First quarter 2009 basic earnings per share were $1.02 ($1.01 diluted) on a non-GAAP basis. These results exclude the impact of regulatory charges associated with implementing the Ohio Electric Security Plan, and other special items, described below. This compares to first quarter 2008 non-GAAP basic earnings per share of $0.88 ($0.87 diluted).
First quarter 2009 results benefited from higher average generation prices compared to the 2008 period. Results were also driven by higher revenues related to increased wholesale sales, lower financing costs, lower fuel costs, and a lower effective income tax rate compared to the first quarter of 2008. Results were negatively affected by higher purchased power costs, increased costs related to pension and other postemployment benefits as a result of the downturn in financial markets, higher depreciation expense, and the end of transition cost recovery for Ohio Edison and Toledo Edison.
First quarter 2009 total electric generation sales decreased 2.8% compared to the 2008 period. Sales to the wholesale market increased 9.9% for the quarter, while retail sales were down 5.3%. Total distribution deliveries decreased 6.7% in the quarter, primarily due to lower demand from industrial customers.
Anthony J. Alexander, president and chief executive officer of FirstEnergy said “We will need to remain focused on execution for the remainder of 2009 in order to address issues related to planned generating outages, environmental spending at our Sammis Plant, and our participation in the competitive bidding process in Ohio.”
