Report of the

M t l i t Edi CM t lit Edi CMetropolitan Edison Company Metropolitan Edison Company Sustainable Energy FundSustainable Energy Fund

and the

Pennsylvania Electric Company Pennsylvania Electric Company S t i bl E F dS t i bl E F dSustainable Energy FundSustainable Energy Fund

December 7, 2010

Fund PurposesFund PurposesFund PurposesFund Purposes

1. The development and use of renewable and pclean energy technologies;

2. Energy conservation and efficiency;3. Sustainable energy businesses; and4. Projects that improve the environment

in the Metropolitan Edison Company/in the Metropolitan Edison Company/Pennsylvania Electric Company service territories as they

l t t th i ’relate to the companies’ transmission and distribution facilities.

BoardMr. Derek C. James The Dome-Tech Group

Mr. Scott Gebhardt Pennsylvania Public Utility CommissionCommission

Mr. Samuel E. Hepfer Jr. South Central Community Action Programs, Inc.

Mr. Brian M. Vayda American Powernet

Mr. Edward Miller Northwest Savings Bank

Mr. John Ubinger, Jr. Pennsylvania Environmental Council

Mr. Timothy C. Burdis PJM Environmental I f ti S iy Information Services

Mr. Frank D. Plank Knouse Foods Cooperative

Ms. Marybeth Smialek FirstEnergyy gy

StaffStaffRichard MappinRichard Mappin

Berks County Community Foundation

Mike KaneMike KaneCommunity Foundation

for the Alleghenies

Scott GebhartdPennsylvania Public Utilities Commission

Financial ApprovalsFinancial ApprovalsFinancial ApprovalsFinancial ApprovalsFrom June 30, 2009 – December 31, 2010the funds approved financing totaling $2 285 500the funds approved financing totaling $2,285,500.

Of that total, $160,500 was authorized for 8 t d $2 125 000 th i d f 68 grants and $2,125,000 was authorized for 6 loans/investments.

Si i ti M t Ed/P l SEF h dSince inception, Met-Ed/Penelec SEF has approved • 93 grants totaling $1,860,327• 41 loans totaling $18,542,553 g , ,• 3 equity investments totaling $1,600,000.

Board Focus:GrantsGrants

oa d ocus•Nonprofits•Educational organizations•Projects that may lead to lending/investing•Projects that may lead to lending/investing • Albright College-$25,000-Assist with Leed Certification• City of Reading Parks & Recreation-$25,000-Solar lighting at 2nd

& Ol P k& Oley Park• Wind Industry Conference-$5,000-Community Wind Conference• New Tech Wind, Inc-$25,000-Research and Planning Grant• Evergreen Conservancy-$5,500-Small wind/micro turbine• Own Energy Landowners Group-$5,000-Development of a

community wind projecty p j• Renewable Manufacturer’s Gateway-$50,000-Supply Chain

Development• St Francis University-$20 000-Community Wind CenterSt. Francis University $20,000 Community Wind Center

• Berks County Community Foundation-$500,000-Green

Loans/InvestmentsLoans/Investments

Building Loan• eCap Network-$300,000-Energy Efficiency Program• eCap Network-$100,000-Energy Efficiency Program-Equity p $ , gy y g q y• First Nation Wood Pellets-$224,000-Biomass• Lacey Electric-$101,000-Solar Energy Installation• New Tech Wind Inc $1 000 000 Single Gearless Wind Turbine• New Tech Wind, Inc-$1,000,000-Single Gearless Wind Turbine

eCap Network is a start-up that helps to navigate the complexities of energy efficiency and renewable energy opportunities. eCap identifies sustainable energy solutions thatopportunities. eCap identifies sustainable energy solutions that maximize energy and resource efficiencies.

eCap Network takes organizations through the following process:

• Meets with the organization to determine its energy needs.• Performs an energy audit of the organization.• Presents a detailed report of an estimated project cost, as well

as a time line.Outlines any available funding or investments available for the• Outlines any available funding or investments available for the project.

• Assists the organization in financing the project. • Gives a report to the organization with the environmental andGives a report to the organization with the environmental and

economic impact of the project.

