1 1 EmPOWER MD Overview of Delmarva Power’s and Pepco’s Plan

2 Delmarva Power and Pepco are pleased to share our plan for EmPOWER MD to the stakeholders in the General Awareness Campaign (GAC) Working Group. This presentation lays out initial planning for the campaign. Our company wishes to leverage the opportunity provided by EmPOWER MD as part of an integrated campaign to ensure maximum consumer awareness and enrollment in the energy efficiency and demand response programs scheduled to roll out in 2009, provide energy management tools for our customers, especially low-income consumers, and to improve overall satisfaction levels. We share the State’s goal for EmPOWER MD and look forward to working with other GAC stakeholders. Debbi Jarvis Vice President, Corporate Communications Pepco Holdings, Inc. Overview

3 Outline of Plan Charter Goals Objectives Audiences The Process Tasks Completed To Date Messaging Platform and Campaign Architecture Creative Direction Potential Innovative Approaches Potential Tactics Road Map Budgets

4 Charter 1.The GAC’s primary intent is to have consistent message concepts which promote awareness of: a)The EmPOWER MD Act: a partnership between utilities and the State to promote energy efficiency and conservation with messaging around: i.controlling your bill ii.planning for the future (reliability) iii.environment iv.benefits of ENERGY STAR b)The EmPOWER MD Surcharge: a common, consistent approach - the charge for a typical customer and the message that savings will more than offset the surcharge - will be sought but may vary among utilities. c)Call to action to participate in individual utility programs, including emphasis on low-income program availability. 2.The GAC Working Group should establish a common reference to communicate savings opportunities without conflict (ex. Plasma TVs use x% more energy than LCD TVs, where the x% is the same for all utilities). NOTE: Charter language taken from summary submitted by Allegheny Power.

5 Charter (Continued) 3.Flexibility of specific messaging should be encouraged to ensure messaging speaks to each utility’s market (example: Vampire Power vs. Phantom Power vs. Plug Power). 4.Each utility will administer the GAC within their service territories using the EmPOWER MD messaging concepts developed for item 1 above by the GAC WG as well as promoting individual utility programs through utility specific market messaging. 5.Measurement and Verification: Utilities will measure general awareness effectiveness through existing customer satisfaction surveys or other individual utility efforts. 6.The GAC will provide guidance rather than approve communication pieces. Utilities will be encouraged to supply the GAC with draft materials and the GAC members will be expected to respond within three days if they have input/suggestions. However, the utility will have the final determination on final ad copy. 7.The GAC will initially meet monthly and move to quarterly meetings after awareness programs are launched. NOTE: Charter language taken from summary submitted by Allegheny Power.

6 Educate Delmarva Power and Pepco Maryland customers on the need and benefits of conserving energy Build awareness of the availability of energy-efficiency programs and tools that Delmarva Power and Pepco offer Ensure maximum consumer enrollment in the programs Leverage scarce resources effectively as part of an integrated communications and marketing campaign Goals

7 Objectives Achieve Maryland energy reduction goals by educating Pepco electric distribution customers in Maryland about opportunities to reduce their electric bills through both energy efficiency and demand response programs Motivate customers to participate in one or more of the new programs Assist customer understanding of the benefits of these programs to the environment Provide clear, easily understood information so that customers can make informed choices Support objectives of the General Awareness Campaign Working Group

8 Audiences Building General Awareness A coordinated effort under EmPOWER MD should effectively leverage resources and collaborative thinking to raise general awareness levels of all consumers. Segmented Delmarva Power and Pepco will complement general awareness efforts with a segmented approach to optimize our ability to enroll customers quickly and effectively into our demand side programs. Focus on Low-Income Customers In these trying economic times, our company agrees that a special focus must be on low-income customers in order to make them aware of the full suite of tools, programs and funds available to help them better manage their energy consumption and bills.

9 EmPOWER MD Collaboration with Working Group Make Adjustments Execute Campaign Presentation of Initial Plan The Process

10 Tasks Completed To Date Participation in Working Group sessions Internal review of campaign objectives for EmPOWER MD Hiring a marketing agency, EcoAlign, to assist with the campaign and serve as a resource for the Working Group Development of initial creative directions and concepts connected to PHI’s marketing strategy and programs Identification of alternative and innovative approaches

11 Customer Data Analysis Filters

12 Families with kids in elementary, middle and high schools Age group: People with kids in University Age group: Identified Opportunity Segments

13 Creative Direction

14 Messaging Platform and Campaign Architecture Messages How are you connected? Clean savings Moments of truthCommunity leadership Essential to Your Day Essential to Your Day Connected to Your needs Connected to Your needs Committed to Service Committed to Service Critical to Your Future Critical to Your Future Plugged Into Your Day

15 PHI would be open to sharing our (PHI and EcoAlign’s) consumer research and collaborating on further research. One area that EcoAIign has been exploring is behavioral (value-based) approaches to messaging. PHI has begun to use social media and would encourage the use of social media tools, sites and practices to complement traditional campaign initiatives. Social media could form the basis of an Ambassador program directed at leaders in the community and employees. Research Social Media PHI has worked with other utilities to produce the “Day In The Life Of” (DILO) video and would encourage other such efforts that are aligned with EmPOWER MD and the individual utility initiatives. Collateral Potential Innovative Approaches

16 Advocate & Promoter of A Company Social Media and Ambassador Programs empower people to act and reach out inspire people to act Incentives Empowerment Emotional stimulate and reward people to act Participation

17 Potential Tactics Paid Advertising Social Media Utility Web Sites Utility Micro Sites Special Events Out of Home Earned Media

18 Joint Collateral Development Partnered with 8-Emmy Award winning multimedia production company, Part2Pictures, to express the vision through the creation of a Day In The Life Of a customer (DILO) in 2015 Utilities used the video for campaigns, regulatory presentations, employee communications, walk-in customer centers

19 Road Map

20 Annual Budgets Delmarva Power -- $ 950,000 Pepco -- $1,300,000

21 Contact: Tom Welle