1. Energy Efficiency, Conservation & Low-Income Households Mike Villanueva Strategic Marketing Coordinator MLGW March 31, 2016 Knoxville, TN

2. The Commercial Appeal - Sept. 17, 2015 “An estimated 29.8 percent of Memphians were living below the poverty line last year, up from 27.7 percent in 2013, according to the figures from the Census Bureau’s American Community Survey.” “In raw numbers, the figures show 191,609 of the estimated population of 641,946 last year lived on less than the federal poverty level of $11,770 for individuals and $24,250 for a family of four.” 2 US Census Bureau QuickFacts

3. MLGW Residential Services Customer Relations Mission Statement: “To improve the quality of life for our customers through advocacy, education, programs and policy development.” 3

4. Conservation Days  Hosted monthly throughout the year at MLGW Community Offices, community agencies, colleges and businesses in the City of Memphis and Shelby County  Energy kits and energy-efficiency/conservation literature is distributed 4 2015 6,959 Energy Kits distributedPotential kWh savings = 403,622

5. Energy Smart Workshops  Free workshops can be scheduled by any neighborhood association, civic group, church or private organization  90-minute session provides participants with an overview of energy- efficiency information, energy-saving tips and hands-on demonstrations. Participants receive a large energy kit filled with do-it-yourself, energy- efficiency products. 5 2015 683 Large Energy Kits distributedPotential kWh savings = 113,378

6. Energy Doctor  Free, in-home energy audit conducted by MLGW Energy Technicians (Home Energy Rating System certified)  Energy Technician identifies energy-saving opportunities by analyzing HVAC equipment, water heating, attic insulation and air infiltration to the building envelope  Homeowner receives customized energy-saving tips and an energy kit 6 2015 1,189 Energy Kits distributedPotential kWh savings = 68,962

7. Rental Ordinance  2009 - MLGW became the first utility to implement an energy- efficiency ordinance for rental properties  Identified and targeted key zip codes based on consumption per square foot  Properties inspected for minimum energy-efficiency standards:  Building envelope (no holes or open penetrations in walls or roof)  No broken glass or missing window panes  At least R19 attic insulation  Must have working heating and water heating systems  Must have a working thermostat  No water leaks 7  If inspection failed and repairs not made, landlord receives a citation to appear in Environmental Court and is subject to a $25 per day fine until repairs are complete  To date, MLGW has conducted over 775 Rental Ordinance inspections and no landlord has appeared in Environmental Court for non-compliance

8. 8  Voluntary green building program created by MLGW to promote the use of energy-efficient and environmentally-friendly materials and techniques in new-home construction  EcoBUILD standards exceed the 2003 International Energy Conservation Code (IECC) that was adopted by the State of Tennessee in 2009  EcoBUILD homes inspected twice: before drywall is installed and at building completion  By following EcoBUILD standards, homes use 30% less energy  Since 2004, over 775 EcoBUILD-certified homes EcoBUILD Program

9. Project CARE - Overview  Program sponsored by MLGW and Metropolitan Inter- Faith Association  Energy-efficiency/weatherization program designed to provide up to a $1,500 grant for approved repairs or replacements: AC condensers, attic access hatches, attic insulation, doors, ductwork, furnaces, gas leaks, water leaks and windows (all measures identified and inspected by MLGW Energy Technicians)  Eligibility requirements: homeowner – resident Shelby County; elderly (age 60 and above) or disabled; maximum$32K combined household income; property taxes must be current; no diversion history with MLGW 9

10. Project CARE – Funding and Results  Funded by Share the Pennies round-up program:  Over 7K participating MLGW customers  Average donation per customer =.50 per month  Maximum donation per customer = $11.88 per year  Since 2013, Project CARE has improved over 200 homes  Total repair spend = $200K  Average spend per home = $930 10

11. MaxImpact - Overview  Loan program designed to provide up to $2,500 for approved energy-efficiency/weatherization repairs or replacements: AC condensers, attic access hatches, attic insulation, doors, ductwork, furnaces, gas leaks, water leaks and windows  All measures reviewed and inspected by MLGW Energy Technician  Low-interest loan (3%) is repaid on utility bill with a seven-year term 11  Eligibility requirements: homeowner or landlord – resident Memphis or Shelby County; maximum $50K combined household income; property taxes must be current; no diversion history with MLGW; satisfactory credit check

12. MaxImpact – Funding and Results 12  Cooperative agreement funded by $2,000,000 loan from TVA  Since 2003, 851 loans transacted  Total repair spend = $1.901M  Average loan amount = $2,234  Program re-launch goal = approximately 778 loans  Total repair spend goal = approximately $1.945M

13. Aging in Place Program 13  Partnership launched May 2015 between Habitat for Humanity, SOS and MLGW –– $4M grant (initial funding)  Serves low-income seniors and focuses on accessibility improvements, mobility modifications, weatherization enhancements and critical home repairs to help seniors live in their homes longer  Eligibility requirements: resident Shelby County; elderly (age 60 and above); household income requirement based on total number of occupants; property taxes must be current; mortgage must be current  Initial energy audit and final inspection conducted by MLGW Energy Technicians  Goal = complete over 350 homes by end of 2016

14. MLGW Annual Residential Electric Consumption (kWh) 14

15. Thank you. 15