CEAC update Energy Efficiency | Renewables | Smart Grid November 19, 2010

Securing our energy future

State-of-the-Art Power Systems EnergyWise ®

Smart grid grant and initiatives  Launched EnergyWise ® smart grid brand  Opened Smart Grid Program Office  Smart grid grant  DSDR  Condition-based monitoring  Smart meter pilot  Electric vehicle charging stations  EnergyWise Home SM

EnergyWise Home ℠ l Helps Progress Energy manage the existing power supply during times of unusually high demand. Participants receive an annual bill credit l Over 42,890 customers enrolled in the program – 5,664 from the Western Region l $1 million incentives paid to date - $141,600 in the Western Region l Recently reached 51 MW in savings

Alternative Energy

Hot Springs Elementary Windmill

l Solar education program designed to give middle and high school students and faculty a unique, hands-on opportunity to learn more about solar energy l Five winning schools were chosen to receive a 2 kW solar PV system to be installed on their campus along with internet tracking equipment that shows the real-time energy output. l 2009 – 2010 SunSense School winners: w Daniels Middle School (Raleigh) w Jordan Matthews High School (Siler City) w Owen Middle School (Swannanoa) w South Brunswick High School (Southport) w South Florence High School (Florence) SunSense ℠ Schools

Western Region Solar Projects l Recently reached 1 MW of installed solar PV in Western Region! w Evergreen Packaging: 55 KW system w Conrad Industries: 250 KW system w Jim Barkley Toyota: 75 KW system w Deltec Homes: 55 KW system w Biltmore Park Town Square Office Building: 80 KW system w Evergreen Packaging Asheville, NC 55 KW system Jim Barkley Toyota Asheville, NC 75 KW system Conrad Industries Weaverville, NC 250 KW system

SunSense ℠ Solar Water Heating Pilot l Offers a $1,000 incentive to program participants who invest in solar water heating and are accepted into our research study l Almost 100 customers approved to participate – 20 from the Western Region l 17 authorized installers throughout territory

SunSense ℠ Solar PV program l Approved Nov. 15 l Expected to launch Jan. 1 l Provides upfront rebates of $1,000 per kilowatt of capacity l Monthly bill credits of $4.50 per kilowatt for newly installed solar l PEC retains rights to renewable energy credits l Participants must be PEC residential customers l Participants must own the installed solar PV system l Eligible systems must be sized from 2-10 kW

Energy Efficiency

What you can do: Energy efficiency

l Gives homeowners a free, personalized evaluation of their energy usage and provides specific recommendations for energy and money savings l Over 17,495 customers have participated to date – 1,736 customers from the Western Region Customized Home Energy Report

Home Advantage l Encourages construction of ENERGY STAR ® - certified homes that are at least 15% more energy efficient than standard homes and come with a 5% PGN discount l Over 802 homes built in 2010 – 96 in the Western Region l Official builders throughout service territory including site-built, system-built, manufactured and multi-family construction w 189 builders participating in program - 71 builders in the Western Region w $1.1 million in rebates paid to official builders - $152,600 in the Western Region

Home Energy Improvement Program l Offers rebates for energy-efficiency home improvements such as heating and cooling upgrades, duct repair and insulation l Total of 800 pre-qualifed contractors on the program – ~150 from the Western Region l Measures: w 55,493 installed since program launch w 2,992 installed in the Western Region l Rebates: w $7.3M since program inception in 2009 w $434,302 received in the Western Region l Savings: w KW – 9,609 since program inception w kWh - 12,656,849 since program inception

l Provides information and free energy conservation measures to low-income residential customers to help reduce energy consumption and costs l Program Accomplishments: w Asheville, NC – 871 homes completed w Florence, SC – 785 homes completed w Marion, SC – 472 homes completed w Raleigh, NC – 1,300 homes completed w Projects in progress in Warren County and Goldsboro, NC w 3,470,720 kWh savings to date w 536 KW savings to date Neighborhood Energy Saver

l Offers discounts to customers purchasing ENERGY STAR lighting products, including CFLs, at selected retail stores l 2.9 million bulbs sold to date – 760,000 in the Western Region l Over 446 retail stores participating l 88,802,023 KWH savings to date – 23,207,761 in the Western Region l 656,518 KW savings to date – 95,686 in the Western Region Residential Lighting Program

l Launched April 5, 2010 l Offers a $50 incentive to retire older, inefficient refrigerators or freezers l Almost 95% of a refrigerator’s parts are recycled through this program l 3,873 appliances recycled to date – 465 in the Western Region l 4,336,248 kWh savings to date – 517,299 in the Western Region l 505 KW savings to date – 60 in the Western Region Appliance Recycling Program

Other items of interest l New website launch – Q l Customer care / Lower my bill toolkit l Energy Neighbor Fund l Give Where You Live l Social media – staying in touch with our customers

Securing our energy future