1. Jim Massie / Bob Griffin / Kirk Shields February 25, 2013

2. Background 2013 Highlights 2013 Initiatives 2013 Budget & Benefits Summary Other Details Questions

3. Public Service Board Order $20.9M Investment $25M in Net Societal Benefits (7 Years) Actual investment requirements grow with inflation, net benefit requirements grow at Companys cost of capital GMP customers in former CVPS territory But-for test Equitable distribution by rate class Stakeholder process

4. Low Income Weatherization $6M in 2012 (already invested) $4M in 2013 (by December 1st) Thermal Efficiency ($2M) Other Investments ($8.9M) Electric Efficiency Renewables New & Emerging Technologies

5. Goals Open, flexible & transparent Encourage collaboration Consistent screening platform Introduction Workshops (Oct) Proposal Reviews and Comments (Nov-Dec) Initiative Selection (Jan) Lessons Learned

6. Coordination with GMP Energy Efficiency Fund Efficiency Vermont Public Service Department Launch electric and thermal initiatives Establish Forward Capacity Market process Renewable screening investigation Stakeholder workshops for 2014

7. Electric Efficiency Business Existing Facilities EverGreen Fund Agriculture Thermal Efficiency Home Performance with ENERGY STAR® Condominiums Building Performance Cold Climate Heat Pumps

8. Business Existing Facilities $1M Investment Efficiency Vermont Mutual Fund $2.9M Net Societal Benefits Evergreen Fund $50K Investment (Start-up Costs) Efficiency Vermont

9. Farm Programs $148K Investment Collaboration Efficiency Vermont VT Agency of Agriculture, Farms & Markets EnSave 80 Farms $743K Net Societal Benefits

10. Home Performance with ENERGY STAR $946K Investment Collaboration Efficiency Vermont NeighborWorks of Western Vermont Vermont Fuel Dealers Association Building Performance Professionals Association 188 Retrofits $1.1M Stipulated Net Societal Benefits (actual $1.5M)

11. Building Performance $196K Investment Collaboration Efficiency Vermont Common Sense Energy 38 Retrofits $236K Net Societal Benefits (actual $1M)

12. Condominium Efficiency Initiative $150K Investment Collaboration Shelter Analytics Energy Futures Group 33 Retrofits $180K Net Societal Benefits (actual $284K)

13. Cold Climate Heat Pumps $225K Investment Collaboration Efficiency Vermont NeighborWorks of Western Vermont Energy Futures Group/High Meadows Fund Vermont Fuel Dealers Association 45 Installations $270K Net Societal Benefits (actual $524K)

15. TypeInvestmentGross BenefitsCompletion Low Income Weatherization $6.0M$13.2M12/01/2012 $4.0M$8.8M12/01/2013 Electric Efficiency $1.2M$4.8M12/31/2013 $7.7M$23.1M12/31/2017 Thermal Efficiency $1.5M$3.3M12/31/2013 $0.5M$1.1M12/31/2014 Totals $20.9M$53.2M12/31/2017

16. Allows for innovation Stretches program budgets More customers served Heat Pumps (30) Condominiums (45) Greater actual Net Societal Benefits $3.8M vs. $3.4M

17. No impact to electric efficiency plans Faster ramp up of residential and business retrofits Heat Pump program budget drops by 33% Condominium initiative eliminated Claimed NSB constant, actual NSB drops by $400k Still substantial risks in achieving targets within 2013 due to start-up requirements and seasonality for thermal investments

19. Reporting ( Monthly, Annual) Annual Plan (November 15 th ) Savings Verification & Evaluation (PSD)