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April 2006

Romanian Energy Program, Phase III (REP3). Universal Services Offered for Poverty Level Residential Consumers by Exelon Corporation’s Distribution Utilities A. Karen Hill Vice President Federal Regulatory Affairs Exelon Corporation. April 2006. About Exelon Corporation.

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April 2006

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  1. Romanian Energy Program, Phase III (REP3) Universal Services Offered for Poverty Level Residential Consumersby Exelon Corporation’s Distribution UtilitiesA. Karen HillVice President Federal Regulatory AffairsExelon Corporation April 2006

  2. About Exelon Corporation • Exelon is a holding company headquartered in Chicago, IL • Exelon owns – • Commonwealth Edison, a public utility that serves 3.3 million retail electric customers in northern Illinois • PECO Energy Company, a public utility that serves 1.5 million retail electric and 450,000 retail natural gas customers in the Philadelphia, PA area • Exelon Generation Company, a public utility company that owns or controls nearly 39,000 MW of generation and that sells power to wholesale customers

  3. Exelon’s Programs to Assist Consumers to Pay Energy Bills • Government funded – • Low Income Home Energy Assistance Program (“LIHEAP”) – federal grants administered by states paid to utilities • Utility rate funded – • Customer Assistance and Referral Evaluation – public assistance • CAP Rate – discounted utility rates • Low Income Usage Reduction Program – conservation • Privately funded – • Matching Energy Assistance Fund • Utility Emergency Services Fund

  4. Size of Family 1 2 3 4 5 6 7 8 Maximum Annual Income $9,310 $12,490 $15,670 $18,850 $22,030 $25,210 $28,390 $31,570 Eligibility Based On Federal Poverty Levels -- 2004 US Census Bureau Poverty Level Guidelines

  5. Customer Assistance and Referral Evaluation Services • CARES provides social service assistance • Referral to appropriate assistance programs • Residential customers with temporary hardship – personal or financial • divorce, injury or illness, death in family, disability, job loss • Unable to pay utility bill • Intended to address health and safety concerns relating to utility service

  6. CARES -- Implementation • Utility identifies customer with payment problem that is potentially eligible for assistance • Poverty level income or senior citizen • Income from government assistance and • Payment problem based on temporary or extenuating circumstance • Utility assigns case worker to help direct customer to appropriate program for assistance with bill paying, energy usage reduction, other social services

  7. Low Income Home Energy Assistance Program – LIHEAP • LIHEAP benefits have three components • Cash benefits are paid to provider of heating fuel • Crisis benefits are made to resolve heating emergency such as shut-off or being out of fuel • Weatherization help with repairs, insulating and weatherizing homes to reduce energy consumption • LIHEAP funding • Federal block grants to states • State funds • Private donations

  8. LIHEAP -- Implementation • Current federal funding is $3 billion – highest ever • Nearly 6 million people receive LIHEAP assistance • Federal funds allocated to states according to formula • Poor population – 135% of federal poverty level • Heating degree days • Energy expenditures • State and local agencies identify eligible consumers • State and local agencies distribute funds to utilities • Grant is one-time only for consumers

  9. CAP Rate Program -- Overview • Description – Sliding scale discount residential utility rate • Applied – to 500 kWh of electric monthly bill and 100 ccf of gas monthly bill • Eligibility – • Poor – income up to 150% of federal poverty rate • Problems paying energy bills • Funded – included in utility’s revenue requirement for recovery in rates

  10. CAP Rate Program – Eligibility Requirements • Applicants complete application • Provide proof of income • Participate in energy education and conservation programs • Sign up for government-funded energy assistance programs • Assign government-funded grants to utility company • Pay bills on time

  11. CAP Rate Program – Enrollment Process • Customer is identified by utility • Customer applies with necessary proof of income • Income verified with state or employer • Customer enrolled in CAP and budget program • If customer pays timely for 6 months pre-program arrearage is forgiven • Customer recertified periodically – annually or every two years

  12. CAPRate Program – Detailed Implementation

  13. CAP Rate Program – Detailed Implementation

  14. CAP Rate Program – Detailed Implementation

  15. CAP Rate Program – Detailed Implementation

  16. CAP Rate Program – Detailed Implementation

  17. Health Related Energy Use Exemption From Limits • CAP Rate discounts apply based on usage • No discounts above 500 kWh per month • Unless, additional usage based on medical necessity, then discount will apply • Medical equipment in home for treatment or life sustaining support, for example • Air conditioner • Air purifier • Dehumidifier • Oxygen concentrator

  18. Low Income Usage Reduction Program • Assists low income customers to conserve energy • Energy audit • Assistance with conservation measures • Eligibility • Up to 200 % of federal poverty level • High average usage • Qualified for CAP rate discount

  19. Low Income Usage Reduction Program -- Implementation • Company conducts energy audit • Identifies needed conservation measures • Enters payment agreement with customer • Costs allocated over extended period up to 5 years • Minimum payment included in utility bill • Company contracts for repairs

  20. Attic vents Caulking Chimney liner Insulation Thermostat Clothes dryer vent Efficient lights Heating system replacement Door replacement Weather stripping Seal holes and penetrations Water heater replacement Refrigerator replacement Low flow showerhead Space heating duct insulation Window air conditioner Rim joist insulation Furnace filter replacement Faucet aerator Education Low Income Usage Reduction Program – Conservation Measures

  21. Matching Energy Assistance Fund • Fund is hardship fuel fund sponsored by utility • Contributions by other customers matched by utility • Eligibility based on 175% Federal Poverty Level • Service termination imminent • Maximum grant $500 • Grant must reduce account to $0 • Customer may be required to make payment

  22. Utility Emergency Services Fund • Private tax exempt non-profit organization assisting low income families with emergency utility needs • Donations from private entities matched by utility funds • Grants to families to pay utility bills • Under $500 • Shut off status • Applied for LIHEAP funds • At or below 175% of federal poverty level

  23. Conclusion – Features of Successful Low Income Utility Programs • National government funds allocated to local areas on basis on need – population, income and temperature • National government fund local distribution via programs administered by local agencies • Eligibility criteria applied universally and closely monitored by utility or local agency • Payments made directly to utility or other service provider, such as contractor

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