KEAA CONFERENCE 2010

1. KEAA CONFERENCE 2010 PGW Energy-Efficiency Programs September 21, 2010

2. Current ProgramsConservation Works Program (CWP) • PGW currently spends around $2 million annually to provide 2,500 free retro-fits to low-income residential customers Weatherization Workshops • PGW sponsors 50 neighborhood weatherization workshops annually, demonstrating simple air sealing techniques. Combined Heat and Power (CHP) • Burn single fuel to generate electricity and space and water heating on-site, results in ultra-low emissions and little energy lost to waste. • PGW is coordinating with DEP and the City to encourage installation of CHP equipment in large Philadelphia commercial and institutional facilities.

3. New Demand-Side-Management (DSM) Program • Comprehensive portfolio of six programs to help 100,000 PGW residential, commercial, industrial and municipal customers become more energy efficient. • Over 5 years, $60 million portfolio will generate over $115 million in savings to all PGW customers, and • Will reduce greenhouse gas emissions, including 1.24 million tons of carbon dioxide - the environmental equivalent of taking 200,000 cars off Philadelphia’s streets. • Expected to create as many as 1,000 new jobs, including new employment opportunities related to PGW programs and indirect jobs from increased local spending. • Encouraging hiring from low income community

4. DSM PROGRAM DESCRIPTIONS

5. Appendix

6. Low-Income Residential Retrofit Program • Launch: January, 2011 • Target Market: • PGW Low-income customers (CRP participants) • Highest Users • Accessing the Program • PGW selects eligible customers, prioritized by usage • PGW contractors contact selected customers; provide treatments • No application process • Efficiency Technologies Targeted: • Cost-effective measures identified through initial energy audit • Instrumented air-sealing; attic/wall insulation; high-efficiency windows; high-efficiency furnace early replacement • Financial Strategies: Free installations

7. Premium Efficiency Gas Appliances Rebates • Launch: April, 2011 • Target Market: • Residential and small business customers utilizing gas space and water heating equipment • Accessing the Program • Customer applications • PGW program administrator to provide information through equipment manufacturers, distributors, retailers/vendors, engineers, contractors • Efficiency Technologies Targeted: • High-efficiency clothes washers, space- and water-heating equipment • Financial Strategies: • Financial incentives covering 80% of the incremental cost of premium-efficiency equipment

8. Commercial & Industrial Retrofits Program • Launch: September, 2011 • Target Market: • PGW Commercial & Industrial customers considering supplemental measures (e.g., boiler controls), early retirement of inefficient equipment • Accessing the Program • Customer applications • PGW program administrator to provide information through property developers, managers, owners, real estate agents, architects, engineers, builders, contractors • Efficiency Technologies Targeted: • High-efficiency boilers and furnaces for space and water heating; high-efficiency building controls; high-efficiency shell improvements • Financial Strategies: • Customized incentives calculated based on payback buy-down, including electric and other resource savings.

9. Premium Efficiency Commercial & Industrial Equipment Rebates Program • Launch: November, 2012 • Target Market: • Buyers and sellers of commercial/industrial gas heating and non-heating equipment • Accessing the Program • Customer applications • PGW program administrator to provide information through equipment manufacturers, distributors, retailers/vendors, engineers, contractors • Efficiency Technologies Targeted: • High-efficiency heating and process equipment • Financial Strategies: • Financial incentives covering 80% of the incremental cost of premium-efficiency equipment

10. High-Efficiency Construction Program • Launch: November, 2012 • Target Market: • New construction, remodeling, and renovation efficiency improvements for residential and commercial buildings • Accessing the Program • Customer applications • PGW program administrator to provide information through property developers, managers, owners, real estate agents, architects, engineers, builders, contractors • Efficiency Technologies Targeted: • High-efficiency boilers and furnaces for space and water heating; high-efficiency building controls; high-efficiency shell improvements • Financial Strategies: • Financial incentives covering 80% of the incremental cost of premium-efficiency equipment and efficiency technologies

11. Comprehensive Residential Retrofit Program • Launch: March, 2013 • Target Market: • High-use residential heating customers • Accessing the Program • Customer applications through HPWES-certified contractors; material and equipment suppliers • Efficiency Technologies Targeted: • Cost-effective measures identified through initial energy audit • Instrumented air-sealing; attic/wall insulation; high-efficiency windows; high-efficiency furnace early replacement • Financial Strategies: • Financial incentives to buy down projects to a 2-year payback period

12. For Additional Information For additional information on PGW’s DSM program, please contact: Elliott Gold Manager, Energy Efficiency Programs Philadelphia Gas Works Elliott.Gold@pgworks.com