KEEA Energy Efficiency Conference 2011 Metropolitan Edison Company Pennsylvania Electric Company Pennsylvania Power Company West Penn Power Company Energy Efficiency September 20, 2011 Harrisburg, PA

2 FirstEnergy Profile PA EDC Penn Power West Penn Power Met-EdPenelecTotals Residential Customers140,054619,240485,951504,7631,750,008 Commercial Customers19,47883,03163,45881,335247,302 Industrial Customers21413,5561,7272,26417,761 Total Customers159,746715,827551,136588,3622,015,071 Square Miles1,10010,3643,30017,60032,364

3 Met-Ed, Penelec, Penn Power Portfolio Plans n The companies’ portfolio plans consist of a suite of 19 EE and DR programs n All programs have been launched

4 West Penn Power Portfolio Plans n The companies’ portfolio plans consist of a suite of 16 EE and DR programs n All programs have been launched except: - Small Commercial & Industrial Time-Of- Use - In-Home Audit - Critical Peak Pricing Program NameCSPLaunch Date Residential Sector EnergyStar Appliance ProgramWPP & JACO (Recycling)Mar-10 CFL Rewards ProgramWPP & Retailer Point of SaleMar-10 Whole Home Appliance ProgramWPP & PFC (Rebate Processing)Mar-10 Home Performance ProgramWPP & Aclara (Online Audit)Mar-10 Critical Peak Rebate ProgramWPP & Garrison HughesMay-10 Residential Low Income Home Performance Check-Up Audit & Appliance Replacement Program WPP & Dollar EnergyMar-10 Joint Utility Usage Management ProgramWPP & Dollar EnergyMar-10 Small Commercial & Industrial HVAC Efficiency ProgramWPP & PFCMar-10 Products Efficiency ProgramWPP & PFCMar-10 Custom Technology Applications ProgramWPP & EatonMar-10 Large Commercial & Industrial Custom Applications ProgramWPP & EatonMar-10 Customer Load Response ProgramWPPJun-10 Customer Resources Demand Response Program WPP & Energy ConnectJun-10 Distributed Generation ProgramWPP & Power SecureJun-10 Government / Non Profit Lighting Efficiency ProgramWPP & PFCMar-10

5 Energy Savings Targets & Results *Cumulative program inception to date Preliminary Results through May 31, 2011

6 Met-Ed Program Progress Note: 1 Preliminary gross energy savings through May 31, 2011 Residential

7 Penelec Program Progress Note: 1 Preliminary gross energy savings through May 31, 2011 Residential

8 Penn Power Program Progress Note: 1 Preliminary gross energy savings through May 31, 2011 Residential

9 West Penn Power Program Progress Note: 1 Preliminary gross energy savings through May 31, 2011 Residential

10 Met-Ed, Penelec, Penn Power First Amended Plan n EE&C Plan amendment filed February 18, 2011 to enable attainment of 2013 EE & DR targets n Key modifications included: –Updated program modeling assumptions –Included updated measures –Adjusted participant and rebate levels, savings and cost estimates –Rebalanced portfolio budget among programs –Increased funding for cost effective programs –Reduced funding for lower potential programs –Requested increased funding for Large Commercial & Industrial customer class –Large C&I Equipment Rebate Program –PJM Demand Response n Key Events –June 28, 2011 – PA PUC Hearing Held –September 2011 – Anticipated PA PUC Approval

11 WPP Energy Efficiency Plan Changes n Filed petition to amend EE&C Plan on August 9, 2011 –Mid-course corrections necessary to attain mandated reductions n Key modifications include: –Transition Plan to be more consistent with the affiliates’ Plans –Rename programs and regroup measures –Capitalize on scale and synergies created through common plan administration and outsourced implementation activities –Expand programs to include additional program (Conservation Voltage Reduction) and measures –Update program modeling assumptions –Adjust participant and rebate levels, savings and cost estimates based on actual costs to date

12 Key Successes n Expedited Plan amendments were implemented in 2011 –Saw enhanced participation in Residential HVAC Equipment Tune Up based on rebate increase (e.g. $60 central air) –Distributed more than 249,000 bulbs through the CFL Give Away program as of May 31, 2011 –Realized Increased savings for Government / Non-Profit program based on the opt-in CFL kit offering n West Penn Power launched ‘Opt-In’ CFL accelerated delivery program –Implemented in May 2011; to date approximately 110,956 CFL kits issued/ordered for over 39,000 MWh savings

13 n Cross-marketing of all energy efficiency programs n Centralized call center capable of marketing all programs n Rebate processing to provide timely customer response n Umbrella marketing: –Crisp, clean, professional look to all marketing materials –Consistent use of colors, branding, wording –Designed to create consistent consumer messaging n Provide support to other CSP’s programs (e.g., JACO distributes CFLs) n Stay flexible to redirect efforts for programs that are successful and modify those programs that are under-performing n Provide field-based program outreach to provide all market actors (retailers, contractors, distributors) with marketing, awareness and confirmation that they are viable participants Best Practices PA Residential Best Practices

14 n Identified customers participating in LIHEAP and CAP programs using the customer information system n Targeted eligible low income customers with low energy use (e.g., apartment dwellers) to receive energy conservation kits –Provided approximately 21,000 energy conservation kits –Saved approximately 6,500 MWh n Leverage Act 129 funds to expand existing whole house LIURP (WARM) program to serve an additional 2,000 low income homes to date n Managing Act 129 low income programs using the same internal staff used to manage the CAP and LIURP (WARM) programs Best Practices PA Residential Low Income Best Practices

15 n Educate trade allies – they sell programs to their customer base n Use E-blast ( s) to notify customers and trade allies of program announcements n Hold weekly webinars during program launch phase to: –Educate customers and trade allies about programs/measures –Ensure participants know how to complete application forms which helps expedite back- office processing n Participate in targeted trade shows that are geared toward small C/I & gov. n Participate in professional organizations that are attended by manufacturers and distributors who sell to trade allies n Leverage FirstEnergy workforce such as area managers and Speaker’s Bureau to attend and present at chamber events, manufacturer’s assoc, etc. Program Year 3 Changes Best Practices PA Small C/I & Gov Best Practices

16 Web address is: For Additional Information: Customer contact center:

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