first energyWallStreetAccess_121407_new

Wall Street Access / Berenson & Company
West Coast Seminar
Las Vegas • December 14, 2007

Ron Seeholzer
Vice President, Investor Relations

Safer Harbor Statement under the Private Securities
Litigation Reform Act of 1995
These Presentations includes forward-looking statements based on information currently available to management. Such statements are subject to
certain risks and uncertainties. These statements include declarations regarding our, or our management’s, intents, beliefs and current expectations.
These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “believe,” “estimate” and similar words. Forward-
looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-
looking statements. Actual results may differ materially due to the speed and nature of increased competition in the electric utility industry and
legislative and regulatory changes affecting how generation rates will be determined following the expiration of existing rate plans in Ohio and
Pennsylvania, economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and
commodity market prices, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy’s
regulated utilities to collect transition and other charges or to recover increased transmission costs, maintenance costs being higher than anticipated,
other legislative and regulatory changes including revised environmental requirements, the uncertainty of the timing and amounts of the capital
expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than
anticipated) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation or other potential regulatory
initiatives, adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits
and oversight by the Nuclear Regulatory Commission including, but not limited to, the Demand for Information issued to FENOC on May 14, 2007) as
disclosed in our SEC filings, the timing and outcome of various proceedings before the PUCO (including, but not limited to, the Distribution Rate Cases
and the generation supply plan filing for the Ohio Companies and the successful resolution of the issues remanded to the PUCO by the Supreme Court
of Ohio regarding the Rate Stabilization Plan and the Rate Certainty Plan, including the deferral of fuel costs) and the PPUC (including the resolution of
the Petitions for Review filed with the Commonwealth Court of Pennsylvania with respect to the transition rate plan for Met-Ed and Penelec), the
continuing availability of generating units and their ability to continue to operate at or near full capacity, the ability to comply with applicable state and
federal reliability standards, the inability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), the
ability to improve electric commodity margins and to experience growth in the distribution business, the ability to access the public securities and other
capital markets and the cost of such capital, the outcome, cost and other effects of present and potential legal and administrative proceedings and
claims related to the August 14, 2003 regional power outage, the risks and other factors discussed from time to time in our SEC filings, and other
similar factors. The foregoing review of factors should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for
us to predict all such factors, nor can we assess the impact of any such factor on our business or the extent to which any factor, or combination of
factors, may cause results to differ materially from those contained in any forward-looking statements. Dividends declared from time to time on
FirstEnergy's common stock during any annual period may in aggregate vary from the indicated amounts due to circumstances considered by
FirstEnergy's Board of Directors at the time of the actual declarations. Also, a security rating is not a recommendation to buy, sell or hold securities,
and it may be subject to revision or withdrawal at any time and each such rating should be evaluated independently of any other rating. We expressly
disclaim any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

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West Coast Seminar

2007 – Key Accomplishments

Regulatory
Successfully transitioned Penn Power to competitive generation
market prices
Filed distribution rate case requests and competitive generation
procurement proposal for Ohio utilities

Financial
Narrowed EPS guidance to top-half of the original range: $4.15–$4.25*
Expecting to generate $1.7B of cash from operations
Increased dividend 11.1%
Completed accelerated repurchase of approx. 14.4 million shares
Completed $1.3B sale and leaseback transaction on 779 MW of
Mansfield Unit 1
* See GAAP to Non-GAAP reconciliations in the Appendix.

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West Coast Seminar

2007 Key Accomplishments (continued)

Operational
Expecting generation output in excess of 81 million MWh –
20% increase from 2003
Added over 300 MW of additional generating capacity through
uprates, wind contracts and peaking enhancements – with
significantly less risk than new plant construction
Continued improvement in T&D reliability metrics – SAIDI down 15%
Achieving top-decile safety performance – 0.89 YTD OSHA rate
On schedule and budget for Air Quality Control (AQC) projects at the
Sammis Plant
NRC accepted Beaver Valley Units 1 & 2 license renewal applications
for review

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West Coast Seminar

2008 and Beyond – Key Objectives
Based on the Fundamentals

Objectives
Operations
– Realize the full potential of our
A strong and
generation assets
stable corporation
– Reinvest in the business
with a focus on
– Minimize commodity risks
the fundamentals
Regulatory – Operational excellence
– Recover cost of service
– Financial discipline
– Transition to competitive
– Management credibility
generation market prices
– Continuous improvement
Financial Strength & Flexibility
– Achieve targeted growth
– Deploy cash effectively

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West Coast Seminar

Realizing Full Potential of Generating Fleet
Fleet Characteristics and Mission-Driven Strategy

Significant scale: FES controls about 14,000 MW
Balanced fuel mix: 38% nuclear; 62% fossil & other (2007F output)
Geographic diversity: Participate in two RTOs (MISO and PJM)
Fleet strategy optimizes performance and reliability
– Each unit has a specific mission (baseload, load-following or peaking)
– Increases efficiency and reduces wear and tear on baseload units

Generation Output
100

80
(million MWh)

60

40

20

0
2004 2005 2006 2007F 2008F 2009F 2010F 2011F
29.9 28.7 29.0 30.7 32.0 31.0 32.2 32.0
Nuclear
46.5 51.5 53.0 51.5 52.7 52.4 53.7 54.6
Fossil

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West Coast Seminar

Mining Our Assets – incremental, low-risk investment approach to fleet expansion

Cumulative
Type of MW Addition 2005–2007F 2008F–2011F
MW
Fossil baseload uprates 130 89 219
Fossil load following uprates 0 84 84
Nuclear baseload uprates 92 78 170
Peaking capacity enhancements* 149 0 149
Total MW additions 371 251 622
* Reflects 12 separate projects including returning 70 MW at Burger Unit 3 that has not been available since summer 2005.

