FirstEnergy's Pennsylvania Utilities to Offer Energy Efficiency and Conservation Programs

READING, Pa., Feb. 8 /PRNewswire-FirstCall/ -- Metropolitan Edison Company (Met-Ed), Pennsylvania Electric Company (Penelec) and Pennsylvania Power Company (Penn Power) soon will offer a wide variety of programs that could collectively result in customer energy savings of up to $960 million over the life of the initiatives.  The programs, which include ways to make homes more energy efficient and reduce peak energy use, were approved by the Pennsylvania Public Utility Commission (PPUC).  The companies are subsidiaries of FirstEnergy Corp. (NYSE: FE).

"Over the next few months, we will introduce a number of new programs to help our Pennsylvania electric utility customers save energy and money," said Doug Elliott, FirstEnergy president of Pennsylvania Operations.  "They will include incentives for making efficiency improvements in homes and businesses, and tools to help customers understand how to make better energy decisions."

Depending on customer participation, the plans have the potential to reduce energy use by more than a million megawatt-hours annually through 2013, equal to the average annual usage of some 100,000 homes.  This reduced electricity usage also could avoid annual emissions of some 900,000 tons of carbon-dioxide, 10,000 tons of sulfur dioxide and 1,000 tons of nitrogen oxides, help delay the need for costly new generating plants and support the development of "green jobs" in Pennsylvania.

The plans were initially filed with the PPUC on July 1, 2009, to comply with Pennsylvania Act 129, which requires electric utility companies to reduce customer usage and peak demand.  

Programs include:

• Home energy audits – a full evaluation of a home's energy performance, including insulation, heating and cooling systems, doors, windows, caulking and sealing.  Customers who participate also would be eligible for rebates and discounts on items purchased to improve energy efficiency.
• Appliance turn-in – an incentive to customers who turn in older, inefficient appliances such as second refrigerators, freezers and room air conditioners.  The program includes free pick-up and disposal of the old appliances, and may also include a coupon toward the purchase of a high-efficiency appliance through the Energy Efficient Products program described below.
• HVAC program – incentives for contractor-installed HVAC systems in existing or new residential buildings to enhance the home's energy performance.
• Energy efficiency products –  rebates and financial incentives for customers who purchase energy-efficient products such as ENERGY STAR® qualified appliances and high-efficiency lighting.
• Whole building program – comprehensive diagnostic assessments followed by direct installation of selected low-cost measures plus various incentives, including rebates.
• Direct load control program –  an option to receive an advanced technology thermostat capable of two-way communication in exchange for providing the utility company with the ability to raise the temperature a few degrees on peak usage days in the summer.
• On-line home energy analyzer – an on-line audit that provides a customized way to identify energy-saving opportunities that reflect an individual home's characteristics and energy systems.  Participating customers will be offered compact fluorescent light bulbs and, for those with electric water heating, two faucet aerators.
• Low-income residential assistance – additional electric energy savings measures to the existing and new WARM program participants.

The companies also filed revised rates to reflect recovery of approved program costs, as provided for in Act 129.  If approved, costs for a typical residential customer using 750 kilowatt-hours are expected to be less than $3 a month.  However, customers who take advantage of energy efficiency and conservation programs the companies offer will have the opportunity to save much more.  

The plans also include various programs for commercial, industrial, government and non-profit customers to increase energy efficiency and conservation efforts.  More information is available at www.energysavePA.com.

Elliott said a key element of the plan is comprehensive consumer education so that customers understand the options available to them and can choose the programs that provide the greatest benefits for their type of home or business.  And, the incentives will help defray the costs associated with energy efficiency enhancements.

Act 129, which was passed in October 2008, requires electric utility companies to reduce customer electricity consumption by 1 percent by May 31, 2011, and by 3 percent by May 31, 2013.  In addition, the demand placed on the companies' system during peak usage periods must be reduced by 4.5 percent by May 31, 2013.

FirstEnergy is a diversified energy company headquartered in Akron, Ohio.  Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services.  Its seven electric utility operating companies comprise the nation's fifth largest investor-owned electric system, based on 4.5 million customers served, within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its generation subsidiaries control more than 14,000 megawatts of capacity.

Forward-Looking Statements: This news release 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 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 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 Pennsylvania, the impact of the Public Utilities Commission of Ohio's regulatory process on the Ohio Companies associated with the distribution rate case, business and regulatory impacts from ATSI's realignment into PJM, economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices and availability, 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, operating and maintenance costs being higher than anticipated, other legislative and regulatory changes, revised environmental requirements, including possible greenhouse gas emission regulations, the potential impacts of the U.S. Court of Appeals' July 11, 2008 decision requiring revisions to the Clean Air Interstate Rules and the scope of any laws, rules or regulations that may ultimately take their place, 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 that certain generating units may need to be shut down) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation or other similar potential regulatory initiatives or actions, 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, Metropolitan Edison Company's and Pennsylvania Electric Company's transmission service charge filings with the Pennsylvania Public Utility Commission, the continuing availability of generating units and their ability to operate at or near full capacity, the ability to comply with applicable state and federal reliability standards, the ability 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 changing market conditions that could affect the value of assets held in FirstEnergy's nuclear decommissioning trusts, pension trusts and other trust funds, and cause it to make additional contributions sooner, or in an amount that is larger than currently anticipated, the ability to access the public securities and other capital and credit markets in accordance with FirstEnergy's financing plan and the cost of such capital, changes in general economic conditions affecting the company, the state of the capital and credit markets affecting the company, interest rates and any actions taken by credit rating agencies that could negatively affect FirstEnergy's access to financing or its costs or increase its requirements to post additional collateral to support outstanding commodity positions, letters of credit and other financial guarantees, the continuing decline of the national and regional economy and its impact on the company's major industrial and commercial customers, issues concerning the soundness of financial institutions and counterparties with which FirstEnergy does business, and the risks and other factors discussed from time to time in its Securities and Exchange Commission 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 management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's 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. FirstEnergy expressly disclaims any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

SOURCE FirstEnergy Corp.