                                                  |   |                               | 26     |   |
| Total                Increase                in Purchased Power Costs |   | $                                  | 27     |   |

***Other–Third      Quarter 2007 Compared to      Third Quarter 2006***

----

***Summary      of Results of Operations – First Nine Months of 2007 Compared with the First      Nine Months of 2006***

|                                                                |   |                                                                                                       |   |   |            |   |   | **Ohio**         |   |   |                           |   |   |             |   |
|---------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|--------------------------------|--------|--------|------------------|--------|
|                                                                |   | **Energy**                                                                                                 |   |   | **Competitive** |   |   | **Transitional** |   |   | **Other                  and** |   |   |             |   |
|                                                                |   | **Delivery**                                                                                               |   |   | **Energy**      |   |   | **Generation**   |   |   | **Reconciling**                |   |   | **FirstEnergy**  |   |
| **First                  Nine Months 2007 Financial Results**       |   | **Services**                                                                                               |   |   | **Services**    |   |   | **Services**     |   |   | **Adjustments**                |   |   | **Consolidated** |   |
|                                                                |   | **(In                  millions)**             |   |
| Revenues:                                                           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |
| External                                                            |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |
| Electric                                                            |   | $                                                                                                          | 6,148  |   |            | $      | 973    |             |   | $      | 1,942                          |   |   | $                | -      |   |   | $ | 9,063 |   |
| Other                                                               |   |                                                                                                       | 507    |   |            |   | 116    |             |   |   | 26                             |   |   |             | 11     |   |   |   | 660 |   |
| Internal                                                            |   |                                                                                                       | -      |   |            |   | 2,210  |             |   |   | -                              |   |   |             | (2,210 | ) |   |   | - |   |
| Total                  Revenues                                     |   |                                                                                                       | 6,655  |   |            |   | 3,299  |             |   |   | 1,968                          |   |   |             | (2,199 | ) |   |   | 9,723 |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Expenses:                                                           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Fuel                  and                  purchased power          |   |                                                                                                       | 2,838  |   |            |   | 1,461  |             |   |   | 1,712                          |   |   |             | (2,210 | ) |   |   | 3,801 |   |
| Other                  operating expenses                           |   |                                                                                                       | 1,255  |   |            |   | 839    |             |   |   | 218                            |   |   |             | (57    | ) |   |   | 2,255 |   |
| Provision                  for                  depreciation        |   |                                                                                                       | 301    |   |            |   | 153    |             |   |   | -                              |   |   |             | 23     |   |   |   | 477 |   |
| Amortization                  of regulatory assets                  |   |                                                                                                       | 765    |   |            |   | -      |             |   |   | 20                             |   |   |             | -      |   |   |   | 785 |   |
| Deferral                  of                  new regulatory assets |   |                                                                                                       | (299   | )      |            |   | -      |             |   |   | (100                           | )      |   |             | -      |   |   |   | (399 | ) |
| General                  taxes                                      |   |                                                                                                       | 486    |   |            |   | 81     |             |   |   | 3                              |   |   |             | 19     |   |   |   | 589 |   |
| Total                  Expenses                                     |   |                                                                                                       | 5,346  |   |            |   | 2,534  |             |   |   | 1,853                          |   |   |             | (2,225 | ) |   |   | 7,508 |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Operating                  Income                                   |   |                                                                                                       | 1,309  |   |            |   | 765    |             |   |   | 115                            |   |   |             | 26     |   |   |   | 2,215 |   |
| Other                  Income                  (Expense):           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Investment                  income                                  |   |                                                                                                       | 190    |   |            |   | 13     |             |   |   | 1                              |   |   |             | (111   | ) |   |   | 93 |   |
| Interest                  expense                                   |   |                                                                                                       | (347   | )      |            |   | (144   | )                |   |   | (1                             | )      |   |             | (101   | ) |   |   | (593 | ) |
| Capitalized                  interest                               |   |                                                                                                       | 7      |   |            |   | 13     |             |   |   | -                              |   |   |             | 1      |   |   |   | 21 |   |
| Total                  Other                  Expense               |   |                                                                                                       | (150   | )      |            |   | (118   | )                |   |   | -                              |   |   |             | (211   | ) |   |   | (479 | ) |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Income                  From                  Continuing Operations |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Before                  Income                  Taxes               |   |                                                                                                       | 1,159  |   |            |   | 647    |             |   |   | 115                            |   |   |             | (185   | ) |   |   | 1,736 |   |
| Income                  taxes                                       |   |                                                                                                       | 464    |   |            |   | 259    |             |   |   | 46                             |   |   |             | (74    | ) |   |   | 695 |   |
| Net                  Income                                         |   | $                                                                                                          | 695    |   |            | $      | 388    |             |   | $      | 69                             |   |   | $                | (111   | ) |   | $ | 1,041 |   |

----

|                                                                |   |                                                                                                       |   |   |            |   |   | **Ohio**         |   |   |                           |   |   |             |   |
|---------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|--------------------------------|--------|--------|------------------|--------|
|                                                                |   | **Energy**                                                                                                 |   |   | **Competitive** |   |   | **Transitional** |   |   | **Other                  and** |   |   |             |   |
|                                                                |   | **Delivery**                                                                                               |   |   | **Energy**      |   |   | **Generation**   |   |   | **Reconciling**                |   |   | **FirstEnergy**  |   |
| **First                  Nine Months 2006 Financial Results**       |   | **Services**                                                                                               |   |   | **Services**    |   |   | **Services**     |   |   | **Adjustments**                |   |   | **Consolidated** |   |
|                                                                |   | **(In                  millions)**             |   |
| Revenues:                                                           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |
| External                                                            |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |
| Electric                                                            |   | $                                                                                                          | 5,434  |   |            | $      | 955    |             |   | $      | 1,790                          |   |   | $                | -      |   |   | $ | 8,179 |   |
| Other                                                               |   |                                                                                                       | 442    |   |            |   | 122    |             |   |   | 18                             |   |   |             | 60     |   |   |   | 642 |   |
| Internal                                                            |   |                                                                                                       | 14     |   |            |   | 1,997  |             |   |   | -                              |   |   |             | (2,011 | ) |   |   | - |   |
| Total                  Revenues                                     |   |                                                                                                       | 5,890  |   |            |   | 3,074  |             |   |   | 1,808                          |   |   |             | (1,951 | ) |   |   | 8,821 |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Expenses:                                                           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Fuel                  and                  purchased power          |   |                                                                                                       | 2,343  |   |            |   | 1,416  |             |   |   | 1,558                          |   |   |             | (2,011 | ) |   |   | 3,306 |   |
| Other                  operating expenses                           |   |                                                                                                       | 1,197  |   |            |   | 838    |             |   |   | 185                            |   |   |             | 10     |   |   |   | 2,230 |   |
| Provision                  for                  depreciation        |   |                                                                                                       | 282    |   |            |   | 143    |             |   |   | -                              |   |   |             | 20     |   |   |   | 445 |   |
| Amortization                  of regulatory assets                  |   |                                                                                                       | 650    |   |            |   | -      |             |   |   | 15                             |   |   |             | -      |   |   |   | 665 |   |
| Deferral                  of                  new regulatory assets |   |                                                                                                       | (275   | )      |            |   | -      |             |   |   | (104                           | )      |   |             | -      |   |   |   | (379 | ) |
| General                  taxes                                      |   |                                                                                                       | 459    |   |            |   | 70     |             |   |   | 7                              |   |   |             | 17     |   |   |   | 553 |   |
| Total                  Expenses                                     |   |                                                                                                       | 4,656  |   |            |   | 2,467  |             |   |   | 1,661                          |   |   |             | (1,964 | ) |   |   | 6,820 |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Operating                  Income                                   |   |                                                                                                       | 1,234  |   |            |   | 607    |             |   |   | 147                            |   |   |             | 13     |   |   |   | 2,001 |   |
| Other                  Income                  (Expense):           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Investment                  income                                  |   |                                                                                                       | 244    |   |            |   | 35     |             |   |   | -                              |   |   |             | (159   | ) |   |   | 120 |   |
| Interest                  expense                                   |   |                                                                                                       | (310   | )      |            |   | (148   | )                |   |   | (1                             | )      |   |             | (69    | ) |   |   | (528 | ) |
| Capitalized                  interest                               |   |                                                                                                       | 11     |   |            |   | 9      |             |   |   | -                              |   |   |             | 1      |   |   |   | 21 |   |
| Subsidiaries'                  preferred stock dividends            |   |                                                                                                       | (9     | )      |            |   | -      |             |   |   | -                              |   |   |             | 3      |   |   |   | (6 | ) |
| Total                  Other                  Expense               |   |                                                                                                       | (64    | )      |            |   | (104   | )                |   |   | (1                             | )      |   |             | (224   | ) |   |   | (393 | ) |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Income                  From                  Continuing Operations |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Before                  Income                  Taxes               |   |                                                                                                       | 1,170  |   |            |   | 503    |             |   |   | 146                            |   |   |             | (211   | ) |   |   | 1,608 |   |
| Income                  taxes                                       |   |                                                                                                       | 468    |   |            |   | 201    |             |   |   | 58                             |   |   |             | (102   | ) |   |   | 625 |   |
| Income                  from                  continuing operations |   |                                                                                                       | 702    |   |            |   | 302    |             |   |   | 88                             |   |   |             | (109   | ) |   |   | 983 |   |
| Discontinued                  operations                            |   |                                                                                                       | -      |   |            |   | -      |             |   |   | -                              |   |   |             | (4     | ) |   |   | (4 | ) |
| Net                  Income                                         |   | $                                                                                                          | 702    |   |            | $      | 302    |             |   | $      | 88                             |   |   | $                | (113   | ) |   | $ | 979 |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| **Changes                  Between First Nine Months 2007**         |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |
| **and                  First Nine Months 2006**                     |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| **Financial                  Results Increase (Decrease)**          |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Revenues:                                                           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| External                                                            |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Electric                                                            |   | $                                                                                                          | 714    |   |            | $      | 18     |             |   | $      | 152                            |   |   | $                | -      |   |   | $ | 884 |   |
| Other                                                               |   |                                                                                                       | 65     |   |            |   | (6     | )                |   |   | 8                              |   |   |             | (49    | ) |   |   | 18 |   |
| Internal                                                            |   |                                                                                                       | (14    | )      |            |   | 213    |             |   |   | -                              |   |   |             | (199   | ) |   |   | - |   |
| Total                  Revenues                                     |   |                                                                                                       | 765    |   |            |   | 225    |             |   |   | 160                            |   |   |             | (248   | ) |   |   | 902 |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Expenses:                                                           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Fuel                  and                  purchased power          |   |                                                                                                       | 495    |   |            |   | 45     |             |   |   | 154                            |   |   |             | (199   | ) |   |   | 495 |   |
| Other                  operating expenses                           |   |                                                                                                       | 58     |   |            |   | 1      |             |   |   | 33                             |   |   |             | (67    | ) |   |   | 25 |   |
| Provision                  for                  depreciation        |   |                                                                                                       | 19     |   |            |   | 10     |             |   |   | -                              |   |   |             | 3      |   |   |   | 32 |   |
| Amortization                  of regulatory assets                  |   |                                                                                                       | 115    |   |            |   | -      |             |   |   | 5                              |   |   |             | -      |   |   |   | 120 |   |
| Deferral                  of                  new regulatory assets |   |                                                                                                       | (24    | )      |            |   | -      |             |   |   | 4                              |   |   |             | -      |   |   |   | (20 | ) |
| General                  taxes                                      |   |                                                                                                       | 27     |   |            |   | 11     |             |   |   | (4                             | )      |   |             | 2      |   |   |   | 36 |   |
| Total                  Expenses                                     |   |                                                                                                       | 690    |   |            |   | 67     |             |   |   | 192                            |   |   |             | (261   | ) |   |   | 688 |   |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Operating                  Income                                   |   |                                                                                                       | 75     |   |            |   | 158    |             |   |   | (32                            | )      |   |             | 13     |   |   |   | 214 |   |
| Other                  Income                  (Expense):           |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Investment                  income                                  |   |                                                                                                       | (54    | )      |            |   | (22    | )                |   |   | 1                              |   |   |             | 48     |   |   |   | (27 | ) |
| Interest                  expense                                   |   |                                                                                                       | (37    | )      |            |   | 4      |             |   |   | -                              |   |   |             | (32    | ) |   |   | (65 | ) |
| Capitalized                  interest                               |   |                                                                                                       | (4     | )      |            |   | 4      |             |   |   | -                              |   |   |             | -      |   |   |   | - |   |
| Subsidiaries'                  preferred stock dividends            |   |                                                                                                       | 9      |   |            |   | -      |             |   |   | -                              |   |   |             | (3     | ) |   |   | 6 |   |
| Total                  Other                  Expense               |   |                                                                                                       | (86    | )      |            |   | (14    | )                |   |   | 1                              |   |   |             | 13     |   |   |   | (86 | ) |
|                                                                |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Income                  From                  Continuing Operations |   |                                                                                                       |   |   |            |   |   |             |   |   |                           |   |   |             |   |   |   |   |   |   |
| Before                  Income                  Taxes               |   |                                                                                                       | (11    | )      |            |   | 144    |             |   |   | (31                            | )      |   |             | 26     |   |   |   | 128 |   |
| Income                  taxes                                       |   |                                                                                                       | (4     | )      |            |   | 58     |             |   |   | (12                            | )      |   |             | 28     |   |   |   | 70 |   |
| Income                  from                  continuing operations |   |                                                                                                       | (7     | )      |            |   | 86     |             |   |   | (19                            | )      |   |             | (2     | ) |   |   | 58 |   |
| Discontinued                  operations                            |   |                                                                                                       | -      |   |            |   | -      |             |   |   | -                              |   |   |             | 4      |   |   |   | 4 |   |
| Net                  Income                                         |   | $                                                                                                          | (7     | )      |            | $      | 86     |             |   | $      | (19                            | )      |   | $                | 2      |   |   | $ | 62 |   |

----

***Energy      Delivery Services – First Nine      Months of 2007 Compared to First Nine Months of 2006***

*Revenues–*

|                                           |   | **Nine                Months Ended** |   |     |   |
|------------------------------------------------|--------|--------------------------------------|--------|----------|--------|
|                                           |   | **September                30,**     |   |     |   |
| **Revenues                by Type of Service** |   | **2007**                             |   | **2006** |   | **Increase** |   |
|                                           |   | ***(In                millions)***   |   |
| Distribution                  services         |   | $                                    | 2,996  |     | $      | 2,972 |   | $ | 24 |   |
| Generation                  sales:             |   |                                 |   |     |   |   |   |   |   |   |
|    Retail                       |   |                                 | 2,417  |     |   | 2,138 |   |   | 279 |   |
|    Wholesale                    |   |                                 | 489    |     |   | 196 |   |   | 293 |   |
| Total                  generation sales        |   |                                 | 2,906  |     |   | 2,334 |   |   | 572 |   |
| Transmission                                   |   |                                 | 595    |     |   | 426 |   |   | 169 |   |
| Other                                          |   |                                 | 158    |     |   | 158 |   |   | - |   |
| Total                  Revenues                |   | $                                    | 6,655  |     | $      | 5,890 |   | $ | 765 |   |

| **Electric                Distribution KWH Deliveries** |   |   |   |
|---------------------------------------------------------|--------|--------|--------|
| Residential                                             |   |   | 4.4    |  % |
| Commercial                                              |   |   | 3.4    |  % |
| Industrial                                              |   |   | (0.4   | )% |
| Total                  Distribution KWH Deliveries      |   |   | 2.5    |  % |

| **Sources                  of Change in Generation Sales**          |   | **Increase****(Decrease)**         |   |
|---------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                |   | ***(In                millions)*** |   |
| Retail:                                                             |   |                               |   |   |
|   Effect                of 2% decrease in sales volumes   |   | $                                  | (38    | ) |
|   Change                in prices                         |   |                               | 317    |   |
|                                                                |   |                               | 279    |   |
| Wholesale:                                                          |   |                               |   |   |
|   Effect                of 118% increase in sales volumes |   |                               | 232    |   |
|   Change                in prices                         |   |                               | 61     |   |
|                                                                |   |                               | 293    |   |
| Net                Increase                in Generation Sales      |   | $                                  | 572    |   |

----

*Expenses–*

|   | · | Purchased                power costs were $495 million                higher in the first nine months of 2007 due to higher unit costs                and                volumes purchased. The increased unit costs reflected the effect                of higher                JCP&L costs resulting from the BGS auction process. The increased                purchases in 2007 were due primarily to higher sales to the wholesale                market.  The following table summarizes the sources of changes                in purchased power costs: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Sources                  of Change in Purchased Power**                                |   | **Increase**                       |   |
|------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                     |   | ***(In                millions)*** |   |
|                                                                                     |   |                               |   |   |
| Purchased                Power:                                                          |   |                               |   |   |
|    Change                due to increased unit costs                      |   | $                                  | 261    |   |
|    Change                due to increased volume                          |   |                               | 174    |   |
|    Decrease                in NUG costs deferred                          |   |                               | 60     |   |
|       Net                Increase in Purchased Power Costs |   | $                                  | 495    |   |

|   | · | Other                operating expenses increased $58 million due                to the                net effects of: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

| -   |  An                increase of $80 million in                MISO and                PJM transmission expenses, resulting primarily from higher congestion                costs. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   |                  A decrease in miscellaneous operating expenses of $10 million primarily                due                to changes in the assessment of regulatory fees and employee benefits                 from                FESC. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   |  A                decrease in operation and maintenance expenses of $9 million primarily                due                to increased labor activities devoted to construction projects in                2007. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Amortization                of regulatory assets increased $115 million compared                to                2006 due primarily to recovery of deferred BGS costs through higher                NUGC                rates for JCP&L as discussed                above. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                deferral                of new regulatory assets during the first nine months of 2007 was                $24 million higher in 2007 primarily due to the deferral of                previously expensed decommissioning costs of $27 million related                to                the Saxton nuclear research facility (see Outlook – State Regulatory                Matters - Pennsylvania), increased RCP distribution deferrals of                $23 million, offset by a reduction in deferred PJM transmission costs                of $30 million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Depreciation                expense increased $19 million and property taxes increased                $27 million due primarily to property additions since the third                quarter of 2006. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Other      Expense –*

***Competitive      Energy Services – First      Nine Months of 2007 Compared to First Nine Months of      2006***

----

*Revenues–*

|                                                   |   | **Nine                Months Ended** |   |         |   |
|--------------------------------------------------------|--------|--------------------------------------|--------|--------------|--------|
|                                                   |   | **September                30,**     |   | **Increase** |   |
| **Revenues                by Type of Service**         |   | **2007**                             |   | **2006**     |   | **(Decrease)** |   |
|                                                   |   | ***(In                millions)***   |   |
| Non-Affiliated                  Generation Sales:      |   |                                 |   |         |   |   |   |
| Retail                                                 |   | $                                    | 547    |         | $      | 445 |   | $ | 102 |   |
| Wholesale                                              |   |                                 | 425    |         |   | 509 |   |   | (84 | ) |
| Total                  Non-Affiliated Generation Sales |   |                                 | 972    |         |   | 954 |   |   | 18 |   |
| Affiliated                  Generation Sales           |   |                                 | 2,210  |         |   | 1,997 |   |   | 213 |   |
| Transmission                                           |   |                                 | 71     |         |   | 96 |   |   | (25 | ) |
| Other                                                  |   |                                 | 46     |         |   | 27 |   |   | 19 |   |
| Total                  Revenues                        |   | $                                    | 3,299  |         | $      | 3,074 |   | $ | 225 |   |

|                                                                                      |   | **Increase**                       |   |
|-------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
| **Source                  of Change in Non-Affiliated Generation                  Sales** |   | **(Decrease)**                     |   |
|                                                                                      |   | ***(In                millions)*** |   |
| Retail:                                                                                   |   |                               |   |   |
| Effect                of 12% increase in sales                volumes                     |   | $                                  | 52     |   |
| Change                in prices                                                           |   |                               | 50     |   |
|                                                                                      |   |                               | 102    |   |
| Wholesale:                                                                                |   |                               |   |   |
| Effect                of 26% decrease in sales                volumes                     |   |                               | (131   | ) |
| Change                in prices                                                           |   |                               | 47     |   |
|                                                                                      |   |                               | (84    | ) |
| Net                Increase                in Non-Affiliated Generation Sales             |   | $                                  | 18     |   |
|                                                                                      |   |                               |   |
| **Source                  of Change in Affiliated Generation Sales**                      |   | **Increase**                       |   |
|                                                                                      |   | ***(In                millions)*** |   |
| Ohio                Companies:                                                            |   |                               |   |   |
| Effect                of 4% increase in sales                volumes                      |   | $                                  | 56     |   |
| Change                in prices                                                           |   |                               | 89     |   |
|                                                                                      |   |                               | 145    |   |
| Pennsylvania                Companies:                                                    |   |                               |   |   |
| Effect                of 12% increase in sales                volumes                     |   |                               | 54     |   |
| Change                in prices                                                           |   |                               | 14     |   |
|                                                                                      |   |                               | 68     |   |
| Net                Increase                in Affiliated Generation Sales                 |   | $                                  | 213    |   |

----

*Expenses      -*

|   | · | Purchased                power costs increased $86 million due principally to higher volumes                for replacement power related to the forced outages at Bruce Mansfield                and                Perry. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Higher                fossil                operating costs of $43 million due to the absence of gains from the                sale of emissions allowances recognized in 2006 ($24 million) and                increased scheduled maintenance outages ($13                million). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Higher                depreciation expenses of $10 million were due to property                additions. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | Higher                general                taxes of $11 million resulted from increased gross receipts taxes and                property taxes. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Fuel                costs                were $41 million lower primarily due to reduced coal costs and                emission allowance costs offset by increases in nuclear fuel and                natural                gas costs. Coal costs were reduced due to a $14 million inventory                adjustment and $23 million of reduced coal consumption reflecting                lower generation. Reduced emission allowance costs ($18 million) were                partially offset by increased natural gas costs ($4 million) due to                increased consumption and nuclear fuel costs ($8 million) due to                increased consumption and higher                prices. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Other      Expense –*

***Ohio      Transitional Generation Services –First Nine Months of 2007 Compared to First Nine Months of      2006***

*Revenues–*

|                                           |   | **Nine                Months Ended** |   |         |   |
|------------------------------------------------|--------|--------------------------------------|--------|--------------|--------|
|                                           |   | **September                30,**     |   | **Increase** |   |
| **Revenues                by Type of Service** |   | **2007**                             |   | **2006**     |   | **(Decrease)** |   |
|                                           |   | ***(In                millions)***   |   |
| Generation                  sales:             |   |                                 |   |         |   |   |   |
| Retail                                         |   | $                                    | 1,712  |         | $      | 1,581 |   | $ | 131 |   |
| Wholesale                                      |   |                                 | 7      |         |   | 12 |   |   | (5 | ) |
| Total                  generation sales        |   |                                 | 1,719  |         |   | 1,593 |   |   | 126 |   |
| Transmission                                   |   |                                 | 248    |         |   | 213 |   |   | 35 |   |
| Other                                          |   |                                 | 1      |         |   | 2 |   |   | (1 | ) |
| Total                  Revenues                |   | $                                    | 1,968  |         | $      | 1,808 |   | $ | 160 |   |

| **Source                  of Change in Generation Sales**            |   | **Increase**                       |   |
|----------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                 |   | ***(In                millions)*** |   |
| Retail:                                                              |   |                               |   |   |
| Effect                of 4% increase in sales                volumes |   | $                                  | 66     |   |
| Change                in prices                                      |   |                               | 65     |   |
|  Total                Increase in Retail Generation Sales       |   | $                                  | 131    |   |

----

*Expenses      -*

| **Source                of Change in Purchased Power**                |   | **Increase**                       |   |
|-----------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                  |   | ***(In                millions)*** |   |
| Purchases                from                non-affiliates:          |   |                               |   |   |
| Change                due to increased unit                costs      |   | $                                  | 6      |   |
| Change                due to volume                purchased          |   |                               | 2      |   |
|                                                                  |   |                               | 8      |   |
| Purchases                from                FES:                     |   |                               |   |   |
| Change                due to increased unit                costs      |   |                               | 89     |   |
| Change                due to volume                purchased          |   |                               | 56     |   |
|                                                                  |   |                               | 145    |   |
| Total                Increase                in Purchased Power Costs |   | $                                  | 153    |   |

***Other–First      Nine Months of 2007      Compared to First Nine Months of 2006***

**CAPITAL      RESOURCES AND LIQUIDITY**

**Changes      in Cash      Position**

----

***Cash      Flows From Operating Activities***

|                                                     |   | **Nine                Months Ended** |   |
|----------------------------------------------------------|--------|--------------------------------------|--------|
|                                                     |   | **September                30,**     |   |
| **Operating                  Cash Flows**                |   | **2007**                             |   | **2006** |   |
|                                                     |   | ***(In                millions)***   |   |
| Net                income                                |   | $                                    | 1,041  |   | $ | 979 |   |
| Non-cash                charges                          |   |                                 | 358    |   |   | 497 |   |
| Pension                trust                contribution |   |                                 | (300   | ) |   | - |   |
| Working                capital and other                 |   |                                 | 52     |   |   | (233 | ) |
|                                                     |   | $                                    | 1,151  |   | $ | 1,243 |   |