Mining Our Assets benefits:
– ~$700/kW average capital cost is competitive vs. current market price of new capacity
– Lower risk than large, long lead-time projects
– Quicker to market
– Low technology and construction risk
Clarity on capacity and ancillary services market structure,
technological advances, and environmental regulations will impact
generation asset decisions in the future

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West Coast Seminar

Leading the Way in Procuring Renewable Energy to Meet Growing Demand

FES Wind Energy Portfolio
Renewable
State Overview
Mandate Status Capacity RECs/Year
In-service
145 MW 384 GWh
2007
Drives our
PA 18% by 2020 renewable In-service
70 MW 180 GWh
strategy today 2008

Total: 215 MW 564 GWh
On the horizon
and will impact Leading wind energy supplier in PA
25% by 2025
OH our renewable
Evaluating expansion of current wind
(Proposed)
strategy in the
portfolio
future
Considering other renewable
technologies:
Represents a – Solar
minimal part of – Compressed air
NJ 22.5% by 2020
our renewable – Biomass
– Land fill gas
requirements
– Anaerobic digestion

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West Coast Seminar

Reinvesting in the Business
Capital Expenditure Forecast
Capital Expenditures ($ millions)
Business Project Areas 2009F-2011F
Unit 2004 2005 2006 2007F 2008F Average

- Aged infrastructure rebuild
Energy
$455 $724 $650 $746 $730 $730
- Pockets of load growth
Delivery - Reliability improvements

- Improve managing operating risk
$106 $148 $116 $104 $96 $155
Fossil - Upgrade aged equipment
- Environmental / fuel enhancements

- Availability improvements
$141 $173 $229 $149 $131 $260
Nuclear - Dry fuel storage / license renewal
- Materials issues

$29 $45 $39 $88 $86 $75
Corporate - Information Technology, etc

Sub-Total $731 $1,090 $1,034 $1,087 $1,043 $1,220
- Compliance strategy totals - Sammis,
$0 $54 $136 $387 $650 $222 *
AQC Burger Units, Mansfield and Eastlake
Unit 5

Total $731 $1,144 $1,170 $1,474 $1,693 $1,442
* AQC annual expenditures include $500M (2009), $156M (2010), and $11M (2011)

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West Coast Seminar

AQC Construction Overview

Sammis Plant (2,233 MW) – $1.65B
– SO2 control (scrubbers) all units
– NOx control (SCRs) Units 6 & 7 (1,200 MW)
NOx control (SNCR) Units 1–5 (1,033 MW) completed
Mansfield Plant (2,490 MW) – $50M
SO2 control (scrubber) upgrades completed
Burger Plant – $180M
– NOx control (SNCR) and SO2 control
Electro-Catalytic Oxidation (ECO)
Units 4 & 5 (312 MW)
Eastlake Plant – $6M
NOx control (SNCR) Unit 5 (597 MW) completed

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West Coast Seminar

Our generation fleet is well-positioned for the future

Fleet Emission Control Status
2007 2010
Capacity Fleet Capacity Fleet
(MW) % (MW) %
Non-Emitting 4,581 34% 4,638 34%
Coal Controlled
2,626 19% 5,237 38%
(SO2/NOx – full control)
Natural Gas Peaking 1,283 9% 1,283 9%
8,490 62% 11,158 81%

Longer-term environmental considerations
CO2 control – Over 35% of annual fleet output is non-emitting
– Involved in CO2 capture and sequestration R&D
Mercury control – Excellent reduction through “co-benefits”
– Based on current rules and plans, additional equipment not required before 2018

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West Coast Seminar

Energy Delivery – striving to achieve top quartile performance

2011
Focus Area Key Metrics 2007F 2008F
Target
Reliability

Distribution SAIDI (minutes) 128 118 103
Top-quartile performance SAIDI and
top-decile in TOF
TOF (per circuit) 0.39* 0.31 0.31
Financial Performance
Achieve top-quartile total spend per
Total Cost Per Customer $270 $265 $263
customer
* Top quartile

SAIDI Performance Total Cost per Customer
$300
220
Top Quartile
190
SAIDI (Minutes)

$270

Total CPC
160 ED&CS
$240
ED&CS
130
100 $210
Top Quartile
70
$180
40
$150 2005 2006 2007 2008 2009 2010 2011 2012
10 2005 2006 2007 2008 2009 2010 2011 2012

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West Coast Seminar

Managing Commodity Positions
Expected FES Supply & Sales* Expected FES Total Supply*
95 94
100 90

