1. EmPower MD Act overview and Demand Response Training EmPower Maryland

2. EmPower Maryland Energy Efficiency Act of 2008 Goal is to have a 15% reduction in per capita electricity consumption and peak demand by the end of 2015 Reduce energy bills, global warming, and protect the environment Four things considered –Cost-effectiveness –Impact on rates of each ratepayer class –Impact on jobs –Impact on environment

3. Commission’s Role Approval of programs Evaluate energy efficiency and demand reduction savings Make recommendation for changes to programs Evaluate cost-effectiveness In consultation with MEA, submit a yearly report to the General Assembly stating program results Enforce utilities’ compliance with EmPower Maryland Act of 2008

4. Utilities’ Role Provide programs that will result in 10% of the 15% reduction Have savings target spread among all rate classes, including low income Provide interval reports to the Commission on programs’ statuses Must issue RFPs for outside services Participate in PJM RPM auction

5. EE&C and DR Programs Energy Efficiency & Conservation Lighting and Appliance Home Performance with Energy Star Residential New Construction Low-Income Gas and Electric HVAC Small Commercial Industrial and Commercial Demand Response Thermostats Switches Smart Grid

6. EmPower MD EE&C and Demand Response Surcharges Energy Efficiency & Conservation ($/kWh) Demand Response ($/kWh) AP1.24- BGE0.631.59 DPL1.01 Pepco1.000.62 SMECO0.851.24

7. EE&C Programs Lighting and Appliances –CFL Program –Appliance Rebate Qualified Appliances Home Performance with Energy Star –Energy Calculator –Home Check-up –Home Audit

9. EE&C Programs Residential New Construction –Builders and raters –161 measures per home installed –Energy Star appliances Low Income –Weatherization projects –Assisting jurisdictions with expanding funds to reach more homes

10. EE&C Programs Gas and Electric HVAC –Contractors assess and repair: Duct Sealing Diagnostic Tune-up –Tax credits www.energy.state.md.us www.energytaxincentives,org

11. EE&C Programs Small Commercial –Prescriptive –Lighting Solutions Industrial and Commercial –Prescriptive –Custom –Retrocommissioning

12. Demand Response Direct Load Control –PeakRewards (BGE) –CoolSentry (SMECO) –Energy Wise Rewards (Pepco & Delmarva) Shifting demand for electricity to non-peak periods Peak hours- 2pm-7pm from June to September Choice between switch or thermostat Can go on air conditioner or heat pump

13. Benefits Reduction in energy used Lower energy rates Peak Demand Reduction can be bid into PJM RPM auction Bill Reductions Avoid the need for additional power plants or new transmission lines Continued Reliability Supports continued growth of Maryland Environmentally Friendly and Responsible

14. BGE’s PeakRewards Reduces peak demand Provides a programmable thermostat or switch that cycles on/off when needed Receive bill credit each summer of participation Can manage thermostat online Cycling occurs during the summer on weekdays from 1pm to 7 pm

15. Thermostats Cycling50%75%100% Incentive$50$75$100 Bill Credit$50$75$100 Occurrence PJM Emergency (Distribution) Economic considerations Local Emergency (Distribution )

16. Water Heater Switches Cycling100% Incentive$25 Bill Credit$25 Occurrence PJM Emergency (Distribution) Economic considerations Local Emergency (Distribution )

17. Cycling Regular Cycle On Off 50% Cycle Off On

18. Cycling 75% Cycle Off 100% Cycle Off On

19. General Awareness Educate the general public on benefits of energy efficiency Provide energy saving tips and simple way to reduce energy consumption Develop a united front through themed messaging Collaborative effort to obtain 15 by 15