0 Proposed AMI and Dynamic Pricing Customer Education Plan for Pepco’s Maryland Service Area November 15, 2010

1 The proposed plan is divided into four education campaigns, which correspond to the major phases of the AMI rollout: Well-developed based on Delaware and D.C. experience. Plan provides framework for future development through research and collaboration with working group and marketing firm. Campaign 2: Meter deployment and installation Campaign 3: Phased enablement of customer benefits Campaign 1: Pre-deployment awareness Today’s Focus Campaign 4: Phased rollout of dynamic pricing

2 Proposed Plan Structure Planning –Research –Target Audiences –Goals –Strategy Development Implementation –Campaigns –Tactics –Timeline –Budget Performance Measurement

3 Residential Small to mid-sized businesses Proposed Target Audiences

4 To create general awareness of the installation plan to help customer prepare for and feel comfortable with the exchange: –Explain what we’re doing and how: Exchanging old mechanical meters for new digital “smart meters” –Share when we’re doing it: June 2011-Dec –Explain why we’re doing it. So that in the future, Customers can make more-informed choices through enhanced information Customers can better manage their energy use through new tools, programs and eventually new pricing options Utility can provide improved service and reliability The environment can benefit from lower emissions –Motivate action: Encourage customers to enroll in My Account online service to prepare for future benefits Proposed Goals for 1 & 2

5 Enabling Strategies Customer Education Strategies Residential Small to Mid-sized Businesses Personalized Communications Integrated Branding Customers Proposed Plan Overview Mass Media Direct Mail Internet Advertising Community / Low-Income Outreach (Human) Energy Advisor (Human) Public Relations Risk Mitigation Employee Engagement Stakeholder Collaboration Voice of the Customer Research

6 Work collaboratively with the Maryland Commission, People’s Counsel, AARP, and other stakeholders to develop and implement customer education plan Take advantage of cooperative opportunities to communicate the plan Capitalize on each others’ relationships with nonprofits, social service agencies, etc., throughout Maryland to further plan goals Stakeholder Engagement

7 Head-off negative customer experiences and potential negative press that can influence public opinion Use special cross functional team to track customer inquiries, concerns and issues Watch for trends in issues and suggest and implement adjustments to plans Collect and handle escalated complaints Risk Mitigation

8 Create and heighten awareness around AMI activities and plans Develop AMI advocates that can deliver message to friends, family, and neighbors competently and confidently Develop activities and materials such as fact cards and newsletters to support engagement effort Employee Engagement

9 Direct Mail –Letters –Factsheets –Newsletters Internet Social Media –YouTube –Twitter –Facebook Advertising –Radio –TV –Print –Cinema –Transit –Web Media and Public Relations Mass Media Channels

10 Human factor for conversing with customers and showing customers what to do Provide consultation and market available programs and services Energy Advisors provide expertise around AMI to general population, mainly residential Energy Engineers provide more technical expertise to both residential and business customers Energy Advisor Services

11 Use existing relationships within communities Partner with PSC, OPC, AARP, social service agencies, civic and community associations, non- profits, chambers, etc. Conduct community workshops Community Outreach

12 Campaign 1: General Awareness –Web site and social media –Customer newsletters –Press releases –Community outreach Campaign 2: Deployment Communications –Tactics used in Campaign 1 plus: –Letter to public officials –Letter to customers –“Preparing for installation” fact sheet –Door hanger Proposed Tactics

13 Sample Letter to Customers

14 Sample Fact Sheet

15 Sample Door Hanger

16 Sample Letter to Legislators

17 Sample Press Release

18 Sample Web Page

19 Campaign 1: General Awareness (April/May 2011) Campaign 2: Deployment (June 2011 through December 2012) Campaign 3: Phased Benefits Enablement (TBD based on network optimization, activation of meters, and system integration) Campaign 4: Dynamic Pricing (TBD) Proposed Plan Timeline

20 Customer awareness (Baseline awareness study vs. future studies) Communications effectiveness (customer research) Program enrollments (“My Account”) Web metrics Social media metrics Customer satisfaction and certain drivers as measured by the company’s annual MSI customer satisfaction survey (Energy Information, Bill Accuracy, Customer Service) Number of escalated complaints Attendance at community outreach events Proposed Performance Measures

21 Objectives Pepco requests that the Maryland AMI Working Group gain general consensus on campaigns 1 and 2, general awareness and meter deployment and installation, so Pepco can move forward with meter deployment. Campaigns 1 and 2 are presented on pages 8 – 18 in the proposed plan. The sample materials are submitted to the group for review and comment.

22 Objectives cont’d. In addition, Pepco requests that the Group gain general consensus on the approach to completing the remaining portions of the plan framework—benefits enablement and dynamic pricing. Set a deadline for completing the plan framework with the recognition that the plan will be an evolving document and that a marketing firm will likely be hired to develop and execute the plan’s specifics in terms of messaging, branding, tactics, timeline and budget.