PPL Electric UtilitiesAct 129 EE&C Programs

2013 PPL Electric Utilities

• Four years to reach goals starting June 1, 2009 and ending May 31, 2013

• The EE&C Plan had to be cost-effective and needed to provide equity across customer classes

• The available funding of the 4 year Plan was capped at an average of $61.5 million/year

Act 129 Phase I - Requirements

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• Annual changes to the Technical Reference Manual (TRM)

• Not an exact science. Difficult to accelerate and decelerate quickly

• Economy. Customer’s ability to invest funds in energy efficiency

• Recognizing value of energy efficiency. Customer’s willingness to invest in energy efficiency

• Meeting a wide range of stakeholder expectations

• Fluctuating price of energy

Challenges

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Act 129 Phase IDollars and Savings

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PUC Requirements

PPL EUPhase I Plan

PPL EUPhase I Results

$246 million (plus SWE expenses)

$ 245 million(includes SWE expenses)

$ 241 million (includes SWE expenses as of

7/31/2013)

1,146,000 MWh/yr.(verified)

1,362,000 MWh/yr.(verified)

1,549,000 MWh/yr.(reported as of 7/31/2013)

•More than 9.7 million CFLs distributed through approximately

400 stores and community events

•250,000 rebates processed

•Small businesses completed 4,000 jobs in the direct discount program

•Over 55,500 appliances recycled

•250 stores promoted energy efficient appliance rebates

Act 129 Phase I – How did we do?

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• About 300,000 customers -- almost 25 percent of all PPL Electric Utilities customers participated. (not counting CFL purchased).

• Many received rebates for more than one measure. • Total number of measures – 755,504

Act 129 Phase I – How did we do?

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Act 129 Phase I – How did we do?

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Customer satisfactionFor the year of 2012, top 3-box scores (8,9,10 on 10-pt scale):

•Rating on PPL’s willingness to help customers reduce their spend – rose from 32% in 2007 to 49% in 2012

•Rating on providing customers with information about energy efficiency programs and rebates for their home– 60% in 2012

 •PPL EU overall satisfaction score for customers who are aware of energy efficiency programs 77% vs. 74% for those not aware

•PPL EU overall satisfaction score for customers who have participated in energy efficiency program 79% vs. 75% for those who haven’t participated

Act 129 Phase I – How did we do?

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Phase I PY4 Survey Findings

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Top three ways participating customers learned about the programs

1. Installers, contractors, home builders and remodelers2. PPL Electric Utilities bill insert3. Friend, relative, colleague

• Three years - started on June 1, 2013 and ending on May 31, 2016

• Offer at least one energy-efficiency program for each customer sector and offer a reasonable mix of energy-efficiency programs for all customer sectors

• Offer at least one “whole building program” for residential and commercial customer sectors

• Achieve at least 25% of the energy reduction target in each of the three program years

Moving on….Act 129 Phase II - Requirements

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• Achieve a minimum of 4.5% (36,948 MWh/yr.) of the total required energy reductions from the low-income customer sector

• Achieve a minimum of 10% (82,107 MWh/yr.) of the total required energy reductions from GNI customers

• Meet the Total Resource Cost Test (TRC) of ≥ 1 with the portfolio of programs

• Allocate the cost of measures to the customer class(es) that receive(s) the benefit of those measures

Act 129 Phase IIRequirements -- continued

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Act 129 Phase II Dollars and Savings

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PUC Funding Cap PPL Electric Utilities Phase II Plan

$184.5 million $183.7 million

821,072 MWh/yr. 841,957 MWh/yr.

•Appliance Recycling

•Lighting

•Rebates for efficient equipment

•Home Energy Report cards

•New home construction incentive

•Home energy audits and weatherization

•Student and Parent Energy-Efficiency Education

Residential Programs

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MWh/yr. Savings

% of Total Savings

Cost (000)% of Total

Costs

377,300 45% $58,000 31%

•Low-Income WRAP

•Home Energy Report cards for low-income customers

•E-Power Wise Program

Low-Income Programs

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MWh/yr. Savings

% of Total Savings

Cost (000)% of Total

Costs

22,000 3% $18,000 10%

•HVAC

•Lighting• Direct discount• Occupancy sensors

•Motors and refrigeration

•Farm audit and equipment

•Custom rebates

Small and Large C&I Programs

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SectorMWh/yr. Savings

% of Total

Savings

Cost (000)

% of Total Costs

Small C&I 157,700 19% $43,000 23%Large C&I 191,400 23% $38,000 20%

•HVAC

•Lighting• Direct discount• Occupancy sensors• LED/area street lights

•Motors and refrigeration

•Custom Rebates

•School Benchmarking

•Continuous Energy Improvement

•Master-Metered Low-Income Multifamily Housing

GNI Programs

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MWh/yr. Savings

% of Total Savings

Cost (000)% of Total

Costs92,000 10% $29,000 16%

Amanda Morrison

ajmorrison@pplweb.com 610-774-4275

PPL Electric Utilities Contact Information

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