York Adams Regional Smart Growth Coalition August 3

York Adams Regional Smart Growth Coalition August 3, 2010

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

First. Energy 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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 3

First. Energy Utility Profile Customers Square Miles 312, 000 2, 300 1, 040, 000 7, 000 The Illuminating Company 755, 000 1, 600 Penelec 590, 000 17, 600 Penn Power 160, 000 1, 100 Met-Ed 549, 000 3, 300 Jersey Central Power & Light 1, 093, 000 3, 200 Total 4, 499, 000 36, 100 Toledo Edison Ohio Edison Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 4

First. Energy Generation Resources Stryker 18 MW Toledo Ashtabula Perry 244 MW Seneca 1, 268 MW Eastlake 451 MW Bay Shore 1, 262 MW Erie 648 MW Lake Shore 249 MW Towanda Yards Creek 200 MW Cleveland Edgewater 48 MW Akron Davis-Besse Richland 908 MW West Lorain 432 MW 545 MW New Castle Morristown Newark Johnstown Fremont 710 MW W Harrisburg Reading Allenhurst Trenton Columbus W. H. Sammis 2, 233 MW R. E. Burger** 413 MW Mad River 60 MW C Coal 7, 469 MW N Nuclear 3, 991 G Natural Gas & O Oil 1, 173 H Hydro 651 W Contracted Wind* 722 and Other Total 14, 006 MW Beaver Valley Bruce Mansfield 2, 490 MW 1, 815 MW Diverse Generation Resources Nuclear 28% Wind Farms 277 MW Gas / Oil 11% Renewables 9% Hydro 5% Biomass 2% Wind 2% Coal 52% *277 MW in PA, 99 MW in IL Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 5

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

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

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, i. Pods, cell phones and game consoles – Americans now have about 25 consumer electronic devices in every household Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 8

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

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 +10 Air Conditioners -10 -20 -30 -40 Refrigerators -50 -60 Clothes Washers -70 1990 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 1995 2010 2005 10

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

State Regulatory Landscape Energy Efficiency Requirements n Senate OH – Energy reductions (0. 3% – 2009; 22. 5% – 2025) – Peak demand reductions (1. 0% – 2009; 7. 75% – 2018) n Act PA NJ Bill 221 129 – 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) Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 12

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

First. Energy 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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 14

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 15

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

Peak Demand Reductions (MW) Penn Power Met-Ed Penelec FE 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, First. Energy’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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 17

Programs for Residential Customers n Home performance programs that provide home audits and rebates toward implementing audit recommendations n Energy. Star® 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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 18

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 19

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 20

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 21

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 22

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% Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 23

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% Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 24

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) Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 25

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 26

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 27

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 28

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. Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 29

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. Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 30

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. Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 31

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 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 2010 32

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

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