----

***Cash      Flows From Financing Activities***

|                                               |   | **Nine                Months Ended** |   |
|----------------------------------------------------|--------|--------------------------------------|--------|
|                                               |   | **September                30,**     |   |
| **Securities                  Issued or Redeemed** |   | **2007**                             |   | **2006** |   |
|                                               |   | ***(In                millions)***   |   |
| *New                issues*                        |   |                                 |   |   |   |
| Pollution                control notes             |   | $                                    | -      |   | $ | 253 |   |
| Secured                notes                       |   |                                 | -      |   |   | 382 |   |
| Unsecured                notes                     |   |                                 | 1,100  |   |   | 600 |   |
|                                               |   | $                                    | 1,100  |   | $ | 1,235 |   |
| *Redemptions*                                      |   |                                 |   |   |   |   |   |
| First                mortgage                bonds |   | $                                    | 287    |   | $ | 1 |   |
| Pollution                control notes             |   |                                 | 4      |   |   | 311 |   |
| Senior                secured                notes |   |                                 | 203    |   |   | 181 |   |
| Unsecured                notes                     |   |                                 | 153    |   |   | 500 |   |
| Common                stock                        |   |                                 | 918    |   |   | 600 |   |
| Preferred                stock                     |   |                                 | -      |   |   | 107 |   |
|                                               |   | $                                    | 1,565  |   | $ | 1,700 |   |
|                                               |   |                                 |   |   |   |   |   |
| Short-term                borrowings, net          |   | $                                    | (535   | ) | $ | 482 |   |

| **Borrowing                Capability (In millions)**   |   |    |   |
|---------------------------------------------------------|--------|---------|--------|
| Short-term                credit facilities(1)          |   | $       | 2,870  |   |
| Accounts                receivable financing facilities |   |    | 550    |   |
| Utilized                                                |   |    | (570   | ) |
| LOCs                                                    |   |    | (337   | ) |
| Net                available                capability  |   |  $ | 2,513  |   |
|                                                    |   |    |   |   |

| (1)                Includes                the  $2.75 billion revolving credit facility described below, a                $100 million revolving credit facility that expires in December 2009                and a $20 million uncommitted line of                credit. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|            |   | **Revolving**                      |   | **Regulatory                and**        |   |
|-----------------|--------|------------------------------------|--------|------------------------------------------|--------|
|            |   | **Credit                Facility** |   | **Other                Short-Term**      |   |
| **Borrower**    |   | **Sub-Limit**                      |   | **Debt                  Limitations(1)** |   |
|            |   | ***(In                millions)*** |   |
| **FirstEnergy** |   | $                                  | 2,750  |                                     | $      | - | (2) |
| **OE**          |   |                               | 500    |                                     |   | 500 |   |
| **Penn**        |   |                               | 50     |                                     |   | 41 |   |
| **CEI**         |   |                               | 250    | (3)                                      |   | 500 |   |
| **TE**          |   |                               | 250    | (3)                                      |   | 500 |   |
| **JCP&L**   |   |                               | 425    |                                     |   | 423 |   |
| **Met-Ed**      |   |                               | 250    |                                     |   | 250 | (4) |
| **Penelec**     |   |                               | 250    |                                     |   | 250 | (4) |
| **FES**         |   |                               | 250    |                                     |   | - | (2) |
| **ATSI**        |   |                               | -      | (5)                                      |   | 50 |   |

|   | (1) | As                of                September 30, 2007. |
|--------|-----|--------------------------------------------------------------|

|   | (2) | No                regulatory                approvals, statutory or charter limitations                applicable. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (3) | Borrowing                sub-limits for CEI and TE may be increased to up to $500 million by                delivering notice to the administrative agent that such borrower                has                senior unsecured debt ratings of at least BBB by S&P and Baa2 by                Moody’s. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Excluding                amounts which may be borrowed under the regulated money                pool. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (5) | The                borrowing                sub-limit for ATSI may be increased up to $100 million by delivering                notice to the administrative agent that either (i) such borrower                has                senior unsecured debt ratings of at least BBB- by S&P and Baa3 by                Moody’s or (ii) FirstEnergy has guaranteed the obligations of such                borrower under the facility. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Borrower**    |   |   |
|-----------------|--------|--------|
| **FirstEnergy** |   | 57     | % |
| **OE**          |   | 47     | % |
| **Penn**        |   | 21     | % |
| **CEI**         |   | 60     | % |
| **TE**          |   | 55     | % |
| **JCP&L**   |   | 31     | % |
| **Met-Ed**      |   | 46     | % |
| **Penelec**     |   | 50     | % |
| **FES**         |   | 48     | % |

----

| **Issuer**  |   | **Securities**                                |   | **S&P** |   | **Moody’s** |
|-------------|--------|-----------------------------------------------|--------|-------------|--------|-------------------|
|        |   |                                          |   |        |   |              |
| FirstEnergy |   | Senior                unsecured               |   | BBB-        |   | Baa3              |
|        |   |                                          |   |        |   |              |
| OE          |   | Senior                unsecured               |   | BBB-        |   | Baa2              |
|        |   |                                          |   |        |   |              |
| CEI         |   | Senior                secured                 |   | BBB+        |   | Baa2              |
|        |   | Senior                unsecured               |   | BBB-        |   | Baa3              |
|        |   |                                          |   |        |   |              |
| TE          |   | Senior                unsecured               |   | BBB-        |   | Baa3              |
|        |   |                                          |   |        |   |              |
| Penn        |   | Senior                secured                 |   | A-          |   | Baa1              |
|        |   |                                          |   |        |   |              |
| JCP&L   |   | Senior                unsecured               |   | BBB         |   | Baa2              |
|        |   |                                          |   |        |   |              |
| Met-Ed      |   | Senior                unsecured               |   | BBB         |   | Baa2              |
|        |   |                                          |   |        |   |              |
| Penelec     |   | Senior                unsecured               |   | BBB         |   | Baa2              |
|        |   |                                          |   |        |   |              |
| FES         |   | Corporate                Credit/Issuer Rating |   | BBB         |   | Baa2              |

----

**Cash      Flows From Investing      Activities**

| **Summary                of Cash Flows**                         |   | **Property**                       |   |            |   |      |   |      |   |
|------------------------------------------------------------------|--------|------------------------------------|--------|-----------------|--------|-----------|--------|-----------|--------|
| **Provided                from (Used for) Investing Activities** |   | **Additions**                      |   | **Investments** |   | **Other** |   | **Total** |   |
| **Sources                (Uses)**                                |   | ***(In                millions)*** |   |
| **Nine                Months Ended September 30, 2007**          |   |                               |   |            |   |      |   |      |   |
| Energy                  delivery services                        |   | $                                  | (609   | )               | $      | 34        |   | $         | (2     | ) | $ | (577 | ) |
| Competitive                  energy services                     |   |                               | (462   | )               |   | 1,345     |   |      | (1     | ) |   | 882 |   |
| Other                                                            |   |                               | (56    | )               |   | (5        | )      |      | 2      |   |   | (59 | ) |
| Inter-Segment                  reconciling items                 |   |                               | -      |            |   | (15       | )      |      | -      |   |   | (15 | ) |
| Total                                                            |   | $                                  | (1,127 | )               | $      | 1,359     |   | $         | (1     | ) | $ | 231 |   |
|                                                             |   |                               |   |            |   |      |   |      |   |   |   |   |   |
| **Nine                  Months Ended September 30, 2006**        |   |                               |   |            |   |      |   |      |   |   |   |   |   |
| Energy                  delivery services                        |   | $                                  | (489   | )               | $      | 196       |   | $         | (8     | ) | $ | (301 | ) |
| Competitive                  energy services                     |   |                               | (473   | )               |   | (7        | )      |      | (1     | ) |   | (481 | ) |
| Other                                                            |   |                               | (28    | )               |   | 31        |   |      | 20     |   |   | 23 |   |
| Inter-Segment                  reconciling items                 |   |                               | -      |            |   | (63       | )      |      | -      |   |   | (63 | ) |
| Total                                                            |   | $                                  | (990   | )               | $      | 157       |   | $         | 11     |   | $ | (822 | ) |

**GUARANTEES      AND OTHER ASSURANCES**

----

|                                                                             |   | **Maximum**                        |   |
|----------------------------------------------------------------------------------|--------|------------------------------------|--------|
| **Guarantees                  and Other Assurances**                             |   | **Exposure**                       |   |
|                                                                             |   | ***(In                millions)*** |   |
| FirstEnergy                Guarantees of Subsidiaries                            |   |                               |   |
| Energy                and                Energy-Related Contracts (1)            |   | $                                  | 647    |   |
| LOC                (long-term                debt) – interest coverage (2) |   |                               | 9      |   |
| Other(3)                                                                         |   |                               | 575    |   |
|                                                                             |   |                               | 1,231  |   |
|                                                                             |   |                               |   |   |
| Subsidiaries’                Guarantees                                    |   |                               |   |   |
| Energy                and                Energy-Related Contracts                |   |                               | 37     |   |
| LOC                (long-term                debt) – interest coverage (2) |   |                               | 3      |   |
| Other(4)                                                                         |   |                               | 2,686  |   |
|                                                                             |   |                               | 2,726  |   |
|                                                                             |   |                               |   |   |
| Surety                Bonds                                                      |   |                               | 75     |   |
| LOC                (long-term                debt) – interest coverage (2) |   |                               | 5      |   |
| LOC                (non-debt)                (5)(6)                              |   |                               | 690    |   |
|                                                                             |   |                               |   |   |
| Total                Guarantees and Other Assurances                             |   | $                                  | 4,727  |   |

|   | (1) | Issued                for                open-ended terms, with a 10-day termination right by                FirstEnergy. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Reflects                the                interest coverage portion of LOCs issued in support of floating-rate                pollution control revenue bonds with various maturities. The principal                amount of floating-rate pollution control revenue bonds of                $1.6 billion is reflected in long-term debt on FirstEnergy’s                consolidated balance sheets. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Includes                guarantees of $300 million for OVEC obligations and $80 million                for nuclear decommissioning funding                assurances. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Includes                FES’                guarantee of FGCO’s obligations under the sale and leaseback of Bruce                Mansfield Unit 1. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Includes                $71 million issued for various terms pursuant to LOC capacity                available under FirstEnergy’s revolving credit                facility. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Includes                approximately $194 million pledged in connection with the sale and                leaseback of Beaver Valley Unit 2 by CEI and TE, $291 million pledged                in connection with the sale and leaseback of Beaver Valley Unit 2                by OE                and $134 million pledged in connection with the sale and leaseback of                Perry Unit 1 by OE. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**OFF-BALANCE      SHEET ARRANGEMENTS**

**MARKET      RISK      INFORMATION**

**Commodity      Price      Risk**

|                                                                                                        | **Three                Months Ended** |   | **Nine                Months Ended**  |   |
|-------------------------------------------------------------------------------------------------------------|---------------------------------------|--------|---------------------------------------|--------|
| **Increase                (Decrease) in the Fair Value**                                                    | **September                30, 2007** |   | **September                30, 2007** |   |
| **of                Commodity Derivative Contracts**                                                        | **Non-Hedge**                         |   | **Hedge**                             |   | **Total** |   | **Non-Hedge** |   | **Hedge** |   | **Total** |   |
|                                                                                                        | ***(In                millions)***    |   |
| **Change                in the Fair Value of**                                                              |                                  |   |                                  |   |   |   |   |   |   |   |   |   |
| **Commodity                Derivative Contracts:**                                                          |                                  |   |                                  |   |   |   |   |   |   |   |   |   |
| Outstanding                net liability at beginning of period                                             | $                                     | (845   | )                                     | $      | (12 | ) | $ | (857 | ) | $ | (1,140 | ) | $ | (17 | ) | $ | (1,157 | ) |
| Additions/change                in value of existing contracts                                              |                                  | (38    | )                                     |   | - |   |   | (38 | ) |   | 69 |   |   | (6 | ) |   | 63 |   |
| Settled                contracts                                                                            |                                  | 47     |                                  |   | 5 |   |   | 52 |   |   | 235 |   |   | 16 |   |   | 251 |   |
| Outstanding                net liability at end of period (1)                                               |                                  | (836   | )                                     |   | (7 | ) |   | (843 | ) |   | (836 | ) |   | (7 | ) |   | (843 | ) |
|                                                                                                        |                                  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Non-commodity                Net Liabilities at End of Period:**                                          |                                  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                rate                swaps (2)                                                       |                                  | -      |                                  |   | (8 | ) |   | (8 | ) |   | - |   |   | (8 | ) |   | (8 | ) |
| **Net                Liabilities - Derivative Contracts****at                End                of Period** | $                                     | (836   | )                                     | $      | (15 | ) | $ | (851 | ) | $ | (836 | ) | $ | (15 | ) | $ | (851 | ) |
|                                                                                                        |                                  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Impact                of Changes in Commodity Derivative Contracts(3)**                                   |                                  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                Statement effects (pre-tax)                                                           | $                                     | 4      |                                  | $      | - |   | $ | 4 |   | $ | 4 |   | $ | - |   | $ | 4 |   |
| Balance                Sheet                effects:                                                        |                                  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (pre-tax)                                                         | $                                     | -      |                                  | $      | 5 |   | $ | 5 |   | $ | - |   | $ | 10 |   | $ | 10 |   |
| Regulatory                assets (net)                                                                      | $                                     | (5     | )                                     | $      | - |   | $ | (5 | ) | $ | (300 | ) | $ | - |   | $ | (300 | ) |

| (1) | Includes                $836 million in non-hedge commodity derivative contracts (primarily                with NUGs), which are offset by a regulatory                asset. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Interest                rate                swaps are treated as cash flow or fair value hedges (see Interest                Rate                Swap Agreements below). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents                the                change in value of existing contracts, settled contracts and changes                in                techniques/assumptions. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **Balance                  Sheet Classification**        |   | **Non-Hedge**                      |   | **Hedge** |   | **Total** |   |
|----------------------------------------------------------|--------|------------------------------------|--------|-----------|--------|-----------|--------|
|                                                     |   | ***(In                millions)*** |   |
| **Current-**                                             |   |                               |   |      |   |      |   |
| Other                  assets                            |   | $                                  | -      |      | $      | 42        |   | $ | 42 |   |
| Other                  liabilities                       |   |                               | -      |      |   | (51       | )      |   | (51 | ) |
|                                                     |   |                               |   |      |   |      |   |   |   |   |
| **Non-Current-**                                         |   |                               |   |      |   |      |   |   |   |   |
| Other                  deferred                  charges |   |                               | 36     |      |   | 16        |   |   | 52 |   |
| Other                  non-current liabilities           |   |                               | (872   | )         |   | (22       | )      |   | (894 | ) |
|                                                     |   |                               |   |      |   |      |   |   |   |   |
| Net                  liabilities                         |   | $                                  | (836   | )         | $      | (15       | )      | $ | (851 | ) |

| **Source                of Information**                            |   |                               |   |     |   |     |   |     |   |     |   |           |   |      |   |
|---------------------------------------------------------------------|--------|------------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------------|--------|-----------|--------|
| **-                  Fair                  Value by Contract Year** |   | **2007**(1)                        |   | **2008** |   | **2009** |   | **2010** |   | **2011** |   | **Thereafter** |   | **Total** |   |
|                                                                |   | ***(In                millions)*** |   |
| Prices                actively quoted(2)                            |   | $                                  | -      |     | $      | -        |   | $        | -      |     | $      | -              |   |  $   | -      |   | $ | - |   | $ | - |   |
| Other                external                sources(3)             |   |                               | (60    | )        |   | (239     | )      |     | (173   | )        |   | (150           | )      |      | -      |   |   | - |   |   | (622 | ) |
| Prices                based                on models                |   |                               | -      |     |   | -        |   |     | -      |     |   | -              |   |      | (114   | ) |   | (107 | ) |   | (221 | ) |
| **Total(4)**                                                        |   | $                                  | (60    | )        | $      | (239     | )      | $        | (173   | )        | $      | (150           | )      | $         | (114   | ) | $ | (107 | ) | $ | (843 | ) |

**Interest      Rate Swap Agreements- Fair      Value Hedges**

|                                            |   | **September                30, 2007** |   | **December                31, 2006** |   |
|-------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                            |   | **Notional**                          |   | **Maturity**                         |   | **Fair** |   | **Notional** |   | **Maturity** |   | **Fair** |   |
| **Interest                  Rate Swaps**        |   | **Amount**                            |   | **Date**                             |   | **Value** |   | **Amount** |   | **Date** |   | **Value** |   |
|                                            |   | ***(In                millions)***    |   |
| Fair                value                hedges |   | $                                     | 100    |                                 |   | 2008 |   | $ | (1 | ) | $ | 100 |   |   | 2008 |   | $ | (2 | ) |
|                                            |   |                                  | 50     |                                 |   | 2010 |   |   | - |   |   | 50 |   |   | 2010 |   |   | (1 | ) |
|                                            |   |                                  | 300    |                                 |   | 2013 |   |   | (4 | ) |   | 300 |   |   | 2013 |   |   | (6 | ) |
|                                            |   |                                  | 150    |                                 |   | 2015 |   |   | (9 | ) |   | 150 |   |   | 2015 |   |   | (10 | ) |
|                                            |   |                                  | -      |                                 |   | 2025 |   |   | - |   |   | 50 |   |   | 2025 |   |   | (2 | ) |
|                                            |   |                                  | -      |                                 |   | 2031 |   |   | - |   |   | 100 |   |   | 2031 |   |   | (6 | ) |
|                                            |   | $                                     | 600    |                                 |   |   |   | $ | (14 | ) | $ | 750 |   |   |   |   | $ | (27 | ) |

----

**Forward      Starting Swap Agreements -      Cash Flow Hedges**

|                                           |   | **September                30, 2007** |   | **December                31, 2006** |   |
|------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                           |   | **Notional**                          |   | **Maturity**                         |   | **Fair** |   | **Notional** |   | **Maturity** |   | **Fair** |   |
| **Forward                  Starting Swaps**    |   | **Amount**                            |   | **Date**                             |   | **Value** |   | **Amount** |   | **Date** |   | **Value** |   |
|                                           |   | ***(In                millions)***    |   |
| Cash                flow                hedges |   | $                                     | 25     |                                 |   | 2015 |   | $ | - |   | $ | 25 |   |   | 2015 |   | $ | - |   |
|                                           |   |                                  | 300    |                                 |   | 2017 |   |   | 5 |   |   | 200 |   |   | 2017 |   |   | (4 | ) |
|                                           |   |                                  | 25     |                                 |   | 2018 |   |   | (1 | ) |   | 25 |   |   | 2018 |   |   | (1 | ) |
|                                           |   |                                  | 50     |                                 |   | 2020 |   |   | 1 |   |   | 50 |   |   | 2020 |   |   | 1 |   |
|                                           |   | $                                     | 400    |                                 |   |   |   | $ | 5 |   | $ | 300 |   |   |   |   | $ | (4 | ) |

**Equity      Price      Risk**

**CREDIT      RISK**

**Outlook**

***State      Regulatory      Matters***

| · | restructuring                the electric generation business and allowing the Companies' customers                to                select a competitive electric generation supplier other than the                Companies;         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                    |
| · | establishing                or defining the PLR obligations to customers in the Companies' service                areas;                                                                                                                |
|   |                                                                                                                                                                                                                                    |
| · | providing                the                Companies with the opportunity to recover potentially stranded investment                (or transition costs) not otherwise recoverable in a competitive                generation market; |

----

|   |                                                                                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | itemizing                (unbundling) the price of electricity into its component elements–                including generation, transmission, distribution and stranded costs                recovery charges; |
|   |                                                                                                                                                                                                                  |
| · | continuing                regulation of the Companies' transmission and distribution systems;                and                                                                                                      |
|   |                                                                                                                                                                                                                  |
| · | requiring                corporate separation of regulated and unregulated business                activities.                                                                                                        |

|                                  |   | **September                30,**   |   | **December                31,** |   | **Increase**   |   |
|---------------------------------------|--------|------------------------------------|--------|---------------------------------|--------|----------------|--------|
| **Regulatory                Assets*** |   | **2007**                           |   | **2006**                        |   | **(Decrease)** |   |
|                                  |   | ***(In                millions)*** |   |
| OE                                    |   | $                                  | 717    |                            | $      | 741            |   | $ | (24 | ) |
| CEI                                   |   |                               | 856    |                            |   | 855            |   |   | 1 |   |
| TE                                    |   |                               | 215    |                            |   | 248            |   |   | (33 | ) |
| JCP&L                             |   |                               | 1,758  |                            |   | 2,152          |   |   | (394 | ) |
| Met-Ed                                |   |                               | 459    |                            |   | 409            |   |   | 50 |   |
| ATSI                                  |   |                               | 42     |                            |   | 36             |   |   | 6 |   |
| Total                                 |   | $                                  | 4,047  |                            | $      | 4,441          |   | $ | (394 | ) |

|  * | Penelec                had                net regulatory liabilities of approximately $77 million and                $96 million as of September 30, 2007 and December 31,                2006,                respectively. These net regulatory liabilities are included in                Other                Non-current Liabilities on the Consolidated Balance                Sheets. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | **September                30,**   |   | **December                31,** |   | **Increase**   |   |
|-------------------------------------------------------------|--------|------------------------------------|--------|---------------------------------|--------|----------------|--------|
| **Regulatory                Assets By Source**              |   | **2007**                           |   | **2006**                        |   | **(Decrease)** |   |
|                                                        |   | ***(In                millions)*** |   |
| Regulatory                transition costs                  |   |  $                            | 2,583  |                            | $      | 3,266          |   | $ | (683 | ) |
| Customer                shopping incentives                 |   |                               | 537    |                            |   | 603            |   |   | (66 | ) |
| Customer                receivables for future income taxes |   |                               | 257    |                            |   | 217            |   |   | 40 |   |
| Societal                benefits charge                     |   |                               | (11    | )                               |   | 11             |   |   | (22 | ) |
| Loss                on                reacquired debt       |   |                               | 58     |                            |   | 43             |   |   | 15 |   |
| Employee                postretirement benefits             |   |                               | 41     |                            |   | 47             |   |   | (6 | ) |
| Nuclear                decommissioning, decontamination     |   |                               |   |                            |   |           |   |   |   |   |
| and                spent fuel                disposal costs |   |                               | (118   | )                               |   | (145           | )      |   | 27 |   |
| Asset                removal                costs           |   |                               | (177   | )                               |   | (168           | )      |   | (9 | ) |
| Property                losses and unrecovered plant costs  |   |                               | 11     |                            |   | 19             |   |   | (8 | ) |
| MISO/PJM                transmission costs                  |   |                               | 309    |                            |   | 213            |   |   | 96 |   |
| Fuel                costs -                RCP              |   |                               | 175    |                            |   | 113            |   |   | 62 |   |
| Distribution                costs - RCP                     |   |                               | 298    |                            |   | 155            |   |   | 143 |   |
| Other                                                       |   |                               | 84     |                            |   | 67             |   |   | 17 |   |
| Total                                                       |   | $                                  | 4,047  |                            | $      | 4,441          |   | $ | (394 | ) |

----

***Reliability      Initiatives***

*First*
*First*

----

*yFirst*
*First*

***Ohio***

| **Amortization**                      |   |                               |   |    |   |   |   |           |  **Total** |   |
|---------------------------------------|--------|------------------------------------|--------|---------|--------|--------|--------|----------------|-----------------|--------|
| **Period**                            |   | **OE**                             |   | **CEI** |   | **TE** |   |  **Ohio** |            |
|                                  |   | ***(In                millions)*** |   |
| 2007                                  |   | **$**                              | 176    |    | **$**  | 108    |   | **$**          | 92              |   | **$** | 376 |   |
| 2008                                  |   |                               | 209    |    |   | 126    |   |           | 113             |   |   | 448 |   |
| 2009                                  |   |                               | -      |    |   | 217    |   |           | -               |   |   | 217 |   |
| 2010                                  |   |                               | -      |    |   | 269    |   |           | -               |   |   | 269 |   |
| **Total                Amortization** |   | **$**                              | 385    |    | **$**  | 720    |   | **$**          | 205             |   | **$** | 1,310 |   |

----

***Pennsylvania***

----

----

***New      Jersey***

----

| ·   | Meet                22.5% of                New Jersey’s electricity needs with renewable energy resources by that                date; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  Achieve                a 20% reduction in both Customer Average Interruption Duration Index                and                System Average Interruption Frequency Index by                2020; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Maintain                unit                prices for electricity to no more than +5% of the regional average                price                (region includes New York, New Jersey, Pennsylvania, Delaware, Maryland                and the District of Columbia); and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***FERC      Matters***

----

*** ***

*   New      FERC Transmission Rate      Design Filings*

----

*   MISO      Ancillary Services      Market and Balancing Area Consolidation Filing*

*   Order      No. 890 on Open Access      Transmission Tariffs*

***Environmental      Matters***

*Clean      Air Act Compliance*

----

*National      Ambient Air Quality      Standards*

*Mercury      Emissions*

----

*W.      H. Sammis Plant*

*Climate      Change*

----

*Clean      Water Act*

*Regulation      of Hazardous Waste*

***Other      Legal      Proceedings***

----

*Power      Outages and Related      Litigation*

----

*Nuclear      Plant Matters*

*Other      Legal Matters*

----

**NEW      ACCOUNTING STANDARDS AND INTERPRETATIONS**

*SFAS      157 – “Fair Value      Measurements”*

|   | *SFAS                159 –                “The Fair Value Option for Financial Assets and Financial Liabilities–                Including an amendment of FASB Statement No.                115”* |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

* *
*. *

*EITF      06-11 – “Accounting for Income Tax      Benefits of Dividends or Share-based Payment Awards”*

