Asia Pacific Partnership United States of America Power Generation Task Force August 13 – 17, 2007 Overview of FirstEnergy Pumped Hydro Seneca & Yards Creek Stations William Harker

FirstEnergy Pumped Hydro Seneca & Yards Creek Stations August 16, 2007

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation FirstEnergy Pumped Hydro Seneca & Yards Creek Stations »$13 billion in annual revenues and more than $31 billion in assets »4.5 million customers »20 generating plants »128,000 transmission & distribution miles »Approx. 13,100 employees in electric utility operations »$13 billion in annual revenues and more than $31 billion in assets »4.5 million customers »20 generating plants »128,000 transmission & distribution miles »Approx. 13,100 employees in electric utility operations 3

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Akron Toledo Reading Beaver Valley 1,722 MW Davis-Besse 898 MW Perry 1,258 MW R. E. Burger 413 MW W. H. Sammis 2,233 MW Bruce Mansfield 2,460 MW Eastlake 1,262 MW Ashtabula 244 MW Seneca 443 MW Edgewater 48 MW Richland 432 MW Stryker 18 MW Yards Creek 200 MW York Haven 19 MW Forked River 86 MW Mad River 60 MW West Lorain 545 MW Lake Shore 249 MW Sumpter (Michigan) 340 MW Erie Ohio Pennsylvania New Jersey Harrisburg Morristown Newark Allenhurst Trenton Bay Shore 648 MW Columbus New Castle Cleveland Johnstown Towanda FirstEnergy Power Plants C Coal G Gas H Hydro N Nuclear O Oil FirstEnergy System Ohio Edison Illuminating Company Toledo Edison Met-Ed Penelec Pennsylvania Power Jersey Central Power & Light FE operates a portfolio of diversified, generation assets used to manage risk and meet retail pricing expectations. FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 4

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Seneca, Yards Creek Seneca 443 MW - Warren, PA Seneca 443 MW - Warren, PA Yards Creek 400 MW Blairstown, NJ Yards Creek 400 MW Blairstown, NJ FirstEnergy Pumped Hydro Seneca & Yards Creek Stations FirstEnergy’s Hydro Generation Portfolio 5

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Generation Portfolio & Hydro Capacity FirstEnergy Pumped Hydro Seneca & Yards Creek Stations Hydro'sNumber of UnitsNDCFuel TypeComments Seneca3443Pumped Storage Yard's Creek3200Pumped Storage 400 MW Plant total - 50% owned by PSE&G York Haven2019Run of River20 Units - 1MW Each Total Hydro's26662 Coal 7,439 MW Hydro 662 MW Gas/Oil 1,599 MW Nuclear 3,878 MW 52% 28% 11% 5% Other* 493 MW 4% * Other – owned capacity operated by the Ohio Valley Electric Corp. and a long-term contract with third-party wind power supplier 6

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Role of the Plant/Department n Hydros –Provide energy, regulation and spinning reserve during on- peak hours –Provide an energy sink off-peak (11P.M. -7 A.M.) to allow fossil and nuclear plants to remain more fully loaded FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 7

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Seneca History n Federal Energy Regulatory Commission (FERC) license (Project #2280) issued in 1965; expires in 2015 n Construction started 1966 n Went commercial in 1970 n Original construction cost: $61M n Upper Reservoir side slopes repaved in 2000 n Generator Rewind on Unit 2 in 1981 and Unit 1 in 1985 n Runners replaced on Unit 1 in 1992 and Unit 2 in 1991 FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 8

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Unique Aspects n Significant Interface with: –United State Army Corps of Engineers –United States Forest Service –Federal Energy Regulatory Commission –Pennsylvania Fish & Game Commission n Fishing access to Corps parking lot closed as of 9/11 n Visitor Center responsibility FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 9

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Seneca’s Scale n Upper Reservoir holds to 2+ billion gallons of water – equivalent to 6600 acre-feet n Water is conveyed between plant & Upper Reservoir via a 21' diameter pipe n At full station load, approx. 3.4 million gpm of water is released (7500 cfs) FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 10

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Seneca – View of Upper Reservoir FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 1/2 mi. dia. 60 ft deep 800 ft above plant asphalt lined 1/2 mi. dia. 60 ft deep 800 ft above plant asphalt lined 11

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Seneca – View of Plant & Lower Reservoir FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 12

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Kinzua Dam FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 13

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Yards Creek History n Federal Energy Regulatory Commission (FERC) license (Project #2309) issued in 1963, expires in 2013 n Construction commenced in 1963 n Went commercial in 1965 n 50/50 partner with PSE&G n Original construction cost: $15M (50% share) n New runners installed on Unit 2 in 1993, Unit 1 in 1995 & Unit 3 in 1996 n Generators rewound on Units 1& 3 in 1996, Unit 2 in 1997 FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 14

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Unique Aspects n Significant Interface with: –Boy Scouts of America –United States Forest Service –Federal Energy Regulatory Commission –New Jersey Fish & Game Commission –New Jersey Dept. of Environmental Protection n Recreational requirements from FERC license, closed as of 9/11 n Visitor Center responsibility FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 15

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Yards Creek’s Scale n Upper Reservoir holds 1.6 billion gallons of water, equivalent to 4763 acre-feet n Water is conveyed between plant & Upper Reservoir via an 18’ diameter 1,800’ long exposed steel pipe n At full station load, approx. 4 million gpm of water is released (9000 cfs) FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 16

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Yards Creek – View of Plant & Lower Reservoir FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 17

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Seneca – Yards Creek Comparison FirstEnergy Pumped Hydro Seneca & Yards Creek Stations SenecaYards Creek Upper Reservoir – manmade, asphalt lined, earth filled, clay core dike Upper Reservoir – manmade, underlying rock structure, rock filled, clay core using existing terrain Lower Reservoir – Impounded Allegheny River Lower Reservoir – captive supply 100% owned50/50 ownership with PSE&G Staffed with Operators 24/7Operated remotely from Reading Operating Head – 800’Operating Head – 750’ Penstock – embedded in mountainPenstock – exposed On government landOn private land FERC Fees $1.4M annuallyFERC Fees $.7M annually Relicensing: $7.3M Capital budgetRelicensing: $3.6M Capital budget 18

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Merrill Creek Reservoir n Merrill Creek –It is a 15.6 Billion gallon reservoir located in Washington, NJ. –Its purpose is to replenish water in the Delaware River when river flows go below 3,000 CFS in times of drought. –The reservoir is owned by the Merrill Creek Owners group. –FE owns16.74% ( JCP&L 8.37%, MetEd 8.37%). –The Yard’s Creek station manager is the FE representative. FirstEnergy Pumped Hydro Seneca & Yards Creek Stations 19

Asia Pacific Partnership Aug , 2007 FirstEnergy Corp. & Duke Energy Corporation Merrill Creek Reservoir FirstEnergy Pumped Hydro Seneca & Yards Creek Stations Merrill Creek Reservoir New Jersey 20