PECO Smart Ideas Energy Efficiency Programs KEEA Conference October 1, 2013 1

ACT 129 Phase II Goals Energy Efficiency (Consumption) Savings target of 2.9% by May 31, 2016 (1,125,852 MWh) Three year program June, 2013 to May, 2016 Seven (7) new residential and commercial energy efficiency programs Minimum of 10% target consumption reductions must be obtained from federal, state and local government, including municipalities, school districts, institutions of higher education and non-profits Minimum of 4.5% target consumption reductions must be obtained from Low Income customers Demand Reduction (Demand) There are no demand reduction targets in Phase II PECO received PUC approval to continue to offer PECO Smart A/C Saver in summer of 2013

PECO Smart Ideas – Phase II PECO Smart Appliance Recycling PECO Smart Home Rebates Low Income Energy Efficiency PECO Smart House Call 20,800 audits and assessments PECO Smart Energy Saver 21,000 students PECO Smart Usage Profile 100,000 customers PECO Smart Builder Rebates 273 homes PECO Smart A/C Saver 80,000 participants PECO Smart Equipment Incentives (C&I) PECO Smart Equipment Incentives (GNI) PECO Smart Construction Incentives PECO Smart Business Solutions 2,500 small commercial customers targeted PECO Smart Multifamily Solutions 32,000 customers targeted PECO Smart On-Site 30 projects How many ppl are going to be served? Add number for participants to the programs for impact KL Break out into two slides by sector 3 3

Residential Programs 4

PECO Smart House Call The PECO Smart House Call Program provides PECO residential electric customers an opportunity to save energy in their homes. The two-tiered approach includes: Walk through assessment available to all residential electric customers - $50 Comprehensive energy audit, including blower door test, is available for all residential electric heat customers on rate RH - $100 Additional weatherization incentives available (performed by trade ally network) All assessments and audits include installation of low cost energy savings measures such as pipe wrap, CFLs, faucet and shower aerators Comprehensive report left with the customer (paper / email) Participation 20,800 customers : 15,600 assessments + 5,200 audits Savings 14,611 MWh Add metric box 5

PECO Smart Energy Saver PECO Smart Energy Saver Program Educate 5th grade students and parents about energy efficiency and conservation through the distribution of energy kits in schools within the PECO service territory Students and parents install kit contents Teacher curriculum Participation 21,000 students Savings 2,874 MWh 6

PECO Smart Usage Profile Using social norms, encourage customers to reduce their energy consumption with delivery of Home Energy Reports (HERs) throughout the year showing customer energy use compared to similar homes. Target 100,000 customers (40k/30k/30k) using more than 16,000 kWh each year matched to a Prizm analysis to ensure a diverse mix of participants/housing stock Participants can opt-out by alerting PECO via e-mail or by calling a direct dial number provided in the introduction material 7 Energy Reports mailed each program year Participation 100,000 customers Savings 26,000 MWh 7 7

PECO Smart Builder Rebates New residential construction and major rehab program for builders building electrically heated homes meeting ENERGY STAR 3.0 standards ENERGY STAR homes must meet strict guidelines for energy efficiency set by the U.S. Environmental Protection Agency (EPA) Homes are at least 15% more energy efficient than homes built to Pennsylvania's building code Builders receive rebate to help offset costs of including energy efficiency $400 base incentive Marketing includes direct outreach and education to homebuyers, builders, architects, developers and real estate agents PECO will collaborate with stakeholders to explore program design modifications to improve the cost effectiveness of the program Participation 273 homes Savings 409 MWh 8 8

Commercial Programs 9

PECO Smart Multifamily Solutions Offering energy efficiency measures to owners and tenants of multi-unit buildings – C&I, GNI and Low Income properties are eligible Providing in-unit direct install of energy-efficient lighting and other energy saving measures Property managers receive a free energy assessment for common areas including a report of potential energy saving upgrades for their facility Residential unit occupants receive benefits through participation by building management – CFLs, low flow shower heads, faucet aerators Market program using direct to building management Participation 32,567 multi-units Savings 21,256 MWh How are we targeting this program? 10 10

PECO Smart Business Solutions Provide direct installation of energy saving measures to small business customers with peak demand less than 100 kW Includes eligible lighting, HVAC, and refrigeration measures Complimentary on-site energy analysis Complimentary report detailing potential energy saving upgrades Reduce customer portion of the installation cost up to 50-60% Participation 2,500 customers Savings 43,867 MWh Add the numbers… key metrics missing the face to face interaction direct install outreach… 11 11

PECO Smart On-Site Offers incentives for combined heat and power installations including micro-turbines, reciprocating engines, and fuel cell technology Incentives are paid on combination of installed capacity and actual energy generated Performance incentives are paid at $0.02/kWh generated in the first year of operation Maximum incentive is 50% of the total project cost up to $1,000,000 Participation 30 projects Savings 135,002 MWh Mike’s comments 12 12

Thank you! 13 13

APPENDIX 14 14

PECO Smart Lighting Discounts PECO will continue to provide in-store discounts on CFLs and LEDs with a focus on specialty bulbs like candelabras, globes, recessed and dimmables. Discount taken at register. 15 15

PECO Smart Appliance Recycling Eligible customers will receive a $35 rebate for each unit (2 units per PECO electric customer per year) Only older working refrigerators and freezers qualify. 16 16

PECO Smart Home Rebates Rebates for eligible Energy Star refrigerators meeting CEE Tier 3 criteria, room air conditioners and HVAC equipment (Air Source Heat Pumps, Central Air and Geothermal heat pumps) Rebates for eligible variable speed pool pumps, desuperheaters, hot water heaters, furnace fan and fuel switching also available Customers will have 90 days to submit a rebate application from time of purchase/installation 17 17

PECO Smart A/C Saver The 2013 PECO Smart A/C Saver program offers a monthly incentive of $20 during the four summer months to program participants Fewer hours to be called (51 called in 2012) Events will be based on PECO reaching 95% of the 2013 forecasted peak and/or PJM Emergency DR curtailment requests A portion of program load (~ 40 MW) is registered in PJM Emergency DR Program via Comverge, a Curtailment Service Provider (CSP) to offset program costs Three 3-hour events took place this summer, two called by PJM and another initiated by an internal trigger mechanism Participation ~80,000 customers Installed Capacity 80 MW Update on how we did it Installed capacity

PECO Smart Equipment Incentives Offers incentives on a broad range of energy efficiency measures both custom and prescriptive to commercial and industrial customers Includes retrofit of energy efficient lighting, HVAC systems and other facility equipment C&I and GNI customers eligible Incentives for GNI customers approximately 20% higher 19 19

PECO Smart Construction Incentives Offers incentives on a broad range of prescriptive, custom and whole building energy saving tracks For new construction and major building renovations C&I and GNI customers eligible 20 20