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York Adams Regional Smart Growth Coalition August 3, 2010

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York Adams Regional Smart Growth Coalition August 3, 2010

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    2. and Saving Money on Your Electric Bill

    3. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 3 FirstEnergy Profile Diversified energy company headquartered in Akron, Ohio Seven electric companies serve about 4.5 million customers within a 36,000-square-mile area in Ohio, Pennsylvania and New Jersey Nation’s fifth-largest investor-owned electric system, based on the number of customers served Fortune 200 company with nearly $13 billion in annual revenues More than $34 billion in assets More than 13,000 employees Let me start by giving you a little background on our company Let me start by giving you a little background on our company

    4. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 4 FirstEnergy Utility Profile FirstEnergy is the holding company for seven electric utility companies serving customers in Ohio, Pennsylvania and New Jersey FirstEnergy is the holding company for seven electric utility companies serving customers in Ohio, Pennsylvania and New Jersey

    5. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 5 FirstEnergy Generation Resources We use a diverse mix of fuels to generate electricity: As shown on the pie chart, our coal-fired plants are designed to generate about 52 percent and nuclear plants about 28 percent of power we produce Natural gas and oil are at about 11 percent and renewable sources make up the remaining 9 percent of our capacity About 40 percent of our generating output – nuclear, wind and hydro – is non-emitting and carbon-free We use a diverse mix of fuels to generate electricity: As shown on the pie chart, our coal-fired plants are designed to generate about 52 percent and nuclear plants about 28 percent of power we produce Natural gas and oil are at about 11 percent and renewable sources make up the remaining 9 percent of our capacity About 40 percent of our generating output – nuclear, wind and hydro – is non-emitting and carbon-free

    6. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 6 Fuel Sources as Percentage of Total Energy Output (MWH) U.S. utilities use a diverse mix of fuels to generate electricity - Our diverse generating mix gives FirstEnergy a distinct advantage in meeting the environmental challenges that lie ahead In Pennsylvania, about 54 percent of the electricity generated is coal-based –about the same as the average electric utility in the U.S. Fuel choices are based largely on economics and availability - For example, coal is most often used in states where it’s abundant – and less so where it’s scarce Renewable fuel sources – such as hydro, wind, biomass and solar – make up about 9 percent of our fuel mix and across the U.S. -That percentage will most likely increase as climate change legislation is enacted with mandates to use low or non-carbon emitting fuels such as nuclear, natural gas and renewables U.S. utilities use a diverse mix of fuels to generate electricity - Our diverse generating mix gives FirstEnergy a distinct advantage in meeting the environmental challenges that lie ahead In Pennsylvania, about 54 percent of the electricity generated is coal-based –about the same as the average electric utility in the U.S. Fuel choices are based largely on economics and availability - For example, coal is most often used in states where it’s abundant – and less so where it’s scarce Renewable fuel sources – such as hydro, wind, biomass and solar – make up about 9 percent of our fuel mix and across the U.S. -That percentage will most likely increase as climate change legislation is enacted with mandates to use low or non-carbon emitting fuels such as nuclear, natural gas and renewables

    7. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 7 U.S. Electricity Consumption Expected to Grow 29% by 2035 Electricity demand is expected to grow about 29 percent over the next 25 years with an annual growth rate of about 1 percent - Relatively slow growth follows an historical trend, with the growth rate slowing in each succeeding decade In the 1950s, the growth rate for electricity was about 10 percent Largest increase is in the commercial sector as service industries continue to drive growth As the industrial sector becomes more energy efficient and as manufacturing moves overseas, electricity demand growth slows Efficiency gains offset growth in electricity demand, as higher energy prices encourage investment in energy-efficient equipment Electricity demand is expected to grow about 29 percent over the next 25 years with an annual growth rate of about 1 percent - Relatively slow growth follows an historical trend, with the growth rate slowing in each succeeding decade In the 1950s, the growth rate for electricity was about 10 percent Largest increase is in the commercial sector as service industries continue to drive growth As the industrial sector becomes more energy efficient and as manufacturing moves overseas, electricity demand growth slows Efficiency gains offset growth in electricity demand, as higher energy prices encourage investment in energy-efficient equipment

