UGI Utilities – Electric Division Energy Efficiency & Conservation Collaborative Meeting July 21, 2010

About UGI Electric Division Service Territory – Luzerne and Wyoming counties – Surrounded by PPL Electric Size – ~55,000 Residential Customers – ~8,000 Commercial and Industrial Customers – ~1,000,000 MWh/yr in Sales

Why we are here Act 129 – Energy Efficiency and Conservation Program (EE&C) – Applied only to Electric Utilities with greater than 100,000 customers PUC Secretarial Letter requested Electric Utilities with less than 100,000 customers to file voluntary EE&C Programs UGI Electric has decided to file a voluntary EE&C Program

UGI Electric EE&C Plan Goals Reductions to Normalized Sales Fiscal 2009 Sales - ~970,000 Mwh – 1% by tentative date of May 31, 2012 – 3% by tentative date of May 31, 2014 Craft a program within a limited budget that meets standard load reduction targets Fiscal 2009 Revenue - ~$120 Million Minimize costs while maximizing benefits

Proposed Programs

Residential CFL Cost – $82,000 Savings per participant Mwh Participants – 63,848 Total Savings – 2,618 Cost per Mwh Saved - $31.32/Mwh

Residential Energy Education Kits Cost – $78,000 Savings per participant – 0.06 Mwh Participants – 1,300 Total Savings – 75 Cost per Mwh Saved - $

Residential Appliance Rebates Cost – $203,000 Savings per participant Mwh Participants – 1,660 Total Savings – 371 Mwh Cost per Mwh Saved - $546/Mwh

Residential Appliance Recycling Cost – $125,000 Savings per participant – 0.15 Mwh Participants – 9,698 Total Savings – 1,435 Mwh Cost per Mwh Saved - $87.45/Mwh

Residential Water Heating – Fuel Switching Cost – $450,000 Savings per participant – 4.88 Participants – 500 Total Savings – 2,438 Mwh Cost per Mwh Saved - $184.62/Mwh

Residential Dryer – Fuel Switching Cost – $83,000 Savings per participant – 1.08 Mwh Participants – 100 Total Savings – 108 Cost per Mwh Saved - $772.09

Residential Heating – Fuel Switching Cost – $430,000 Savings per participant – 8.03 Participants – 50 Total Savings – 402 Cost per Mwh Saved - $ /Mwh

C&I Custom Cost – $604,000 Savings per participant /Mwh Participants – 49,184 Total Savings – 1,756 Mwh Cost per Mwh Saved - $343.81/Mwh

HVAC Tune-Up Cost – $28,000 Savings per participant – 1.58 Mwh Participants – 176 Total Savings – 277 Mwh Cost per Mwh Saved - $100.66/Mwh

C&I CHP Cost – $60,000 Savings per participant Participants – 1 Total Savings – 406 Cost per Mwh Saved - $147.78

C&I Appliance Rebate Cost – $348,000 Savings per participant – 0.60 Mwh Participants – 1,853 Total Savings – 1,115 Mwh Cost per Mwh Saved - $312.06/Mwh

Summary Cost – $2,491,000 Total Savings – 10,998 Mwh Cost per Mwh Saved - $226.45/Mwh

Timing Filing Date: September 2010 Implementation of the UGI Electric EE&C Program will follow the PUC approval of the EE&C Plan Proposal Program duration - 3 years from the implementation date

Cost Recovery UGI Electric will propose a cost recovery mechanism Recover Costs from Customer Groups Receiving Benefits Roughly Allocate Costs/Programs to R and C&I based on Sales Ratios Strongly Considering Clause to Recover Lost Revenues

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