1. Case No. 9154 2012-14 EmPOWER Maryland Stakeholder Presentation Proposed BGE Energy Efficiency Programs April 14, 2011 1

2. BGE's Overall Approach to Program Development  New programs are built on BGE’s current success but are also designed for future success  Best practices were considered as well as input received from:  Previous stakeholder sessions and separate MEA input  Vendors who have reached out to BGE  Trade Allies during trade group meetings  Customers (e.g. focus groups, events, etc.)  Energy savings goals are aggressive but more realistic given current information  Current economic environment was taken into consideration when setting goals 2

3. BGE's Overall Approach to Program Development (continued)  Every program includes improvements and enhancements  BGE used the Total Resource Cost (TRC) to determine cost effectiveness, proposing programs with a TRC of 1 or higher (excluding Limited Income) with relatively few measures not meeting TRC targets  BGE rebates targeted to cover 50%-75% of retrofit / incremental cost  BGE used data assumptions (e.g. hours of use, TRM, etc.) that will be effective with its Q2 2011 reporting 3

4. BGE's Overall Approach to Program Development (continued)  BGE has enhanced the individual program marketing budgets wherever the TRC permits  BGE is open to input and suggestions but are subject to modifications BGE chooses to make  BGE is dedicated to making all of these programs successful and doing whatever we can to gain the greatest impacts in a cost effective manner  BGE is open to tweaking incentives to be consistent with other utilities 4

5. Lighting and Appliances Program - Description  Instant price mark-downs through partnerships with manufacturers and retailers  SKU-by-SKU basis with MOU’s  Instant mark-downs and some coupons  CFL standard and specialty bulbs/fixtures – ($1.30 - $10)  Rebates on ENERGY STAR® qualified appliances  Partnerships with key area retailers  ENERGY STAR clothes washers - $50  ENERGY STAR refrigerators - $50  ENERGY STAR Window A/C - $25  Refrigerator/Freezer Recycling - $50 5

6. Lighting and Appliances Program - Enhancements  SSL or LED Lighting lamps/fixtures – ($10-$30)  Appliances  Dehumidifiers - $25  Heat Pump Water Heaters - $300  Consumer Electronics  TV’s, Computer Monitors, Set Top Boxes – ($10-$30)  Enhanced customer convenience in scheduling pickup for refrigerator/freezer recycling 6

7. Lighting and Appliances Program - Implementation  Assume impact of EISA 2007 begins in 2012  Continue and expand the relationship with 300+ area retailers  Adjusting messages to educate customers on enhancements - LED’s, HPWH, etc.  In-store Brochures/POP  Online advertising (text and banner ads)  Cross-selling with other programs (e.g. Quick Home Energy Check-Up, Refrigerator Rebate)  General Awareness (e.g. strategic partnerships, e-mail update, BGE Connections)  Retailer promotions (Sears circulars, in-store display, etc.) 7

8. Lighting and Appliances – Savings, Participants, Measures, Budget and Cost Effectiveness Tests ENERGY STAR Products201220132014Total Annual MWh Savings142,476136,984120,860400,321 Annual MW Savings21.221.822.465.5 Participants904,480934,600961,8502,800,930 Measures3,454,3003,559,3003,661,40010,675,000 Total Program Costs$11,565,812$11,709,329$12,256,161$35,531,302 TRC Ratio3.76 PAC Ratio5.83 RIM Ratio0.59 Participant Test Ratio9.82 Societal Test Ratio 4.43 8

9. Residential Retrofit - Description  Quick Home Energy Check-up (QHEC)  Simple, observational walk-through energy audit featuring installation of key energy efficiency measures  CFLs, low-flow shower head, faucet aerators, pipe insulation and water heater blanket for electric AWH  Home Performance with ENERGY STAR (HPwES)  A comprehensive whole-house perspective including objective testing resulting in significant energy savings for homeowners 9

