Background: Utilities across the country are encouraging electric vehicle adoption by providing incentives for the deployment of charging infrastructure. Electric vehicle (EV) drivers are incentivized to charge their vehicles during off-peak periods when overall electricity system demand is low, instead of on-peak periods when both system demand and the associated emissions profiles of the generation sources needed to meet that demand are high.

Action: Delmarva Power received approval from the Maryland Public Service Commission to implement a portfolio of EV program offerings across the residential, non-residential and public market segments. Through our EVSmart program, Delmarva Power provides the following offerings to customers:

Residential:

1. an unlimited whole house EV time of use (TOU) rate
2. rebates to defray the cost of 1000 eligible level II (L2) smart chargers
3. discounted EV chargers for residential applicants who use Pepco’s standard offer service

Commercial:

1. a discounted L2 smart charger and one-time free installation per site for 250 multi-family applicants, with a voluntary green rider adder to their service agreement
2. a multifamily, fleet, and workplace demand charge credit on qualifying customer owned L2 or DC Fast Charger (DCFS) EV chargers

Public Charging:

1. 100 installations of utility owned, publicly available L2 smart chargers and DCFCs sited at county and municipal public locations across the service territory

Greenhouse Gas Impact: Delmarva Power has a goal to install 100 public chargers, and 30 by the end of 2021. Replacing a gasoline vehicle with an electric model in Maryland will reduce annual CO₂ emissions by more than 5,000 pounds per year.

Background: Delmarva Power’s program defines success as achieving distinct and measurable energy efficiency savings for its customers. Delmarva Power has designed its programs around three key themes:

• Cost Effective Programs and Customer Benefits
• Inclusion, Affordability, and Equity
• Contribution to the state’s annual energy reduction goals
• The Company’s goal is to deliver approximately 68,505 MWh of savings during the 2020-2022 program cycle. As of Q3 2021, customers have saved approximately 58,256 MWh and $52.8 million.

Action: Delmarva Power currently offers three residential programs. Program offerings include:

• Consumer Products Program, including residential lighting and appliance recycling
• Home energy reports to yield verifiable energy savings by encouraging voluntary behavioral modifications
• The company has also collaborated with Delaware Sustainable Energy Utility (DESEU), through the Energize Delaware program, and Delaware Department of Natural Resources and Environmental Control (DNREC) to target commercial & industrial and income-eligible customers.

Greenhouse Gas Impact: Delmarva Power's energy efficiency programs are forecast to save more than 68,000 MWhs of electricity between 2020 and 2022. This translates to a CO₂ reduction of more than 27,000 tons, based on the average PJM power grid energy mix.

Background: Delmarva Power has a large fleet of vehicles to support the work we do in providing clean, safe, reliable, and affordable energy to Delaware energy consumers. The company will convert 25% of its passenger vehicles and compact SUVs to all electric and plug-in hybrid vehicles and 25% of its medium and heavy-duty trucks to Plug-in Hybrid models by 2025 and increase conversions to 50% by 2030.

Action: As vehicles are due for replacement, Delmarva Power will purchase all electric and plug-in hybrid vehicles for its passenger cars and small SUVs and plug-in hybrid models for its medium and heavy-duty vehicles (technology permitting), with a goal of:

• Converting 74 passenger vehicles and small SUVs to all electric or plug-in hybrid by 2025
• •Converting 41 medium duty and heavy-duty vehicles to vehicles with idle-mitigation and plug-in hybrid capabilities by 2025

Greenhouse Gas Impact: Switching from conventional gasoline vehicles to electric models, will avoid almost 800,000 pounds of CO₂ emissions in 2025.

Background: Measuring and evaluating the energy usage in our buildings through Building Energy Performance Standards (BEPS) and energy benchmarking reporting is essential for making smart decisions around eliminating waste and implementing effective energy saving measures.