T t l T t l

Phase Projects

Electrical Savings (kWh)

Total Energy Savings (Btu)

Total Energy Savings

($)

Total Carbon

Reduction (MtCO2)

Equivalent Vehicle

Reduction

Energy Audits 17 6,500,000 45,950,000,000 $600,000 4,630 886

Project Developmen

t6 2,700,000 17,360,000,000 $200,000 1,900 365

Snapshot of eCap Energy Projectsp p gy jTo learn more, visit our website: www.ecapnet.com

Community Wind Community Wind

St. Francis UniversitySt. Francis University--$20,000 grant to match $100,000 $20,000 grant to match $100,000 DOE Grant to continue SFU Community Wind ProgramDOE Grant to continue SFU Community Wind ProgramDOE Grant to continue SFU Community Wind ProgramDOE Grant to continue SFU Community Wind Program

SFU Community Wind FactsSFU Community Wind Facts

• 2 000 people schools municipalities2,000 people, schools, municipalities, and businesses educated annually.

• 12 anemometer locations currently• 12 anemometer locations currently.• 3 projects underway totaling $65

illi i it l i t t d 163million in capital investment and 163 jobs.*

*JEDI analysis model

N T h Wi d INew Tech Wind Inc.

Wind TurbinesWind Turbines American Eagle 1.5 and 2.0

New Tech Wind Overview

• New Tech Wind (NTW) – Is an American/Germany technology partnership patent pending 100% manufactured in the USApartnership, patent pending, 100% manufactured in the USA.

• Niche Wind Markets – NTW American Eagles 1.5 and 2.0 MW, Windpower Systems cost-effectively harvest wind in areas where conventional 70-80 meter towers can’tmeter towers can t.

• New heights – The American Eagle towers are 100 meters in height with 1.5 – 2.0 MW Gearless direct drive Generators. This lowers weight, reduces initial and maintenance costs while increasing up timereduces initial and maintenance costs, while increasing up-time.

• Optimized manufacturing, high output generators, result in ROI’s of 4-7 years depending upon tax credits, grants, wind conditions and electric ratesrates.

• New Tech Wind towers combine several transformational technologies into a new wind turbine with an estimated 20% lower cost per KW output.

Why Taller Wind Towers Make Sense

• Conventional 100-m towers in the U.S. are relatively costly and in many instances theyrelatively costly and in many instances they nearly 50% above the cost of an 80-m tower.

• The additional generation capacity from a 2.0 MW g p yturbine at 100 m versus 70 m can average 1 million kW/hr per year more, adding some $70,000/year per turbine in revenue.

• This often equates to a payback of five to seven years, or an additional 20 million kW/hr potential over the life of the turbine.

• This assumes a value of $1.2 million in additional revenue per turbine or $48 million additional revenue over 20 years for a 100 MW wind farm.y

RLE & Penn State U; Tech Transfer Advantage

• RLE delivers innovation in wind technologies - far from the production and supply chain pressures RLE cooperates with leading researchand supply chain pressures. RLE cooperates with leading research institutes to solve technological problem areas for the wind industry.

• Penn State University’s light weight, direct drive generator technology, manufactured by a Hyundai division reliably cuts weight and costsmanufactured by a Hyundai division, reliably cuts weight and costs.

• Based on modern 3D-CAX capability, RLE develops innovative technological solutions and support the work of wind turbine manufacturers and suppliers to help accelerate innovation cyclesmanufacturers and suppliers to help accelerate innovation cycles.

• For the development of technological innovations for large wind towers, RLE uses successes and concepts of production processes, materials and technology from the automotive technology industriesmaterials and technology from the automotive technology industries.

• RLE and Penn State University technologies and capabilities have enabled New Tech Wind to be a leader from the outset.

Green Building All iances Green Building All iances and Memberships and Memberships

• Pittsburgh Green Building AllianceTo establish regional affiliates in the Laurel Highlands Region and in

Northwestern Pennsylvania• Steering Committees active• Steering Committees active• Web conferencing for continuing education underway

• Green Building Association of Central Pennsylvania• Ongoing membership• Ongoing membership• Steering committee position

• Other memberships• Biomass Working Group• Biomass Working Group• Sustainable Pittsburgh