SAVING ENERGY AND IMPROVING COMFORT THROUGH ENERGY EFFICIENCY HOME IMPROVEMENTS KHP Phase I Results and Phase II Snapshot MARCH 14, 2013

KHP Program Results KHP Phase I EPA Home Performance with Energy Star Partner of the Year 1 of 10 Statewide HPwES Programs – 5th in production in 1 year 144 Contractors/Firms Signed up with KHP Serving 120 KY Counties Over 25 Participating Utility Partners Average Energy Efficiency Achieved = 26% per job Training to Contractors Best Practices & KHP 101 = 200 Contractors Software Training = 350 Rebate and Loan Training = 150 Contractors

KHP Program Results To Date  Completed and Paid Jobs = 1016 including 116 with TVA  Rebates = 939 and Loans = 77  Whole House Evaluation Rebates Paid – 1,071 (plus an additional 338 with TVA contractors)  76% Conversion Rate Evaluations to Completed Jobs  Total Development of Jobs to Date - $10,817,929  Subsidy Leverage per Job = 5-1  Jobs Completed in 71 Kentucky Counties

KHP Phase II Key Aspects Program Re-design  Sustainability - Revolves Funding  Balances Leverage -vs- Program Income  Scalable  KHP Phase II Financing of Choice  Easy to Use Contractor Driven Program  KHP Phase II Program is a Platform to Build Upon  Utilities  Non Profits  Private and Public Funding  Professional Market Presentation – Contractors and Public

KHP Phase II  Rebranding to KHP Phase II with Focus on Loan Products  WHEEL Secondary Market Execution  HUD Power Saver Loans  Other Revolving Loan Pools, Investments and Pilots Greater Cincinnati Energy Alliance MACED On Bill Pilot EE Manufactured Housing Replacement Pilot w Next Step  Integration Opportunities for Utilities Available including: Loan buy down money, capital, loan loss reserve, marketing.

KHP Phase II Loan Products Single Measure “KHP the EE Financing of Choice”  Equipment and Single Measure Loan Products  % Fixed Rate Unsecured Loan up to $20,000 or  6.99% Secured KHP Power Saver Loan $15,000 - $25,000  Low Documentation Required  Quick Pre-Approval and Approval Process  Easy for Contractors and Consumers  Desktop Review and Quality Assurance Provided  Walk Through Evaluation by KHP Authorized Evaluator

KHP Phase II Loan Products Whole House  Whole House –  % or % Fixed Rate Unsecured Loan up to $20,000 or  6.99% Fixed Rate Secured Loan $15,000 - $25,000  Full BPI or Equivalent Test In and Test Out  Desk Top Review and Quality Assurance Program  $100 Credit for Evaluation’s on Completed Jobs  Must Meet KHP Phase II Minimum Whole House Requirements

KHP Phase II Loan Products Geo Thermal  % or % Fixed Rate Unsecured Loan up to $20,000 or  6.99% Fixed Rate Secured Loan $15,000 - $25,000  Full BPI or Equivalent Test In and Test Out  Desk Top Review and Quality Assurance Program  $100 Credit for Evaluation’s on Completed Jobs  Equipment Requirements Apply

KHP Phase II How to Participate  Current KHP Contractors Complete Phase II Addendum  New KHP Contactors Complete Phase II Application and Required Forms - Submit Forms to AFC First  Complete KHP Required Trainings  KHP 101 and Best Practices  Updated Software training (Compass and Surveyor)  KHP lending training (AFC First)

KHP Phase II Next Steps  Complete and Test New KHP Compass Software Updates  Update KHP Website and Marketing Materials  Recruit and Train Contractors\  Soft Launch May 2013  Ramp up Media and Marketing Fall 2013  Seek Additional Program Funding  Continue and Secure Utility Program Integration

KHP Program Phase II Contact Information Andrew Isaacs KHP Program Manager Kentucky Housing Corporation Cell: Matt Fiscus KHP Senior Field Technician Kentucky Housing Corporation Cell: