1. Metropolitan Edison Company Pennsylvania Electric Company Pennsylvania Power Company September 21, 2010 Harrisburg, PA KEEA Conference

2. 09-21-2010KEEA Conference 2 Energy Efficiency and Conservation at FirstEnergy n Program portfolio supports efforts that encourage the wise use of electricity and that make sense for the companies 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 Benefits of conservation offset increase in electricity prices –Reduce 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 n Costs to implement the programs are recovered from customers in Pennsylvania in accordance with Act 129 of 2008

3. 09-21-2010KEEA Conference 3 FirstEnergy’s Pennsylvania Service Territory

4. 09-21-2010KEEA Conference 4 FirstEnergy Residential Program Portfolio n Residential Program Portfolio consists of a suite of nine EE and DR programs n Seven of these programs have been launched n To date, 80 jobs have been created

5. 09-21-2010KEEA Conference 5 www.EnergySavePA.com n Direct Load Control (Pre-Launch) –Provides incentives to add load cycling controls for central air, electric water heaters and pool pumps n Home Energy Audits (Active) –Online: No additional cost to customer, receive self-install Energy Conservation Kit valued at $100 –Walk-Through: Customer co-pays $50, opportunity to discuss recommendations with a trained auditor, receive a detailed customer report, direct-installed energy measures valued at $50 n Appliance Turn-In (Active) –Receive cash incentive and disposal of up to two large older inefficient appliances (refrigerators or freezers) and two room size air conditioners per household per calendar year

6. 09-21-2010KEEA Conference 6 n Whole Building Comprehensive ( Active ) –Customer co-pays $100, high usage households are eligible to receive a comprehensive whole house audit detailing specific measures to improve the energy efficiency of their home. Incentives are available to encourage customers to implement cost effective energy efficiency improvements. n Multifamily Building (Active) –Tenants in buildings covered under the PA Housing Finance Authority (PHFA) program may participate in lighting retrofits which will exchange current lighting with four CFLs.

7. 09-21-2010KEEA Conference 7 n EE HVAC Equipment (Active) –Provides incentives for contractor-installed qualified high-efficiency heating, ventilation and air-conditioning equipment systems in existing or new residential buildings. HVAC Tune-up incentives also are available. n Energy Efficiency Products (Active) –Provides incentives to purchase ENERGY STAR® qualified appliances and other energy efficient products n New Construction (Pre-Launch) –Encourages builders to construct highly energy-efficient homes through use of contractor-installed HVAC, solar, or other eligible systems in new residential buildings

8. 09-21-2010KEEA Conference 8 Low-Income n WARM Extra Measures (Active) –Expanded measures to WARM Program participants, including an average of four additional CFLs and smart power strips n WARM Plus Program (Active) –An additional 25% of qualifying low-income households will be served by the WARM Program which provides a no cost comprehensive home energy audit and no cost energy saving measures n Low-Income, Low-Use Program (Active) –Income eligible households who use less than 600 KWH a month will receive a kit containing four CFLs and a brochure on saving energy