    8. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 8 Electricity Use Continues to Grow Growth in population and larger houses increase demand for heating and air conditioning Population shift to warmer regions also increases AC More electrically powered consumer products than ever before Personal computers, iPods, cell phones and game consoles Americans now have about 25 consumer electronic devices in every household It’s not hard to identify the factors behind this increased use In factories, electricity increases worker productivity and quality - Manufacturers have electrified a wide range of processes to increase efficiency, lower labor costs, and improve the quality and consistency of their products In homes, electricity provides customers with greater comfort, convenience and safety – from opening your garage door to providing the security of outdoor lighting Today, Americans have about 25 consumer products in their homes that are powered by electricity – including laptops, iPods, phone chargers and new technologies such as plasma-screen TVs – all contribute to the increased demand for our product - And many of these products draw energy around the clock, including when they're on standby Growth in population and larger homes increase demand for products, services and indoor space that require electricity - Population shifts to warmer regions in the west and south also increase need for air-conditioning It’s not hard to identify the factors behind this increased use In factories, electricity increases worker productivity and quality - Manufacturers have electrified a wide range of processes to increase efficiency, lower labor costs, and improve the quality and consistency of their products In homes, electricity provides customers with greater comfort, convenience and safety – from opening your garage door to providing the security of outdoor lighting Today, Americans have about 25 consumer products in their homes that are powered by electricity – including laptops, iPods, phone chargers and new technologies such as plasma-screen TVs – all contribute to the increased demand for our product - And many of these products draw energy around the clock, including when they're on standby Growth in population and larger homes increase demand for products, services and indoor space that require electricity - Population shifts to warmer regions in the west and south also increase need for air-conditioning

    9. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 9 Typical Household Energy Consumption Information from the Department of Energy shows typical U.S. household electricity use - Room heating, air conditioning and water heating use the most electricity - Lighting and electronic devices use about 11 percent and 9 percent respectively Later in the presentation, we’ll discuss ways to better manage your energy use Information from the Department of Energy shows typical U.S. household electricity use - Room heating, air conditioning and water heating use the most electricity - Lighting and electronic devices use about 11 percent and 9 percent respectively Later in the presentation, we’ll discuss ways to better manage your energy use

    10. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 10 Many Appliances are More Energy Efficient Since 1990, when energy efficiency standards for appliances went into effect in the U.S., power consumption by home appliances has been reduced significantly Great strides have been made in improving the energy efficiency of household appliances such as air conditioners, refrigerators and washers - For example, a typical clothes washer uses 70 percent less energy than it did 15 years ago – before the energy efficiency standards when into effect Significant gains also have been made improving the energy efficiency of other major home appliances Great strides have been made in improving the energy efficiency of household appliances such as air conditioners, refrigerators and washers - For example, a typical clothes washer uses 70 percent less energy than it did 15 years ago – before the energy efficiency standards when into effect Significant gains also have been made improving the energy efficiency of other major home appliances

    11. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 11 New TVs are Big Energy Users Increasing sales of flat-screen televisions, larger screen sizes, the growing number of TVs per household, and increased daily use of televisions all contribute to greater electricity consumption - For example, plasma TVs use about four times more energy than conventional models Increasing sales of flat-screen televisions, larger screen sizes, the growing number of TVs per household, and increased daily use of televisions all contribute to greater electricity consumption - For example, plasma TVs use about four times more energy than conventional models

    12. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 12 State Regulatory Landscape In our three-state service area of Ohio, Pennsylvania and New Jersey, laws have been passed to improve energy efficiency and reduce peak demand In our three-state service area of Ohio, Pennsylvania and New Jersey, laws have been passed to improve energy efficiency and reduce peak demand

