COMMITMENTS, GUARANTEES AND CONTINGENCIES (A) GUARANTEES AND OTHER ASSURANCES As part of normal business activities, FirstEnergy enters into various agreements on behalf of its subsidiaries to provide financial or performance assurances to third parties. These agreements include contract guarantees, surety bonds and LOCs. As of September 30, 2011 , outstanding guarantees and other assurances aggregated approximately $3.8 billion , consisting of parental guarantees ( $0.9 billion ), subsidiaries' guarantees ( $2.5 billion ), and surety bonds and LOCs ( $0.4 billion ). FirstEnergy guarantees energy and energy-related payments of its subsidiaries involved in energy commodity activities principally to facilitate or hedge normal physical transactions involving electricity, gas, emission allowances and coal. FirstEnergy also provides guarantees to various providers of credit support for the financing or refinancing by subsidiaries of costs related to the acquisition of property, plant and equipment. These agreements legally obligate FirstEnergy to fulfill the obligations of those subsidiaries directly involved in energy and energy-related transactions or financing where the law might otherwise limit the counterparties' claims. If demands of a counterparty were to exceed the ability of a subsidiary to satisfy existing obligations, FirstEnergy's guarantee enables the counterparty's legal claim to be satisfied by other FirstEnergy assets. FirstEnergy believes the likelihood is remote that such parental guarantees of $0.3 billion (included in the $0.9 billion discussed above) as of September 30, 2011 would increase amounts otherwise payable by FirstEnergy to meet its obligations incurred in connection with financings and ongoing energy and energy-related activities. While these types of guarantees are normally parental commitments for the future payment of subsidiary obligations, subsequent to the occurrence of a credit rating downgrade or  material adverse event,  the immediate posting of cash collateral, provision of an