*FSP      FIN 39-1 – “Amendment of FASB      Interpretation No. 39”*

----

| **FIRSTENERGY                  SOLUTIONS CORP.**                                                                                                                                                           |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**                                                                                                                            |   |
| **(Unaudited)**                                                                                                                                                                                            |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                       |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                                                       |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                                                                                                                                                                       |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                       |   | ***(In                  thousands)***          |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES:**                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                  sales                  to affiliates                                                                                                                                             |   | $ | 805,372 |   |   | $ | 762,106 |   |   | $ | 2,209,743 |   |   | $ | 1,997,096 |   |
| Other                                                                                                                                                                                                      |   |   | 365,536 |   |   |   | 347,474 |   |   |   | 1,048,189 |   |   |   | 1,063,026 |   |
| Total                  revenues                                                                                                                                                                            |   |   | 1,170,908 |   |   |   | 1,109,580 |   |   |   | 3,257,932 |   |   |   | 3,060,122 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                                                                                                                                                                                                       |   |   | 301,786 |   |   |   | 315,521 |   |   |   | 804,201 |   |   |   | 844,913 |   |
| Purchased                  power from non-affiliates                                                                                                                                                       |   |   | 228,755 |   |   |   | 173,620 |   |   |   | 577,831 |   |   |   | 477,249 |   |
| Purchased                  power from affiliates                                                                                                                                                           |   |   | 62,508 |   |   |   | 55,647 |   |   |   | 209,576 |   |   |   | 188,698 |   |
| Other                  operating expenses                                                                                                                                                                  |   |   | 235,033 |   |   |   | 198,716 |   |   |   | 731,774 |   |   |   | 774,767 |   |
| Provision                  for                  depreciation                                                                                                                                               |   |   | 48,500 |   |   |   | 46,894 |   |   |   | 145,030 |   |   |   | 135,414 |   |
| General                  taxes                                                                                                                                                                             |   |   | 22,242 |   |   |   | 17,609 |   |   |   | 64,870 |   |   |   | 55,550 |   |
| Total                  expenses                                                                                                                                                                            |   |   | 898,824 |   |   |   | 808,007 |   |   |   | 2,533,282 |   |   |   | 2,476,591 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                  INCOME**                                                                                                                                                                      |   |   | 272,084 |   |   |   | 301,573 |   |   |   | 724,650 |   |   |   | 583,531 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  INCOME (EXPENSE):**                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                  income                                                                                                                                                                      |   |   | 12,655 |   |   |   | 27,662 |   |   |   | 47,756 |   |   |   | 44,843 |   |
| Interest                  expense to affiliates                                                                                                                                                            |   |   | (9,641 | ) |   |   | (41,416 | ) |   |   | (61,904 | ) |   |   | (122,664 | ) |
| Interest                  expense - other                                                                                                                                                                  |   |   | (31,794 | ) |   |   | (7,914 | ) |   |   | (70,845 | ) |   |   | (17,880 | ) |
| Capitalized                  interest                                                                                                                                                                      |   |   | 5,131 |   |   |   | 2,389 |   |   |   | 12,763 |   |   |   | 8,698 |   |
| Total                  other                  expense                                                                                                                                                      |   |   | (23,649 | ) |   |   | (19,279 | ) |   |   | (72,230 | ) |   |   | (87,003 | ) |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  BEFORE INCOME TAXES**                                                                                                                                                            |   |   | 248,435 |   |   |   | 282,294 |   |   |   | 652,420 |   |   |   | 496,528 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  TAXES**                                                                                                                                                                          |   |   | 93,671 |   |   |   | 106,175 |   |   |   | 243,736 |   |   |   | 184,572 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                                                            |   |   | 154,764 |   |   |   | 176,119 |   |   |   | 408,684 |   |   |   | 311,956 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  COMPREHENSIVE INCOME (LOSS):**                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                  and                  other postretirement benefits                                                                                                                                |   |   | (1,360 | ) |   |   | - |   |   |   | (4,080 | ) |   |   | - |   |
| Unrealized                  gain (loss) on derivative hedges                                                                                                                                               |   |   | 4,863 |   |   |   | (6,257 | ) |   |   | 9,451 |   |   |   | (6,376 | ) |
| Change                  in                  unrealized gain on available for sale securities                                                                                                               |   |   | 21,263 |   |   |   | 20,945 |   |   |   | 80,053 |   |   |   | 29,266 |   |
| Other                  comprehensive income                                                                                                                                                                |   |   | 24,766 |   |   |   | 14,688 |   |   |   | 85,424 |   |   |   | 22,890 |   |
| Income                  tax                  expense related to other                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   comprehensive                  income                                                                                                                                                          |   |   | 8,915 |   |   |   | 5,453 |   |   |   | 30,474 |   |   |   | 8,548 |   |
| Other                  comprehensive income, net of tax                                                                                                                                                    |   |   | 15,851 |   |   |   | 9,235 |   |   |   | 54,950 |   |   |   | 14,342 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                  COMPREHENSIVE INCOME**                                                                                                                                                            |   | $ | 170,615 |   |   | $ | 185,354 |   |   | $ | 463,634 |   |   | $ | 326,298 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to FirstEnergy                  Solutions Corp. are an integral part of      |   |
| these                  statements.                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **FIRSTENERGY                  SOLUTIONS CORP.**                                                                                                                                         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                     |   |   |   |   |   |   |
| **CONSOLIDATED                  BALANCE SHEETS**                                                                                                                                         |   |
| **(Unaudited)**                                                                                                                                                                          |   |
|                                                                                                                                                                                     |   | **September                  30,** |   |   | **December                  31,** |   |
|                                                                                                                                                                                     |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                     |   | ***(In                  thousands)*** |   |
| **ASSETS**                                                                                                                                                                               |   |   |   |   |   |   |
| **CURRENT                  ASSETS:**                                                                                                                                                     |   |   |   |   |   |   |
| Cash                  and cash                  equivalents                                                                                                                              |   | $ | 2 |   |   | $ | 2 |   |
| Receivables-                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Customers                  (less accumulated provisions of $8,007,000 and $7,938,000,                                                                                                    |   |   |   |   |   |   |   |   |
| respectively,                  for uncollectible accounts)                                                                                                                               |   |   | 144,443 |   |   |   | 129,843 |   |
| Associated                  companies                                                                                                                                                    |   |   | 285,462 |   |   |   | 235,532 |   |
| Other                  (less                  accumulated provisions of $9,000 and $5,593,000,                                                                                           |   |   |   |   |   |   |   |   |
| respectively,                  for uncollectible accounts)                                                                                                                               |   |   | 5,416 |   |   |   | 4,085 |   |
| Notes                  receivable from associated companies                                                                                                                              |   |   | 242,612 |   |   |   | 752,919 |   |
| Materials                  and                  supplies, at average cost                                                                                                                |   |   | 441,066 |   |   |   | 460,239 |   |
| Prepayments                  and other                                                                                                                                                   |   |   | 83,825 |   |   |   | 57,546 |   |
|                                                                                                                                                                                     |   |   | 1,202,826 |   |   |   | 1,640,166 |   |
| **PROPERTY,                  PLANT AND EQUIPMENT:**                                                                                                                                      |   |   |   |   |   |   |   |   |
| In                  service                                                                                                                                                              |   |   | 8,183,578 |   |   |   | 8,355,344 |   |
| Less                  -                  Accumulated provision for depreciation                                                                                                          |   |   | 3,852,896 |   |   |   | 3,818,268 |   |
|                                                                                                                                                                                     |   |   | 4,330,682 |   |   |   | 4,537,076 |   |
| Construction                  work in progress                                                                                                                                           |   |   | 596,879 |   |   |   | 339,886 |   |
|                                                                                                                                                                                     |   |   | 4,927,561 |   |   |   | 4,876,962 |   |
| **OTHER                  PROPERTY AND INVESTMENTS:**                                                                                                                                     |   |   |   |   |   |   |   |   |
| Nuclear                  plant                  decommissioning trusts                                                                                                                   |   |   | 1,342,083 |   |   |   | 1,238,272 |   |
| Long-term                  notes receivable from associated companies                                                                                                                    |   |   | 62,900 |   |   |   | 62,900 |   |
|   Other                                                                                                                                                                        |   |   | 39,964 |   |   |   | 72,509 |   |
|                                                                                                                                                                                     |   |   | 1,444,947 |   |   |   | 1,373,681 |   |
| **DEFERRED                  CHARGES AND OTHER ASSETS:**                                                                                                                                  |   |   |   |   |   |   |   |   |
| Accumulated                  deferred income taxes                                                                                                                                       |   |   | 240,182 |   |   |   | - |   |
| Goodwill                                                                                                                                                                                 |   |   | 24,248 |   |   |   | 24,248 |   |
| Property                  taxes                                                                                                                                                          |   |   | 44,111 |   |   |   | 44,111 |   |
| Pension                  assets                                                                                                                                                          |   |   | 9,449 |   |   |   | - |   |
|                    Other                                                                                                                                                            |   |   | 70,638 |   |   |   | 39,839 |   |
|                                                                                                                                                                                     |   |   | 388,628 |   |   |   | 108,198 |   |
|                                                                                                                                                                                     |   | $ | 7,963,962 |   |   | $ | 7,999,007 |   |
| **LIABILITIES                  AND CAPITALIZATION**                                                                                                                                      |   |   |   |   |   |   |   |   |
| **CURRENT                  LIABILITIES:**                                                                                                                                                |   |   |   |   |   |   |   |   |
| Currently                  payable long-term debt                                                                                                                                        |   | $ | 1,469,721 |   |   | $ | 1,469,660 |   |
| Short-term                  borrowings-                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Associated                  companies                                                                                                                                                    |   |   | 237,070 |   |   |   | 1,022,197 |   |
| Accounts                  payable-                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Associated                  companies                                                                                                                                                    |   |   | 432,695 |   |   |   | 556,049 |   |
| Other                                                                                                                                                                                    |   |   | 177,820 |   |   |   | 136,631 |   |
| Accrued                  taxes                                                                                                                                                           |   |   | 537,060 |   |   |   | 113,231 |   |
|                    Other                                                                                                                                                            |   |   | 163,239 |   |   |   | 100,941 |   |
|                                                                                                                                                                                     |   |   | 3,017,605 |   |   |   | 3,398,709 |   |
| **CAPITALIZATION:**                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Common                  stockholder's equity-                                                                                                                                            |   |   |   |   |   |   |   |   |
| Common                  stock,                  without par value, authorized 750 shares-                                                                                                |   |   |   |   |   |   |   |   |
| 7                  and 8 shares                  outstanding, respectively                                                                                                               |   |   | 1,163,934 |   |   |   | 1,050,302 |   |
| Accumulated                  other comprehensive income                                                                                                                                  |   |   | 166,673 |   |   |   | 111,723 |   |
| Retained                  earnings                                                                                                                                                       |   |   | 1,038,412 |   |   |   | 697,338 |   |
| Total                  common                  stockholder's equity                                                                                                                      |   |   | 2,369,019 |   |   |   | 1,859,363 |   |
| Long-term                  debt                                                                                                                                                          |   |   | 505,196 |   |   |   | 1,614,222 |   |
|                                                                                                                                                                                     |   |   | 2,874,215 |   |   |   | 3,473,585 |   |
| **NONCURRENT                  LIABILITIES:**                                                                                                                                             |   |   |   |   |   |   |   |   |
| Deferred                  gain                  on sale and leaseback transaction                                                                                                        |   |   | 1,068,769 |   |   |   | - |   |
| Accumulated                  deferred income taxes                                                                                                                                       |   |   | - |   |   |   | 121,449 |   |
| Accumulated                  deferred investment tax credits                                                                                                                             |   |   | 62,275 |   |   |   | 65,751 |   |
| Asset                  retirement obligation                                                                                                                                             |   |   | 797,357 |   |   |   | 760,228 |   |
| Retirement                  benefits                                                                                                                                                     |   |   | 53,505 |   |   |   | 103,027 |   |
| Property                  taxes                                                                                                                                                          |   |   | 44,433 |   |   |   | 44,433 |   |
|                    Other                                                                                                                                                            |   |   | 45,803 |   |   |   | 31,825 |   |
|                                                                                                                                                                                     |   |   | 2,072,142 |   |   |   | 1,126,713 |   |
| **COMMITMENTS                  AND CONTINGENCIES (Note 10)**                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                     |   | $ | 7,963,962 |   |   | $ | 7,999,007 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they related to FirstEnergy                  Solutions Corp. are an integral part of these |
| balance                  sheets.                                                                                                                                                         |   |   |   |   |   |   |   |   |

----

| **FIRSTENERGY                    SOLUTIONS CORP.**                                                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                      |   |   |   |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF CASH FLOWS**                                                                                                                              |   |
| **(Unaudited)**                                                                                                                                                                           |   |
|                                                                                                                                                                                      |   |   |   |   |   |   |
|                                                                                                                                                                                      |   | **Nine                    Months Ended** |   |
|                                                                                                                                                                                      |   | **September                    30,** |   |
|                                                                                                                                                                                      |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                      |   | ***(In                    thousands)*** |   |
|                                                                                                                                                                                      |   |   |   |   |   |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                              |   |   |   |   |   |   |
| Net                    income                                                                                                                                                             |   | $ | 408,684 |   |   | $ | 311,956 |   |
| Adjustments                    to                    reconcile net income to net cash from operating                    activities-                                                       |   |   |   |   |   |
| Provision                    for                    depreciation                                                                                                                          |   |   | 145,030 |   |   |   | 135,414 |   |
| Nuclear                    fuel                    and lease amortization                                                                                                                 |   |   | 75,102 |   |   |   | 66,360 |   |
| Deferred                    income taxes and investment tax credits, net                                                                                                                  |   |   | (381,042 | ) |   |   | 47,188 |   |
| Investment                    impairment                                                                                                                                                  |   |   | 14,296 |   |   |   | - |   |
| Accrued                    compensation and retirement benefits                                                                                                                           |   |   | 3,414 |   |   |   | 13,704 |   |
| Commodity                    derivative transactions, net                                                                                                                                 |   |   | 4,913 |   |   |   | 46,500 |   |
| Gain                    on asset                    sales                                                                                                                                 |   |   | (12,105 | ) |   |   | (35,973 | ) |
| Cash                    collateral, net                                                                                                                                                   |   |   | (19,798 | ) |   |   | 20,643 |   |
| Pension                    trust                    contribution                                                                                                                          |   |   | (64,020 | ) |   |   | - |   |
| Decrease                    (increase) in operating assets:                                                                                                                               |   |   |   |   |   |   |   |   |
| Receivables                                                                                                                                                                               |   |   | (30,172 | ) |   |   | (46,063 | ) |
| Materials                    and                    supplies                                                                                                                              |   |   | 48,123 |   |   |   | (1,683 | ) |
| Prepayments                    and other current assets                                                                                                                                   |   |   | (5,118 | ) |   |   | 211 |   |
| Increase                    (decrease) in operating liabilities:                                                                                                                          |   |   |   |   |   |   |   |   |
| Accounts                    payable                                                                                                                                                       |   |   | (108,949 | ) |   |   | (162,502 | ) |
| Accrued                    taxes                                                                                                                                                          |   |   | 424,100 |   |   |   | 77,524 |   |
| Accrued                    interest                                                                                                                                                       |   |   | 14,355 |   |   |   | 2,431 |   |
| Other                                                                                                                                                                                     |   |   | (36,498 | ) |   |   | (17,605 | ) |
| Net                    cash                    provided from operating activities                                                                                                         |   |   | 480,315 |   |   |   | 458,105 |   |
|                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                              |   |   |   |   |   |   |   |   |
| New                    Financing-                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Long-term                    debt                                                                                                                                                         |   |   | - |   |   |   | 251,945 |   |
| Equity                    contributions from parent                                                                                                                                       |   |   | 710,468 |   |   |   | - |   |
| Short-term                    borrowings, net                                                                                                                                             |   |   | - |   |   |   | 66,817 |   |
| Redemptions                    and Repayments-                                                                                                                                            |   |   |   |   |   |   |   |   |
| Common                    stock                                                                                                                                                           |   |   | (600,000 | ) |   |   | - |   |
| Long-term                    debt                                                                                                                                                         |   |   | (1,110,174 | ) |   |   | (253,240 | ) |
| Short-term                    borrowings, net                                                                                                                                             |   |   | (785,127 | ) |   |   | - |   |
| Common                    stock                    dividend payments                                                                                                                      |   |   | (67,000 | ) |   |   | - |   |
| Net                    cash                    provided from (used for) financing activities                                                                                              |   |   | (1,851,833 | ) |   |   | 65,522 |   |
|                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                              |   |   |   |   |   |   |   |   |
| Property                    additions                                                                                                                                                     |   |   | (482,907 | ) |   |   | (427,298 | ) |
| Proceeds                    from                    asset sales                                                                                                                           |   |   | 12,990 |   |   |   | 20,437 |   |
| Proceeds                    from                    sale and leaseback transaction                                                                                                        |   |   | 1,328,919 |   |   |   | - |   |
| Sales                    of                    investment securities held in trusts                                                                                                       |   |   | 521,535 |   |   |   | 886,863 |   |
| Purchases                    of                    investment securities held in trusts                                                                                                   |   |   | (521,535 | ) |   |   | (886,863 | ) |
| Loan                    repayments from (loans to) associated companies, net                                                                                                              |   |   | 510,307 |   |   |   | (88,292 | ) |
| Other                                                                                                                                                                                     |   |   | 2,209 |   |   |   | (28,474 | ) |
| Net                    cash                    provided from (used for) investing activities                                                                                              |   |   | 1,371,518 |   |   |   | (523,627 | ) |
|                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Net                    change in                    cash and cash equivalents                                                                                                             |   |   | - |   |   |   | - |   |
| Cash                    and cash                    equivalents at beginning of period                                                                                                    |   |   | 2 |   |   |   | 2 |   |
| Cash                    and cash                    equivalents at end of period                                                                                                          |   | $ | 2 |   |   | $ | 2 |   |
|                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    FirstEnergy                    Solutions Corp. are an |
| integral                    part                    of these statements.                                                                                                                  |   |   |   |   |   |   |   |   |

----

***Report      of Independent Registered Public Accounting Firm***

----

**FIRSTENERGY      SOLUTIONS CORP.**

**MANAGEMENT’S      NARRATIVE**

**ANALYSIS      OF      RESULTS OF OPERATIONS**

**Results      of Operations**

*Revenues*

----

|                                                   |   | **Nine  Months                Ended** |   |         |   |
|--------------------------------------------------------|--------|-------------------------------------------------|--------|--------------|--------|
|                                                   |   | **Sept                30,**                     |   | **Increase** |   |
| **Revenues                by Type of Service**         |   | **2007**                                        |   | **2006**     |   | **(Decrease)** |   |
|                                                   |   | ***(In                millions)***              |   |
| Non-Affiliated                  Generation Sales:      |   |                                            |   |         |   |   |   |
| Retail                                                 |   | $                                               | 547    |         | $      | 445 |   | $ | 102 |   |
| Wholesale                                              |   |                                            | 425    |         |   | 509 |   |   | (84 | ) |
| Total                  Non-Affiliated Generation Sales |   |                                            | 972    |         |   | 954 |   |   | 18 |   |
| Affiliated                  Generation Sales           |   |                                            | 2,210  |         |   | 1,997 |   |   | 213 |   |
| Transmission                                           |   |                                            | 71     |         |   | 96 |   |   | (25 | ) |
| Other                                                  |   |                                            | 5      |         |   | 13 |   |   | (8 | ) |
| Total                  Revenues                        |   | $                                               | 3,258  |         | $      | 3,060 |   | $ | 198 |   |

|                                                                                         |   | **Increase**                       |   |
|----------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
| **Source                  of Change in Non-Affiliated Generation                  Revenues** |   | **(Decrease)**                     |   |
|                                                                                         |   | ***(In                millions)*** |   |
| Retail:                                                                                      |   |                               |   |   |
| Effect                of 12% increase in sales                volumes                        |   | $                                  | 52     |   |
| Change                in prices                                                              |   |                               | 50     |   |
|                                                                                         |   |                               | 102    |   |
| Wholesale:                                                                                   |   |                               |   |   |
| Effect                of 26% decrease in sales                volumes                        |   |                               | (131   | ) |
| Change                in prices                                                              |   |                               | 47     |   |
|                                                                                         |   |                               | (84    | ) |
| Net                Increase                in Non-Affiliated Generation Revenues             |   | $                                  | 18     |   |

| **Source                  of Change in Affiliated Generation Revenues**      |   | **Increase**                       |   |
|------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                         |   | ***(In                millions)*** |   |
| Ohio                Companies:                                               |   |                               |   |   |
| Effect                of 4% increase in sales                volumes         |   | $                                  | 56     |   |
| Change                in prices                                              |   |                               | 89     |   |
|                                                                         |   |                               | 145    |   |
| Pennsylvania                Companies:                                       |   |                               |   |   |
| Effect                of 12% increase in sales                volumes        |   |                               | 54     |   |
| Change                in prices                                              |   |                               | 14     |   |
|                                                                         |   |                               | 68     |   |
| Net                Increase                in Affiliated Generation Revenues |   | $                                  | 213    |   |

*Expenses*

| **Source                  of Change in Fuel and Purchased Power**            |   | **Increase**** (Decrease)**   |   |
|------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                         |   | ***(In                millions)*** |   |
| Nuclear                Fuel:                                                 |   |                               |   |   |
| Change                due to increased unit                costs             |   |  $                            | 3      |   |
| Change                due to volume                consumed                  |   |                               | 5      |   |
|                                                                         |   |                               | 8      |   |
| Fossil                Fuel:                                                  |   |                               |   |   |
| Change                due to decreased unit                costs             |   |                               | (4     | ) |
| Change                due to volume                consumed                  |   |                               | (45    | ) |
|                                                                         |   |                               | (49    | ) |
| Purchased                Power:                                              |   |                               |   |   |
| Change                due to increased unit                costs             |   |                               | 51     |   |
| Change                due to volume                purchased                 |   |                               | 71     |   |
|                                                                         |   |                               | 122    |   |
| Net                Increase                in Fuel and Purchased Power Costs |   | $                                  | 81     |   |

