1. Keystone Energy Efficiency Conference 2011 September 20, 2011

2. Act 129 Basic Requirements –1% energy reduction by 5/31/11 382 million kWh reduction for PPL EU Achieved 534 GWh (128% of goal) –3% energy reduction by 5/31/13 1,366 GWh reduction for PPL EU Currently at 642 GWh (47% of Goal) –4.5% peak load reduction by 5/31/13 Average of the 100 summer hours (June – Sept.) of highest demand Just started marketing –Direct Load Control for Residential and Small Commercial –Load Curtailment for Large Customers

3. Act 129 Programs Residential Appliance Rebates Home Assessment & Weatherization Home Energy Reports Appliance Recycling Residential HVAC CFL Discounts Low Income WRAP E-Power Wise Peak Saver DLC Business/Government/Non-Profit Appliance Rebates Lighting Rebates Appliance Recycling Building Envelope/Insulation HVAC Tune-Up HVAC, Motors & Other Rebates Custom Incentives Load Curtailment – Commercial & Industrial Customers Peak Saver Direct Load Control Small Business & Institutions

4. Status More than 5.5 million CFL distributed through more than 400 stores 195,000 rebates processed to date ($30+ million) Close to 300 retail stores promoting Energy Efficient Appliances 27,000 appliances recycled Home Energy Reports regularly distributed to 100,000 residential customers Almost 1,500 home energy assessments completed 6,500 low income customer received WRAP 4,600 low income customers attended E-Power Wise seminars and received energy efficiency measures

5. Challenges Engaging small business customers –Challenging economic conditions –Diverse customer profile –May not own their building Traction for Direct Discount service –Pays up to 75% of labor and material costs for lighting and refrigeration –“Too good to be true”

6. Contractor Opportunities BPI certification Direct Discount certification (866-432-55010) Heat Pump Water Heater Installation Use prescriptive rebates to promote make jobs more affordable –High efficiency pumps and motors –Commercial and Industrial lighting – Residential and C&I HVAC