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FirstEnergy submits filing with FERC to clear way for completion of $1.5 billion power plant purchase by NRG Energy

July 12, 2002 -- In response to concerns raised in a filing with the Federal Energy Regulatory Commission (FERC) by NRG Energy, FirstEnergy Corp. on Friday submitted a filing with FERC requesting additional clarification of a condition imposed in a July 2 FERC order that approved FirstEnergy's $1.5 billion sale to NRG of four Ohio coal-fired power plants located along Lake Erie.

The filing states that the City of Cleveland and American Municipal Power -- Ohio support FirstEnergy's commitment to assume all responsibilities imposed on NRG by the order related to protecting the City's transmission access in the event that any of the plants are taken out of service.

FirstEnergy's filing further clarifies that it will retain all obligations originally included in a 1997 merger settlement agreement between FirstEnergy and the City of Cleveland, even after the plants are transferred to NRG.

In the filing, FirstEnergy indicated that it would continue to evaluate, avoid and eliminate any adverse impact in the event that NRG takes the plants out of service, as well as notify the City if NRG plans to do so. In addition to the filing, FirstEnergy also advised NRG directly that it will continue fulfilling these obligations, including notification to the City.

FirstEnergy believes that its filing resolves issues raised in the NRG filing with FERC recently, and that the companies are now positioned to complete the transaction under terms of their November 29, 2001, sales agreement.

FirstEnergy is a registered public utility holding company headquartered in Akron, Ohio. Its electric utility subsidiaries comprise the nation's fourth largest investor-owned electric system, based on serving 4.3 million customers. Its subsidiaries and affiliates are involved with the generation, transmission and distribution of electricity; exploration and production of oil and natural gas; transmission and marketing of natural gas; energy management and other energy-related services.





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