Action: Delmarva Power will complete a comprehensive energy efficiency audit and assessment of its energy usage at the New Castle Regional Office in 2022. The energy saving opportunities identified by the energy audit for the New Castle Regional Office will be implemented by 2025. Expected opportunities include:

• Reducing “over illumination” in some buildings
• Installing lighting controls such as motion sensors
• Replacing less efficient Heating, Ventilation and Cooling (HVAC) Systems

Greenhouse Gas Impact: Once the audits are complete and opportunities are identified, Delmarva Power will prioritize upgrades that provide the greatest greenhouse gas reduction benefit and the least cost by the end of 2025.

Background: The New Castle Regional Office (NCRO) is Delmarva Power’s largest office within the New Castle Region. At approximately 345,000 square feet of office space, the building houses over 630 employees and covers more than 70 acres. Additionally, as of 2021, Delmarva has approximately 67 named substations in its Delaware service area, providing power to approximately 320,000 customers over approximately 2,000 square miles. As a result of the large service territory and the remote nature of some of the substations, outdoor lighting is extremely important to safety and security for those substations.

Action: Delmarva Power will upgrade lighting systems at the NCRO complex from incandescent to light emitting diode (LED) to improve efficiency and create cost savings and will continue to capture all lighting upgrade opportunities at Delmarva-owned facilities during facility refresh projects. Additionally, the company has begun an LED replacement program across all its substations, beginning with some of the larger ones in the service territory. This program will not only increase the safety and security for those areas, but LED lights are also more efficient than conventional lighting equipment. Several lighting upgrade projects have taken place to date within Delmarva Power, including the Red Lion substation in Delaware.

Greenhouse Gas Impact: Replacing a conventional incandescent light with a high efficiency LED is estimated to reduce energy use by about 30%. For example, the substation upgrades, when complete, are expected to save approximately 500 MWh of electricity and eliminate about 400,000 pounds of CO₂ emissions each year.

Background: Tree planting reduces energy use, enhances system reliability, and contributes to climate resilience. In 2011, Delmarva Power was one of three utilities to launch a partnership with the Arbor Day Foundation’s Energy-Saving Trees program.

Action: In partnership with the Arbor Day Foundation's Energy-Saving Trees program, Delmarva Power provided more than 700 free trees to customers in its Delaware service area in 2021. As part of Delmarva’s commitment to a cleaner and brighter future, this partnership helps customers conserve energy and the potential to lower energy bills by 15-30%.

Greenhouse Gas Impact: Since the start of the program, Delmarva Power has planted or donated over 7,000 trees in the Delaware region, which have sequestered an estimated 200,000 pounds of carbon. Across all of PHI’s three utilities, the company has donated more than 45,500 trees since 2011 having an even larger greenhouse gas impact across our service territories.

Background: Delmarva Power is converting its fleet to all electric and plug-in hybrid electric models. To enable this, the Company will install additional charging stations at its facilities to support the growing fleet of electric vehicles (EVs) and to provide workplace charging for employees.

Action: To meet our 2025 and 2030 fleet electrification commitment, the Company will install 44 charging stations at its New Castle Regional Office in 2022. This will bring the total number of charging stations at its Delmarva facilities to 56 in Delaware. The company will continue to add chargers, as needed, to support fleet conversion and further support workplace charging needs.

Greenhouse Gas Impact: Replacing one gasoline vehicle with an electric model in Delaware will reduce annual CO₂ emissions by more than 5,000 pounds per year.

Background: Delaware has impressive renewable energy mandates, including targets for local solar, with a goal of achieving 40% renewable energy by 2035 with 10% of the Renewable Portfolio Standard to come from solar sources. To integrate increasing amounts of renewable energy and local solar, Delmarva Power is investing in the infrastructure, communications, and system upgrades necessary to connect and optimize the clean energy resources.

Action: In January 2020, Delmarva Power deployed a new system called “Connect The Grid” to better support customers and contractors in tracking their solar interconnection projects. The company is continuing to enhance this tool and the overall interconnection process. The company has engaged with Delaware stakeholders and the broader solar developer community to seek feedback on process improvements. Delmarva Power will also continue to update its current online “solar hosting capacity map,” including information on cross-border feeders, to help customers and solar project developers identify appropriate locations on the grid to site local solar projects.

