1. Welcome and Introductions Program Description Program Status Update Compliance Update Evaluation Measurement & Verification (EM&V) Demand Response.

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Welcome and Introductions Program Description Program Status Update Compliance Update Evaluation Measurement & Verification (EM&V) Demand Response Questions

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Agenda

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These goals were measured against Duquesne’s June 2009 – May 2010 kWh sales forecast with provisions made for weather adjustments and extraordinary loads that the EDC must serve. – 140,885,117 kWh by 2011 – ACHIEVED – 174,001,337 kWh– 422,565,351 kWh by 2013

Act requires a 4.5% reduction by May 31, 2013 in the peak 100 hours of demand

This goal was measured against the 2007 June – September average of the 100 hours of peak demand– 113 MW in the summer of 2012

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Overview

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Residential ProgramsEnergy Efficiency Program

Rebate Catalog – Rebates on energy star appliances, programmable thermostats, CFL’s and much more.Online Home Audit – A detailed, interactive analysis of how customers can save energy and money in their homes, plus easy links to rebates.Refrigerator/freezer Recycling – A check for $35 and free disposal of the old refrigerator/freezer.School Energy Pledge Program – Teaching students how to save energy at school and at home.Low Income Program – Reaching out to help all customers gain the benefits of saving energy.

Demand Side Response ProgramResidential Direct Load Control Program– Cycling off electriccentral air conditioners

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Customer Program Segments• Commercial Office Buildings• Retail Establishments (including restaurants)• Primary Metals Industry• Chemicals Industry• Mixed Industries (including food processing, rubber, plastics, stone, clay, glass, fabricated metals, and

electronics industries)• Healthcare Facilities• Educational Facilities• Public Agencies

Business Programs

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Energy Efficiency ProgramRebates – Duquesne Light is providing rebates on a wide range of energy-saving

devices that a commercial or industrial customer might use, such as fluorescent lamps, ballasts, fixtures, variable frequency drives, door gaskets for freezers, and high efficiency motors. Rebates are paid based on the quantity installed and the equipment must meet certain energy efficiency standards. For a complete listing, visit our website at www.wattchoices.com

Custom Incentives – Custom incentives are available to customers for less common or more complex energy saving measures installed in qualified retrofit and equipment replacement projects. Custom measure incentives are paid based on kWh savings. Projects that include both custom measures and equipment listed in the rebate catalog will receive custom incentives.

Business Programs

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Business Programswww.wattchoices.com

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Rebate Catalogwww.wattchoices.com

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Rebate Examples

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Description of Measure Units Rebate per Unit

T8 - four 4ft Lamps with CRI>=80 and Electronic Ballast; must replace four 4ft T12 lamps and magnetic ballast

4 Lamps & 1 Ballast OR Fixture

$18.50

T5 - six 4ft HO Lamps with CRI>=82 and Electronic Ballast; must replace high intensity discharge fixture (such as metal halide) producing comparable lumens

6 Lamps & 1 Ballast OR Fixture

$93.50

Wall or Ceiling-mounted infrared and/or ultrasonic Sensor; >= 500 watts of interior lighting controlled; hard-wired. Total wattage of lights controlled by each sensor must be included in material submitted with Rebate Application.

Sensor $20.00

10 HP Motor with NEMA Premium efficiency or better; must be replacing a motor of equal horsepower

Motor $70.00

Example Projects

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Example Project #1:Gymnasium upgrades (24) 400 watt metal halide fixtureswith (24) four-foot, six lamp, T5 High Output Fluorescent Fixtures

Connected Load Savings: 2.57 kWAnnual Energy Savings: 11,025 kWh

Estimated Equipment Cost: $5,400 (labor not included)Prescriptive Rebate Incentive: $2,240Estimated Annual Energy Cost Savings: $992

Projects cited are representative of actual D.L. Co. customer projects.Energy cost savings is base on 9.0¢ per kWh.

Example Projects

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Example Project #2:Education facility replaces (1) 2 HP 84.0% efficiency motor with (1) 2 HP 86.5% efficiency motor

Connected Load Savings: 0.039 kWAnnual Energy Savings: 160 kWh

Estimated Equipment Cost: $400 (labor not included)Prescriptive Rebate Incentive: $35Estimated Annual Energy Cost Savings: $14

Projects cited are representative of actual D.L. Co. customer projects.Energy cost savings is base on 9.0¢ per kWh.