10. Residential Retrofit - Enhancements  Quick Home Energy Check-up  Use of Mobile Version of Beacon Home Energy Advisor TM (HEA)  Faster electronic delivery of audit  More actionable data and more easily transferrable to HPwES  Increase the capacity and diversity of contractors  Home Performance with ENERGY STAR  Closely monitor evolution of HPwES (moved from EPA to DOE)  Double the incentive percentage from 15% to 30% of measure cost  Up to $1,900 in total rebates (not including HVAC)  Residential Retrofit  Increase direct install measures for each job  Close customer perception gap between QHEC and HPwES  Premier QHEC 10

11. Residential Retrofit - Implementation  TV spots (15 and 30 second)  Radio  Direct Mail  Cross promotion of programs  Email campaigns  Community outreach  Out of home – billboards, transit, etc.  Testimonials  Contractor tools and materials  Quarterly contractor meetings and newsletters 11

12. Residential Retrofit – Savings, Participants, Measures, Budget and Cost Effectiveness Tests Residential Retrofit201220132014Total Annual MWh Savings7,3849,1059,64726,136 Annual MW Savings1.11.51.84.5 Participants12,61215,51616,67544,803 Measures174,656215,999233,985624,640 Total Program Costs$4,868,782$6,302,072$7,478,523$18,649,377 TRC Ratio1.00 PAC Ratio1.09 RIM Ratio0.48 Participant Test Ratio2.51 Societal Test Ratio 1.20 12

13. ENERGY STAR New Construction – Description/Enhancements  Accelerate the market penetration of ENERGY STAR qualified new homes via strong partnerships with participating builders and HERS raters  Continue training/implementation of Version 3 requirements BGE ENERGY STAR for New Homes Program (with Version 3 Guidelines) (Homes permitted after 1/1/2011) Tier 1HERS Index ≥ 75$1,000 Tier 2HERS Index ≥ 70$1,300 Tier 3HERS Index ≥ 65$1,600 13

14. ENERGY STAR New Construction - Implementation  Retain current builder participants and continuously expand the number of homebuilders participating  Strong account management strategy  Technical and sales training plan for homebuilders  Online Advertising  Strategic Partnerships and earned media  Home Builders Association of Maryland  Print advertising in trade magazines (MD New Homes/Mid- Atlantic Builder)  Radio 14

15. ENERGY STAR New Homes – Savings, Participants, Measures, Budget and Cost Effectiveness Tests Residential New Construction201220132014Total Annual MWh Savings2,7953,2423,6899,726 Annual MW Savings1.01.11.33.4 Participants1,2501,4501,6504,350 Measures1,2501,4501,6504,350 Total Program Costs$2,429,465$2,684,491$2,934,229$8,048,185 TRC Ratio1.03 PAC Ratio2.56 RIM Ratio0.78 Participant Test Ratio1.07 Societal Test Ratio 1.52 15

16. Limited Income Energy Efficiency Program - Description  Whole-house energy efficiency upgrades to income qualified customers  BGE adopted a direct-delivery model in which Building Performance Institute (BPI) certified contractors were hired to conduct audits, install measures based on cost-effectiveness, energy savings and health and safety requirements, oversee the installation of work, and run test-outs and inspections of projects when completed  LIEEP is administered through software solutions that enable efficient process flow from cradle to grave, including customer intake and qualification; audit referral and scheduling; audit data collection and energy analysis; and project reporting and invoicing 16

17. LIEEP - Enhancements  Ongoing collaboration with the Maryland Weatherization Assistance Program (WAP)  Currently subcontracting with CAN Connects  BGE will be adding a specific sub-program to address processes, costs associated with better coordination with Central Maryland weatherization agencies  RFP to WAPs specific to appliance and furnace replacements  Increased Efficiencies in Program Data Collection and Reporting  Beacon Home Energy Advisor (HEA) on mobile devices, beginning with iPads  Expansion of measures – Heat Pump Water Heaters 17

