1. FirstEnergy / Jersey Central Power & Light Integrated Distributed Energy Resources (IDER) Joseph Waligorski FirstEnergy Grid-InterOp 2009 Denver, CO November 17-19, 2009

2. FirstEnergy/JCP&L Profile $13 billion in annual revenues and $32 billion in assets 4.5 million customers, 1.1 in New Jersey 18 generating plants; more than 14,000 MW Approx. 133,000 transmission and distribution circuit miles Approx. 13,500 employees Source: EEI Rankings Among Electric Utilities (12 mos. ended 12/31/2007) Assets 11 Customers 5 Revenues 11 Market Cap (as of 2/29/08) 7

3. Project Overview Integrated Distributed Energy Resources (IDER) management to enable operational and PJM market benefits Integrated Control Platform (ICP) – Real-time system monitoring and status for utility operations Direct Load Control (DLC) – NJBPU approved expanded deployment of the IDER Management Pilot – 23 MW Residential and Commercial & Industrial customer load with control by the integrated control platform Distributed energy storage Sensors on distribution circuits

4. IDER Pilot: Objectives and Expected Value Demonstrate value and viability of targeted peak load management to: – Enhance system reliability and energy efficiency – Participate in PJM market programs Demonstrate cost-effective demand response methods that address NJ EMP 2020 goals Demonstrate an integrated control platform (ICP) using a two-way communications system Selected as an industry smart grid demonstration 4

5. FirstEnergy / Jersey Central Power & Light Integrated Distributed Energy Resources (IDER)

6. Settlements Architecture Vision Dashboards ERPSAP Corporate Financial Apps and Systems Power Procurement and Market Ops Planning & Forecasting Bidding & Scheduling Trading & Contracts Resource Dispatch Storage & Distributed Generation Transmission Automation Substation Automation Distribution Automation Customer Integration & AMI T & D Operations EMS Operations Planning SCADA T & D Planning and Engineering System Planning Maintenance Managements Asset Management GISOMSMWM MDMSCISCall CenterBilling Distribution Management Customer Services Enterprise Application & Data Integration (Common Information Model and Integration Bus) Communications Infrastructure

7. Settlements Architecture Application Dashboards ERPSAP Corporate Financial Apps and Systems Power Procurement and Market Ops Planning & Forecasting Bidding & Scheduling Trading & Contracts Resource Dispatch Transmission Automation Substation Automation Distribution Automation T & D Operations EMS SCADA T & D Planning and Engineering System Planning Maintenance Managements Asset Management GISOMSMWM MDMSCISCall CenterBilling Distribution Management Customer Services Enterprise Application & Data Integration (Common Information Model and Integration Bus) Communications Infrastructure Operations Planning Storage & Distributed Generation Customer Integration & AMI Integrated Control Platform

8. Integration Interfaces Integration will require cross-functional collaboration in critical areas: – Physical integration – Device deployment Communications infrastructure – Data integration Databases Processing information – Operations integration ICP installed in Regional Dispatch Office Local loading visualization Process is to determine the requirements in each critical area and to build an integration plan around these functional requirements Integration will be accomplished in accordance with NIST interoperability standards efforts recognizing framework for complex interactions and protocols Physical Integration Data Integration Operations Integration

9. Integration Requirements Integration and coordination of distributed energy resources – real-time coordination of resources (DLC, distributed energy storage devices and strategically placed sensors) – advanced communication and control technology to manage distributed resources as a virtual resource for operations – situational awareness and control capability. Open and flexible wide area network – Flexible communications infrastructure to support deployment and near real- time performance Enabling technology for integrated distributed intelligence: – process large quantities of data and respond very quickly – distributed intelligent devices to the right locations in the local, near and wide area networks – Goal of intelligence at the right place for control at the right time Physical Integration CONCEPT The physical integration plan is being developed around three integration fundamentals:

10. Device & Network Integration Flexible and configurable communications infrastructure Divided into three major segments – Wide area network (WAN) – fiber, copper, cellular, etc… – Near area network (NAN) – wireless mesh, ethernet, radio, PLC, etc… – Local area network (LAN) – Zigbee, PLC, etc... Physical Integration EXAMPLE Local Area Network Near Area Network Wide Area Network WAN NAN LAN Integrated Control Platform Multiple communication types and paths provide data to the Integrated Control Platform to process into actionable information

11. Cross Functional Integration 11 Data Integration CONCEPT Functional – Non-functional – Data Flow/Mapping – M&V User Interface – Rules – Configuration – Triggers – Response Data Collection – Data Aggregation – Data Access – Data Storage Cyber Security – Standards – Interoperability – Device Interface – Alarm Coordination Specifications Architecture Business Requirements Performance Requirements Operational Tools Use Case Market Based Market Based Operations Based System Performance Operations Plan System Performance Aligns with Performance Requirements

12. Operations Integration 12 Use Case #3: The system shall enable operation of system Integrated Distributed Energy Resources (DER) as part of the RDO response to system alarms. Function Name: IDER System Activation by Alarm Description of Function: The IDER system needs to respond to critical needs quickly. The ICP uses a rules based engine to configure numerous aspects that govern the operation of the IDER System. This Use Case describes how the system shall respond to configured operational alarms to meet optimal performance objectives. The IDER System should be able to 1) allow operators to configure and classify equipment profiles based on anticipated system loads and operational thresholds ; 2) classify thresholds into alarm categories ; and 3) apply rules based logic to assess asset status based on alarms in near real time.

13. Implemented Data Exchange Temp Sensor Customer Direct Load Controller Integrated Distribution Sensors, Devices and Assets ICP Data Collection & Mgmt Regional Display device Regional Distribution Operator Integrated Resource Stored Energy Operations/D ata Integration APPLICATION

14. Integrated Control Platform RDO View Point of integration for monitoring and control of direct load control devices Event Scheduler IDER Dashboard

15. Ongoing Activities Use Case Models/ Scenarios – System Integration Data mapping –information exchange Information management requirements –access/ retrieval Information Layer - data architecture – Performance and Integration Requirements Hardware – function, interoperability, control Software – function, interoperability, data exchange Operations Integration - business process/ purpose – Identify Standards, Gap Analysis – Identify & Develop Common Information Models – Business Case Models – value streams