Nuclear, O&M

Davis-Besse repairs to cost about $80 million for year

July 25, 2003 — FirstEnergy Corp. has updated schedule and cost estimates associated with efforts to return its Davis-Besse Nuclear Power Station to safe and reliable service.

Final decisions have been made on modifications to the high-pressure injection pumps, which is expected to result in the plant’s being available for restart in the fall. The Nuclear Regulatory Commission continues its inspection activity and will make a final determination on when the plant will return to service.

The modifications utilize proven experience from similar pumps in France and will provide additional safety margin, based on extensive preliminary testing done by FirstEnergy.

The pump modifications and numerous other safety enhancements made to the plant will increase 2003 incremental operating and maintenance expenses — initially estimated at $50 million for the year — to approximately $80 million. Through June 30, such expenses for 2003 totaled $58 million.

Replacement power cost estimates for Davis-Besse remain unchanged at $15 million per month for the non-summer months and $20 to $25 million per month for the summer months of July and August. Through June 30, these costs for 2003 totaled $93 million. On-peak replacement energy for the expected length of the Davis-Besse outage is fully hedged.

Davis-Besse is operated by the FirstEnergy Nuclear Operating Company, a subsidiary of FirstEnergy. FirstEnergy is a registered public utility holding company headquartered in Akron, Ohio.