Strategic Value of Risk Management

Dmitriy Borovik, Moderator Managing Director

Deloitte & Touche LLP

Felicia Brown Vice President Risk Management and Chief Risk Officer

AVANGRID, Inc.

John W. Judge Vice President, Corporate Risk and Chief Risk Officer

First Energy

Guru Nadkarni Vice President, Strategic Planning

Consolidated Edison

The Power & Utilities sector is undergoing a dramatic transformation

• Low or no load growth

• Changing regulatory environment, increasingly stringent regulations

• Ageing infrastructure

• Changing customer expectations and behavior

• Increasing cyber threats

• Technology changing the energy mix

• Increased focus on brand and reputation

• More frequent and unprecedented crises/catastrophic events (i.e. global warming)

• Portfolio diversification

• Pressure to do more with less

Panelist introductions

Guru Nadkarni

ConEdison

Felicia Brown

AVANGRID

John Judge

FirstEnergy

Felicia Brown

VP Risk Management & Chief Risk Officer AVANGRID, Inc.

Panel: Strategic Value of Risk Management

AVANGRID – Merger of Iberdrola USA and UIL Creates Major U.S. Energy Co.

AVANGRID Organization Structure

AVANGRID Highlights

AVANGRID - Our Focus for 2016 - 2020

9

FirstEnergy: Strength in Our Diversity and Scale

Utilities

■ Approximately 6M customers

■ One of the largest contiguous

service territories in the U.S.

covering 65,000 square miles

Transmission

■ One of the largest

transmission systems in PJM

■ 24,200+ transmission miles

■ Significant opportunity for

growth

Competitive Operations

■ One of the cleanest

generation fleets in the U.S.

■ Long generation vs. sales

strategy

■ Focused on reducing overall

business risk

OH

VA

WV

PA

MD NJ

MI

IN IL

Jointly Owned Plant

Regulated Plants

Competitive Generating Plants

230, 345 and 500 kV Transmission

Lines

Competitive retail footprint

Utility footprint

10

Promote transparency

Strengthen balance sheet

Maintain investment-grade credit metrics at

Business Units and improve metrics at FE Corp.

FirstEnergy: Long-term Value to Shareholders

Regulated Competitive

Stability Growth

Grow investments to

enhance customer service

Stable, risk-mitigated

core business

Self-supported with positive

cash flow expected through

2018 annually

Financing activities aligned

with growth plans Financial

Panel Q&A

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