1. Winter Energy Update Doug Nazarian January 3, 2010

2. 2 The snapshot Rates are down! It’s easy to use less New programs can help you use energy more efficiently Help is available if you have trouble paying your energy bills

3. January 3, 20103 Rates are down!

4. January 3, 20104 Your bill Two categories of charges  Commodity charges (the electricity or gas itself) These comprise 75-80% of your bill  You pay according to the amount you use You can buy from anyone you like – most people buy Standard Offer Service from their utility (BGE, Pepco, Delmarva, Allegheny), but you can choose alternative suppliers Since 1999, commodity rates are not regulated, but determined by the market  Standard Offer electricity rates change twice per year, gas rates change monthly  Distribution charges (transporting the commodity to you) These comprise 20-25% of your bill  They include a monthly fixed Customer Charge and usage charges  They also include various surcharges, which may or may not appear as separate line items Your local utility provides distribution service based on where you live Rates are set by the Public Service Commission in periodic “rate cases

5. January 3, 20105 Winter electricity rates are down Winter Electric SOS Commodity Rates (does not include distribution rates) Winter Rates (cents/kWh) Allegheny Power BGEDelmarva Power & Light Pepco 2009-20108.14511.08010.358711.579 2008-20098.56811.39010.688311.391 2007-20084.06510.13610.041210.234 Rate in effect from October 1, 2009 through May 31, 2010. * Note: The commodity rate shown reflects the lifting of residential rate caps for the Allegheny service territory, which took place in January 2009. Residential customers who opted-out of Allegheny’s rate transition plan can expect to pay this amount. However, for the residential customers who chose to participate in Allegheny’s rate transition plan (more than 90% of customers), total bill amounts will only rise by 15% at a time until the end of 2010.

6. January 3, 20106 You have choices Examples are from BGE territory as of December 2, 2009 (source: the Maryland Office of People’s Counsel, www.opc.state.md.us). Offers may have changed.www.opc.state.md.us BGE Standard Offer Service Rate (changes every June and October) $.1108 SupplierContractLength of ContractCancellation feeRate ($/kWh) Clean Currents50% Wind12 Months$75.00.1130 50% Wind24 Months$75.00.1130 100% Wind12 Months$75.00.1180 Dominion Retail, Inc.Fixed12 MonthsNone.1037 Washington Gas Energy Services Special Offer8 Months$150.00.1020 5% Wind12 Months$150.00.1090 5% Wind24 Months$150.00.1090 5% Wind36 Months$150.00.1100 50% Wind12 Month$200.00.1190 50% Wind24 Months$200.00.1190 100% Wind12 Months$200.00.1310 100% Wind24 Months$200.00.1310

7. January 3, 20107 Natural gas rates are down even more Natural gas bills for this winter will be lower than last winter at the same levels of usage  BGE predicts a 25% decrease over last winter  Washington Gas predicts a 10%-20% decrease over last winter  Chesapeake predicts a 12-15% decrease over last winter  Easton predicts a 20% decrease over last winter  Other companies expect similar decreases This winter’s weather is projected to be “normal,” which would lower usage and bills further Last winter was colder than usual, especially January

8. January 3, 20108 Every little bit helps BGE customers will receive a one-time credit of approximately $100 on their February 2010 bill as a condition of the Constellation/EDF transaction

9. January 3, 20109 It’s easy to use less

10. January 3, 201010 Conservation, Energy Efficiency and Demand Response Conservation – use less, i.e., turn it off Energy efficiency – replace older, less efficient appliances with newer, more efficient ones  EmPower Maryland Act programs Demand response – get paid to curtail usage during times of peak demand  BGE Peak Rewards The future: advanced metering/“smart” grid and appliance technology, dynamic pricing

11. January 3, 201011

12. January 3, 201012 Biggest energy users Heating and cooling  Some heating fuels and furnace types are more efficient than others Natural gas v. heating oil v. electric heat pumps  Turn down the thermostat Electronic/programmable (and someday “smart”) thermostats make this easier  Insulate attics, walls and and windows  Replace old/inefficient furnaces and air conditioners with new, efficient ones Hot water  Install low-flow shower heads  Lower the temperature  Insulate your water heater Consumer electronics  More and bigger appliances use more electricity, especially TVs LCDs and LEDs are more efficient than plasma  If you see a light, it’s drawing power Lighting  Turn lights off when you’re not using them  Replace incandescent bulbs with compact fluorescents or LEDs Appliances  Look for Energy Star logo and EnergyGuide disclosures

13. January 3, 201013 You can use energy more efficiently

14. January 3, 201014 Energy efficiency programs The EmPOWER Maryland Act of 2008 required Maryland utilities to propose energy efficiency programs  10% reduction in consumption (from 2007 levels) by 2015  15% reduction in peak demand (from 2007 levels) by 2015 The Public Service Commission reviewed the programs to ensure they were cost-effective  All major electric companies now have programs BGE’s programs are well under way Pepco’s, Delmarva’s, Allegheny’s and SMECO’s programs are rolling out now Other programs and incentives are available  Federal tax credits and stimulus money Low-income weatherization through the Department of Housing and Community Development  Maryland Energy Administration programs  Local government programs

15. January 3, 201015 Utility EmPOWER Act programs The utilities’ programs share common elements  Rebates for energy efficient appliances and lighting  Incentives to recycle older, less efficient appliances  Home energy audits, including quick home energy check-ups (which can be free!)  Assistance for low-income households, including home weatherization, appliance replacement, and education  General awareness campaigns, educational materials and promotions  Funded by ratepayer charges (“EmPower Maryland Charge”), offset by Regional Greenhouse Gas Initiative credits (“RGGI Credit”)

16. January 3, 201016 You can get help with your bills

17. January 3, 201017 Don’t wait Call your utility as soon as you’re in danger of getting behind  All utilities will work out payment plans  They can help connect you to assistance programs Contact the Public Service Commission’s Office of External Relations if you need help or information or get an unsatisfactory answer from your utility  www.psc.state.md.us or 410.767.8028 www.psc.state.md.us

18. January 3, 201018 Ask for help Public funds are available if you qualify  Maryland Office of Home Energy Programs, www.dhr.state.md.us www.dhr.state.md.us  DHCD can provide weatherization assistance Private assistance may also be available  The Fuel Fund of Maryland, www.fuelfundmaryland.org www.fuelfundmaryland.org

19. For more information… Public Service Commission 6 St. Paul Street, 16 th Floor Baltimore, MD 21202 410-767-8028 www.psc.state.md.us