1. York Adams Regional Smart Growth Coalition August 3, 2010

2. and Saving Money on Your Electric Bill York Adams Regional Smart Growth Coalition August 3, 2010

3. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 3 FirstEnergy Profile n Diversified energy company headquartered in Akron, Ohio n Seven electric companies serve about 4.5 million customers within a 36,000-square-mile area in Ohio, Pennsylvania and New Jersey n Nation’s fifth-largest investor-owned electric system, based on the number of customers served n Fortune 200 company with nearly $13 billion in annual revenues n More than $34 billion in assets n More than 13,000 employees

4. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 4 FirstEnergy Utility Profile Toledo Edison312,0002,300 Ohio Edison1,040,0007,000 The Illuminating Company755,0001,600 Penelec590,00017,600 Penn Power160,0001,100 Met-Ed549,0003,300 Jersey Central Power & Light1,093,000 3,200 Total4,499,00036,100 CustomersSquare Miles

5. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 5 FirstEnergy Generation Resources Akron Toledo Reading Beaver Valley 1,815 MW Davis-Besse 908 MW Perry 1,268 MW R. E. Burger** 413 MW W. H. Sammis 2,233 MW Bruce Mansfield 2,490 MW Eastlake 1,262 MW Ashtabula 244 MW Seneca 451 MW Edgewater 48 MW Richland 432 MW Stryker 18 MW Yards Creek 200 MW Mad River 60 MW West Lorain 545 MW Lake Shore 249 MW Erie Harrisburg Morristown Newark Allenhurst Trenton Bay Shore 648 MW Columbus New Castle Cleveland Johnstown Towanda W Wind Farms 277 MW Fremont 710 MW C Coal7,469MW N Nuclear3,991 G Natural Gas & O Oil1,173 H Hydro 651 W Contracted Wind* 722 and Other Total 14,006MW *277 MW in PA, 99 MW in IL Biomass 2% Coal 52% Nuclear 28% Gas / Oil 11% Hydro 5% Wind 2% Renewables 9% Diverse Generation Resources

6. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 6 Source:*Public Utilities Commission of Ohio and Energy Information Administration FirstEnergyPennsylvaniaUnited States Fuel Sources as Percentage of Total Energy Output (MWH) Coal 60% Nuclear 39% Natural Gas / Oil <1% Renewables 1% Coal 54% Nuclear 34% Natural Gas / Oil 9% Renewables 3% Coal 49% Nuclear 20% Natural Gas / Oil 21% Renewables 10%

7. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 7 U.S. Electricity Consumption Expected to Grow 29% by 2035 Annual U.S. Electricity Sales 1950-2035 Projected kWh (billions) Source: Energy Information Administration, March 2009

8. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 8 Electricity Use Continues to Grow n Growth in population and larger houses increase demand for heating and air conditioning n Population shift to warmer regions also increases AC n More electrically powered consumer products than ever before –Personal computers, iPods, cell phones and game consoles –Americans now have about 25 consumer electronic devices in every household

9. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 9 Typical Household Energy Consumption Source: U.S. Department of Energy Heating 31% Air Conditioning 12% Water Heating 12% Lighting 11% Computers & Electronics 9% Appliances 9% Refrigeration 8% Other 8%

10. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 10 Many Appliances are More Energy Efficient n Since 1990, when energy efficiency standards for appliances went into effect in the U.S., power consumption by home appliances has been reduced significantly Source: Association of Home Appliance Manufacturers Percent change in energy consumption since 1990 Refrigerators Clothes Washers Air Conditioners -70 -60 -50 -40 -30 -20 -10 +10 1990199520002005

11. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 11 New TVs are Big Energy Users 338 180 175 125 75 Watts 19” Cathode Ray Tube Average Plasma Average LCD Projection TV 32” LCD Estimated Average Power Consumption for TV Models Source: ConsumerReports.org CNET Reviews, Nov. 2009 MichaelBlueJay.com

12. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 12 State Regulatory Landscape Requirements n Senate Bill 221 –Energy reductions (0.3% – 2009; 22.5% – 2025) –Peak demand reductions (1.0% – 2009; 7.75% – 2018) n Act 129 –Energy reductions (1% – May 31, 2011; 3% – May 31, 2013) –Peak demand reductions (4.5% – May 31, 2013) n New Jersey Energy Master Plan –Energy reductions (20% – 2020) –Peak demand reductions (5,700 MW for all utilities – 2020) OH PA NJ Energy Efficiency

13. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 13 Overview of Energy Efficiency Potential Significant efficiency opportunities from generation to end-user GenerationTransmissionDistributionEnd-Use Utilization ~67% loss National Average ~3% loss~5% loss Fuel 100 Coal Nuclear Renewables Source: U.S. Department of Energy ~75% loss

14. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 14 FirstEnergy and Energy Efficiency and Conservation n Supports efforts that encourage the wise use of electricity and that make sense for our company and customers n Energy efficiency programs are essential tools that help customers better manage energy use –Helps increase the overall efficiency of electric system n Conservation helps customers offset increase in electricity prices –Reduces our nation’s carbon emissions n “One-size-fits-all” approach doesn’t work –Important to recognize differences among customers, cost of programs, and how customers use electricity

15. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 15 Pennsylvania Act 129 n Enacted by Pennsylvania General Assembly in November 2008 –Requires Pennsylvania’s seven largest electric distribution companies to develop and implement energy and conservation plans to reduce electricity consumption and peak demand –Pennsylvania Public Utility Commission responsible for implementation n Under the law, utilities must implement energy efficiency and peak demand reduction programs –Electricity savings of at least 1 percent by May 2011, and at least 3% by May 2013 –Peak demand reduction of at least 4.5% by May 2013

16. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 16 (MWH) Energy Efficiency Targets Penn Power Met-Ed Penelec FE Total n In 2013, FirstEnergy’s Energy Efficiency requirement to reduce electricity use by one million MWHs annually is equal to electricity consumption of some 113,000 homes (MWH) May 2011May 2013

17. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 17 Peak Demand Reductions Penn PowerMet-EdPenelecFE Total n During peak demand, companies use more costly forms of generation, such as natural gas and fuel oil, to produce power to meet customers’ needs n In 2013, FirstEnergy’s peak demand reduction requirement is more than 270 megawatts – the generation capacity of a small power plant What is peak demand? n Peak demand occurs when an electric utility is expected to provide power for a sustained period at a significantly higher than average supply level –Usually occurs during hot summer days when air-conditioners are running (MW)

18. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 18 Programs for Residential Customers n Home performance programs that provide home audits and rebates toward implementing audit recommendations n EnergyStar ® and high-efficiency appliance programs that provide rebates to customers for purchase of certain energy-efficiency appliances n Compact fluorescent lighting (CFL) programs that provide point-of-sale discounts for purchase of CFLs n WARM Program – For low-income customers n HVAC efficiency programs that encourage consumers to purchase high-efficiency central air conditioners or heat pumps (coming soon) For more information, visit www.puc.state.pa.us

19. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 19 Proposed Programs for Residential Customers (Continued) n Time of use with critical peak pricing rates to reflect cost of serving customers during peak times n Hourly-pricing options with rates reflecting cost of energy during each hour, encouraging customers to lower demand or shift to lower-priced periods n Incentives for home builders to improve energy performance of new residential construction For more information, visit www.puc.state.pa.us

20. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 20 Programs for Business, Government and Non-Profit Customers n Lighting efficiency programs that provide incentives for installing occupancy sensors and systems to reduce number of lamps per fixture or replace lights with high-intensity lights or LEDs –Motors and Drives Program for industrial/commercial applications n Energy audits and technology assessment programs n Commercial HVAC efficiency programs that encourage purchase of high-efficiency systems n Programs focused on reducing energy by providing incentives to customers for improving energy efficiency –Street lighting and traffic signal programs –Federal Government Programs

21. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 21 Proposed Programs for Business, Government and Non-Profit Customers (Continued) n Direct load control programs n Load management services to small and large commercial and industrial and governmental and non-profit customers

22. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 22 Home Energy Audits n First step in making your home more energy efficient n Helps assess how much energy your home uses and evaluates steps you can take to improve efficiency n Do-it-Yourself Audits or Professional Home Energy Audits n Home Energy Analyzer –Compares your home’s energy efficiency to similar homes in your area

23. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 23 Energy Saving Tips n Heating and Cooling –Accounts for 50 to 70% of the energy used in average home n Save energy dollars by using less air conditioning and heating –Set thermostat at 78 degrees in summer, 68 in the winter –Each degree cooler in summer or warmer in winter increases energy use by 6 to 8%

24. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 24 Energy Saving Tips n Home weatherization/insulation –Insulation saves money: Inadequate insulation is a leading cause of energy waste in most homes –Makes home more comfortable by maintaining uniform temperature n Caulk and weather-strip doors and windows –Reduces heating and air conditioning use by 10 to 20%

25. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 25 Energy Saving Tips n Cooling –Replace a central air conditioner (SEER rating of 10 or less) with a new high-efficiency unit (SEER rating of 13 or more) –Save up to 25% on cooling bills (SEER = Seasonal Energy Efficiency Ratio)

26. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 26 Energy Saving Tips n Lighting –Replace incandescent light bulbs with Compact Fluorescent Light (CFL) bulbs and reduce electricity use for lighting –CFLs last up to 10 times longer than incandescent bulbs –CFLs deliver savings for years to come … up to $30 over the life of the bulb

27. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 27 Energy Saving Tips n Refrigeration –Replace old refrigerator (18 years or older) with new unit to reduce energy use –Energy efficient refrigerators can use up to 50% less electricity than older models n Cooking –Microwave uses 50% less energy than conventional ovens

28. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 28 Energy Saving Tips n Water Heating –Hot water system one of biggest users of energy in home –Lowering the water temperature setting from 140° F to 120° F can reduce water heating energy bill by more than 10% n Clothes Washing –New front-loading washers use at least 30% less water and 50% less energy than regular washing machines

29. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 29 Energy Efficiency: Fact or Fiction? It’s more energy efficient to keep your refrigerator full rather than half full. FACT: Keeping more food and beverages in the refrigerator means it doesn’t have to work as hard to maintain cold temperatures.

30. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 30 Energy Efficiency: Fact or Fiction? To kill germs, wash clothes in hot water. FICTION: Laundry detergents kill germs in cold or warm water, so you can save a load of energy by not using hot water in your washer. Heating water for laundry uses about 90% of the energy required to wash clothes in a typical top-loading washer.

31. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 31 Energy Efficiency: Fact or Fiction? Leave a ceiling fan running to help cool the room. FICTION: Ceiling fans cool people – not rooms. When the circulating air moves across our skin, we feel cooler even though the temperature in the room remains the same. When you leave the room, save energy by turning off the ceiling fan.

32. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 32 Energy Efficiency: Fact or Fiction? When buying a central air conditioning unit, it’s better to buy one that’s a little too big rather than too small. FICTION: Bigger is not better. Properly sizing air conditioning equipment is critical because a unit that is oversized will “short cycle” and turn on and off frequently. Air conditioners are very inefficient when they first start operation, so efficiency of the equipment increases the longer it runs. Source: The Associated Press, August 8, 2009

33. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 33 For More Information www.firstenerycorp.com www.energysavePA.com

34. 2010Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 34 and Saving Money on Your Electric Bill