----

*Other      Expense*

**Legal      Proceedings**

**New      Accounting Standards and Interpretations**

----

| **OHIO                  EDISON COMPANY**                                                                                                                                                         |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**                                                                                                                  |   |
| **(Unaudited)**                                                                                                                                                                                  |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                                             |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                                                                                                                                                             |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| **STATEMENTS                  OF INCOME**                                                                                                                                                        |   | ***(In                  thousands)*** |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES:**                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                  sales                                                                                                                                                                  |   | $ | 638,336 |   |   | $ | 642,294 |   |   | $ | 1,802,110 |   |   | $ | 1,745,699 |   |
| Excise                  tax                  collections                                                                                                                                         |   |   | 30,472 |   |   |   | 31,379 |   |   |   | 89,077 |   |   |   | 87,269 |   |
| Total                  revenues                                                                                                                                                                  |   |   | 668,808 |   |   |   | 673,673 |   |   |   | 1,891,187 |   |   |   | 1,832,968 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Fuel                                                                                                                                                               |   |   | 2,821 |   |   |   | 2,954 |   |   |   | 8,148 |   |   |   | 8,726 |   |
| Purchased                  power                                                                                                                                                                 |   |   | 364,709 |   |   |   | 395,560 |   |   |   | 1,037,200 |   |   |   | 971,613 |   |
| Nuclear                  operating costs                                                                                                                                                         |   |   | 41,783 |   |   |   | 44,995 |   |   |   | 130,951 |   |   |   | 129,585 |   |
| Other                  operating costs                                                                                                                                                           |   |   | 100,265 |   |   |   | 108,362 |   |   |   | 285,871 |   |   |   | 290,776 |   |
| Provision                  for                  depreciation                                                                                                                                     |   |   | 19,482 |   |   |   | 18,399 |   |   |   | 57,440 |   |   |   | 53,962 |   |
| Amortization                  of regulatory assets                                                                                                                                               |   |   | 53,026 |   |   |   | 49,717 |   |   |   | 144,569 |   |   |   | 147,022 |   |
| Deferral                  of                  new regulatory assets                                                                                                                              |   |   | (41,417 | ) |   |   | (44,962 | ) |   |   | (132,410 | ) |   |   | (123,285 | ) |
| General                  taxes                                                                                                                                                                   |   |   | 46,158 |   |   |   | 47,826 |   |   |   | 141,296 |   |   |   | 137,652 |   |
| Total                  expenses                                                                                                                                                                  |   |   | 586,827 |   |   |   | 622,851 |   |   |   | 1,673,065 |   |   |   | 1,616,051 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                  INCOME**                                                                                                                                                            |   |   | 81,981 |   |   |   | 50,822 |   |   |   | 218,122 |   |   |   | 216,917 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  INCOME (EXPENSE):**                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                  income                                                                                                                                                               |   |   | 19,827 |   |   |   | 32,993 |   |   |   | 67,803 |   |   |   | 98,853 |   |
| Miscellaneous                  income                                                                                                                                                            |   |   | 670 |   |   |   | 1,639 |   |   |   | 3,362 |   |   |   | 835 |   |
| Interest                  expense                                                                                                                                                                |   |   | (20,311 | ) |   |   | (24,597 | ) |   |   | (62,749 | ) |   |   | (60,195 | ) |
| Capitalized                  interest                                                                                                                                                            |   |   | 136 |   |   |   | 698 |   |   |   | 398 |   |   |   | 1,832 |   |
| Subsidiary's                  preferred stock dividend requirements                                                                                                                              |   |   | - |   |   |   | (156 | ) |   |   | - |   |   |   | (467 | ) |
| Total                  other                  income                                                                                                                                             |   |   | 322 |   |   |   | 10,577 |   |   |   | 8,814 |   |   |   | 40,858 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  BEFORE INCOME TAXES**                                                                                                                                                  |   |   | 82,303 |   |   |   | 61,399 |   |   |   | 226,936 |   |   |   | 257,775 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  TAXES**                                                                                                                                                                |   |   | 34,089 |   |   |   | 17,902 |   |   |   | 79,074 |   |   |   | 91,239 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                                                  |   |   | 48,214 |   |   |   | 43,497 |   |   |   | 147,862 |   |   |   | 166,536 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **PREFERRED                  STOCK DIVIDEND REQUIREMENTS AND**                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **REDEMPTION                  PREMIUM**                                                                                                                                                          |   |   | - |   |   |   | 51 |   |   |   | - |   |   |   | 4,297 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EARNINGS                  ON COMMON STOCK**                                                                                                                                                    |   | $ | 48,214 |   |   | $ | 43,446 |   |   | $ | 147,862 |   |   | $ | 162,239 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **STATEMENTS                  OF COMPREHENSIVE INCOME**                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                                                  |   | $ | 48,214 |   |   | $ | 43,497 |   |   | $ | 147,862 |   |   | $ | 166,536 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  COMPREHENSIVE INCOME (LOSS):**                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                  and                  other postretirment benefits                                                                                                                       |   |   | (3,423 | ) |   |   | - |   |   |   | (10,270 | ) |   |   | - |   |
| Change                  in                  unrealized gain on available for sale securities                                                                                                     |   |   | 2,442 |   |   |   | 3,795 |   |   |   | 7,415 |   |   |   | 5,467 |   |
| Other                  comprehensive income (loss)                                                                                                                                               |   |   | (981 | ) |   |   | 3,795 |   |   |   | (2,855 | ) |   |   | 5,467 |   |
| Income                  tax                  expense (benefit) related to other                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   comprehensive                  income                                                                                                                                                |   |   | (573 | ) |   |   | 1,369 |   |   |   | (1,688 | ) |   |   | 1,972 |   |
| Other                  comprehensive income (loss), net of tax                                                                                                                                   |   |   | (408 | ) |   |   | 2,426 |   |   |   | (1,167 | ) |   |   | 3,495 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                  COMPREHENSIVE INCOME**                                                                                                                                                  |   | $ | 47,806 |   |   | $ | 45,923 |   |   | $ | 146,695 |   |   | $ | 170,031 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to Ohio                  Edison                  Company are an integral part of these |   |
| statements.                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **OHIO                  EDISON COMPANY**                                                                                                                          |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  BALANCE SHEETS**                                                                                                                  |   |
| **(Unaudited)**                                                                                                                                                   |   |
|                                                                                                                                                                                       |   | **September                  30,** |   |   | **December                  31,** |   |
|                                                                                                                                                                                       |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                       |   | ***(In                  thousands)*** |   |
| **ASSETS**                                                                                                                                                                                 |   |   |   |   |   |   |
| **CURRENT                  ASSETS:**                                                                                                                                                       |   |   |   |   |   |   |
| Cash                  and cash                  equivalents                                                                                                                                |   | $ | 727 |   |   | $ | 712 |   |
| Receivables-                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Customers                  (less accumulated provisions of $8,518,000 and                  $15,033,000,                                                                                    |   |   |   |   |   |   |   |   |
| respectively,                  for uncollectible accounts)                                                                                                                                 |   |   | 271,680 |   |   |   | 234,781 |   |
| Associated                  companies                                                                                                                                                      |   |   | 167,686 |   |   |   | 141,084 |   |
| Other                  (less                  accumulated provisions of $5,548,000 and $1,985,000,                                                                                         |   |   |   |   |   |   |   |   |
| respectively,                  for uncollectible accounts)                                                                                                                                 |   |   | 20,093 |   |   |   | 13,496 |   |
| Notes                  receivable from associated companies                                                                                                                                |   |   | 626,841 |   |   |   | 458,647 |   |
| Prepayments                  and other                                                                                                                                                     |   |   | 17,148 |   |   |   | 13,606 |   |
|                                                                                                                                                                                       |   |   | 1,104,175 |   |   |   | 862,326 |   |
| **UTILITY                  PLANT:**                                                                                                                                                        |   |   |   |   |   |   |   |   |
| In                  service                                                                                                                                                                |   |   | 2,722,468 |   |   |   | 2,632,207 |   |
| Less                  -                  Accumulated provision for depreciation                                                                                                            |   |   | 1,053,942 |   |   |   | 1,021,918 |   |
|                                                                                                                                                                                       |   |   | 1,668,526 |   |   |   | 1,610,289 |   |
| Construction                  work in progress                                                                                                                                             |   |   | 42,494 |   |   |   | 42,016 |   |
|                                                                                                                                                                                       |   |   | 1,711,020 |   |   |   | 1,652,305 |   |
| **OTHER                  PROPERTY AND INVESTMENTS:**                                                                                                                                       |   |   |   |   |   |   |   |   |
| Long-term                  notes receivable from associated companies                                                                                                                      |   |   | 365,767 |   |   |   | 1,219,325 |   |
| Investment                  in                  lease obligation bonds                                                                                                                     |   |   | 274,077 |   |   |   | 291,393 |   |
| Nuclear                  plant                  decommissioning trusts                                                                                                                     |   |   | 128,168 |   |   |   | 118,209 |   |
|                    Other                                                                                                                                                              |   |   | 36,756 |   |   |   | 38,160 |   |
|                                                                                                                                                                                       |   |   | 804,768 |   |   |   | 1,667,087 |   |
| **DEFERRED                  CHARGES AND OTHER ASSETS:**                                                                                                                                    |   |   |   |   |   |   |   |   |
| Regulatory                  assets                                                                                                                                                         |   |   | 717,311 |   |   |   | 741,564 |   |
| Pension                  assets                                                                                                                                                            |   |   | 106,682 |   |   |   | 68,420 |   |
| Property                  taxes                                                                                                                                                            |   |   | 60,080 |   |   |   | 60,080 |   |
| Unamortized                  sale and leaseback costs                                                                                                                                      |   |   | 46,384 |   |   |   | 50,136 |   |
|                    Other                                                                                                                                                              |   |   | 44,457 |   |   |   | 18,696 |   |
|                                                                                                                                                                                       |   |   | 974,914 |   |   |   | 938,896 |   |
|                                                                                                                                                                                       |   | $ | 4,594,877 |   |   | $ | 5,120,614 |   |
| **LIABILITIES                  AND CAPITALIZATION**                                                                                                                                        |   |   |   |   |   |   |   |   |
| **CURRENT                  LIABILITIES:**                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Currently                  payable long-term debt                                                                                                                                          |   | $ | 442,264 |   |   | $ | 159,852 |   |
| Short-term                  borrowings-                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Associated                  companies                                                                                                                                                      |   |   | - |   |   |   | 113,987 |   |
| Other                                                                                                                                                                                      |   |   | 52,609 |   |   |   | 3,097 |   |
| Accounts                  payable-                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Associated                  companies                                                                                                                                                      |   |   | 200,104 |   |   |   | 115,252 |   |
| Other                                                                                                                                                                                      |   |   | 17,766 |   |   |   | 13,068 |   |
| Accrued                  taxes                                                                                                                                                             |   |   | 141,516 |   |   |   | 187,306 |   |
| Accrued                  interest                                                                                                                                                          |   |   | 17,435 |   |   |   | 24,712 |   |
|                    Other                                                                                                                                                              |   |   | 101,543 |   |   |   | 64,519 |   |
|                                                                                                                                                                                       |   |   | 973,237 |   |   |   | 681,793 |   |
| **CAPITALIZATION:**                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Common                  stockholder's equity-                                                                                                                                              |   |   |   |   |   |   |   |   |
| Common                  stock,                  without par value, authorized 175,000,000 shares -                                                                                         |   |   |   |   |   |   |   |   |
| 60                  and 80                  shares outstanding, respectively                                                                                                               |   |   | 1,220,173 |   |   |   | 1,708,441 |   |
| Accumulated                  other comprehensive income                                                                                                                                    |   |   | 2,041 |   |   |   | 3,208 |   |
| Retained                  earnings                                                                                                                                                         |   |   | 257,870 |   |   |   | 260,736 |   |
| Total                  common                  stockholder's equity                                                                                                                        |   |   | 1,480,084 |   |   |   | 1,972,385 |   |
| Long-term                  debt                  and other long-term obligations                                                                                                           |   |   | 836,430 |   |   |   | 1,118,576 |   |
|                                                                                                                                                                                       |   |   | 2,316,514 |   |   |   | 3,090,961 |   |
| **NONCURRENT                  LIABILITIES:**                                                                                                                                               |   |   |   |   |   |   |   |   |
| Accumulated                  deferred income taxes                                                                                                                                         |   |   | 676,784 |   |   |   | 674,288 |   |
| Accumulated                  deferred investment tax credits                                                                                                                               |   |   | 17,856 |   |   |   | 20,532 |   |
| Asset                  retirement obligations                                                                                                                                              |   |   | 92,157 |   |   |   | 88,223 |   |
| Retirement                  benefits                                                                                                                                                       |   |   | 159,096 |   |   |   | 167,379 |   |
| Deferred                  revenues - electric service programs                                                                                                                             |   |   | 59,255 |   |   |   | 86,710 |   |
|                    Other                                                                                                                                                              |   |   | 299,978 |   |   |   | 310,728 |   |
|                                                                                                                                                                                       |   |   | 1,305,126 |   |   |   | 1,347,860 |   |
| **COMMITMENTS                  AND CONTINGENCIES (Note 10)**                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                       |   | $ | 4,594,877 |   |   | $ | 5,120,614 |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to Ohio                  Edison                  Company are an integral part of |   |   |   |   |   |
| these                  balance                  sheets.                                                                                                                                    |   |   |   |   |   |   |   |   |

----

| **OHIO                  EDISON COMPANY**                                                                                                                                           |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                               |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                                                                                                         |   |
| **(Unaudited)**                                                                                                                                                                    |   |
|                                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                                               |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                               |   | **September                  30,** |   |
|                                                                                                                                                                               |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                               |   | ***(In                  thousands)***    |   |
|                                                                                                                                                                               |   |   |   |   |   |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                         |   |   |   |   |   |   |
| Net                  income                                                                                                                                                        |   | $ | 147,862 |   |   | $ | 166,536 |   |
| Adjustments                  to                  reconcile net income to net cash from operating                  activities-                                                      |   |   |   |   |   |   |   |   |
| Provision                  for                  depreciation                                                                                                                       |   |   | 57,440 |   |   |   | 53,962 |   |
| Amortization                  of regulatory assets                                                                                                                                 |   |   | 144,569 |   |   |   | 147,022 |   |
| Deferral                  of                  new regulatory assets                                                                                                                |   |   | (132,410 | ) |   |   | (123,285 | ) |
| Amortization                  of lease costs                                                                                                                                       |   |   | 28,567 |   |   |   | 28,600 |   |
| Deferred                  income taxes and investment tax credits, net                                                                                                             |   |   | (29,155 | ) |   |   | (27,850 | ) |
| Accrued                  compensation and retirement benefits                                                                                                                      |   |   | (34,572 | ) |   |   | 2,985 |   |
| Pension                  trust                  contribution                                                                                                                       |   |   | (20,261 | ) |   |   | - |   |
| Decrease                  (increase) in operating assets-                                                                                                                          |   |   |   |   |   |   |   |   |
| Receivables                                                                                                                                                                        |   |   | (70,098 | ) |   |   | 26,198 |   |
| Prepayments                  and other current assets                                                                                                                              |   |   | (3,542 | ) |   |   | (4,172 | ) |
| Increase                  (decrease) in operating liabilities-                                                                                                                     |   |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                                                                                  |   |   | 89,550 |   |   |   | (24,937 | ) |
| Accrued                  taxes                                                                                                                                                     |   |   | (37,355 | ) |   |   | (27,826 | ) |
| Accrued                  interest                                                                                                                                                  |   |   | (7,277 | ) |   |   | 12,839 |   |
| Electric                  service prepayment programs                                                                                                                              |   |   | (27,455 | ) |   |   | (24,975 | ) |
|                    Other                                                                                                                                                      |   |   | 7,260 |   |   |   | 2,570 |   |
| Net                  cash                  provided from operating activities                                                                                                      |   |   | 113,123 |   |   |   | 207,667 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                         |   |   |   |   |   |   |   |   |
| New                  Financing-                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Long-term                  debt                                                                                                                                                    |   |   | - |   |   |   | 592,763 |   |
| Equity                  contributions from parent                                                                                                                                  |   |   | 11,621 |   |   |   | - |   |
| Redemptions                  and Repayments-                                                                                                                                       |   |   |   |   |   |   |   |   |
| Common                  stock                                                                                                                                                      |   |   | (500,000 | ) |   |   | (500,000 | ) |
| Preferred                  stock                                                                                                                                                   |   |   | - |   |   |   | (63,893 | ) |
| Long-term                  debt                                                                                                                                                    |   |   | (1,190 | ) |   |   | (138,085 | ) |
| Short-term                  borrowings, net                                                                                                                                        |   |   | (64,475 | ) |   |   | (177,595 | ) |
| Dividend                  Payments-                                                                                                                                                |   |   |   |   |   |   |   |   |
| Common                  stock                                                                                                                                                      |   |   | (150,000 | ) |   |   | (73,000 | ) |
| Preferred                  stock                                                                                                                                                   |   |   | - |   |   |   | (1,369 | ) |
| Net                  cash used                  for financing activities                                                                                                           |   |   | (704,044 | ) |   |   | (361,179 | ) |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                         |   |   |   |   |   |   |   |   |
| Property                  additions                                                                                                                                                |   |   | (109,461 | ) |   |   | (94,278 | ) |
| Sales                  of                  investment securities held in trusts                                                                                                    |   |   | 31,624 |   |   |   | 32,826 |   |
| Purchases                  of                  investment securities held in trusts                                                                                                |   |   | (33,586 | ) |   |   | (34,209 | ) |
| Loan                  repayments from associated companies, net                                                                                                                    |   |   | 685,364 |   |   |   | 148,199 |   |
| Cash                  investments                                                                                                                                                  |   |   | 17,316 |   |   |   | 93,900 |   |
| Other                                                                                                                                                                              |   |   | (321 | ) |   |   | 6,848 |   |
| Net                  cash                  provided from investing activities                                                                                                      |   |   | 590,936 |   |   |   | 153,286 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Net                  increase                  (decrease) in cash and cash equivalents                                                                                             |   |   | 15 |   |   |   | (226 | ) |
| Cash                  and cash                  equivalents at beginning of period                                                                                                 |   |   | 712 |   |   |   | 929 |   |
| Cash                  and cash                  equivalents at end of period                                                                                                       |   | $ | 727 |   |   | $ | 703 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to Ohio                  Edison                  Company are an integral |   |
| part                  of these                  statements.                                                                                                                        |   |   |   |   |   |   |   |   |

----

***Report      of Independent Registered Public Accounting Firm***

----

**OHIO      EDISON      COMPANY**

**MANAGEMENT’S      NARRATIVE**

**ANALYSIS      OF RESULTS OF OPERATIONS**

**Results      of Operations**

*Revenues*

| **Retail                Generation KWH Sales**      |   | **Increase                (Decrease)** |     |
|-----------------------------------------------------|--------|----------------------------------------|----------|
|                                                |   |                                   |     |   |
| Residential                                         |   |                                   | 7.4      |  % |
| Commercial                                          |   |                                   | (1.4     | )% |
| Industrial                                          |   |                                   | (16.0    | )% |
| **Net                Decrease in Generation Sales** |   |                                   | **(3.7** | **)%** |

| **Retail                Generation Revenues**          |   | **Increase                (Decrease)** |   |
|--------------------------------------------------------|--------|----------------------------------------|--------|
|                                                   |   | ***(In                millions)***     |   |
| Residential                                            |   | $                                      | 80     |   |
| Commercial                                             |   |                                   | 23     |   |
| Industrial                                             |   |                                   | (38    | ) |
| **Net                Increase in Generation Revenues** |   | **$**                                  | **65** |   |

----

| **Distribution                KWH Deliveries**                                  |   | **Increase                (Decrease)** |    |
|---------------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                            |   |                                   |    |   |
| Residential                                                                     |   |                                   | 5.8     |  % |
| Commercial                                                                      |   |                                   | 3.3     |  % |
| Industrial                                                                      |   |                                   | (2.2    | )% |
| ** Net                Increase in Distribution Deliveries** |   |                                   | **2.2** | ** %** |

| **Distribution                Revenues**                       |   | **Increase                (Decrease)** |    |
|----------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                           |   | ***(In                millions)***     |    |
| Residential                                                    |   | $                                      | 2       |   |
| Commercial                                                     |   |                                   | (5      | ) |
| Industrial                                                     |   |                                   | (13     | ) |
| ** Net                Decrease in Distribution Revenues** |   | **$**                                  | **(16** | **)** |

*Expenses*

| **Expenses                – Changes**                     |   | **Increase                (Decrease)** |                               |
|-----------------------------------------------------------------|--------|----------------------------------------|------------------------------------|
|                                                            |   |                                   | ***(In                millions)*** |   |
| Purchased                power costs                            |   | $                                      | 65                                 |   |
| Nuclear                operating costs                     |   |                                   | 1                                  |   |
| Other                operating costs                            |   |                                   | (5                                 | ) |
| Provision                for                depreciation        |   |                                   | 3                                  |   |
| Amortization                of regulatory assets                |   |                                   | (2                                 | ) |
| Deferral                of                new regulatory assets |   |                                   | (9                                 | ) |
| General                taxes                                    |   |                                   | 4                                  |   |
| **Net                Increase in Expenses**                     |   | **$**                                  | **57**                             |   |

*Other      Income*

**Legal      Proceedings**

**New      Accounting Standards and Interpretations**

----

| **THE                  CLEVELAND ELECTRIC ILLUMINATING COMPANY**                                                                                                                                           |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**                                                                                                                            |   |
| **(Unaudited)**                                                                                                                                                                                            |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                       |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                                                       |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                       |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                       |   | ***(In                  thousands)*** |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES:**                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                  sales                                                                                                                                                                            |   | $ | 510,577 |   |   | $ | 497,336 |   |   | $ | 1,366,396 |   |   | $ | 1,304,525 |   |
| Excise                  tax                  collections                                                                                                                                                   |   |   | 18,514 |   |   |   | 18,587 |   |   |   | 53,009 |   |   |   | 51,579 |   |
| Total                  revenues                                                                                                                                                                            |   |   | 529,091 |   |   |   | 515,923 |   |   |   | 1,419,405 |   |   |   | 1,356,104 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     Fuel                                                                                                                                                                         |   |   | 12,160 |   |   |   | 12,748 |   |   |   | 39,683 |   |   |   | 39,724 |   |
| Purchased                  power                                                                                                                                                                           |   |   | 216,194 |   |   |   | 229,779 |   |   |   | 575,520 |   |   |   | 531,490 |   |
| Other                  operating costs                                                                                                                                                                     |   |   | 85,114 |   |   |   | 81,510 |   |   |   | 243,140 |   |   |   | 222,841 |   |
| Provision                  for                  depreciation                                                                                                                                               |   |   | 18,913 |   |   |   | 17,524 |   |   |   | 56,094 |   |   |   | 45,775 |   |
| Amortization                  of regulatory assets                                                                                                                                                         |   |   | 42,077 |   |   |   | 38,826 |   |   |   | 110,253 |   |   |   | 99,832 |   |
| Deferral                  of                  new regulatory assets                                                                                                                                        |   |   | (37,692 | ) |   |   | (39,060 | ) |   |   | (114,708 | ) |   |   | (101,283 | ) |
| General                  taxes                                                                                                                                                                             |   |   | 37,930 |   |   |   | 34,228 |   |   |   | 110,922 |   |   |   | 100,808 |   |
| Total                  expenses                                                                                                                                                                            |   |   | 374,696 |   |   |   | 375,555 |   |   |   | 1,020,904 |   |   |   | 939,187 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                  INCOME**                                                                                                                                                                      |   |   | 154,395 |   |   |   | 140,368 |   |   |   | 398,501 |   |   |   | 416,917 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  INCOME (EXPENSE):**                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                  income                                                                                                                                                                         |   |   | 13,805 |   |   |   | 24,715 |   |   |   | 47,816 |   |   |   | 76,325 |   |
| Miscellaneous                  income (expense)                                                                                                                                                            |   |   | (760 | ) |   |   | 813 |   |   |   | 3,197 |   |   |   | 6,209 |   |
| Interest                  expense                                                                                                                                                                          |   |   | (34,423 | ) |   |   | (34,774 | ) |   |   | (107,430 | ) |   |   | (104,140 | ) |
| Capitalized                  interest                                                                                                                                                                      |   |   | 309 |   |   |   | 836 |   |   |   | 655 |   |   |   | 2,346 |   |
| Total                  other                  expense                                                                                                                                                      |   |   | (21,069 | ) |   |   | (8,410 | ) |   |   | (55,762 | ) |   |   | (19,260 | ) |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  BEFORE INCOME TAXES**                                                                                                                                                            |   |   | 133,326 |   |   |   | 131,958 |   |   |   | 342,739 |   |   |   | 397,657 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  TAXES**                                                                                                                                                                          |   |   | 54,610 |   |   |   | 48,496 |   |   |   | 131,525 |   |   |   | 150,730 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                                                            |   |   | 78,716 |   |   |   | 83,462 |   |   |   | 211,214 |   |   |   | 246,927 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  COMPREHENSIVE INCOME:**                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                  and                  other postretirement benefits                                                                                                                                |   |   | 1,202 |   |   |   | - |   |   |   | 3,607 |   |   |   | - |   |
| Income                  tax                  expense related to other comprehensive income                                                                                                                 |   |   | 356 |   |   |   | - |   |   |   | 1,068 |   |   |   | - |   |
| Other                  comprehensive income, net of tax                                                                                                                                                    |   |   | 846 |   |   |   | - |   |   |   | 2,539 |   |   |   | - |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                  COMPREHENSIVE INCOME**                                                                                                                                                            |   | $ | 79,562 |   |   | $ | 83,462 |   |   | $ | 213,753 |   |   | $ | 246,927 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to The                  Cleveland                  Electric Illuminating Company are an integral |   |
| part                  of these                  statements.                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **THE                  CLEVELAND ELECTRIC ILLUMINATING COMPANY**                                                                                                                           |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                       |   |   |   |   |   |   |
| **CONSOLIDATED                  BALANCE SHEETS**                                                                                                                                           |   |
| **(Unaudited)**                                                                                                                                                                            |   |
|                                                                                                                                                                                       |   | **September                  30,** |   |   | **December                  31,** |   |
|                                                                                                                                                                                       |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                       |   | ***(In                  thousands)*** |   |
| **ASSETS**                                                                                                                                                                                 |   |   |   |   |   |   |
| **CURRENT                  ASSETS:**                                                                                                                                                       |   |   |   |   |   |   |
| Cash                  and cash                  equivalents                                                                                                                                |   | $ | 234 |   |   | $ | 221 |   |
| Receivables-                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Customers                  (less accumulated provisions of $8,057,000 and $6,783,000                                                                                                       |   |   |   |   |   |
| respectively,                  for uncollectible accounts)                                                                                                                                 |   |   | 304,608 |   |   |   | 245,193 |   |
| Associated                  companies                                                                                                                                                      |   |   | 53,564 |   |   |   | 249,735 |   |
| Other                                                                                                                                                                                      |   |   | 21,331 |   |   |   | 14,240 |   |
| Notes                  receivable from associated companies                                                                                                                                |   |   | 41,054 |   |   |   | 27,191 |   |
| Prepayments                  and other                                                                                                                                                     |   |   | 1,510 |   |   |   | 2,314 |   |
|                                                                                                                                                                                       |   |   | 422,301 |   |   |   | 538,894 |   |
| **UTILITY                  PLANT:**                                                                                                                                                        |   |   |   |   |   |   |   |   |
| In                  service                                                                                                                                                                |   |   | 2,199,913 |   |   |   | 2,136,766 |   |
| Less                  -                  Accumulated provision for depreciation                                                                                                            |   |   | 844,600 |   |   |   | 819,633 |   |
|                                                                                                                                                                                       |   |   | 1,355,313 |   |   |   | 1,317,133 |   |
| Construction                  work in progress                                                                                                                                             |   |   | 55,382 |   |   |   | 46,385 |   |
|                                                                                                                                                                                       |   |   | 1,410,695 |   |   |   | 1,363,518 |   |
| **OTHER                  PROPERTY AND INVESTMENTS:**                                                                                                                                       |   |   |   |   |   |   |   |   |
| Long-term                  notes receivable from associated companies                                                                                                                      |   |   | 265,660 |   |   |   | 486,634 |   |
| Investment                  in                  lessor notes                                                                                                                               |   |   | 463,433 |   |   |   | 519,611 |   |
|                    Other                                                                                                                                                              |   |   | 10,302 |   |   |   | 13,426 |   |
|                                                                                                                                                                                       |   |   | 739,395 |   |   |   | 1,019,671 |   |
| **DEFERRED                  CHARGES AND OTHER ASSETS:**                                                                                                                                    |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                                   |   |   | 1,688,521 |   |   |   | 1,688,521 |   |
| Regulatory                  assets                                                                                                                                                         |   |   | 855,618 |   |   |   | 854,588 |   |
| Pension                  assets                                                                                                                                                            |   |   | 16,791 |   |   |   | - |   |
| Property                  taxes                                                                                                                                                            |   |   | 65,000 |   |   |   | 65,000 |   |
|                    Other                                                                                                                                                              |   |   | 42,993 |   |   |   | 33,306 |   |
|                                                                                                                                                                                       |   |   | 2,668,923 |   |   |   | 2,641,415 |   |
|                                                                                                                                                                                       |   | $ | 5,241,314 |   |   | $ | 5,563,498 |   |
| **LIABILITIES                  AND CAPITALIZATION**                                                                                                                                        |   |   |   |   |   |   |   |   |
| **CURRENT                  LIABILITIES:**                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Currently                  payable long-term debt                                                                                                                                          |   | $ | 266,271 |   |   | $ | 120,569 |   |
| Short-term                  borrowings-                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Associated                  companies                                                                                                                                                      |   |   | 73,459 |   |   |   | 218,134 |   |
| Other                                                                                                                                                                                      |   |   | 100,000 |   |   |   | - |   |
| Accounts                  payable-                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Associated                  companies                                                                                                                                                      |   |   | 237,072 |   |   |   | 365,678 |   |
| Other                                                                                                                                                                                      |   |   | 6,194 |   |   |   | 7,194 |   |
| Accrued                  taxes                                                                                                                                                             |   |   | 132,941 |   |   |   | 128,829 |   |
| Accrued                  interest                                                                                                                                                          |   |   | 41,393 |   |   |   | 19,033 |   |
| Lease                  market                  valuation liability                                                                                                                         |   |   | 58,750 |   |   |   | 60,200 |   |
|                    Other                                                                                                                                                              |   |   | 44,931 |   |   |   | 52,101 |   |
|                                                                                                                                                                                       |   |   | 961,011 |   |   |   | 971,738 |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| **CAPITALIZATION:**                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Common                  stockholder's equity-                                                                                                                                              |   |   |   |   |   |   |   |   |
| Common                  stock,                  without par value, authorized 105,000,000 shares -                                                                                         |   |   |   |   |   |   |   |   |
| 67,930,743                  shares outstanding                                                                                                                                             |   |   | 873,037 |   |   |   | 860,133 |   |
| Accumulated                  other comprehensive loss                                                                                                                                      |   |   | (101,892 | ) |   |   | (104,431 | ) |
| Retained                  earnings                                                                                                                                                         |   |   | 620,155 |   |   |   | 713,201 |   |
| Total                  common                  stockholder's equity                                                                                                                        |   |   | 1,391,300 |   |   |   | 1,468,903 |   |
| Long-term                  debt                  and other long-term obligations                                                                                                           |   |   | 1,670,898 |   |   |   | 1,805,871 |   |
|                                                                                                                                                                                       |   |   | 3,062,198 |   |   |   | 3,274,774 |   |
| **NONCURRENT                  LIABILITIES:**                                                                                                                                               |   |   |   |   |   |   |   |   |
| Accumulated                  deferred income taxes                                                                                                                                         |   |   | 461,410 |   |   |   | 470,707 |   |
| Accumulated                  deferred investment tax credits                                                                                                                               |   |   | 18,994 |   |   |   | 20,277 |   |
| Lease                  market                  valuation liability                                                                                                                         |   |   | 491,085 |   |   |   | 547,800 |   |
| Retirement                  benefits                                                                                                                                                       |   |   | 110,620 |   |   |   | 122,862 |   |
| Deferred                  revenues - electric service programs                                                                                                                             |   |   | 34,768 |   |   |   | 51,588 |   |
|                    Other                                                                                                                                                              |   |   | 101,228 |   |   |   | 103,752 |   |
|                                                                                                                                                                                       |   |   | 1,218,105 |   |   |   | 1,316,986 |   |
| **COMMITMENTS                  AND CONTINGENCIES (Note 10)**                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                       |   | $ | 5,241,314 |   |   | $ | 5,563,498 |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to The                  Cleveland                  Electric Illuminating Company |
| are                  an                  integral part of these balance sheets.                                                                                                            |   |   |   |   |   |   |   |   |

