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: With more than a decade of program implementation experience, the EmPOWER Maryland program defines success as achieving distinct and measurable energy efficiency savings. Delmarva MD has designed its programs around three key themes:

• Cost Effective Programs and Customer Benefits
• Inclusion, Affordability, and Equity
• Innovation and Personalization

The Company’s goal is to deliver approximately 300,000 MWh of savings during the 2021-2023 program cycle, which is estimated to save customers $37 million per year and avoid approximately 115,000 tons of CO₂ emissions.

Action: Delmarva Power will offer more than 20 programs through EmPOWER MD targeted at residential, business and income-eligible customers. Program offerings include:

Residential

• Efficient Products Program, including residential Lighting, Appliance Rebates, and Appliance Recycling
• Home Optimization and Home Retrofit, including QHEC, HPwES, Residential HVAC, School Program with Take-Home Kits.
• Residential New Construction, including additive measures for high-efficiency electric space and water heating equipment.
• Home Energy Reports to yield verifiable energy savings by encouraging voluntary behavioral modifications

Non-residential

• Small Business Program
• Energy Efficiency for Business
• Commercial Midstream incentivizes commercial customers
• Energy Efficient Communities
• Combined Heat and Power (CHP) to incentivize the long-term investment

Greenhouse Gas Impact: Delmarva Power's energy efficiency programs are forecast to save approximately 300,000 million MWhs of electricity between 2021 and 2023. This translates to a CO₂ reduction of more than 115,000 tons, based on the average PJM power grid energy mix.

Background: Delmarva Power has a large fleet of cars and trucks to support the work we do in providing clean, safe, reliable, and affordable energy to Maryland 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 29 passenger vehicles and small SUVs to all electric or plug-in hybrid by 2025
• Converting 52 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 more than 200,000 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 Bay Regional Office in 2021. The energy saving opportunities identified by the energy audit for the Bay 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 Bay Regional Office is Delmarva Power’s largest area office within the Bay Region. At nearly 146,000 square feet of office space, the building houses over 260 employees and covers more than 36 acres. Delmarva Power will upgrade all lighting systems in the Bay Region Office complex from incandescent to light emitting diode (LED) to improve efficiency and create cost savings.

Action: Delmarva Power is working to install LED lighting at its Bay Regional Office, and at all Delmarva- owned facilities, for both indoor and outdoor areas. The company will capture all lighting upgrade opportunities during its facility refresh projects.

Greenhouse Gas Impact: Replacing a conventional incandescent light with a high efficiency LED is estimated to reduce energy use by about 30%.

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

Action: In partnership with the Arbor Day Foundation's Energy-Saving Trees program, Delmarva Power has provided more than 200 free trees to customers in its Maryland service areas 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 3,000 trees which have sequestered an estimated 99,000 pounds of carbon. Across all of PHIs 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 20 charging stations at its Bay Regional Office in 2021. This will bring the total number of charging stations at its Delmarva MD facilities to 34. The company will continue to add chargers, as needed, to support fleet conversion and further support workplace charging needs.

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

Background: Maryland has leading renewable energy mandates, including targets for local solar, with a goal of achieving 50% renewable energy goals by 2030 with 14.5% of the Renewable Portfolio Standard to come from solar sources. To integrate increasing amounts of renewable energy and local solar, Delmarva Power in MD is investing in the infrastructure, communications, and system upgrades necessary to connect and optimize the clean energy resources.

Action: In January of 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 overall interconnection process and engage with Maryland 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 an 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 in 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 Maryland operations.

Background: The Maryland Public Service Commission adopted regulations for a community solar pilot program in Maryland. The pilot program encourages private investment in Maryland’s solar industry to enable the state to meet its Renewable Portfolio Standard goals of 50% by 2030, of which 14.5% shall be from local solar sources.

Action: Since the start of the Community Solar Pilot Program in 2016, Delmarva Power has implemented processes and systems to enable solar developers to interconnect community solar projects to the grid; these community solar projects provide customers with cost savings in addition to avoiding greenhouse gas emissions. To date, Delmarva Power has enabled 5 MW of community solar in Maryland, with another 34 MW in the pipeline.

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 launched an online “Energy Marketplace,” which will provide customers with the opportunity to identify, compare and purchase energy efficient equipment, lighting, appliances and other devices in one convenient location.

Greenhouse Gas Impact: Through the Energy Marketplace, Delmarva Power is seeking to encourage 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 $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 Maryland service area.

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 also provides one to two 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. 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 the Maryland Eastern Shore region, 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 establish various GHG reduction solutions and opportunities in 2022 and the outgoing years.

Background: The state of Maryland has set a goal that 50% of electric power sold in MD shall be renewable by 2030, with 14.5% that is sourced from solar. These targets can be met through the purchase of renewable energy credits (RECs) and solar renewable energy credits, as defined by the state statute.

Action: Delmarva will transition its building electricity use to 50% carbon-free electricity by the end of 2025, 5 years sooner than the state mandate. This can be achieved using a combination of strategies, including the purchase of additional MD Tier 1 and MD Solar RECs equal to 50% 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 more than 800 metric tons of CO₂ emissions by 2030.

Background: 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 the Loop Green Bank Substation and the Maryland Corrective Action Plan.
• 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. The pace and scale at which grid modernization and associated technologies can be deployed are determined by the regulatory approvals for these investments and funding requests.
• 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 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 instills leadership skills to more than 2,600 youth learning about STEM through the Merit Badge program, and an additional 300+ high school students learning about STEM through the 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.

Background: Delmarva Power has initiated a review of real estate that it owns within our 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 for birds where appropriate, planting of pollinator friendly plants, and signing onto the US Fish and Wildlife Services Candidate Conservation Agreement for the Monarch Butterfly which would provide habitat for the butterfly on some of our rights of way.

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.