Greenhouse Gas Impact: Local solar is a key element in Maryland’s goal of 50% renewable electricity by 2030. In total, the Delmarva Power system currently supports approximately 135 MW of solar energy capacity and continues to grow. This amount of solar capacity will avoid more than 70,000 metric tons of CO₂ each year.

Background: As is typical in the electric power industry, Delmarva Power substations use SF₆ gas to insulate high voltage electrical equipment, such as switches and circuit breakers. However, SF₆, which is a powerful greenhouse gas (GHG), can leak from equipment, negatively impacting the environment and contributing to climate change.

Action: Delmarva Power will maintain its overall SF₆ leak rate at less than 1% through leak inspections and the replacement of aging equipment. The company will also evaluate the use of SF₆-free equipment across our system.

Greenhouse Gas Impact: By monitoring for leaks and upgrading equipment, we expect to minimize SF₆-related GHG emissions. SF₆ emissions account for approximately 15-20% of Delmarva Power’s GHG emissions associated with Delaware operations.

Background: The Delaware Public Service Commission adopted regulations for a new community solar program in Delaware, that were finalized in April 2022, following the passage and enactment of Senate Bill 2 in 2021. The program encourages additional private investment in Delaware’s solar industry to enable the state to meet its Renewable Portfolio Standard goals of 40% by 2035 with a 10% photovoltaic requirement.

Action: Delmarva Power has implemented processes and systems to enable solar developers to interconnect community solar projects to the grid. These community solar projects provide more customers with access to solar, resulting in cost savings and avoidance of greenhouse gas emissions. To date, Delmarva Power has enabled 0.17 MW of community solar in Delaware. As a result of the new community solar program, beginning in November 2021, approximately 70 new applications for community solar have been submitted, which if developed would provide an additional 240 MW of solar capacity in Delaware. While it is unlikely that each of the newly proposed community solar projects will be constructed, the number and capacity of community solar in Delaware is expected to increase significantly over the coming years.

Greenhouse Gas Impact: Replacing Standard Offer Service (SOS) power with one 1 MW of solar energy will avoid approximately 1 million pounds of CO₂ emissions per year.

Background: Understanding the value of and gaining access to information on energy efficient products helps customers make wise energy choices that save money and reduce greenhouse gas (GHG) emissions.

Action: Delmarva Power supports the launch of an online “Energy Marketplace” by the Delaware Sustainable Energy Utility (SEU) and Energize Delaware, which will provide customers with the opportunity to identify, compare and purchase energy efficient equipment, lighting, appliances and other devices in one convenient location. Energize Delaware is an initiative of the SEU that provides a one-stop resource to help residents and businesses save energy and money, while helping protect the environment. Although Delmarva Power is not affiliated with the SEU, the Energize Delaware initiative, or any of their programs, Delmarva Power supports the goals and initiatives of the SEU.

Greenhouse Gas Impact: Through the Energy Marketplace, customers are encouraged to make smarter energy choices that will save energy and reduce emissions by connecting customers to existing residential and commercial programs through rebates offered on the Marketplace.

Background: Delmarva Power and the Delaware Nature Society partnered to develop and launch the Sustainable Communities Grant Program, now in its second year. The Sustainable Communities Grant Program provides $75,000 in grants annually to fund open space and environmental and resiliency projects across the company’s Delaware and Maryland service area. The Sustainable Communities Grant Program provides $50,000 in grants of up to $10,000 each to municipalities, recreational authorities and nonprofits for projects focusing on open space preservation, improvements to parks and recreation resources, and environmental conservation in Delmarva’s Delaware and Maryland service area.

The program also will provide grants, totaling $25,000, to support resiliency projects that demonstrate innovation in providing a safe and reliable resource for a community during a time of emergency.

Action: The Sustainable Communities Grant Program grants awards to organizations for projects like the development of recreation trails, the purchase of open space, planting of trees and other vegetation. The program will support a range of community resiliency efforts that help prepare a community for the impacts of more severe weather.

