AKRON, Ohio, Aug. 7, 2003 — FirstEnergy announced that, upon further consideration with its independent auditor, PricewaterhouseCoopers LLP (PwC), it is appropriate to recognize the impact of the implementation of changed accounting treatments in the financial statements of its Cleveland Electric Illuminating (CEI) and Toledo Edison (TE) subsidiaries for the year 2000, as well as the years 2001 and 2002, as reported on August 5.
The restatements reflect non-cash expenses only and are related to the recovery of transition assets and recognition of above-market values of certain leased generation facilities for those subsidiaries.
FirstEnergy and PwC originally expected to include the cumulative impact of related accounting adjustments for the years 1997 through 2000 in restated 2001 results for CEI and TE. Upon further review, it was determined that the cumulative adjustment for the years 1997 through 1999 should not be reflected in the results of operations for 2001, but in the beginning balance of related items for 2000. The restatement of that year is not expected to change the previously reported financial impact of the accounting adjustments.
Because PwC was not FirstEnergy’s auditor for 2000 and 2001, financial statements for those years for CEI and TE will be re-audited.
Results of the restatement will be included in FirstEnergy’s second quarter 2003 Form 10-Q filing with the Securities and Exchange Commission.
FirstEnergy is a registered public utility holding company headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity; exploration and production of oil and natural gas; transmission and marketing of natural gas; and energy management and other energy-related services.