Effective November 12, 2007
2007 Commercial/Industrial Program Changes

As a result of the overwhelming customer response and current market conditions, The
Connecticut Light and Power Company, The United Illuminating Company (the “Companies”) and the Energy Conservation Management Board have reviewed the Connecticut Energy Efficiency Fund’s Commercial and Industrial (C&I) program incentive structures. Based on this review, effective November 12, 2007, several changes are being implemented that will better align the programs with the marketplace and improve overall program delivery.

Energy Opportunities
The current two tier system (Tier 1 of up to 30% of installed cost and Tier 2 of up to 50% of installed cost) will be replaced by a single tier wherein the maximum incentive level for qualifying lighting projects will be set at up to 30% of the total cost. Additionally, eligible projects must demonstrate that the lighting plans are better than ASHRAE 90.1-2001 (with Addenda) by at least 15%. Projects with lighting plans NOT better than ASHRAE 90.1-2001 (with Addenda) by at least 15% may be eligible for participation in the expanded Express Lighting Rebate program with a pre-inspection.

Energy Conscious Blueprint
The current two tier prescriptive lighting incentives (Tier 1 @ $0.30/sq.ft. and Tier 2 @ $1.00/sq.ft.) in the Energy Conscious Blueprint program for qualifying lighting projects will be reduced by 50%. Additionally the current fixture cap mechanism ($100/fixture) will be reduced by 50% to better reflect actual market costs.

The new tier structure will be as follows:
• Tier 1= $0.15/sq.ft. for exceeding Code by at least 10% ($50/fixture cap)
• Tier 2= $0.50/sq.ft. for exceeding Code by at least 30% ($50/fixture cap)

Comprehensive Bonus Projects (Multiple End Use Projects in Existing Buildings)
No new Comprehensive Bonus projects will be accepted by the Companies for evaluation. The Comprehensive Bonus structure is being reevaluated for potential implementation in 2009.

Express Lighting Rebate
The Express Lighting Rebate program will no longer be restricted to high-performance
technologies (e.g., HPT8). The program will allow conventional energy-saving technology (e.g., low wattage T8, etc.) with additional incentives for high-performance lighting technology.

Operations & Maintenance
CL&P’s program will no longer offer incentives of up to 100% of installed cost in Southwest Connecticut. The maximum incentive level for all qualifying projects statewide will be set at up to 50% of the installed cost.

Small Business Energy Advantage
For CL&P, the current incentive structure will pay up to 50% of fixed cost. Effective January 1, 2008, the incentive will equate to up to 40% of fixed cost. There are no changes to United Illuminating’s SBEA incentive structure.

These changes do not affect existing projects with signed agreements.