Allegheny Power 2013 Annual Report Download - page 28

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FirstEnergy remains actively engaged in the federal and state debate over future environmental requirements and legislation by
actively working with policy makers and regulators to develop fair and reasonable requirements, with the goal of reducing emissions
while minimizing the economic impact on customers. Due to the significant uncertainty as to the final form or timing of a significant
number of regulations and legislation at both the federal and state levels, FirstEnergy is unable to determine the potential impact
and risks associated with all future environmental requirements. On December 30, 2011, CSAPR was stayed by the U.S. Court of
Appeals for the District of Columbia Circuit and was ultimately vacated by the Court on August 21, 2012. On January 24, 2013, the
EPA and intervenors' petitions seeking rehearing or rehearing en banc were denied by the U.S. Court of Appeals for the District of
Columbia Circuit. On December 10, 2013 the Supreme Court heard arguments on whether to reinstate the EPA's rule to
reduce emissions of SO2 and NOx, which is being challenged by several states and industry groups. The Court has ordered EPA
to continue administration of CAIR until it finalizes a valid replacement for CAIR. The new MATS were finalized at the end of 2011,
which contributed to FirstEnergy's decision to deactivate some of its older coal-fired generation plants. The total MATS compliance
cost for the remaining fleet is estimated at $465 million with $240 million at the competitive fleet and $225 million at the regulated
fleet.
FirstEnergy also has a long history of supporting research in distributed energy resources. Distributed energy resources include
fuel cells, solar and wind systems or energy storage technologies located close to the customer or direct control of customer loads
to provide alternatives or enhancements to the traditional electric power system. FirstEnergy is testing the world's largest utility-
scale fuel cell system to determine its feasibility for augmenting generating capacity during summer peak-use periods. Through a
partnership with EPRI, the Cuyahoga Valley National Park, the Department of Defense and Case Western Reserve University, two
solid-oxide fuel cells were installed as part of a test program to explore the technology and the environmental benefits of distributed
generation.
FirstEnergy is also evaluating the impact of distributed energy storage on the distribution system through analysis and field
demonstrations of advanced battery technologies. FirstEnergy's EasyGreen® load-management program utilizes two-way
communication capability with customers' non-critical equipment, such as air conditioners in New Jersey and Pennsylvania, to help
manage peak loading on the electric distribution system. FirstEnergy has also made an online interactive energy efficiency tool,
Home Energy Analyzer, available to our customers to help achieve electricity use reduction goals.
RISKS AND CHALLENGES
In executing our strategy, we face a number of industry and enterprise risks and challenges. See ITEM 1A. RISK FACTORS for a
discussion of the risks and challenges faced by FirstEnergy, FES and their subsidiaries.