Greenhouse Gas Impact: Taking action to enable solar and battery solutions can help build resilience and reduce greenhouse gas emissions, while restoring wetlands and preserving and protecting open space and protected lands that mitigate the urban heat island effect. The program can also encourage healthy activity and create community connections.

Background: Delmarva Power is a major employer in Delaware, and we recognize that the actions of our team members can impact the overall greenhouse gas (GHG) footprint of the region. We have an opportunity to encourage innovation, action, and engagement by supporting an Eco-Team Employee Resource Group (Eco-Team ERG) to serve as an employee-driven organization focused on identifying, elevating, and implementing eco-friendly ideas to reduce energy use, minimize waste, increase recycling and promote environmentally friendly transportation options.

Action: Delmarva Power will establish an Eco-Team ERG chapter, in partnership with its sister utility, Pepco, encouraging employees to take action to measure, monitor and reduce employees’ personal GHG footprint, and providing energy-saving and GHG-reducing tips for at home and at work.

Greenhouse Gas Impact: The Eco-Team ERG will encourage the adoption of various GHG reduction solutions and opportunities in 2022 and beyond.

Background: The State of Delaware set a goal that 40% of electric power sold in Delaware shall be renewable by 2035, with 10% sourced from solar. These targets can be met through the purchase of renewable energy credits (RECs) and solar renewable energy credits (SRECs), as defined by the state statute.

Action: Delmarva Power will transition its company-owned facility electricity usage to 40% carbon-free by the end of 2030, five years sooner than the state mandate. This can be achieved using a combination of strategies, including the purchase of additional DE Tier 1 and DE Solar RECs equal to 40% of the company building’s energy usage.

Greenhouse Gas Impact: By accelerating the renewable energy target for our building electricity use, including for our electric vehicle charging, we estimate saving about 2,500 metric tons of CO₂ emissions by 2035.

Background: Increasingly severe weather is the leading cause of power outages in the United States (U.S.) and costs the U.S. economy billions of dollars per year. Outages caused by severe weather are expected to rise as climate change increases the frequency and intensity of storms, causing flooding and major wind events, heat waves and droughts, and changes in historic weather patterns. To maintain safe, reliable service for all customers in the face of climate change, Delmarva Power is taking action to make the system smarter, stronger, and cleaner to build resilience and to enhance our preparedness for major weather events.

Action: Specific readiness actions Delmarva Power will take include:

• System Hardening, Redundancy and Resilience: We are investing for the future by making our infrastructure even more resilient to climate change, by modernizing the grid through dedicated initiatives such as substation security upgrades.
• System Automation: Delmarva Power has taken steps to make the grid smarter through increasing automation and use of advanced technologies. Efforts include, among others, the installation of reclosers and the activation of distribution automation schemes to help minimize the impact of outage events on our electric distribution system; the technology allows for the quick identification of outage events and locations and enables automated problem-solving.
• Standards Assessment: Delmarva Power is engaged in a review of our engineering standards to ensure that equipment selected for projects now and in the future can withstand a changing environment and more extreme weather.
• Flood Mitigation and Storm Preparedness: Delmarva Power launched a flood mitigation program focusing on infrastructure located within both the 100- and 500-year floodplains. The company also launched a Major Storm Response Improvement Project in 2020, which brings together subject matter experts from across the company to review the processes and procedures in place for storm preparedness and response. The project will identify and implement improvements to the company’s Summer and Winter Readiness programs, ranging from operations and logistics, to customer engagement and communications to ensure the Company is prepared for the future.

Greenhouse Gas Impact: Delmarva Power’s actions to enhance the overall resilience of the electric system, in addition to other actions included in this Climate Change Commitment, will help the Company to maintain safe, reliable service for all customers while fighting climate change.

Background:Battery storage provides a range of potential benefits towards meeting state policy goals, resilience goals, and customer benefits. These include goals associated with electric vehicle (EV) charging, greenhouse gas (GHG) reductions, and economic development. For example, battery storage can defer the need for upgrades to the underlying distribution system, provide redundancy and charging options for electric transit buses, and enhance overall system reliability and renewable energy integration. In November 2020, the Maryland Public Service Commission approved two Delmarva Power-proposed battery storage pilot projects, one in Ocean City and one in Elk Neck.

