The document summarizes several energy efficiency initiatives in Ohio, including: 1) SB 221, which requires 22.2% cumulative kWh reductions and 7.75% demand reductions by set deadlines, and sets renewable energy standards. Utilities face penalties for missing targets. 2) Residential programs like smart lighting incentives, refrigerator recycling, and K-12 education programs to teach energy efficiency. 3) Business programs including incentives for installing efficient lighting, custom energy efficiency projects, and a self-direct program allowing businesses to get credit for past efficiency projects.

1. AEP Ohio Energy Efficiency Initiatives GREEN BUSINESS CONFERENCE Chuck Jennings Manager, Consumer Programs Energy Efficiency/Demand Reduction April 14, 2010

2. Overview of SB 221 SB 221 requires 22.2% cumulative kWh reductions through energy efficiency programs by 2025 and 7.75% cumulative demand reduction by 2018. SB 221 also sets 25% Alternative Energy Portfolio Standard: minimum 12.5% from renewable energy and the rest from advanced energy (a portion of which can include energy efficiency). Financial penalties prescribed for failure to meet incremental targets on an annual basis. Program cost recovery through EE/PDR rider.

3. SB 221 Requirements for Efficiency

4. SMART Lighting Immediate savings online at www.gridSMARTohio.com Immediate savings at checkout on CFL bulbs and light fixtures at participating retailers EnergyStar ® 13-42 W, dimmable, 3-way options Range of 86 -197 kwh annual energy savings Residential Programs

5. Refrigerator Recycling For “old” second refrigerator, 10 cubic feet or larger Must be in working condition $25 reward for each Free pick up Recycling 97% components 1-877-545-4112 to schedule pickup Residential Programs

6. More Programs to Come Summer 2010 Existing Home Retrofit Efficiency Low Income Weatherization New Construction Residential Programs

7. Education (K-12) Program School-to-Home Energy Efficiency Addresses science standards grades 5-12 Takes learning from school to home Seven lessons Intro to Energy Insulation & Air Leaks Heating & Cooling Saving Water & Energy Light bulbs & Energy Appliances & Energy Energy Synopsis Fourteen energy saving devices Implemented by Ohio Energy Project 180 schools, 13,500 students

8. Reduce your investment payback period and create long-term reduction in energy consumption and costs. Three Programs: Lighting Custom Self-Direct Incentives for energy savings and peak demand reduction Applications and guidelines found at www.gridSMARTohio.com Technical assistance for completing Custom and Self-Direct applications available Business Programs

9. Set incentives for purchasing & installing efficient lighting All business (non-residential) customers are eligible Equipment must meet requirements in program application Incentives may not exceed 50% of the total project cost AEP Ohio dispenses funds based on availability Business Lighting Program Incentives range from $2 per CFL to $350/kW for new T8/T5 fixtures

10. Incentives for new high-efficiency equipment and industrial process improvements that reduce energy consumption and peak demand For retrofit and new applications Measures must be installed for five years All business (non-residential) customers are eligible Equipment must meet requirements in program application AEP Ohio dispenses funds based on availability Business Custom Program 50% Max % of total project cost 1 to 7 years Range of payback qualifying for incentive $.08/kWh + $100/kW PDR Incentive Level

11. SB 221 allows qualifying customers to submit previously completed energy efficiency and peak demand reduction projects Eligible customers: Non-residential customers with energy consumption >700,000 kWh/year from AEP Ohio; or A national or regional account involving multiple facilities in one or more states Customer responsible for costs to document energy saving projects and should have experience and staff capability to manage, implement, and verify an energy management program within their facilities Business Self-Direct Program

12. Business Self-Direct Program Customer commits their completed energy efficiency and peak demand reduction projects to AEP Ohio. Option One: Incentive payment upon approval, stays in EE/PDR rider Option Two: Exemption from EE/PDR rider as long as NPV of calculated incentive is greater than value of their rider obligation Customers must be accepted into the Self-Direct program by AEP Ohio and the Public Utility Commission of Ohio, and sign a participation agreement. Projects completed from January 1 st , 2006 – December 31, 2008 can qualify. Measures must be installed for five years. AEP Ohio dispenses funds based on availability. 50% Max % of total project cost 1 to 7 years Range of payback qualifying for incentive 75% of Custom or Lighting Programs Incentive Level

13. In design phase with input from stakeholders Technology program open to all customer classes Launch program in 2010 if approved Renewable Energy

14. Program Guidelines & Applications