December 12, 2000

Supplier Meeting

Parma Aggregation Group

Subsidiary of FirstEnergy created to provide independent energy consulting services

Retained by Parma as Aggregation Services Provider

– Education Process– Certification Process– Handle the administration of RFP for Supplier Selection– Developed strategy for securing MSG capacity

Contract will run as long as the contract for Electric Generation Supplier

Who is E Group?

Objective of Parma Aggregation Effort

Create savings for Members of the Aggregation Group Have the Program up and running with power flowing in February for

Residential Customers Provide a Consumer Friendly Aggregation Effort for Residential Customers

– No entrance or exit fees– No minimum stay provisions– Minimize billing disputes– Maximize bill payment options (how and where)– Easy access for members questions– Meet PUCO standards for Customer Service– Create opportunities for New Members to join the group, and existing Members to

leave the group Maintain absolute minimum financial risk to the City of Parma

Background

• Election on March 7, 2000, approved garnering 70% of vote Parma was Certified by the Public Utilities Commission effective

November 13, 2000 to provide governmental aggregation services Parma completed the required “Opt-Out” period for Residential

Customers on November 22, 2000. Today the Aggregation Group stands at 33,072 residential accounts The City of Parma has applied for 129.3 MW’s of MSG capacity. The Request for Proposal was issued by The City of Parma to

Certified Suppliers on December 4, 2000

Status of MSG Claim

• MSG for Residential Customers was available in an amount in excess of 129.3 MW’s at the time the Claim was made.

Arthur Andersen has not yet conducted an audit of the claim, although The E Group has been contacted by Arthur Andersen to start the process

A complaint has been filed by a Supplier with The PUCO asking that Parma be required to perform the “Opt-Out” provision again, and that Parma essentially forfeit its place in the queue for MSG.

That complaint will be on next weeks agenda at the PUCO At this point no guarantee that Parma will obtain those rights, or that

those rights will be available for February Power Flow. If access is delayed, will likely delay start of program.

Pricing Options

Assuming MSG capacity is made available – Those initially in the group– Could be available to those that subsequently join the group if it can be

secured. Price for customers assuming neither MSG or Non-MSG is secured

– In the event, MSG capacity is not made available– In the event a customer subsequently joins the group

Assuming “Non-MSG” capacity is made available– In the event, MSG capacity is not made available– In the event a customer subsequently joins the group.

Customer Migration

Residential customers can leave at any time without paying a switching fee. For each Residential customer that leaves the group, the individual allocation

of MSG will be returned to the First Energy “pool”. Customers moving into Parma will have to be with The Illuminating Company

for a minimum of one month. Not more than quarterly, The Retail Generation Supplier will need to provide

to the Aggregation Services Provider a list of customers that have “left” the “group”. The Aggregation Service Provider will obtain a customer list from the EDC, and based on a number factors, including available pricing, will conduct a Opt-Out for new residents to join the Aggregation Group.

At the end of the contract The Retail Generation Supplier will be required to provide the “existing members” to the Aggregation Service Provider.

Customer Service Issues

Description of billing, policy on billing disputes, policy on late payments and collection

Notification of selection as supplier of residents on behalf of Parma including terms and conditions of service.

Reporting to The E Group or Parma on status

Must have local Parma phone number or a toll free number for Members to call

Meet all requirements of Customer Service Plan.

Description of how telephone inquires will be handled, invoices will be prepared, collections for delinquent accounts will be addressed

Capability to collect an administrative fee on a per kwh basis to each member with potential to split payments to The E Group and Parma

Provide a 24-hour automated telephone message instructing callers to report any service interruptions to CEI