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ATTACHMENT #1 Dover Green Energy Fund Incentive/Grant Proposed Changes Utility Committee Meeting of 02/14/2011 Photovoltaic Systems Not to Exceed Residential & __% of total Non-Residential Non-Profit Maximum Grant installed costs Cost ($/Watt) Cost ($/Watt) Cost ($/Watt) Cost ($/Watt) Cost ($/Watt) Cost ($/Watt) 0+ to 5kW 5+kW to 10kW 10+kW to 50kW 0+ to 5kW 5+kW to 10kW 10+kW to 50kW Residential Non-Residential Non-Profit Dover (Proposed) N/A $ 1.25 $ 0.75 $ 0.35 $ 2.55 $ 1.50 $ 0.70 $7,500 $15,000 $15,000 Dover (Current) 25% N/A N/A N/A N/A N/A N/A $7,500 $15,000 $15,000 Solar Water Heater Only Not to Exceed Residential Non-Residential Non-Profit Maximum Grant __% of total ($/OG300 - ($/OG300 - or PE ($/OG300 - or PE installed costs kWhr Saved) Cal. kWhr Saved) Cal. kWhr Saved) Residential Non-Residential Non-Profit Dover (Proposed) N/A $ 1.00 $ 1.00 $ 1.00 $2,500 $7,500 $7,500 Dover (Current) 50% N/A N/A N/A $3,000 $10,000 $10,000 Solar Water Heating Integrated into a Radiant Heating Application Not to Exceed Residential Non-Residential Non-Profit Maximum Grant __% of total ($/OG300 - ($/OG300 - ($/OG300 - installed costs kWhr Saved) kWhr Saved) kWhr Saved) Residential Non-Residential Non-Profit Dover (Proposed) N/A $ 1.00 $ 1.00 $ 1.00 $2,500 $7,500 $7,500 Dover (Current) 50% N/A N/A N/A $5,000 $10,000 $10,000 Small Wind Turbines Residential & Not to Exceed Non-Residential Non-Profit Maximum Grant __% of total Cost ($/Watt) Cost ($/Watt) Cost ($/Watt) Cost ($/Watt) Cost ($/Watt) Cost ($/Watt) installed costs 0+ to 5kW 5+kW to 10kW 10+kW to 50kW 0+ to 5kW 5+kW to 10kW 10+kW to 50kW Residential Non-Residential Non-Profit Dover (Proposed) N/A $ 1.25 $ 0.75 $ 0.35 $ 1.25 $ 0.75 $ 0.35 $2,500 $2,500 $2,500 Dover (Current) 33.3% N/A N/A N/A N/A N/A N/A $7,500 $15,000 $15,000 Fuel Cells Not to Exceed Maximum Grant __% of total installed costs Residential Non-Residential Non-Profit (35%) Dover (Proposed) 20% $7,500 $10,000 $10,000 Dover (Current) 50% $15,000 $30,000 $30,000 Geothermal Heat Pumps System - Dover (Proposed) - w/ Energy Efficiency Ratio (EER) ≥ 18 and Coefficient of Performance (COP) of ≥ 3.6 Dover (Current) - w/ Energy Efficiency Ratio (EER) of 15.0 and Coefficient of Performance (COP) of 3.4 or greater Residential & Non-Residential Non-Profit Not to Exceed First Over First Over Maximum Grant __% of total 2 Tons 2 Tons 2 Tons 2 Tons installed costs ($/Ton) ($/Ton) ($/Ton) ($/Ton) Residential Non-Residential Non-Profit Dover (Proposed) N/A $ 800 $ 700 $ 800 $ 700 $3,000 $10,000 $10,000 Dover (Current) $600 per ton or 50% of total installed costs, whichever is lower $3,000 $20,000 $20,000 Utility Committee Meeting of 02/14/2011 Dover (Proposed) - ELIMINATE THIS PROGRAM Dover (Current): Geothermal Heat Pumps System - w/ Energy Efficiency Ratio (EER) of 14.0 and Coefficient of Performance (COP) of 3.0 or greater Not to Exceed Not to Exceed Not to Exceed ATTACHMENT #1 __% of total For for installed costs Residential Non-Residential $500 per ton or 50% of total installed costs, Dover (Current) $2,500 $20,000 whichever is lower Red text indicates the proposed changes to Dover's program. Draft only

ATTACHMENT #2 Utility Committee Meeting of 02/14/2011 RETAIL CUSTOMER DEMAND RESPONSE AVAILABILITY The Dover Electric Utility (“Dover”) or its authorized designee is the sole entity permitted to bid demand response directly into the PJM Interconnection, L.L.C. (“PJM”) (“DR Program”) on behalf of retail customers served by Dover. No Customer may participate in a DR program of any other entity unless such program is consistent with the terms and conditions in this tariff and approved in advance by Dover. Dover or its authorized designee may allow a Customer to bid DR into PJM’s ancillary services market for energy imbalance, spinning reserves, supplemental reserves, reactive power and voltage control, or regulation and frequency response ancillary services, subject to the same terms and conditions. DR programs may reduce