Action: Delmarva Power has two battery storage projects in the planning stages in Maryland. One storage project consists of a 1 MW/3 MWH battery storage system located in Ocean City, MD and is testing the utility owner/utility operated model for battery storage to provide both resilience and reliability benefits. The battery will also support peak energy use savings and prevent grid emergencies.

The second project is located in Elk Neck, MD in a residential community located on an isolated peninsula in the Chesapeake Bay. This project is a “virtual power plant” that will provide resilience and reliability to 110 residential customers on a four-mile electric feeder. The virtual power plant will also help with peak energy use savings and prevent grid emergencies.

Greenhouse Gas Impact: The battery pilot is designed to inform Maryland policymakers and utilities about the optimal method of incorporating batteries into the Maryland electric distribution system. Batteries that are directly connected to photovoltaic (PV) arrays or that support additional renewable energy sources will reduce GHG emissions.

Background: Access to energy usage data provides our customers with the information they need to track their energy use from day to day, including identifying energy waste and potential inefficiencies. Delmarva Power is committed to empowering our customers with tools and tips that allow them to better manage their usage, save money, and reduce emissions through a web-based platform, such as MyAccount.

Action: Delmarva Power plans to expand data availability to all customers to help them better manage their energy use. Delmarva Power is also exploring online tools that would enable customers to share their energy usage with third-party providers.

Greenhouse Gas Impact: By providing detailed data and energy efficiency resources, customers can make smarter energy choices that will reduce energy use and their own emissions footprint.

Background: Delmarva Power encourages and ensures the industry’s future workforce by focusing on educational opportunities at pivotal moments in a person’s lifetime starting from middle school to adulthood. Delmarva and the Boy Scouts of America (BSA) Del-Mar-Va Council’s longstanding partnership has helped to prepare young men and women for opportunities in the energy industry through a series of programs equipping them with both the hard and soft skills required for science, technology, engineering and math (STEM)-based careers.

Action: The BSA Del-Mar-Va Council offers hard skill courses in everything from robotics to environmental sustainability to aviation, and will instill leadership skills like being trustworthy, kind and brave to over 2,600 youth learning about STEM through the Merit Badge program, and an additional 300+ high school students learning about STEM through the lens of healthcare and career-readiness, through our Exploring Program.

Greenhouse Gas Impact: Our programs will educate the future workforce on climate change, energy, and STEM, while enabling participants and their networks to take action to reduce their global footprint and fight climate change.

Background: Delmarva Power has initiated a review of real estate that it owns within its service territory and is evaluating potential uses of the land that would provide an environmental benefit beyond the land’s current use.

Action: Potential actions include increased use of vegetation management techniques (including reduced mowing), installation of nest platforms and bird boxes for birds where appropriate, and planting of pollinator-friendly plants. Delmarva Power, under its parent company Pepco Holdings, has signed onto the US Fish & Wildlife Service’s Candidate Conservation Agreement for the Monarch Butterfly in 2022, which, through conservation measures on our transmission rights of way, will provide additional habitat for the butterfly.

Greenhouse Gas Impact: Greenhouse gas impacts will be determined as projects are implemented.

Background: In 2018, Delmarva Power began offering interest-free on-bill financing for energy efficiency projects incentivized through the EmPOWER Maryland Small Business Program. The financing mechanism is known as the Small Business Energy Advance or SBEA. Customers may apply for an SBEA in any amount up to the total project cost after allowable incentives at the time of project application, with the choice of on-bill repayment in 6, 12, or 24 months. In December 2020, the Maryland Public Service Commission approved Utility plans to offer EmPOWER Maryland energy efficiency programs from 2021-2023, including the Small Business Program and SBEA offering.

