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

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

2. Rankings AmongElectric Utilities (12 mos. ended 12/31/2007) Assets 11 Customers 5 Revenues 11 Market Cap(as of 2/29/08)7 Source: EEI 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

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 & LightIntegrated Distributed Energy Resources (IDER)

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

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

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

9. Integration Requirements Physical Integration CONCEPT • 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 The physical integration plan is being developedaround three integration fundamentals:

10. Device & Network Integration Physical Integration EXAMPLE • Flexible and configurable communicationsinfrastructure • 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... WAN Wide Area Network NAN Integrated Control Platform Near Area Network LAN Local Area Network • Multiple communication types and paths provide data to the Integrated Control Platform to process into actionable information

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

12. Operations Integration Use Case #3: The system shall enable operation of system Integrated Distributed Energy Resources (DER) as part of the RDOresponse 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. 12

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

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

16. Questions & Answers Thank You Thank You