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

John Judge

AVANGRID

FirstEnergy

Panel: Strategic Value of Risk Management Felicia Brown VP Risk Management & Chief Risk Officer AVANGRID, Inc.

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

AVANGRID Organization Structure

AVANGRID Highlights

AVANGRID - Our Focus for 2016 - 2020

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

MI

PA

Transmission ■ One of the largest transmission systems in PJM

IL

IN

OH MD

■ 24,200+ transmission miles ■ Significant opportunity for growth

NJ

VA WV

Competitive Operations

Jointly Owned Plant

■ One of the cleanest generation fleets in the U.S.

Regulated Plants

■ Long generation vs. sales strategy

230, 345 and 500 kV Transmission Lines

■ Focused on reducing overall business risk

Competitive retail footprint

Competitive Generating Plants

Utility footprint

9

FirstEnergy: Long-term Value to Shareholders

Regulated

Competitive Stability

Growth Grow investments to enhance customer service

Stable, risk-mitigated core business

Financing activities aligned with growth plans

Financial

Self-supported with positive cash flow expected through 2018 annually

Promote transparency Strengthen balance sheet Maintain investment-grade credit metrics at Business Units and improve metrics at FE Corp. 10

Panel Q&A

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