BGS-CIEP Rate - Energy Components (Continued) Ancillary Services Charge For PJM administrative charges and; Other generation-related items necessary for electric grid stability. Charge is from a PJM Tariff. BGS Reconciliation Charges Recovers the difference between monthly amount paid to BGS suppliers and the total revenue received from BGS customers for the preceding months for the applicable BGS supply. Charge changes each quarter and can be a positive or negative (e.g. a charge or a credit). All Charges subject to sales and use tax (SUT). The next component is the Ancillary service. For PSE&G this charge 0.19 cents per kilowatt hour. This EDC-specific PJM charge that is primarily for generation-related services need to help stabilize the grid. It includes thing like spinning reserve, where a generator is running their unit in a stand-by mode waiting for the signal to start putting energy into the grid. The final energy related charge is the BGS-reconciliation charge. This charge recovers differences what and EDC will pay a supplier for a given period. We expect this charge to be very very small. It can also be positive (a charge) or negative ( a credit). For CIEP customers, it will primarily cover some “true-ups” that occur between the EDC and PJM 30 days after the end of any month.

BGS-CIEP Rate – Capacity Components BGS Capacity Charges (Generation) Charges per kilowatt of Generation Obligation. The charge recovers customer’s allocated share of overall summer peak load on PJM system. Rate obtained through BGS Auction. It is the only component BGS suppliers bid on. BGS Transmission Charges Approved by FERC. Recovers Customer’s share of overall summer peak transmission load assigned to JCP&L (or other EDC). Billed on a per kWh basis. Subject to change periodically on the effective date of the PJM rate as approved by Federal Energy Regulatory Commission (FERC). The next couple of charges are demand or kW based. They are really no different than the Generation Capacity and Transmission charges on your current bills other than the rates for the charges will be somewhat lower than the rates in our current tariff. The BGS capacity charge is related to generation. For PSE&G BGS-CIEP customers, the monthly charge will be $1.93/kW times the customers generation obligation (expressed in kW). The capacity charge was the only component of the BGS-CIEP rate obtained in the auction. The generation obligation is set each January and is based on the customers average actual usage during the five highest hours PJM-system wide load. For a customer with a “normal” load factor of 50-60% this should be result in average monthly costs of about $0.3 cents per kWh. The BGS transmission charge is very similar to the generation capacity charge. For PSE&G customers, the monthly rate is $1.56/kW. The monthly charge will be this rate times the customers transmission obligation. This obligation is based the customers actual average usage during the five highest hours of PSE&G system wide load. Again for a customer with a “normal” load factor this charge should average out to be about $0.2 cents per kWh

Applicable Riders Default Supply Service Availability Charge: (DSSAC) Cost to administer and maintain hourly priced default service for BGS-CIEP customers. Associated revenues passed through by JCP&L to Suppliers. NOTE: DSSAC set to $0.000/kWh for the 12 month period beginning June 1, 2005 System Control Charge (SCC): Recovers cost associated with Demand Response Programs.

Data Sources

Types of customer load data available from JCP&L Monthly load data, including kWh, kW, and capacity peak load share is available at no cost. Hourly interval kW data, if appropriate customer metering is available, can be requested at $40.00 per account. Monthly paper service ($132/year) Monthly email service ($108/year) Data pulses from your meter

Requesting Monthly or Hourly load data for “shopping” Call JCP&L Customer Interaction Center (CIC) at 1-800-543-4655 Have your 20-digit customer number available Give authorization to send your monthly or hourly load data to the electric generation supplier of your choice.

Requesting Monthly or Hourly Load data for Shopping Have supplier call Supplier Services at 1-440-546-8667 to request your monthly or hourly load data. Supplier must have signed authorization giving JCP&L permission to provide them with this confidential information. Supplier Services will request the supplier to fax the authorization form before data is sent via email.

Electronic Data Interchange (EDI) Certified electric generation suppliers can request monthly usage data (not hourly data) electronically via an EDI 814HU transaction. Data will be returned to supplier via EDI 867HU transaction within one business day. Supplier must have Customer authorization prior to requesting data.

Other Information Sources E-Mail, SupplierSupport@firstenergycorp.com or Phone 440-546-8667 Website; http://www.firstenergycorp.com/supplierservices Website; http://www.firstenergycorp.com/customerchoice Website; http://www.bpu.state.nj.us/ INSERT LINK TO SUPPLIER INFO SHEET Website; http://www.pjm.com Website; http://www.njcleanenergy.com/

Shopping Alternatives

Locating a licensed Electric Generation Supplier Go to BPU website for up to date listing of Suppliers: http://www.bpu.state.nj.us/wwwroot/energy/GPUlist.htm