David Kline Manager, External Affairs
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1 Potomac Edison Storm Response David Kline Manager, External Affairs January 14, 2013
2 About FirstEnergy Headquartered in Akron, Ohio One of the largest investor-owned electric systems in the U.S. based on six million customers served Nearly $47 billion in assets $16 billion in annual revenues Approximately 20,300 megawatts of generating capacity 10 electric utility operating companies in seven states 65,000-square-mile service territory 20,000 miles of high-voltage transmission lines and approximately 281,000 miles of distribution lines Learn more by visiting 2
3 FirstEnergy 10 Regulated Utilities One of the largest U.S. investor-owned electric utilities 6 million customers in six states (OH, PA, NJ, MD, WV, NY) Operating Company Customers Ohio Edison 1,032,676 Illuminating Company 746,565 Toledo Edison 308,551 Met-Ed 553,749 Penelec (PA and NY) 590,318 Penn Power 160,687 West Penn Power 717,090 Monongahela Power 386,698 Potomac Edison (MD and WV) 388,548 Jersey Central Power & Light 1,100,498 *As of April 30, 2012 *5,985,380 3
4 Profile of Potomac Edison Headquarters in Williamsport, Maryland Almost 500 employees 388,548 customers 5,184-square-mile service area in 15 counties 4
5 Potomac Edison Service Restoration Process Planning and Preparation in Advance of Storm Preparations begin several days before a storm strikes Instrumental to restoring service quickly and safely Company meteorologists monitor storm movement Assess potential impact on electric infrastructure Conference calls held with company leadership, operations personnel and others to plan service restoration efforts 5
6 Potomac Edison Service Restoration Process Planning and Preparation in Advance of Storm Evaluate need for internal and external mutual assistance crews Prepare staging areas needed for crews, equipment and supplies Communicate with emergency management agencies, government officials and regulators Implement proactive, comprehensive communications strategy for reaching customers and media outlets 6
7 Potomac Edison Service Restoration Process Damage Assessment During and After Storm Hazard response crews visit damaged areas of the electric infrastructure; if a hazard is found, they stand by to secure area Operating company leadership determines requirements for crews, equipment and supplies Service Restoration Priorities Emergency restoration efforts performed in staged process Eliminating a known hazard is our top priority First, repairs made to high-voltage transmission equipment, lines and substations Next, priority given to emergency response facilities such as hospitals, police and fire departments as well as 911 facilities Then, repairs made to restore service to greatest number of customers 7
8 Getting the Power Back On Labor intensive process line crews, forestry crews and thousands of other workers required to restore service One repair can require multiple tree crews to remove and clear downed trees Multiple line crews needed to replace poles and spans of wire Once a repair is made, other repairs along the circuit may be required before power can safely be restored 8
9 Service Restoration Process 1. Isolate and make safe Power Plant 2. Repair high-voltage lines/restore essential functions 3. Restore hospitals and critical care customers Transmission Lines Repair main feeder/distribution lines 5. Restore areas with largest number of customers Neighborhood Substation Restore individual homes 1 Although this is the preferred process during major service restoration efforts, the order may change due to specific conditions. Distribution 5 Lines 6 9
10 Transmission And Subtransmission Restoration Priorities High Number of Customers Affected Low Trunk/ Feeder Circuits Branches and Laterals Services/Single Customer related Short Time to Restore Long 10
11 Potomac Edison Major weather events Merger completed in February 2011, with no reduction in force Hurricane Irene, summer 2011 Early snowstorm, fall 2011 Derecho wind storm, summer 2012 Hurricane Sandy, fall These extraordinarily strong recent storms have challenged utility response throughout the eastern U.S. Potomac Edison s storm restoration process strengthened through the merger, with greater in-house resources and more available mutual assistance 11
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