    13. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 13 Overview of Energy Efficiency Potential Significant efficiency opportunities from generation to end-user Many opportunities to improve the efficiency of the electric system – from generation to the customer For example, this illustration shows that for every 100 units of energy put into the generating, transmission and distribution system, only 25 percent reaches the customer when using an incandescent light bulb Generation portion of system accounts for about 67% loss of energy inputs And transmissions and distribution losses account for about 8% of loses So average efficiency is about 25% Goal is to improve efficiency and stem losses of power that would otherwise flow to the end user Cutting those losses will allow utilities to generate less power and reduce their CO2 emissions Many opportunities to improve the efficiency of the electric system – from generation to the customer For example, this illustration shows that for every 100 units of energy put into the generating, transmission and distribution system, only 25 percent reaches the customer when using an incandescent light bulb Generation portion of system accounts for about 67% loss of energy inputs And transmissions and distribution losses account for about 8% of loses So average efficiency is about 25% Goal is to improve efficiency and stem losses of power that would otherwise flow to the end user Cutting those losses will allow utilities to generate less power and reduce their CO2 emissions

    14. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 14 FirstEnergy and Energy Efficiency and Conservation Supports efforts that encourage the wise use of electricity and that make sense for our company and customers Energy efficiency programs are essential tools that help customers better manage energy use Helps increase the overall efficiency of electric system Conservation helps customers offset increase in electricity prices Reduces our nation’s carbon emissions “One-size-fits-all” approach doesn’t work Important to recognize differences among customers, cost of programs, and how customers use electricity

    15. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 15 Pennsylvania Act 129 Enacted by Pennsylvania General Assembly in November 2008 Requires Pennsylvania’s seven largest electric distribution companies to develop and implement energy and conservation plans to reduce electricity consumption and peak demand Pennsylvania Public Utility Commission responsible for implementation Under the law, utilities must implement energy efficiency and peak demand reduction programs Electricity savings of at least 1 percent by May 2011, and at least 3% by May 2013 Peak demand reduction of at least 4.5% by May 2013

    16. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 16

    17. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 17 Peak Demand Reductions Utilities must plan to meet peak demand for electricity on their system During peak demand, companies use more costly forms of generation, such as natural gas and fuel oil, to produce power to meet customers’ needs By reducing peak demand, the need to build new power plants is deferred In 2013, FirstEnergy’s peak demand reduction requirement is more than 270 megawatts – the generation capacity of a small power plant What is peak demand? Peak demand occurs when an electric utility is expected to provide power for a sustained period at a significantly higher than average supply level Usually occurs during hot summer days when air conditioners are running Utilities must plan to meet peak demand for electricity on their system During peak demand, companies use more costly forms of generation, such as natural gas and fuel oil, to produce power to meet customers’ needs By reducing peak demand, the need to build new power plants is deferred In 2013, FirstEnergy’s peak demand reduction requirement is more than 270 megawatts – the generation capacity of a small power plant What is peak demand? Peak demand occurs when an electric utility is expected to provide power for a sustained period at a significantly higher than average supply level Usually occurs during hot summer days when air conditioners are running

    18. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 18 Programs for Residential Customers Home performance programs that provide home audits and rebates toward implementing audit recommendations EnergyStar® and high-efficiency appliance programs that provide rebates to customers for purchase of certain energy-efficiency appliances Compact fluorescent lighting (CFL) programs that provide point-of-sale discounts for purchase of CFLs WARM Program – For low-income customers HVAC efficiency programs that encourage consumers to purchase high-efficiency central air conditioners or heat pumps (coming soon) Residential EE programsin PA include: Home Energy Analyzer CFL discounts Appliance Recycling Rebates New Appliance Discounts WARM Program for low-income customers HVAC retrofit program coming soon Residential EE programsin PA include: Home Energy Analyzer CFL discounts Appliance Recycling Rebates New Appliance Discounts WARM Program for low-income customers HVAC retrofit program coming soon

    19. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 19 Proposed Programs for Residential Customers (Continued) Time of use with critical peak pricing rates to reflect cost of serving customers during peak times Hourly-pricing options with rates reflecting cost of energy during each hour, encouraging customers to lower demand or shift to lower-priced periods Incentives for home builders to improve energy performance of new residential construction

