1. PPL Electric Utilities Act 129 EE&C Programs  2013 PPL Electric Utilities

2. Four years to reach goals starting June 1, 2009 and ending May 31, 2013 The EE&C Plan had to be cost-effective and needed to provide equity across customer classes The available funding of the 4 year Plan was capped at an average of $61.5 million/year Act 129 Phase I - Requirements 2

3. Annual changes to the Technical Reference Manual (TRM) Not an exact science. Difficult to accelerate and decelerate quickly Economy. Customer’s ability to invest funds in energy efficiency Recognizing value of energy efficiency. Customer’s willingness to invest in energy efficiency Meeting a wide range of stakeholder expectations Fluctuating price of energy Challenges 3

4. Act 129 Phase I Dollars and Savings 4 PUC Requirements PPL EU Phase I Plan PPL EU Phase I Results $246 million (plus SWE expenses) $ 245 million (includes SWE expenses) $ 241 million (includes SWE expenses as of 7/31/2013 ) 1,146,000 MWh/yr. ( verified ) 1,362,000 MWh/yr. ( verified ) 1,549,000 MWh/yr. ( reported as of 7/31/2013 )

5. More than 9.7 million CFLs distributed through approximately 400 stores and community events 250,000 rebates processed Small businesses completed 4,000 jobs in the direct discount program Over 55,500 appliances recycled 250 stores promoted energy efficient appliance rebates Act 129 Phase I – How did we do? 5

6. About 300,000 customers -- almost 25 percent of all PPL Electric Utilities customers participated. (not counting CFL purchased). Many received rebates for more than one measure. Total number of measures – 755,504 Act 129 Phase I – How did we do? 6

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8. Customer satisfaction For the year of 2012, top 3-box scores (8,9,10 on 10-pt scale): Rating on PPL’s willingness to help customers reduce their spend – rose from 32% in 2007 to 49% in 2012 Rating on providing customers with information about energy efficiency programs and rebates for their home– 60% in 2012 PPL EU overall satisfaction score for customers who are aware of energy efficiency programs 77% vs. 74% for those not aware PPL EU overall satisfaction score for customers who have participated in energy efficiency program 79% vs. 75% for those who haven’t participated Act 129 Phase I – How did we do? 8

9. Phase I PY4 Survey Findings 9 Top three ways participating customers learned about the programs 1.Installers, contractors, home builders and remodelers 2.PPL Electric Utilities bill insert 3.Friend, relative, colleague

10. Three years - started on June 1, 2013 and ending on May 31, 2016 Offer at least one energy-efficiency program for each customer sector and offer a reasonable mix of energy-efficiency programs for all customer sectors Offer at least one “whole building program” for residential and commercial customer sectors Achieve at least 25% of the energy reduction target in each of the three program years Moving on…. Act 129 Phase II - Requirements 10

11. Achieve a minimum of 4.5% (36,948 MWh/yr.) of the total required energy reductions from the low-income customer sector Achieve a minimum of 10% (82,107 MWh/yr.) of the total required energy reductions from GNI customers Meet the Total Resource Cost Test (TRC) of ≥ 1 with the portfolio of programs Allocate the cost of measures to the customer class(es) that receive(s) the benefit of those measures Act 129 Phase II Requirements -- continued 11

12. Act 129 Phase II Dollars and Savings 12 PUC Funding CapPPL Electric Utilities Phase II Plan $184.5 million$183.7 million 821,072 MWh/yr.841,957 MWh/yr.

13. Appliance Recycling Lighting Rebates for efficient equipment Home Energy Report cards New home construction incentive Home energy audits and weatherization Student and Parent Energy-Efficiency Education Residential Programs 13 MWh/yr. Savings % of Total Savings Cost (000) % of Total Costs 377,30045%$58,00031%

14. Low-Income WRAP Home Energy Report cards for low-income customers E-Power Wise Program Low-Income Programs 14 MWh/yr. Savings % of Total Savings Cost (000) % of Total Costs 22,0003%$18,00010%

15. HVAC Lighting Direct discount Occupancy sensors Motors and refrigeration Farm audit and equipment Custom rebates Small and Large C&I Programs 15 Sector MWh/yr. Savings % of Total Savings Cost (000) % of Total Costs Small C&I157,70019%$43,00023% Large C&I191,40023%$38,00020%

16. HVAC Lighting Direct discount Occupancy sensors LED/area street lights Motors and refrigeration Custom Rebates School Benchmarking Continuous Energy Improvement Master-Metered Low-Income Multifamily Housing GNI Programs 16 MWh/yr. Savings % of Total Savings Cost (000) % of Total Costs 92,00010%$29,00016%

17.  Amanda Morrison  ajmorrison@pplweb.com ajmorrison@pplweb.com  610-774-4275 PPL Electric Utilities Contact Information 17