----

| **THE                  CLEVELAND ELECTRIC ILLUMINATING COMPANY**                                                                                                                           |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                       |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                                                                                                                 |   |
| **(Unaudited)**                                                                                                                                                                            |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |
|                                                                                                                                                                                       |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                                       |   | **September                  30,** |   |
|                                                                                                                                                                                       |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                       |   | ***(In                  thousands)*** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                                 |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                |   | $ | 211,214 |   |   | $ | 246,927 |   |
| Adjustments                  to                  reconcile net income to net cash from operating                  activities-                                                              |   |   |   |   |   |
| Provision                  for                  depreciation                                                                                                                               |   |   | 56,094 |   |   |   | 45,775 |   |
| Amortization                  of regulatory assets                                                                                                                                         |   |   | 110,253 |   |   |   | 99,832 |   |
| Deferral                  of                  new regulatory assets                                                                                                                        |   |   | (114,708 | ) |   |   | (101,283 | ) |
| Deferred                  rents                  and lease market valuation liability                                                                                                      |   |   | (46,327 | ) |   |   | (55,166 | ) |
| Deferred                  income taxes and investment tax credits, net                                                                                                                     |   |   | (40,964 | ) |   |   | (9,513 | ) |
| Accrued                  compensation and retirement benefits                                                                                                                              |   |   | 2,575 |   |   |   | 2,681 |   |
| Pension                  trust                  contribution                                                                                                                               |   |   | (24,800 | ) |   |   | - |   |
| Decrease                  (increase) in operating assets-                                                                                                                                  |   |   |   |   |   |   |   |   |
| Receivables                                                                                                                                                                                |   |   | 140,359 |   |   |   | 189 |   |
| Prepayments                  and other current assets                                                                                                                                      |   |   | 661 |   |   |   | (387 | ) |
| Increase                  (decrease) in operating liabilities-                                                                                                                             |   |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                                                                                          |   |   | (143,210 | ) |   |   | 29,681 |   |
| Accrued                  taxes                                                                                                                                                             |   |   | 4,545 |   |   |   | (14,588 | ) |
| Accrued                  interest                                                                                                                                                          |   |   | 22,360 |   |   |   | 12,427 |   |
| Electric                  service prepayment programs                                                                                                                                      |   |   | (16,819 | ) |   |   | (13,623 | ) |
| Other                                                                                                                                                                                      |   |   | 2,996 |   |   |   | (5,270 | ) |
| Net                  cash                  provided from operating activities                                                                                                              |   |   | 164,229 |   |   |   | 237,682 |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                                 |   |   |   |   |   |   |   |   |
| New                  Financing-                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Long-term                  debt                                                                                                                                                            |   |   | 247,424 |   |   |   | - |   |
| Equity                  contributions from parent                                                                                                                                          |   |   | 12,756 |   |   |   | - |   |
| Redemptions                  and Repayments-                                                                                                                                               |   |   |   |   |   |   |   |   |
| Long-term                  debt                                                                                                                                                            |   |   | (223,555 | ) |   |   | (118,295 | ) |
| Short-term                  borrowings, net                                                                                                                                                |   |   | (59,328 | ) |   |   | (58,819 | ) |
| Dividend                  Payments-                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Common                  stock                                                                                                                                                              |   |   | (304,000 | ) |   |   | (118,000 | ) |
| Net                  cash used                  for financing activities                                                                                                                   |   |   | (326,703 | ) |   |   | (295,114 | ) |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                                 |   |   |   |   |   |   |   |   |
| Property                  additions                                                                                                                                                        |   |   | (100,583 | ) |   |   | (89,771 | ) |
| Loan                  repayments from (loans to) associated companies, net                                                                                                                 |   |   | (13,863 | ) |   |   | 108,034 |   |
| Collection                  of                  principal on long-term notes receivable                                                                                                    |   |   | 220,974 |   |   |   | - |   |
| Redemption                  of                  lessor notes                                                                                                                               |   |   | 56,177 |   |   |   | 44,553 |   |
| Other                                                                                                                                                                                      |   |   | (218 | ) |   |   | (5,368 | ) |
| Net                  cash                  provided from investing activities                                                                                                              |   |   | 162,487 |   |   |   | 57,448 |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Net                  increase                  in cash and cash equivalents                                                                                                                |   |   | 13 |   |   |   | 16 |   |
| Cash                  and cash                  equivalents at beginning of period                                                                                                         |   |   | 221 |   |   |   | 207 |   |
| Cash                  and cash                  equivalents at end of period                                                                                                               |   | $ | 234 |   |   | $ | 223 |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to The                  Cleveland                  Electric Illuminating Company |
| are                  an                  integral part of these statements.                                                                                                                |   |   |   |   |   |   |   |   |

----

***Report      of Independent Registered Public Accounting Firm***

----

**THE      CLEVELAND ELECTRIC ILLUMINATING COMPANY**

**MANAGEMENT’S      NARRATIVE**

**ANALYSIS      OF RESULTS OF OPERATIONS**

**Results      of Operations**

*Revenues*

| **Retail                Generation KWH Sales**                            |   | **Increase** |    |
|---------------------------------------------------------------------------|--------|--------------|---------|
|                                                                      |   |         |    |   |
| Residential                                                               |   |         | 4.3     | % |
| Commercial                                                                |   |         | 6.0     | % |
| Industrial                                                                |   |         | 1.2     | % |
| **                   Increase in Retail Generation Sales** |   |         | **3.2** | **%** |

| **Retail                Generation Revenues**      |   | **Increase**                       |   |
|----------------------------------------------------|--------|------------------------------------|--------|
|                                               |   | **(I*n                millions)*** |   |
| Residential                                        |   | $                                  | 9      |   |
| Commercial                                         |   |                               | 15     |   |
| Industrial                                         |   |                               | 14     |   |
| **Increase                in Generation Revenues** |   | **$**                              | **38** |   |

| **Distribution                KWH Deliveries**         |   | **Increase** |    |
|--------------------------------------------------------|--------|--------------|---------|
|                                                   |   |         |    |   |
| Residential                                            |   |         | 4.5     | % |
| Commercial                                             |   |         | 3.7     | % |
| Industrial                                             |   |         | 0.7     | % |
| **Increase                in Distribution Deliveries** |   |         | **2.5** | **%** |

----

| **Distribution                Revenues**                       |   | **Increase****(Decrease)**         |   |
|----------------------------------------------------------------|--------|------------------------------------|--------|
|                                                           |   | **(*In                millions)*** |   |
| Residential                                                    |   | $                                  | 6      |   |
| Commercial                                                     |   |                               | 6      |   |
| Industrial                                                     |   |                               | (7     | ) |
| ** Net                Increase in Distribution Revenues** |   | **$**                              | **5**  |   |

*Expenses*

| **Expenses  -                Changes**                |   | **Increase****(Decrease)**         |   |
|-----------------------------------------------------------------|--------|------------------------------------|--------|
|                                                            |   | ***(in                millions)*** |   |
| Purchased                power costs                            |   | $                                  | 44     |   |
| Other                operating costs                            |   |                               | 20     |   |
| Provision                for                depreciation        |   |                               | 10     |   |
| Amortization                of regulatory assets                |   |                               | 11     |   |
| Deferral                of                new regulatory assets |   |                               | (13    | ) |
| General                taxes                                    |   |                               | 10     |   |
| **Net                Increase in Expenses**                     |   | $                                  | 82     |   |

*Other      Expense*

**Legal      Proceedings**

**New      Accounting Standards and Interpretations**

----

| **THE                  TOLEDO EDISON COMPANY**                                                                                                                                                   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**                                                                                                                  |   |
| **(Unaudited)**                                                                                                                                                                                  |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                                             |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                                                                                                                                                             |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
| **STATEMENTS                  OF INCOME**                                                                                                                                                        |   | ***(In                  thousands)*** |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES:**                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                  sales                                                                                                                                                                  |   | $ | 261,736 |   |   | $ | 254,979 |   |   | $ | 728,429 |   |   | $ | 684,992 |   |
| Excise                  tax                  collections                                                                                                                                         |   |   | 7,926 |   |   |   | 7,858 |   |   |   | 22,026 |   |   |   | 21,420 |   |
| Total                  revenues                                                                                                                                                                  |   |   | 269,662 |   |   |   | 262,837 |   |   |   | 750,455 |   |   |   | 706,412 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                                                                                                                                                                                             |   |   | 8,784 |   |   |   | 9,399 |   |   |   | 29,392 |   |   |   | 28,799 |   |
| Purchased                  power                                                                                                                                                                 |   |   | 112,502 |   |   |   | 112,389 |   |   |   | 304,947 |   |   |   | 268,468 |   |
| Nuclear                  operating costs                                                                                                                                                         |   |   | 17,705 |   |   |   | 19,252 |   |   |   | 53,272 |   |   |   | 54,450 |   |
| Other                  operating costs                                                                                                                                                           |   |   | 47,212 |   |   |   | 44,253 |   |   |   | 136,297 |   |   |   | 124,396 |   |
| Provision                  for                  depreciation                                                                                                                                     |   |   | 9,231 |   |   |   | 8,386 |   |   |   | 27,475 |   |   |   | 24,723 |   |
| Amortization                  of regulatory assets                                                                                                                                               |   |   | 30,460 |   |   |   | 27,336 |   |   |   | 79,284 |   |   |   | 73,909 |   |
| Deferral                  of                  new regulatory assets                                                                                                                              |   |   | (15,645 | ) |   |   | (15,340 | ) |   |   | (47,373 | ) |   |   | (43,186 | ) |
| General                  taxes                                                                                                                                                                   |   |   | 11,912 |   |   |   | 13,406 |   |   |   | 38,646 |   |   |   | 38,590 |   |
| Total                  expenses                                                                                                                                                                  |   |   | 222,161 |   |   |   | 219,081 |   |   |   | 621,940 |   |   |   | 570,149 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                  INCOME**                                                                                                                                                            |   |   | 47,501 |   |   |   | 43,756 |   |   |   | 128,515 |   |   |   | 136,263 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  INCOME (EXPENSE):**                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                  income                                                                                                                                                               |   |   | 6,721 |   |   |   | 9,724 |   |   |   | 21,255 |   |   |   | 28,449 |   |
| Miscellaneous                  expense                                                                                                                                                           |   |   | (2,153 | ) |   |   | (1,933 | ) |   |   | (7,309 | ) |   |   | (6,543 | ) |
| Interest                  expense                                                                                                                                                                |   |   | (8,786 | ) |   |   | (4,940 | ) |   |   | (25,205 | ) |   |   | (13,614 | ) |
| Capitalized                  interest                                                                                                                                                            |   |   | 220 |   |   |   | 277 |   |   |   | 467 |   |   |   | 835 |   |
| Total                  other                  income (expense)                                                                                                                                   |   |   | (3,998 | ) |   |   | 3,128 |   |   |   | (10,792 | ) |   |   | 9,127 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  BEFORE INCOME TAXES**                                                                                                                                                  |   |   | 43,503 |   |   |   | 46,884 |   |   |   | 117,723 |   |   |   | 145,390 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  TAXES**                                                                                                                                                                |   |   | 18,435 |   |   |   | 17,706 |   |   |   | 44,924 |   |   |   | 54,834 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                                                  |   |   | 25,068 |   |   |   | 29,178 |   |   |   | 72,799 |   |   |   | 90,556 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **PREFERRED                  STOCK DIVIDEND REQUIREMENTS**                                                                                                                                       |   |   | - |   |   |   | 1,161 |   |   |   | - |   |   |   | 3,597 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EARNINGS                  ON COMMON STOCK**                                                                                                                                                    |   | $ | 25,068 |   |   | $ | 28,017 |   |   | $ | 72,799 |   |   | $ | 86,959 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **STATEMENTS                  OF COMPREHENSIVE INCOME**                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                                                  |   | $ | 25,068 |   |   | $ | 29,178 |   |   | $ | 72,799 |   |   | $ | 90,556 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  COMPREHENSIVE INCOME:**                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                  and                  other postretirement benefits                                                                                                                      |   |   | 574 |   |   |   | - |   |   |   | 1,720 |   |   |   | - |   |
| Change                  in                  unrealized gain on available for sale securities                                                                                                     |   |   | 1,946 |   |   |   | 1,379 |   |   |   | 1,656 |   |   |   | 432 |   |
| Other                  comprehensive income                                                                                                                                                      |   |   | 2,520 |   |   |   | 1,379 |   |   |   | 3,376 |   |   |   | 432 |   |
| Income                  tax                  expense related to other                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| comprehensive                  income                                                                                                                                                            |   |   | 902 |   |   |   | 498 |   |   |   | 1,193 |   |   |   | 156 |   |
| Other                  comprehensive income, net of tax                                                                                                                                          |   |   | 1,618 |   |   |   | 881 |   |   |   | 2,183 |   |   |   | 276 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                  COMPREHENSIVE INCOME**                                                                                                                                                  |   | $ | 26,686 |   |   | $ | 30,059 |   |   | $ | 74,982 |   |   | $ | 90,832 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to The                  Toledo                  Edison Company are an integral part of |   |
| these                  statements.                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **THE                    TOLEDO EDISON COMPANY**                                                                                                    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                         |   |   |   |   |   |   |
| **CONSOLIDATED                    BALANCE SHEETS**                                                                                                  |   |
| **(Unaudited)**                                                                                                                                     |   |
|                                                                                                                                                                         |   | **September                    30,** |   |   | **December                    31,** |   |
|                                                                                                                                                                         |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                         |   | ***(In                    thousands)*** |   |
| **ASSETS**                                                                                                                                                                   |   |   |   |   |   |   |
| **CURRENT                    ASSETS:**                                                                                                                                       |   |   |   |   |   |   |
| Cash                    and cash                    equivalents                                                                                                              |   | $ | 20 |   |   | $ | 22 |   |
| Receivables-                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Customers                                                                                                                                                                    |   |   | 335 |   |   |   | 772 |   |
| Associated                    companies                                                                                                                                      |   |   | 31,180 |   |   |   | 13,940 |   |
| Other                    (less                    accumulated provisions of $518,000 and $430,000,                                                                           |   |   |   |   |   |
| respectively,                    for uncollectible accounts)                                                                                                                 |   |   | 3,600 |   |   |   | 3,831 |   |
| Notes                    receivable from associated companies                                                                                                                |   |   | 79,188 |   |   |   | 100,545 |   |
| Prepayments                    and other                                                                                                                                     |   |   | 627 |   |   |   | 851 |   |
|                                                                                                                                                                         |   |   | 114,950 |   |   |   | 119,961 |   |
| **UTILITY                    PLANT:**                                                                                                                                        |   |   |   |   |   |   |   |   |
| In                    service                                                                                                                                                |   |   | 913,191 |   |   |   | 894,888 |   |
| Less                    -                    Accumulated provision for depreciation                                                                                          |   |   | 406,949 |   |   |   | 394,225 |   |
|                                                                                                                                                                         |   |   | 506,242 |   |   |   | 500,663 |   |
| Construction                    work in progress                                                                                                                             |   |   | 26,665 |   |   |   | 16,479 |   |
|                                                                                                                                                                         |   |   | 532,907 |   |   |   | 517,142 |   |
| **OTHER                    PROPERTY AND INVESTMENTS:**                                                                                                                       |   |   |   |   |   |   |   |   |
| Investment                    in                    lessor notes                                                                                                             |   |   | 154,674 |   |   |   | 169,493 |   |
| Long-term                    notes receivable from associated companies                                                                                                      |   |   | 92,700 |   |   |   | 128,858 |   |
| Nuclear                    plant                    decommissioning trusts                                                                                                   |   |   | 64,598 |   |   |   | 61,094 |   |
| Other                                                                                                                                                                        |   |   | 1,778 |   |   |   | 1,871 |   |
|                                                                                                                                                                         |   |   | 313,750 |   |   |   | 361,316 |   |
| **DEFERRED                    CHARGES AND OTHER ASSETS:**                                                                                                                    |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                     |   |   | 500,576 |   |   |   | 500,576 |   |
| Regulatory                    assets                                                                                                                                         |   |   | 214,896 |   |   |   | 247,595 |   |
| Pension                    assets                                                                                                                                            |   |   | 5,962 |   |   |   | - |   |
| Property                    taxes                                                                                                                                            |   |   | 22,010 |   |   |   | 22,010 |   |
| Other                                                                                                                                                                        |   |   | 29,427 |   |   |   | 30,042 |   |
|                                                                                                                                                                         |   |   | 772,871 |   |   |   | 800,223 |   |
|                                                                                                                                                                         |   | $ | 1,734,478 |   |   | $ | 1,798,642 |   |
| **LIABILITIES                    AND CAPITALIZATION**                                                                                                                        |   |   |   |   |   |   |   |   |
| **CURRENT                    LIABILITIES:**                                                                                                                                  |   |   |   |   |   |   |   |   |
| Currently                    payable long-term debt                                                                                                                          |   | $ | 55,134 |   |   | $ | 30,000 |   |
| Accounts                    payable-                                                                                                                                         |   |   |   |   |   |   |   |   |
| Associated                    companies                                                                                                                                      |   |   | 103,250 |   |   |   | 84,884 |   |
| Other                                                                                                                                                                        |   |   | 4,043 |   |   |   | 4,021 |   |
| Notes                    payable                    to associated companies                                                                                                  |   |   | 190,758 |   |   |   | 153,567 |   |
| Accrued                    taxes                                                                                                                                             |   |   | 52,865 |   |   |   | 47,318 |   |
| Lease                    market                    valuation liability                                                                                                       |   |   | 23,655 |   |   |   | 24,600 |   |
| Other                                                                                                                                                                        |   |   | 32,906 |   |   |   | 37,551 |   |
|                                                                                                                                                                         |   |   | 462,611 |   |   |   | 381,941 |   |
| **CAPITALIZATION:**                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Common                    stockholder's equity-                                                                                                                              |   |   |   |   |   |   |   |   |
| Common                    stock,                    $5 par value, authorized 60,000,000 shares -                                                                             |   |   |   |   |   |
| 29,402,054                    shares outstanding                                                                                                                             |   |   | 147,010 |   |   |   | 147,010 |   |
| Other                    paid-in                    capital                                                                                                                  |   |   | 172,949 |   |   |   | 166,786 |   |
| Accumulated                    other comprehensive loss                                                                                                                      |   |   | (34,621 | ) |   |   | (36,804 | ) |
| Retained                    earnings                                                                                                                                         |   |   | 157,139 |   |   |   | 204,423 |   |
| Total                    common                    stockholder's equity                                                                                                      |   |   | 442,477 |   |   |   | 481,415 |   |
| Long-term                    debt                                                                                                                                            |   |   | 303,220 |   |   |   | 358,281 |   |
|                                                                                                                                                                         |   |   | 745,697 |   |   |   | 839,696 |   |
| **NONCURRENT                    LIABILITIES:**                                                                                                                               |   |   |   |   |   |   |   |   |
| Accumulated                    deferred income taxes                                                                                                                         |   |   | 141,813 |   |   |   | 161,024 |   |
| Accumulated                    deferred investment tax credits                                                                                                               |   |   | 10,389 |   |   |   | 11,014 |   |
| Lease                    market                    valuation liability                                                                                                       |   |   | 192,774 |   |   |   | 218,800 |   |
| Retirement                    benefits                                                                                                                                       |   |   | 77,275 |   |   |   | 77,843 |   |
| Asset                    retirement obligations                                                                                                                              |   |   | 27,899 |   |   |   | 26,543 |   |
| Deferred                    revenues - electric service programs                                                                                                             |   |   | 15,896 |   |   |   | 23,546 |   |
| Other                                                                                                                                                                        |   |   | 60,124 |   |   |   | 58,235 |   |
|                                                                                                                                                                         |   |   | 526,170 |   |   |   | 577,005 |   |
| **COMMITMENTS                    AND CONTINGENCIES (Note 10)**                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   | $ | 1,734,478 |   |   | $ | 1,798,642 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to The                  Toledo                  Edison Company are |   |
|  an                    integral part of these balance sheets.                                                                                                           |   |   |   |   |   |   |   |   |

----

| **THE                    TOLEDO EDISON COMPANY**                                                                                                                                        |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                    |   |   |   |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF CASH FLOWS**                                                                                                                            |   |
| **(Unaudited)**                                                                                                                                                                         |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |
|                                                                                                                                                                                    |   | **Nine                    Months Ended** |   |
|                                                                                                                                                                                    |   | **September                    30,** |   |
|                                                                                                                                                                                    |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                    |   | ***(In                    thousands)*** |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                            |   |   |   |   |   |   |
| Net                    income                                                                                                                                                           |   | $ | 72,799 |   |   | $ | 90,556 |   |
| Adjustments                    to                    reconcile net income to net cash from operating                    activities-                                                     |   |   |   |   |   |   |   |   |
| Provision                    for                    depreciation                                                                                                                        |   |   | 27,475 |   |   |   | 24,723 |   |
| Amortization                    of regulatory assets                                                                                                                                    |   |   | 79,284 |   |   |   | 73,909 |   |
| Deferral                    of                    new regulatory assets                                                                                                                 |   |   | (47,373 | ) |   |   | (43,186 | ) |
| Deferred                    rents                    and lease market valuation liability                                                                                               |   |   | (23,551 | ) |   |   | (27,114 | ) |
| Deferred                    income taxes and investment tax credits, net                                                                                                                |   |   | (32,530 | ) |   |   | (28,603 | ) |
| Accrued                    compensation and retirement benefits                                                                                                                         |   |   | 3,493 |   |   |   | 2,766 |   |
| Pension                    trust                    contribution                                                                                                                        |   |   | (7,659 | ) |   |   | - |   |
| Decrease                    (increase) in operating assets-                                                                                                                             |   |   |   |   |   |   |   |   |
| Receivables                                                                                                                                                                             |   |   | (13,368 | ) |   |   | (25,069 | ) |
| Prepayments                    and other current assets                                                                                                                                 |   |   | 224 |   |   |   | (75 | ) |
| Increase                    (decrease) in operating liabilities-                                                                                                                        |   |   |   |   |   |   |   |   |
| Accounts                    payable                                                                                                                                                     |   |   | 9,515 |   |   |   | 1,102 |   |
| Accrued                    taxes                                                                                                                                                        |   |   | 7,463 |   |   |   | 3,458 |   |
| Accrued                    interest                                                                                                                                                     |   |   | 3,444 |   |   |   | (709 | ) |
| Electric                    service prepayment programs                                                                                                                                 |   |   | (7,650 | ) |   |   | (6,744 | ) |
|                      Other                                                                                                                                                         |   |   | 1,953 |   |   |   | 1,716 |   |
| Net                    cash                    provided from operating activities                                                                                                       |   |   | 73,519 |   |   |   | 66,730 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                            |   |   |   |   |   |   |   |   |
| New                    Financing-                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Short-term                    borrowings, net                                                                                                                                           |   |   | 37,191 |   |   |   | 113,886 |   |
| Equity                    contribution from parent                                                                                                                                      |   |   | 6,125 |   |   |   | - |   |
| Redemptions                    and Repayments-                                                                                                                                          |   |   |   |   |   |   |   |   |
| Preferred                    stock                                                                                                                                                      |   |   | - |   |   |   | (30,000 | ) |
| Long-term                    debt                                                                                                                                                       |   |   | (30,014 | ) |   |   | (53,650 | ) |
| Dividend                    Payments-                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Common                    stock                                                                                                                                                         |   |   | (120,000 | ) |   |   | (50,000 | ) |
| Preferred                    stock                                                                                                                                                      |   |   | - |   |   |   | (3,597 | ) |
| Net                    cash used                    for financing activities                                                                                                            |   |   | (106,698 | ) |   |   | (23,361 | ) |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                            |   |   |   |   |   |   |   |   |
| Property                    additions                                                                                                                                                   |   |   | (41,573 | ) |   |   | (45,661 | ) |
| Loan                    repayments from (loans to) associated companies, net                                                                                                            |   |   | 21,438 |   |   |   | (61,549 | ) |
| Collection                    of                    principal on long-term notes receivable                                                                                             |   |   | 36,077 |   |   |   | 53,766 |   |
| Redemption                    of                    lessor notes                                                                                                                        |   |   | 14,819 |   |   |   | 9,275 |   |
| Sales                    of                    investment securities held in trusts                                                                                                     |   |   | 39,260 |   |   |   | 50,255 |   |
| Purchases                    of                    investment securities held in trusts                                                                                                 |   |   | (39,557 | ) |   |   | (50,433 | ) |
|                      Other                                                                                                                                                         |   |   | 2,713 |   |   |   | 983 |   |
| Net                    cash                    provided from (used for) investing activities                                                                                            |   |   | 33,177 |   |   |   | (43,364 | ) |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Net                    increase                    (decrease) in cash and cash equivalents                                                                                              |   |   | (2 | ) |   |   | 5 |   |
| Cash                    and cash                    equivalents at beginning of period                                                                                                  |   |   | 22 |   |   |   | 15 |   |
| Cash                    and cash                    equivalents at end of period                                                                                                        |   | $ | 20 |   |   | $ | 20 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    The Toledo                    Edison Company are an |   |
| integral                    part                    of these statements.                                                                                                                |   |   |   |   |   |   |   |   |

