1. Potomac Edison Preliminary Energy Efficiency and Conservation Programs 2012-2014
April 14, 2011

2. Agenda Background Program Development Preliminary Residential Program
Program Overview

3. Background: Current Programs and Performance

4. Plan Development
Programs and Measures were identified based on existing EmPower and FirstEnergy program experience and Stakeholder proposals
The following proposed Residential Programs are initial drafts; development efforts are ongoing:
Current program projections are falling short of the 2015 EmPower Maryland goals
The Company is working hard to leverage program successes of FirstEnergy affiliates as we continue to refine 2012 – 2014 Empower MD Programs
Modeling Assumptions continue to be refined and validated (participation and growth rates, energy and demand savings, cost inputs, budgetary values, etc.)
Potomac Edison looks forward to working collaboratively to improve the 2012 – 2014 Empower MD Programs

5. Preliminary Residential Programs: Residential Appliance Turn-In Program
Description
A program that provides incentives to customers to remove and permanently retire older, inefficient appliances that are in working order.
Eligible Measures Include:
Refrigerator Recycling
Freezer Recycling
Room Air Conditioner Recycling
Implementation Strategy
The Company intends to contract with one or more implementation contractors to market and implement the program, and track program data.
Regional roll-out and community outreach activities will be targeted to support program efficiency and success.

6. Preliminary Residential Programs: Residential Energy Efficient HVAC Equipment Program
Description
A program that provides incentives to residential customers for the implementation of cost effective, high efficiency HVAC and water heating measures.
Eligible Measures Include:
HVAC (Air and Ground Source Heat Pumps, Central Air Conditioners, Furnace Fans, HVAC Maintenance)
Water Heating (Energy Efficient, Heat Pump, Solar)
Implementation Strategy
The Company intends to contract with one or more implementation contractors to market and implement the program, and track program data.
Program services will be delivered to customers by qualified local contractors identified by the implementation vendors or manufacturers of eligible equipment.

7. Preliminary Residential Programs: Residential Energy Efficient Products Program
Description
A rebate program that encourages the purchase of lighting and certain appliances, that meet or exceed Energy Star or other efficiency ratings, through mail-in rebates and point-of-sale discounts (where applicable).
Eligible Measures Include:
Lighting (CFLs, Torchiere Floor Lamps)
Appliances (Clothes Washer, Clothes Dryer, Dehumidifier, Freezer, Refrigerator, Room Air Conditioner)
Other (Programmable Thermostat, Variable Speed Pool Pump)
Implementation Strategy
The Company intends to contract with one or more implementation contractors to market and implement the program, and track program data.
The Company envisions that various delivery channels and community based initiatives will be employed over the life of the program based on target customers, new opportunities, changing conditions, etc.
This program involves developing educational materials on the proper use and selection of high efficiency lighting along with product discounts, coupons and price buy-downs to incentivize customers to purchase CFLs and other qualifying EE products.

8. Preliminary Residential Programs: Residential Home Performance Program
Description
A program that targets overall home performance through energy education and the installation of energy efficient measures. Includes home energy audits and provides incentives to customers who install select recommended measures.
Eligible Measures Include:
Audits (Online, Checkup)
Giveaways (CFLs)
Home Performance with Energy Star (Comprehensive)
Implementation Strategy
The Company intends to contract with one or more implementation contractors to market, implement, and track Program data for both the Checkup and Whole Building Comprehensive audits.
The implementation contractor will coordinate Program services through a pool of local contractors to deliver services to customers.

9. Preliminary Residential Programs: Low Income Program
Description
A program that targets overall home performance through energy education, audits and weatherization services, and providing energy efficiency measures.
Eligible Measures Include:
Audits (Checkup with Direct Install measures)
Energy Efficiency Kits
Weatherization Services
Implementation Strategy
Program services will be delivered by the Department of Housing and Community Development (DHCD) Local Weatherization Agencies (“LWAs”) coordinated or augmented by additional private vendors as needed to enhance the capacity of DHCD agencies and contractors.
The Company will give specific consideration for program coordination with DHCD Weatherization Assistance Program as well as contract with a Program Administrator. The Program Administrator will handle contractor and customer issues and coordination of providing program services with home auditing contractors. Company staff will also be available to address customer and/or contractor issues as needed.

10. Program Overview

11. Questions

12. Appendix

13. Program Summary Information Preliminary Program Impacts (2012-2014)

14. Program Summary Information Preliminary Program Budgets (2012-2014)

15. Program Summary Information Preliminary TRC Results

16. Program Summary Information Preliminary Incentives