Progress Energy South Carolina Aims for Energy Efficiency

PSC approves eight new efficiency programs for Progress Energy S.C. customers

FLORENCE (June 10, 2009) -- The Public Service Commission of South Carolina has approved eight new energy-efficiency and demand-response programs for Progress Energy Carolinas customers in the Palmetto State. The programs will help residential, commercial, industrial and government customers save money and reduce their energy use.

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Residential programs

Residential Home Energy Improvement Program (HEIP) -- The Home Energy Improvement Program offers rebates to residential customers in existing homes for improvements such as heating and cooling upgrades, duct testing and repair, energy-efficient window installation, attic insulation and air sealing. Customers will be able to select from a list of pre-qualified contractors across the state to perform the work.

Residential Home Advantage -- The Home Advantage program provides incentives to builders to construct new homes that meet or exceed U.S. EPA Energy Star efficiency standards. Energy Star-certified homes provide customers with at least 15 percent greater efficiency than standard homes. Homeowners also receive a 5 percent Progress Energy discount on their monthly bill for the life of the home.

Residential Solar Water Heating Pilot -- Under this pilot, up to 150 customers will be offered a $1,000 incentive to participate in the study. The incentive is offered to encourage participants to invest in solar water heating and compensate customers for any inconveniences encountered during installation of measurement equipment, retrieval of data from monitored sites and participation in program surveys. Progress Energy Carolinas will use the pilot program to help determine regional energy-saving capabilities for a potential larger-scale program.

Neighborhood Energy Saver Program -- The Neighborhood Energy Saver program will provide information and energy-conservation measures to low-income residential customers to help reduce energy consumption and costs. The program targets low-income neighborhoods in which more than half of the households have total income equal to or less than 150 percent of the poverty level, as established by the U.S. Department of Energy.

EnergyWiseTM -- EnergyWise is a residential load-control program that enables Progress Energy Carolinas to remotely adjust the air-conditioning units of voluntary customer participants during periods of peak electricity demand, particularly on the hottest summer afternoons, when demand is at its highest of the year. Customers participating in EnergyWise will receive an annual $25 bill credit as an incentive.

Non-residential programs

Energy Efficiency for Business -- The Energy Efficiency for Business Program encourages energy efficiency and energy-efficient building design among Progress Energy's non-residential customers. The program offers cash incentives to customers who implement any of several pre-defined or custom energy-efficiency measures. A performance-based incentive is also offered for new buildings and major renovations that pursue integrated, building-wide energy efficiency. In addition, technical assistance incentives are available to offset design and engineering costs.

Commercial, Industrial, Government (CIG) demand response -- Demand-response programs are designed to reduce and shift peak load, thereby delaying Progress Energy's need for additional peaking generation. The new CIG demand response program is designed to provide education and incentives to CIG customers to encourage participation in voluntary load management. As part of the program, Progress Energy will install communication technologies that will enable PEC to remotely control and monitor a variety of electrical equipment during periods of peak demand.

Distribution System Demand Response (DSDR) -- DSDR is a component of Progress Energy's Smart Grid strategy that will help the company deliver power more efficiently across the utility's existing electrical system through equipment and technology enhancements. DSDR is expected to produce a nearly 250-megawatt reduction in peak electricity demand by 2012, eliminating the need for peaking power plants of equal size.

Progress Energy Carolinas has made a commitment to double the energy efficiency its customers achieve to 2,000 megawatts (MW) through demand-side management and energy-efficiency programs. Increasing the amount of efficiency from customers helps to delay the need for new power plants.

Progress Energy has developed an array of new programs to fit varied customer lifestyles and needs. Information on Progress Energy Carolinas' energy-efficiency programs can be found at www.progress-energy.com/environment/energyefficiency.asp.

The company also provides efficiency information and tips through the Save The Watts campaign. Save The Watts is an educational initiative that features a highly interactive Web site (www.savethewatts.com) with more than 100 useful tips for customers to save energy and money. The Web site provides a calculator for customers to measure their energy savings as well as their carbon footprint, a calculation of the individual's energy usage to reflect his or her contribution to greenhouse gas emissions.

Source: Progress Energy (NYSE: PGN)