----

***Report      of Independent Registered Public Accounting Firm***

----

**THE      TOLEDO      EDISON COMPANY**

**MANAGEMENT’S      NARRATIVE**

**ANALYSIS      OF RESULTS OF OPERATIONS**

**Results      of Operations**

*Revenues*

| **Retail                Generation KWH Sales**                                            |   | **Increase** |    |
|-------------------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                                      |   |         |    |   |
| Residential                                                                               |   |         | 8.0     | % |
| Commercial                                                                                |   |         | 3.1     | % |
| Industrial                                                                                |   |         | 1.0     | % |
| **    Increase                in Retail Generation  Sales** |   |         | **3.1** | **%** |

| **Retail                Generation Revenues**                                     |   | **Increase**                       |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                              |   | ***(In                millions***) |   |
| Residential                                                                       |   | $                                  | 8      |   |
| Commercial                                                                        |   |                               | 4      |   |
| Industrial                                                                        |   |                               | 12     |   |
| **    Increase                in Retail Generation Revenues** |   | **$**                              | **24** |   |

| **Distribution                KWH Deliveries**                                 |   | **Increase** |    |
|--------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                           |   |         |    |   |
| Residential                                                                    |   |         | 5.5     | % |
| Commercial                                                                     |   |         | 2.6     | % |
| Industrial                                                                     |   |         | 1.1     | % |
| **    Increase                in Distribution Deliveries** |   |         | **2.5** | **%** |

----

| **Distribution                Revenues**                                   |   | **Increase                (Decrease)** |   |
|----------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                       |   | ***(In                millions)***     |   |
|    Residential                                              |   | $                                      | 7      |   |
|    Commercial                                               |   |                                   | 3      |   |
|    Industrial                                               |   |                                   | (4     | ) |
| **   Net                Increase in Distribution Revenues** |   | **$**                                  | **6**  |   |

*Expenses*

| **Expenses                – Changes**                         |   | **Increase                (Decrease)** |   |
|---------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                |   | ***(In                millions)***     |   |
| Purchased                  power costs                              |   | $                                      | 37     |   |
| Nuclear                  operating costs                            |   |                                   | (1     | ) |
| Other                  operating costs                              |   |                                   | 12     |   |
| Provision                  for                  depreciation        |   |                                   | 3      |   |
| Amortization                  of regulatory assets                  |   |                                   | 5      |   |
| Deferral                  of                  new regulatory assets |   |                                   | (4     | ) |
| **Net                  increase in expenses**                       |   | **$**                                  | 52     |   |

*Other      Expense*

**Legal      Proceedings**

**New      Accounting Standards and Interpretations**

----

| **JERSEY                    CENTRAL POWER & LIGHT COMPANY**                                                                                                                                                 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**                                                                                                                               |   |
| **(Unaudited)**                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                            |   | **Three                    Months Ended** |   |   | **Nine                    Months Ended** |   |
|                                                                                                                                                                                                            |   | **September                    30,** |   |   | **September                    30,** |   |
|                                                                                                                                                                                                            |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
| **STATEMENTS                    OF INCOME**                                                                                                                                                                     |   | ***(In                    thousands)***        |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES:**                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                    sales                                                                                                                                                                               |   | $ | 1,018,049 |   |   | $ | 895,389 |   |   | $ | 2,457,146 |   |   | $ | 2,059,499 |   |
| Excise                    tax                    collections                                                                                                                                                    |   |   | 15,168 |   |   |   | 15,679 |   |   |   | 39,849 |   |   |   | 38,845 |   |
| Total                    revenues                                                                                                                                                                               |   |   | 1,033,217 |   |   |   | 911,068 |   |   |   | 2,496,995 |   |   |   | 2,098,344 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchased                    power                                                                                                                                                                              |   |   | 654,418 |   |   |   | 546,125 |   |   |   | 1,505,420 |   |   |   | 1,204,880 |   |
| Other                    operating costs                                                                                                                                                                        |   |   | 87,010 |   |   |   | 90,578 |   |   |   | 236,225 |   |   |   | 245,711 |   |
| Provision                    for                    depreciation                                                                                                                                                |   |   | 22,032 |   |   |   | 21,099 |   |   |   | 63,867 |   |   |   | 62,553 |   |
| Amortization                    of regulatory assets                                                                                                                                                            |   |   | 107,837 |   |   |   | 78,052 |   |   |   | 296,955 |   |   |   | 210,323 |   |
| General                    taxes                                                                                                                                                                                |   |   | 18,631 |   |   |   | 19,187 |   |   |   | 51,183 |   |   |   | 49,691 |   |
| Total                    expenses                                                                                                                                                                               |   |   | 889,928 |   |   |   | 755,041 |   |   |   | 2,153,650 |   |   |   | 1,773,158 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                    INCOME**                                                                                                                                                                         |   |   | 143,289 |   |   |   | 156,027 |   |   |   | 343,345 |   |   |   | 325,186 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                    INCOME (EXPENSE):**                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                    income                                                                                                                                                                         |   |   | 2,967 |   |   |   | 2,091 |   |   |   | 9,266 |   |   |   | 8,162 |   |
| Interest                    expense                                                                                                                                                                             |   |   | (24,666 | ) |   |   | (21,437 | ) |   |   | (71,576 | ) |   |   | (62,420 | ) |
| Capitalized                    interest                                                                                                                                                                         |   |   | 483 |   |   |   | 1,004 |   |   |   | 1,559 |   |   |   | 2,933 |   |
| Total                    other                    expense                                                                                                                                                       |   |   | (21,216 | ) |   |   | (18,342 | ) |   |   | (60,751 | ) |   |   | (51,325 | ) |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                    BEFORE INCOME TAXES**                                                                                                                                                               |   |   | 122,073 |   |   |   | 137,685 |   |   |   | 282,594 |   |   |   | 273,861 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                    TAXES**                                                                                                                                                                             |   |   | 46,275 |   |   |   | 58,316 |   |   |   | 118,637 |   |   |   | 120,506 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                    INCOME**                                                                                                                                                                               |   |   | 75,798 |   |   |   | 79,369 |   |   |   | 163,957 |   |   |   | 153,355 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **PREFERRED                    STOCK DIVIDEND REQUIREMENTS**                                                                                                                                                    |   |   | - |   |   |   | 917 |   |   |   | - |   |   |   | 1,167 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EARNINGS                    ON COMMON STOCK**                                                                                                                                                                 |   | $ | 75,798 |   |   | $ | 78,452 |   |   | $ | 163,957 |   |   | $ | 152,188 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **STATEMENTS                    OF COMPREHENSIVE INCOME**                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                    INCOME**                                                                                                                                                                               |   | $ | 75,798 |   |   | $ | 79,369 |   |   | $ | 163,957 |   |   | $ | 153,355 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                    COMPREHENSIVE INCOME (LOSS):**                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                    and                    other postretirement benefits                                                                                                                                 |   |   | (2,114 | ) |   |   | - |   |   |   | (6,344 | ) |   |   | - |   |
| Unrealized                    gain on derivative hedges                                                                                                                                                         |   |   | 69 |   |   |   | 100 |   |   |   | 235 |   |   |   | 207 |   |
| Other                    comprehensive income (loss)                                                                                                                                                            |   |   | (2,045 | ) |   |   | 100 |   |   |   | (6,109 | ) |   |   | 207 |   |
| Income                    tax                    expense (benefit) related to other                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   comprehensive                    income                                                                                                                                                             |   |   | (994 | ) |   |   | 41 |   |   |   | (2,973 | ) |   |   | 84 |   |
| Other                    comprehensive income (loss), net of tax                                                                                                                                                |   |   | (1,051 | ) |   |   | 59 |   |   |   | (3,136 | ) |   |   | 123 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                    COMPREHENSIVE INCOME**                                                                                                                                                               |   | $ | 74,747 |   |   | $ | 79,428 |   |   | $ | 160,821 |   |   | $ | 153,478 |   |
|                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    Jersey                    Central Power & Light Company are an integral |   |
|  part                    of                    these statements.                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **JERSEY                    CENTRAL POWER & LIGHT COMPANY**                                                                                                                                        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                   |   |   |   |   |   |   |
| **CONSOLIDATED                    BALANCE SHEETS**                                                                                                                                                     |   |
| **(Unaudited)**                                                                                                                                                                                        |   |
|                                                                                                                                                                                                   |   | **September                    30,** |   |   | **December                    31,** |   |
|                                                                                                                                                                                                   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                   |   | ***(In                    thousands)*** |   |
| **ASSETS**                                                                                                                                                                                             |   |   |   |   |   |   |
| **CURRENT                    ASSETS:**                                                                                                                                                                 |   |   |   |   |   |   |
| Cash                    and cash                    equivalents                                                                                                                                        |   | $ | 77 |   |   | $ | 41 |   |
| Receivables-                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Customers                    (less accumulated provisions of $4,821,000 and $3,524,000,                                                                                                                |   |   |   |   |   |   |   |   |
| respectively,                    for uncollectible accounts)                                                                                                                                           |   |   | 396,700 |   |   |   | 254,046 |   |
| Associated                    companies                                                                                                                                                                |   |   | 369 |   |   |   | 11,574 |   |
| Other                    (less                    accumulated provisions of $718,000 and $204,000,                                                                                                     |   |   |   |   |   |   |   |   |
| respectively,                    for uncollectible accounts)                                                                                                                                           |   |   | 62,235 |   |   |   | 40,023 |   |
| Notes                    receivable - associated companies                                                                                                                                             |   |   | 22,734 |   |   |   | 24,456 |   |
| Materials                    and                    supplies, at average cost                                                                                                                          |   |   | 1,915 |   |   |   | 2,043 |   |
| Prepaid                    taxes                                                                                                                                                                       |   |   | 41,670 |   |   |   | 13,333 |   |
|                      Other                                                                                                                                                                        |   |   | 14,080 |   |   |   | 18,076 |   |
|                                                                                                                                                                                                   |   |   | 539,780 |   |   |   | 363,592 |   |
| **UTILITY                    PLANT:**                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| In                    service                                                                                                                                                                          |   |   | 4,122,325 |   |   |   | 4,029,070 |   |
| Less                    -                    Accumulated provision for depreciation                                                                                                                    |   |   | 1,490,846 |   |   |   | 1,473,159 |   |
|                                                                                                                                                                                                   |   |   | 2,631,479 |   |   |   | 2,555,911 |   |
| Construction                    work in progress                                                                                                                                                       |   |   | 84,199 |   |   |   | 78,728 |   |
|                                                                                                                                                                                                   |   |   | 2,715,678 |   |   |   | 2,634,639 |   |
| **OTHER                    PROPERTY AND INVESTMENTS:**                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Nuclear                    fuel                    disposal trust                                                                                                                                      |   |   | 172,278 |   |   |   | 171,045 |   |
| Nuclear                    plant                    decommissioning trusts                                                                                                                             |   |   | 177,217 |   |   |   | 164,108 |   |
|                      Other                                                                                                                                                                        |   |   | 2,075 |   |   |   | 2,047 |   |
|                                                                                                                                                                                                   |   |   | 351,570 |   |   |   | 337,200 |   |
| **DEFERRED                    CHARGES AND OTHER ASSETS:**                                                                                                                                              |   |   |   |   |   |   |   |   |
| Regulatory                    assets                                                                                                                                                                   |   |   | 1,757,516 |   |   |   | 2,152,332 |   |
| Goodwill                                                                                                                                                                                               |   |   | 1,826,190 |   |   |   | 1,962,361 |   |
| Pension                    assets                                                                                                                                                                      |   |   | 43,183 |   |   |   | 14,660 |   |
|                      Other                                                                                                                                                                        |   |   | 15,124 |   |   |   | 17,781 |   |
|                                                                                                                                                                                                   |   |   | 3,642,013 |   |   |   | 4,147,134 |   |
|                                                                                                                                                                                                   |   | $ | 7,249,041 |   |   | $ | 7,482,565 |   |
| **LIABILITIES                    AND CAPITALIZATION**                                                                                                                                                  |   |   |   |   |   |   |   |   |
| **CURRENT                    LIABILITIES:**                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Currently                    payable long-term debt                                                                                                                                                    |   | $ | 26,680 |   |   | $ | 32,683 |   |
| Short-term                    borrowings-                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Associated                    companies                                                                                                                                                                |   |   | 155,395 |   |   |   | 186,540 |   |
| Accounts                    payable-                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Associated                    companies                                                                                                                                                                |   |   | 22,399 |   |   |   | 80,426 |   |
| Other                                                                                                                                                                                                  |   |   | 211,788 |   |   |   | 160,359 |   |
| Accrued                    taxes                                                                                                                                                                       |   |   | 25,793 |   |   |   | 1,451 |   |
| Accrued                    interest                                                                                                                                                                    |   |   | 27,520 |   |   |   | 14,458 |   |
| Cash                    collateral from suppliers                                                                                                                                                      |   |   | 68 |   |   |   | 32,311 |   |
|                      Other                                                                                                                                                                        |   |   | 85,746 |   |   |   | 96,139 |   |
|                                                                                                                                                                                                   |   |   | 555,389 |   |   |   | 604,367 |   |
| **CAPITALIZATION:**                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Common                    stockholder's equity-                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Common                    stock,                    $10 par value, authorized 16,000,000 shares-                                                                                                       |   |   |   |   |   |   |   |   |
| 14,421,637                    and                    15,009,335 shares outstanding, respectively                                                                                                       |   |   | 144,216 |   |   |   | 150,093 |   |
| Other                    paid-in                    capital                                                                                                                                            |   |   | 2,657,775 |   |   |   | 2,908,279 |   |
| Accumulated                    other comprehensive loss                                                                                                                                                |   |   | (47,390 | ) |   |   | (44,254 | ) |
| Retained                    earnings                                                                                                                                                                   |   |   | 266,342 |   |   |   | 145,480 |   |
| Total                    common                    stockholder's equity                                                                                                                                |   |   | 3,020,943 |   |   |   | 3,159,598 |   |
| Long-term                    debt                    and other long-term obligations                                                                                                                   |   |   | 1,568,296 |   |   |   | 1,320,341 |   |
|                                                                                                                                                                                                   |   |   | 4,589,239 |   |   |   | 4,479,939 |   |
| **NONCURRENT                    LIABILITIES:**                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Power                    purchase                    contract loss liability                                                                                                                           |   |   | 872,305 |   |   |   | 1,182,108 |   |
| Accumulated                    deferred income taxes                                                                                                                                                   |   |   | 762,782 |   |   |   | 803,944 |   |
| Nuclear                    fuel                    disposal costs                                                                                                                                      |   |   | 190,524 |   |   |   | 183,533 |   |
| Asset                    retirement obligations                                                                                                                                                        |   |   | 88,334 |   |   |   | 84,446 |   |
|                      Other                                                                                                                                                                        |   |   | 190,468 |   |   |   | 144,228 |   |
|                                                                                                                                                                                                   |   |   | 2,104,413 |   |   |   | 2,398,259 |   |
| **COMMITMENTS                    AND CONTINGENCIES (Note 10)**                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                   |   | $ | 7,249,041 |   |   | $ | 7,482,565 |   |
|                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    Jersey                    Central Power & Light Company are an |   |   |   |   |   |
| integral                    part                    of these balance sheets.                                                                                                                           |   |   |   |   |   |   |   |   |

----

| **JERSEY                    CENTRAL POWER & LIGHT COMPANY**                                                                                                                                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                            |   |   |   |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF CASH FLOWS**                                                                                                                                    |   |
| **(Unaudited)**                                                                                                                                                                                 |   |
|                                                                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                                                                            |   | **Nine                    Months Ended** |   |
|                                                                                                                                                                                            |   | **September                    30,** |   |
|                                                                                                                                                                                            |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                            |   | ***(In                    thousands)*** |   |
|                                                                                                                                                                                            |   |   |   |   |   |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                                    |   |   |   |   |   |   |
| Net                    income                                                                                                                                                                   |   | $ | 163,957 |   |   | $ | 153,355 |   |
| Adjustments                    to                    reconcile net income to net cash from operating                    activities-                                                             |   |   |   |   |   |   |   |   |
| Provision                    for                    depreciation                                                                                                                                |   |   | 63,867 |   |   |   | 62,553 |   |
| Amortization                    of regulatory assets                                                                                                                                            |   |   | 296,955 |   |   |   | 210,323 |   |
| Deferred                    purchased power and other costs                                                                                                                                     |   |   | (157,201 | ) |   |   | (213,621 | ) |
| Deferred                    income taxes and investment tax credits, net                                                                                                                        |   |   | (23,786 | ) |   |   | 25,217 |   |
| Accrued                    compensation and retirement benefits                                                                                                                                 |   |   | (17,543 | ) |   |   | (4,196 | ) |
| Cash                    collateral returned to suppliers                                                                                                                                        |   |   | (32,243 | ) |   |   | (108,926 | ) |
| Pension                    trust                    contribution                                                                                                                                |   |   | (17,800 | ) |   |   | - |   |
| Decrease                    (increase) in operating assets-                                                                                                                                     |   |   |   |   |   |   |   |   |
| Receivables                                                                                                                                                                                     |   |   | (153,660 | ) |   |   | (50,337 | ) |
| Materials                    and                    supplies                                                                                                                                    |   |   | 127 |   |   |   | 86 |   |
| Prepaid                    taxes                                                                                                                                                                |   |   | (28,337 | ) |   |   | (29,923 | ) |
| Other                    current                    assets                                                                                                                                      |   |   | 2,079 |   |   |   | (2,118 | ) |
| Increase                    (decrease) in operating liabilities-                                                                                                                                |   |   |   |   |   |   |   |   |
| Accounts                    payable                                                                                                                                                             |   |   | (6,598 | ) |   |   | (8,131 | ) |
| Accrued                    taxes                                                                                                                                                                |   |   | 29,318 |   |   |   | (16,992 | ) |
| Accrued                    interest                                                                                                                                                             |   |   | 13,062 |   |   |   | 16,296 |   |
| Tax                    collections payable                                                                                                                                                      |   |   | (12,478 | ) |   |   | (10,316 | ) |
| Other                                                                                                                                                                                           |   |   | (7,440 | ) |   |   | (4,814 | ) |
| Net                    cash                    provided from operating activities                                                                                                               |   |   | 112,279 |   |   |   | 18,456 |   |
|                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                                    |   |   |   |   |   |   |   |   |
| New                    Financing-                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Long-term                    debt                                                                                                                                                               |   |   | 549,999 |   |   |   | 382,400 |   |
| Equity                    contribution from parent                                                                                                                                              |   |   | 4,636 |   |   |   | - |   |
| Redemptions                    and Repayments-                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Long-term                    debt                                                                                                                                                               |   |   | (324,256 | ) |   |   | (162,157 | ) |
| Short-term                    borrowings, net                                                                                                                                                   |   |   | (31,145 | ) |   |   | (44,162 | ) |
| Common                    stock                                                                                                                                                                 |   |   | (125,000 | ) |   |   | - |   |
| Preferred                    stock                                                                                                                                                              |   |   | - |   |   |   | (13,461 | ) |
| Dividend                    Payments-                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Common                    stock                                                                                                                                                                 |   |   | (43,000 | ) |   |   | (45,000 | ) |
| Preferred                    stock                                                                                                                                                              |   |   | - |   |   |   | (354 | ) |
| Net                    cash                    provided from financing activities                                                                                                               |   |   | 31,234 |   |   |   | 117,266 |   |
|                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                                    |   |   |   |   |   |   |   |   |
| Property                    additions                                                                                                                                                           |   |   | (144,668 | ) |   |   | (123,540 | ) |
| Loan                    repayments from (loans to) associated companies, net                                                                                                                    |   |   | 1,722 |   |   |   | (8,638 | ) |
| Sales                    of                    investment securities held in trusts                                                                                                             |   |   | 169,649 |   |   |   | 169,676 |   |
| Purchases                    of                    investment securities held in trusts                                                                                                         |   |   | (171,820 | ) |   |   | (171,847 | ) |
|                      Other                                                                                                                                                                 |   |   | 1,640 |   |   |   | (1,417 | ) |
| Net                    cash used                    for investing activities                                                                                                                    |   |   | (143,477 | ) |   |   | (135,766 | ) |
|                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Net                    increase                    (decrease) in cash and cash equivalents                                                                                                      |   |   | 36 |   |   |   | (44 | ) |
| Cash                    and cash                    equivalents at beginning of period                                                                                                          |   |   | 41 |   |   |   | 102 |   |
| Cash                    and cash                    equivalents at end of period                                                                                                                |   | $ | 77 |   |   | $ | 58 |   |
|                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    Jersey                    Central Power & Light Company |   |
| are                    an                    integral part of these statements.                                                                                                                 |   |   |   |   |   |   |   |   |

----

***Report      of Independent Registered Public Accounting Firm***

----

**JERSEY      CENTRAL POWER & LIGHT COMPANY**

**MANAGEMENT’S      NARRATIVE**

**ANALYSIS      OF      RESULTS OF OPERATIONS**

**Results      of Operations**

*Revenues*

| **Retail                Generation KWH Sales**      |   | **Increase****(Decrease)** |    |
|-----------------------------------------------------|--------|----------------------------|---------|
|                                                |   |                       |    |   |
| Residential                                         |   |                       | 2.3     |  % |
| Commercial                                          |   |                       | 1.6     |  % |
| Industrial                                          |   |                       | (7.0    | )% |
| **Net                Increase in Generation Sales** |   |                       | **1.6** | ** %** |

| **Retail                Generation Revenues**      |   | **Increase**                       |    |
|----------------------------------------------------|--------|------------------------------------|---------|
|                                               |   | ***(In                millions)*** |    |
| Residential                                        |   | $                                  | 145     |   |
| Commercial                                         |   |                               | 100     |   |
| Industrial                                         |   |                               | 5       |   |
| **Increase                in Generation Revenues** |   | **$**                              | **250** |   |

| **Distribution                KWH Deliveries**         |   | **Increase** |   |
|--------------------------------------------------------|--------|--------------|--------|
|                                                   |   |         |   |   |   |
| Residential                                            |   |         |   | 2.3 | % |
| Commercial                                             |   |         |   | 3.3 | % |
| Industrial                                             |   |         |   | 1.1 | % |
| **Increase                in Distribution Deliveries** |   |         |   | **2.6** | **%** |

----

| **Distribution                Revenues**             |   |   | **Increase**                       |   |
|------------------------------------------------------|--------|--------|------------------------------------|--------|
|                                                 |   |   | ***(In                millions)*** |
| Residential                                          |   |   | $                                  | 35     |   |
| Commercial                                           |   |   |                               | 38     |   |
| Industrial                                           |   |   |                               | 6      |   |
| **Increase                in Distribution Revenues** |   |   | **$**                              | **79** |   |

*Expenses*

| ** Expenses  -                Changes**   |   |   | **Increase****(Decrease)**         |   |
|----------------------------------------------------------|--------|--------|------------------------------------|--------|
|                                                |   |   | ***(In                millions)*** |
| Purchased                power costs                     |   |   | $                                  | 300    |   |
| Other                operating costs                     |   |   |                               | (9     | ) |
| Provision                for                depreciation |   |   |                               | 1      |   |
| Amortization                of regulatory assets         |   |   |                               | 87     |   |
| General                Taxes                             |   |   |                               | 1      |   |
| **Net                increase in expenses**              |   |   | $                                  | 380    |   |

