Potomac Edison Preliminary Energy Efficiency and Conservation Programs

Potomac Edison Preliminary Energy Efficiency and Conservation Programs 2012 -2014 April 14, 2011 Preliminary Draft for Stakeholders

Agenda Background Program Development Preliminary Residential Program Overview Preliminary Draft for Stakeholders

Background: Current Programs and Performance Preliminary Draft for Stakeholders

Plan Development Programs and Measures were identified based on existing Em. Power and First. Energy program experience and Stakeholder proposals The following proposed Residential Programs are initial drafts; development efforts are ongoing: – Current program projections are falling short of the 2015 Em. Power Maryland goals – The Company is working hard to leverage program successes of First. Energy affiliates as we continue to refine 2012 – 2014 Empower MD Programs – Modeling Assumptions continue to be refined and validated (participation and growth rates, energy and demand savings, cost inputs, budgetary values, etc. ) – Potomac Edison looks forward to working collaboratively to improve the 2012 – 2014 Empower MD Programs Preliminary Draft for Stakeholders

Preliminary Residential Programs: Residential Appliance Turn-In Program Description – A program that provides incentives to customers to remove and permanently retire older, inefficient appliances that are in working order. Eligible Measures Include: – Refrigerator Recycling – Freezer Recycling – Room Air Conditioner Recycling Implementation Strategy – The Company intends to contract with one or more implementation contractors to market and implement the program, and track program data. – Regional roll-out and community outreach activities will be targeted to support program efficiency and success. Preliminary Draft for Stakeholders

Preliminary Residential Programs: Residential Energy Efficient HVAC Equipment Program Description – A program that provides incentives to residential customers for the implementation of cost effective, high efficiency HVAC and water heating measures. Eligible Measures Include: – HVAC (Air and Ground Source Heat Pumps, Central Air Conditioners, Furnace Fans, HVAC Maintenance) – Water Heating (Energy Efficient, Heat Pump, Solar) Implementation Strategy – The Company intends to contract with one or more implementation contractors to market and implement the program, and track program data. – Program services will be delivered to customers by qualified local contractors identified by the implementation vendors or manufacturers of eligible equipment. Preliminary Draft for Stakeholders

Preliminary Residential Programs: Residential Energy Efficient Products Program Description – A rebate program that encourages the purchase of lighting and certain appliances, that meet or exceed Energy Star or other efficiency ratings, through mail-in rebates and point-of-sale discounts (where applicable). Eligible Measures Include: – Lighting (CFLs, Torchiere Floor Lamps) – Appliances (Clothes Washer, Clothes Dryer, Dehumidifier, Freezer, Refrigerator, Room Air Conditioner) – Other (Programmable Thermostat, Variable Speed Pool Pump) Implementation Strategy – The Company intends to contract with one or more implementation contractors to market and implement the program, and track program data. – The Company envisions that various delivery channels and community based initiatives will be employed over the life of the program based on target customers, new opportunities, changing conditions, etc. – This program involves developing educational materials on the proper use and selection of high efficiency lighting along with product discounts, coupons and price buy-downs to incentivize customers to purchase CFLs and other qualifying EE products. Preliminary Draft for Stakeholders

Preliminary Residential Programs: Residential Home Performance Program Description – A program that targets overall home performance through energy education and the installation of energy efficient measures. Includes home energy audits and provides incentives to customers who install select recommended measures. Eligible Measures Include: – Audits (Online, Checkup) – Giveaways (CFLs) – Home Performance with Energy Star (Comprehensive) Implementation Strategy – The Company intends to contract with one or more implementation contractors to market, implement, and track Program data for both the Checkup and Whole Building Comprehensive audits. – The implementation contractor will coordinate Program services through a pool of local contractors to deliver services to customers. Preliminary Draft for Stakeholders

Preliminary Residential Programs: Low Income Program Description – A program that targets overall home performance through energy education, audits and weatherization services, and providing energy efficiency measures. Eligible Measures Include: – Audits (Checkup with Direct Install measures) – Energy Efficiency Kits – Weatherization Services Implementation Strategy – Program services will be delivered by the Department of Housing and Community Development (DHCD) Local Weatherization Agencies (“LWAs”) coordinated or augmented by additional private vendors as needed to enhance the capacity of DHCD agencies and contractors. – The Company will give specific consideration for program coordination with DHCD Weatherization Assistance Program as well as contract with a Program Administrator. The Program Administrator will handle contractor and customer issues and coordination of providing program services with home auditing contractors. Company staff will also be available to address customer and/or contractor issues as needed. Preliminary Draft for Stakeholders

Program Overview Preliminary Draft for Stakeholders

Questions Preliminary Draft for Stakeholders

Appendix Preliminary Draft for Stakeholders

Program Summary Information Preliminary Program Impacts (2012 -2014) Preliminary Draft for Stakeholders

Program Summary Information Preliminary Program Budgets (2012 -2014) Preliminary Draft for Stakeholders

Program Summary Information Preliminary TRC Results Preliminary Draft for Stakeholders

Program Summary Information Preliminary Incentives Preliminary Draft for Stakeholders