1. An Overview of Utility Act 129 Programs for Multifamily Housing Increasing Affordability through Energy Efficiency Housing Alliance Webinar May 13, 2016 - 12:00pm – 1:00pm

2. Agenda Who is PULP? What is Act 129? What is each utility doing? Other Energy Efficiency resources?

3. Who is PULP?  Statewide specialty project within Pennsylvania Legal Aid Network, and a part of Regional Housing Legal Services.  Our focus is on low income residential utility and energy affordability in Pennsylvania  We represent the interests of low income, residential utility consumers before state agencies  We also provide training, technical assistance and support to legal aid and nonprofit community groups across Pennsylvania

4. What is Act 129? Act 129 of 2008 places a mandate on utility companies to reduce the electric usage of each customer class – energy efficiency and demand response (usage curtailment during peak hours) programs for residential (including low-income) and commercial/industrial customers. The first Act 129 programming began in 2010. There have been two phases of energy efficiency and demand response programming. – Phase II programming will end in May 2016, – Phase III programming will begin June 1, 2016 and continue for 5 years until May 2021. Phase III Plans were litigated and Settlement Agreements were approved in each of the cases.

5. Challenges Multifamily housing stock in Pennsylvania is aging; significant opportunity for improving the energy efficiency of Pennsylvania’s buildings Historically underserved by utility efficiency programs Barriers include: – split incentives when tenant pays utility bills – lack of capital by affordable multifamily housing operators and developers – Lack of alignment of utility program offerings with timing and needs of affordable housing community – Difference in definition of low income PUC uses income no greater than 150% FPL vs. affordable housing world’s use of AMI thresholds

6. Overview of Successes Additional Dollars Shift of more than $6 million to programs that provide for the direct installation of energy efficiency measures in low-income customers’ homes. Statewide more than $32 million dedicated to multifamily housing Multifamily Stakeholder Meetings Each utility has agreed to hold a stakeholder meeting with interested multifamily housing owners, developers, and other interested stakeholders to solicit feedback about the utility’s respective multifamily program design and implementation. Stakeholder Meetings will take place in each service territory likely in Fall 2016.

7. Overview of Successes Measures for Multifamily Properties to Align with PHFA Qualified Allocation Plan Agreement to align respective incentives for multifamily properties with the EE measures encouraged/required in PHFA’s QAP. Completion of Energy Rebate Analysis Agreement to assist with and/or align its programming with the completion of PHFA’s Energy Rebate Analysis. Coordination of Multifamily Programming Across Sectors Energy efficiency programs for multifamily properties are often split between multiple sectors. Common areas fall under the commercial / industrial class, while tenant units may fall under the residential or commercial / industrial class – depending on whether the building has a master meter or individual meters. To help resolve this cross-sector issue, each utility has agreed to take concrete steps that will bolster cross-sector coordination for the delivery of multifamily EE programs.

8. PECO Budget: $13 million; approx. 2% of PECO’s savings. Definition of Multifamily – All building types with more than one unit when the building is bigger than a duplex. Savings attributed to low-income carve-out if it can be attributed to households with income at/below 150%. – Individually metered/tenant-paid: savings from confirmed LI customers. – Master-Metered/owner-paid: if receiving federal / state funding, and have use restrictions, will work with building owner to identify units occupied by HH with income at / below 150%. Individually- and master metered properties eligible for all measures in entire portfolio. Common areas: – If 66%+ are verified low income, common areas will be eligible for same subsidy as low income EE program. – If less than 66% are verified low income, common areas will be eligible for the same subsidy as is available to the customers in the applicable meter class.

9. PPL Budget: $2.5 million dedicated to master-metered multifamily; with additional budget included within low-income sector (total low-income sector budget is $40 million) Residential *Includes individually metered AND master metered multifamily tenant units Appliance Recycling ; Energy Efficient Home; Student Energy Efficient Education; Home Energy Education Low Income *Includes individually metered AND master metered multifamily tenant units occupied by low income tenants (150% FPL) Appropriate EE measures are directly installed in the home at NO COST. Must be at or below 150% FPL. Energy Efficiency Kits / Education Commercial / Industrial (Small, Large, and Government/Nonprofit/Institutional) *Includes common areas of individually metered and master metered multifamily buildings. Efficient Equipment Custom - Rebates / incentives for measures not included in other programs Efficient Lighting Cap of $2.5 million, which can be raised with Commission approval