Significant reductions

(million MWh)
80
60
in mostly on-peak 40
energy purchases 20
0
2008F 2009F 2010F
11 7 9
Forward / Spot Purchases
32 31 32
Nuclear
52 52 53
Fossil, Hydro, Wind
Supply numbers exclude JCP&L and firm contract portion of ME/PN

Expected FES Total Sales*
95 94
90
100

(million MWh)
80
Significant increases in 60

higher margin sales 40
20
0
2008F 2009F 2010F
1 31 29
Retail Auction
12 20 24
Competitive Retail
16 20 21
Forward / Spot Sales
14 19 20
ME/PN PRA Obligations
52 0 0
OH PSA Obligations
Sales numbers exclude JCP&L and firm contract portion of ME/PN

•*Assumes move to open market in Ohio in 2009 and beyond

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West Coast Seminar

Managing Commodity Positions
Coal and Related Commodity Hedging

% Hedged 2008 2009 2010
Coal only 99% 91% 100%

Coal transportation 97% 91% 58%

SO2 99% >100% >100%

NOx >100% 78% 74%

Engaged in fuel flexibility initiative to expand margins and
fuel choices
Actively pursuing closure to long-term transportation
positions – rail contract signed, 2010 barge contract
agreement reached
2009–2010 seasonal NOx requirements are expected to be
fully covered as State allocations are made (OH due Jan. 2008)
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West Coast Seminar

Seeking Full Recovery of Costs
Ohio Distribution Rate Cases
Company Filing
Proposed increase (Effective 1/09 for OE & TE 1/09; 5/09 for CEI): $ millions
Ohio Traditional distribution costs $212
Recovery of costs deferred under prior rate plans 120
Total proposed increase to quot;distributionquot; revenues $332

PUCO Staff Report (Dec. 4, 2007) – Based on initial review
Proposed increase (Effective 1/09 for OE & TE 1/09; 5/09 for CEI): $ millions
Traditional distribution costs $100 -$119
Recovery of costs deferred under prior rate plans 61
Total proposed increase to quot;distributionquot; revenues $161 - $180
Key Staff Report differences:
Matters to be considered in other cases ($106)
ROE @ 10.06% to 11.09% (vs. Co. @ 11.75%) ($33) - ($14)
Capital structure (equity ratio @ 43.75% vs. Co. @ 49%) ($18)
Other issues (net) ($14)

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West Coast Seminar

Transitioning to Competitive Generation Markets
Legislative Update: Ohio and Pennsylvania

Penn Power successfully transitioned to competitive
generation market prices on Jan. 2007
Ohio utilities transition scheduled for Jan. 2009; Met-Ed and
Penelec transition scheduled for Jan. 2011
Efforts are underway in both OH and PA on potential
new energy legislation
FirstEnergy actively engaged in the legislative process
Multiple issues being considered…key is to assure a
smooth transition to market in both states

FirstEnergy is positioned in each state
to successfully transition to market

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West Coast Seminar

Achieving Targeted Growth
2007 and 2008 Earnings Guidance

2007 Non-GAAP Earnings Guidance*

Original (Feb. 2007) $4.05 – $4.25

Revised (Oct. 2007) $4.15 – $4.25

Affirmed (Dec. 2007) $4.15 – $4.25

Established 2008 Non-GAAP earnings guidance of $4.15 to
$4.35 per share*
– Normalized to exclude anticipated gain on the planned sale of
non-core assets, currently estimated at $0.08 per share in 2008

* Financial Guidance is current as of December 5, 2007. See GAAP to Non-GAAP reconciliations in the Appendix. On a GAAP basis,
2008 EPS is expected to be $4.23 to $4.43 reflecting an $0.08 gain on the planned sale of non-core assets.

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West Coast Seminar

2008 Earnings Guidance

$5.00

Ohio
Transition
Cost
Amortization
$0.14
$4.50 Depreciation &
General Taxes
$0.03
$0.06
$0.05 Other
($0.13)
Generation $4.25*
$0.04 2007
Output
$4.20* ($0.10)
Financing Share
($0.04)
Costs Buyback
Outage
Wires
O&M
Sales
Costs
Growth
$4.00

$3.50
Midpoint 2007 Midpoint 2008
Non-GAAP Non-GAAP
EPS Guidance EPS Guidance
* Financial Guidance is current as of December 5, 2007. See GAAP to Non-GAAP reconciliations in the Appendix. 2008 EPS guidance, excluding special
items, is $4.15 to $4.35. On a GAAP basis, 2008 EPS is expected to be $4.23 to $4.43 reflecting an $0.08 gain on the planned sale of non-core assets.

