CEAC updateEnergy Efficiency | Renewables | Smart Grid

November 19, 2010

Securing our energy future

State-of-the-Art Power SystemsEnergyWise®

Smart grid grant and initiatives

Launched EnergyWise® smart grid brand Opened Smart Grid Program Office Smart grid grant DSDR Condition-based monitoring Smart meter pilot Electric vehicle charging stations

EnergyWise HomeSM

EnergyWise Home℠

Helps Progress Energy manage the existing power supply during times of unusually high demand. Participants receive an annual bill credit

Over 42,890 customers enrolled in the program – 5,664 from the Western Region

$1 million incentives paid to date - $141,600 in the Western Region Recently reached 51 MW in savings

Alternative Energy

Hot Springs Elementary Windmill

Solar education program designed to give middle and high school students and faculty a unique, hands-on opportunity to learn more about solar energy

Five winning schools were chosen to receive a 2 kW solar PV system to be installed on their campus along with internet tracking equipment that shows the real-time energy output.

2009 – 2010 SunSense School winners: Daniels Middle School (Raleigh) Jordan Matthews High School (Siler

City) Owen Middle School (Swannanoa) South Brunswick High School

(Southport) South Florence High School (Florence)

SunSense Schools℠

Western Region Solar Projects Recently reached 1 MW of installed solar PV in Western Region!

Evergreen Packaging: 55 KW system Conrad Industries: 250 KW system Jim Barkley Toyota: 75 KW system Deltec Homes: 55 KW system Biltmore Park Town Square Office Building: 80 KW system

Evergreen PackagingAsheville, NC55 KW system

Jim Barkley ToyotaAsheville, NC75 KW system

Conrad IndustriesWeaverville, NC250 KW system

SunSense Solar Water Heating Pilot℠

Offers a $1,000 incentive to program participants who invest in solar water heating and are accepted into our research study

Almost 100 customers approved to participate – 20 from the Western Region

17 authorized installers throughout territory

SunSense Solar PV program℠ Approved Nov. 15 Expected to launch Jan. 1 Provides upfront rebates of $1,000 per kilowatt of

capacity Monthly bill credits of $4.50 per kilowatt for newly

installed solar PEC retains rights to renewable energy credits Participants must be PEC residential customers Participants must own the installed solar PV system Eligible systems must be sized from 2-10 kW

Energy Efficiency

What you can do:Energy efficiency

www.savethewatts.com

Gives homeowners a free, personalized evaluation of their energy usage and provides specific recommendations for energy and money savings

Over 17,495 customers have participated to date – 1,736 customers from the Western Region

Customized Home Energy Report

Home Advantage

Encourages construction of ENERGY STAR®- certified homes that are at least 15% more energy efficient than standard homes and come with a 5% PGN discount

Over 802 homes built in 2010 – 96 in the Western Region Official builders throughout service territory including site-built,

system-built, manufactured and multi-family construction 189 builders participating in program - 71 builders in the Western

Region $1.1 million in rebates paid to official builders - $152,600 in the

Western Region

Home Energy Improvement Program

Offers rebates for energy-efficiency home improvements such as heating and cooling upgrades, duct repair and insulation

Total of 800 pre-qualifed contractors on the program – ~150 from the Western Region

Measures: 55,493 installed since program

launch 2,992 installed in the Western

Region

Rebates: $7.3M since program inception in

2009 $434,302 received in the Western

Region

Savings: KW – 9,609 since program inception kWh - 12,656,849 since program

inception

Provides information and free energy conservation measures to low-income residential customers to help reduce energy consumption and costs

Program Accomplishments: Asheville, NC – 871 homes completed Florence, SC – 785 homes completed Marion, SC – 472 homes completed Raleigh, NC – 1,300 homes

completed Projects in progress in Warren County

and Goldsboro, NC 3,470,720 kWh savings to date 536 KW savings to date

Neighborhood Energy Saver

Offers discounts to customers purchasing ENERGY STAR lighting products, including CFLs, at selected retail stores

2.9 million bulbs sold to date – 760,000 in the Western Region

Over 446 retail stores participating

88,802,023 KWH savings to date – 23,207,761 in the Western Region

656,518 KW savings to date – 95,686 in the Western Region

Residential Lighting Program

Launched April 5, 2010 Offers a $50 incentive to retire

older, inefficient refrigerators or freezers

Almost 95% of a refrigerator’s parts are recycled through this program

3,873 appliances recycled to date – 465 in the Western Region

4,336,248 kWh savings to date – 517,299 in the Western Region

505 KW savings to date – 60 in the Western Region

Appliance Recycling Program

Other items of interest New website launch – Q1 2011 Customer care / Lower my bill toolkit Energy Neighbor Fund Give Where You Live Social media – staying in touch with our customers

Securing our energy future