*Other      Expenses*

**Legal      Proceedings**

**New      Accounting Standards and Interpretations**

----

| **METROPOLITAN                    EDISON COMPANY**                                                                                                                                                         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**                                                                                                                          |   |
| **(Unaudited)**                                                                                                                                                                                            |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                       |   | **Three                    Months Ended** |   |   | **Nine                    Months Ended** |   |
|                                                                                                                                                                                                       |   | **September                    30,** |   |   | **September                    30,** |   |
|                                                                                                                                                                                                       |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                       |   | ***(In                    thousands)*** |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **REVENUES:**                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                    sales                                                                                                                                                                          |   | $ | 391,083 |   |   | $ | 337,750 |   |   | $ | 1,087,460 |   |   | $ | 898,320 |   |
| Gross                    receipts                    tax collections                                                                                                                                       |   |   | 19,524 |   |   |   | 18,431 |   |   |   | 55,146 |   |   |   | 51,293 |   |
| Total                    revenues                                                                                                                                                                          |   |   | 410,607 |   |   |   | 356,181 |   |   |   | 1,142,606 |   |   |   | 949,613 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchased                    power                                                                                                                                                                         |   |   | 209,842 |   |   |   | 184,508 |   |   |   | 584,249 |   |   |   | 487,465 |   |
| Other                    operating costs                                                                                                                                                                   |   |   | 106,104 |   |   |   | 108,740 |   |   |   | 315,227 |   |   |   | 229,394 |   |
| Provision                    for                    depreciation                                                                                                                                           |   |   | 11,154 |   |   |   | 10,197 |   |   |   | 31,969 |   |   |   | 31,390 |   |
| Amortization                    of regulatory assets                                                                                                                                                       |   |   | 36,853 |   |   |   | 33,560 |   |   |   | 101,965 |   |   |   | 89,277 |   |
| Deferral                    of                    new regulatory assets                                                                                                                                    |   |   | (19,151 | ) |   |   | (44,213 | ) |   |   | (93,772 | ) |   |   | (89,794 | ) |
| General                    taxes                                                                                                                                                                           |   |   | 21,986 |   |   |   | 21,362 |   |   |   | 63,208 |   |   |   | 60,578 |   |
| Total                    expenses                                                                                                                                                                          |   |   | 366,788 |   |   |   | 314,154 |   |   |   | 1,002,846 |   |   |   | 808,310 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                    INCOME**                                                                                                                                                                    |   |   | 43,819 |   |   |   | 42,027 |   |   |   | 139,760 |   |   |   | 141,303 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                    INCOME (EXPENSE):**                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                    income                                                                                                                                                                         |   |   | 7,239 |   |   |   | 8,053 |   |   |   | 22,740 |   |   |   | 25,767 |   |
| Miscellaneous                    income                                                                                                                                                                    |   |   | 1,366 |   |   |   | 1,477 |   |   |   | 3,973 |   |   |   | 5,881 |   |
| Interest                    expense                                                                                                                                                                        |   |   | (13,291 | ) |   |   | (12,291 | ) |   |   | (38,471 | ) |   |   | (35,546 | ) |
| Capitalized                    interest                                                                                                                                                                    |   |   | 292 |   |   |   | 355 |   |   |   | 940 |   |   |   | 966 |   |
| Total                    other                    expense                                                                                                                                                  |   |   | (4,394 | ) |   |   | (2,406 | ) |   |   | (10,818 | ) |   |   | (2,932 | ) |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                    BEFORE INCOME TAXES**                                                                                                                                                          |   |   | 39,425 |   |   |   | 39,621 |   |   |   | 128,942 |   |   |   | 138,371 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                    TAXES**                                                                                                                                                                        |   |   | 14,737 |   |   |   | 14,631 |   |   |   | 53,145 |   |   |   | 55,390 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                    INCOME**                                                                                                                                                                          |   |   | 24,688 |   |   |   | 24,990 |   |   |   | 75,797 |   |   |   | 82,981 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                    COMPREHENSIVE INCOME (LOSS):**                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                    and                    other postretirement benefits                                                                                                                            |   |   | (1,452 | ) |   |   | - |   |   |   | (4,357 | ) |   |   | - |   |
| Unrealized                    gain on derivative hedges                                                                                                                                                    |   |   | 83 |   |   |   | 83 |   |   |   | 251 |   |   |   | 251 |   |
| Other                    comprehensive income (loss)                                                                                                                                                       |   |   | (1,369 | ) |   |   | 83 |   |   |   | (4,106 | ) |   |   | 251 |   |
| Income                    tax                    expense (benefit) related to other                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   comprehensive                    income                                                                                                                                                        |   |   | (693 | ) |   |   | 34 |   |   |   | (2,078 | ) |   |   | 104 |   |
| Other                    comprehensive income (loss), net of tax                                                                                                                                           |   |   | (676 | ) |   |   | 49 |   |   |   | (2,028 | ) |   |   | 147 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                    COMPREHENSIVE INCOME**                                                                                                                                                          |   | $ | 24,012 |   |   | $ | 25,039 |   |   | $ | 73,769 |   |   | $ | 83,128 |   |
|                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    Metropolitan                    Edison Company are an integral part of |   |
| these                    statements.                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **METROPOLITAN                    EDISON COMPANY**                                                                                                                                                      |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                    |   |   |   |   |   |   |
| **CONSOLIDATED                    BALANCE SHEETS**                                                                                                                                                      |   |
| **(Unaudited)**                                                                                                                                                                                         |   |
|                                                                                                                                                                                                    |   | **September                    30,** |   |   | **December                    31,** |   |
|                                                                                                                                                                                                    |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                    |   | ***(In                    thousands)*** |   |
| **ASSETS**                                                                                                                                                                                              |   |   |   |   |   |   |
| **CURRENT                    ASSETS:**                                                                                                                                                                  |   |   |   |   |   |   |
| Cash                    and cash                    equivalents                                                                                                                                         |   | $ | 126 |   |   | $ | 130 |   |
| Receivables-                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Customers                    (less accumulated provisions of $4,740,000 and $4,153,000,                                                                                                                 |   |   |   |   |   |   |   |   |
| respectively,                    for uncollectible accounts)                                                                                                                                            |   |   | 154,622 |   |   |   | 127,084 |   |
| Associated                    companies                                                                                                                                                                 |   |   | 23,728 |   |   |   | 3,604 |   |
| Other                                                                                                                                                                                                   |   |   | 18,043 |   |   |   | 8,107 |   |
| Notes                    receivable from associated companies                                                                                                                                           |   |   | 34,620 |   |   |   | 31,109 |   |
| Prepaid                    taxes                                                                                                                                                                        |   |   | 5,755 |   |   |   | 13,533 |   |
|                      Other                                                                                                                                                                         |   |   | 1,976 |   |   |   | 1,424 |   |
|                                                                                                                                                                                                    |   |   | 238,870 |   |   |   | 184,991 |   |
| **UTILITY                    PLANT:**                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| In                    service                                                                                                                                                                           |   |   | 1,976,453 |   |   |   | 1,920,563 |   |
| Less                    -                    Accumulated provision for depreciation                                                                                                                     |   |   | 755,018 |   |   |   | 739,719 |   |
|                                                                                                                                                                                                    |   |   | 1,221,435 |   |   |   | 1,180,844 |   |
| Construction                    work in progress                                                                                                                                                        |   |   | 21,124 |   |   |   | 18,466 |   |
|                                                                                                                                                                                                    |   |   | 1,242,559 |   |   |   | 1,199,310 |   |
| **OTHER                    PROPERTY AND INVESTMENTS:**                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Nuclear                    plant                    decommissioning trusts                                                                                                                              |   |   | 290,349 |   |   |   | 269,777 |   |
|                      Other                                                                                                                                                                         |   |   | 1,360 |   |   |   | 1,362 |   |
|                                                                                                                                                                                                    |   |   | 291,709 |   |   |   | 271,139 |   |
| **DEFERRED                    CHARGES AND OTHER ASSETS:**                                                                                                                                               |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                                                |   |   | 426,368 |   |   |   | 496,129 |   |
| Regulatory                    assets                                                                                                                                                                    |   |   | 458,566 |   |   |   | 409,095 |   |
| Pension                    assets                                                                                                                                                                       |   |   | 26,239 |   |   |   | 7,261 |   |
|                      Other                                                                                                                                                                         |   |   | 38,653 |   |   |   | 46,354 |   |
|                                                                                                                                                                                                    |   |   | 949,826 |   |   |   | 958,839 |   |
|                                                                                                                                                                                                    |   | $ | 2,722,964 |   |   | $ | 2,614,279 |   |
| **LIABILITIES                    AND CAPITALIZATION**                                                                                                                                                   |   |   |   |   |   |   |   |   |
| **CURRENT                    LIABILITIES:**                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Currently                    payable long-term debt                                                                                                                                                     |   | $ | - |   |   | $ | 50,000 |   |
| Short-term                    borrowings-                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Associated                    companies                                                                                                                                                                 |   |   | 254,826 |   |   |   | 141,501 |   |
| Other                                                                                                                                                                                                   |   |   | 80,000 |   |   |   | - |   |
| Accounts                    payable-                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Associated                    companies                                                                                                                                                                 |   |   | 24,807 |   |   |   | 100,232 |   |
| Other                                                                                                                                                                                                   |   |   | 55,186 |   |   |   | 59,077 |   |
| Accrued                    taxes                                                                                                                                                                        |   |   | 9,033 |   |   |   | 11,300 |   |
| Accrued                    interest                                                                                                                                                                     |   |   | 7,343 |   |   |   | 7,496 |   |
|                      Other                                                                                                                                                                         |   |   | 26,960 |   |   |   | 22,825 |   |
|                                                                                                                                                                                                    |   |   | 458,155 |   |   |   | 392,431 |   |
| **CAPITALIZATION:**                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Common                    stockholder's equity-                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Common                    stock,                    without par value, authorized 900,000 shares-                                                                                                       |   |   |   |   |   |   |   |   |
| 859,500                    shares                    outstanding                                                                                                                                        |   |   | 1,207,634 |   |   |   | 1,276,075 |   |
| Accumulated                    other comprehensive loss                                                                                                                                                 |   |   | (28,544 | ) |   |   | (26,516 | ) |
| Accumulated                    deficit                                                                                                                                                                  |   |   | (158,873 | ) |   |   | (234,620 | ) |
| Total                    common                    stockholder's equity                                                                                                                                 |   |   | 1,020,217 |   |   |   | 1,014,939 |   |
| Long-term                    debt                    and other long-term obligations                                                                                                                    |   |   | 542,100 |   |   |   | 542,009 |   |
|                                                                                                                                                                                                    |   |   | 1,562,317 |   |   |   | 1,556,948 |   |
| **NONCURRENT                    LIABILITIES:**                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Accumulated                    deferred income taxes                                                                                                                                                    |   |   | 393,169 |   |   |   | 387,456 |   |
| Accumulated                    deferred investment tax credits                                                                                                                                          |   |   | 8,623 |   |   |   | 9,244 |   |
| Nuclear                    fuel                    disposal costs                                                                                                                                       |   |   | 43,038 |   |   |   | 41,459 |   |
| Asset                    retirement obligations                                                                                                                                                         |   |   | 158,302 |   |   |   | 151,107 |   |
| Retirement                    benefits                                                                                                                                                                  |   |   | 15,830 |   |   |   | 19,522 |   |
|                      Other                                                                                                                                                                         |   |   | 83,530 |   |   |   | 56,112 |   |
|                                                                                                                                                                                                    |   |   | 702,492 |   |   |   | 664,900 |   |
| **COMMITMENTS                    AND CONTINGENCIES (Note 10)**                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                    |   | $ | 2,722,964 |   |   | $ | 2,614,279 |   |
|                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    Metropolitan                    Edison Company are an integral part |   |
| of                    these                    balance sheets.                                                                                                                                          |   |   |   |   |   |   |   |   |

----

| **METROPOLITAN                    EDISON COMPANY**                                                                                                                        |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                               |   |   |   |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF CASH FLOWS**                                                                                                              |   |
| **(Unaudited)**                                                                                                                                                           |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                                                               |   | **Nine                    Months Ended**    |   |
|                                                                                                                                                                                               |   | **September                    30,**    |   |
|                                                                                                                                                                                               |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                               |   | ***(In                    thousands)***    |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                                       |   |   |   |   |   |   |
| Net                    income                                                                                                                                                                      |   | $ | 75,797 |   |   | $ | 82,981 |   |
| Adjustments                    to                    reconcile net income to net cash from operating                    activities-                                                                |   |   |   |   |   |
| Provision                    for                    depreciation                                                                                                                                   |   |   | 31,969 |   |   |   | 31,390 |   |
| Amortization                    of regulatory assets                                                                                                                                               |   |   | 101,965 |   |   |   | 89,277 |   |
| Deferred                    costs                    recoverable as regulatory assets                                                                                                              |   |   | (53,276 | ) |   |   | (53,406 | ) |
| Deferral                    of                    new regulatory assets                                                                                                                            |   |   | (93,772 | ) |   |   | (89,794 | ) |
| Deferred                    income taxes and investment tax credits, net                                                                                                                           |   |   | 20,514 |   |   |   | 27,895 |   |
| Accrued                    compensation and retirement benefits                                                                                                                                    |   |   | (14,404 | ) |   |   | (6,007 | ) |
| Cash                    collateral                                                                                                                                                                 |   |   | 1,650 |   |   |   | (21,500 | ) |
| Pension                    trust                    contribution                                                                                                                                   |   |   | (11,012 | ) |   |   | - |   |
| Decrease                    (increase) in operating assets-                                                                                                                                        |   |   |   |   |   |   |   |   |
| Receivables                                                                                                                                                                                        |   |   | (57,599 | ) |   |   | 27,680 |   |
| Prepayments                    and other current assets                                                                                                                                            |   |   | 7,227 |   |   |   | (8,247 | ) |
| Increase                    (decrease) in operating liabilities-                                                                                                                                   |   |   |   |   |   |   |   |   |
| Accounts                    payable                                                                                                                                                                |   |   | (79,316 | ) |   |   | (1,553 | ) |
| Accrued                    taxes                                                                                                                                                                   |   |   | 1,787 |   |   |   | (10,451 | ) |
| Accrued                    interest                                                                                                                                                                |   |   | (153 | ) |   |   | (308 | ) |
| Other                                                                                                                                                                                              |   |   | 5,436 |   |   |   | (1,777 | ) |
| Net                    cash                    provided from (used for) operating activities                                                                                                       |   |   | (63,187 | ) |   |   | 66,180 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                                       |   |   |   |   |   |   |   |   |
| New                    Financing-                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Short-term                    borrowings, net                                                                                                                                                      |   |   | 193,324 |   |   |   | 116,624 |   |
| Equity                    contribution from parent                                                                                                                                                 |   |   | 1,237 |   |   |   | -  |   |
| Redemptions                    and Repayments-                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Long-term                    debt                                                                                                                                                                  |   |   | (50,000 | ) |   |   | (100,000 | ) |
| Dividend                    Payments-                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Common                    Stock                                                                                                                                                                    |   |   | - |   |   |   | (5,000 | ) |
| Net                    cash                    provided from financing activities                                                                                                                  |   |   | 144,561 |   |   |   | 11,624 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                                       |   |   |   |   |   |   |   |   |
| Property                    additions                                                                                                                                                              |   |   | (74,812 | ) |   |   | (65,332 | ) |
| Sales                    of                    investment securities held in trusts                                                                                                                |   |   | 153,943 |   |   |   | 146,841 |   |
| Purchases                    of                    investment securities held in trusts                                                                                                            |   |   | (156,623 | ) |   |   | (153,953 | ) |
| Loans                    to                    associated companies, net                                                                                                                           |   |   | (3,511 | ) |   |   | (4,853 | ) |
|                      Other                                                                                                                                                                    |   |   | (375 | ) |   |   | (494 | ) |
| Net                    cash used                    for investing activities                                                                                                                       |   |   | (81,378 | ) |   |   | (77,791 | ) |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Net                    increase                    (decrease) in cash and cash equivalents                                                                                                         |   |   | (4 | ) |   |   | 13 |   |
| Cash                    and cash                    equivalents at beginning of period                                                                                                             |   |   | 130 |   |   |   | 120 |   |
| Cash                    and cash                    equivalents at end of period                                                                                                                   |   | $ | 126 |   |   | $ | 133 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    Metropolitan                    Edison Company are an integral |   |
| part                    of these                    statements.                                                                                                                                    |   |   |   |   |   |   |   |   |

----

***Report      of Independent Registered Public Accounting Firm***

----

**METROPOLITAN      EDISON COMPANY**

**MANAGEMENT’S      NARRATIVE**

**ANALYSIS      OF      RESULTS OF OPERATIONS**

**Results      of Operations**

*Revenues*

| **Retail                Generation KWH Sales**                                 |   | **Increase** |    |
|--------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                           |   |         |    |   |
| Residential                                                                    |   |         | 5.6     |  % |
| Commercial                                                                     |   |         | 4.0     |  % |
| Industrial                                                                     |   |         | 0.6     |  % |
| **    Increase                in Retail Generation Sales** |   |         | **3.6** | ** %** |

| **Retail                Generation Revenues**                                     |   | **Increase**                       |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                              |   | ***(In                millions)*** |   |
| Residential                                                                       |   |  $                            | 11     |   |
| Commercial                                                                        |   |                               | 8      |   |
| Industrial                                                                        |   |                               | -      |   |
| **    Increase                in Retail Generation Revenues** |   | ** $**                        | **19** |   |

| **Distribution                KWH Deliveries**                                 |   | **Increase** |    |
|--------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                           |   |         |    |   |
| Residential                                                                    |   |         | 5.6     |  % |
| Commercial                                                                     |   |         | 4.0     |  % |
| Industrial                                                                     |   |         | 0.2     |  % |
| **    Increase                in Distribution Deliveries** |   |         | **3.5** | ** %** |
|                                                                           |   |         |    |

----

| **Distribution                Revenues**                                     |   | **Increase**                       |   |
|------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                         |   | ***(In                millions)*** |   |
| Residential                                                                  |   |  $                            | 38     |   |
| Commercial                                                                   |   |                               | 5      |   |
| Industrial                                                                   |   |                               | 12     |   |
| **    Increase                in Distribution Revenues** |   | ** $**                        | **55** |   |

*Expenses*

| **Expenses                – Changes**                     |   | **Increase****(Decrease)**         |   |
|-----------------------------------------------------------------|--------|------------------------------------|--------|
|                                                            |   | ***(In                millions)*** |   |
| Purchased                power costs                            |   | $                                  | 97     |   |
| Other                operating costs                            |   |                               | 86     |   |
| Amortization                of regulatory assets                |   |                               | 13     |   |
| Deferral                of                new regulatory assets |   |                               | (4     | ) |
| General                taxes                                    |   |                               | 3      |   |
| **Net                increase in expenses**                     |   | $                                  | 195    |   |

**Legal      Proceedings**

**New      Accounting Standards and Interpretations**

----

| **PENNSYLVANIA                  ELECTRIC COMPANY**                                                                                                                          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**                                                                                             |   |
| **(Unaudited)**                                                                                                                                                             |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                        |   | **Three                  Months Ended** |   |   | **Nine                  Months Ended** |   |
|                                                                                                                                                                        |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                                                                                                                                        |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                        |   | ***(In                  thousands)*** |   |
| **REVENUES:**                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                  sales                                                                                                                                             |   | $ | 336,798 |   |   | $ | 287,633 |   |   | $ | 991,769 |   |   | $ | 813,860 |   |
| Gross                  receipts                  tax collections                                                                                                            |   |   | 16,637 |   |   |   | 15,787 |   |   |   | 48,989 |   |   |   | 46,311 |   |
| Total                  revenues                                                                                                                                             |   |   | 353,435 |   |   |   | 303,420 |   |   |   | 1,040,758 |   |   |   | 860,171 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **EXPENSES:**                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchased                  power                                                                                                                                            |   |   | 203,247 |   |   |   | 165,921 |   |   |   | 588,583 |   |   |   | 474,437 |   |
| Other                  operating costs                                                                                                                                      |   |   | 51,571 |   |   |   | 65,165 |   |   |   | 169,299 |   |   |   | 151,640 |   |
| Provision                  for                  depreciation                                                                                                                |   |   | 12,566 |   |   |   | 11,828 |   |   |   | 36,678 |   |   |   | 36,269 |   |
| Amortization                  of regulatory assets, net                                                                                                                     |   |   | 20,861 |   |   |   | 3,825 |   |   |   | 32,648 |   |   |   | 19,804 |   |
| General                  taxes                                                                                                                                              |   |   | 19,433 |   |   |   | 18,593 |   |   |   | 57,634 |   |   |   | 55,440 |   |
| Total                  expenses                                                                                                                                             |   |   | 307,678 |   |   |   | 265,332 |   |   |   | 884,842 |   |   |   | 737,590 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                  INCOME**                                                                                                                                       |   |   | 45,757 |   |   |   | 38,088 |   |   |   | 155,916 |   |   |   | 122,581 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  INCOME (EXPENSE):**                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                  income                                                                                                                                       |   |   | 1,483 |   |   |   | 2,182 |   |   |   | 5,035 |   |   |   | 6,179 |   |
| Interest                  expense                                                                                                                                           |   |   | (14,017 | ) |   |   | (11,840 | ) |   |   | (38,426 | ) |   |   | (33,975 | ) |
| Capitalized                  interest                                                                                                                                       |   |   | 194 |   |   |   | 363 |   |   |   | 737 |   |   |   | 1,132 |   |
| Total                  other                  expense                                                                                                                       |   |   | (12,340 | ) |   |   | (9,295 | ) |   |   | (32,654 | ) |   |   | (26,664 | ) |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  BEFORE INCOME TAXES**                                                                                                                             |   |   | 33,417 |   |   |   | 28,793 |   |   |   | 123,262 |   |   |   | 95,917 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                  TAXES**                                                                                                                                           |   |   | 10,387 |   |   |   | 10,733 |   |   |   | 49,025 |   |   |   | 39,251 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INCOME**                                                                                                                                             |   |   | 23,030 |   |   |   | 18,060 |   |   |   | 74,237 |   |   |   | 56,666 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  COMPREHENSIVE INCOME (LOSS):**                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                  and                  other postretirement benefits                                                                                                 |   |   | (2,825 | ) |   |   | - |   |   |   | (8,475 | ) |   |   | - |   |
| Unrealized                  gain on derivative hedges                                                                                                                       |   |   | 16 |   |   |   | 17 |   |   |   | 49 |   |   |   | 49 |   |
| Change                  in                  unrealized gain on available for sale securities                                                                                |   |   | 10 |   |   |   | 14 |   |   |   | (6 | ) |   |   | (4 | ) |
| Other                  comprehensive income (loss)                                                                                                                          |   |   | (2,799 | ) |   |   | 31 |   |   |   | (8,432 | ) |   |   | 45 |   |
| Income                  tax                  expense (benefit) related to other                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   comprehensive                  income                                                                                                                           |   |   | (1,294 | ) |   |   | 13 |   |   |   | (3,894 | ) |   |   | 20 |   |
| Other                  comprehensive income (loss), net of tax                                                                                                              |   |   | (1,505 | ) |   |   | 18 |   |   |   | (4,538 | ) |   |   | 25 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                  COMPREHENSIVE INCOME**                                                                                                                             |   | $ | 21,525 |   |   | $ | 18,078 |   |   | $ | 69,699 |   |   | $ | 56,691 |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  preceding                  Notes to Consolidated Financial Statements as they relate to Pennsylvania                  Electric Company are an integral |   |   |   |   |   |
| part                  of these                  statements.                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **PENNSYLVANIA                    ELECTRIC COMPANY**                                                                                                                                        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                        |   |   |   |   |   |   |
| **CONSOLIDATED                    BALANCE SHEETS**                                                                                                                                          |   |
| **(Unaudited)**                                                                                                                                                                             |   |
|                                                                                                                                                                                        |   | **September                    30,** |   |   | **December                    31,** |   |
|                                                                                                                                                                                        |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                        |   | ***(In                    thousands)*** |   |
| **ASSETS**                                                                                                                                                                                  |   |   |   |   |   |   |
| **CURRENT                    ASSETS:**                                                                                                                                                      |   |   |   |   |   |   |
| Cash                    and cash                    equivalents                                                                                                                             |   | $ | 38 |   |   | $ | 44 |   |
| Receivables-                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Customers                    (less accumulated provisions of $4,094,000 and $3,814,000                                                                                                      |   |   |   |   |   |   |   |   |
| respectively,                    for uncollectible accounts)                                                                                                                                |   |   | 138,007 |   |   |   | 126,639 |   |
| Associated                    companies                                                                                                                                                     |   |   | 21,872 |   |   |   | 49,728 |   |
| Other                                                                                                                                                                                       |   |   | 19,047 |   |   |   | 16,367 |   |
| Notes                    receivable from associated companies                                                                                                                               |   |   | 17,170 |   |   |   | 19,548 |   |
| Prepaid                    taxes                                                                                                                                                            |   |   | 7,268 |   |   |   | 3,016 |   |
|                      Other                                                                                                                                                             |   |   | 1,724 |   |   |   | 1,220 |   |
|                                                                                                                                                                                        |   |   | 205,126 |   |   |   | 216,562 |   |
| **UTILITY                    PLANT:**                                                                                                                                                       |   |   |   |   |   |   |   |   |
| In                    service                                                                                                                                                               |   |   | 2,188,553 |   |   |   | 2,141,324 |   |
| Less                    -                    Accumulated provision for depreciation                                                                                                         |   |   | 824,141 |   |   |   | 809,028 |   |
|                                                                                                                                                                                        |   |   | 1,364,412 |   |   |   | 1,332,296 |   |
| Construction                    work in progress                                                                                                                                            |   |   | 26,835 |   |   |   | 22,124 |   |
|                                                                                                                                                                                        |   |   | 1,391,247 |   |   |   | 1,354,420 |   |
| **OTHER                    PROPERTY AND INVESTMENTS:**                                                                                                                                      |   |   |   |   |   |   |   |   |
| Nuclear                    plant                    decommissioning trusts                                                                                                                  |   |   | 137,896 |   |   |   | 125,216 |   |
| Non-utility                    generation trusts                                                                                                                                            |   |   | 147,745 |   |   |   | 99,814 |   |
|                      Other                                                                                                                                                             |   |   | 531 |   |   |   | 531 |   |
|                                                                                                                                                                                        |   |   | 286,172 |   |   |   | 225,561 |   |
| **DEFERRED                    CHARGES AND OTHER ASSETS:**                                                                                                                                   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                                                                                                    |   |   | 777,904 |   |   |   | 860,716 |   |
| Pension                    assets                                                                                                                                                           |   |   | 34,484 |   |   |   | 11,474 |   |
|                      Other                                                                                                                                                             |   |   | 34,371 |   |   |   | 36,059 |   |
|                                                                                                                                                                                        |   |   | 846,759 |   |   |   | 908,249 |   |
|                                                                                                                                                                                        |   | $ | 2,729,304 |   |   | $ | 2,704,792 |   |
| **LIABILITIES                    AND CAPITALIZATION**                                                                                                                                       |   |   |   |   |   |   |   |   |
| **CURRENT                    LIABILITIES:**                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Short-term                    borrowings-                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Associated                    companies                                                                                                                                                     |   | $ | 187,313 |   |   | $ | 199,231 |   |
| Other                                                                                                                                                                                       |   |   | 65,000 |   |   |   | - |   |
| Accounts                    payable-                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Associated                    companies                                                                                                                                                     |   |   | 107,666 |   |   |   | 92,020 |   |
| Other                                                                                                                                                                                       |   |   | 46,283 |   |   |   | 47,629 |   |
| Accrued                    taxes                                                                                                                                                            |   |   | 3,091 |   |   |   | 11,670 |   |
| Accrued                    interest                                                                                                                                                         |   |   | 13,832 |   |   |   | 7,224 |   |
|                      Other                                                                                                                                                             |   |   | 24,481 |   |   |   | 21,178 |   |
|                                                                                                                                                                                        |   |   | 447,666 |   |   |   | 378,952 |   |
| **CAPITALIZATION:**                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Common                    stockholder's equity-                                                                                                                                             |   |   |   |   |   |   |   |   |
| Common                    stock,                    $20 par value, authorized 5,400,000 shares-                                                                                             |   |   |   |   |   |   |   |   |
| 4,427,577                    and                    5,290,596 shares outstanding, respectively                                                                                              |   |   | 88,552 |   |   |   | 105,812 |   |
| Other                    paid-in                    capital                                                                                                                                 |   |   | 925,229 |   |   |   | 1,189,434 |   |
| Accumulated                    other comprehensive loss                                                                                                                                     |   |   | (11,731 | ) |   |   | (7,193 | ) |
| Retained                    earnings                                                                                                                                                        |   |   | 39,195 |   |   |   | 90,005 |   |
| Total                    common                    stockholder's equity                                                                                                                     |   |   | 1,041,245 |   |   |   | 1,378,058 |   |
| Long-term                    debt                    and other long-term obligations                                                                                                        |   |   | 777,020 |   |   |   | 477,304 |   |
|                                                                                                                                                                                        |   |   | 1,818,265 |   |   |   | 1,855,362 |   |
| **NONCURRENT                    LIABILITIES:**                                                                                                                                              |   |   |   |   |   |   |   |   |
| Regulatory                    liabilities                                                                                                                                                   |   |   | 77,441 |   |   |   | 96,151 |   |
| Asset                    retirement obligations                                                                                                                                             |   |   | 80,589 |   |   |   | 76,924 |   |
| Accumulated                    deferred income taxes                                                                                                                                        |   |   | 183,598 |   |   |   | 193,662 |   |
| Retirement                    benefits                                                                                                                                                      |   |   | 51,289 |   |   |   | 50,328 |   |
| Other                                                                                                                                                                                       |   |   | 70,456 |   |   |   | 53,413 |   |
|                                                                                                                                                                                        |   |   | 463,373 |   |   |   | 470,478 |   |
| **COMMITMENTS                    AND CONTINGENCIES (Note 10)**                                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                        |   | $ | 2,729,304 |   |   | $ | 2,704,792 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    Pennsylvania                    Electric Company are an |   |
| integral                    part                    of these balance sheets.                                                                                                                |   |   |   |   |   |   |   |   |