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West Coast Seminar

Major Earnings Drivers 2009 - 2011

Distribution rate case in OH effective 2009

Market generation prices in OH in 2009

Market generation prices in PA in 2011

Asset mining / realizing full potential of
generation assets

Further operational enhancements

Timely recovery of regulated costs and
capital investments

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West Coast Seminar

Achieving Targeted Growth (continued)
Major Earnings Drivers 2009 - 2011

Declining margin from OH transition plans

Impact of expiring Met-Ed/Penelec third-party power
contract in 2009

Increasing fuel and purchased power costs

Increasing O&M costs

Higher depreciation expenses (non-cash)

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West Coast Seminar

Deploying Cash Effectively
Available Cash Forecast

2007F 2008F Change
($ millions)

Net Cash from Operating Activities $1,698 $2,224 $526

Capital Expenditures (1,474) (1,693) (219)

Nuclear Fuel Fabrication (94) (136) (42)
Available Cash before Dividends $130 $395 $265

Potential uses of substantial growth in free cash
following completion of AQC projects
– Dividend growth
– Potential for share repurchases
– Invest for future growth
– Ability to take advantage of strategic opportunities

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West Coast Seminar

Deploying Cash Effectively
Common Dividend

Management will recommend that the Board of Directors
declare a quarterly dividend of $0.55 per share payable
March 2008 at their December 18 meeting

Dividend Increases:
Payment Quarterly Change from Annualized
Date Rate Prior Period Rate
1Q 2008 55.00¢ 10.00% $2.20
1Q 2007 50.00¢ 11.10% $2.00
1Q 2006 45.00¢ 4.65% $1.80
4Q 2005 43.00¢ 4.24% $1.72
1Q 2005 41.25¢ 10.00% $1.65
4Q 2004 37.50¢ – $1.50

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West Coast Seminar

Bottom Line –
FirstEnergy is an attractive risk/reward opportunity

Effectively managing transition
to competitive markets
Realizing full potential of assets
Significant
Earnings
Reinvesting for future growth

Growth
Effectively deploying strong cash flow
Potential
Striving for continuous improvement
Maintaining strategic flexibility
Well-positioned for climate legislation

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West Coast Seminar

FirstEnergy Corporate Profile
Diversified energy company headquartered in Akron, Ohio

Involved in Generation, Transmission and Distribution of
electricity, as well as other energy-related services

Fifth largest investor owned electric utility in U.S based on
customers served

4.5 million customers within 36,100 square miles of Ohio,
Pennsylvania and New Jersey

Control more than 14,000 megawatts of generating capacity

$11.5B in annual revenues and more than $31B in assets

Approx. $22B market capitalization

Wall Street Access Corporate Profile
Las Vegas, NV ▪ December 14, 2007
2

FirstEnergy Generation – Diversity & Scale
Michigan Ashtabula
Perry 244 MW
Seneca
1,258 MW
Eastlake
Sumpter 451 MW
1,262 MW
340 MW Bay Shore
Stryker Erie
648 MW Lake Shore
18 MW
Yards Creek
Towanda
249 MW
Toledo
200 MW
Cleveland

New Castle
Pennsylvania
Akron
Davis-Besse Edgewater Morristown
Richland
893 MW Newark
48 MW
432 MW
West Lorain Johnstown Reading
Harrisburg
545 MW Allenhurst

Trenton

W. H. Sammis
2,233 MW
New
Columbus Beaver Valley Bruce Mansfield
Jersey
R. E. Burger 1,779 MW 2,490 MW
413 MW
Mad River Forked River
60 MW 86 MW
Ohio Unit Mission Strategy
Baseload Peaking Units Other
Load Following
MW MW MW MW

Mansfield 1-3 2,490 Sammis 1-5 1,020 West Lorain 545 OVEC 463
Wind 145
Beaver Valley 1,2 1,779 Eastlake 1-4 636 Seneca 451
Perry 1,258 Bay Shore 2-4 495 Richland 432 Total 608
FirstEnergy Power Sources Sammis 6,7 1,200 Burger 4 -5 312 Sumpter 340
Davis-Besse 893 Lake Shore 245 Yards Creek 200
C Coal 7,469 MW
Eastlake 5 597 Ashtabula 244 Burger 3 & EMDs 101
N Nuclear 3,930
Bay Shore 1 136 Forked River* 86
H Hydro Total Load Following 2,952
651 Mad River 60
G Gas & O Oil 1,599
Total Baseload 8,353
Edgewater 48
Other 608 Stryker 18
Other 63
Total 14,257 MW
Total Peaking Units 2,344 * Sale pending

Wall Street Access Generation
2

Fossil Operating Performance
2007 Highlights 2008 Look Ahead
– –
Top-quartile safety performance Achieve top-decile safety performance
– –
New monthly all time generation Drive continuous improvement
record set August 2007 through fleet standardization of best
(4.6 million MWh) practices, benchmarking and Fossil
Excellence annual diagnostics
– Environmental projects (AQC) on track
– Continue to focus on transitioning
– Outage performance improving
workforce knowledge and skills to a
– Implemented Fossil Excellence at
new generation of employees
Bay Shore and Sammis (continuous
– Execute Mining Our Assets strategies
improvement)
– Develop and implement a full start-up
– On track for workforce replenishment
testing, training and operation
– Improved performance accountability
strategy for AQC
– Mansfield Unit 3 uprate (30 MW)
2011
Fossil 2007F 2008F
Target
OSHA Incident Rate (per 100 employees) 1.12 1.12 0.80