10. First Energy Companies: (Met-Ed, Penelec, Penn Power, West Penn Power) Residential *Includes tenant units in individually metered multifamily buildings Appliance Turn-In Program Energy Efficient Products Program Energy Efficient Homes Program Low Income *Includes tenant units in individually metered multifamily properties Low Income Energy Efficiency Program Commercial / Industrial *Includes tenant units in master metered multifamily buildings, and common areas in individually- and master meter multifamily buildings. C&I Energy Solutions for Business Program (small and large C&I and GNI) – Provides measures and financial incentives to purchase high efficiency measures; recycle inefficient appliances; conduct retrofits to building shell / system; complete audit with qualifying installations / recommendations. – Multifamily Contributions in C&I Energy Solutions for Business Program: 20% owner contribution for measures installed in common areas of single-meter buildings or in tenant units and common areas of master-meter buildings where 66% of units are occupied by low income tenants (150 FPL).

11. Budget for First Energy Companies UtilityBudget for MultifamilyLow-Income Sector Budget Met-Ed$4,138,395$18,044,914 Penelec$4,050,811$20,022,850 Penn Power$887,439$6,099,627 West Penn Power$3,987,321$19,057,802 TOTAL$13,063,966$63,225,493

12. Duquesne Budget: $4.2 million for multifamily; some portion of other program budgets available. Residential *includes non-low income tenants in individually metered units of multifamily buildings Residential Appliance Recycling Program and Energy Efficiency Rebate Program Residential Whole House Retrofit (multifamily building cannot be high-rise – defined as more than four stories) Low Income *includes individually metered units in multifamily buildings Low Income Whole House Retrofit Program (multifamily building can be any size for LI WHRP) Commercial/Industrial *common areas in individually metered buildings and all areas of master-metered buildings Multifamily Housing Retrofit Program: – Provides measures and financial incentives to purchase high efficiency measures; – Incentive amounts can be negotiated on a case by case basis (all property owners and jurisdictional agencies that participate will have to make a contribution towards costs).

13. Other Resources: LIURP/WAP/LIHEAP Crisis Interface LIURP  Eligibility  Income at or below 150% or 200% FPL (depending on utility)  Landlord Approval  High Usage  Benefits:  Energy Audit / Education  Appropriate Energy Conservation Measures  Appliance Replacement / Repair  Heat Pump / Water Heater Replacement  Insulation / Air Sealing  Heating Equipment Repair / Replacement  Limited Health / Safety Measures WAP & LIHEAP Crisis Interface Weatherization Assistance Program (WAP) – 200% FPL – Education and free weatherization – Administered by DCED – Currently examining how to address multifamily. Input needed LIHEAP Crisis Interface Program – Repair/replacement of heating system; pipe thawing; supplemental heating

14. Links to Act 129 Plans Duquesne: http://www.puc.pa.gov/pcdocs/1414169.pdfhttp://www.puc.pa.gov/pcdocs/1414169.pdf PECO: http://www.puc.pa.gov/pcdocs/1429967.pdfhttp://www.puc.pa.gov/pcdocs/1429967.pdf First Energy Companies: – Met-Ed: http://www.puc.pa.gov/pcdocs/1397216.pdfhttp://www.puc.pa.gov/pcdocs/1397216.pdf – Penelec: http://www.puc.pa.gov/pcdocs/1397207.pdfhttp://www.puc.pa.gov/pcdocs/1397207.pdf – Penn Power: http://www.puc.pa.gov/pcdocs/1397225.pdfhttp://www.puc.pa.gov/pcdocs/1397225.pdf – WestPenn Power: http://www.puc.pa.gov/pcdocs/1397223.pdf http://www.puc.pa.gov/pcdocs/1397223.pdf PPL: http://www.puc.pa.gov/pcdocs/1438047.pdfhttp://www.puc.pa.gov/pcdocs/1438047.pdf

15. PULP Contact Information Patrick Cicero Phone: 717-236-9486, Ext. 202 Email: pciceropulp@palegalaid.net Elizabeth Marx Phone: 717-236-9486, Ext. 205 Email: emarxpulp@palegalaid.net Joline Price Phone: 717-236-9486, Ext. 217 jpricepulp@palegalaid.net