1. EmPOWER Maryland Utility Program Enhancements Meeting Review of BGE’s Filed Multifamily, Custom and Re-Commissioning Programs Discussion on Future Enhancements Customer Financing February 20, 2009

2. BGE ® 2 BGE’s Multifamily Program - Summary Jointly targets landlords and tenants to address the issue of how to motivate landlords to make changes for their tenants and for tenants to make improvements to homes they do not own Future enhancements would be based on discussion with landlords on how to address the tenant side of multi-family Applicable property types: Publicly owned and operated (Baltimore City Department of Housing & Community Development and other public agencies) Privately owned, but publicly assisted (state and federal) Privately owned and operated without government assistance Some crossover with the Low Income and Small Commercial Programs The same trade allies/contractors working in small commercial businesses will also work in multifamily properties

3. BGE ® BGE’s Multifamily Program - Incentives Energy Audits Property owners and managers will receive an initial visit from the implementation contractor who will perform a free basic energy audit Common areas will be inspected as will be individual units within the building to identify potential for prescriptive measures Incentives for common area measures will be set consistent with the Small Commercial Program Incentives will be based on 50 -75% of the incremental costs of the energy-efficient equipment with the following initial incentive levels: –T12 upgrade to HP-T8 lamps and electronic ballast - $10/fixture –Hard-wired compact fluorescent fixture, new or retrofit kit - $10/fixture –New compact fluorescent fixture with dimmable ballast - $40/fixture –Occupancy sensors: wall mount - $25/sensor and remote mount - $75/sensor –LED Exit signs - $25/sign 3

4. BGE ® BGE’s Large I&C Custom Program - Summary Offers incentives for most complex and site-specific measures and projects Available for energy efficiency technologies, or multi-measure projects, that do not fall under the Prescriptive Program, ranging from complex commercial HVAC projects to industrial process improvements Custom projects must be able to show specific and verifiable energy savings and costs, typically developed by a third-party firm Any measure that would improve electric energy efficiency will be eligible provided that it is cost effective 4

5. BGE ® BGE’s Large I&C Custom Program - Incentives Incentive levels will be project specific based on prescribed calculations (Model assumed average participant incentive of $27,500) Provides co-funding studies that are 50% of the pre- approved study cost with a cap of $15,000 per study Customer’s share of study may be 100% refunded if more than 75% of the measures are implemented and 50% refunded if more than 50% of measures are implemented. Incentives will be based on a per kWh basis subject to modifications as needed to balance the program’s financial requirements and savings goals 5

6. BGE ® BGE’s Re-Commissioning (RCx) Program Helps identify and implement low cost tune-ups and adjustments that improve the efficiency of existing buildings’ operating systems by returning them to intended operation or design specifications Focus is on building controls and HVAC systems RCx involves the assessment of building performance and improvements through better use of energy systems controls, cleaning and calibration of equipment, and installation of low-cost measures such as ventilation and lighting controls Studies show that RCx typically saves owners 5% to 20% of total building energy costs, at very low cost per square foot Provides cost sharing for RCx assessment and study Incentives will be based on a per kWh basis 6

7. BGE ® 7 Large I&C Program Enhancement Discussion BGE already had planned on seeking to enhance or modify these programs as our market intelligence improves including direct customer and landlord/owner (for the Multifamily program) feedback and we see what is working BGE is already focusing on quality implementation of a large number of diverse programs and wants to avoid potential customer confusion and risk of implementation missteps by focusing on enhancements prematurely The Custom Program already includes anything that is cost effective BGE is considering the inclusion of Combined Heat & Power projects Enhancements such as higher incentives, co-funding or caps were briefly considered but BGE feels it is premature to suggest these prior to some experience at current approved levels and such changes may change the cost effectiveness and impact versus budget balance

8. BGE ® 8 Customer Financing BGE existing option included in approved program Loan buy-down reflecting the equivalent rebate amount in the Home Performance with ENERGY STAR program Enhancement opportunities BGE is talking to some potential lenders Wants to explore/understand stimulus bill which has loan guarantee provisions through DOE Consider using MEA to develop a statewide approach to third-party lending Statewide scale may get more lenders involved Explore regional lenders who have a local stake in the markets they serve