Action: The SBEA will continue to be offered to Delmarva Power Small Business customers in 2021-2023 to help address financial barriers to participation and encourage customers to reduce their overall energy consumption through energy efficient equipment upgrades, leading to both emissions reductions and cost savings for the customer.

Greenhouse Gas Impact: From 2018-2020 customer projects that took advantage of an SBEA accounted for more than 4,500 MWh in energy savings; equivalent to a reducing over 3,000 metric tons of CO₂ emissions.

Background: Energy efficient light emitting diode (LED) streetlight technology is now commonplace for our customers. At Mayor Michael Purzycki’s request, Delmarva Power is partnering with the City of Wilmington to convert all Delmarva Power-owned streetlights in the City to LEDs with smart nodes. The LED lights are brighter and more energy efficient than traditional lighting, and the city can utilize the smart nodes to help reduce crime, speed emergency response, gather traffic information, and collect data and video.

Action: Following a very successful pilot program, Delmarva Power will convert all remaining company-owned streetlights, approximately 5,950, by Q4 2022 in the City of Wilmington to LEDs with smart nodes.

Greenhouse Gas Impact: Replacing all streetlights in the City of Wilmington with high efficiency LED streetlights would save approximately 4.7M kWh of electricity per year and will reduce CO₂ emissions by approximately 3.7M pounds.

Background: A Connected Community is one in which local energy systems empower residents, support climate needs, and help provide equitable and accessible technology. Delmarva Power has worked with the City of Wilmington and local community stakeholders to develop the City of Wilmington Connected Community Roadmap.

Action: Delmarva Power is now evaluating the Connected Community initiatives identified in the City of Wilmington Roadmap to determine implementation and pilot program priorities.

Greenhouse Gas Impact: Future pilot programs that are identified through this roadmap, and that integrate technologies with existing assets and community-based partnerships, will be designed to solve relevant, prioritized issues for customers and improve the electric system’s reliability and resilience.

Background: Replacing obsolete, leak prone cast iron piping with modern pipeline materials reduces methane emissions from natural gas pipelines. Low carbon fuel sources, like Renewable Natural Gas (RNG), allow for capture of the methane from the source (i.e., landfills, agriculture, etc.) for injection and use by downstream users.

Action: Delmarva Power is retiring 8.5 miles per year of obsolete main and service lines in New Castle County, Del., with a focus on cast iron pipe in the City of Wilmington and the historic area of New Castle.

Since 2011, Delmarva Power has invested over $150 million in its cast iron pipe renewal program to modernize the natural gas system. The company has participated in the Environmental Protection Agency (EPA) Methane Challenge Program, which involves voluntary pipe replacement to reduce methane emissions. Additionally, Delmarva Power is evaluating Renewable Natural Gas sources for injection into its system.

Greenhouse Gas Impact: When complete in 2027, Delmarva Power’s cast iron renewal program will have reduced annual emissions by over 14,000 metric tons (CO₂e).

Background: As part of the Exelon and Pepco Holdings merger, Delmarva Power committed to creating a Workforce Development Program to establish a pipeline of future candidates to build a smarter, stronger, and cleaner energy system. DPL has partnered with the WorWic Community College, Delaware Technical & Community College, Jobs for Delaware Graduates, and state and local government agencies to create its Workforce Development Program. Through these partnerships, DPL Workforce Development has targeted under-resourced communities, offering a dynamic training program preparing for both traditional energy careers and energy efficiency career opportunities.

Action: Delmarva Power has committed to expanding its energy efficiency curriculum by including training on smart meter installation, greenhouse gas education, the impacts of solar and wind energy, and its integration of hybrid vehicles into its fleet. The DPL Workforce Development Program hosts subject matter experts in the energy efficiency field to reinforce the importance of energy efficiency to the workforce of the future. DPL has expanded its community outreach to hosting STEM, STEAM, and Clean Energy career days at local high schools throughout the service territory.

Greenhouse Gas Impact: Our workforce development programs educate community members on climate change impacts and how our industry is evolving to meet the challenge. They also enable participants and their networks to be part of an exciting occupation and to take action to reduce their own global footprint.