UGI Utilities – Electric Division

Energy Efficiency & Conservation

Collaborative Meeting

June 9, 2010

About UGI Electric Division

Service Territory– Luzerne and Wyoming

counties– Surrounded by PPL Electric

Size– ~55,000 Residential

Customers– ~8,000 Commercial and

Industrial Customers– ~1,000,000 MWh/yr in

Sales

Why we are here

Act 129 – Energy Efficiency and Conservation Program (EE&C)– Applied only to Electric Utilities with greater than

100,000 customers PUC Secretarial Letter requested Electric

Utilities with less than 100,000 customers to file voluntary EE&C Programs

UGI Electric has decided to file a voluntary EE&C Program

Comparison to Act 129

Act 129 EE&C– Base Year: June 1, 2007 to

May 31, 2008– Normalized Load Reduction

Requirements: 1% by May 31, 2011 3% by May 31, 2013

– Peak Demand Reduction Requirement: 4.5% by May 31, 2013

– Government/Municipal class specific reduction requirements

– Fines for not meeting goals

UGI Electric EE&C– Base Year: October 1, 2008

to September 30, 2009– Normalized Load Reduction

Requirement: 1% by May 31, 2012 3% by May 31, 2014

– Peak Demand Reduction Requirement: N/A

– No class specific reduction requirements

– No fines for not meeting goals

– UGI Electric will evaluate all programs based on the TRC Test

UGI Electric EE&C Plan Goals

Reductions to Normalized Load– 1% by tentative date of May 31, 2012– 3% by tentative date of May 31, 2014

Craft a program within a limited budget that meets standard load reduction targets

Minimize costs while maximizing benefits

Proposed Programs

Residential– CFL Lighting– Energy Audits– Appliance Rebates– Appliance Recycling– Water Heater Fuel Switching– Clothes Dryer Fuel Switching– Space Heat Fuel Switching

Low Income Residential– CFL Lighting– Water Heater Fuel Switching– Low Income Usage Reduction Plan (LIURP)

Proposed Programs (cont.)

Commercial and Industrial– CFL Lighting– Appliance Rebates– C&I Custom Incentive– HVAC Tune-Up– Water Heater Fuel Switching– Clothes Dryer Fuel Switching– Space Heat Fuel Switching– C&I Combined Heat and Power (CHP) Fuel Switching

Budget

2% of Fiscal Year 2009 Revenues– $2.0 million per year

Minimize Administration Costs

CSPs

Appliance rebate processing Appliance recycling CFL Program Energy Audits HVAC Tune-Up Program Other CSPs possible for consideration

Timing

Filing Date: Summer 2010 Implementation of the UGI Electric EE&C

Program will follow the PUC approval of the EE&C Plan Proposal

Program duration will be 3 years from the implementation date

Cost Recovery

UGI Electric will propose a cost recovery mechanism

Feedback

For program updates, please visit:– http://eec.ugi.com

For questions or comments please send emails to:– eec@ugi.com

Next tentative collaborative meeting:– July 14, 2010