Total Generation (million MWh) 51.5 52.7 54.6

Capacity Factor (Baseload %) 81.0 87.2 90.7

3

Nuclear Operating Performance
2007 Highlights 2008 Look Ahead
– –
Top-quartile safety performance Maintain top-quartile safety performance
– –
DB worked > 7.5 million hours Targeting record generation
without a Lost Time Accident (32.0 million MWh)
– Record Fleet Generation projected – Two outages – DB and BV2
(30.7 million MWh)
– Additional 12 MW from DB Caldon
– BV1 uprate (43 MW); BV2 uprate (24 MW) modification
– No forced losses at BV1; BV2 top
– Additional 45 MW from BV power uprate
quartile (0.24%)
– NRC Emergency Preparedness Evaluated
– PY returned to Standard Reactor
Exercises at BV and PY
Oversight Process
– Dry Cask Fuel Storage underway at PY
– NRC accepted BV license renewal application
– Successful NRC Security drills at PY and BV
– Lowest BV dose during fall outage

2011
Nuclear 2007F 2008F
Target
OSHA Incident Rate (per 100 employees) 0.25 0.25 0.25

Total Generation (million MWh) 30.7 32.0 32.0

Capability Factor (%) 90.0 92.9 92.4

4

Top-Tier Operational Capability
Focus on Cost Control

Mission-driven strategy in Fossil has resulted in significant
reductions in cost since 2004 as well as increased output
In spite of increased AQC-related O&M in 2008–2010, non-fuel
production costs are expected to remain stable
Cost-effective execution of outages is expected to drive
improvement and stability of nuclear non-fuel expenses

Fossil Nuclear

($ / MWh)
($ / MWh)

2004 2005 2006 2007F 2008F
2004 2005 2006 2007F 2008F
Non-Fuel Fuel
Non-Fuel Fuel

5

Top-Tier Operational Capability
Continued Improvement of Asset Utilization

Garnered significant nuclear reliability improvements during
2006–2007 outages
Fossil fleet expected to return to top-quartile performance in 2008
– AQC-related outages will lower capacity factors in 2009 and 2010
– Expect to reach top-decile performance levels by 2011

Baseload Capability/Capacity Factors
100%

95%
Factors (%)

90%

85%

80%

75%
2004 2005 2006 2007F 2008F 2011 Target
84.6% 86.9% 88.5% 81.0% 87.2% 90.7%
Fossil baseload
89.5% 86.2% 86.8% 90.0% 92.9% 92.4%
Nuclear

6

Operational Performance Targets
2011
Operational Performance 2004 2005 2006 2007F 2008F
Targets

Total Generation (million MWh) 76.4 80.2 82.0 82.2 84.7 86.6

Fossil Reliability

Capacity Factor (Baseload %) 84.6 86.9 88.5 81.0 87.2 90.7

Nuclear Reliability

Capability Factor % 89.5 86.2 86.8 90.0 92.9 92.4

Energy Delivery Reliability

Distribution SAIDI (minutes) 159 191 152 128 118 103

7

Nuclear Generation
Future refueling outages focus on reliability
Expected Expected
Scope Driving Duration
Year Plant Outage Costs Outage Duration
(Items with asterisk* denote duration drivers)
($ millions) (days)
Refueling *
IVVI
Perry 1R11 $30 30
Actual Outage Period (4/2/07 – 5/13/07)
Split Pins *
Containment Sump Modifications*
Reactor Vessel ISI *
2007
100% Eddy Current Test
Beaver Valley 1R18 $32 28
Reactor Vessel Head Inspection
Pressurizer Overlay
Actual Outage Period (9/24/07 – 10/24/07)
Rewind Main Generator *
Davis-Besse 1R15 $30 31
Split Pins *
Low Pressre-2 Turbine Inspection *
Beaver Valley 2R13
2008 $30 30 Main Cond Tube Replacement, Expansion Joints *
Replace High Pressure Turbine *
Type A Containment Pressurization Test
Refueling *
10-year IVVI / Bioshield In-service Inspection
Perry 1R12 $30 25
Recirc Pump Motor Replacement
Replace Low Pressure Turbines (2) *
2009
Reactor Coolant System Loop Stop Valves (2)
Refueling *

8

Generation – Implementing Plans for the Future
Nuclear license renewal
Current Submit Request Approval New
Expiration (NRC Docket) Expected Expiration
Beaver Valley Unit 1 2016 Submitted 2007* 2009 2036
Beaver Valley Unit 2 2027 Submitted 2007* 2009 2047
Davis-Besse 2017 2010 2012 2037
Perry 2026 2013 2015 2046
* The NRC accepted the application for review

Nuclear steam generator replacements
– Davis-Besse in 2014
– Beaver Valley Unit 2 in 2017

9

Generation – Implementing Plans for the Future
Nuclear spent fuel storage
– Since 1983, FirstEnergy has collected $494M from the rate-payers
for the long-term storage of used nuclear fuel. At the federal level,
Yucca Mountain has been proposed as a site for long-term storage
and may be available as early as 2017 to receive used fuel, but this
is not likely. If Yucca Mountain is available in 2017, FirstEnergy will
be eligible to ship fuel starting in 2021.

