Prepared for:FirstEnergy Ohio Utilities

WEBINAR:FirstEnergy Ohio Utilities’ Request for Proposals for 2013 Ohio Compliant Renewable Energy Credits

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Thank you for attending FirstEnergy Ohio Utilities’ Request for Proposal (“RFP”) for 2013 Ohio Compliant Renewable Energy Credits Webinar

Our session will begin shortly

Our key presenter this morning: Dan BradleyDirector, Navigant Consulting

Good Morning!

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Any statements in this Webinar presentation describing or referring to documents and agreements are summaries only, and are qualified in their entirety by reference to such documents and agreements as provided in the RFP

The governing documents are:» RFP Bidder Rules» Communications Protocol» Purchase & Sale Agreement (“PSA”) » Qualification Application» Credit Application» Pricing Proposal» Confirmation of the PSA

Disclaimer

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▪ Process for the Webinar▪ RFP Communications Protocol▪ Overview▪ Eligibility & Requirements▪ PSA Overview▪ Delivery Requirements▪ Credit Application & Requirements▪ Proposal Submittal Requirements▪ Evaluation & Selection▪ Execution of PSA(s)▪ Target Schedule of Events▪ PUCO Certification Process▪ Questions about the RFP

Agenda

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▪ Navigant is muting all phone lines▪ During the Webinar, please submit your

questions via the “chat” functiono Ask questions any time via chato You will not be identified to other

participantso We will accumulate all questions

and address them in the Frequently Asked Question (FAQ) section of the RFP Web site

o Certain questions may be addressed during the Webinar

Process for the Webinar

RFP Web site

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Visit the RFP Web site for more detailshttp://www.firstenergycorp.com/OH2013RECRFP

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Important to note that in order to ensure a fair and impartial procurement process, contact with FirstEnergy Ohio Utilities is restricted during the RFP process. ▪Navigant is conducting this RFP for FirstEnergy Ohio Utilities▪Proposers may:

» Submit questions today via chat» Submit questions via RFP Web site using the “Contact Us” link» Submit questions via email to rfp@navigant.com» Call the Navigant Hotline at (516) 876-4036 » All correspondence pertaining to the RFP should be directed

through the RFP Web site or through Navigant

RFP Communications Protocol

RFP Communications Protocol is posted in the “Supplier Documents” section of the RFP Web site

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▪ The objective of this RFP is for FirstEnergy Ohio Utilities to select qualified proposals for Ohio Compliant Renewable Energy Credits (“RECs”) for purposes of complying with the renewable energy and solar energy resource requirements of R.C. 4928.01, R.C. 4928.64, and R.C. 4928.65 (“Ohio Law”)

▪ FirstEnergy Ohio Utilities is seeking to purchase a fixed number of PUCO-certified SRECs and/or RECs to be Delivered on or before February 14, 2014 in the following quantities:» 6,500 All-State SRECs; » 100 In-State SRECs;» 145,000 All-State RECs; and » 120,000 In-State RECs.

▪ FirstEnergy Ohio Utilities, at its sole discretion, may select more or fewer quantities of SRECs and/or RECs.

Overview

Geographical Requirements

▪ RECs and SRECs being requested under the RFP:» 6,500 PUCO-certified SRECs generated

either:• within the State of Ohio, or • deliverable into Ohio pursuant to PUCO

determination.» 100 PUCO-certified SRECs generated from

within Ohio.» 145,000 PUCO-certified RECs

• within the State of Ohio, or • deliverable into Ohio pursuant to PUCO

determination.» 120,000 PUCO-certified RECs generated

from within Ohio.

Eligibility and Requirements▪ All RECs and SRECs proposed pursuant to this RFP

must:» be or have been derived from In-State or All-State

PUCO-certified (or eligible to be, and will ultimately be, PUCO certified) solar or non-solar renewable energy resource generating facility(ies) as applicable;

» be or have been generated no earlier than January 1, 2011 and no later than December 31, 2013;

» be consistent with any and all applicable Ohio laws, rules and regulations, including without limitation, rules and regulations promulgated by the PUCO;

» be Delivered to FirstEnergy Ohio Utilities no later than February 14, 2014;

» be Delivered to FirstEnergy Ohio Utilities via the PJM EIS GATS platform; and

» become the sole property of FirstEnergy Ohio Utilities.