    20. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 20 Programs for Business, Government and Non-Profit Customers Lighting efficiency programs that provide incentives for installing occupancy sensors and systems to reduce number of lamps per fixture or replace lights with high-intensity lights or LEDs Motors and Drives Program for industrial/commercial applications Energy audits and technology assessment programs Commercial HVAC efficiency programs that encourage purchase of high-efficiency systems Programs focused on reducing energy by providing incentives to customers for improving energy efficiency Street lighting and traffic signal programs Federal Government Programs Several programs for commercial and industrial customers have been introduced, including: Lighting efficiency programs that provide incentives for installing occupancy sensors and systems to reduce number of lamps per fixture or replace lights with high-intensity lights or LEDs - Motors and Drives Program for industrial/commercial applications Energy audits and technology assessment programs Commercial HVAC efficiency programs that encourage purchase of high-efficiency systems Programs focused on reducing energy by providing incentives to customers for improving energy efficiency Street lighting and traffic signal programs - Federal Government Programs Several programs for commercial and industrial customers have been introduced, including: Lighting efficiency programs that provide incentives for installing occupancy sensors and systems to reduce number of lamps per fixture or replace lights with high-intensity lights or LEDs - Motors and Drives Program for industrial/commercial applications Energy audits and technology assessment programs Commercial HVAC efficiency programs that encourage purchase of high-efficiency systems Programs focused on reducing energy by providing incentives to customers for improving energy efficiency Street lighting and traffic signal programs - Federal Government Programs

    21. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 21 Proposed Programs for Business, Government and Non-Profit Customers (Continued) Direct load control programs Load management services to small and large commercial and industrial and governmental and non-profit customers

    22. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 22 Home Energy Audits First step in making your home more energy efficient Helps assess how much energy your home uses and evaluates steps you can take to improve efficiency Do-it-Yourself Audits or Professional Home Energy Audits Home Energy Analyzer Compares your home’s energy efficiency to similar homes in your area

    23. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 23 Energy Saving Tips Heating and Cooling Accounts for 50 to 70% of the energy used in average home Save energy dollars by using less air conditioning and heating Set thermostat at 78 degrees in summer, 68 in the winter Each degree cooler in summer or warmer in winter increases energy use by 6 to 8%

    24. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 24 Energy Saving Tips Home weatherization/insulation Insulation saves money: Inadequate insulation is a leading cause of energy waste in most homes Makes home more comfortable by maintaining uniform temperature Caulk and weather-strip doors and windows Reduces heating and air conditioning use by 10 to 20%

    25. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 25 Energy Saving Tips Cooling Replace a central air conditioner (SEER rating of 10 or less) with a new high-efficiency unit (SEER rating of 13 or more) Save up to 25% on cooling bills

    26. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 26 Energy Saving Tips Lighting Replace incandescent light bulbs with Compact Fluorescent Light (CFL) bulbs and reduce electricity use for lighting CFLs last up to 10 times longer than incandescent bulbs CFLs deliver savings for years to come … up to $30 over the life of the bulb

    27. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 27 Energy Saving Tips Refrigeration Replace old refrigerator (18 years or older) with new unit to reduce energy use Energy efficient refrigerators can use up to 50% less electricity than older models Cooking Microwave uses 50% less energy than conventional ovens

    28. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 28 Energy Saving Tips Water Heating Hot water system one of biggest users of energy in home Lowering the water temperature setting from 140° F to 120° F can reduce water heating energy bill by more than 10% Clothes Washing New front-loading washers use at least 30% less water and 50% less energy than regular washing machines

    29. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 29 Energy Efficiency: Fact or Fiction?

    30. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 30 Energy Efficiency: Fact or Fiction?

    31. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 31 Energy Efficiency: Fact or Fiction?

    32. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 32 Energy Efficiency: Fact or Fiction? Short cycling also reduces the ability to dehumidify the house properly since its capacity to remove moisture is lowest at the beginning of the cooling cycle.Short cycling also reduces the ability to dehumidify the house properly since its capacity to remove moisture is lowest at the beginning of the cooling cycle.

    33. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 33 For More Information www.firstenerycorp.com www.energysavePA.com

    34. 2010 Energy Efficiency and Saving Money on Your Electric Bill in Pennsylvania 34 That concludes my presentation Now, I’d like to take any questions or comments you might have That concludes my presentation Now, I’d like to take any questions or comments you might have

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