Beaver Valley
Implement dry storage by the end of 2014
Unit 1

Current ongoing criticality analysis will increase storage space
Beaver Valley
Re-rack before 2011 to provide capacity through 2025
Unit 2
Dry storage could then be implemented
Continue with wet storage until 2021
Davis-Besse
Switch back to dry storage in 2022

Perry Implement dry storage before 2011

10

AQC Upgrades – Sammis Plant
Flue Duct Work – 9,000 tons (9,000 ft.)

Electrical Cable – 9,120 circuits (530 miles)

Foundation Piles – 5,600 piles (445,000 LF)

Concrete – 51,000 cubic yards

Tons of Steel – 17,200 tons

DCS I/O Points – 8,200

Large Bore Pipe – 88,300 ft. (17 miles)

Small Bore Pipe – 13,000 ft. (2.5 miles)

Overland “Pipe” Conveyor – 3.0 miles long

Sammis Plant with computer overlay
of Wet Flue Gas Desulphurization
(WFGD) equipment

Wall Street Access Environmental Strategy
2

Environmental Strategy
FirstEnergy’s climate activities

CO2 Capture and Storage Technologies
Participating in Global Climate Change Policy
• MRCSP – R.E. Burger Plant Sequestration test well
• Global Roundtable on Climate Change
• ECO2 Carbon Capture – Powerspan
• EPRI Global Climate Policy Costs & Benefits Research
• EPRI research
• EEI Climate Change Policy Subcommittee
• Power Partners
• NEI Climate Change Policy Subcommittee
• Oxy Fuel – B&W
GHG Reduction Technologies & Voluntary Actions
End-user Energy Management
• Asia-Pacific Partnership
• NJ Clean Energy Program
• EPA SF6 Reduction Partnership
• PA Sustainable Energy Fund
• EPRI GHG Reduction and Electric Transportation Research
• Ohio Energy-efficiency Programs
• Climate Vision
Renewables
• DOE 1605(b) Voluntary Reporting of GHGs Program
• 650 MWs Hydro
• Powertree Carbon Company
• >200 MWs Wind Purchase Agreements
Generation Initiatives
Renewal of Nuclear and Hydro Plant
• Fossil plant efficiencies
Operating Licenses
• Nuclear plant uprates
• Continued operation of non-emitting generation

3

FirstEnergy’s Position on Global Climate Change
Climate change is a global issue ultimately requiring
a global solution
Technology development is key
– Energy efficiency and demand-side management
– Clean coal technologies
– Carbon capture and sequestration
Significant future impact on price of electricity whether
states are regulated or deregulated
– Be consistent over broad geographic region
– Include reasonable compliance timeframes
– Encourage new cost-effective technologies

4

Additional Key Technologies FirstEnergy is
Actively Co-Funding
Plug-in hybrid electric
vehicles (PHEV)
– Considerably cleaner than
internal combustion engine
vehicle, including battery
charging
– 30% less GHG
– 15% less SO2 and NOx
– Provides largely off-peak demand,
an opportunity for growth
– Advanced meters are an enabling
technology

5

Coal Commodity Position
Continue working to
Securing Open Coal
Commodity Positions secure long-term fuel
supply contracts
Actively testing alternate
2008 99%
fuel blends at various
plants to optimize plant
91%
2009
economics and flexibility
Engaged in fuel flexibility
2010 100% initiative to expand
margins and fuel choices
0 5,000 10,000 15,000 20,000 25,000

Total Needed Tons Total Covered Tons

Wall Street Access Commodity Operations
2

Coal Transportation Position
Actively pursuing closure to
Securing Open Coal
long-term transportation
Transportation Positions
positions – rail contract
signed, 2010 barge contract
agreement reached
97%
2008

Continuing to evaluate
additional delivery options
2009 91% to increase both capabilities
and flexibility
Enhanced rail unloading
2010 58%
capabilities in process at
Ashtabula, Bay Shore and
0 5,000 10,000 15,000 20,000 25,000
Lake Shore
In 2008, FES will manage PRB
Total Needed Tons Total Covered Tons
rail logistics previously
outsourced

3

Emission Allowance Position
SO2 Position
SO2 Position Based on projected generation:
350,000
– SO2 emission allowance
260,000
positions are well covered for
(tons)

170,000
2008 and 2009
– Closed 2010 SO2 positions early
80,000

to mitigate potential scrubber
-10,000
projects completion risks
2008 2009 2010
Needed Covered Position
– 2008 seasonal NOx is covered
– 2009 – 2010 seasonal NOx
Seasonal NOx Position
requirements are expected to
30,000 be fully covered as allocations
are made to states (OH due in
20,000
Jan. 2008)
(tons)

10,000
– Annual NOx allocations are
0
beginning and markets are
2008 2009 2010
still thin
-10,000
Needed Covered Position

4

Fuel Flexibility Creates Margin & Fuel Choices
Enhanced systems, tools and processes providing the ability to react and
adjust blends quickly to match market prices
“Fuel Flex” creates value by continuously increasing fuel blend choices
– Maximize revenues when real-time market prices are favorable
– Minimize costs when market prices are low