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This RFP is NOT seeking proposals for the following:• Long term

proposals for delivery of RECs or SRECs in future years

• Associated energy, capacity or ancillary services

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▪ All terms and conditions incorporated in the PSA are considered final and non-negotiable

▪ The PSA requires compliant Ohio RECs and/or SRECs (e.g., PUCO certified, PJM GATS registered)

▪ Winning Proposers must be able to meet all requirements of the PSA, and failure to do so will result in exclusion of the Proposer’s proposal from further consideration

The PSA is posted in the Supplier Documents section of the RFP Web site

PSA Overview

Firm Deliveries (Not Unit Contingent)

▪ All RECs and SRECs Delivered pursuant to the PSA executed under this RFP shall be firm and not “unit contingent”

▪ In the event a successful Proposer fails to secure the quantity of RECs and/or SRECs from the renewable generating facility that the Proposer originally planned to use to provide such RECs and/or SRECs, it remains that successful Proposer’s obligation to Deliver to FirstEnergy Ohio Utilities the quantity of RECs and/or SRECs set forth in the PSA

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Credit Application

▪ Prospective Proposers are strongly encouraged to submit a Credit Application by October 8, 2013

▪ Submitting a Credit Application does not bind a Prospective Proposer to submit a Proposal in this RFP

▪ Benefit of Submitting by October 8: Prospective Proposers who submit a Credit Application by October 8, 2013 may be provided feedback from Navigant and FirstEnergy Ohio Utilities prior to the Proposal Due Date and may have an opportunity to make any needed corrections or modifications to its Credit Application

▪ Credit applications will be accepted by FirstEnergy Ohio Utilities and Navigant until October 14, 2013» Proposers may wait and provide their credit information simultaneously with

their proposal» If credit information is provided simultaneously with its Proposal the Proposer

foregoes the opportunity to make any needed corrections or modifications

▪ Proposers who do not provide adequate credit information will be deemed ineligible and their Proposals will not be considered for further evaluation

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Credit Requirements: Applications Due

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Credit Requirements: Example Calculations

Ex 1. Notional Value Less than

$250,000

Ex 2. Notional Value More than $250,000 and Not Adequately

Rated

Ex 3. Notional Value More than $250,000

and Adequately Rated

2013 RECs Proposed 10 100,000 100,000

REC Price Proposed (EXAMPLE ONLY, NOT INDICATIVE OF MARKET PRICES)

$5.00 $5.00 $5.00

Delivery Years (2013 Only) 1 1 1

Total Notional Dollar Value $50 $500,000 $500,000

Security Required (5%) None $25,000 None

▪ In the table below, there are three examples of credit requirements for the purpose of exemplifying the calculations

▪ The volume and price in the table below are examples only and are not intended to represent market prices or expectations

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Credit Requirements: Posting of Security

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▪ To participate in the RFP, a Proposer must meet the qualification requirements as detailed and must submit a complete Proposal

▪ All proposals must be submitted by email and received by Navigant no later than 3:00 pm EDT on October 14, 2013

▪ To submit a proposal, send one email to rfp@navigant.com which includes all of the following completed documents:» Credit Application (either submitted by October 8, 2013 or

simultaneously with the Proposal);» Qualification Application; » Pricing Proposal(s); and» Confirmation of PSA

▪ Note: Faxed or hard copy proposals will not be accepted

All documents and forms listed above are posted in the Supplier Documents section of the RFP Web site

Proposal Submittal Requirements

Qualification Application

▪ The Qualification Application is available on the RFP Web site▪ As previously stated, FirstEnergy Ohio Utilities is not seeking

“unit contingent” SRECs, however Proposers must include a detailed description of the source of the RECs and/or SRECs proposed in its Qualification Application, as follows:» Proposers who are proposing to sell RECs and/or SRECs from one

or more specific solar or renewable energy generating facility(ies) , must provide the required facility information as applicable;

» Proposers who are proposing to sell RECs and/or SRECs from a portfolio, aggregation, brokerage or other means must describe in detail its proposed means to acquire the rights to REC and/or SRECs in the quantities proposed in its Proposal

▪ The Qualification Application has been developed as the form to provide the required source information to FirstEnergy Ohio Utilities

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Pricing Proposal

▪ The Pricing Proposal form is available on the RFP Web site in Microsoft Excel format

▪ All Pricing Proposals shall specify the total number of RECs and/or SRECs proposed for Delivery to FirstEnergy Ohio Utilities

▪ Proposers may submit Multiple Pricing Proposals provided that each such Pricing Proposal offers different REC and/or SREC Quantities at different prices and such Multiple Pricing Proposals must be structured in a way that, should all Pricing Proposals be selected, the Proposer is capable of Delivering the total REC and/or SREC Quantities proposed

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▪ All Proposers must provide a Confirmation of PSA form signed by an authorized representative, which confirms the understanding that:» Proposers are able to meet all requirements of the PSA;

and » All terms and conditions incorporated in the PSA are

considered final and non-negotiable

The Confirmation of PSA is posted in the Supplier Documents section of the RFP Web site

Confirmation of PSA

Evaluation & Selection: Phase 1 Qualification

▪ Phase 1 is a proposal qualification evaluation to determine whether the Proposal and its proposed RECs and/or SRECs are eligible and meet the requirements set forth in the RFP

▪ In addition, Proposals must demonstrate that: » the Proposer has or will own the right to all RECs and/or SRECs

associated with their Proposals in their entirety and be capable of transferring undivided rights to those RECs and/or SRECs to FirstEnergy Ohio Utilities without restriction

