1. KEEA Conference September 21, 2010

2. - 2 - Act 129 Plan Goals Energy Efficiency (Consumption) Savings target of 1% by May 31, 2011 (394M kWh) Savings target of 3% by May 31, 2013 (~1.2B kWh) Demand Reduction (Demand) Reduce peak demand (100 hours of highest usage) by 4.5% by May 31, 2013 (355MW) Minimum of 10% of consumption reductions will be obtained from federal, state and local government, including municipalities, school districts, institutions of higher education and non-profits Failure to achieve usage and demand savings will result in penalties of $1M to $20M ACT 129

3. - 3 - PECO Smart Ideas is a suite of Energy Efficiency and Demand Reduction programs for PECO residential and commercial customers. PECO Smart Ideas launched March 1, 2010 PECO Smart Ideas

4. - 4 - 1-888-5-PECO-SAVE (1-888-573-2672) www.peco.com/SmartIdeas

5. - 5 - PECO Smart Equipment Incentives The PECO Smart Equipment Incentives homepage contains links to applications, program details, commercial contractors and other valuable resources to help you get your project started

6. - 6 - PECO Smart Equipment Incentives PECO Smart Equipment Incentives available now Incentives retroactive to July 1, 2009 850 applications received $11.5M potential incentives Available to commercial, Industrial, governmental, institutional and non-profit businesses Financial incentives to support the installation of high efficiency equipment Prescriptive measures: menu-based with predetermined savings and incentive levels Custom measures: per kWh or KW saved Partial reimbursements for energy audits for non-profit, governmental, and institutional customers completing 50% of the recommended audit measures

7. - 7 - PECO Smart Equipment Incentives Projects must meet various program and technical requirements Specifications for each measure are included in the program application Work with your building owner or facilities manager to submit an application Contact 1-888-5-PECO-SAVE for assistance in completing the application

8. - 8 - PECO Smart Equipment Incentives Prescriptive Measures Supported Lighting Incentives available to reduce the initial investment in energy-efficient indoor, outdoor, and garage lighting projects Includes lighting and occupancy controls HVAC Incentives to support renovating existing systems and installing high- efficiency systems Includes controls for energy management systems Motors and Drives Upgrading equipment to high-efficiency motors Refrigeration and Food Service Incentives offered for cost-effective, energy-saving commercial freezers and other food service measures

9. - 9 - PECO Smart Equipment Incentives Lighting Lighting costs can account for 30-60% of your annual electricity costs Todays new lighting options are designed to save energy and money CFLs: 75% savings, < 6months payback T12 to T8 or T5, 30-40% savings Occupancy sensors: 20-60% savings High output linear fluorescents 4 ft linear fluorescents HID street lights LED traffic signals Day lighting controls LED Exit signs Exterior and garage HID Interior HID - 9 -

10. - 10 - PECO Smart Equipment Incentives Prescriptive HVAC Measures HE Unitary and Split AC Systems HE Air- and Ground-Source Heat Pumps HE Air- and Water-Cooled Chillers HE Room AC HE Package Terminal AC and Heat Pumps Occupancy Sensor Energy Management System

11. - 11 - PECO Smart Equipment Incentives Energy Audit Incentive Available to our non-profit community partners Incentives can support 50% of the cost of an audit, up to $10,000 Study must include more than one energy efficiency measure Implementation of at least 50% of the identified kWh is required See program application for full details and requirements

12. - 12 - Smart Equipment Incentive Check PECO presented the City of Philadelphia with over $3.2 million in potential incentive for traffic signal replacement

13. - 13 - Additional Incentives and Financing Resources Business Greenworks Loan Fund Low interest loans to support energy efficiency retrofits and new construction projects for Philadelphia based businesses and non-profits TRF Non-Profit Energy Savings Program Loans for energy efficiency improvements and energy conservation practices PA Commonwealth Financing Authority Clean Energy Program Loans and grants to companies, small business, and select non-profit & government organizations Clean energy projects - buildings, equipment and land development activities PA Sunshine Solar Program Rebates for solar installations for small business Energy Star Benchmarking Tool Evaluate & assess building energy use www.peco.com/SmartIdeas

14. - 14 - PECO Smart Ideas Website The Smart Ideas Website provides customers with an educational platform and comprehensive view of all available programs

15. - 15 - PECO Smart Ideas Results peco.com/SmartIdeas More than 200,000 visits 1-888-5-PECO-SAVE Averaging close to 2,500 calls per week

16. - 16 - PECO Smart Home E-Audit On-line tool to helps you better understand where your energy dollars are going and how to identify potential savings Provides detailed report of your home energy use, including month- to-month comparisons, and suggestions on how you can save even more by upgrading to more efficient equipment You will need your 10 digit PECO account number and Zip Code to complete the audit More than 12,000 calculations to date

17. - 17 - PECO Smart Lighting Discounts Since program launch in October 2009, PECO customers have purchased more than 3.6 million CFLs saving 170,164 MWh CFLs in more than 700 retail stores 14 W bulb most popular SKU (= 60 W incandescent) CFL recycling available at participating retail stores Received 2010 ENERGY STAR® special recognition award

18. - 18 - PECO Smart Home Rebates Rebates of up to $400 on ENERGY STAR® qualified heating and cooling equipment Rebates of up to $100 on ENERGY STAR qualified appliances HVAC equipment and appliances installed on or after July 1, 2009 are eligible Program includes discounts applied at retail stores on ENERGY STAR lighting fixtures and LED bulbs More than 83.000 rebate application received saving 13,410 MWh to date

19. - 19 - PECO Smart Appliance Recycling Program offers free pickup of older, working units and customer incentive $35 for refrigerator/freezer $25 for window air conditioner (with refrigerator or freezer pickup) Rebate check is mailed 4-6 weeks after pick up Shared recycling facility with PPL and First Energy opened on March 10, 2010 in Hatfield, PA 95% of components recycled More than 9,000 appliances picked up saving 13,410 MWh

20. - 20 - PECO Smart A/C Saver Earn credits of up to $30 a month on your electric bill for the summer usage months June through September and reduce your demand for electricity Credit is applied to your bill the months following summer usage months (July through October) A device is mounted on the outside of your home near your central air conditioning unit The device remotely manages your air conditioning system during peak demand periods Your systems fan still runs during events FPO

21. - 21 - Additional Incentives and Financing Resources Residential Energy Works Home energy audit rebate program designed for homeowners in the five county area to help them reduce energy consumption, increase comfort and save money on utility bills Keystone Help Pennsylvania's Special Low Rate, Low Payment Financing Program for Energy Efficiency Home Improvements Pennsylvania Incentives for Renewables and Efficiency Comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency Consumer Energy Tax Incentives Significant tax credits for energy efficiency home improvements from the American Recovery and Reinvestment Act Energy Efficient Mortgages Program Helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficiency features to new or existing housing as part of their FHA-insured home purchase or refinancing mortgage www.peco.com/SmartIdeas

22. - 22 - 1-888-5-PECO-SAVE (1-888-573-2672) www.peco.com/SmartIdeas

23. - 23 - THANK YOU!