The Right Fuel
at the
Right Time

5

PJM Capacity Position
ME and PN have long-term capacity contracts
Beaver Valley nuclear plant (1,779 MW) committed in PJM to cover
capacity position
Covered capacity prior to RPM auction for planning year 2008-2009 to
replace long-term contracts
Committed Seneca pumped storage (451 MW) to PJM as a capacity
resource for planning year 2009 (commencing in June 2009)
PJM Net Capacity
FES View (continuing to serve the ME and PN PRA)
3500
2800
2100
1400
700
MW

0
(700)
(1400)
(2100)
(2800)
(3500)
Jul

Jul

Jul
Jan
Feb

Jun

Jan
Feb

Jun

Jan
Feb

Jun
Oct

Oct

Oct
Mar

Mar

Mar
May

Nov
Dec

May

Nov
Dec

May

Nov
Dec
Sep

Sep

Sep
Aug

Aug

Aug
Apr

Apr

Apr
2008 2009 2010
Includes Beaver Valley, Forked River and Seneca

6

Regulated Rate Base and Sales Growth
Projected Annual Growth
Projected Rate Base –
2011
Regulated Companies (T&D) 2007F 2008F
Target
($ millions)

Net Plant for Rate Base $9,800 $10,100 $11,000
Capital Expenditures, Net of
$394 $365 $330
Depreciation

Average Annual (2009F – 2011F) OH PA NJ

Growth Rate (kWh) 0.9% 1.7% 2.2%
Net Plant for Rate Base ($ millions) $4,420 $3,290 $3,000
# of Customers (millions) 2.1 1.3 1.1

Growing asset base and increased distribution throughput

Wall Street Access Energy Delivery
2

Energy Delivery Performance Targets
2011
Focus Area Key Metrics 2007F 2008F
Target
Safety
OSHA Incident Rate** 1.70* 1.62 1.00
Consistently achieve top-decile (1.24)

Reliability

Distribution SAIDI (minutes) 128 118 103
Top-quartile performance SAIDI and
top-decile in TOF
TOF (per circuit) 0.39* 0.31 0.31
Financial Performance
Achieve top-quartile total spend per
Total Cost Per Customer $270 $265 $263
customer

Employees
An environment where employees are
Total Staffing 7,637 7,898 7,995
valued and accountable for the
performance of the business
* Top quartile
** Per 100 employees

3

Capital Planning Enhancements
Energy Delivery Capital Allocation Tool (E-CAT)

Benchmarked leading performers in the
area of capital allocation Game Plan:
Selected Navigant to help develop Target spend with
capital allocation tool based on an emphasis on
improving reliability
fundamental engineering economics
(quantified benefits) Continued focus
on operational
improvements

E-CAT provides the granularity which
drives our ability to prioritize thousands
of projects based on predicted benefits

Capital planning has undergone a fundamental change to
enhance our financial discipline

4

Workforce Management
Power Systems Institute (PSI)
– Started in 2000; partnered with two colleges in Ohio to offer
lineworker training
– Currently, partnerships with 11 local community colleges
and universities across OH, PA and NJ

Enrollment/Hires Started
2008F 2009F
Graduated Hired
2000–2007 Program

Line Workers 276 236 214 123 177
Substation
110 87 82 31 60
Electricians
Total 386 323 296 154 237

5

Ohio Regulatory Update
Distribution Rate Requests

Ohio Edison, CEI and Toledo Edison
OH
Case detail
– Request: $332M increase (7% on overall rates)
– Distribution revenue requirements: $212M
– Deferral recovery: $120M

Case schedule
– Filed June 2007, with 2008 test period and
date certain of May 31, 2007
– PUCO Staff report issued December 4, 2007
– Hearings expected 1st quarter 2008
– 275-day timeline reached in March 2008
– Rates to be effective January 2009 (CEI in May 2009)

Wall Street Access Regulatory Matters
2

Ohio Regulatory Matters
Distribution Rate Requests (as filed)

Proposed Changes in Revenues ($ millions) Total
Current quot;Distributionquot; Revenues $1,118
Proposed Increase:
Associated with RCP Fuel Expense Deferrals 34
Associated with RCP Infrastructure Expense Deferrals 40
Associated with RCP DSM Deferrals (through a rider) 4
Associated with ETP & Ohio Line Extension Deferrals 42
quot;Basequot; Revenue Requirement Increases 212
Total Proposed Increase to quot;Distributionquot; Revenues $332
Proposed quot;Distributionquot; Revenues $1,450
Offsetting RTC Decrease ($594)
Net Decrease, Including Offsets * ($262)
% Decrease, Including Offsets to Total Current Revenues * -5.7%
* Assumes current Generation & Transmission rates

3

Competitive Generation Procurement Proposal

OH
On July 10, 2007, filed a comprehensive supply plan for
competitively priced generation service to implement
market provisions of S.B. 3 effective January 1, 2009
Proposal includes:
– Option to phase in generation price increases for residential
tariff groups that experience > 15% increase in avg. total price
– Time-of-day and hourly pricing options
– Renewable energy component
Competitive bid process (CBP) alternatives
– By Customer Class, or
– Slice of System

