OVERVIEW: CHICAGOLAND NATURAL GAS SAVINGS PROGRAM Annette Beitel Administrator - Chicagoland Natural Gas Savings Program DCEO Peer Exchange May 5, 2009

Background: Regulatory Framework No enabling statute Gas energy efficiency funds approved by ICC on February 5, 2008 No filed portfolio plan Funded by residential and small commercial customers in Peoples Gas and North Shore Gas service territories $7.5 million per year Administrator hired in August, 2008 Programs launched December 15, 2008

Background: Administration Oversight by Five-Member Governance Board Peoples Gas/North Shore Gas; Attorney General; Citizens Utility Board; Environmental Law and Policy Center; City of Chicago Provides broad strategic direction and oversight Administrator Advises Governance Board Procures and manages programs Program Implementers Run programs

Background: Objectives and Metrics Objectives Cost-effective programs Consistent with Program Best Practices Encourage WMBE and non-profit participation Develop local jobs and infrastructure Partner local expertise with national EE leaders to build capacity Metrics Customers served C/E Energy saved Contractors trained

Programs: Rebates High-Efficiency Furnace/Boilers Two Tiers for Furnaces: 92-93% AFUE; 94% AFUE and above Two Tiers for Boilers: 85 – 94% AFUE; 95% AFUE and above Offers incentives of up to $650 per measure

Programs: Rebates Insulation Attic, Floor and Wall Insulation Up to $750/customer Efficient clothes washers $100/unit Efficient storage, condensing and tankless water heaters Rebates vary, up to $400/unit

Programs: Low/Moderate Income CNT Energy Savers program Multi-family units Program pays for audits and post-installation inspections Owners fund investments through loan from community development bank

Programs: Whole Home Pilot Whole Home Scale-Up Retrofit Pilot Collaboration involving ComEd, DCEO, Chicagoland, CNT, Bungalow Association, Delta Institute, CEDA, others Co-funding electric and gas measures by Chicagoland and DCEO Testing whether can cost-effectively achieve 30% savings per dwelling and how to scale program Whole-home retrofits of over 100 homes through CNT and Bungalow Association

Programs: M&O Pilot Phase 1: Reviewed and evaluated various EE M&O strategies used by EE implementers in Chicago Phase 2: Chicago school pilot in planning stage to test whether school-based education programs will be successful vehicle for delivering EE messages and savings in Chicago Implementer: Kelly Shelton

Results-to-Date Year 1 Portfolio implementation: 100% WMBE or non- profit Contractors trained: Over 50% of HVAC contractors in market have attended training and have reported high satisfaction with training Cost-effective at portfolio and program level Savings and customers served ahead of goals for both rebate and low/moderate income programs