18. LIEEP - Implementation  Ongoing coordination with agencies (address confidentiality issues with sharing customer lists)  Direct mail  Outbound telemarketing to support direct mail  More thorough prequalification efforts to streamline customer signup process and direct mail approach  Email outreach to eligible customers  Out of home- Billboards, bus stands, transit, etc.  Community outreach  Public relations and testimonials to facilitate referrals 18

19. LIEEP – Savings, Participants, Measures, Budget and Cost Effectiveness Tests Limited Income Energy Efficiency Program (LIEEP)201220132014Total Annual MWh Savings6,1766,1905,99318,359 Annual MW Savings1.6 4.8 Participants2,7502,800 8,350 Measures30,57331,129 92,830 Total Program Costs$10,416,260$10,520,120$10,440,497$31,376,877 TRC Ratio0.75 PAC Ratio0.75 RIM Ratio0.42 Participant Test Ratio1.71 Societal Test Ratio 0.96 19

20. HVAC Rebate Program - Description  Rebates to promote the installation of high efficiency HVAC equipment installed by participating contractors  Rebates for ancillary value added services including quality installations, duct sealing and tune-ups 20

21. HVAC Rebate Program - Enhancements MeasureIncentive A/C Efficiency Booster$125 Duct Sealing$300 Equipment Rebates-- CAC Tier 1$300 CAC Tier 2 (includes QI)$600 Heat Pump Tier 1$350 Heat Pump Tier 2 (includes QI)$650 Gas Furnace Tier 1$300 Gas Furnace Tier 2 (includes QI)$400 Quality InstallationIncluded in T-2 Ductless Mini-Split AC$300 Ductless Mini-Split HP$300 21  Addition of Ductless Mini- Split Air Conditioning and Heat Pump units  Integration of QI for Tier 2 CAC, Heat Pump, and Gas Furnace installations

22. HVAC Rebate Program - Implementation  Continued contractor recruitment and training  Various media vehicles including radio live reads, online banner advertising, online text advertising  Cross promotions via General Awareness and other programs using TV and radio spots, strategic partnerships, e-mail updates, BGE Connections bill stuffer  Marketing materials distributed via the website and events  BGESmartEnergy.com to generate awareness of the HVAC program whenever a customer goes to the website homepage  Continue to encourage customers to ask their HVAC contractor about the BGE HVAC rebates 22

23. HVAC Rebate Program – Savings, Participants, Measures, Budget and Cost Effectiveness Tests Residential HVAC201220132014Total Annual MWh Savings7,6477,9838,33023,961 Annual MW Savings3.53.63.810.9 Participants15,28115,94816,62247,851 Measures15,28115,94816,62247,851 Total Program Costs$6,855,302$7,090,986$7,322,509$21,268,797 TRC Ratio1.00 PAC Ratio1.74 RIM Ratio0.63 Participant Test Ratio1.69 Societal Test Ratio 1.33 23

24. Small Business Solutions - Description  A program name change from Small Business Lighting Solutions to reflect expansion of products discussed below  Focus will continue to be on lighting and lighting controls along with expectation that the majority of energy savings will come from these measures  Will continue to be a turnkey program where BGE pays 80% of the total cost  Qualified installation contractors will be selected via RFP 24

25. Small Business Solutions – Enhancements  Lighting components will be expanded to include:  Hard-wired and screw-in CFLs  Highbay fixtures and LED lighting  A new "opportunities checklist" added to the existing lighting audit  Would serve to educate and promote all EE opportunities  Incorporated into the program audit software  Administered by the energy/lighting auditors  Consists of up to 20 technologies including HVAC, Refrig., Kitchen, etc.  Follow-up for potential ESfB participation  Electric hot water measures include:  Pre rinse spray valves and low flow faucet aerators  Pipe insulation 25

26. Small Business Solutions – Enhancements (continued)  Installation of programmable thermostats for customers with electric heat:  Will attribute energy savings with this measure  Refrigeration and cooling measures  Evaporator fan motors and controls  Automatic door closers and door heater controls  Refrigerated novelty case controls  Cooler control systems 26