4

Competitive Generation Procurement Proposal (continued)

CBP process
– Descending clock bidding format
OH
– Full requirements product (energy, capacity, transmission)
– Individual bidders limited to 75% of total customer load
– Multiple solicitations; three-year ladder
Bids secured in 2008 would be for service beginning
January 1, 2009, and ending:
– May 31, 2010 (17-month)
– May 31, 2011 (29-month)
– May 31, 2012 (41-month)
Subsequent annual bids for 1/3 of load (3-year supply)

5

Supreme Court of Ohio Remand on Rate Certainty Plan

OH
August 29: Supreme Court of Ohio remanded recovery
of deferred fuel costs in distribution rates to PUCO for
further consideration
The Court reaffirmed all other aspects of the
Rate Certainty Plan
September 10: Companies filed a Remand Application
with the PUCO seeking generation-related fuel cost
recovery rider
– Remand remains at PUCO

6

Pennsylvania Regulatory Update
Commonwealth Court Appeals & Generation Procurement Filing

Met-Ed and Penelec
PA
Commonwealth Court appeals of rate cases
– $109M net increase effective January 2007
– Pending appeals to Commonwealth Court
– ME & PN - denial of generation relief and tax expense adjustment
– Industrials & OCA - transmission recovery
– Oral arguments expected late 4Q or early 2008
– Decision expected in 2008

Generation procurement filing plan
– ME & PN transition to competitive generation market prices
on January 1, 2011
– Plan to submit generation procurement proposal in 2008

7

Pennsylvania Regulatory Update
Penn Power POLR II Case

Penn Power successfully transitioned to
competitive generation market prices on
PA
January 1, 2007
– POLR I RFPs implemented for January 2007–May 2008
– POLR II multiple RFP’s with staggered delivery
June 2008 through May 2011
– Proposed full requirements product by class
– Settlement Agreement filed in September 2007
– Favorable ALJ Recommended Decision received in October 2007
– Anticipate Commission Order in December 2007
RFP Tranches (50 MW)
Group Term
Jan 08 Mar 08 Oct 08 Jan 09 Oct 09 Jan 10
Residential 1 year 2 2 0 0 2 2
Residential 2 year 2 2 2 2 0 0
Commercial 1 year 3 4 3 4 3 4

– Industrial customers on hourly priced default service
8

Regulatory Matters
Jersey Central Power & Light

New Jersey Energy Master Plan
NJ – State goals
– Reduce total projected electricity demand by 20% by 2020
– Meet 22.5% of electricity needs with renewable energy
– Reduce air pollution and energy use
– Encourage and maintain economic development
– Achieve a 20% reduction in CAIDI and SAIFI by 2020
– Unit prices at no more than +5% of the regional price level
– Eliminate transmission congestion by 2020
– Detailed draft plan expected by year end 2007
– JCP&L focus: Peak demand management and cost recovery

9

Retail Regulatory Structure
Generation Transmission Distribution Transition Cost
Ohio Edison
RTC thru
Stable rates
Fixed rates
Pass thru
thru 2008 2008 – OE, TE
CEI
thru 20081
MISO costs
“g + RSC” 2010 – CEI
Toledo Edison
Market in No CTC ended
In
Penn Power
2007 restriction Jan. 2006
Generation
CTC thru 20102
Met-Ed
POLR rates Pass thru No
thru 2010 PJM costs restriction CTC thru 20092
Penelec

No
JCP&L BGS Supply MTC thru 2018
restriction

CEI fixed through April 2009.
1

NUG recovery thru 2020.
2

10

2007 – Key Financial Accomplishments
Consistent financial results
– Narrowed Non-GAAP 2007 earnings guidance to $4.15 to $4.25*,
the top half of original guidance range

Continued strong cash flow
– Expect net cash from operating activities of $1.7B
– Includes pension contribution of $300M

Enhanced capital structure
– Transferred $427M of tax-exempt pollution control debt from utilities to
unregulated Gencos
– Issued approximately $1.1B of operating company debt

Strengthened pension fund
– Voluntary $300M contribution
– Plan well funded

* See GAAP to Non-GAAP reconciliations in the Appendix.

Wall Street Access Financial Matters
2

2007 – Key Financial Accomplishments (continued)
Positioned FirstEnergy Solutions (FES) as an
independent capital raising entity
– Investment grade credit ratings (BBB/Baa2) received in March 2007
– Completed $1.3B sale and leaseback transaction on 779 MW portion
of Unit 1 of the Bruce Mansfield Plant
– Captured benefit of $752M of expiring tax capital loss carryforwards
– Equivalent to borrowing at 3.6% for a term of 33 years
– Upsized FES’ borrowing capacity under FirstEnergy’s revolver to $1.0B

Increased shareholder value
– Year-to-date stock price appreciation of 13.7% (through Nov. 2007)
– Three year annualized TSR of 21.5% (through Nov. 2007)
– Dividend increase of 11.1% (March 2007)
– Accelerated repurchase of approx. 14.4 million shares (March 2007)

Wall Street Access Financial Matters
3

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