» the Proposer accepts all terms and conditions of the PSA without exception

▪ During Phase 1, Navigant may, but is not obligated to, request additional information and materials from any Proposer for qualification of its proposal

▪ All Proposers will be notified of their qualification status by October 16, 2013

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Evaluation & Selection: Phase 2 Proposal Sorting

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Only pricing proposals from Phase 1 qualified bidders will be evaluated during Phase 2. Phase 2 is the sorting of qualified pricing proposals to determine what proposals will be awarded

Step 1▪ All qualified proposals, subject

to credit requirements, will be divided by category and sorted by Proposed price

▪ Any SRECs/RECs not selected in one category will be considered in other eligible category(ies)

▪ Larger volume proposals will be preferred if there are competing proposals at the same price

Step 2• The second step is comparing the total

notional dollar value of each Pricing Proposal offered by each Proposer with the total credit available to that Proposer, based on the Proposer’s credit rating and/or the party’s acceptance of an agreement to post appropriate Security

• If the total notional dollar value of the Proposal offered by a Proposer exceeds the Proposer’s credit limit, then Navigant will only consider the Proposer’s proposed RECs or SRECs up to the amount of its credit limit▪ FirstEnergy Ohio Utilities reserves the right to limit the total amount from

any one party in order to preserve a diversity of suppliers▪ FirstEnergy Ohio Utilities reserves the right to select more RECs in a

particular REC Type category based on the sort order▪ Proposers will be notified of any proposal award on October 17, 2013

▪ Immediately following Phase 2, FirstEnergy Ohio Utilities shall prepare a PSA incorporating information from the Winning Proposals

▪ PSA(s) will by transmitted to the Winning Proposers via email and hard copy» Within one (1) business day of receipt: Winning Proposer shall

execute and return the applicable PSA to FirstEnergy Ohio Utilities via an email with a PDF of the executed PSA; and

» Within three (3) business days of receipt: Winning Proposer shall execute and return a hard copy (printed copy) PSA to FirstEnergy Ohio Utilities

▪ Proposers who have particular difficulties with these requirements may make special arrangements with Navigant

▪ Failure of a Winning Proposer to execute the applicable PSA via PDF and return email within the timeframe set forth above (or otherwise agreed upon with Navigant) may result in the disqualification of such proposal

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The execution of a PSA by both FirstEnergy Ohio Utilities and the Proposer will constitute a “Winning Proposal”

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Target Schedule of Events

Activity Date

Issue RFP September 12RFP Webinar (11:00 AM EDT) September 19FAQ Deadline September 26FAQ Responses Posted on Web site October 2Credit Information Preferred Due Date October 8Proposals Due Date (3:00 PM EDT) October 14Notification of Proposal Qualification October 16Notification of Award October 17Executed PSAs (PDFs) due back from Successful Proposers October 18Hard copy PSAs due back executed from Successful Proposers

October 22

Posting of Security (if applicable) October 22

PUCO Certification Process

▪ All proposed RECs or SRECs must be produced from PUCO certified facilities prior to Delivery to FirstEnergy Ohio Utilities

▪ To become a PUCO certified facility, a Proposer must first follow the application instructions and complete the online application for Certification of a Renewable Energy Resource Generating Facility available at the commission’s Web site: http://www.puco.ohio.gov/puco/index.cfm/puco-forms/renewable-energy-resource-generating-facility-application-for-certification/

▪ All RECs or SRECs must be transferred using PJM EIS GATS, which requires its own separate registration

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Questions about the RFP

▪ Questions about the RFP should be submitted by potential Proposers to Navigant via email to rfp@navigant.com

▪ Questions can be submitted on or before FAQ Deadline of September 26, 2013 at 5:00 PM EDT

▪ Responses to questions will be posted anonymously on October 2, 2013 on the FAQs section of the RFP Web site

▪ While Navigant and FirstEnergy Ohio Utilities will review and attempt to answer all questions, Navigant and FirstEnergy Ohio Utilities reserve the right not to answer any question

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Questions?

▪ Remember: Submit via “chat” function

▪ “Chat” function will remain open for 10 minutes

▪ Answers will be posted on the RFP Web site

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All correspondence pertaining to the RFP should be directed through the RFP Web site or through Navigant

Submit all questions via email to rfp@navigant.com or call the Navigant Hotline at (516) 876-4036

All correspondence pertaining to the RFP should be directed through the RFP Web site or through Navigant

Submit all questions via email to rfp@navigant.com or call the Navigant Hotline at (516) 876-4036

KeyC O N T A C T S

©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.

KeyC O N T A C T S

©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.

KeyC O N T A C T S

©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.

KeyC O N T A C T S

©2012 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.

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ENERGY

Dan BradleyDirector646.227.4835 New York City, New Yorkdbradley@navigant.com

Dan BradleyDirector646.227.4835 New York City, New Yorkdbradley@navigant.com