electric service costs for the Customer, provide enhanced usage data, reduce emissions from electric generation, and provide demand flexibility. CONTENTS OF APPLICATION Customer shall submit to Dover a written request to participate that includes the following: 1) Type of DR program; and 2) Metering requirements for participation. Dover’s approval of the application shall be granted within fourteen (14) days. EFFECT OF APPLICATION AND PARTICIPATION IN DR PROGRAM Dover’s receipt and review of any documentation submitted by a Customer shall not constitute approval of such DR Provider or a guarantee of performance or payment by a DR Provider, nor shall Dover be liable for ANY damages sustained by the Customer. RIGHT TO TERMINATE PARTICIPATION IN DR PROGRAM Dover reserves the right to disapprove a request to participate in a DR program or to terminate participation by Customer when, in Dover’s sole discretion, Dover determines that participation by Customer will be detrimental to another customer or to the City of Dover. SPECIAL METERING REQUIREMENTS If Customer requires special metering equipment or devices to participate in the DR program, Customer shall provide the specifications for such equipment or devices in writing to the Dover Electric Department at the time of application or promptly thereafter. Within fourteen (14) days thereafter, Dover will provide the Customer with an estimate of the cost of the special metering equipment or devices and an estimate of the cost of providing special meter reading data. The cost of any special metering equipment or device shall be the responsibility of the Customer and shall be paid prior to the scheduled installation date. All costs for data or special readings shall be billed to Customer monthly. Effective Date: __________ ___, 2011

ATTACHMENT #3 Utility Committee Meeting of 02/14/2011 City of Dover MAYOR AND COUNCIL February 28, 2011 Sent to State and Local Legislators Dear FIELD(Salutation): The City of Dover offers its full support of House Bill No. 27 - An Act to Amend Title 26 of the Delaware Code Relating to Renewable Energy Portfolio Standards (RPS). This amendment will allow the City of Dover to add energy conservation, energy efficiency, and demand-side energy management programs to its strategies for complying with the standards set forth in the law. The City of Dover was an advocate for the RPS legislation, as it was enacted last year, and is a proven leader in the area of renewable energy, energy conservation, and carbon emission reductions. The City initiated, and is now a partner in, the Dover Sun Park Project, a 10MW solar photovoltaic facility that will be completed this summer and will be the largest solar facility in the northeast. Under the current law, the City of Dover will be able to use the Dover Sun Park in its plan to meet the RPS standards. The City of Dover has also converted street lights on Division Street to energy efficient LED lights; this is the first street in the State of Delaware to fully deploy this technology. Under the current law, the City of Dover would not receive credit for deploying energy efficient technology; however, under the proposed amendment, Dover would receive credit. The amendment will make it clear that energy conservation and efficiency programs are as important to reducing our dependence on fossil fuels as are renewable energy sources. In addition, this amendment will make Renewable Energy Portfolio Standards more reasonably attainable and will reduce the cost of complying with the standards, thereby reducing energy costs to our customers. As always, we wish to extend our appreciation for the continued support of our legislators. Sincerely, Kenneth L. Hogan Carleton E. Carey, Sr. Council President Mayor KLH/CEC/td S:\ATTACHMENTS & EXHIBITS\Committee Attachments\2011\02-14-2011 UTILITY\Letter of Support - HB27 - Renewable Energy Portfolio Standards.wpd cc: City Council Patrick E. McCullar, DEMEC P.O. Box 475 ˜ Dover, Delaware ˜19903 Community Excellence Through Quality Service