Example Projects

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Example Project #3:Education facility performs lighting upgrades as follows:- (2,310) three-lamp T12 fluorescent fixtures retrofitted to (2,310) two-lamp T8 fluorescent fixtures. Also results in (2,310) T12 lamps removed.- (409) T12 fluorescent fixtures retrofitted to T8 All fluorescent fixture upgrades include electronic ballasts

Connected Load Savings: 206 kWAnnual Energy Savings: 708,720 kWh

Estimated Equipment Cost: $61,000 (labor not included)Prescriptive Rebate Incentive: $46,715*Estimated Annual Energy Cost Savings: $63,785*Includes qualified removal of (2,310) T12 lamps resulting in $13,860

Projects cited are representative of actual D.L. Co. customer projects.Energy cost savings is base on 9.0¢ per kWh.

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Program Status Update

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MWh Results

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Overall Summary MWh’s PTD – July 31, 2011

May 31, 2013 Goal % of Goal

Portfolio MWh’s 199,564 422,565 47%

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Class MWh Results

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MWH’s PTD – as of July 31, 2011

May 31, 2013 Goal % of Goal

Residential MWh’s 75,330 119,802 63%

Commercial MWh’s 76,697 221,155 35%

Industrial MWh’s 47,537 81,608 58%

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Program

PTD (7-31-11) Total May 31, 2013 Goal

% of Goal (MWh) (MWh)

Residential Energy Efficiency 47554 85,358 56%

RES - School Energy Pledge 3697 3,503 106%

RES – Appliance Recycling 7549 8,653 87%

Res – Low-Income 16530 22,288 74%

Com – Offices 24633 80,620 31%Com – Healthcare 9489 29,577 32%Com – Retail & Restaurant 12623 32,186 39%Com – Education 5657 18,269 31%Com – Public Agency 22199 46,583 48%Com – Commercial Umbrella 2096 13,920 15%Ind – Industrial Umbrella 603 6,530 9%Ind – Primary Metals 21635 44,487 49%Ind – Chemicals 14998 16,167 93%Ind – Mixed Industrial 10301 14,424 71%Total 199,564 422,565 47%

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Budgets Specific budgets for customer segments to ensure that all

customers have resources available.

As of July 31, 2011 total expenses were $ 22,952,041.

Some programs have performed above expectation and are nearing goal. A decision will be made in the next several weeks to determine if shifting of funds among programs is necessary and the modification will be file for PUC approval.

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Compliance Update

Duquesne Light filed surcharge true-up on July 1, 2011– Total over collection of $ 9,829,407– Projected 2011-2012 approved budget $ 22,155,822– Net projected costs to recover $ 12,326,414

No change to residential surcharge Decrease in Small & Medium C&I Increase and Decrease in Large C&I

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Submitted Preliminary Gross Savings – July 15, 2011– Gross Reported Savings of 174,001 MWh– Mandated reduction of 141,885 MWh– Enough reported savings to reach goal

Verified Savings Report – November 15, 2011

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Evaluation, Measurement and Verification (EM&V)– Navigant Consulting– Independent evaluator– Provides technical assistance with projects– Selects random samples for verification– Conduct on-site and phone interviews– Verifies paperwork and project files– Completes Verified Savings Report– Interacts with the Statewide Evaluator

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EM&V

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Provides an additional level of verification Completes on-site and desktop audits– Most recent on-site evaluations provided positive feedback

Provides guidance on project verification Conducts bi-weekly meetings with Duquesne Light Partners to ensure success of programs Interacts with staff and independent evaluators

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Statewide Evaluator

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Demand Response

Demand Reduction consists of two Components: Energy Efficiency:

– Deemed MW’s achieved in conjunction on-going MWh projects

– Paid for from Energy Efficiency Program dollars Demand Response Programs:

– Actual demand reduction for AC cycling or curtailable events

– Will be achieved and documented summer of 2012

– Paid for from Demand Response Program dollars

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Comverge implementing Residential & Small/Medium

Commercial/Industrial programs– Service Line Article April 2011– 1,425 customer inquiries, 1,000 customers enrolled

Comverge will begin installation of switch equipment October 2011

Comverge continues to field customer inquiries and enrollments

Air Conditioners will cycle on/off during the peak events from

June 1, 2012 – September 30, 2012

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Residential/Sm/Med

EnerNOC will administer Large Commercial and Industrial Curtailable Program– EnerNOC is a large national company that works with large

customers

Begin marketing to customers September 2011– Committed to 40 MW curtailment June 1 – September 30, 2012– EnerNOC will responsible to market, implement , evaluate and

report savings

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Large C&I

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Questions

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