New Jersey Clean Energy Program 2012 Programs and Budgets Applied Energy Group Presentation to the New Jersey Board of Public Utilities November 3, 2011

2012 Programs and Budgets Process – Prepare 7&5 report to estimate 2011 carry over of unspent/uncommitted funds – Prepare proposed allocation of available 2012 new funding by program sector – Honeywell, TRC, EDA and OCE presented draft programs and budgets which were discussed at June, July, August and September meetings of the EE and RE Committees – Interested stakeholders presented ideas for changes to existing programs and for new programs and technologies 2

2012 Programs and Budgets Honeywell, TRC, the Utilities and the OCE submitted draft programs and budgets (compliance filings) in early October which were circulated to the public for comment The utility filing includes the Comfort Partners low-income program and support for the CleanPower Choice Program The OCE filing includes: —OCE Oversight: administration/staff salaries and overhead —Program Coordinator services —Evaluation and Related Research CEEEP: program evaluation and cost-benefit analysis Funding Reconciliation Financial Audits 3

2012 Programs and Budgets OCE Oversight continued: – Programs managed by EDA and Sustainable Jersey – EE and RE programs or program components managed by OCE Large CHP Solicitation RE Grid Solicitation Offshore wind rebates and studies New financing programs Green Jobs Training 4

2012 Programs and Budgets Allocation of new funding from 2012 CRA Order: 5

2012 Programs and Budgets 6

Proposed 2012 EE Budgets 7

Proposed 2012 RE Budget 8

Proposed 2012 EDA Budget 9

Proposed 2012 OCE Budget 10

2011 Program Results Spending is within 10% of budget for most mature programs. A large percentage of unspent funds is related to new program start up and ramp up. i.e. it takes time to develop a new programs and to attract customers to participate in a new program. – However, State procurement policies require that funds be available prior to making commitments 11

2011 Spending verse Budget Uncommitted/unspent funds in large part related to start up of new programs. Overall estimated 2011 results: 12

2011 Program Results 13

2011 Program Results Cont. 14

2011 Program Results – The NJCEP can spend and commit up to: cash held in the CEP trust Fund + anticipated receipts through the end of the FY 15