27. Small Business Solutions - Implementation  Program will continue to delivered through qualified installation contractors (# to be determined) that will perform the following turnkey services:  Marketing to customers within their territory  Performing all site visits and audits to identify opportunities  Presenting audits and recommendations to customer  Installing all eligible equipment accepted by the customer  Tracking all program activity via electronic database  Packaging lamps and ballast for proper disposal  Installation contractors will be trained and supported via comprehensive program including :  Training on equipment offerings and selling techniques  Training on the EPlus tracking software  Quarterly meetings and reviews on contractors performance 27

28. Small Business Solutions –Savings, Participants, Measures, Budget and Cost Effectiveness Tests 28 Small Business Solutions201220132014Total Annual MWh Savings19,32922,22925,56367,121 Annual MW Savings6.57.58.622.6 Participants1,6201,8632,1425,625 Measures1,6201,8632,1425,625 Total Program Costs$7,212,993$8,381,336$9,825,522$25,419,852 TRC Ratio2.03 PAC Ratio2.40 RIM Ratio0.85 Participant Test Ratio2.69 Societal Test Ratio 2.45

29. Energy Solutions for Business - Overview 29

30. Energy Solutions for Business - Description  Prescriptive  Prescriptive Lighting  Performance Based Lighting (Retrofit and New Construction)  Prescriptive LED  Commercial Kitchen  Commercial Refrigeration  HVAC Chillers  Unitary HVAC  Variable Frequency Drives  Commercial Plug Load  Power strips  Occupancy Sensors  Hotel HVAC Controls  Vending Mach. Controls  Custom  Standard Custom  Non –prescriptive measures  Comprehensive Systems  For existing facilities  System wide view for end of life equipment  Interaction between mechanical and electrical systems  Opportunity to right size  Enhanced rebate levels  Technical Services  Engineering support 30

31. Energy Solutions for Business - Description  New Construction  Comprehensive Design Approach  Designed for larger, more energy intensive projects in the very early design phase  Designed to encourage designers to exceed the International Energy Conservation Code  Incentive available to designers to offset additional costs  Green Building Approach  Limited to projects that achieve LEED certification  Incentives are designed to motivate LEED candidates to utilize more EE measures as a means of gaining certification  Agreement by owner/developer and design team to set an EE goal of at least 24% better than ASHRAE 90.1-2004 31

32. Energy Solutions for Business - Enhancements  Prescriptive Program Changes  Reduction in incentives for T12 retrofits  Single tier incentive strategy for HVAC measures  Expansion of Performance Based Lighting to include retrofit as well an new construction (new code requirements)  Addition of Commercial Plug Load  Custom Program Simplification  Creation of end-use specific worksheets to simplify process for customers and engineers  New Construction Program (previously covered)  Use of a Sector based approach  Brochures, website, assigned BGE and ICF AEs  Target specific measures for each sector 32

33. Energy Solutions for Business - Implementation  3 Key delivery channels - Trade Allies, Direct communications, BGE Account Executives  Key elements of implementation strategy  Trade ally recruitment  Focus on customer awareness and participation  Technical assistance for customers  Project verification (pre and post inspections)  Expediting of incentive payments  Multifamily facilities  Incentives for common areas  Incentives for residential appliances and HVAC equipment for master metered accounts  Incentives for residential equipment in new construction 33

34. Energy Solutions for Business –Savings, Participants, Measures, Budget and Cost Effectiveness Tests 34 Energy Solutions for Business201220132014Total Annual MWh Savings73,89679,96786,350240,213 Annual MW Savings13.014.115.242.3 Participants9891,0441,0993,132 Measures9891,0441,0993,132 Total Program Costs$19,763,870$21,709,585$24,179,835$65,653,290 TRC Ratio2.08 PAC Ratio3.39 RIM Ratio0.89 Participant Test Ratio2.44 Societal Test Ratio 2.61

35. Retrocommissioning - Description  Enhanced O&M Services  Available to all I&C customers but targets facilities < 75K sf.  Includes walk-through assessment, development of action plan and education of facility personnel  Focuses on RCx measures that yield the quickest returns including building system controls, replacement of equipment filters, AC tune- ups, cleaning of HVAC coils, sealing of air leaks, and rebalancing of air handlers  Incentives cover up to 75% of study with a $15K cap  Full RCx  Targets large (GL and P) customers with facilities > 75K sf. and complex EMS and HVAC systems.  Focuses on HVAC and EMS calibrations, diagnostic tests of major systems, and air and water systems balancing  Incentives cover up to 75% of study with a $20K cap 35

36. Retrocommissioning - Enhancements  Development and simplification of "sub services" with the Enhanced O&M Services  Promotion of the Enhanced HVAC maintenance services  Addition of compressed air leak detection and repair  Exploration of a pilot to focus on “Ongoing Commissioning”  Utilizes the one time investigation aspects of the traditional Full RCx Services approach but does it repeatedly over an extended period typically 3 to 12 months)  Incentives are identical to what are provided in the Full RCx program 36

37. Retrocommissioning - Implementation  Enhanced O&M (EO&M) services consists of:  Application – EO&M qualification is met and customer selects their own service provider  Study and Action Plan – opportunities are identified and action plan is developed and approved  Implementation – Identified EO&M measures implemented  Full RCx  Primarily delivered through pre-approved Retrocommissioning Service Providers (RSP) selected through an open solicitation process  RSP works with customer throughout the process and provides the analysis and reporting  Requires participants to develop a strategy plan for training of maintenance personnel, maintaining energy savings, analysis of energy benchmarks, action plan to resolve backslides and 6 month follow-up 37

38. Retrocommissioning –Savings, Participants, Measures, Budget and Cost Effectiveness Tests 38 Retrocommissioning (RCx)201220132014Total Annual MWh Savings2,9484,5865,89613,430 Annual MW Savings0.50.81.02.3 Participants457090205 Measures457090205 Total Program Costs$1,699,736$2,122,080$2,438,386$6,260,202 TRC Ratio1.14 PAC Ratio1.68 RIM Ratio0.70 Participant Test Ratio1.88 Societal Test Ratio 1.39

39. Residential Total –Savings, Participants, Measures, Budget and Cost Effectiveness Tests 39 Residential Total201220132014Total Annual MWh Savings166,478163,505148,520478,503 Annual MW Savings28.429.730.989.0 Participants936,373970,313999,5982,906,284 Measures3,678,8103,826,6253,947,58711,453,021 Total Program Costs$36,135,620$38,306,998$40,431,920$114,874,538 TRC Ratio1.88 PAC Ratio2.69 RIM Ratio0.58 Participant Test Ratio4.13 Societal Test Ratio 2.31

40. I&C Total –Savings, Participants, Measures, Budget and Cost Effectiveness Tests 40 I&C Total201220132014Total Annual MWh Savings96,173106,782117,809320,764 Annual MW Savings20.022.424.967.3 Participants2,6542,9773,3318,962 Measures2,6542,9773,3318,962 Total Program Costs$28,676,599$32,213,001$36,443,743$97,333,344 TRC Ratio2.01 PAC Ratio3.02 RIM Ratio0.87 Participant Test Ratio2.46 Societal Test Ratio 2.50

41. Total Portfolio –Savings, Participants, Measures, Budget and Cost Effectiveness Tests 41 Total Portfolio201220132014Total Annual MWh Savings262,651270,287266,329799,267 Annual MW Savings48.452.155.8156.3 Participants939,027973,2901,002,9292,915,246 Measures3,681,4643,829,6023,950,91811,461,984 Total Program Costs$64,812,220$70,519,999$76,875,663$212,207,882 TRC Ratio1.94 PAC Ratio2.84 RIM Ratio0.69 Participant Test Ratio3.35 Societal Test Ratio 2.40