----

| **PENNSYLVANIA                    ELECTRIC COMPANY**                                                                                                                                        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                        |   |   |   |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF CASH FLOWS**                                                                                                                                |   |
| **(Unaudited)**                                                                                                                                                                             |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |
|                                                                                                                                                                                        |   | **Nine                    Months Ended** |   |
|                                                                                                                                                                                        |   | **September                    30,** |   |
|                                                                                                                                                                                        |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                        |   | ***(In                    thousands)***    |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                                |   |   |   |   |   |   |
| Net                    income                                                                                                                                                               |   | $ | 74,237 |   |   | $ | 56,666 |   |
| Adjustments                    to                    reconcile net income to net cash from operating activities                                                                             |   |   |   |   |   |   |   |   |
| Provision                    for                    depreciation                                                                                                                            |   |   | 36,678 |   |   |   | 36,269 |   |
| Amortization                    of regulatory assets                                                                                                                                        |   |   | 43,601 |   |   |   | 40,854 |   |
| Deferral                    of                    new regulatory assets                                                                                                                     |   |   | (10,953 | ) |   |   | (21,050 | ) |
| Deferred                    costs                    recoverable as regulatory assets                                                                                                       |   |   | (54,228 | ) |   |   | (56,272 | ) |
| Deferred                    income taxes and investment tax credits, net                                                                                                                    |   |   | 8,065 |   |   |   | 14,518 |   |
| Accrued                    compensation and retirement benefits                                                                                                                             |   |   | (16,032 | ) |   |   | 2,807 |   |
| Cash                    collateral                                                                                                                                                          |   |   | 50 |   |   |   | - |   |
| Pension                    trust                    contribution                                                                                                                            |   |   | (13,436 | ) |   |   | - |   |
| Decrease                    (increase) in operating assets                                                                                                                                  |   |   |   |   |   |   |   |   |
| Receivables                                                                                                                                                                                 |   |   | 13,809 |   |   |   | 22,719 |   |
| Prepayments                    and other current assets                                                                                                                                     |   |   | (4,757 | ) |   |   | (2,977 | ) |
| Increase                    (decrease) in operating liabilities                                                                                                                             |   |   |   |   |   |   |   |   |
| Accounts                    payable                                                                                                                                                         |   |   | 14,299 |   |   |   | (15,555 | ) |
| Accrued                    taxes                                                                                                                                                            |   |   | (6,191 | ) |   |   | (9,841 | ) |
| Accrued                    interest                                                                                                                                                         |   |   | 6,608 |   |   |   | 5,468 |   |
| Other                                                                                                                                                                                       |   |   | 2,653 |   |   |   | (2,188 | ) |
| Net                    cash                    provided from operating activities                                                                                                           |   |   | 94,403 |   |   |   | 71,418 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                                |   |   |   |   |   |   |   |   |
| New                    Financing                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Long-Term                    Debt                                                                                                                                                           |   |   | 297,149 |   |   |   | - |   |
| Short-term                    borrowings, net                                                                                                                                               |   |   | 53,082 |   |   |   | 21,278 |   |
| Equity                    contribution from parent                                                                                                                                          |   |   | 1,261 |   |   |   | - |   |
| Redemptions                    and Repayments                                                                                                                                               |   |   |   |   |   |   |   |   |
| Common                    Stock                                                                                                                                                             |   |   | (200,000 | ) |   |   | - |   |
| Dividend                    Payments                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Common                    Stock                                                                                                                                                             |   |   | (125,000 | ) |   |   | (5,000 | ) |
| Net                    cash                    provided from financing activities                                                                                                           |   |   | 26,492 |   |   |   | 16,278 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                                |   |   |   |   |   |   |   |   |
| Property                    additions                                                                                                                                                       |   |   | (70,076 | ) |   |   | (81,228 | ) |
| Loan                    repayments from (loans to) associated companies, net                                                                                                                |   |   | 2,378 |   |   |   | (2,976 | ) |
| Sales                    of                    investment securities held in trust                                                                                                          |   |   | 94,292 |   |   |   | 83,601 |   |
| Purchases                    of                    investment securities held in trust                                                                                                      |   |   | (144,167 | ) |   |   | (83,601 | ) |
| Other,                    net                                                                                                                                                               |   |   | (3,328 | ) |   |   | (3,480 | ) |
| Net                    cash used                    for investing activities                                                                                                                |   |   | (120,901 | ) |   |   | (87,684 | ) |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Net                    increase                    (decrease) in cash and cash equivalents                                                                                                  |   |   | (6 | ) |   |   | 12 |   |
| Cash                    and cash                    equivalents at beginning of period                                                                                                      |   |   | 44 |   |   |   | 35 |   |
| Cash                    and cash                    equivalents at end of period                                                                                                            |   | $ | 38 |   |   | $ | 47 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| The                    preceding                    Notes to Consolidated Financial Statements as they relate to                    Pennsylvania                    Electric Company are an |   |
| integral                    part                    of these statements.                                                                                                                    |   |   |   |   |   |   |   |   |

----

***Report      of Independent Registered Public Accounting Firm***

----

**PENNSYLVANIA      ELECTRIC COMPANY**

**MANAGEMENT’S      NARRATIVE**

**ANALYSIS      OF      RESULTS OF OPERATIONS**

**Results      of Operations**

*Revenues*

| **Retail                Generation KWH Sales**                                 |   | **Increase** |    |
|--------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                           |   |         |    |
| Residential                                                                    |   |         | 3.6     |  % |
| Commercial                                                                     |   |         | 3.6     |  % |
| Industrial                                                                     |   |         | 0.1     |  % |
| **    Increase                in Retail Generation Sales** |   |         | **2.5** | ** %** |

|                                                                              |   |                               |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------|--------|
| **Retail                Generation Revenues**                                     |   | **Increase**                       |   |
|                                                                              |   | ***(In                millions)*** |   |
| Residential                                                                       |   | $                                  | 6      |   |
| Commercial                                                                        |   |                               | 8      |   |
| Industrial                                                                        |   |                               | 1      |   |
| **    Increase                in Retail Generation Revenues** |   | **$**                              | **15** |   |

|                                                                               |   | **Increase**   |    |
|------------------------------------------------------------------------------------|--------|----------------|---------|
| **Distribution                KWH Deliveries**                                     |   | **(Decrease)** |    |
|                                                                               |   |           |    |
| Residential                                                                        |   |           | 3.6     |  % |
| Commercial                                                                         |   |           | 3.6     |  % |
| Industrial                                                                         |   |           | (1.3    | )% |
| **    Net                Increase in Distribution Deliveries** |   |           | **1.9** | ** %** |

----

|                                                                             |   | **Increase**                       |   |
|----------------------------------------------------------------------------------|--------|------------------------------------|--------|
| **Distribution  Revenues**                                             |   | **(Decrease)**                     |   |
|                                                                             |   | ***(In                millions)*** |   |
| Residential                                                                      |   | $                                  | 37     |   |
| Commercial                                                                       |   |                               | (4     | ) |
| Industrial                                                                       |   |                               | 4      |   |
| **    Net                Increase in Distribution Revenues** |   | **$**                              | **37** |   |

*Expenses*

|                                                  |   |                               |
|-------------------------------------------------------|--------|------------------------------------|
| **Expenses                - Changes**                 |   | **Increase**                       |
|                                                  |   | ***(In                millions)*** |
| Purchased                power costs                  |   | $                                  | 114 |
| Other                operating costs                  |   |                               | 18 |
| Amortization                of regulatory assets, net |   |                               | 13 |
| General                taxes                          |   |                               | 2 |
| **Increase                in Expenses**               |   | $                                  | 147 |

**Legal      Proceedings**

**New      Accounting Standards and Interpretations**

----

**COMBINED      MANAGEMENT’S DISCUSSION**

**AND      ANALYSIS      OF REGISTRANT SUBSIDIARIES**

**Regulatory      Matters**
** **

| · | restructuring                the electric generation business and allowing the Companies' customers                to                select a competitive electric generation supplier other than the                Companies;         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                    |
| · | establishing                or defining the PLR obligations to customers in the Companies' service                areas;                                                                                                                |
|   |                                                                                                                                                                                                                                    |
| · | providing                the                Companies with the opportunity to recover potentially stranded investment                (or transition costs) not otherwise recoverable in a competitive                generation market; |
|   |                                                                                                                                                                                                                                    |
| · | itemizing                (unbundling) the price of electricity into its component elements–                including generation, transmission, distribution and stranded costs                recovery charges;                   |
|   |                                                                                                                                                                                                                                    |
| · | continuing                regulation of the Companies' transmission and distribution systems;                and                                                                                                                        |
|   |                                                                                                                                                                                                                                    |
| · | requiring                corporate separation of regulated and unregulated business                activities.                                                                                                                          |

|                                  |   | **September                30,**   |   | **December                31,** |   | **Increase**   |   |
|---------------------------------------|--------|------------------------------------|--------|---------------------------------|--------|----------------|--------|
| **Regulatory                Assets*** |   | **2007**                           |   | **2006**                        |   | **(Decrease)** |   |
|                                  |   | ***(In                millions)*** |   |
| OE                                    |   | $                                  | 717    |                            | $      | 741            |   | $ | (24 | ) |
| CEI                                   |   |                               | 856    |                            |   | 855            |   |   | 1 |   |
| TE                                    |   |                               | 215    |                            |   | 248            |   |   | (33 | ) |
| JCP&L                             |   |                               | 1,758  |                            |   | 2,152          |   |   | (394 | ) |
| Met-Ed                                |   |                               | 459    |                            |   | 409            |   |   | 50 |   |
| ATSI                                  |   |                               | 42     |                            |   | 36             |   |   | 6 |   |
| Total                                 |   | $                                  | 4,047  |                            | $      | 4,441          |   | $ | (394 | ) |

| * | Penelec                had                net regulatory liabilities of approximately $77 million and                $96 million as of September 30, 2007 and December 31,                2006,                respectively. These net regulatory liabilities are included in                Other                Non-current Liabilities on the Consolidated Balance                Sheets. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Ohio***

| **Amortization**                      |   |                               |   |    |   |   |   |                |  **Total** |   |
|---------------------------------------|--------|------------------------------------|--------|---------|--------|--------|--------|----------------|-----------------|--------|
| **Period**                            |   | **OE**                             |   | **CEI** |   | **TE** |   |  **Ohio** |            |
|                                  |   | ***(In                millions)*** |   |
| 2007                                  |   | **$**                              | 176    |    | **$**  | 108    |   | **$**          | 92              |   | **$** | 376 |   |
| 2008                                  |   |                               | 209    |    |   | 126    |   |           | 113             |   |   | 448 |   |
| 2009                                  |   |                               | -      |    |   | 217    |   |           | -               |   |   | 217 |   |
| 2010                                  |   |                               | -      |    |   | 269    |   |           | -               |   |   | 269 |   |
| **Total                Amortization** |   | **$**                              | 385    |    | **$**  | 720    |   | **$**          | 205             |   | **$** | 1,310 |   |

----

***Pennsylvania***

----

----

***New      Jersey***

| ·   | Meet                22.5% of                New Jersey’s electricity needs with renewable energy resources by that                date; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Achieve                a 20%                reduction in both Customer Average Interruption Duration Index and                System                Average Interruption Frequency Index by                2020; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Maintain                unit                prices for electricity to no more than +5% of the regional average                price                (region includes New York, New Jersey, Pennsylvania, Delaware, Maryland                and the District of Columbia); and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***FERC      Matters***

*** ***

----

*New      FERC      Transmission Rate Design Filings*

*MISO      Ancillary      Services Market and Balancing Area Consolidation Filing*

----

*Order      No. 890 on      Open Access Transmission Tariffs*

**Environmental      Matters**

***Clean      Air Act      Compliance***
* *

----

***National      Ambient Air Quality      Standards***
* *

***Mercury      Emissions***
* *

***W.      H. Sammis Plant***

----

***Climate      Change***

***Clean      Water Act***

***Regulation      of Hazardous      Waste***
* *

----

**Other      Legal Proceedings**

***Power      Outages and Related      Litigation***
* *

----

----

***Nuclear      Plant      Matters***
* *

***Other      Legal Matters***

**New      Accounting Standards and      Interpretations**
** **

*SFAS      157 – “Fair Value      Measurements”*

----

|   | *SFAS                159 –                “The Fair Value Option for Financial Assets and Financial Liabilities–                Including an amendment of FASB Statement No.                115”* |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

* *
*. *

*EITF      06-11 – “Accounting for Income Tax      Benefits of Dividends or Share-based Payment Awards”*

*FSP      FIN 39-1 – “Amendment of FASB      Interpretation No. 39”*

----

**ITEM      3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

**ITEM      4.      CONTROLS AND PROCEDURES**

**(a)    EVALUATION      OF DISCLOSURE CONTROLS AND PROCEDURES**

**(b)    CHANGES      IN INTERNAL CONTROLS**

----

***PART      II. OTHER INFORMATION***

**ITEM      1.         LEGAL      PROCEEDINGS**

**ITEM      1A.      RISK FACTORS**

**ITEM      2.         UNREGISTERED SALES OF EQUITY      SECURITIES AND USE OF PROCEEDS**

**(c)   FirstEnergy**

|                                                                    |   | **Period**                    |      |
|-------------------------------------------------------------------------|--------|-------------------------------|-----------|
|                                                                    |   | **July                1-31,** |      | **August                1-31,** |   | **September                1-30,** |   | **Third** |   |
|                                                                    |   | **2007**                      |      | **2007** |   | **2007** |   | **Quarter** |   |
| Total                Number                of Shares Purchased (a)      |   | 29,656                        |      | 83,448 |   | 253,701 |   | 366,805 |   |
| Average                Price                Paid per Share              |   | $66.00                        |      | $62.95 |   | $61.85 |   | $62.44 |   |
| Total                Number                of Shares Purchased          |   |                          |      |   |   |   |   |   |   |
| As                Part of Publicly Announced                Plans       |   |                          |      |   |   |   |   |   |   |
| or                  Programs (b)                                        |   |                          | -         |   |   | - |   |   | - |   |   | - |   |
| Maximum                  Number                  (or Approximate Dollar |   |                          |      |   |   |   |   |   |   |   |   |   |   |
| Value)                  of Shares that May Yet                  Be      |   |                          |      |   |   |   |   |   |   |   |   |   |   |
| Purchased                Under the Plans or                Programs     |   |                          | 1,629,890 |   |   | 1,629,890 |   |   | 1,629,890 |   |   | 1,629,890 |   |
|                                                                    |   |                          |      |   |   |   |   |   |   |   |   |   |   |

| (a)    | Share                amounts                reflect purchases on the open market to satisfy FirstEnergy's obligations                to deliver common stock under its Executive                and                Director Incentive Compensation Plan, Deferred Compensation Plan                for                Outside Directors, Executive Deferred Compensation                Plan, Savings Plan and Stock Investment Plan. In addition, such amounts                reflect shares tendered by employees to                pay the                exercise price or withholding taxes upon exercise of stock options                granted                under the Executive and Director Incentive Compensation                Plan and shares purchased as part of publicly announced                plans. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (b)    | FirstEnergy                publicly announced, on January 30, 2007, a plan to repurchase up to                16 million shares of its common stock through June 30,                2008. On March 2, 2007, FirstEnergy repurchased approximately                14.4 million shares, or 4.5%, of its outstanding common                stock                under this plan through an accelerated share repurchase program with                an                affiliate of Morgan Stanley and Co., Incorporated                at an initial price of $62.63 per                share.                                                                                                                                                                                                       |

----

**ITEM      6.         EXHIBITS**

| **                       Exhibit****                       Number** |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                      |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                      |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
| **                       FirstEnergy**                                                                 |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|                                                                                                                                      |                    10.1 | Amendment                to                Agreement for Engineering, Procurement and Construction of Air Quality                Control Systems by and between FirstEnergy Generation Corp. and Bechtel                Power Corporation dated September 14, 2007 (Form 8-K dated September                18,                2007)*                                                                                                                               |   |   |
|                                                                                                                                      |                    10.2 | FirstEnergy                Corp. Executive Deferred Compensation Plan as amended September 18,                2007(Form                8-K                dated September 21, 2007)                                                                                                                                                                                                                                                                                 |   |   |
|                                                                                                                                      |                    10.3 | FirstEnergy                Corp. Supplemental Executive Retirement Plan as amended September                18,                2007(Form                8-K                dated September 21, 2007)                                                                                                                                                                                                                                                                |   |   |
|                                                                                                                                      |                    12   | Fixed                charge                ratios                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |
|                                                                                                                                      |                    15   | Letter                from                independent registered public accounting firm                                                                                                                                                                                                                                                                                                                                                                             |   |   |
|                                                                                                                                      |                    31.1 | Certification                of chief executive officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |   |
|                                                                                                                                      |                    31.2 | Certification                of chief financial officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |   |
|                                                                                                                                      |                    32   | Certification                of chief executive officer and chief financial officer, pursuant                to 18                U.S.C. Section 1350                                                                                                                                                                                                                                                                                                               |   |   |
| **FES**                                                                                                                                   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                      | 12                                     | Fixed                charge                ratios                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                      | 31.1                                   | Certification                of chief executive officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 31.2                                   | Certification                of chief financial officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 32                                     | Certification                of chief executive officer and chief financial officer, pursuant                to 18                U.S.C. Section 1350                                                                                                                                                                                                                                                                                                               |   |
| **OE**                                                                                                                                    |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                      | 12                                     | Fixed                charge                ratios                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                      | 15                                     | Letter                from                independent registered public accounting firm                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                      | 31.1                                   | Certification                of chief executive officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 31.2                                   | Certification                of chief financial officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 32                                     | Certification                of chief executive officer and chief financial officer, pursuant                to 18                U.S.C. Section 1350                                                                                                                                                                                                                                                                                                               |   |
| **CEI**                                                                                                                                   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                      | 31.1                                   | Certification                of chief executive officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 31.2                                   | Certification                of chief financial officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 32                                     | Certification                of chief executive officer and chief financial officer, pursuant                to 18                U.S.C. Section 1350                                                                                                                                                                                                                                                                                                               |   |
| **TE**                                                                                                                                    |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                      | 31.1                                   | Certification                of chief executive officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 31.2                                   | Certification                of chief financial officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 32                                     | Certification                of chief executive officer and chief financial officer, pursuant                to 18                U.S.C. Section 1350                                                                                                                                                                                                                                                                                                               |   |
| **JCP&L**                                                                                                                             |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                      | 12                                     | Fixed                charge                ratios                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                      | 31.1                                   | Certification                of chief executive officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 31.2                                   | Certification                of chief financial officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                      | 32                                     | Certification                of chief executive officer and chief financial officer, pursuant                to 18                U.S.C. Section 1350                                                                                                                                                                                                                                                                                                               |   |
| **Met-Ed**                                                                                                                                |                                   |
|                                                                                                                                      | 12                                     | Fixed                charge                ratios                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                      | 31.1                                   | Certification                of chief executive officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                      | 31.2                                   | Certification                of chief financial officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                      | 32                                     | Certification                of chief executive officer and chief financial officer, pursuant                to 18                U.S.C. Section 1350                                                                                                                                                                                                                                                                                                               |
| **Penelec**                                                                                                                               |                                   |
|                                                                                                                                      | 4.1                                    | Form                of                Pennsylvania Electric Company 6.05% Senior Notes due 2017 (incorporated                by                reference to a Form 8-K dated August 31, 2007)                                                                                                                                                                                                                                                                       |
|                                                                                                                                      | 10.1                                   | Registration                Rights Agreement, dated as of August 30, 2007, among Pennsylvania                Electric                Company and Citigroup Global Markets Inc., Lehman Brothers Inc. and                Scotia                Capital (USA) Inc., as representatives of the several initial purchasers                named in the Purchase Agreement (incorporated by reference to a Form                8-K                dated August 31, 2007) |
|                                                                                                                                      | 12                                     | Fixed                charge                ratios                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                      | 15                                     | Letter                from                independent registered public accounting firm                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                      | 31.1                                   | Certification                of chief executive officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                      | 31.2                                   | Certification                of chief financial officer, as adopted pursuant to Rule                13a-14(a)                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                      | 32                                     | Certification                of chief executive officer and chief financial officer, pursuant                to 18                U.S.C. Section 1350                                                                                                                                                                                                                                                                                                               |

----

**SIGNATURES**

|   | **FIRSTENERGY                CORP.**             |
|--------|--------------------------------------------------|
|   | Registrant                                       |
|   |                                             |
|   | **FIRSTENERGY                SOLUTIONS CORP.**   |
|   | Registrant                                       |
|   |                                             |
|   | **OHIO                EDISON COMPANY**           |
|   | Registrant                                       |
|   |                                             |
|   | **THE                CLEVELAND ELECTRIC**        |
|   | **ILLUMINATING                COMPANY**          |
|   | Registrant                                       |
|   |                                             |
|   | **THE                TOLEDO EDISON COMPANY**     |
|   | Registrant                                       |
|   |                                             |
|   | **METROPOLITAN                EDISON COMPANY**   |
|   | Registrant                                       |
|   |                                             |
|   | **PENNSYLVANIA                ELECTRIC COMPANY** |
|   | Registrant                                       |

|   | /s/  Harvey                  L. Wagner           |
|--------|------------------------------------------------------------|
|   | Harvey                L.                Wagner             |
|   | Vice                President, Controller                  |
|   | and                Chief                Accounting Officer |

|   | **JERSEY                CENTRAL POWER & LIGHT COMPANY** |
|--------|-------------------------------------------------------------|
|   | Registrant                                                  |
|   |                                                        |
|   |                                                        |
|   |                                                        |
|   | /s/  Paulette                  R. Chatman         |
|   | Paulette                R.                Chatman           |
|   | Controller                                                  |
|   | (Principal                Accounting Officer)               |

----